Market Overview

Triumph Group Reports First Quarter Fiscal 2019 Results

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Triumph Group, Inc. (NYSE:TGI) ("Triumph" or the "Company")
today reported financial results for its first quarter of fiscal year
2019, which ended June 30, 2018.

First Quarter 2019 Highlights

  • Net sales were $832.9 million.
  • Operating loss was ($66.5) million, which includes the non-cash ASU
    2017-07 pension adjustment of ($87.2) million. On an adjusted basis,
    operating income was $29.5 million with an adjusted operating margin
    of 3.5%.
  • Net loss was ($76.5) million, or ($1.54) per share. On an adjusted
    basis, net income was $17.0 million, or $0.34 per diluted share.
  • Cash used in operations was ($65.7) million, and free cash use was
    ($77.9) million.
  • Guidance for fiscal 2019 for net sales of $3.3 to $3.4 billion and
    earnings per share of ($0.55) to $0.15, or $1.50 to $2.10 per diluted
    share on an adjusted basis.
  • Management provides guidance for cash used from operations of ($150.0)
    to ($190.0) million and free cash use of ($200.0) to ($250.0) million,
    which includes approximately ($180.0) million related to the reduction
    in prior year customer advances, and approximately ($130.0) million
    related to the Global 7500 program.

"Triumph's first quarter results demonstrate our continued progress
towards achieving our financial performance targets," stated Daniel J.
Crowley, Triumph's president and chief executive officer. "Consistent
with our projections for fiscal 2019, we delivered a year-over-year
increase in net sales, with all three business segments generating
organic sales growth."

Mr. Crowley continued, "Our first quarter cash usage was consistent with
our expectations and showed both year-over-year and sequential
improvement. Excluding the cash consumed by the Global 7500 program and
the liquidation of prior year customer advances, free cash flow was
positive in the first quarter."

Mr. Crowley continued, "We expect to use significantly less cash for
Aerospace Structures' programs in fiscal 2019 and fiscal 2020 compared
to the two prior years. Our fiscal 2019 cash guidance reflects the
improvements the Company has made operationally and in contract
negotiations over the past two years and is another waypoint towards
consistent positive cash flow. Our continued portfolio reshaping in the
first quarter included agreements to divest two non-core businesses, in
addition to completing a third divestiture following the end of the
quarter, which we expect to further enhance our future profitability and
cash flow. Additional divestitures are planned for the second half of
FY19."

First Quarter Fiscal Year 2019 Overview

After accounting for divestitures and the impact of the adoption of ASC
606, sales for the first quarter of fiscal 2019 were up 3% organically
from the comparable prior year period. Sales growth was driven by the
ramp on the Global 7500 as well as increased rotorcraft deliveries and
higher demand for structural component repairs.

First quarter operating loss of ($66.5) million included a previously
disclosed $87.2 million non-cash pension charge related to the adoption
of the new FASB accounting standard update, ASU 2017-07. Net loss for
the first quarter of fiscal year 2019 was ($76.5) million, or ($1.54)
per share. On an adjusted basis, net income was $17.0 million, or $0.34
per diluted share. Triumph's results included the following:

     
($ millions except EPS) Pre-tax After-tax Diluted EPS
Loss from Continuing Operations - GAAP $ (75.5 ) $ (76.5 ) $ (1.54 )
 
Adoption of ASU 2017-07 87.2 85.5 1.72
Loss on Assets Held for Sale 4.7 4.7 0.09
Transformation related costs:
Restructuring costs (cash) 4.0 3.4 0.07
 
Adjusted Income from Continuing Operations - non- GAAP

$

20.5

$

17.0

$

0.34*

 

*Difference due to rounding

 

 

 

The number of shares used in computing diluted earnings per share for
the first quarter of fiscal year 2019 was 49.8 million.

Backlog was $4.4 billion, a 5% increase from the prior year period and
down slightly on a sequential basis reflecting increased selectivity in
pursuing new awards based on projected profitability and cash flow and
the non-linear nature of order timing.

