American Aircarriers Support Reports Record Third Quarter Revenues and Earnings.FORT MILL, S.C.--(BUSINESS WIRE)--Nov. 3, 1999-- American American, river, 30 mi (48 km) long, rising in N central Calif. in the Sierra Nevada and flowing SW into the Sacramento River at Sacramento. The discovery of gold at Sutter's Mill (see Sutter, John Augustus) along the river in 1848 led to the California gold rush of Aircarriers Support, Inc. (Nasdaq: AIRS) today announced record revenues and earnings for the third quarter and nine months ended September September: see month. 30, 1999. Net revenues increased 141.3% to $17.7 million compared to $7.3 million in the third quarter 1998. Net income rose 25.2% to $1.7 million, or $0.24 a share on 7.3 million diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. shares, compared with $1.3 million, or $0.22 a share on 6.3 million diluted shares in the comparative 1998 quarter. Gross profit for the quarter increased 120.3% to $6.6 million from $3.0 million during the 1998 third quarter. Gross profit was 37.0% of sales compared with 40.6% for the same quarter a year ago. The decline in gross profit margin Gross profit margin Gross profit divided by sales, which is equal to each sales dollar left over after paying for the cost of goods sold. gross profit margin A measure calculated by dividing gross profit by net sales. was expected due to the change in product mix resulting from the inclusion of the Maintenance, Repair and Overhaul Maintenance, Repair and Overhaul or MRO is a multi-billion dollar industry which works on international authorization rules to deliver a safe airline operation and to assure reliability and availability of customer fleets. ("MRO MRO In currencies, this is the abbreviation for the Mauritanian Ouguiya. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. ") operations that were acquired during the past 12 months. For the nine months, net revenues rose 204.6% to $47.0 million from $15.4 million in the same period of the previous year. Net income increased 54.9% to $4.5 million, or $0.62 or share, compared with 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 of $2.9 million, or $0.58 a share, during the 1998 nine month period. There were 7.3 million diluted shares during the current nine month period compared to 5.0 million pro forma diluted shares in the same period in 1998. Gross profit for the nine month period increased 153.2% to $17.0 million, compared with $6.7 million for the same period the previous year. Gross profit as a percentage of sales was 36.2%, compared with 43.0% for the 1998 nine month period. As mentioned previously, this decline was anticipated. "The third quarter of 1999 marks the completion of our first full year as a public company," Karl Karl. For German and Swedish kings thus named, use Charles. Brown, the company's chairman and chief executive officer stated, "During the past year we have achieved results that met or exceeded all our expectations." Joseph Civiletto, president and chief operating officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. stated, "We continue to see strong growth in our operations with the third quarter 1999 revenues of $17.7 million reflecting a 12% increase over the second quarter 1999, and operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. increasing 14.5% from the second quarter to the third quarter. The increase in operating income also reflects the successful leveraging of general and administrative costs administrative costs, n.pl the overhead expenses incurred in the operation of a dental benefits program, excluding costs of dental services provided. against growth in revenues." The company invites you to participate in a conference call to review earnings and the third quarter performance. The call will be held at 10:00 a.m. EST EST electroshock therapy. EST abbr. electroshock therapy on Wednesday Wednesday: see week. , November November: see month. 3, 1999. It will be hosted by Karl Brown, Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , Joe Civiletto, President and COO (Cell Of Origin) See mobile positioning. , and Elaine Elaine, in Arthurian legend: see Launcelot, Sir. Elaine disguises herself as Guinevere in order to seduce Lancelot. [Br. Lit.: Malory Le Mort d’Arthur] See : Disguise Elaine Rudisill, CFO See Chief Financial Officer. . The number for the conference call is 1-800-949-2486. American Aircarriers Support, founded in 1985, provides integrated aviation maintenance, repair and overhaul services including 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. for commercial airlines, cargo operators and maintenance and repair facilities worldwide. The company offers engine and aircraft management services, as well as maintenance, repair and overhaul of flight controls, landing gear systems and jet engines at its FAA licensed facilities. This press release may contain forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. . Forward-looking statements usually contain the words "believe", "estimate", "project", "expect" or similar expressions. These statements are made pursuant to the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. These forward-looking statements are based on many assumptions and factors, and although the company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. Such forward-looking statements involve risks and uncertainties and actual results could differ from those described. Future results of operations may vary due to numerous factors, many of which are beyond the control of the company. The factors are described in the company's filing with the Securities and Exchange Commission and incorporated by reference herein.
