AVIATION SALES COMPANY 1996 REVENUES INCREASE 42%.MIAMI--(BUSINESS WIRE)--Feb. 12, 1997-- PRO FORMA EARNINGS pro forma earnings Income not necessarily calculated in accordance with generally accepted accounting principles. For example, a company might report pro forma earnings that exclude depreciation expense and nonrecurring expenses such as restructuring costs. PER SHARE INCREASE 28% Aviation Sales Company (NYSE NYSE See: New York Stock Exchange :AVS (Audio Video Coding Standard) A video compression technique developed by Chinese companies and supported by the Chinese government. Expected to provide better compression than MPEG-2, AVS was created to avoid paying royalties to the MPEG licensors, which are outside ) today reported results for the fourth quarter and fiscal year ended December December: see month. 31, 1996. For the fiscal year ended December 31, 1996, operating revenues operating revenue Revenue from any regular source. Revenue from sales is adjusted for discounts and returns when calculating operating revenue. Compare other revenue. rose 42.3% to $161.9 million in fiscal 1996 compared with $113.8 million in 1995. Pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma net income before extraordinary charges for 1996 was $10.3 million or $1.48 per share compared with $6.3 million, or $1.16 per share in the corresponding period of 1995. Operating revenues in the fourth quarter rose 76.3% to $49.0 million, compared with $27.8 million for the same period last year. Pro forma net income before extraordinary charges for the fourth quarter of 1996 was $3.2 million or $0.37 per share compared with $853,000 or $0.16 per share in the same period of 1995. "1996 was a significant year for Aviation Sales as we established ourselves as a profitable public entity poised for sustainable future growth," said Dale S. Baker, chairman and chief executive officer. "We successfully expanded our product offerings in our core redistribution re·dis·tri·bu·tion n. 1. The act or process of redistributing. 2. An economic theory or policy that advocates reducing inequalities in the distribution of wealth. market with the acquisition of AvEng Trading Partners, Inc. and strengthened our involvement in the OEM (Original Equipment Manufacturer) The rebranding of equipment and selling it. The term initially referred to the company that made the products (the "original" manufacturer), but eventually became widely used to refer to the organization that buys the products and distribution market with the acquisition of the assets of the aircraft distribution division of Dixie Dixie popular name for Southern states in U.S. and for song. [Am. Hist.: EB, III: 587] See : Southern States Bearings, Inc. As we move into 1997, our strong working capital position should enable us to further execute our growth strategy. " Gross profit increased by 49.5% to $14.5 million for the quarter ended December 31, 1996, and 21.4% to $51.6 million for the 1996 fiscal year compared with the corresponding periods of 1995. Gross margin declined to 31.9% for fiscal year 1996 from 37.3% for the same period in 1995, due to a change in the mix of inventories sold during the year. Gross profits in 1995 were positively impacted by the bulk inventory acquisition of the Aviation Sales business unit from Aviall Services, Inc. During 1996, the Company did not complete a comparable bulk inventory acquisition and accordingly, gross profits were not impacted in a similar manner. The Company's operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. increased $2.3 million from the fourth quarter of 1995 to the fourth quarter of 1996. Operating expenses as a percentage of operating revenues declined from 22.7% of revenues for the fourth quarter of 1995 to 17.6% for the same period of 1996. Operating expenses increased $5.4 million from fiscal year 1995 to 1996. Operating expenses as a percentage of operating revenues declined from 21.0% of revenues for fiscal year 1995 to 18.1% for 1996. Operating expenses were $23.9 million for fiscal year 1995 compared with $29.3 million for fiscal year 1996. The increase in absolute dollars from 1995 to 1996 is due to higher selling and operating expenses as a result of higher sales levels achieved during fiscal year 1996 versus those in fiscal year 1995. Lower operating expenses as a percentage of operating revenues reflect the continuing benefits of economies of scale and operating efficiencies. During 1996, Aviation Sales recorded a one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. income tax benefit of $4.9 million associated with the formation of the Company. Additionally, as a result of the completion of the initial public offering and the use of the proceeds therefrom there·from adv. From that place, time, or thing. Adv. 1. therefrom - from that circumstance or source; "atomic formulas and all compounds thence constructible"- W.V. for the repayment of indebtedness INDEBTEDNESS. The state, of being in debt, without regard to the ability or inability of the party to pay the same. See 1 Story, Eq. 343; 2 Hill. Ab. 421. 