For the quarter ended June 30, 2018, cash flow used in operations was
($65.7) million, reflecting approximately ($53.0) million for the
liquidation of customer advances and approximately ($81.0) million of
cash used on the Global 7500 program.

Outlook

Based on anticipated aircraft production rates and completed
divestitures, the Company continues to expect that net sales for fiscal
year 2019 will be approximately $3.3 to $3.4 billion, up from fiscal
2018 as development programs enter production, and sales from continuing
programs and new wins offset waning programs. The Company expects fiscal
year 2019 earnings per share to be ($0.55) to $0.15, or $1.50 to $2.10
per diluted share, adjusted for pension accounting changes,
transformation related costs and loss on assets held for sale.

The Company expects fiscal year 2019 cash used in operations of ($150.0)
to ($190.0) million, and free cash use of ($200.0) to ($250.0) million,
which includes approximately ($180.0) million related to the liquidation
of customer advances received in fiscal 2017 and 2018, and approximately
($130.0) million of cash use related to the Global 7500 program.

The Company's current outlook reflects adjustments detailed in the
attached tables but does not take into account the impact of any
potential future divestitures.

Conference Call

Triumph Group will hold a conference call today, August 8th
at 8:30 a.m. (ET) to discuss the first quarter fiscal year 2019 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 August 8th to
August 15th by calling (855) 859-2056 (Domestic) or (404)
537-3406 (International), passcode #2361117.

About Triumph Group

Triumph Group, Inc., headquartered in Berwyn, Pennsylvania, designs,
engineers, manufactures, repairs and overhauls a broad portfolio of
aircraft structures, 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 www.triumphgroup.com.

Forward Looking Statements

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 financial and operational
performance, revenues, earnings per share, cash flow or use, cost
savings and operational efficiencies and organizational restructurings.
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 Group's reports
filed with the SEC, including our Annual Report on Form 10-K for the
fiscal year ended March 31, 2018.

FINANCIAL DATA (UNAUDITED) ON FOLLOWING PAGES

 
FINANCIAL DATA (UNAUDITED)
TRIUMPH GROUP, INC. AND SUBSIDIARIES
(in thousands, except per share data)
 
 
  Three Months Ended
June 30,
 
CONDENSED STATEMENTS OF OPERATIONS 2018 2017 *
 
 
Net sales $ 832,900 $ 781,689
 
Operating loss (66,548 ) (968 )
 
Interest expense and other 25,493 21,018
Non-service defined benefit income (16,538 ) (19,377 )
Income tax expense (benefit)   1,031     (678 )
 
Net loss $ (76,534 ) $ (1,931 )
 
Earnings per share - basic:
 
Net loss $ (1.54 ) $ (0.04 )
 
Weighted average common shares outstanding - basic   49,552     49,341  
 
Earnings per share - diluted:
 
Net loss $ (1.54 ) $ (0.04 )
 
Weighted average common shares outstanding - diluted   49,552     49,341  
 
Dividends declared and paid per common share $ 0.04   $ 0.04  
 

*      Adjusted for ASU 2017-07 (Pension)

 
 
FINANCIAL DATA (UNAUDITED)
TRIUMPH GROUP, INC. AND SUBSIDIARIES
(dollars in thousands, except per share data)
     
BALANCE SHEET Unaudited   Audited
June 30, March 31,
2018 2018

Assets

Cash and cash equivalents $ 33,055 $ 35,819
Accounts receivable, net 337,245 376,612
Contract assets 537,332 37,573

Inventory, net of unliquidated progress payments of $0 and $387,146

533,982 1,427,169
Prepaid and other current assets 30,753 44,428
Assets held for sale   80,719     1,324  
Current assets 1,553,086 1,922,925
 
Property and equipment, net 732,300 726,003
Goodwill 587,571 592,828
Intangible assets, net 493,105 507,681
Other, net   53,905     57,627  
 
