TransDigm Group Incorporated (TDG)’s Q1 2015 Earnings Conference Call Transcript

Robert Stallard – Royal Bank of Canada

Okay. That’s great. Thanks so much.

Operator

Thank you. The next question comes from the line of Gautam Khanna from Cowen. Go ahead.

Gautam Khanna – Cowen and Co.

Yes. Thank you. Good morning.

Nick Howley – Chairman of the Board, Chief Executive Officer

Good morning.

Gautam Khanna – Cowen and Co.

I just wanted to ask if you could elaborate on the defense bookings comment. You mentioned the two parachute orders & what was the trend if you [Inaudible]. Was it a book bill of around any comment there?

Nick Howley – Chairman of the Board, Chief Executive Officer

I don’t remember the book. There is a couple of things, If you want to normalize it if you go into the previous first quarter, we had some of those big {[Inaudible] shipments if you remember them. So you almost have to normalize them both out & I don’t think if you normalize both of those, I don’t think the organic growth is that much different whether you put it in or take it out on sales on revenues. On the bookings the big difference is if you may or may not recall the first quarter of last year things looked pretty ugly in the parashoote business but that has really started the book up. We have got some quite big orders dropped in, we have some more just cooking away, so that business is whereas we were a bit concerned six months into it we are starting to feel significantly better now about it. I hope that answers.

Gautam Khanna – Cowen and Co.

Okay.

Nick Howley – Chairman of the Board, Chief Executive Officer

So I think when you normalize the revenues the answer does not change a whole lot. If you normalize it for things in both quarters.

Gautam Khanna – Cowen and Co.

Okay & could you give us you mentioned this pipeline of opportunities being active in the M&A pipeline. Can u give us some sense for what kind of things you were seeing international versus domestic whether you are seeing more in defense or commercial & relative sizes? Any way to kinda of?

Nick Howley – Chairman of the Board, Chief Executive Officer

I would say the sizes are roughly comparable to what we have seen before though I have to say we have seen a few of little more sizable. I don’t mean in the $3 billion, $4 billion range but a little more sizable. If you pull those couple out the rest are more in the normal kind of things we see. We clearly continue to see more European activity than we have in the past & I would say most of what we are looking at not all but most is commercial rather military.

Gautam Khanna – Cowen and Co.

Okay & are most of these privates?

Nick Howley – Chairman of the Board, Chief Executive Officer

Range the usual range of suspects. Private, strategic and PE.

Gautam Khanna – Cowen and Co.

Okay. Thanks a lot. I will get back in the qeue.