2. due to certain financial institutions, the Company recorded an extraordinary adjustment net of taxes during the third quarter of 1996 of $1.9 million to write off deferred financing costs associated with the debt that was repaid. The results for the fourth quarter as well as for the year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. period reflect the increased number of shares outstanding as a result of the Company's 1996 initial public offering completed in the third quarter of 1996 as well as the 400,000 shares issued in connection with the acquisition of AvEng Trading Partners. Pro forma results are stated as if the Company had been taxed as a C-corporation in comparable earlier periods. Aviation Sales Company is a recognized worldwide leader in the aircraft spare parts Spare parts, also referred to as Service Parts is a term used to indicate extra parts available and in proximity to the mechanical item, such as a automobile, boat, engine, for which they might be used. Spare parts are also called “spares. redistribution market, selling parts for Boeing (language) BOEING - An early system on the IBM 1130. [Listed in CACM 2(5):16, May 1959]. , McDonnell Douglas McDonnell Douglas was a major American aerospace manufacturer and defense contractor, producing a number of famous commercial and military aircraft. It merged with Boeing in 1997 to form The Boeing Company. , Lockheed “Lockheed” redirects here. For the character in Marvel Comics, see Lockheed (comics). For the current company, see . Lockheed Corporation (originally Loughead Aircraft Manufacturing Company) was an American aerospace company originally founded in 1912 and Airbus aircraft, and Pratt & Whitney, General Electric and Rolls Royce Rolls Royce the millionaire’s vehicle. [Trademarks: Brewer Dictionary, 928] See : Luxury jet engines. Offering inventory management services, including purchasing services, repair management, warehouse management, aircraft disassembly dis·as·sem·ble v. dis·as·sem·bled, dis·as·sem·bling, dis·as·sem·bles v.tr. To take apart: disassemble a toaster. v.intr. 1. services and consignment The delivery of goods to a carrier to be shipped to a designated person for sale. A Bailment of goods for sale. A consignment is an arrangement resulting from a contract in which one person, the consignor, either ships or entrusts goods to another, the and leasing of aircraft spare parts, Aviation Sales Company is a leader in Total Inventory Solutions designed to meet the diverse needs of its customers. -0-
Financial Data
Condensed Statements of Income
Aviation Sales Co. and Subsidiaries
Periods Ended December 31
Three Months Twelve Months
Millions, except as noted 1996 1995 1996 1995
Operating Revenues $ 49.0 $ 27.8 $ 161.9 $ 113.8
Cost of Sales 34.5 18.1 110.3 71.3
Gross Profit 14.5 9.7 51.6 42.5
Gross Margin 29.6% 34.9% 31.9% 37.3%
Operating Expenses
Operating, Selling
& Administration 7.8 5.9 27.0 22.4
Depreciation & Amortization 0.8 0.4 2.3 1.5
Total Operating Expenses 8.6 6.3 29.3 23.9
17.6% 22.7% 18.1% 21.0%
Income from Operations 5.9 3.4 22.3 18.6
Interest Expense and Other 0.7 2.0 5.3 8.3
Income Tax (Benefit) Expense 2.1 0.0 (0.4) 0.0
Income Before Extraordinary Item 3.1 1.4 17.4 10.3
Extraordinary Item, Net of Taxes 0.0 0.0 1.9 0.0
Net Income $ 3.1 $ 1.4 $ 15.5 $ 10.3
Earnings Per Share:
Income Before
Extraordinary Item $ 0.36 $ 2.49
Extraordinary Item,
Net of Taxes 0.00 0.27
Net Income $ 0.36 $ 2.22
Pro Forma Earnings Per Share: (1)
Pro Forma Income Before
Extraordinary Item $ 0.37 $ 0.16 $ 1.48 $ 1.16
Extraordinary Item,
Net of Taxes 0.00 0.00 0.27 0.00
Pro Forma Net Income $ 0.37 $ 0.16 $ 1.21 $ 1.16
Average Common
Shares Outstanding 8.57 5.40 6.96 5.40
Common Stock Prices, per share
High 20 3/4 - 21 1/2 -
Low 18 3/4 - 18 -
Quarterly Close 20 1/2 - 20 1/12 -
(1) Pro forma adjustments as if the company had been taxed as a
C-corporation since the beginning of the period.
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Condensed Balance Sheets
Aviation Sales Company and Subsidiaries
December 31 December 31,
Millions, except as noted 1996 1995
Assets
Current Assets
Cash Equivalents $1.3 $0.3
Accounts Receivable, net 37.1 23.8
Inventory 73.0 48.9
Prepaid Expenses 4.0 0.1
Deferred Income Taxes 2.0 -
Total Current Assets 117.4 73.1
Spare Parts on Lease, net 18.0 11.7
Property and Equipment, net 2.3 1.9
Amounts due from Affiliates 2.9 3.0
Deferred Income Taxes 3.4 -
Other Assets 1.2 3.8
Total Assets $145.2 $93.5
Liabilities and Stockholders' Equity
Current Liabilities
Accounts Payable & Accrued Expenses $24.2 $16.4
Current Maturities - Bank Debt 24.1 10.0
Total Current Liabilities 48.3 26.4
Deferred Revenue 0.9 0.9
Notes Payable - Long Term 14.9 52.0
Partners' Capital - 14.1
Stockholders' Equity 81.1 0.1
Total Liabilities & Capital/Equity $145.2 $93.5
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Pro Forma Income Taxes
Aviation Sales Company and Subsidiaries
Periods Ended December 31,
Three Months Twelve Months
1996 1995 1996 1995
Historical income before income
taxes and extraordinary
item $5,183,960 $1,398,538 $16,933,815 $10,285,723
Pro forma provision for
income taxes (2,021,744) (545,430) (6,604,188) (4,011,432)
Pro forma income before
extraordinary item 3,162,216 853,108 10,329,627 6,274,291
Extraordinary item, net of
income taxes - - 1,862,140 -
Pro forma net income $3,162,216 $853,108 $8,467,487 $6,274,291
-0-
CONTACT: AVIATION SALES COMPANY Dale S. Baker Chairman and Chief Executive Officer (305) 599-6619 Joseph E. Civiletto Chief Financial Officer (305) 599-6693 or Morgen-Walke Associates June June: see month. Filingeri/Jonathan Schaffer Media contact: Stan STAN Stanchion STAN Stärke- und Ausrüstungsnachweis (German) Stan Standard Man (human patient simulator) STAN SEMCIP Technical Assistance Network STAN System Trace Audit Number STAN Star Trek Area Network Froelich (212) 850-5600 or http://www.avsales.com http://www.businesswire.com/coo/avs.htm |
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