American Aircarriers Support, Incorporated and Subsidiaries
Consolidated Balance Sheets--September 30, 1999 and December 31, 1998
(in thousands)
September 30, December 31,
Assets 1999 1998
------------- ------------
(Unaudited)
Current assets:
Cash and cash equivalents $ 294 $ 2,150
Receivables - Trade and other,
net of allowances of $295,592 at
September 30, 1999, and $255,592 4,017
at December 31, 1998, respectively 9,565
Unbilled accounts receivable 1,666 610
Inventories 47,886 22,220
Prepaid expenses 595 181
------------- -----------
Total current assets 60,006 29,178
Property and equipment, net 8,799 2,263
Assets held for lease 6,055 1,725
Goodwill and acquisition costs,
net of amortization 10,230 10,446
Deferred Financing Fees 1,677 -
Other assets 1,190 566
------------ -----------
$ 87,957 $ 44,178
============ ===========
Liabilities and Stockholders' Equity
Current liabilities:
Revolving line of credit $ 45,886 $ 3,250
Current maturities of
long-term debt - 1,733
Accounts payable and accrued
expenses 10,824 3,270
Accounts payable to related parties - 54
Income taxes payable 471 1,128
------------- -----------
Total current liabilities 57,181 9,435
Long-term debt, net of
current maturities 2,756 11,267
------------- -----------
Commitments and contingencies
Stockholders' equity:
Preferred stock, $.01 par value;
2,000,000 shares authorized;
no shares issued or outstanding - -
Common stock, $.001 par value;
20,000,000 shares authorized;
7,190,104 shares issued and
outstanding at September 30, 1999
and December 31, 1998, respectively 7 7
Additional paid-in capital 20,450 20,450
Retained earnings 7,563 3,019
------------- -----------
Total stockholders' equity 28,020 23,476
------------- -----------
$ 87,957 $ 44,178
============= ===========
American Aircarriers Support, Incorporated and Subsidiaries
Consolidated Statements of Operations
For the Three and Nine Month Periods Ended
September 30, 1999 and 1998
(in thousands, except per share amounts)
For the Three For the Nine
Months Ended Months Ended
September 30, September 30,
------------------- -------------------
1999 1998 1999 1998
--------- --------- -------- ---------
(Unaudited) (Unaudited)
Net revenues $ 17,722 $ 7,345 $ 47,038 $ 15,441
Cost of sales and service 11,159 4,366 30,018 8,718
--------- --------- -------- ---------
Gross profit 6,563 2,979 17,020 6,723
--------- --------- -------- ---------
Operating expenses:
Selling and marketing 1,296 448 3,330 992
General and administrative 1,462 260 4,099 732
--------- -------- -------- ---------
Total operating expenses 2,758 708 7,429 1,724
--------- -------- -------- ---------
Income from operations 3,805 2,271 9,591 4,999
--------- -------- -------- ---------
Other expense
Interest (expense)
income, net (982) 21 (2,037) (110)
Deferred financing fees - - (99) -
--------- -------- -------- ---------
Income before
income taxes 2,823 2,292 7,455 4,889
Provision for income taxes 1,102 917 2,911 1,183
--------- -------- -------- ---------
Net income $ 1,721 $ 1,375 $ 4,544 $ 3,706
========= ======== ======== =========
Pro forma data: (a)
Income before incomes
taxes as reported $ $ $ $ 4,889
Pro forma income
tax expense - - - 1,956
--------- -------- -------- ---------
Pro forma net income $ - $ - $ - $ 2,933
========= ======== ======== =========
Earnings per share and
Pro forma basic earnings
per share $ 0.24 $ 0.22 $ 0.63 $ 0.58
========= ======== ======== =========
Earnings per share and
Pro forma diluted
earnings per share $ 0.24 $ 0.22 $ 0.62 $ 0.58
========= ======== ======== =========
Weighted average shares
outstanding and pro forma
weighted average shares
outstanding:
Basic 7,190 6,312 7,190 5,087
======== ======== ======== =========
Diluted 7,308 6,312 7,333 5,087
======== ======== ======== =========
(a)Footnote: AAS became subject to income taxes on May 28, 1998 when
it terminated its election to be taxed as an S corporation in
connection with its initial public offering. To allow for comparisons
with future periods, pro forma federal and state income taxes have
been assumed.
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