Triumph Group Reports Fourth Quarter and Full Fiscal Year 2014 Results

  Triumph Group Reports Fourth Quarter and Full Fiscal Year 2014 Results

  *Net sales for fourth quarter fiscal year 2014 were $936.4 million
  *Net income for fourth quarter fiscal year 2014 was $42.3 million, or $0.80
    per diluted share, which included non-recurring costs (see Table A below)
    totaling approximately $48.1 million pre-tax ($0.59 per diluted share)
    related to the Jefferson Street facility closure and start-up of the Red
    Oak facility, early retirement incentives offered to certain Triumph
    Aerostructures employees and a net curtailment gain related to the Triumph
    Aerostructures pension plans. Excluding these items, earnings per share
    were $1.39 per diluted share
  *Full year revenues and earnings per share were $3.763 billion and $3.91
    per diluted share. Excluding non-recurring costs (see Table B below)
    totaling approximately $72.4 million pre-tax ($0.89 per diluted share),
    earnings per share were $4.80 per diluted share
  *Cash flow from operations for fiscal year 2014 before pension contribution
    of $46.3 million was $181.5 million
  *Completed closure of the Jefferson Street facility ahead of schedule
  *Increased share repurchase authority to approximately 5.5 million shares
    and executed 300,000 share buyback for approximately $19.1 million

Business Wire

BERWYN, Pa. -- May 7, 2014

Triumph Group, Inc. (NYSE: TGI) today announced its results for the fourth
quarter and full fiscal year ended March 31, 2014.

Jeffry D. Frisby, Triumph’s President and Chief Executive Officer, said,
“Triumph ended the fiscal year with earnings on an adjusted basis beyond what
we expected. The Aerospace Systems Group and the Aftermarket Services Group
were able to deliver strong margins, expanding on a sequential quarterly
basis, while the Aerostructures Group, excluding the Jefferson Street move
related costs and the 747-8 program, delivered a solid quarter. We have made
good progress with the execution of the 747-8 program, which is now stabilized
and remains on schedule. The closure of our Jefferson Street facility and move
to our new, state of the art facility in Red Oak was successfully completed in
the quarter, significantly improving our competitive position for large
composite structure and integrated assemblies with opportunity for growth. We
continued the integration of our recent acquisitions and continued to
successfully manage our pension obligations. In addition, we increased our
share repurchase authority to approximately 5.5 million shares and executed a
300,000 share buyback during the quarter to provide immediate returns to our
shareholders. Moreover, we believe that Triumph is well positioned to take
advantage of significant growth opportunities which will provide increased
value to our shareholders.”

Fourth Quarter Fiscal 2014 Highlights

For the fourth quarter ended March 31, 2014, net sales were $936.4 million, a
five percent decrease from last year’s fourth quarter net sales of $986.3
million. Organic sales for the quarter decreased 11 percent primarily due to
production rate cuts on the 747-8 program, lower revenues on the 767 program
and a decrease in military sales.

Net income for the fourth quarter of fiscal year 2014 was $42.3 million, or
$0.80 per diluted share, versus $65.6 million, or $1.24 per diluted share, for
the fourth quarter of the prior fiscal year. The quarter’s results included
approximately $48.1 million pre-tax ($31.2 million after tax or $0.59 per
diluted share) of non-recurring costs related to the Jefferson Street facility
closure and start-up of the Red Oak facility, early retirement incentives
offered to certain Triumph Aerostructures employees and a net curtailment gain
related to the Triumph Aerostructures pension plan. Excluding these items,
earnings per share for the fourth quarter of fiscal 2014 were $1.39 per
diluted share. The prior fiscal year’s quarter included $36.0 million pre-tax
($23.2 million after tax or $0.44 per diluted share) of non-recurring costs.
Excluding these items, earnings per share for the prior fiscal year’s fourth
quarter were $1.68 per diluted share. The number of shares used in computing
diluted earnings per share for the quarter was 52.8 million shares.

The following table quantifies each of the non-recurring costs incurred in the
fourth quarter of fiscal year 2014 as well as its impact on earnings per
share.

                                                       
TABLE A
                   Fourth Quarter Ended
                   March 31, 2014
                   Pre-tax         After tax      Diluted       Location on
                   (In             (In            EPS           Financial
                   thousands)      thousands)                   Statements
                                                                
Adjusted
Income from
Continuing         $ 111,373       $ 73,467       $ 1.39
Operations-
non-GAAP
                                                                
Non-Recurring
Costs:
Curtailments       $ (395    )     $ (256   )     $ (0.00 )     Corporate
Early
Retirement         $ 916           $ 594          $ 0.01        Corporate
Incentives
Jefferson
Street Move:
Relocation
Costs              $ 24,125        $ 15,633       $ 0.30        Aerostructures
(Including                                                      (Primarily)
Interest)
Disruption         $ 17,801        $ 11,535       $ 0.22        Aerostructures
                                                                (EAC) **
Accelerated        $ 5,643        $ 3,657       $ 0.07       Aerostructures
Depreciation                                                    (EAC) **
Income from
Continuing         $ 63,283       $ 42,304      $ 0.80  *
Operations-
GAAP


* Difference due to rounding

** EAC- estimated costs at completion with respect to contracts within the
scope of Accounting Standards Codification 605-35, "Revenue
Recognition-Construction-Type and Production-Type Contracts"

Full Fiscal Year 2014 Highlights

For the fiscal year ended March 31, 2014, net sales totaled $3.763 billion, a
two percent increase from fiscal year 2013 net sales of $3.703 billion.
Organic sales for the fiscal year decreased six percent.

