0002000178false00020001782024-11-132024-11-13

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): November 13, 2024

 

 

Loar Holdings Inc.

(Exact name of Registrant as Specified in Its Charter)

 

 

Delaware

001-42030

82-2665180

(State or Other Jurisdiction
of Incorporation)

(Commission File Number)

(IRS Employer
Identification No.)

 

 

 

 

 

20 New King Street

 

White Plains, New York

 

10604

(Address of Principal Executive Offices)

 

(Zip Code)

 

Registrant’s Telephone Number, Including Area Code: 914 909-1311

 

Not applicable

(Former Name or Former Address, if Changed Since Last Report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:


Title of each class

 

Trading
Symbol(s)

 


Name of each exchange on which registered

Common stock, par value $0.01 per share

 

LOAR

 

New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

 


Item 2.02 Results of Operations and Financial Condition.

On November 13, 2024, Loar Holdings Inc. announced its financial results for the quarter ended September 30, 2024. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated by reference.

The information in Item 2.02 and in the accompanying Exhibit 99.1 is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall they be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, regardless of any general incorporation language in such filing, except as expressly set forth by specific reference in such a filing.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

Exhibit

Number

Description

99.1

Press release issued by Loar Holdings Inc. on November 13, 2024

104

Cover Page Interactive Data File (embedded within the Inline XBRL document)

 


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

 

 

 

 

 

 

Date:

 November 13, 2024

By:

/s/ Glenn D’Alessandro

 

 

 

Glenn D’Alessandro
Treasurer and Chief Financial Officer

 


Exhibit 99.1

img31715929_0.jpg

Loar Holdings Inc. Reports Q3 2024 Results, Upward Revision to 2024 and Initial 2025 Guidance

November 13, 2024

WHITE PLAINS, NY., November. 13, 2024 /ACCESSWIRE/ -- Loar Holdings Inc. (NYSE: LOAR) (the “Company,” “Loar,” “we,” “us” and “our”), reported record results for the third quarter of 2024.

Third Quarter 2024

Net sales of $103.5 million, up 25.0% compared to the prior year’s quarter.
Net income for Q3 2024 was $8.7 million, up $5.8 million compared to the prior year’s quarter.
Diluted earnings per share of $0.09.
Adjusted EBITDA of $38.1 million, up 31.8% compared to the prior year’s quarter.
Net income margin for the quarter improved to 8.4% from the prior year’s quarter of 3.4%.
Adjusted EBITDA Margin for the quarter was 36.8% compared to 34.9% for the prior year’s quarter.
Adjusted Earnings Per Share of $0.15.

Our third quarter results showcased our continued execution across all four of our strategic value drivers,” stated Dirkson Charles, Loar CEO and Executive Co-Chairman of the Board of Directors. “We again achieved record net sales and Adjusted EBITDA, driven by strong demand in both our commercial and defense end-markets.”

Loar reported net sales for the quarter of $103.5 million, an increase of $20.7 million or 25.0% over the prior year’s quarter. Organically(1), net sales increased 16.5% or $13.7 million, to $96.5 million.

Net income for the quarter increased $5.8 million to $8.7 million from a net income of $2.9 million for the comparable quarter a year ago. The increase in net income for the quarter was primarily driven by an increase in operating income and a decrease in interest expense.

Adjusted EBITDA for the quarter was $38.1 million, an increase of 31.8% or $9.2 million compared to the prior year’s quarter. Adjusted EBITDA as a percentage of net sales was 36.8%, compared to 34.9% in the third quarter of the prior year. The increase in Adjusted EBITDA as a percentage of net sales is primarily attributed to the execution of our strategic value drivers and operating leverage from higher sales levels.

 

 

 


 

Year-to-Date

Net sales for the first nine months ended September 30, 2024, were $292.4 million, an increase of $61.3 million or 26.5% over the comparable period of the prior year. Organically(1), net sales increased 14.9% or $34.5 million, to $265.6 million.

