First Aviation Announces Fiscal Year, Fourth Quarter Results and a Restructuring.WESTPORT, Conn.--(BUSINESS WIRE)--April 6, 1998--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 ), a leading provider of services to aircraft operators worldwide, today announced net income of $5.2 million, or $0.62 per share ($0.60 assuming dilution), after an extraordinary item and preferred dividends preferred dividend n. a payment of a corporation's profits to holders of preferred shares of stock. (See: preferred stock) , for the fiscal year ended January 31, 1998, compared to $0.5 million and $0.13 per share ($0.09 assuming dilution), respectively, for the prior fiscal year. Net income before preferred dividends and the extraordinary item was $5.4 million, or $0.63 per share ($0.61 assuming dilution), compared to $1.5 million and $0.37 per share ($0.26 assuming dilution), respectively for the same period last year. Extraordinary charges in both years related to costs associated with the early extinguishment The destruction or cancellation of a right, a power, a contract, or an estate. Extinguishment is sometimes confused with merger, though there is a clear distinction between them. of debt. (All per share amounts have been determined in accordance with Financial Accounting Standards Board Financial Accounting Standards Board (FASB) Board composed of independent members who create and interpret Generally Accepted Accounting Principles (GAAP). Statement 128, "Earnings Per Share".) 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 for the fiscal year ended January 31, 1998 increased $49.4 million, or 47.4%, to $153.6 million, compared to $104.2 million for the prior fiscal year. Operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. rose 71.4% to $8.4 million, compared to $4.9 million in the prior year. The Company had previously noted that sales and operating income were favorably impacted by the acquisition of Aircraft Parts 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. ). Revenues for the fourth quarter increased 44.4% to $39.7 million, compared to $27.5 million a year ago. Net income for the fourth quarter was $1.0 million, or $0.12 per share ($0.11 assuming dilution), compared to a loss of $0.9 million, or $0.27 per share ($0.19 assuming dilution) a year ago. The announced results are consistent with preliminary estimates issued earlier. The Company also announced that it has initiated a plan to streamline operations at National Airmotive Corporation (NAC See network access control. ), and will take a restructuring charge restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. of approximately $1.7 million and other non-recurring charges of $1 million before tax benefit, in the first quarter. The economic impact of the restructuring is expected to positively affect results beginning in the second quarter. The Company expects that annual savings from the plan will approximate $3.4 million on a pretax pre·tax adj. Existing before tax deductions: pretax income. pretax adj [profit] → vor (Abzug der) Steuern basis. The plan to streamline NAC's operations includes the consolidation of the Light Turbine business unit to Long Beach, California Long Beach is a city located in southern Los Angeles County, California, USA, on the Pacific coast. It borders Orange County on its southeast edge. It is about 20 miles (30 km) south of downtown Los Angeles. as well as a reduction in force at its Oakland facility. The Light Turbine business unit currently performs repair and overhaul work of Allison 250 at both Oakland and Long Beach, and Pratt & Whitney Canada PT6 gas turbines and Bell Helicopter Bell Helicopter Textron is an American helicopter and tiltrotor manufacturer headquartered in Fort Worth, Texas. A division of Textron, Bell manufactures military helicopter and tiltrotor products in the United States (primarily in and around Fort Worth as well as in Amarillo, rotating components at Long Beach. Consolidating the two operations will bring increased efficiency and focus, and improved customer service. Fredrik Groth, Vice President, Light Turbine indicated that "NAC must be agile in order to compete effectively and increase market share. Consolidating in Long Beach will allow us to better serve our customers. Long Beach will be the basis for our plan to become the share leader in the Allison 250 market and a major player in Pratt & Whitney PT6 repair and overhaul." The reduction in force at Oakland is a result of softness in the Large Engine business unit, the aforementioned consolidation of Light Turbine, and a requirement to bring more margin to the bottom line. The Large Engine business unit's Allison T-56 repair and overhaul business has slowed due to the Asian financial situation and a postponement of inputs from Middle Eastern countries. While NAC recently won several United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. Department of Defense contracts, and indications are positive on future contracts from foreign customers, Joseph Ghantous, Vice President Large