Total assets $ 3,419,967   $ 3,807,064  
 

Liabilities & Stockholders' (Deficit) Equity

 
Current portion of long-term debt $ 16,710 $ 16,527
Accounts payable 514,907 418,367
Contract liabilities 474,644 321,191
Accrued expenses 225,093 235,914
Liabilities related to assets held for sale   29,588     440  
Current liabilities 1,260,942 992,439
 
Long-term debt, less current portion 1,503,664 1,421,757
Accrued pension and post-retirement benefits, noncurrent 465,595 483,887
Deferred income taxes, noncurrent 16,175 16,582
Other noncurrent liabilities 400,172 441,865
 
Stockholders' (Deficit) Equity:

Common stock, $.001 par value, 100,000,000 shares
authorized,
52,460,920 and 52,460,920 shares issued

51 51
Capital in excess of par value 850,552 851,280
Treasury stock, at cost, 2,696,560 and 2,791,072 shares (176,038 ) (179,082 )
Accumulated other comprehensive loss (383,828 ) (367,870 )
(Accumulated deficit) Retained earnings   (517,318 )   146,155  
Total stockholders' (deficit) equity   (226,581 )   450,534  
 
Total liabilities and stockholders' (deficit) equity $ 3,419,967   $ 3,807,064  
 
   
FINANCIAL DATA (UNAUDITED)
TRIUMPH GROUP, INC. AND SUBSIDIARIES
(dollars in thousands)
 
 
 
SEGMENT DATA

 

Three Months Ended

 

June 30,

 
  2018 2017 *
 
Net sales:
Integrated Systems $ 241,039 $ 238,136
Aerospace Structures 532,387 483,314
Product Support 66,215 66,433
Elimination of inter-segment sales   (6,741 )   (6,194 )
$ 832,900   $ 781,689  
 
Operating (loss) income:
Integrated Systems $ 35,409 $ 46,982
Aerospace Structures (79,587 ) (22,488 )
Product Support 7,669 8,437
Corporate   (30,039 )   (33,899 )
$ (66,548 ) $ (968 )
 
Operating Margin %
Integrated Systems 14.7 % 19.7 %
Aerospace Structures -14.9 % -4.7 %
Product Support 11.6 % 12.7 %
Consolidated -8.0 % -0.1 %
 
Depreciation and amortization:
Integrated Systems $ 7,555 $ 9,951
Aerospace Structures 28,920 27,140
Product Support 1,670 1,738
Corporate   667     302  
$ 38,812   $ 39,131  
 
Amortization of acquired contract liabilities:
Integrated Systems $ (8,849 ) $ (7,303 )
Aerospace Structures   (8,385 )   (22,170 )
$ (17,234 ) $ (29,473 )
 
Capital expenditures:
Integrated Systems $ 1,609 $ 2,565
Aerospace Structures 10,138 8,479
Product Support 348 261
Corporate   105     780  
$ 12,200   $ 12,085  
 
 
*Adjusted for ASU 2017-07 (Pension)
 

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 and Adjusted EBITDAP, which
is our net income before interest, income taxes, amortization of
acquired contract liabilities, curtailments, settlements and early
retirement incentives, legal settlements, depreciation and amortization
and Adjusted EBITDA, less pension & other postretirement benefits. We
disclose Adjusted EBITDA and Adjusted EBITDAP on a consolidated and
Adjusted EBITDAP 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 and Adjusted EBITDAP as 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
and Adjusted EBITDAP, 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 and Adjusted
EBITDAP are not measurements 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 or Adjusted EBITDAP as substitutes 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
and Adjusted EBITDAP 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 and Adjusted EBITDAP 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 20 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 and Adjusted EBITDAP
exclude 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 and Adjusted EBITDAP helps investors meaningfully evaluate and
compare our performance from quarter to quarter and from year to year.
We also believe Adjusted EBITDA and Adjusted EBITDAP 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 and Adjusted EBITDAP 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 Adjusted
EBITDAP and the material limitations associated with using this non-GAAP
financial measure as compared to net income:

