Triumph Group, Inc. (NYSE:TGI) Q4 2018 Earnings Conference Call Transcript

May 10, 2018 • 08:30 am ET

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Triumph Group, Inc. (NYSE:TGI) Q4 2018 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Ladies and gentlemen, thank you for standing by. Welcome to the Truimph Group Conference Call to discuss our Fourth Quarter Fiscal Year 2018 Results. This call is being carried live on the internet. There is also a slide presentation included with the audio portion of the webcast. Please ensure that your pop-up blocker is disabled if you are having trouble during the slide presentation. You are currently in a listen-only mode. There will be a question-and-answer session following the introductory comments by management.

On behalf of the company, I would like to read the following statement. Certain statements on this call constitute forwarding-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve known and unknown risks, uncertainties, and other factors which may cause Triumph's actual results, performance or achievements to be materially different from any expected future results, performance or achievements expressed or implied in the forward-looking statements.

Please note that the company's reconciliation of non-GAAP financial measures to comparable measures is included in the press release, which can be found on their website at www.triumphgroup.com. In addition, please note this call is the property of Triumph Group, Inc., and may not be recorded, transcribed or rebroadcast without explicit written approval.

At this time, I would like to introduce Daniel J. Crowley, the company's President and Chief Executive Officer; and James F. McCabe, Jr., Senior Vice President Chief and Chief Financial Officer of Triumph Group. Go ahead, Mr. Crowley.

Executive
Daniel J. Crowley

Hey, thank you, Kevin and good morning. Welcome to our earnings call for the fourth quarter and full year results for 2018. We had a solid quarter in Q4 and met our full year guidance on all measures, revenue, earnings and cash use.

Jim and I will talk through a number of our operational and strategic accomplishments that occurred during the fourth quarter and the fiscal year. To put FY18 in perspective at a high level, what I'm most excited about is our sales growth. Sales growth is an important issue because it shows the internal work we've been doing for the past few years to reset Triumph's foundation is working. I've talked with you about the need to deliver on commitments, become predictably profitable, and drive organic growth. And over the last two years, we've taken considerable action to reorganize and consolidate Triumph into a one company culture, implement, much needed operational improvements, and address contractual challenges in our Structures business.

Our story is evolving. As we move along our path to value, there's a line of sight and we are nose up. Looking at page 3, we finished the year on an upswing at the high end of our revenue guidance. Margins are improving in Product Support and Integrated Systems and we've significantly reduced volatility and risks in the Structures business, and it shows. There are only a few remaining programs left and we are working through Global 7000 specifically where our cash use has been the highest. We reached an agreement