First Aviation Announces Record Fourth Quarter and Full Year Net Sales.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)--April 17, 2002 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 the aerospace industry worldwide, today announced record fourth quarter 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 of $25.6 million. For the full year ended January January: see month. 31, 2002 the Company reported record net sales of $105.7 million, the first time the Company has had revenues over $100 million. Earnings from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the for the quarter and year ended January 31, 2002 were $0.09 and $0.04 per share, respectively. For the quarter ended January 31, 2002, net sales increased 2.6% from $25.0 million reported for the fourth quarter of the prior year. Gross profit for the quarter increased 5.2% to $5.4 million from $5.1 million reported in the prior 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. , before corporate expenses, increased approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 660% to $0.6 million from $0.1 million in the prior year. Operating income for the quarter includes charges totaling approximately $0.3 million to record reserves relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc inventory and to change the Company's estimate of recording bad debts to a more conservative methodology. The reserve actions were taken as part of the Company's normal review procedures. Operating income from continuing operations was $1.0 million for the quarter, compared to a net loss of $0.9 million for the same period of the prior year. During the quarter the Company settled its 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. against Gulf Insurance Company for a payment of $0.9 million to the Company. The settlement, net of the associated legal costs, has been shown separately as part of continuing operations. The litigation had been ongoing for several years. Net income from continuing operations for the quarter was $0.6 million, or $0.09 per share, compared to a net loss of $0.5 million, or $0.07 per share for the same period of the prior year. The Company also recorded a net credit of approximately $0.3 million during the quarter, or $0.03 per share after applicable income taxes, due to the reversal reversal n. the decision of a court of appeal ruling that the judgment of a lower court was incorrect and is reversed. The result is that the lower court which tried the case is instructed to dismiss the original action, retry the case, or is ordered to change its of reserves recorded in prior years related to discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. . Net income was $0.12 per share for the quarter, compared to a net loss of $0.26 per share for the same quarter of the prior year. Prior year results included a net loss aggregating to $0.19 per share related to discontinued operations. Said Jerry Jer·ry n. pl. Jer·ries Chiefly British Slang A German, especially a German soldier. [Alteration of German. Schlesinger Schles·in·ger , Arthur Meier 1888-1965. American historian whose works include The Rise of the City (1933). His son Arthur Meier, Jr. (born 1917), also a historian, was an adviser to President John F. , President and Chief Executive Officer of Aerospace Products International (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. ), FAvS' 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. , "This was a good quarter for us. In the face of continuing weakness in our industry, which still is recovering from September September: see month. 11th, and a slow economy, we had solid growth in both revenue and gross profit. Gross profit grew at twice the rate of revenue growth and operating income for the quarter was strong. Our strong performance is the result of our quick reaction in the third quarter to the significant industry downturn Downturn The transition point between a rising, expanding economy to a falling, contracting one. downturn A decline in security prices or economic activity following a period of rising or stable prices or activity. , our continuing emphasis on providing 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. and inventory management services, and the benefits of our overall business strategies. With the growth initiatives and restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). actions we took this past year, we should have a solid year in 2003." 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 are pleased with our performance for the quarter and the year. We are one of the only companies in our sector to show growth and positive operating income for the quarter. Our performance this past quarter was a reflection of the effectiveness of our management team in adjusting our cost base, and the continuing successful implementation of our strategic model. We have expanded our sources of revenue and expect to continue to do so in 2003, especially in the area of logistics services. Also, our management team did a very good job of managing our working capital over the very difficult last half of the fiscal year, generating approximately $3.7 million of cash from operations in the fourth quarter. We are in good shape operationally and financially. We look forward to growing our businesses further and servicing new logistics customers. The industry's interest in supply chain management is much greater today that it was twelve months ago. As the aerospace industry recovers later in 2003, we expect our base distribution business to show modest growth also." For the fiscal year ending January 31, 2002 net sales increased 8.4% to $105.7 million from $97.6 million reported for the prior fiscal year. Gross profit for the year increased 5.3% to $22.0 million from $20.9 million reported in the prior year. Operating income, before corporate expenses, increased 86.8% to $2.1 million from $1.1 million in the prior fiscal year. For the year ended January 31, 2002 the Company earned $0.04 per share from continuing operations, compared to a net loss of $0.08 per share for the prior year. Over the same period the Company had a net income of $0.17 per share, compared to a net loss of $0.24 per share in the prior year. 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. is a worldwide leader in providing aerospace products and services to aircraft operators of some of the most widely used commercial and general aviation aircraft. Its operations include API, 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. . In addition to the product lines it distributes, API offers overhaul and repair services for brakes and starter/generators, and builds custom hose assemblies. API also is a leading provider of supply chain management and customized third party logistics services. 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 fastest growing provider of aviation products and inventory management solutions in the industry. The Company will host a conference call to discuss fourth quarter and full year results on Thursday Thursday: see week. , April 18, 2002 at 10:30 am EST EST electroshock therapy. EST abbr. electroshock therapy . Interested parties should call 1 (800) 370-0906 before 9:50 am EST. A replay will be available for 48 hours. Please call (877) 519-4471; PIN is 3238191. More information about First Aviation can be found on the World Wide Web at http://www.firstaviation.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. Information included in this release may contain 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. In evaluating such statements, as well as the future prospects of the Company, specific consideration should be given to various factors, including the Company's ability to obtain parts and components from its principal suppliers on a timely basis, domestic and international market and economic conditions, especially those currently facing the aviation industry as a whole, the impact changes in of fuel and other freight related costs, relationships with its customers, the ability to obtain and service supply chain management contracts, 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 other items that are beyond the Company's control and may cause actual results to differ from management's expectations.