Net income year-to-date increased $22.6 million to $18.5 million from a net loss of $4.0 million for the comparable period a year ago.

Adjusted EBITDA for the nine months of 2024 was $106.2 million, an increase of 27.1% or $22.7 million over the comparable period a year ago. Adjusted EBITDA as a percentage of net sales was 36.3%, compared to 36.1% for the first nine months of the prior year.

Please see the attached Table 4 for a reconciliation of net income (loss) to EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin for the periods discussed in this press release.

(1)

Net organic sales represent net sales from our existing businesses for comparable periods and exclude net sales from acquisitions. We include net sales from new acquisitions in net organic sales from the 13th month after the acquisition on a comparative basis with the prior period.

 

Full Year 2024 Outlook – Revised Upward

“As a result of the successful closure of the acquisition of Applied Avionics and our strong business performance, we are revising our full year 2024 guidance,” stated Glenn D’Alessandro, Loar Chief Financial Officer and Treasurer. “This guidance therefore reflects higher interest and amortization costs as a result of the acquisition of Applied Avionics.”

Net sales – between $390 and $394 million, up from $374 million to $378 million
Net income – between $19.0 and $20.0 million, down from $28.4 million to $29.6 million
Adjusted EBITDA – between $141 and $143 million, up from $134 million to $136 million
Diluted Earnings per share – between $0.20 and $0.22
Net income margin – approximately 5%, down from approximately 8%
Adjusted Earnings Per Share – between $0.35 and $0.37, down from $0.44 to $0.46
Adjusted EBITDA Margin – remains at approximately 36%
Interest expense – approximately $54 million, up from $42 million
Market Assumptions – Full year outlook is based on the following assumptions:
o
Commercial, Business Jet, and General Aviation OEM growth of high double-digits, up from mid double-digits
o
Commercial, Business Jet, and General Aviation aftermarket growth of mid double-digits
o
Defense growth of high double-digits, up from mid double-digits

 

Full Year 2025 Outlook

“As we near the end of the year, the strength of our backlog gives us the visibility needed to look ahead to 2025. We believe our 2025 guidance outlines the strong demand we see across all the end-markets in which we participate,” stated Mr. Charles.

Net sales – between $470 million and $480 million
Net income - between $33.0 million and $37.0 million
Adjusted EBITDA - between $176 million and $180 million

 

Diluted Earnings per share – between $0.35 and $0.40
Net income margin – approximately 7%
Adjusted Earnings Per Share - between $0.45 and $0.50
Adjusted EBITDA Margin – approximately 37.5%
Interest expense – approximately $60 million
Market Assumptions – Full year outlook is based on the following assumptions:
o
Commercial, Business Jet, and General Aviation OEM growth of high single-digits
o
Commercial, Business Jet, and General Aviation aftermarket growth of high single-digits
o
Defense growth of high double-digits

 

Adjusted EBITDA, Adjusted Earnings Per Share and Adjusted EBITDA Margin are non-GAAP financial measures provided in these “Full Year 2024 Outlook – Revised Upward” and the “Full Year 2025 Outlook” sections on a forward-looking basis. The Company does not provide a reconciliation of such forward-looking measures to the most directly comparable financial measures calculated and presented in accordance with GAAP because to do so would be potentially misleading and not practical given the difficulty of projecting event-driven transactional and other non-core operating items in any future period. The magnitude of these items, however, may be significant.

Earnings Conference Call

A conference call for investors and security analysts is scheduled on Wednesday November 13, 2024, at 10:30a.m., Eastern Time. To participate in the call telephonically please dial +1 877-407-0670 / +1 215-268-9902. International participants can find a list of toll-free numbers here. A live audio webcast will also be available at the following link as well as through the Investor section of Loar Holdings website; https://ir.loargroup.com

The webcast will be archived and available for replay later in the day.

 

About Loar Holdings Inc.

