First Aviation Announces Record Revenue and Gross Profit.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)--Dec. 6, 2000 First Aviation Services Inc. (Nasdaq:FAVS FAVS Fabbrica Armi Valle Susa FAVS Fighter Attack Visual System ), a leading provider of services to the aerospace industry worldwide, today announced record quarterly sales of $25.6 million and record gross profit of $5.0 million. 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 21.7% for the quarter ended October October: see month. 31, 2000 from $21.1 million for the third quarter of the prior year. Gross profit for the quarter increased 27.3% from $3.9 million reported in the prior year. Gross margin increased to 19.6% versus 18.7% for the third quarter of the prior fiscal year. Mr. Michael Michael, archangel Michael (mī`kəl) [Heb.,=who is like God?], archangel prominent in Christian, Jewish, and Muslim traditions. In the Bible and early Jewish literature, Michael is one of the angels of God's presence. C. Culver cul·ver n. A dove or pigeon. [Middle English, from Old English culufre, from Vulgar Latin *columbra, from Latin columbula, diminutive of columba, dove.] , 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 Services, noted that, "During the quarter we experienced sales and gross profit growth in all our product lines. We are especially pleased to see continued improvement in gross margin." The Company's net loss 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 ended October 31, 2000 was $0.05 per share compared to a net loss from continuing operations of $0.03 per share for the same period of the prior fiscal year. Excluding the loss from AeroV, its e-commerce e-commerce, commerce conducted over the Internet, most often via the World Wide Web. E-commerce can apply to purchases made through the Web or to business-to-business activities such as inventory transfers. subsidiary, and certain out of the ordinary legal expenses, the Company earned $0.01 per share for the quarter. For the nine months ended October 31, 2000, net sales increased 19.7% to $70.9 million versus $59.2 million reported for the comparable period of the prior year. Gross profit over the same time period increased 24.9% to $14.0 million from $11.2 million, while gross margin increased to 19.7% from 18.9%. The Company's net loss from continuing operations for the nine months ended October 31, 2000 was $0.11 per share compared to a net loss of $0.06 per share, before a non-recurring charge, for the same period of the prior fiscal year. Without the expenses associated with AeroV, start-up Start-up The earliest stage of a new business venture. expenses incurred in connection with the Company's Asia Pacific and European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. operations, as well as certain legal expenses related to legacy matters, the Company estimates that its net income for the nine months ended October 31, 2000 would have been $0.06 per share, an improvement of $0.12 per share over the same period of the prior fiscal year. Results of operations for the three and nine months ended October 31, 1999 have been restated in order to reflect the disposition of a former subsidiary. During the three months ended October 31, 2000 the Company had net income related to the discontinued operation discontinued operation A segment of a business that has been abandoned or sold or for which plans for one or another of these actions have been approved. See also continuing operations. of approximately $1.0 million, or $0.13 per share, as a result of the finalization Writing the table of contents (TOC) on a recordable CD or DVD disc. The finalization process ensures that the disc can be played back on most CD and DVD players. See disc-at-once. of income taxes relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the sale. In the third quarter of the prior fiscal year, income from the discontinued operation amounted to $1.9 million or $0.21 per share. Mr. Culver added, "We have continued to demonstrate our ability to grow while maintaining one of the strongest balance sheets in the sector. With approximately $35 million of cash, or $4.50 per share, and credit facilities credit facilities npl → facilidades fpl de crédito credit facilities npl → facilités fpl de paiement credit facilities in place, we are in a position to enhance value through opportunistic opportunistic /op·por·tu·nis·tic/ (op?er-tldbomacn-is´tik) 1. denoting a microorganism which does not ordinarily cause disease but becomes pathogenic under certain circumstances. 2. acquisitions and continued investment in new service offerings and international expansion." 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 services to aircraft operators of some of the most widely used military, commercial and general aviation aircraft. Its operations include 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. ) and AeroV Inc. (AeroV). 