Net income for fiscal year 2014 was $206.3 million, or $3.91 per diluted
share, versus $297.3 million, or $5.67 per diluted share, for fiscal year
2013. The fiscal year’s results included approximately $72.4 million pre-tax
($46.9 million after tax or $0.89 per diluted share) of non-recurring costs.
Excluding the non-recurring costs, net income for fiscal year 2014 was $253.2
million, or $4.80 per diluted share. The prior fiscal year included
approximately $44.2 million pre-tax ($28.5 million after tax or $0.54 per
diluted share) of non-recurring costs. Excluding the non-recurring costs,
earnings per share for fiscal year 2013 were $6.21 per diluted share. The
number of shares used in computing diluted earnings per share for fiscal year
2014 was 52.8 million shares.

The following table quantifies each of the non-recurring costs incurred in
fiscal year 2014 as well as its impact on earnings per share.

                                                       
TABLE B
                    Fiscal Year Ended
                    March 31, 2014
                    Pre-tax         After tax      Diluted      Location on
                    (In             (In            EPS          Financial
                    thousands)      thousands)                  Statements
                                                                
Adjusted Income
from Continuing     $  384,615      $  253,161     $ 4.80
Operations-
non-GAAP
                                                                
Non-Recurring
Costs:
Settlements and
Curtailments,       $  1,166        $  756         $ 0.01       Corporate
net
Early
Retirement          $  916          $  594         $ 0.01       Corporate
Incentives
Jefferson
Street Move:
Relocation
Costs               $  31,910       $  20,678      $ 0.39       Aerostructures
(Including                                                      (Primarily)
Interest)
Disruption          $  24,714       $  16,015      $ 0.30       Aerostructures
                                                                (EAC) **
Accelerated         $  13,676       $  8,862       $ 0.17      Aerostructures
Depreciation                                                    (EAC) **
Income from
Continuing          $  312,233      $  206,256     $ 3.91 *
Operations-
GAAP


* Difference due to rounding

** EAC- estimated costs at completion with respect to contracts within the
scope of Accounting Standards Codification 605-35, "Revenue
Recognition-Construction-Type and Production-Type Contracts"

During fiscal year 2014, the company generated $181.5 million of cash flow
from operations before Triumph Aerostructures’ pension contributions of $46.3
million; after these contributions, cash flow from operations was $135.1
million.

Segments

Aerostructures

The Aerostructures segment reported net sales for the fourth quarter of fiscal
year 2014 of $632.6 million compared to $720.7 million for the prior fiscal
year period. Organic sales for the quarter declined fourteen percent primarily
due to production rate cuts on the 747-8 program, lower revenues on the 767
program and a decrease in military sales. For the fiscal year 2014, net sales
decreased six percent to $2.612 billion from $2.781 billion for the prior
fiscal year. For the fourth quarter of fiscal year 2014, operating income was
$36.2 million compared to $110.9 million for the prior fiscal year period and
included $47.4 million of pre-tax charges related to the Jefferson Street
facility move and $16.0 million of previously disclosed pre-tax charges
resulting from reductions in the profitability estimates on the 747-8 program.
Operating income for fiscal year 2014 was $255.0 million, compared to $469.9
million for the prior fiscal year. The segment’s operating results for the
quarter included a net unfavorable cumulative catch-up adjustment on long-term
contracts of $27.4 million, of which $20.6 million was related to the
Jefferson Street facility move and $6.8 million was related primarily to the
C-17 program. The segment’s operating margin for the quarter was six percent.
Excluding the Jefferson Street move related costs and the 747-8 program, the
segment’s operating margin for the quarter was approximately 17 percent.

Aerospace Systems

The Aerospace Systems segment reported net sales for the fourth quarter of
fiscal year 2014 of $235.3 million compared to $184.1 million for the prior
fiscal year period, an increase of twenty-eight percent. Organic sales growth
for the quarter was one percent. For the fiscal year 2014, net sales increased
forty-two percent to $871.8 million from $615.8 million for the prior fiscal
year. Organic sales growth for the fiscal year was one percent. Operating
income for the fourth quarter of fiscal year 2014 increased twenty-eight
percent to $42.8 million versus $33.4 million for the prior fiscal year
quarter. Operating margin for the quarter, while unchanged from the prior
fiscal year period, increased sequentially to eighteen percent, a 280 basis
points improvement. Operating income for fiscal year 2014 was $149.7 million,
compared to $103.2 million for the prior fiscal year, an increase of
forty-five percent. Operating margin for the fiscal year was seventeen
percent. The segment’s fourth quarter and fiscal year 2014 operating results
included $0.5 million and $6.8 million, respectively, of legal expenses
associated with the ongoing trade secret litigation.