Loar Holdings Inc. is a diversified manufacturer and supplier of niche aerospace and defense components that are essential for today’s aircraft and aerospace and defense systems. Loar has established relationships across leading aerospace and defense original equipment manufacturers and Tier Ones worldwide.

Non-GAAP Supplemental Information

We present in this press release certain financial information based on our EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, and Adjusted Earnings Per Share. References to “EBITDA” mean earnings before interest, taxes, depreciation and amortization, references to “Adjusted EBITDA” mean EBITDA plus, as applicable for each relevant period, certain adjustments as set forth in the reconciliations of net income (loss) to EBITDA and Adjusted EBITDA, and references to “Adjusted EBITDA Margin” refer to Adjusted EBITDA divided by net sales. References to Adjusted Earnings Per Share mean net income plus certain adjustments as set forth in the reconciliations below to derive Adjusted EBITDA from EBITDA, less the tax effect of these adjustments. EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, and Adjusted Earnings Per Share are not measurements of financial performance under U.S. GAAP. We present EBITDA, Adjusted EBITDA, and Adjusted EBITDA Margin because we believe they are useful indicators for evaluating operating performance. In addition, our management uses Adjusted EBITDA to review and assess the performance of the management team in connection with employee incentive programs and to


 

prepare its annual budget and financial projections. Moreover, our management uses Adjusted EBITDA of target companies to evaluate acquisitions.

Although we use EBITDA, Adjusted EBITDA, and Adjusted EBITDA Margin as measures to assess the performance of our business and for the other purposes set forth above, the use of non-GAAP financial measures as analytical tools has limitations, and you should not consider any of them in isolation, or as a substitute for analysis of our results of operations as reported in accordance with U.S. GAAP. Some of these limitations are:

EBITDA, Adjusted EBITDA, and Adjusted EBITDA Margin do not reflect the significant interest expense, or the cash requirements necessary to service interest payments on our indebtedness.
Although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future, and the cash requirements for such replacements are not reflected in EBITDA, Adjusted EBITDA, and Adjusted EBITDA Margin.
EBITDA, Adjusted EBITDA, and Adjusted EBITDA Margin exclude the cash expense we have incurred to integrate acquired businesses into our operations, which is a necessary element of certain of our acquisitions.
The omission of the substantial amortization expense associated with our intangible assets further limits the usefulness of EBITDA, Adjusted EBITDA, and Adjusted EBITDA Margin; and
EBITDA, Adjusted EBITDA, and Adjusted EBITDA Margin do not include the payment of taxes, which is a necessary element of our operations.

 

Because of these limitations, EBITDA, Adjusted EBITDA, and Adjusted EBITDA Margin should not be considered as measures of cash available to us to invest in the growth of our business. Management compensates for these limitations by not viewing EBITDA, Adjusted EBITDA, and Adjusted EBITDA Margin in isolation and specifically by using other U.S. GAAP measures, such as net sales and operating profit, to measure our operating performance. EBITDA, Adjusted EBITDA, and Adjusted EBITDA Margin are not measurements of financial performance under U.S. GAAP, and they should not be considered as alternatives to net income (loss) or cash flow from operations determined in accordance with U.S. GAAP. Our calculations of EBITDA, Adjusted EBITDA, and Adjusted EBITDA Margin may not be comparable to the calculations of similarly titled measures reported by other companies.

Future Looking Statements

This press release includes express or implied forward-looking statements. Forward-looking statements include all statements that are not historical facts including those that reflect our current views with respect to, among other things, our operations and financial performance. The words “anticipate,” “assume,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “future,” “will,” “seek,” “foreseeable,” the negative version of these words or similar terms and phrases may identify forward-looking statements in this press release, but the absence of these words does not mean that a statement is not forward-looking.

