First Aviation Announces First Quarter Net Income.Business Editors WESTPORT Westport, residential town (1990 pop. 24,407), Fairfield co., SW Conn., on Long Island Sound at the mouth of the Saugatuck River; settled 1645–50, inc. 1835. It serves as a popular residence for New York City commuters. Westport has a summer theater. , Conn.--(BUSINESS WIRE)--June 3, 2003 First Aviation Services Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : FAVS FAVS Fabbrica Armi Valle Susa FAVS Fighter Attack Visual System ), one of the premier suppliers of products and services to the aerospace industry worldwide, today announced profits for its first quarter, with income before cumulative effect of accounting change of $0.02 per share, compared to $0.01 per share in the prior year. Net income was $0.02 per share, compared to a net loss of $0.37 per share in the first quarter of the prior year, after the accounting change. Highlights are as follows: -- Net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight increased 2.4% to $25.6 million compared to $25.0 million in the prior year. -- Gross profit increased 4.3% to $4.9 million compared to $4.7 million in the prior year. -- Corporate expenses decreased 11.6% to $0.5 million compared to $0.6 million in the prior year. -- Income before income taxes increased 53.9% to $0.2 million compared to $0.1 million in the prior year. -- Net income increased to $0.1 million, compared to a loss of $2.7 million in the prior year. (Prior year results included a net charge of $2.7 million relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the write off goodwill upon adoption of Financial Accounting Standards No. 142.) -- Cash on hand at April 30, 2003 increased from year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. to 27.1 million, or $3.73 per share, and book value increased from year-end to $36.4 million, or $5.01 per share. Michael Culver Michael Culver (born June 16, 1938 in Hampstead, London) is an English actor, best known to television viewers for his role as Major Erwin Brandt in the 1970s BBC drama Secret Army. He also played the strict Prior Robert ("Brother Prior") in the television series Cadfael. , President 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. of First Aviation, said "We were pleased with first quarter results, which were in-line In-line Used in the context of general equities. (1) An order or market in a specific security within the inside market; 2) any announcement (earnings) that adheres closely to Wall Street analysts' expectations. with our expectations. The industry still is facing many challenges that present the company with long term opportunities." First Aviation, located in Westport, Connecticut Westport is a coastal town in Fairfield County, Connecticut, in the United States. The 2004 population estimate was 26,644. The town is as affluent as other expensive Fairfield County towns, boasting a per capita income of more than $70,000. , and its principal operating subsidiary An operating subsidiary is a business term frequently used within the United States railroad industry. In the case of a railroad, it refers to a company that is a subsidiary but operates with its own identity and rolling stock. , Aerospace Products International Inc. ("API (Application Programming Interface) A language and message format used by an application program to communicate with the operating system or some other control program such as a database management system (DBMS) or communications protocol. "), based in Memphis, Tennessee For the ancient Egyptian capital, see . Memphis is a city in the southwest corner of Tennessee, and the county seat of Shelby County. Memphis rises above the Mississippi River on the 4th Chickasaw Bluff just below the mouth of the Wolf River. , is one of the premier suppliers of products and services worldwide to manufacturers and aircraft operators of some of the most widely used commercial and general aviation aircraft. In addition to its parts and components supply services, API is a leading provider of supply chain management and customized third party logistics logistics In military science, all the activities of armed-force units in support of combat units, including transport, supply, communications, and medical aid. The term, first used by Henri Jomini, Alfred Thayer Mahan, and others, was adopted by the U.S. services and technology solutions, including inventory management services. API also offers overhaul and repair services for brakes and starter/generators, and builds custom hose assemblies. With locations in the U.S., Canada Canada (kăn`ədə), independent nation (2001 pop. 30,007,094), 3,851,787 sq mi (9,976,128 sq km), N North America. Canada occupies all of North America N of the United States (and E of Alaska) except for Greenland and the French islands of and Asia Pacific, plus partners throughout the world, API continues to be one of the premier suppliers of aviation products, supply chain management services and technology solutions in the industry. The Company will host a conference call to discuss first quarter results during the week of June June: see month. 9, 2003. A separate announcement will be issued for that purpose. More information about First Aviation can be found on the World Wide Web at http://www.favs.com and, http://www.apiparts.com. 