Aftermarket Services

The Aftermarket Services segment reported net sales for the fourth quarter of
fiscal year 2014 of $70.5 million, compared to $83.9 million for the prior
fiscal year period. The year over year decrease reflected the impact of the
divestitures of the Instrument Companies. Organic sales for the quarter
decreased nine percent primarily due to the timing of completion of certain
contracts and continued military weakness. For the fiscal year 2014, net sales
decreased nine percent to $287.3 million from $314.5 million for the prior
fiscal year. Organic sales for the fiscal year decreased one percent.
Operating income for the fourth quarter of fiscal year 2014 was $11.6 million
compared to $13.0 million for the prior fiscal year quarter. Operating margin
for the quarter increased to sixteen percent, a 100 basis points improvement
over the prior year, driven primarily by a gain on the sale of a rotable asset
and improved operating performance. Operating income for fiscal year 2014 was
$42.3 million, compared to $45.4 million for the prior fiscal year. Operating
margin for the fiscal year was fifteen percent.

Outlook

In commenting on the outlook for fiscal year 2015, Mr. Frisby said, “We are
entering our new fiscal year with continued focus on improving operational
execution and efficiency, reducing our cost structure, investing in key
programs and technologies that will position Triumph for long-term growth and
profitability and opportunistically buying back shares to return capital to
our shareholders. We project sales in the range of $3.7 to $3.8 billion and
earnings per share excluding non-recurring costs detailed below for fiscal
year 2015 of $5.65 to $5.75 per diluted share.”

                                                             
Adjusted Earnings Per Share- non-GAAP                           $ 5.65 - $5.75
                                                                
Non-Recurring Costs:
Jefferson Street/Red Oak Overhang Costs                         $ 0.26
                                                                
Anticipated Refinancing Fees Related to the Senior Notes        $ 0.26
Due 2018
                                                                
Earnings Pre Share - GAAP                                       $ 5.13 - $5.23
                                                                

The overall guidance is based on the following assumptions for fiscal year
2015:

  *interest expense of $68.0 million, excluding refinancing fees
  *tax rate of 35.5%, which assumes the extension of the Research and
    Development tax credit
  *capital expenditures and investments in major new programs of $240.0
    million to $260.0 million, of which approximately $125.0 million relates
    to investments in major new programs
  *pension income of approximately $52.0 million and cash contributions to
    the plan of approximately $110.0 million
  *OPEB expense of approximately $11.0 million and cash expenditures of
    approximately $27.0 million
  *productions rates based on known customer schedules
  *completion of C-17 production three months earlier than previously planned
  *cash available for debt reduction, acquisitions and share repurchases of
    approximately $250.0 million

As previously announced, Triumph Group will hold a conference call tomorrow at
8:30 a.m. (ET) to discuss the fiscal year 2014 fourth quarter and year-end
results. The conference call will be available live and archived on the
company’s website at http://www.triumphgroup.com. A slide presentation will be
included with the audio portion of the webcast. An audio replay will be
available from May 8^th to May 14^th by calling (888) 266-2081 (Domestic) or
(703) 925-2533 (International), passcode #1636202.

Triumph Group, Inc., headquartered in Berwyn, Pennsylvania, designs,
engineers, manufactures, repairs and overhauls a broad portfolio of
aerostructures, aircraft components, accessories, subassemblies and systems.
The company serves a broad, worldwide spectrum of the aviation industry,
including original equipment manufacturers of commercial, regional, business
and military aircraft and aircraft components, as well as commercial and
regional airlines and air cargo carriers.

More information about Triumph can be found on the company’s website at
http://www.triumphgroup.com.

Statements in this release which are not historical facts are forward-looking
statements under the provisions of the Private Securities Litigation Reform
Act of 1995, including statements of expectations of or assumptions about
future aerospace market conditions, aircraft production rates, financial and
operational performance and revenue, earnings and cash flow for fiscal year
2015. All forward-looking statements involve risks and uncertainties which
could affect the company’s actual results and could cause its actual results
to differ materially from those expressed in any forward looking statements
made by, or on behalf of, the company.

Further information regarding the important factors that could cause actual
results to differ from projected results can be found in Triumph’s reports
filed with the SEC, including our Annual Report on Form 10-K for the fiscal
year ended March 31, 2013.


FINANCIAL DATA (UNAUDITED)
                                                          
TRIUMPH GROUP, INC. AND SUBSIDIARIES
(in thousands, except per share data)
                                                                     
                                                                     
                       Three Months Ended          Twelve Months Ended
                       March 31,                   March 31,
                                                                     
CONDENSED
STATEMENTS OF          2014          2013          2014            2013
INCOME
                                                                     
                                                                     
Net sales              $ 936,410     $ 986,268     $ 3,763,254     $ 3,702,702
                                                                     
Operating income         80,908        112,966       400,004         531,213
                                                                     
Interest expense         17,625        17,488        87,771          68,156
and other
Income tax expense      20,979       29,876       105,977        165,710
                                                                     
Net income             $ 42,304      $ 65,602      $ 206,256       $ 297,347
                                                                     
Earnings per share
- basic:
                                                                     