The forward-looking statements contained in this press release, including, but not limited to, the statements under the headings “Full Year 2024 Outlook – Revised Upward” and “Full Year 2025 Outlook,” are based on management’s current expectations and are not guarantees of future performance. Our expectations and beliefs are expressed in management’s good faith, and we believe there is a reasonable basis for them, however, the forward-looking statements are subject to various known and unknown risks,


 

uncertainties, assumptions, or changes in circumstances that are difficult to predict or quantify. Actual results may differ materially from these expectations due to changes in global, regional, or local economic, business, competitive, market, regulatory, and other factors, many of which are beyond our control. We believe that these factors include but are not limited to the following: the almost exclusive focus of our business on the aerospace and defense industry; our heavy reliance on certain customers for a significant portion of our sales; the fact that we have in the past consummated acquisitions and our intention to continue to pursue acquisitions, and that our business may be adversely affected if we cannot consummate acquisitions on satisfactory terms, or if we cannot effectively integrate acquired operations; and the other risks and uncertainties described under “Risk Factors” of the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2024 filed with the Securities and Exchange Commission (“SEC”) on August 13, 2024, as well as the Company’s Quarterly Report on Form 10-Q that will be filed following this earnings release, and other periodic reports filed by the Company from time to time with the SEC.

These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this press release. Should one or more of these risks or uncertainties materialize, or should any of our assumptions prove incorrect, our actual results may vary in material respects from those projected in the forward-looking statements. Any forward-looking statement made by us in this press release speaks only as of the date of this press release and is expressly qualified in its entirety by the cautionary statements included in this press release. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We may not actually achieve the plans, intentions or expectations disclosed in our forward-looking statements and you should not place undue reliance on our forward-looking statements. Our forward-looking statements do not reflect the potential impact of any future acquisitions, mergers, dispositions, joint ventures, investments, or other strategic transactions we may make. We undertake no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by any applicable law.

 

Contact

Ian McKillop

Loar Group Investor Relations

IR@loargroup.com


 

Loar Holdings Inc.

Table 1: - Condensed Consolidated Balance Sheets

(Unaudited, amounts in thousands except share amounts)

 

 

 

September 30, 2024

 

 

December 31, 2023

 

Assets

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

55,179

 

 

$

21,489

 

Accounts receivable, net

 

 

66,329

 

 

 

59,002

 

Inventories

 

 

97,887

 

 

 

77,962

 

Other current assets

 

 

12,152

 

 

 

11,830

 

Income taxes receivable

 

 

408

 

 

 

393

 

Total current assets

 

 

231,955

 

 

 

170,676

 

Property, plant and equipment

 

 

76,955

 

 

 

72,174

 

Finance lease assets

 

 

2,240

 

 

 

2,448

 

Operating lease assets

 

 

5,916

 

 

 

6,297

 

Other long-term assets

 

 

16,200

 

 

 

11,420

 

Intangible assets, net

 

 

447,123

 

 

 

316,542

 

Goodwill

 

 

691,658

 

 

 

470,888

 

Total assets

 

$

1,472,047

 

 

$

1,050,445

 

 

 

 

 

 

 

 

Liabilities and equity

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Accounts payable

 

$

16,224

 

 

$

12,876

 

Current portion of long-term debt

 

 

6,028

 

 

 

6,896

 

Current portion of finance lease liabilities

 

 

221

 

 

 

190

 

Current portion of operating lease liabilities

 

 

612

 

 

 

609

 

Income taxes payable

 

 

6,265

 

 

 

6,133

 

Accrued expenses and other current liabilities

 

 

29,334

 

 

 

24,776

 

Total current liabilities

 

 

58,684

 

 

 

51,480

 

Deferred income taxes

 

 

36,820

 

 

 

36,785

 

Long-term debt, net

 

 

596,074

 

 

 

528,582

 

Finance lease liabilities

 

 

3,234

 

 

 

3,401

 

Operating lease liabilities

 

 

5,464

 

 

 

5,802

 

Environmental liabilities

 

 

-

 

 

 

1,145

 

Other long-term liabilities

 

 

1,957

 

 

 

5,109

 

Total liabilities

 