Engines, stated "NAC must be cost efficient in order to maintain its number one position in this market. We are determined to participate in the T-56 portion of the Propulsion Propulsion The process of causing a body to move by exerting a force against it. Propulsion is based on the reaction principle, stated qualitatively in Newton's third law, that for every action there is an equal and opposite reaction. Business Area work currently being privatized by Kelly Air Force Base Kelly Air Force Base was a United States Air Force base located in San Antonio, Texas. In 2001, the runway and land west of the runway became "Kelly Field Annex" and control of it was transferred to the adjacent Lackland Air Force Base. . The reductions and the consolidation of Allison 250 to Long Beach, which will free up space in Oakland, will increase efficiency and improve operations in both engine overall and component repair." Raj raj also Raj n. Dominion or rule, especially the British rule over India (1757-1947). [Hindi r Sharma, President of NAC, stated that "these actions will result in the net elimination of approximately 80 positions. We operate in highly competitive markets. We are reengineering NAC in order to become even more cost effective than we are currently in order to compete effectively and to reach our goal of being the best gas turbine repair and overhaul company in the world." First Aviation is a worldwide leader in providing services to aircraft operators of some of the most widely used military, commercial and general aviation engines as well as to operators of industrial engines. Its operations include National Airmotive Corporation located in Oakland and Long Beach, California, as well as Houston, Texas “Houston” redirects here. For other uses, see Houston (disambiguation). Houston (pronounced /'hjuːstən/) is the largest city in the state of Texas and the , which specializes in the repair and overhaul of gas turbine engines, and API Combs, a leading supplier of aircraft parts to the general aviation industry in the United States, headquartered 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. . First Aviation Services continues to pursue growth opportunities through acquisition and product line expansion. The Company will host a conference call to discuss the restructuring on Monday, April 6 at 12:00 Noon EST EST electroshock therapy. EST abbr. electroshock therapy . Interested parties should call 1 (888) 335-3469 before 11:45 AM EST on April 6. 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. The Company from time to time may discuss forward-looking information. Except for the historical information contained in this release, all forward looking information are estimates of the Company's management and are subject to the various risks and uncertainties including the Company's ability to obtain parts from its principal supplier on a timely basis, the ability to consummate suitable acquisitions, the ability to expand its remanufacturing capabilities and other items that are beyond the Company's control and may cause results to differ from management expectations.
First Aviation Services Inc.
Consolidated Condensed Statements of Operations
(in thousands, except per share amounts)
Three Months Fiscal Year
Ended January 31, Ended January 31,
1998 1997 1998 1997
Net sales $ 39,677 $ 27,460 $ 153,642 $ 104,236
Cost of sales 34,575 23,820 130,433 89,426
Gross profit 5,102 3,640 23,209 14,810
Selling, general
and administrative
expenses 3,624 3,718 14,827 9,881
Income /(loss)
from operations 1,478 (78) 8,382 4,929
Net interest
expense and other 413 851 1,524 3,470
Income/(loss)
before provision for
income taxes and
extraordinary item 1,065 (929) 6,858 1,459
Provision for income
taxes 31 - 1,500 -
Income/(loss) before
extraordinary item 1,034 (929) 5,358 1,459
Extraordinary item:
Loss on early
extinguishment of
debt (net of income
tax benefit) - - 108 864
Net income/(loss) 1,034 (929) 5,250 595
Preferred stock
dividends - 33 11 132
Net income/(loss)
applicable to common
stockholders $ 1,034 $(962) $ 5,239 $ 463
Basic net income/(loss)
per common share:
Net income/(loss)
available to common
stockholders before
extraordinary item $ 0.12 $ (0.27) $ 0.63 $ 0.37
Extraordinary item - - (0.01) (0.24)
Basic net income/(loss)
per share available to
common stockholders $ 0.12 $ (0.27) $ 0.62 $ 0.13
Shares used in
computation of net
income applicable to
common stock 8,920,500 3,556,665 8,432,234 3,556,665
Net income/(loss)
per share - assuming
dilution:
Net income/(loss)
available to common
stockholders before
extraordinary item $ 0.11 $ (0.19) $ 0.61 $ 0.26
Extraordinary item - - (0.01) (0.17)
Net income/(loss) per
share available to
common stockholders -
assuming dilution $ 0.11 $ (0.19) $ 0.60 $ 0.09
Shares used in
computation of net
income applicable to
common stock -
assuming dilution 9,070,300 4,993,383 8,698,400 5,194,456
-0-
CONTACT: First Aviation Services, Inc. John A. Marsalisi, Chief Financial Officer (203) 291-3303 |
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