Aviation Sales Company reports first quarter results.MIAMI--(BUSINESS WIRE)--April 30, 1997--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 ) Wednesday Wednesday: see week. announced results for the first quarter ended March 31, 1997. First quarter 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 38% to $49.1 million, compared with $35.5 million for the same period last year. Net income was $2.8 million, or $0.33 per 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 $2.1 million, or $0.40 per share, in the 1996 first quarter. There were 59% more shares outstanding in the most recent period as a result of the Company's initial public offering in June of 1996. Gross profit increased 12% to $13.8 million for the first quarter ended March 31, 1997, compared with $12.3 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. declined to 28.1% for the 1997 first quarter from 34.6% for the 1996 first quarter and from 29.6% for the 1996 fourth quarter. Aviation Sales noted that the decline in gross profit margin was expected as the mix of inventories sold during the period continued to reflect a declining contribution from bulk inventories acquired prior to 1995. Additionally, sales from the Company's bearings distribution business acquired in August of 1996 added $5.1 million of revenues during the current quarter at a 22.6% gross profit margin. 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 $1.3 million in the first quarter of 1997 compared with the first quarter of 1996, due to higher sales levels. Operating expenses as a percentage of sales declined, however, to 16.7% in the 1997 first quarter from 19.4% in the corresponding period of 1996, reflecting the continuing benefits of economies of scale and operating efficiencies. Dale S. Baker, Chairman and Chief Executive Officer, commented: "During the first quarter of 1997, we made a number of significant strides in achieving our long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. strategic plan. We established our Aviation Sales Leasing Company subsidiary with Harold Woody Woody Slang to describe when the market has a strong and quick upward movement. Notes: For example, you'll hear "the market has a woody," when the market is performing well... seriously, we don't make this stuff up. as president. We have also made significant acquisitions of engine material in support of our engine specialty group which was established through our acquisition of AvEng Trading Partners, Inc. in December of 1996. In addition, our acquisition of the aircraft bearings division of Dixie Bearings is proving to be the important entry we needed into new aircraft parts distribution. On balance, our core operations are solid and growing while the dynamics of our market and industry remain very favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. ." 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 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, 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 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
Aviation Sales Company and Subsidiaries
Condensed Statements of Income
Periods Ended March 31
Three Months
Millions, except as noted 1997 1996 (2)
Operating Revenues $49.1 $35.5
Cost of Sales 35.3 23.2
Gross Profit 13.8 12.3
Gross Margin 28.1% 34.6%
Operating Expenses
Operating, Selling & Administration 7.5 6.4
Depreciation & Amortization 0.7 0.5
Total Operating Expenses 8.2 6.9
16.7% 19.4%
Income from Operations 5.6 5.4
Interest Expense and Other 1.0 2.0
Income Tax (Benefit) Expense 1.8 0.0
Net Income $2.8 $3.4
Earnings Per Share:
Net Income $0.33 $0.40 (1)
Weighted Average
Common Shares Outstanding 8.60 5.40
Common Stock Prices, per share
High 25.875 --
Low 24.625 --
Quarterly Close 25.125 --
(1) Pro forma adjustments as if the Company had been
taxed as a C-corporation since the beginning of the period.
(2) The three month period ended March 31, 1996 has
been restated to reflect the results of operations
of AvEng Trading Partners, Inc., which was accounted for
as a pooling of interests.
Aviation Sales Company and Subsidiaries
Condensed Balance Sheets
March 31, December 31,
Millions 1997 1996
Assets
Current Assets
Cash and Cash Equivalents $0.6 $1.3
Accounts Receivable, net 42.7 37.1
Inventory 81.7 73.0
Prepaid Expenses 2.4 4.0
Deferred Income Taxes 2.2 2.0
Total Current Assets 129.6 117.4
Spare Parts on Lease, net 16.4 18.0
Property and Equipment, net 2.6 2.3
Amounts due from Affiliates 2.8 2.9
Deferred Income Taxes 3.2 3.4
Other Assets 1.2 1.2
Total Assets $155.8 $145.2
Liabilities and Stockholders' Equity
Current Liabilities
Accounts Payable & Accrued Expenses $20.3 $24.2
Current Maturities - Bank Debt 37.7 24.1
Total Current Liabilities 58.0 48.3
Deferred Revenue 0.9 0.9
Notes Payable - Long Term 13.0 14.9
Stockholders' Equity 83.9 81.1
Total Liabilities & Equity $155.8 $145.2
CONTACT: Aviation Sales Company Dale S. Baker, Chairman and Chief Executive Officer 305/599-6619 or Joseph E. Civiletto, Chief Financial Officer 305/599-6693 or Morgen-Walke Associates June 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 |
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