 

702,233

 

 

 

632,304

 

 

 

 

 

 

 

 

Commitments and contingencies

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity:

 

 

 

 

 

 

Preferred stock, $0.01 par value, 1,000,000 shares authorized, and no shares issued or outstanding

 

 

 

 

 

 

Common stock, $0.01 par value, 485,000,000 shares authorized; 89,703,571 issued and outstanding at September 30, 2024

 

 

897

 

 

 

 

Additional paid-in capital

 

 

793,167

 

 

 

 

Accumulated deficit

 

 

(24,245

)

 

 

 

Accumulated other comprehensive loss

 

 

(5

)

 

 

 

Member's equity

 

 

 

 

 

418,141

 

Total equity

 

 

769,814

 

 

 

418,141

 

Total liabilities and equity

 

$

1,472,047

 

 

$

1,050,445

 

 


 

Loar Holdings Inc.

Table – 2: Condensed Consolidated Statements of Operations

(Unaudited, amounts in thousands except per common share and per common unit amounts)

 

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Net sales

 

$

103,519

 

 

$

82,807

 

 

$

292,378

 

 

$

231,042

 

Cost of sales

 

 

50,615

 

 

 

42,176

 

 

 

147,515

 

 

 

116,904

 

Gross profit

 

 

52,904

 

 

 

40,631

 

 

 

144,863

 

 

 

114,138

 

Selling, general and administrative expenses

 

 

30,186

 

 

 

21,863

 

 

 

80,362

 

 

 

60,210

 

Transaction expenses

 

 

1,444

 

 

 

2,022

 

 

 

2,549

 

 

 

2,626

 

Other income, net

 

 

1,574

 

 

 

356

 

 

 

4,441

 

 

 

483

 

Operating income

 

 

22,848

 

 

 

17,102

 

 

 

66,393

 

 

 

51,785

 

Interest expense, net

 

 

9,962

 

 

 

17,155

 

 

 

38,332

 

 

 

49,125

 

Refinancing costs

 

 

-

 

 

 

-

 

 

 

1,645

 

 

 

 

Income (loss) before income taxes

 

 

12,886

 

 

 

(53

)

 

 

26,416

 

 

 

2,660

 

Income tax (provision) benefit

 

 

(4,230

)

 

 

2,907

 

 

 

(7,870

)

 

 

(6,702

)

Net income (loss)

 

$

8,656

 

 

$

2,854

 

 

$

18,546

 

 

$

(4,042

)

Net income per common share:

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.10

 

 

n/a

 

 

$

0.21

 

 

n/a

 

Diluted

 

$

0.09

 

 

n/a

 

 

$

0.20

 

 

n/a

 

Weighted average common shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

89,704

 

 

n/a

 

 

 

88,722

 

 

n/a

 

Diluted

 

 

91,931

 

 

n/a

 

 

 

90,755

 

 

n/a

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) per common unit

 

n/a

 

 

$

14,000.14

 

 

n/a

 

 

$

(19,799.55

)

Weighted average common units outstanding - basic and diluted

 

n/a

 

 

 

204

 

 

n/a

 

 

 

204

 

 

 

 

 

 

 

 

 

 

 

 

 


 

Loar Holdings Inc.

Table 3: - Condensed Consolidated Statements of Cash Flows

(Unaudited, amounts in thousands)

 

 

 

Nine Months Ended September 30,

 

 

 

2024

 

 

2023

 

Operating Activities

 

 

 

 

 

 

Net income (loss)

 

$

18,546

 

 

$

(4,042

)

Adjustments to reconcile net income (loss) to net cash provided by
   operating activities:

 

 

 

 

 

 

Depreciation

 

 

8,183

 

 

 

7,297

 

Amortization of intangibles and other long-term assets

 

 

22,249

 

 

 

20,869

 

Amortization of debt issuance costs

 

 

931

 

 

 

2,132

 

Amortization of inventory step-up

 

 