First Aviation Services Inc.
Consolidated Condensed Statements of Operations
(in thousands, except share amounts)
(unaudited)
Three Months Year Ended
Ended January 31, January 31,
2002 2001 2002 2001
Net Sales $25,608 $24,955 $105,696 $97,550
Cost of Sales 20,194 19,807 83,722 76,682
Gross Profit 5,414 5,148 21,974 20,868
Selling, general and
administrative expenses 4,837 5,072 19,854 19,733
Operating income before
corporate expenses 577 76 2,120 1,135
Corporate expenses 559 741 2,628 2,934
Litigation (income)
expense (937) 241 (735) 501
Operating income (loss)
from continuing
operations 955 (906) 227 (2,300)
Net interest and other
income (expenses) (87) 200 301 1,417
Minority interest in
subsidiary (11) (11) (42) (42)
Income (loss) before
income taxes 857 (717) 486 (925)
(Provision) benefit for
income taxes (232) 228 (194) 349
Income (loss) from
continuing operations 625 (489) 292 (576)
Loss from discontinued
operations, net of benefit
for income taxes of ($710)
and ($1,100) respectively - (1,090) - (1,847)
Income (loss) from disposal
of subsidiary, net of
provision (benefit) for
income taxes of $175,
($199), $580, and ($199),
respectively 253 (386) 960 593
Net income (loss) $ 878 $(1,965) $ 1,252 $(1,830)
First Aviation Services Inc.
Consolidated Condensed Statements of Operations (continued)
(in thousands, except share amounts)
(unaudited)
Three Months Year Ended
Ended January 31, January 31,
2002 2001 2002 2001
Basic net income (loss)
per common share:
Income (loss) from
continuing operations $ 0.09 $ (0.07) $ 0.04 $ (0.08)
Loss from discontinued
operations - (0.14) - (0.24)
Income (loss) from disposal
of subsidiaries 0.03 (0.05) 0.13 0.08
Basic net income (loss) per
common share $ 0.12 $ (0.26) $ 0.17 $ (0.24)
Shares used in computation
of basic net income
(loss) per common share 7,206,559 7,533,062 7,197,941 7,720,520
Net income (loss) per
common share -
assuming dilution:
Income (loss) from
continuing operations $ 0.09 $ (0.07) $ 0.04 $ (0.08)
Loss from discontinued
operations - (0.14) - (0.24)
Income (loss) from disposal
of subsidiaries 0.03 (0.05) 0.13 0.08
Net income (loss) per
common share - assuming
dilution $ 0.12 $ (0.26) $ 0.17 $ (0.24)
Shares used in computation
of basic net income
(loss) per common share
- assuming dilution 7,217,343 7,533,062 7,208,725 7,720,520
First Aviation Services Inc.
Consolidated Condensed Balance Sheets
(in thousands)
January 31, January 31,
2002 2001
(unaudited) (a)
Assets
Current assets:
Cash and cash equivalents $31,113 $31,855
Trade receivables, net 15,396 15,860
Inventories, net 23,016 21,803
Deferred and refundable income
taxes, prepaid expenses and other 3,034 4,849
Total current assets 72,559 74,367
Plant and equipment, net 4,100 4,638
Goodwill and other intangibles, net 3,885 1,709
------- -------
$80,544 $80,714
Liabilities and stockholders'
equity Current liabilities:
Accounts payable $11,464 $13,496
Accrued liabilities 2,748 4,321
Income taxes payable 1,293 2,120
Minority interest 1,041 -
Revolving line of credit and
current portion of obligations
under capital leases 180 11,757
Total current liabilities 16,726 31,694
Revolving line of credit 14,800 -
Minority interest - 1,041
Obligations under capital leases - 147
Total liabilities 31,526 32,882
Stockholders' equity:
Common stock 91 91
Additional paid-in capital 38,516 38,625
Retained earnings 20,728 19,476
Accumulated other comprehensive
loss (193) -
Treasury stock (10,124) (10,360)
Total stockholders' equity 49,018 47,832
Total liabilities and
stockholders' equity $80,544 $80,714
(a) Balances were derived from the audited balance sheet as of January
31, 2001
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