CLEVELAND, Aug. 4 /PRNewswire-FirstCall/ -- TransDigm Group Incorporated (NYSE: TDG), a leading global designer, producer and supplier of highly engineered aircraft components, today reported results for the fiscal third quarter ended June 27, 2009. Highlights for the third quarter include:

• Earnings per share up 13.9% to $0.82 from $0.72
  

• Net sales up 2.1% to $189.9 million from $186.1 million
  

• Net income up 15.0% to $41.4 million from $36.0 million
  

• Adjusted earnings per share up 16.0% to $0.87 from $0.75
  

• EBITDA As Defined up 9.2% to $94.7 million from $86.8 million
  

• Increase in fiscal 2009 earnings outlook
  

Net sales for the quarter rose 2.1% to $189.9 million from $186.1 million in the comparable quarter a year ago due to the acquisitions of CEF Industries, Unison Industries' ignition product line and Aircraft Parts Corporation. The favorable contribution from acquisitions was partially offset by a 5.5% decline in organic net sales. The decrease in organic sales was primarily due to lower commercial OEM and aftermarket demand partially offset by strong defense sales.

Net income for the quarter rose 15.0% to $41.4 million, or $0.82 per share, compared with $36.0 million, or $0.72 per share, in the comparable quarter a year ago. This increase in net income of $5.4 million reflects the improvements in operating margins resulting from the strength of our proprietary products, productivity gains from continued cost reduction initiatives, a decrease in interest expense and a lower effective tax rate.

Adjusted net income for the quarter increased 16.3% to $43.6 million, or $0.87 per share, from $37.5 million, or $0.75 per share, in the comparable quarter a year ago. Adjusted net income for the current quarter excludes $2.2 million, net of tax, or $0.05 per share, of non-cash compensation costs and acquisition-related expenses. Adjusted net income for the prior-year quarter excluded $1.5 million, net of tax, or $0.03 per share, of non-cash compensation costs and acquisition-related expenses.

EBITDA for the quarter increased 8.7% to $91.9 million from $84.6 million for the comparable quarter a year ago. EBITDA As Defined for the quarter increased 9.2% to $94.7 million from $86.8 million for the comparable quarter a year ago. EBITDA As Defined Margin for the quarter increased 330 basis points to 49.9%.

"We are pleased with our third quarter and year-to-date periods operating performance in the face of continuing difficult market conditions," stated W. Nicholas Howley, TransDigm Group's Chairman and Chief Executive Officer. "The decrease in organic revenue in the quarter was negatively impacted by a significant decline of over 30% in business jet OEM and aftermarket demand, while other commercial sales were down modestly. Those declines were again offset by significant growth in defense sales. As a result of our aggressive cost reductions, favorable mix and consistent operating strategy, we continue to see growth in both organic and acquired EBITDA As Defined with EBITDA As Defined margins improving approximately three percentage points from the prior year nine-month period."

As previously reported on July 27, 2009, the Company acquired Acme Aerospace, Inc. (Acme) for approximately $40 million in cash. Acme is located in Tempe, Arizona and manufactures proprietary, highly engineered components for the aerospace industry.

Year-to-Date Results

Net sales for the 39-week period ended June 27, 2009 were $564.2 million, a 7.6% increase over net sales of $524.5 million in the comparable period last year. This increase was due to recent acquisitions partially offset by a 1.6% decline in organic net sales.

Net income for the 39-week period increased 27.5% to $121.3 million, or $2.41 per share, from $95.1 million, or $1.90 per share, in the comparable period a year ago. The increase of $26.2 million reflects the net sales growth, improvements in operating margins resulting from the strength of our proprietary products, productivity gains from continued cost reduction initiatives, favorable product mix and a decrease in interest expense.

Adjusted net income for the 39-week period increased 26.9% to $127.6 million, or $2.53 per share, from $100.5 million, or $2.01 per share, in the comparable period a year ago. Adjusted net income in the current year-to-date period excludes $3.4 million of acquisition-related costs, net of tax, or $0.06 per share, and $2.9 million of certain non-cash compensation-related expenses, net of tax, or $0.06 per share. Adjusted net income in the prior year-to-date period excluded $2.4 million of acquisition-related costs, net of tax, or $0.05 per share, and $3.0 million of certain non-cash compensation-related expenses, net of tax, or $0.06 per share.

EBITDA for the 39-week period increased 15.4% to $273.2 million compared with $236.8 million for the comparable period a year ago. EBITDA As Defined for the period increased 15.2% to $280.6 million from $243.6 million for the comparable period a year ago. EBITDA As Defined Margin for the period increased 330 basis points to 49.7% over the same period a year ago.

During the 39-week period, the Company purchased 494,100 shares of the Company's common stock on the open market for approximately $15.2 million. At June 27, 2009, the Company had remaining authorization to purchase $34.8 million of additional shares.

Revision to Fiscal 2009 Outlook

Mr. Howley continued, "The Company is revising full year fiscal 2009 guidance by increasing our earnings range to reflect lower interest and income tax expense as well as the strong margins experienced in the first three quarters of the year, while slightly reducing our revenue expectation. Our organic growth will remain a challenge in this difficult market environment, but the combination of our focused operating strategy and recent acquisitions should allow us to see both organic and acquired growth in our full year earnings."

Based upon current market conditions and assuming no further acquisition activity, the revised guidance is as follows:

• Revenues are anticipated in the range of $750 million to $758 million (previously in the range of $750 million to $765 million) compared with $714 million in fiscal 2008;
• Net income is anticipated in the range of $160 million to $163 million (previously in the range of $152 million to $158 million) compared with $133 million in fiscal 2008;
• EBITDA As Defined is anticipated in the range of $370 million to $374 million (previously in the range of $363 million to $372 million) compared with $333 million in fiscal 2008;
• Earnings per share are expected to be in the range of $3.18 to $3.24 per share (previously in the range of $3.01 to $3.13 per share) compared with $2.65 in fiscal 2008. Weighted-average shares outstanding are assumed to be 50.4 million; and
• Adjusted earnings per share are expected to be in the range of $3.36 to $3.42 per share (previously in the range of $3.19 to $3.31 per share) compared with $2.79 in fiscal 2008.
  

Please see the attached tables for a reconciliation of net income to EBITDA, EBITDA As Defined, and adjusted net income and a reconciliation of operating cash flow to EBITDA and EBITDA As Defined for the periods discussed in this press release.

Conference Call

TransDigm Group will host a conference call for investors and security analysts on August 4, 2009, beginning at 11:00 a.m., Eastern Time. To join the call, dial (866) 788-0547 and enter the pass code 60821770. International callers should dial (857) 350-1685 and use the same pass code. A live audio webcast can be accessed online at http://www.transdigm.com.