276

 

 

 

201

 

Stock-based compensation

 

 

7,568

 

 

 

278

 

Deferred income taxes

 

 

(141

)

 

 

622

 

Non-cash lease expense

 

 

438

 

 

 

668

 

Refinancing costs

 

 

1,645

 

 

 

 

Other income, net

 

 

(2,856

)

 

 

 

Changes in assets and liabilities:

 

 

 

 

 

 

Accounts receivable

 

 

(4,331

)

 

 

(11,462

)

Inventories

 

 

(13,694

)

 

 

(12,643

)

Other assets

 

 

(4,455

)

 

 

(3,565

)

Accounts payable

 

 

2,825

 

 

 

3,531

 

Other liabilities

 

 

(1,404

)

 

 

(2,384

)

Environmental liabilities

 

 

(1,145

)

 

 

(46

)

Operating lease liabilities

 

 

(392

)

 

 

(656

)

Net cash provided by operating activities

 

 

34,243

 

 

 

800

 

 

 

 

 

 

 

 

Investing Activities

 

 

 

 

 

 

Capital expenditures

 

 

(6,084

)

 

 

(7,824

)

Payment for acquisitions, net of cash acquired

 

 

(383,222

)

 

 

(60,289

)

Net cash used in investing activities

 

 

(389,306

)

 

 

(68,113

)

 

 

 

 

 

 

 

Financing Activities

 

 

 

 

 

 

Net proceeds from issuance of common stock

 

 

325,408

 

 

 

 

Payments of long-term debt

 

 

(287,881

)

 

 

(4,333

)

Proceeds from issuance of long-term debt

 

 

360,000

 

 

 

53,000

 

Financing costs and other, net

 

 

(8,876

)

 

 

(1,060

)

Payments of finance lease liabilities

 

 

(137

)

 

 

(95

)

Net cash provided by financing activities

 

 

388,514

 

 

 

47,512

 

 

 

 

 

 

 

 

Effect of translation adjustments on cash and cash equivalents

 

 

239

 

 

 

(137

)

Net increase (decrease) in cash and cash equivalents

 

 

33,690

 

 

 

(19,938

)

 

 

 

 

 

 

 

Cash and cash equivalents, beginning of period

 

 

21,489

 

 

 

35,497

 

Cash and cash equivalents, end of period

 

$

55,179

 

 

$

15,559

 

 

 

 

 

 

 

 

Supplemental information

 

 

 

 

 

 

Interest paid during the period, net of capitalized amounts

 

$

37,495

 

 

$

47,246

 

Income taxes paid during the period, net

 

$

7,925

 

 

$

4,942

 

 


 

Loar Holdings Inc.

Table – 4: Reconciliation of Net income (Loss) to EBITDA and Adjusted EBITDA

(Unaudited, amounts in thousands)

 

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Net income (loss)

 

$

8,656

 

 

$

2,854

 

 

$

18,546

 

 

$

(4,042

)

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

 

9,962

 

 

 

17,155

 

 

 

38,332

 

 

 

49,125

 

Refinancing costs

 

 

 

 

 

 

 

 

1,645

 

 

 

 

Income tax provision (benefit)

 

 

4,230

 

 

 

(2,907

)

 

 

7,870

 

 

 

6,702

 

Operating income

 

 

22,848

 

 

 

17,102

 

 

 

66,393

 

 

 

51,785

 

Depreciation

 

 

2,775

 

 

 

2,314

 

 

 

8,183

 

 

 

7,297

 

Amortization

 

 

7,945

 

 

 

7,101

 

 

 

22,249

 

 

 

20,869

 

EBITDA

 

 

33,568

 

 

 

26,517

 

 

 

96,825

 

 

 

79,951

 

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

Recognition of inventory step-ups (1)

 

276

 

 

 

201

 

 

276

 

 

 

201

 

Other income, net (2)

 

 

(1,574

)

 

 

(356

)

 

 

(4,441

)

