Aviation Group, Inc. Reports 2nd Quarter Fiscal 2000 Results; Tangible Net Worth Rises on Sale of Divisions.Business Editors DALLAS--(BUSINESS WIRE)--Feb. 17, 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 losses of $715,000 or $.20 per share for the three months ended Dec. 31, 1999 on revenues of $2,400,000. Included in net income is a one time write-off Write-Off A reduction in the value of an asset or earnings by the amount of an expense or loss. Companies are able to write off certain expenses that are required to run the business, or have been incurred in the operation of the business and detract from retained revenues. of unrealized goodwill of $918,000, and a $681,000 net gain on sale of operating divisions relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the recent sale of the Company's ground handling and aviation fixed base operations. For the three months ended Dec. 31, 1998, the Company reported income of $43,000 or $.02 per share on revenues of $4,694,000. There were no corresponding subsidiary liquidations or write-offs for the 1998 period. &uot;Management was successful in selling two of its five operating divisions during the past sixty days,&uot; reported Lee Sanders San´ders n. 1. An old name of sandalwood, now applied only to the red sandalwood. See under Sandalwood. , 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;We received prices slightly above our internal estimates. Net of closing costs Closing Costs The numerous expenses (over and above the price of the property) that buyers and sellers normally incur to complete a real estate transaction. Costs incurred include loan origination fee, discount points, appraisal fee, title search, title insurance, survey, taxes, and goodwill charges, we were able to increase 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 $1,500,000 during the quarter, generate cash resources necessary to fund our business and retire scheduled debt. Management is hopeful that additional sales or transactions can be negotiated and completed during the next few months to maximize value of remaining Aviation Group assets for all shareholders,&uot; said Sanders. On Dec. 31, 1999, the Company announced the successful sale of its Tri-Star Airline Services ground handling subsidiary operations. On Feb. 8, 2000 the Company successfully sold its Casper Casper, city (1990 pop. 46,742), alt. 5,123 ft (1,561 m), seat of Natrona co., E central Wyo., on the North Platte River; inc. 1889. It is a rail, distribution, processing, and trade center in a farming, ranching, and mineral-rich area. Air Service general aviation fixed base operations. Both businesses were sold to unrelated third parties. The Company is presently in discussions with certain parties regarding a sale or merger of the entire enterprise, and is also in discussions with certain third parties regarding the sale of certain remaining segments of the Company's 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 The situation that arises when a parent corporation organizes a subsidiary corporation, to which it transfers a portion of its assets in exchange for all of the subsidiary's capital stock, which is subsequently transferred to the parent corporation's shareholders. , or other transaction. While this process is underway, management continues to cut overhead costs overhead costs see fixed costs. and focus its energies on the maximization of profits and cashflows of its existing business units, the Company reported. Management anticipates significant transactions relating to its business during the fiscal year, but there can be no assurance that such activities will generate a sale of the Company or that if such transaction occurs that the related consideration will significantly enhance shareholder value. Aviation Group is a publicly traded holding company based in Dallas Dallas, city (1990 pop. 1,006,877), seat of Dallas co., N Tex., on the Trinity River near the junction of its three forks; inc. 1871. The second largest Texas city, after Houston, and the eighth largest U.S. . Aviation Group operates world-class world-class adj. 1. Ranking among the foremost in the world; of an international standard of excellence; of the highest order: a world-class figure skater. 2. painting facilities through its Aviation Exteriors, Inc. (&uot;AvEx&uot;) subsidiaries in New Iberia New Iberia, city (1990 pop. 31,828), seat of Iberia parish, S La., on Bayou Teche, which is connected to the Intracoastal Waterway by a canal; inc. 1836. It has printing and publishing, and its manufactures include oil- and gas-drilling equipment, fabricated steel, , La. and Portland Portland, town, England Portland, town (1991 pop. 12,945), Dorset, S England. It is on the Isle of Portland, a small rocky peninsula. Portland stone has been used in St. Paul's Cathedral and other important London buildings. Lobsters and crabs are harvested. , Ore., and Greenville Greenville. 1 City (1990 pop. 45,226), seat of Washington co., W Miss., on Lake Ferguson, a deepwater harbor adjoining the Mississippi River; inc. 1886. , Miss. The Company's Component Overhaul and Service Division manufactures replacement batteries, precision aviation scales and other component parts for general and commercial airplanes.
Aviation Group, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(Unaudited)
Three Months Ended Six Months Ended
December 31, December 31,
------------ ------------
1999 1998 1999 1998
---- ---- ---- ----
Revenue $2,400,000 $4,694,000 $ 5,529,000 $8,355,000
Cost of Revenue 1,634,000 2,715,000 3,550,000 4,820,000
---------- ---------- ---------- ----------
Gross Profit 766,000 1,979,000 1,979,000 3,535,000
---------- ---------- ---------- ----------
General and
Administrative
Expenses 1,629,000 1,630,000 3,125,000 2,956,000
Depreciation and
Amortization 169,000 194,000 339,000 347,000
---------- ---------- ---------- ----------
1,798,000 1,824,000 3,464,000 3,303,000
---------- ---------- ---------- ----------
Income (Loss) from
Operations (1,032,000) 155,000 (1,485,000) 232,000
---------- ---------- ---------- ----------
Other Income
(expenses)
Other income
(expense) 1,000 1,000 1,000 2,000
Interest expense,
net (204,000) (122,000) (381,000) (169,000)
---------- ---------- ---------- ----------
(203,000) (121,000) (380,000) (167,000)
---------- ---------- ---------- ----------
Income (loss) from
continuing operations
Before income taxes (1,235,000) 34,000 (1,865,000) 95,000
Provision (Benefit)
for income taxes -- -- -- 14,000
---------- ---------- ---------- ----------
Income from
continuing
operations (1,235,000) 34,000 (1,865,000) 51,000
Income (loss) from
discontinued
business (161,000) 43,000 (139,000) 44,000
Gain on sale of
subsidiaries, net 681,000 -- 690,000 --
---------- ---------- ---------- ----------
520,000 43,000 551,000 44,000
---------- ---------- ---------- ----------
Net Income (Loss) $ (715,000) $ 77,000 $(1,314,000) $ 95,000
---------- ---------- ---------- ----------
---------- ---------- ---------- ----------
Earnings (loss) per
common share
Income (loss) before
discontinued
business $ (0.35) $ 0.01 $ (0.52) $ 0.02
Income (loss) from
discontinued
operations 0.15 0.01 0.15 0.01
---------- ---------- ---------- ----------
Net income per share
(basic and diluted) $ (0.20) $ 0.02 $ (0.37) $ 0.03
---------- ---------- ---------- ----------
---------- ---------- ---------- ----------
Weighted average shares
outstanding
Basic and diluted 3,573,929 3,465,673 3,573,929 3,465,673
---------- ---------- ---------- ----------
---------- ---------- ---------- ----------
Except for the historical information contained herein, this press release contains statements that constitute 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. , 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 certain customers, changes in the airline travel industry, seasonality of the Company's painting business, risk of future losses from operations, the ability to sell or merge See mail merge and concatenate. all or a portion of the Company's businesses, 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. |
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion