Author Topic: TDG - Transdigm  (Read 138460 times)

Larry

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Re: TDG - Transdigm
« Reply #210 on: February 18, 2016, 08:00:57 AM »
sec form 4's showing buying on the recent dip - (scroll down to the filings)

http://www.sec.gov/cgi-bin/own-disp?action=getissuer&CIK=0001260221

Interesting, I dont know exactly how big Berkshire Partners is, but 100m is not peanuts.


Larry

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Re: TDG - Transdigm
« Reply #211 on: March 08, 2016, 12:22:31 PM »
It looks like Robert Small bought another ~100k shares for Berkshire entities for +20m at the beginning of March and this was when the stock price had recovered significantly.

Liberty

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Re: TDG - Transdigm
« Reply #212 on: May 10, 2016, 04:21:55 AM »
Fiscal Q2 is out:

http://www.transdigm.com/phoenix.zhtml?c=196053&p=irol-newsArticle&ID=2166825

Quote
Net sales of $796.8 million, up 28.7% from $619.0 million;
EBITDA As Defined of $368.6 million, up 28.0% from $288.1 million;
Net income of $138.6 million, up 25.0% from $110.9 million;
Earnings per share of $2.47, up 26.0% from $1.96;
Adjusted earnings per share of $2.86, up 35.5% from $2.11; and
Upward revision to EBITDA As Defined and earnings per share guidance.
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Larry

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Re: TDG - Transdigm
« Reply #213 on: May 10, 2016, 04:41:39 AM »
Good quarter. It seems that commercial aftermarket was up nicely (up 13%) for the quarter. They also repurchased quite a bit of shares. Helicopter and biz jet continue to shrink in OEM segment. Defense down but bookings running well a head of shipments.
« Last Edit: May 10, 2016, 04:45:25 AM by Larry »

Liberty

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Re: TDG - Transdigm
« Reply #214 on: May 24, 2016, 06:23:06 AM »
http://www.transdigm.com/phoenix.zhtml?c=196053&p=irol-newsArticle&ID=2171734

Quote
TransDigm Group Incorporated (NYSE: TDG) announced today a definitive agreement to purchase ILC Holdings, Inc., the parent company of Data Device Corporation ("DDC"), from Behrman Capital for a total purchase price of $1.0 billion in cash.  DDC is a leading supplier of databus and power supply products for the global military and commercial aerospace markets. [...] DDC revenues are anticipated to be over $200 million for the fiscal year ending December 2016 with approximately 75% coming from the defense market and the remainder primarily from the commercial transport market. Approximately 70% of revenue is derived from the aftermarket, with nearly all of the revenue from proprietary and sole source products.  Approximately 45% of revenue is derived from customers outside of the United States.
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Larry

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Re: TDG - Transdigm
« Reply #215 on: May 24, 2016, 06:45:30 AM »
Wow thats a pretty sizable one. Definitely one of the largest they've done. I was thinking they might do a special dividend if the pipeline is getting light but it is surely out of question now.

They bought Telair for $725m and that had $300m in revenue (with 20% EBITDA margins). However DDC is anticipated to have revenues of "over $200m" for 2016 but they are paying $1.0 billion. They must have higher margins (but how much?) than Telair but on the otherhand DDC is 70% military, just a bit puzzled.

Schwab711

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Re: TDG - Transdigm
« Reply #216 on: May 24, 2016, 07:08:33 AM »
https://www.glassdoor.com/Overview/Working-at-Data-Device-EI_IE300170.11,22.htm
http://listings.findthecompany.com/l/7988660/Data-Device-Corporation-in-Bohemia-NY
http://www.sandiegouniontribune.com/news/2016/apr/28/maxwell-satellite-parts-ddc-behrman/
http://www.kippsdesanto.com/2015/03/30/industry-week-in-review-march-27-2015/
http://www.aronsoncapitalpartners.com/sites/default/files/ACP%20Monthly%20MA%20Update%20-%20March%202014.pdf


It's interesting that sales were roughly $50m in the not-so-distant past. You can probably piece together DDC's recent M&A to figure out how successful the core business has been. This is basically a serial acquirer acquiring a serial acquirer. Initial reaction is this feels like an overpay. The high EV/Rev is concerning for reasons other than valuation?

Liberty

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Re: TDG - Transdigm
« Reply #217 on: May 24, 2016, 07:10:02 AM »
Wow thats a pretty sizable one. Definitely one of the largest they've done. I was thinking they might do a special dividend if the pipeline is getting light but it is surely out of question now.

They bought Telair for $725m and that had $300m in revenue (with 20% EBITDA margins). However DDC is anticipated to have revenues of "over $200m" for 2016 but they are paying $1.0 billion. They must have higher margins (but how much?) than Telair but on the otherhand DDC is 70% military, just a bit puzzled.

It'll be interesting to see how much they disclose about it during the next call. Things that are probably better than at Telair to account for the higher price: margins, growth potential, ratio of aftermarket, ratio or proprietary sole source.

Here's the info they initially gave on Telair:

Quote
Telair revenues are anticipated to be about $300 million with EBITDA margins approaching 20% for fiscal year ending May 2015. Over 80% of revenues are from the commercial aerospace market with the balance from the military aerospace market. Approximately 45% of revenues come from the aftermarket, primarily commercial transport and cargo aircraft. Approximately 95% of the revenues are from proprietary products with about 80% sold on a sole source basis.

As you can see, aftermarket is only 45% vs 70% for DDC, and sole source is 80% vs. "nearly all of the revenue from proprietary and sole source products" for DDC.
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Liberty

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Re: TDG - Transdigm
« Reply #218 on: May 24, 2016, 07:15:49 AM »
https://www.glassdoor.com/Overview/Working-at-Data-Device-EI_IE300170.11,22.htm
http://listings.findthecompany.com/l/7988660/Data-Device-Corporation-in-Bohemia-NY
http://www.sandiegouniontribune.com/news/2016/apr/28/maxwell-satellite-parts-ddc-behrman/
http://www.kippsdesanto.com/2015/03/30/industry-week-in-review-march-27-2015/
http://www.aronsoncapitalpartners.com/sites/default/files/ACP%20Monthly%20MA%20Update%20-%20March%202014.pdf


It's interesting that sales were roughly $50m in the not-so-distant past. You can probably piece together DDC's recent M&A to figure out how successful the core business has been. This is basically a serial acquirer acquiring a serial acquirer. Initial reaction is this feels like an overpay. The high EV/Rev is concerning for reasons other than valuation?

Maybe the revenue estimate for this private company by that website could be off or way outdated...

If you go to their website here and register, you can download a corporate overview brochure that has a lot of interesting stuff:

http://www.ddc-web.com/about.html

There's a timeline in the brochure and it only shows one acquisition in 2013, but lots and lots of product launches. Seems like mostly an organic grower, unless they didn't include other acquisitions...

Some of their platforms here:

« Last Edit: May 24, 2016, 07:20:46 AM by Liberty »
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Liberty

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Re: TDG - Transdigm
« Reply #219 on: May 24, 2016, 07:24:12 AM »
Here's the timeline:



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