 

 

(483

)

Transaction expenses (3)

 

 

1,444

 

 

 

2,023

 

 

 

2,549

 

 

 

2,627

 

Stock-based compensation (4)

 

 

3,094

 

 

 

92

 

 

 

7,568

 

 

 

278

 

Acquisition and facility integration costs (5)

 

 

1,288

 

 

 

432

 

 

 

3,381

 

 

 

917

 

Adjusted EBITDA

 

$

38,096

 

 

$

28,909

 

 

$

106,158

 

 

$

83,491

 

Net sales

 

$

103,519

 

 

$

82,807

 

 

$

292,378

 

 

$

231,042

 

Net income (loss) margin

 

 

8.4

%

 

 

3.4

%

 

 

6.3

%

 

 

(1.7

)%

Adjusted EBITDA Margin

 

 

36.8

%

 

 

34.9

%

 

 

36.3

%

 

 

36.1

%

 

(1)
Represents accounting adjustments to inventory associated with acquisitions of businesses that were charged to cost of sales when inventory was sold.
(2)
Represents the reduction in the estimated contingent purchase price for the CAV Group Limited acquisition in 2024 and a grant from the U.S. Department of Transportation under the Aviation Manufacturing Jobs Protection Program in 2023.
(3)
Represents third party transaction-related costs for acquisitions comprising deal fees, legal, financial and tax due diligence expenses, and valuation costs that are required to be expensed as incurred.
(4)
Represents the non-cash compensation expense recognized by the Company for equity awards.
(5)
Represents costs incurred to integrate acquired businesses and product lines into our operations, facility relocation costs and other acquisition-related costs.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

Loar Holdings Inc.

Table – 5: Sales by End-Market

(Unaudited, amounts in thousands)

 

 

 

Three Months Ended September 30,

 

 

 

2024

 

 

2023

 

 

 

OEM
Net Sales

 

 

Aftermarket
Net Sales

 

 

Total
Net Sales

 

 

OEM
Net Sales

 

 

Aftermarket
Net Sales

 

 

Total
Net Sales

 

Commercial Aerospace

 

$

15,824

 

 

$

29,058

 

 

$

44,882

 

 

$

14,574

 

 

$

23,886

 

 

$

38,460

 

Business Jet and General Aviation

 

 

19,911

 

 

 

10,121

 

 

 

30,032

 

 

 

11,701

 

 

 

7,729

 

 

 

19,430

 

Total Commercial

 

 

35,735

 

 

 

39,179

 

 

 

74,914

 

 

 

26,275

 

 

 

31,615

 

 

 

57,890

 

Defense

 

 

10,152

 

 

 

11,810

 

 

 

21,962

 

 

 

8,004

 

 

 

7,218

 

 

 

15,222

 

Other

 

 

2,976

 

 

 

3,667

 

 

 

6,643

 

 

 

5,667

 

 

 

4,028

 

 

 

9,695

 

Total

 

$

48,863

 

 

$

54,656

 

 

$

103,519

 

 

$

39,946

 

 

$

42,861

 

 

$

82,807

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended September 30,

 

 

 

2024

 

 

2023

 

 

 

OEM
Net Sales

 

 

Aftermarket
Net Sales

 

 

Total
Net Sales

 

 

OEM
Net Sales

 

 

Aftermarket
Net Sales

 

 

Total
Net Sales

 

Commercial Aerospace

 

$

46,316

 

 

$

81,101

 

 

$

127,417

 

 

$

40,487

 

 

$

67,016

 

 

$

107,503

 

Business Jet and General Aviation

 

 

53,556

 

 

 

29,253

 

 

 

82,809

 

 

 

31,391

 

 

 

20,516

 

 

 

51,907

 

Total Commercial

 

 

99,872

 

 

 

110,354

 

 

 

210,226

 

 

 

71,878

 

 

 

87,532

 

 

 

159,410

 

Defense

 

 

26,793

 

 

 

32,681

 

 

 

59,474

 

 

 

22,546

 

 

 

21,056

 

 

 

43,602

 

Other

 

 

10,727

 

 

 

11,951

 

 

 

22,678

 

 

 

15,323

 

 

 

12,707

 

 

 

28,030

 

Total

 

$

137,392

 

 

$

154,986

 

 

$

292,378

 

 

$

109,747

 

 

$

121,295

 

 

$

231,042

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

Loar Holdings Inc.

