Aviation Group, Inc. Announces Sale of its Casper Air Service Fixed-base Operating Division; Sale is Second in Last 45 Days; Additional Activities Being Pursued.Business Editors DALLAS--(BUSINESS WIRE)--Feb. 9, 2000 Aviation Group, Inc. (Nasdaq:AVGP AVGP Armored Vehicle General Purpose AVGP Asociación Valenciana de Gestión Pública (Spanish: Valencian Association for Public Management; www.uv.es/avgp) ) today announced the sale of its Casper Air Service, Inc. operations to a private aviation fixed-base operator with multiple US locations. The sale of Casper represents the second sale of an Aviation Group operating division in the last 45 days. Aviation Group received $800,000 in cash and debt assignment for its Casper operations, while retaining working capital and other assets other assets Assets of relatively small value. For financial reporting purposes, firms frequently combine small assets into a single category rather than listing each item separately. not sold with a net liquidation value Liquidation value Net amount that could be realized by selling the assets of a firm after paying the debt. of approximately $400,000. Since its acquisition in 1997, Casper incurred cumulative losses exceeding $1.3 million. &uot;Casper's sale eliminates a management and capital drain, and yet its sale proceeds, when combined with last quarter's sale of our Tri-Star Aviation ground handling operations have increased our tangible net worth Tangible Net Worth Total assets less intangible assets and total liabilities. Notes: In terms of a consumer, tangible net worth is the sum of all your tangible assets (cash, home, cars, etc). by over $1,300,000,&uot; said Lee Sanders, Aviation Group 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. . &uot;With these divisions sold, management may now focus virtually all of its energies on the operation and sale of its two most important and valuable assets, aircraft paint and aircraft batteries&uot; said Sanders. Management intends to use the proceeds of Casper's sale to provide cash reserves Cash reserves See: Cash investments cash reserves Investment funds that are held in short-term assets such as Treasury bills and certificates of deposit until more permanent investment opportunities are available. , fund growth in its other operating divisions and to repay certain short-term debt. The company is in the midst Adv. 1. in the midst - the middle or central part or point; "in the midst of the forest"; "could he walk out in the midst of his piece?" midmost of negotiations and documentation regarding the sale of certain other operating divisions, although management did not predict when such efforts would conclude or the ultimate outcome of its sale activities. The Company is presently in discussions with certain third parties regarding a sale or merger, and is also in discussions with certain third parties regarding the sale of other segments of its operations on an individual basis. Other parties interested in the Company's status as a public company have expressed interest in a business combination, spin-off, or other transaction. While management anticipates the sale of significant portions of its business during the year, there can be no assurance that such activities will generate a sale of the Company or that if such transaction occurs that related consideration will significantly enhance shareholder value. Aviation Group is a publicly traded company publicly traded company A company whose shares of common stock are held by the public and are available for purchase by investors. The shares of publicly traded firms are bought and sold on the organized exchanges or in the over-the-counter market. based in Dallas. Aviation Group operates world-class painting facilities through its Aviation Exteriors, Inc. subsidiaries in New Iberia, La., Greenville, Miss., and Portland, Ore. The Company's Component Overhaul and Service Division manufactures replacement batteries, precision aviation scales and other component parts for general and commercial airplanes. Except for the historical information contained herein, this press release contains statements that constitute forward-looking statements, as defined in 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. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors that may cause or contribute to such differences include, among other things, the Company's dependence on one customer, changes in the airline travel industry, seasonality of the Company's painting business, risk of future losses from operations, the ability to make additional business acquisitions, uninsured casualty losses, environmental regulation of airline stripping and painting operations and increased competition in the airline services industry. Other risks and uncertainties include changes in business conditions and the economy in general, changes in governmental regulations, unforeseen litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. and other risk factors identified in the Company's SEC filings under &uot;Risk Factors.&uot; The Company undertakes no obligation to update these forward-looking statements for revisions or changes after the date of this press release. |
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