  • Divestitures may be useful for investors to consider because they
    reflect gains or losses from sale of operating units. We do not
    believe these earnings necessarily reflect the current and ongoing
    cash earnings related to our operations.
  • Legal settlements may be useful to investors to consider because they
    reflect gains or losses from disputes with third parties. We do not
    believe that these earnings necessarily reflect the current and
    ongoing cash earnings related to our operations.
  • Non-service defined benefit income (inclusive of the adoption of ASU
    2017-07) may be useful to investors to consider because they represent
    the cost of post retirement benefits to plan participants, net of the
    assumption of returns on the plan's assets and are not indicative of
    the cash paid for such benefits. We do not believe these earnings
    (expenses) 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.
  • 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 and Adjusted EBITDAP
reconciled to our net income for the indicated periods (in thousands):

 
Three Months Ended
June 30,
2018   2017

Adjusted Earnings before Interest, Taxes,

Depreciation and Amortization (EBITDA):

Net Loss $ (76,534 ) $ (1,931 )
 
Add-back:
Income Tax Expense (Benefit) 1,031 (678 )
Interest Expense and Other 25,493 21,018
Loss on Assets Held for Sale 4,719 -
Adoption of ASU 2017-07 87,241 -
Amortization of Acquired Contract Liabilities (17,234 ) (29,473 )
Depreciation and Amortization   38,812     39,131  
 

Adjusted Earnings before Interest, Taxes,
Depreciation and
Amortization ("Adjusted EBITDA")

$ 63,528   $ 28,067  
 
Non-service defined benefit income   (16,538 )   (19,377 )

Adjusted Earnings before Interest, Taxes,
Depreciation and
Amortization, and Pension ("Adjusted EBITDAP")

$ 46,990   $ 8,690  
 
Net Sales $ 832,900   $ 781,689  
 
Net Loss Margin   -9.2 %   -0.2 %
 
Adjusted EBITDAP Margin   5.8 %   1.2 %
 
 
FINANCIAL DATA (UNAUDITED)
TRIUMPH GROUP, INC. AND SUBSIDIARIES
(dollars in thousands)
 
Non-GAAP Financial Measure Disclosures (continued)          
 

 

Three Months Ended June 30, 2018

Adjusted Earnings before Interest, Taxes,

Depreciation and Amortization, and Pension

(EBITDAP):

Segment Data
Total  

Integrated
Systems

 

Aerospace
Structures

  Product Support  

Corporate /
Eliminations

 
Net Loss $ (76,534 )
 
Add-back:
Non-service defined benefit income $ (16,538 )
Income Tax Expense 1,031
Interest Expense and Other   25,493  
 
Operating (Loss) Income (66,548 ) 35,409 (79,587 ) 7,669 (30,039 )
Loss on Assets Held for Sale 4,719 - - - 4,719
Adoption of ASU 2017-07 87,241 - 87,241 - -
Amortization of Acquired Contract Liabilities (17,234 ) (8,849 ) (8,385 ) - -
Depreciation and Amortization   38,812     7,555     28,920     1,670     667  
 

Adjusted Earnings (Losses) before Interest, Taxes,
Depreciation
and Amortization, Pension ("Adjusted EBITDAP")

$ 46,990   $ 34,115   $ 28,189   $ 9,339   $ (24,653 )
 
Net Sales $ 832,900   $ 241,039   $ 532,387   $ 66,215   $ (6,741 )
 
Adjusted EBITDAP Margin

5.8

%

14.7

%

5.4

%

14.1

%

n/a

 
 

 

Three Months Ended June 30, 2017

Adjusted Earnings before Interest, Taxes,

Depreciation and Amortization, and Pension

(EBITDAP):

Segment Data
Total  

Integrated
Systems

 

Aerospace
Structures

  Product Support  

Corporate /
Eliminations

 
Net Loss $ (1,931 )
 
Add-back:
Non-service defined benefit income $ (19,377 )
Income Tax Benefit (678 )
Interest Expense and Other   21,018  
 