Table – 6: Reconciliation of Earnings Per Share to Adjusted Earnings Per Share

(Unaudited, amounts in thousands except per share amounts)

 

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

 

 

2024

 

 

 

2024

 

Reported earnings per share

 

 

 

 

 

 

 

Net income

 

$

8,656

 

 

 

$

18,546

 

Denominator for basic and diluted earnings per common share:

 

 

 

 

 

 

 

Weighted-average common shares outstanding - basic

 

 

89,704

 

 

 

 

88,722

 

Effect of dilutive common shares

 

 

2,227

 

 

 

 

2,033

 

Weighted average common shares outstanding—diluted

 

 

91,931

 

 

 

 

90,755

 

Net income per common shares—basic

 

$

0.10

 

 

 

$

0.21

 

Net income per common shares—diluted

 

$

0.09

 

 

 

$

0.20

 

 

 

 

 

 

 

 

 

Adjusted earnings per share

 

 

 

 

 

 

 

Net income

 

$

8,656

 

 

 

$

18,546

 

Refinancing costs

 

 

-

 

 

 

 

1,645

 

Gross adjustments to EBITDA

 

 

4,528

 

 

 

 

9,333

 

Tax adjustment (1)

 

 

235

 

 

 

 

(880

)

Adjusted net income

 

$

13,419

 

 

 

$

28,644

 

Adjusted diluted earnings per share

 

$

0.15

 

 

 

$

0.32

 

 

 

 

 

 

 

 

 

Diluted earnings per share to adjusted earnings per share

 

 

 

 

 

 

 

Net income per common shares—diluted

 

$

0.09

 

 

 

$

0.20

 

Adjustments to diluted earnings per share:

 

 

 

 

 

 

 

Refinancing costs

 

 

-

 

 

 

 

0.02

 

Other income

 

 

(0.02

)

 

 

 

(0.05

)

Transaction expenses

 

 

0.02

 

 

 

 

0.03

 

Stock-based compensation

 

 

0.04

 

 

 

 

0.08

 

Acquisition and facility integration costs

 

 

0.02

 

 

 

 

0.05

 

Tax adjustment (1)

 

 

(0.00

)

 

 

 

(0.01

)

Adjusted earnings per share

 

$

0.15

 

 

 

$

0.32

 

 

(1)
The tax adjustment represents the tax effect of the adjustments at the applicable effective tax rate. To determine the applicable effective tax rate, refinancing costs, other income, transaction expenses, stock-based compensation, and acquisition and facility integration costs are excluded from adjusted net income and therefore we have excluded the impact those items have on the effective tax rate.

v3.24.3
Document And Entity Information
Nov. 13, 2024
Cover [Abstract]  
Document Type 8-K
Amendment Flag false
Document Period End Date Nov. 13, 2024
Entity Registrant Name Loar Holdings Inc.
Entity Central Index Key 0002000178
Entity Emerging Growth Company true
Entity File Number 001-42030
Entity Incorporation, State or Country Code DE
Entity Tax Identification Number 82-2665180
Entity Address, Address Line One 20 New King Street
Entity Address, City or Town White Plains
Entity Address, State or Province NY
Entity Address, Postal Zip Code 10604
City Area Code 914
Local Phone Number 909-1311
Entity Information, Former Legal or Registered Name Not applicable
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Entity Ex Transition Period false
Title of 12(b) Security Common stock, par value $0.01 per share
Trading Symbol LOAR
Security Exchange Name NYSE

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