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. Certain statements discussed in this release constitute forward-looking statements within the meaning 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. Forward-looking statements are not statements of historical facts, but rather reflect the Company's current expectations concerning future events and results. Such forward-looking statements, including those concerning the Company's expectations, involve known and unknown risks, uncertainties and other factors, some of which are beyond the Company's control, that may cause the Company's actual results, performance or achievements, or industry results, to be materially different from any future results, performance or achievements expressed or implied Inferred from circumstances; known indirectly. In its legal application, the term implied is used in contrast with express, where the intention regarding the subject matter is explicitly and directly indicated. by such forward-looking statements. Such risks, uncertainties and other important factors include, among others: the Company's ability to obtain parts and components from its principal suppliers on a timely basis; depressed Depressed A description of a market, security, or product that is experiencing weak demand and lowering prices. Notes: A depressed market, security, or product implies that prices and volume are low. There are many reasons for a depressed market, security, or product. domestic and international market and economic conditions; especially those currently facing the aviation industry as a whole; the impact of changes in fuel and other freight The price or compensation paid for the transportation of goods by a carrier. Freight is also applied to the goods transported by such carriers. The liability of a carrier for freight damaged, lost, or destroyed during shipment is determined by contract, statute, or related costs; relationships with its customers; the ability of the Company's customers to meet their financial obligations to the Company; the ability to obtain and service supply chain management contracts; changes in regulations or accounting standards; 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 and expand; other items that are beyond the Company's control may cause actual results to differ from management's expectations; and other factors as are described in Item 7, (Management's Discussion and Analysis Management's discussion and analysis (MD&A) A report from management to shareholders that accompanies the firm's financial statements in the annual report. It explains the period's financial results and enables management to discuss topics that may not be apparent in the financial of Financial Condition and Results of Operations) in the Company's Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended January January: see month. 31, 2003. In addition, specific consideration should be given to the various factors described in this release.
First Aviation Services Inc.
Consolidated Condensed Statements of Operations
(in thousands, except share amounts)
(unaudited)
Three months ended April 30,
2003 2002
----------- -----------
Net sales $25,605 $24,998
Cost of sales 20,731 20,324
----------- -----------
Gross profit 4,874 4,674
Selling, general and administrative expenses 4,266 4,014
----------- -----------
Operating income before corporate expenses 608 660
Corporate expenses 490 554
----------- -----------
Income from operations 118 106
Net interest income and other 89 32
Minority interest in subsidiary (10) (10)
----------- -----------
Income before income taxes 197 128
Provision for income taxes (77) (50)
----------- -----------
Income before cumulative effect of accounting
change 120 78
Cumulative effect of accounting change, net of
benefit for income taxes of $922 - (2,735)
----------- -----------
Net income (loss) $120 $(2,657)
=========== ===========
Basic net income (loss) per share, and net
income (loss) per share - assuming dilution:
Income before cumulative effect of
accounting change $0.02 $0.01
Cumulative effect of accounting change - (0.38)
----------- -----------
Basic net income (loss) per share, and net
income (loss) per share - assuming dilution $0.02 $(0.37)
=========== ===========
Weighted average shares outstanding - basic 7,251,355 7,204,107
=========== ===========
Weighted average shares outstanding -
assuming dilution 7,258,903 7,230,763
First Aviation Services Inc.
Consolidated Condensed Balance Sheets
(in thousands, except share amounts)
April 30, January 31,
2003 2003
-----------------------
(unaudited) *
Assets
Current assets:
Cash and cash equivalents $27,095 $26,013
Trade receivables, net of allowance for
doubtful accounts of $1,767 and $1,656,
respectively 12,666 12,978
Inventory, net of allowance for obsolete
and slow moving inventory of $997,
respectively 20,323 20,617
Prepaid expenses and other 2,220 1,794
----------- -----------
Total current assets 62,304 61,402
Plant and equipment, net 3,434 3,639
----------- -----------
$65,738 $65,041
=========== ===========
Liabilities and stockholders' equity
Current liabilities:
Accounts payable $10,780 $10,324
Accrued compensation and related
expenses, and other accrued liabilities 1,883 2,073
Income taxes payable 1,136 1,009
----------- -----------
Total current liabilities 13,799 13,406
Revolving line of credit 14,500 14,500
Minority interest in subsidiary 1,041 1,041
----------- -----------
Total liabilities 29,340 28,947
Stockholders' equity:
Common stock, $0.01 par value, 25,000,000
shares authorized, 7,251,370 and
7,250,710 shares outstanding,
respectively 91 91
Additional paid-in capital 38,445 38,445
Retained earnings 7,663 7,543
Accumulated other comprehensive income
(loss) 84 (96)
----------- -----------
46,283 45,983
Less: Treasury stock, at cost (9,885) (9,889)
----------- -----------
Total stockholders' equity 36,398 36,094
----------- -----------
Total liabilities and stockholders' equity $65,738 $65,041
=========== ===========
* Balances were derived from the audited balance sheet as of January
31, 2003.
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