TransDigm Group Incorporated (NYSE:TDG) Q4 2019 Earnings Conference Call - Final Transcript

Nov 19, 2019 • 11:00 am ET

Previous

TransDigm Group Incorporated (NYSE:TDG) Q4 2019 Earnings Conference Call - Final Transcript

Share
Close

Loading Event

Loading Transcript

Q & A
Executive
W. Nicholas Howley

over a long period of time. Each year, it won't be that. Clearly it's done. I want to say the growth in the public market for the last, whatever it is, 12 or 13 years has been more like 35%. I don't think that will continue going forward and our goal is still, as I say,a PE like return and we still think that's reasonable to expect. On the compensation targets, what the 17.5% roughly is, it's about what top quartile PE funds return. So we -- and that's how we have targeted through the years. And as we got bigger, it made more sense to look like a top quartile PE fund, and that's why we went to the 17.5%. Should that go to 15% at someday, I don't know. Perhaps. But it's not in the gunsight right now.

Analyst
Seth Seifman

Got it, got it. Okay. And then as a follow-up, just to make sure I understand. Last quarter without Esterline, it looked like the pro forma commercial aftermarket contribution to the company was 36% of revenue. And this quarter it's 31%. And so it would seem that Esterline piece is coming in with below 30% commercial aftermarket, or is that like an incorrect reading on my part?

Executive
W. Nicholas Howley

We are not following your math. I am not sure that's correct.

Analyst
Seth Seifman

Okay. Well, I was just looking at the slides...

Executive
Kevin Stein

If the Esterline contribution is well below 30% we know that's not correct.

Analyst
Seth Seifman

Okay. Fair. I was just looking at the slides from last quarter and in this quarter. But maybe two more quick quick-clean up ones, on the defense piece that's 37% now. But what's the rough split there with Esterline of -- the total TransDigm defense pie between aftermarket and OE?

Executive
Kevin Stein

I think it's similar to our commercial business, but that's as much as we'd guide on that.

Analyst
Seth Seifman

All right. Okay. Okay. And then the last piece is, you talked about $4 billion of cash at year-end, I guess. -- actually, I'll leave it there.

Executive
W. Nicholas Howley

Calendar year.

Analyst
Seth Seifman

Yes.

Operator
Operator

Thank you. And I'm not showing any further questions in the queue. I would like to turn the call back to Liza Sabol for her final remarks.

Executive
Liza Sabol

Thank you. That concludes our call today. We just would like to thank you again for calling in.

Operator
Operator

[Operator Closing Remarks].