Net income             $ 0.81        $ 1.32        $ 3.99          $ 5.99
                                                                     
Weighted average
common shares           52,199       49,814       51,711         49,663
outstanding -
basic
                                                                     
Earnings per share
- diluted:
                                                                     
Net income             $ 0.80        $ 1.24        $ 3.91          $ 5.67
                                                                     
Weighted average
common shares           52,752       52,708       52,787         52,446
outstanding -
diluted
                                                                     
Dividends declared
and paid per           $ 0.04        $ 0.04        $ 0.16          $ 0.16
common share
                                                                     


FINANCIAL DATA (UNAUDITED)
                                                            
TRIUMPH GROUP, INC. AND SUBSIDIARIES
(dollars in thousands, except per share data)
                                                                 
BALANCE SHEET                                  Unaudited         Audited
                                               March 31,         March 31,
                                               2014              2013
Assets
Cash and cash equivalents                      $ 28,998          $ 32,037
Accounts receivable, net                         517,665           448,865
Inventory, net of unliquidated progress          1,109,887         985,535
payments of $165,019 and $124,128
Rotable assets                                   41,666            34,853
Deferred income taxes                            57,308            99,546
Prepaid and other current assets                 24,897            24,481
Assets held for sale                            -               14,747    
Current assets                                   1,780,421         1,640,064
                                                                 
Property and equipment, net                      930,973           815,084
Goodwill                                         1,793,487         1,721,720
Intangible assets, net                           978,182           995,519
Other, net                                      69,954          66,792    
                                                                 
Total assets                                   $ 5,553,017      $ 5,239,179 
                                                                 
Liabilities & Stockholders' Equity
                                                                 
Current portion of long-term debt              $ 49,575          $ 133,930
Accounts payable                                 317,334           327,008
Accrued expenses                                 273,024           283,687
Liabilities related to assets held for          -               2,621     
sale
Current liabilities                              639,933           747,246
                                                                 
Long-term debt, less current portion             1,500,808         1,195,933
Accrued pension and post-retirement              508,516           671,175
benefits, noncurrent
Deferred income taxes, noncurrent                385,085           310,794
Other noncurrent liabilities                     234,764           268,873
                                                                 
Stockholders' Equity:
Common stock, $.001 par value, 100,000,000
shares authorized, 52,459,020 and                52                50
50,123,035 shares issued
Capital in excess of par value                   866,281           848,372
Treasury stock, at cost, 300,000 and 0           (19,134   )       -
shares
Accumulated other comprehensive loss             (18,908   )       (60,972   )
Retained earnings                               1,455,620       1,257,708 
Total stockholders' equity                      2,283,911       2,045,158 
                                                                 
Total liabilities and stockholders' equity     $ 5,553,017      $ 5,239,179 
                                                                 


FINANCIAL DATA (UNAUDITED)
                                                            
TRIUMPH GROUP, INC. AND SUBSIDIARIES
(dollars in thousands)
                                                                     
                                                                     
                                                                     
SEGMENT DATA       Three Months Ended              Twelve Months Ended
                   March 31,                       March 31,
                                                                     
                   2014            2013            2014              2013
                                                                     
Net sales:
Aerostructures     $ 632,601       $ 720,722       $ 2,612,439       $ 2,781,344
Aerospace            235,339         184,061         871,750           615,771
Systems
Aftermarket          70,463          83,881          287,343           314,506
Services
Elimination of
inter-segment       (1,993  )      (2,396  )      (8,278    )      (8,919    )
sales
                   $ 936,410      $ 986,268      $ 3,763,254      $ 3,702,702 
                                                                     
Operating
income (loss):
Aerostructures     $ 36,208        $ 110,901       $ 254,993         $ 469,873
Aerospace            42,834          33,440          149,721           103,179
Systems
Aftermarket          11,586          12,950          42,264            45,380
Services
Corporate           (9,720  )      (44,325 )      (46,974   )      (87,219   )
                   $ 80,908       $ 112,966      $ 400,004        $ 531,213   
                                                                     
Depreciation
and
amortization:
Aerostructures     $ 31,300        $ 23,751        $ 114,302         $ 95,884
Aerospace            9,542           6,199           37,453            19,869
Systems
Aftermarket          1,926           2,221           7,529             9,118
Services
Corporate           1,229         1,190         4,993           4,635     
                   $ 43,997       $ 33,361       $ 164,277        $ 129,506   
                                                                     
Amortization
of acquired
contract
liabilities:
Aerostructures     $ (5,071  )     $ (5,683  )     $ (25,207   )     $ (25,457   )
Aerospace           (3,185  )      (187    )      (17,422   )      (187      )
Systems
                   $ (8,256  )     $ (5,870  )     $ (42,629   )     $ (25,644   )
                                                                     
Capital
expenditures:
Aerostructures     $ 34,993        $ 24,300        $ 167,198         $ 90,466
Aerospace            5,946           8,328           21,935            19,388
Systems
Aftermarket          3,145           4,009           13,940            14,820
Services
Corporate           531           596           3,341           2,216     
                   $ 44,615       $ 37,233       $ 206,414        $ 126,890   
                                                                                 

