Triumph Group, Inc. (NYSE:TGI) Q1 2024 Earnings Conference Call August 2, 2023 8:30 AM ET

Company Participants

Thomas Quigley - Vice President, Investor Relations and Controller

Daniel Crowley - Chairman, President and Chief Executive Officer

James McCabe - Senior Vice President and Chief Financial Officer

Conference Call Participants

Sheila Kahyaoglu - Jefferies

Peter Arment - Robert W. Baird & Co.

David Strauss - Barclays Bank

Myles Walton - Wolfe Research

Michael Ciarmoli - Truist Securities

Cai Rumohr - TD Cowen

Andre Madrid - Bank of America

Noah Poponak - Goldman Sachs

Operator

Welcome to Triumph Group's First Quarter Fiscal Year 2024 Results Conference Call. Today, all participants will be in a listen-only mode. [Operator Instructions] Please note that today’s event is being recorded.

At this time, I would like to turn the conference over to, Thomas Quigley, Vice President, Investor Relations. Please go ahead.

Thomas Quigley

Thank you. Good morning, and welcome to our first quarter fiscal 2024 earnings call. Today, I'm joined by Dan Crowley, the company's Chairman, President and Chief Executive Officer; and Jim McCabe, Senior Vice President and Chief Financial Officer of Triumph.

As we review the financial results for the quarter, please refer to the presentation posted on our website this morning. We will be discussing our adjusted results. Our adjustments and any reconciliation of non-GAAP financial measures to comparable GAAP measures are explained in the earnings release and the presentation. Certain statements on this call constitute forward-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.

Dan, I'll turn the call over to you.

Daniel Crowley

Thanks, Tom. Triumph is off to a strong start in fiscal year 2024 with expanding sales and margins as we focus on profitable growth and building on our success in the aftermarket. We are well positioned to take advantage of the increasing commercial aircraft build rates and growth in defense spending as we accelerate our future. We met or exceeded our expectations for Q1, delivering organic sales growth and improved profitability compared to the prior year.

Our deleveraging plan is on track as the issuance of our warrants yielded approximately $100 million in total proceeds, including $14 million in debt reduction. We plan to use a significant portion of these proceeds to further reduce debt. Overall, we remain committed to generating positive free cash flow and deleveraging the company to enhance shareholder value.