Aviation Sales Company Reports 46.7% Increase in First Quarter Income Before Extraordinary Item.MIAMI--(BUSINESS WIRE)--April 30, 1998--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 announced record results for the first quarter ending March 31, 1998. First quarter operating revenue operating revenue Revenue from any regular source. Revenue from sales is adjusted for discounts and returns when calculating operating revenue. Compare other revenue. rose 50.3% to $82.5 million, from $54.9 million for the same period last year. Income before extraordinary item increased 46.7% to $4.4 million, or $0.45 per 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. share, compared with 1997 first quarter net income of $3.0 million, or $0.32 per diluted share. The Company recorded an extraordinary charge (net of income taxes) of $0.6 million during the 1998 quarter related to deferred financing costs associated with the portion of debt repaid with the proceeds of the $165 million senior subordinated notes offering completed on February February: see month. 17, 1998. Gross profit increased 62.9% to $24.6 million for the quarter ended March 31, 1998, compared with $15.1 million for the same period last year. 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. increased to 29.8% for the 1998 first quarter from 27.5% for the 1997 first quarter and remains in line with the 29.8% reported for the fourth quarter 1997. Dale S. Baker, chairman and chief executive officer, commented: "The first quarter of 1998 represents our seventh consecutive quarter of record revenue and strong earnings performance since completing our initial public offering. During this quarter we completed several strategic actions including the acquisition of Caribe Aviation, Inc., a provider of component maintenance and repair, and its wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. Aircraft Interior Design, Inc., which provides manufacturing and repair of aircraft interior components. A debt offering of senior subordinated notes raised $165 million at an attractive interest rate. We also announced the proposed merger with Whitehall Whitehall, cities, United States Whitehall. 1 City (1990 pop. 20,572), Franklin co., central Ohio, a suburb of Columbus; inc. 1948. Manufactures include water coolers and packaged meats. Corporation, a leader in the maintenance repair and overhaul of aircraft." 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 $4.9 million from $9.0 million for the first quarter of 1997 to $13.9 million for the first quarter of 1998. Included in the first quarter 1998 operating expenses are $0.53 million of expenses relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the proposed Whitehall merger. Operating expenses as a percentage of operating revenues decreased from 16.4% for the first quarter of 1997 to 16.2% for the first quarter of 1998 after adjustment for the Whitehall merger expenses. 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. manufacturing, overhaul and 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, 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(R) designed to meet the diverse needs of its customers. Aviation Sales Company also manufactures certain aircraft parts for sale to original equipment manufacturers, including precision engine parts, and provides certain aircraft repair services at its FAA licensed repair facilities. -0- Except for historical information contained herein, this release contains certain 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. that 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 Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties which may cause the Company's actual results in future periods to differ materially from forecasted results. A number of factors, including those identified below, could adversely affect the Company's ability to obtain these results: the Company's ability to acquire adequate inventory and to obtain favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. pricing for such inventory, competitive pricing for the Company's products and services, increased competition in the aircraft spare parts redistribution and 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. markets, the ability to consummate To carry into completion; to fulfill; to accomplish. A Common-Law Marriage is consummated when the parties live in a manner intended to bring about public recognition of their relationship as Husband and Wife. suitable acquisitions, the continuing ability to effectively integrate acquisitions, economic factors which affect the airline industry, and changes in government regulations. Certain of these risks are described in the Company's 10-K filings with the Securities and Exchange Commission (SEC). Copies of the Company's 10-K and 10-Qs are available from the SEC or may be obtained upon request from the Company. The Company does not undertake any obligation to update the information contained herein, which speaks only as of this date. -0-
Financial Data
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Condensed Statements of Income
Aviation Sales Company and Subsidiaries Periods Ended March 31
Three Months
Millions, except as noted 1998 1997 (1)
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Operating Revenues $82.5 $54.9
Cost of Sales 57.9 39.8
------- -------
Gross Profit 24.6 15.1
Gross Margin 29.8% 27.5%
Operating Expenses
Operating, Selling & Administration 12.8 8.3
Depreciation & Amortization 1.1 0.7
------- -------
Total Operating Expenses 13.9 9.0
16.8% 16.4%
Income from Operations 10.7 6.1
Interest Expense and Other 3.6 1.1
Income Tax Expense 2.7 2.0
------- -------
Income Before Extrordinary Item 4.4 3.0
Extraordinary Item, Net of Taxes 0.6 -
------- -------
Net Income $3.8 $3.0
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Diluted Earnings Per Share:
Income Before Extraordinary Item $0.45 $0.32
Extraordinary Item, Net of Taxes $0.06 -
------- -------
======= =======
Net Income $0.39 $0.32
======= =======
Average Common Shares and Common
Share Equivalents Outstanding - Diluted 9.59 9.42
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Common Stock Prices, per share
High 44 3/4 25 7/8
Low 33 1/8 24 5/8
Quarterly Close 41 25 1/8
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(1) The three month period ended March 31, 1997 has been restated to
reflect the results of operations of Aerocell Structures, Inc.
and Apex Manufacturing, Inc. which were accounted for as poolings
of interests.
-0-
Financial Data (cont.)
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Condensed Balance Sheets
Aviation Sales Company and Subsidiaries
March 31, December 31,
Millions 1998 1997
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Assets
Current Assets
Cash and Cash Equivalents $5.1 $5.0
Accounts Receivable, net 76.2 66.6
Inventories 179.9 139.3
Prepaid Expenses 3.4 3.1
Deferred Income Taxes 2.0 2.0
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Total Current Assets 266.6 216.0
Equipment on Lease, net 16.8 22.8
Property and Equipment, net 27.5 20.5
Amounts due from Affiliates 2.4 2.9
Deferred Income Taxes 1.4 1.5
Other Assets 36.2 21.3
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Total Assets $350.9 $285.0
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Liabilities and Stockholders' Equity
Current Liabilities
Accounts Payable & Accrued Expenses $36.7 $34.5
Current Maturities - Bank Debt 29.3 98.7
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Total Current Liabilities 66.0 133.2
Deferred Revenue 1.2 1.0
Notes Payable - Long Term 10.4 52.6
Bonds Payable 164.0 -
Stockholders' Equity 109.3 98.2
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Total Liabilities & Stockholders' Equity $350.9 $285.0
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CONTACT: 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 Filingeri/Jennifer Angell 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/Eileen King (212) 850-5600 http://www.avsales.com |
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