                          FINANCIAL DATA (UNAUDITED)

                     TRIUMPH GROUP, INC. AND SUBSIDIARIES
                            (dollars in thousands)

Non-GAAP Financial Measure Disclosures

We prepare and publicly release quarterly unaudited financial statements
prepared in accordance with GAAP. In accordance with Securities and Exchange
Commission (the “SEC”) guidance on Compliance and Disclosure Interpretations,
we also disclose and discuss certain non-GAAP financial measures in our public
releases. Currently, the non-GAAP financial measure that we disclose is
Adjusted EBITDA, which is our net income before interest, income taxes,
amortization of acquired contract liabilities, curtailments, settlements and
early retirement incentives, depreciation and amortization. We disclose
Adjusted EBITDA on a consolidated and an operating segment basis in our
earnings releases, investor conference calls and filings with the SEC. The
non-GAAP financial measures that we use may not be comparable to similarly
titled measures reported by other companies. Also, in the future, we may
disclose different non-GAAP financial measures in order to help our investors
more meaningfully evaluate and compare our future results of operations to our
previously reported results of operations.

We view Adjusted EBITDA as an operating performance measure and as such we
believe that the GAAP financial measure most directly comparable to it is net
income. In calculating Adjusted EBITDA, we exclude from net income the
financial items that we believe should be separately identified to provide
additional analysis of the financial components of the day-to-day operation of
our business. We have outlined below the type and scope of these exclusions
and the material limitations on the use of these non-GAAP financial measures
as a result of these exclusions. Adjusted EBITDA is not a measurement of
financial performance under GAAP and should not be considered as a measure of
liquidity, as an alternative to net income (loss), income from continuing
operations, or as an indicator of any other measure of performance derived in
accordance with GAAP. Investors and potential investors in our securities
should not rely on Adjusted EBITDA as a substitute for any GAAP financial
measure, including net income (loss) or income from continuing operations. In
addition, we urge investors and potential investors in our securities to
carefully review the reconciliation of Adjusted EBITDA to net income set forth
below, in our earnings releases and in other filings with the SEC and to
carefully review the GAAP financial information included as part of our
Quarterly Reports on Form 10-Q and our Annual Reports on Form 10-K that are
filed with the SEC, as well as our quarterly earnings releases, and compare
the GAAP financial information with our Adjusted EBITDA.

Adjusted EBITDA is used by management to internally measure our operating and
management performance and by investors as a supplemental financial measure to
evaluate the performance of our business that, when viewed with our GAAP
results and the accompanying reconciliation, we believe provides additional
information that is useful to gain an understanding of the factors and trends
affecting our business. We have spent more than 15 years expanding our product
and service capabilities partially through acquisitions of complementary
businesses. Due to the expansion of our operations, which included
acquisitions, our net income has included significant charges for depreciation
and amortization. Adjusted EBITDA excludes these charges and provides
meaningful information about the operating performance of our business, apart
from charges for depreciation and amortization. We believe the disclosure of
Adjusted EBITDA helps investors meaningfully evaluate and compare our
performance from quarter to quarter and from year to year. We also believe
Adjusted EBITDA is a measure of our ongoing operating performance because the
isolation of non-cash income and expenses, such as amortization of acquired
contract liabilities, depreciation and amortization, and non-operating items,
such as interest and income taxes, provides additional information about our
cost structure, and, over time, helps track our operating progress. In
addition, investors, securities analysts and others have regularly relied on
Adjusted EBITDA to provide a financial measure by which to compare our
operating performance against that of other companies in our industry.

Set forth below are descriptions of the financial items that have been
excluded from our net income to calculate Adjusted EBITDA and the material
limitations associated with using this non-GAAP financial measure as compared
to net income:

  *Curtailments, settlements and early retirement incentives may be useful to
    investors to consider because it represents the current period impact of
    the change in defined benefit obligation due to the reduction in future
    service costs. We do not believe these charges (gains) necessarily reflect
    the current and ongoing cash earnings related to our operations.
  *Amortization of acquired contract liabilities may be useful for investors
    to consider because it represents the non-cash earnings on the fair value
    of below market contracts acquired through acquisitions. We do not believe
    these earnings necessarily reflect the current and ongoing cash earnings
    related to our operations.
  *Amortization expenses may be useful for investors to consider because it
    represents the estimated attrition of our acquired customer base and the
    diminishing value of product rights and licenses. We do not believe these
    charges necessarily reflect the current and ongoing cash charges related
    to our operating cost structure.
  *Depreciation may be useful for investors to consider because they
    generally represent the wear and tear on our property and equipment used
    in our operations. We do not believe these charges necessarily reflect the
    current and ongoing cash charges related to our operating cost structure.
  *The amount of interest expense and other we incur may be useful for
    investors to consider and may result in current cash inflows or outflows.
    However, we do not consider the amount of interest expense and other to be
    a representative component of the day-to-day operating performance of our
    business.

                          FINANCIAL DATA (UNAUDITED)

                     TRIUMPH GROUP, INC. AND SUBSIDIARIES
                            (dollars in thousands)

Non-GAAP Financial Measure Disclosures (continued)

  *Income tax expense may be useful for investors to consider because it
    generally represents the taxes which may be payable for the period and the
    change in deferred income taxes during the period and may reduce the
    amount of funds otherwise available for use in our business. However, we
    do not consider the amount of income tax expense to be a representative
    component of the day-to-day operating performance of our business.

Management compensates for the above-described limitations of using non-GAAP
measures by using a non-GAAP measure only to supplement our GAAP results and
to provide additional information that is useful to gain an understanding of
the factors and trends affecting our business.

The following table shows our Adjusted EBITDA reconciled to our net income for
the indicated periods (in thousands):

                                           
                  Three Months Ended              Twelve Months Ended
                  March 31,                       March 31,
                  2014            2013            2014            2013
Adjusted
Earnings
before
Interest,
Taxes,
Depreciation
and
Amortization
(EBITDA):
Net Income        $ 42,304        $ 65,602        $ 206,256         $ 297,347
                                                                    
Add-back:
Income Tax          20,979          29,876          105,977           165,710
Expense
Interest
Expense and         17,625          17,488          87,771            68,156
Other
Curtailments,
Settlements
and Early           521             29,344          2,082             34,481
Retirement
Incentives
Amortization
of Acquired         (8,256  )       (5,870  )       (42,629   )       (25,644   )
Contract
Liabilities
Depreciation
and                43,997        33,361        164,277         129,506   
Amortization
                                                                    
Adjusted
Earnings
before
Interest,
Taxes,            $ 117,170      $ 169,801      $ 523,734        $ 669,556   
Depreciation
and
Amortization
("Adjusted
EBITDA")
                                                                    
Net Sales         $ 936,410      $ 986,268      $ 3,763,254      $ 3,702,702 
                                                                    
Adjusted           12.6    %      17.3    %      14.1      %      18.2      %
EBITDA Margin
                                                                                

                                                                            
FINANCIAL DATA (UNAUDITED)
                                                                                       
TRIUMPH GROUP, INC. AND SUBSIDIARIES
(dollars in thousands)
                                                                                       
Non-GAAP Financial Measure Disclosures (continued)
                                                                                       
Adjusted
Earnings
before
Interest,
Taxes,            Three Months Ended March 31, 2014
Depreciation
and
Amortization
(EBITDA):
                                    Segment Data
                                                       Aerospace       Aftermarket     Corporate /
                  Total             Aerostructures
                                                       Systems         Services        Eliminations
                                                                                       
Income from
Continuing        $ 42,304
Operations
                                                                                       
Add-back:
Income Tax          20,979
Expense
Interest
Expense and        17,625    
Other
                                                                                       
Operating         $ 80,908          $  36,208          $ 42,834        $ 11,586        $  (9,720  )
Income
                                                                                       
Pension/OPEB        521                -                 -               -                521
Curtailment
Amortization
of Acquired         (8,256    )        (5,071    )       (3,185  )       -                -
Contract
Liabilities
Depreciation
and                43,997           31,300          9,542         1,926          1,229   
Amortization
                                                                                       
Adjusted
Earnings
(Losses)
before
Interest,
Taxes,            $ 117,170        $  62,437         $ 49,191       $ 13,512       $  (7,970  )
Depreciation
and
Amortization
("Adjusted
EBITDA")
                                                                                       
Net Sales         $ 936,410        $  632,601        $ 235,339      $ 70,463       $  (1,993  )
                                                                                       
Adjusted           12.6      %       9.9       %      21.2    %      19.2    %       n/a     
EBITDA Margin
                                                                                       
                                                                                       
Adjusted
Earnings
before
Interest,
Taxes,            Twelve Months Ended March 31, 2014
Depreciation
and
Amortization
(EBITDA):
                                    Segment Data
                                                       Aerospace       Aftermarket     Corporate /
                  Total             Aerostructures
                                                       Systems         Services        Eliminations
                                                                                       
Net Income        $ 206,256
                                                                                       
Add-back:
Income Tax          105,977
Expense
Interest
Expense and        87,771    
Other
                                                                                       
Operating         $ 400,004         $  254,993         $ 149,721       $ 42,264        $  (46,974 )
Income (Loss)
                                                                                       
Net Pension
(Curtailment)       2,082              -                 -               -                2,082
Settlement
Amortization
of Acquired         (42,629   )        (25,207   )       (17,422 )       -                -
Contract
Liabilities
Depreciation
and                164,277          114,302         37,453        7,529          4,993   
Amortization
                                                                                       
Adjusted
Earnings
(Losses)
before
Interest,
Taxes,            $ 523,734        $  344,088        $ 169,752      $ 49,793       $  (39,899 )
Depreciation
and
Amortization
("Adjusted
EBITDA")
                                                                                       
Net Sales         $ 3,763,254      $  2,612,439      $ 871,750      $ 287,343      $  (8,278  )
                                                                                       
Adjusted           14.1      %       13.3      %      19.9    %      17.3    %       n/a     
EBITDA Margin
                                                                                                  

                                                                     
FINANCIAL DATA (UNAUDITED)
                                                                            
TRIUMPH GROUP, INC. AND SUBSIDIARIES
(dollars in thousands)
                                                                            