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. , is a leader in the supply of aerospace products and services worldwide. In addition to the product lines it distributes, API offers logistics services and overhaul and repair services for brakes and starter/generators and builds custom hose assemblies. With locations in the U.S., Canada and Asia Pacific, plus global partners throughout the world, API continues to be the fastest growing supplier of aviation products and inventory management solutions in the industry. AeroV, based in Westport, Connecticut, is a mission-critical procurement The fancy word for "purchasing." The procurement department within an organization manages all the major purchases. platform developed exclusively for the aerospace industry that delivers value to every user, providing a practical tool for capturing the benefits of e-commerce without disrupting current business practices and processes. The AeroV System integrates with legacy systems, giving every company the ability to communicate using full SPEC (1) See specs and specification. (2) (SPEC) (Standard Performance Evaluation Corporation, Warrenton, VA, www.specbench.org) An organization founded in 1988 to establish standard benchmarks for computers. 2000 and ANSI (American National Standards Institute, New York, www.ansi.org) A membership organization founded in 1918 that coordinates the development of U.S. voluntary national standards in both the private and public sectors. It is the U.S. member body to ISO and IEC. X.12 messaging without costly set-up fees or downtime The time during which a computer is not functioning due to hardware, operating system or application program failure. . The Company will host a conference call to discuss third quarter earnings on December 7, 2000 at 10:00 am EST EST electroshock therapy. EST abbr. electroshock therapy . Interested parties should call 1 (800) 865-4435 before 9:45 am EST on December 7, 2000. More information about First Aviation can be found on the World Wide Web at http://www.firstaviation.com and apiparts.com and aerov.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 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 from its principal suppliers on a timely basis, market conditions, 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 per share amounts)
(unaudited)
Three Months Nine Months
Ended October 31, Ended October 31,
2000 1999 2000 1999
---- ---- ---- ----
Net sales $ 25,628 $ 21,053 $ 70,856 $ 59,175
Cost of sales 20,616 17,115 56,876 47,984
--------- --------- --------- ---------
Gross profit 5,012 3,938 13,980 11,191
Selling, general and
administrative expenses 4,494 3,422 12,922 10,037
E-commerce initiative 582 - 1,218 -
--------- --------- --------- ---------
Operating income before
corporate expenses and
non-recurring charge (64) 516 (160) 1,154
Corporate expenses 876 440 2,452 1,603
Non-recurring charge - 410 - 410
--------- --------- --------- ---------
Operating loss from
continuing operations (940) (334) (2,612) (859)
Net interest income
(expense) and other 321 (152) 1,218 (448)
Minority interest in
subsidiaries 61 (7) 40 (31)
--------- --------- --------- ---------
Loss before benefit for
income taxes (558) (493) (1,354) (1,338)
Benefit for income taxes 192 197 510 535
--------- --------- --------- ---------
Net loss from continuing
operations (366) (296) (844) (803)
Net income from
discontinued operation,
net of provision for
income taxes of $-, $391,
$- and $645, for the three
and nine months ended
October 31, 2000 and 1999,
respectively 979 1,890 979 5,170
--------- --------- --------- ---------
Net income $ 613 $ 1,594 $ 135 $ 4,367
========= ========= ========= =========
Basic net income (loss)
per common share and net
income (loss) per share -
assuming dilution:
Net loss from continuing
operations per common
share $ (0.05) $ (0.03) $ (0.11) $ (0.09)
Net income from
discontinued operation
per common share 0.13 0.21 0.13 0.57
--------- --------- --------- ---------
Basic net income per
common share and net
income per common share -
assuming dilution $ 0.08 $ 0.18 $ 0.02 $ 0.48
========= ========= ========= =========
Shares used in computation
of net income per common
share and net income per
common share - assuming
dilution 7,687,661 9,016,039 7,784,426 9,008,448
========= ========= ========= =========
First Aviation Services Inc.
Consolidated Condensed Balance Sheets
(in thousands)
October 31, January 31,
2000 2000
---- ----
(unaudited) (1)
Assets
Current assets:
Cash and cash equivalents $ 34,932 $ 50,104
Trade receivables, net 16,368 13,810
Inventories 19,985 14,142
Deferred income taxes, prepaid
expenses and other 3,886 2,582
---------- ----------
Total current assets 75,171 80,638
Plant and equipment, net 6,170 3,980
Goodwill, net 1,725 1,774
---------- ----------
Total assets $ 83,066 $ 86,392
========== ==========
Liabilities and stockholders' equity
Current liabilities:
Accounts payable $ 12,195 $ 8,264
Other accrued liabilities 3,915 7,908
Income taxes payable 1,683 6,858
Revolving line of credit and current
portion of obligations under capital
leases 11,764 163
---------- ----------
Total current liabilities 29,557 23,193
Revolving line of credit - 7,900
Minority interest 1,170 1,041
Obligations under capital leases 214 115
---------- ----------
Total liabilities 30,941 32,249
Stockholders' equity:
Common stock 91 91
Additional paid-in capital 38,736 38,615
Retained earnings 21,442 21,306
Treasury stock (8,144) (5,869)
---------- ----------
Total equity 52,125 54,143
---------- ----------
$ 83,066 $ 86,392
========== ==========
(1) Balances were derived from the audited balance sheet as of January
31, 2000.
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