Operating (Loss) Income $ (968 ) $ 46,982 $ (22,488 ) $ 8,437 $ (33,899 )
Amortization of Acquired Contract Liabilities (29,473 ) (7,303 ) (22,170 ) - -
Depreciation and Amortization   39,131     9,951     27,140     1,738     302  
 

Adjusted Earnings (Losses) before Interest, Taxes,
Depreciation
and Amortization ("Adjusted EBITDAP")

$ 8,690   $ 49,630   $ (17,518 ) $ 10,175   $ (33,597 )
 
Net Sales $ 781,689   $ 238,136   $ 483,314   $ 66,433   $ (6,194 )
 
Adjusted EBITDAP Margin

1.2

%

21.5

%

-3.8

%

15.3

%

n/a

 

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

June 30, 2018

FY 19 EPS
Guidance Range

Pre-tax

 

After-tax

Diluted EPS

 
Loss from Continuing Operations- GAAP $ (75,503 ) $ (76,534 ) $ (1.54 ) $ (0.55 ) - $0.15
Adjustments:
Adoption of ASU 2017-07 87,241 85,474 1.72 $ 1.72
Loss on Assets Held for Sale 4,719 4,719 0.09 $ 0.09
Restructuring costs (cash)   4,047     3,359     0.07   $ 0.14 - $0.24  
 
Adjusted Income from Continuing Operations- non-GAAP $ 20,504   $ 17,018   $ 0.34   $ 1.50 - $2.10  
 

Three Months Ended

June 30, 2017

Pre-tax

After-tax

Diluted EPS

 
Loss from Continuing Operations- GAAP $ (2,609 ) $ (1,931 ) $ (0.04 )
Adjustments:
Transformation related costs:
Restructuring costs (non-cash) 860 636 0.01
Restructuring costs (cash)   17,500     12,950     0.26  
 
Adjusted Income from Continuing Operations- non-GAAP $ 15,751   $ 11,655   $ 0.24   *

*   Difference due to rounding.

The following table reconciles our Operating income to Adjusted
Operating income as noted above.

 
Three Months Ended
June 30, 2018   June 30, 2017
Operating Income - GAAP $ (66,548 ) $ (968 )
Adjustments:
Adoption of ASU 2017-07 87,241 -
Loss on assets held for sale 4,719 -
Restructuring costs (non-cash) - 860
Restructuring costs (cash)   4,047     17,500  
Adjusted Operating Income-non-GAAP $ 29,459   $ 17,392  
 

FINANCIAL DATA (UNAUDITED)

TRIUMPH GROUP, INC. AND SUBSIDIARIES

(dollars in thousands)

Non-GAAP Financial Measure Disclosures (continued)

Cash provided by operations, is provided for consistency and
comparability. We also use free cash flow as a key factor in planning
for and consideration of strategic acquisitions 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 to free cash flow.

 
  Three Months Ended  
June 30, FY 19 Cash Flow
2018   2017 Guidance Range
 
Cash flow from operations $ (65,714 ) $ (99,048 ) $ (150,000 ) - $(190,000)
Less:
Capital expenditures (12,200 ) (12,085 ) (50,000 ) - (60,000)
     
Free cash flow
$ (77,914 ) $ (111,133 ) $ (200,000 ) - ($250,000)
 

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

   
June 30, March 31,
2018 2018
 

Calculation of Net Debt

Current portion $ 16,710 $ 16,527
Long-term debt   1,503,664     1,421,757  
Total debt 1,520,374 1,438,284
Plus: Deferred debt issuance costs 16,007 16,949
Less: Cash   (33,055 )   (35,819 )
Net debt $ 1,503,326   $ 1,419,414  
 

Calculation of Capital

Net debt $ 1,503,326 $ 1,419,414
Stockholders' (deficit) equity   (226,581 )   450,534  
Total capital $ 1,276,745   $ 1,869,948  
 
Percent of net debt to capital 117.7 % 75.9 %
 

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