Non-GAAP
Financial
Measure
Disclosures
(continued)
                                                                            
Adjusted
Earnings
before
Interest,
Taxes,         Three Months Ended March 31, 2013
Depreciation
and
Amortization
(EBITDA):
                               Segment Data
                                                Aerospace     Aftermarket   Corporate /
               Total           Aerostructures   Systems       Services      Eliminations
                                                                            
Income from
Continuing     $ 65,602
Operations
                                                                            
Add-back:
Income Tax       29,876
Expense
Interest
Expense and     17,488    
Other
                                                                            
Operating
Income         $ 112,966       $  110,901       $ 33,440      $ 12,950      $  (44,325 )
(Loss)
                                                                            
Curtailments
and Early        29,344           -               -             -              29,344
Retirement
Incentives
Amortization
of Acquired      (5,870    )      (5,683    )     (187    )     -              -
Contract
Liabilities
Depreciation
and             33,361         23,751        6,199       2,221        1,190   
Amortization
                                                                            
Adjusted
Earnings
(Losses)
before
Interest,
Taxes,         $ 169,801      $  128,969      $ 39,452     $ 15,171     $  (13,791 )
Depreciation
and
Amortization
("Adjusted
EBITDA")
                                                                            
Net Sales      $ 986,268      $  720,722      $ 184,061    $ 83,881     $  (2,396  )
                                                                            
Adjusted
EBITDA          17.3      %     18.0      %    21.5    %    18.1    %     n/a     
Margin
                                                                            
                                                                            
Adjusted
Earnings
before
Interest,
Taxes,         Twelve Months Ended March 31, 2013
Depreciation
and
Amortization
(EBITDA):
                               Segment Data
                                                Aerospace     Aftermarket   Corporate /
               Total           Aerostructures   Systems       Services      Eliminations
                                                                            
Net Income     $ 297,347
                                                                            
Add-back:
Income Tax       165,710
Expense
Interest
Expense and     68,156    
Other
                                                                            
Operating
Income         $ 531,213       $  469,873       $ 103,179     $ 45,380      $  (87,219 )
(Loss)
                                                                            
Curtailments
and Early        34,481           -               -             -              34,481
Retirement
Incentives
Amortization
of Acquired      (25,644   )      (25,457   )     (187    )     -              -
Contract
Liabilities
Depreciation
and             129,506        95,884        19,869      9,118        4,635   
Amortization
                                                                            
Adjusted
Earnings
(Losses)
before
Interest,
Taxes,         $ 669,556      $  540,300      $ 122,861    $ 54,498     $  (48,103 )
Depreciation
and
Amortization
("Adjusted
EBITDA")
                                                                            
Net Sales      $ 3,702,702    $  2,781,344    $ 615,771    $ 314,506    $  (8,919  )
                                                                            
Adjusted
EBITDA           18.2      %      19.6      %     20.0    %     17.3    %      n/a
Margin
                                                                            


FINANCIAL DATA (UNAUDITED)
                                                     
TRIUMPH GROUP, INC. AND SUBSIDIARIES
(dollars in thousands)
                                                                    
Non-GAAP Financial Measure Disclosures (continued)
                                                                    
Adjusted income from continuing operations before income taxes, adjusted
income from continuing operations and adjusted income from continuing
operations diluted per share, before non-recurring costs has been provided for
consistency and comparability. These measures should not be considered in
isolation or as alternatives to income from continuing operations before
income taxes, income from continuing operations and income from continuing
operations per diluted share presented in accordance with GAAP. The following
table reconciles income from continuing operations before income taxes, income
from continuing operations and income from continuing operations per diluted
share, before non-recurring costs.

                                                           
                      Three Months Ended
                      March 31, 2014
                      Pre-tax       After-tax     Diluted EPS   Location on
                                                                Financial
                                                                Statements
Income from
Continuing            $ 63,283      $ 42,304      $ 0.80
Operations- GAAP
Non-Recurring
Costs:
Curtailments            (395    )     (256    )     (0.00 )     Corporate
Early retirement        916           594           0.01        Corporate
incentives
Relocation Costs                                                Aerostructures
(including              24,125        15,633        0.30        (Primarily)
interest)
Jefferson Street
Move:
Disruption              17,801        11,535        0.22        Aerostructures
                                                                (EAC) **
Accelerated            5,643      3,657       0.07       Aerostructures
Depreciation                                                    (EAC) **
                                                                
Adjusted Income
from Continuing       $ 111,373   $ 73,467     $ 1.39   *
Operations-
non-GAAP
                                                                
                      Twelve Months Ended
                      March 31, 2014
                      Pre-tax       After-tax     Diluted EPS   Location on
                                                                Financial
                                                                Statements
Income from
Continuing            $ 312,233     $ 206,256     $ 3.91
Operations- GAAP
Non-Recurring
Costs:
Settlements and         1,166         756           0.01        Corporate
curtailments, net
Early retirement        916           594           0.01        Corporate
incentives
Relocation Costs                                                Aerostructures
(including              31,910        20,678        0.39        (Primarily)
interest)
Jefferson Street
Move:
Disruption              24,714        16,015        0.30        Aerostructures
                                                                (EAC) **
Accelerated            13,676     8,862       0.17       Aerostructures
Depreciation                                                    (EAC) **
                                                                
