Triumph Group, Inc. (NYSE:TGI) Q3 2019 Earnings Conference Call Transcript
Feb 07, 2019 • 08:30 am ET
Ladies and gentlemen, thank you for standing by. Welcome to the Triumph Group conference call to discuss our third quarter fiscal year 2019 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 your pop-up blocker is disabled if you're having trouble viewing 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 now like to read the following statement. Certain statements on this call constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. (technical difficulty) 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 GAAP measures is included in the press release, which can be found on their website at www.triumphgroup.com. In addition, please note that 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 and Chief Financial Officer of Triumph Group, Inc. Go ahead, Mr. Crowley.
Daniel J. Crowley
Thanks, Kevin, and good morning. The key takeaway from today's call is that Triumph is executing on its fiscal 2019 plan and positioning the Company for return to profitability and positive cash flow with a mix shift towards higher value, more profitable businesses. Over the past few weeks, we announced a series of divestitures that are game changers of Triumph. These delevering actions, combined with the operational and business development progress leading up to this point, improved the future state of the Company, both structurally and financially. Importantly, the payout for our restructuring investments that we've made over the last three years accelerates in our fiscal year '20, which begins this April.
I'll share more about these actions in a moment, and I encourage you to refer to the supplemental slides we have on our website as Jim and I review the quarter and discuss Triumph's path forward as a more focused and efficient company.
Overall, the quarter met our expectations, while reinforcing our strategy to exit non-core programs and businesses. In the third quarter, we advanced on key financial and strategic objectives. We reaffirm our fiscal year 2019 sales, earnings and cash guidance.
Integrated Systems and Product Support once again generated organic sales growth on a year-over-year basis. When accounting for divestitures, Aerospace Structures also generated year-over-year organic sales growth. This is the third consecutive quarter of top line growth for the three segments. Integrated Systems reported 6% organic increase in sales for the quarter, driven by content growth and rate increases on