Adjusted Income
from Continuing       $ 384,615   $ 253,161    $ 4.80   *
Operations-
non-GAAP

    
*     Difference due to rounding.
      EAC- estimated costs at completion with respect to contracts within the
* *   scope of Accounting Standards Codification 605-35, "Revenue
      Recognition-Construction-Type and Production-Type Contracts"

                                                           
FINANCIAL DATA (UNAUDITED)
                                                                
TRIUMPH GROUP, INC. AND SUBSIDIARIES
(dollars in thousands)
                                                                
Non-GAAP Financial Measure
Disclosures (continued)
                                                                
                             Three Months Ended
                             March 31, 2013
                             Pre-tax     After-tax   Diluted    Location on
                                                     EPS
                                                                Financial
                                                                Statements
Income from Continuing       $ 95,478    $ 65,602    $  1.24
Operations- GAAP
Non-Recurring Costs:
Curtailments                   23,662      15,250       0.29    Corporate
Early retirement               5,682       3,662        0.07    Corporate
incentives
Integration                    438         282          0.01    Aerostructures
                                                                (Primarily)
Pension remeasurement          1,800       1,160        0.02    Aerostructures
                                                                (EAC) **
Jefferson Street Move:
Disruption                     600         387          0.01    Aerostructures
                                                                (EAC) **
Accelerated Depreciation       800         516          0.01    Aerostructures
                                                                (EAC) **
Deal Costs-Primarily
Triumph Engine Control        3,027     1,951       0.04    Corporate
Systems
                                                                
Adjusted Income from
Continuing Operations-       $ 131,487  $ 88,810    $  1.68
non-GAAP
                                                                
                                                                
                                                                
                             Twelve Months Ended
                             March 31, 2013
                             Pre-tax     After-tax   Diluted    Location on
                                                     EPS
                                                                Financial
                                                                Statements
Income from Continuing       $ 463,057   $ 297,347   $  5.67
Operations- GAAP
Non-Recurring Costs:
Curtailments                   23,662      15,250       0.29    Corporate
Early Retirement               10,819      6,973        0.13    Corporate
Incentives
Integration                    2,665       1,718        0.03    Aerostructures
                                                                (Primarily)
Pension Remeasurement          1,800       1,160        0.02    Aerostructures
                                                                (EAC) **
Jefferson Street Move:
Disruption                     600         387          0.01    Aerostructures
                                                                (EAC) **
Accelerated Depreciation       800         516          0.01    Aerostructures
                                                                (EAC) **
Deal Costs- Primarily
Triumph Engine Control        3,892     2,508       0.05    Corporate
Systems
                                                                
Adjusted Income from
Continuing Operations-       $ 507,295  $ 325,859   $  6.21
non-GAAP
                                                                


FINANCIAL DATA (UNAUDITED)
                                               
TRIUMPH GROUP, INC. AND SUBSIDIARIES
(dollars in thousands)
                                                                 
Non-GAAP Financial Measure Disclosures (continued)
                                                                 
Cash provided by operations, before pension contributions has been provided
for consistency and comparability. We also use free cash flow available for
debt reduction as a key factor in planning for and consideration of strategic
acquisitions, stock repurchases and the repayment of debt. This measure should
not be considered in isolation, as a measure of residual cash flow available
for discretionary purposes, or as an alternative to operating results
presented in accordance with GAAP. The following table reconciles cash
provided by operations, before pension contributions to cash provided by
operations, as well as cash provided by operations to free cash flow available
for debt reduction.

                                                     
                                                       Twelve Months Ended
                                                       March 31,
                                                       2014         2013
                                                                     
Cash provided by operations, before pension            $ 181,483     $ 430,736
contributions
Pension contributions                                   46,347      109,818
Cash provided by operations                              135,136       320,918
Less:
Capital expenditures                                     206,414       126,890
Dividends                                               8,334       8,005
Free cash flow available for debt reduction            $ (79,612 )   $ 186,023


We use "Net Debt to Capital" as a measure of financial leverage. The following
table sets forth the computation of Net Debt to Capital:

                                              
                                 March 31,       March 31,
                                 2014            2013
                                                 
Calculation of Net Debt
Current portion                  $ 49,575        $ 133,930
Long-term debt                    1,500,808     1,195,933 
Total debt                         1,550,383       1,329,863
Less: Cash                        28,998        32,037    
Net debt                         $ 1,521,385    $ 1,297,826 
                                                 
Calculation of Capital
Net debt                         $ 1,521,385     $ 1,297,826
Stockholders' equity              2,283,911     2,045,158 
Total capital                    $ 3,805,296    $ 3,342,984 
                                                 
Percent of net debt to capital     40.0      %     38.8      %
                                                 

Contact:

Triumph Group, Inc.
Sheila G. Spagnolo
Vice President – Tax & Investor Relations
(610) 251-1000
sspagnolo@triumphgroup.com
 
Press spacebar to pause and continue. Press esc to stop.