First Aviation Announces Record Sales and Profits.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)--Sept. 17, 2001 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 revenues for the second quarter of $27.6 million and record gross profit for the quarter of $5.7 million. For the quarter ended July July: see month. 31, 2001, 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 14.7% from $24.0 million for the second quarter of the prior year. Gross profit for the quarter increased 6.3% from $5.4 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, more than doubled to $0.7 million from $0.3 million in the prior year. Income 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 was $0.01 per share, as compared to a loss of $0.01 for the prior year quarter. During the three months ended July 31, 2001 the Company recorded a credit, net of applicable income taxes, of $0.7 million, or $0.10 per share related to the disposal of discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. . The credit is due to the reduction of accruals Accruals Accounts on a balance sheet that represent liabilities and non-cash-based assets used in accrual-based accounting. These accounts include, among many others, accounts payable, accounts receivable, goodwill, future tax liability and future interest expense. previously recorded in connection with the disposition Act of disposing; transferring to the care or possession of another. The parting with, alienation of, or giving up of property. The final settlement of a matter and, with reference to decisions announced by a court, a judge's ruling is commonly referred to as disposition, regardless of of a 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. . For the first half of the fiscal year ending January January: see month. 31, 2002 net sales increased 14.6% to $53.1 million from $46.4 million reported for the first half of the last fiscal year. Gross profit for the same periods increased 7.8% to $10.9 million from $10.1 million reported in the prior 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 "While we had a record quarter our hearts are with those who lost so much. We are working diligently dil·i·gent adj. Marked by persevering, painstaking effort. See Synonyms at busy. [Middle English, from Old French, from Latin d to determine the effects that last week's tragedies will have on our business." Mr. Aaron Aaron (âr`ən), in the Bible, the brother of Moses and his spokesman in Egypt, and the first high priest of the Hebrews. He is presented as the instrument of God in performing many signs, such as the turning of his rod into a serpent and P. Hollander, Chairman of the Board added, "Given the uncertainty we face, we are fortunate to have a strong balance sheet with approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $33 million of cash. We stand ready to assist our customers in rebuilding our nation's aviation infrastructure." 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 commercial and general aviation aircraft. Its operations include 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. "). 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 supply chain management services, 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 the fastest growing supplier of aviation products and inventory management solutions in the industry. The Company will host a conference call to discuss second quarter earnings and recent events on a later date. 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 outcome or results thereof which are unknown to management at this time, the Company's ability to obtain parts from its principal suppliers on a timely basis, market and economic conditions, aircraft operators and 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 carriers utilized by the Company, 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 Six Months
Ended July 31, Ended July 31,
-------------- --------------
2001 2000 2001 2000
---- ---- ---- ----
Net Sales $ 27,564 $ 24,039 $ 53,136 $ 46,374
Cost of Sales 21,875 18,685 42,238 36,261
----------- ----------- ----------- -----------
Gross Profit 5,689 5,354 10,898 10,113
Selling, general and
administrative
expenses 4,982 5,043 9,716 9,574
----------- ----------- ----------- -----------
Operating income
before corporate
expenses 707 311 1,182 539
Corporate expenses 731 829 1,312 1,576
----------- ----------- ----------- -----------
Operating loss from
continuing
operations (24) (518) (130) (1,037)
Net interest income
and other 113 367 325 898
Minority interest in
subsidiary (11) (11) (21) (21)
----------- ----------- ----------- -----------
Income (loss) before
income taxes 78 (162) 174 (160)
(Provision) benefit
for income taxes (8) 91 (17) 102
----------- ----------- ----------- -----------
Income (loss) from
continuing
operations 70 (71) 157 (58)
Loss from
discontinued
operations, net of
benefit for income
taxes of $150 and
$216, respectively - (291) - (419)
Income from disposal
of subsidiary, net
of provision for
income taxes of $405
and $405,
respectively 707 - 707 -
----------- ----------- ----------- -----------
Net income (loss) $ 777 $ (362) $ 864 $ (477)
=========== =========== =========== ===========
First Aviation Services Inc.
Consolidated Condensed Statements of Operations (continued)
(in thousands, except share amounts)
(unaudited)
Three Months Six Months
Ended July 31, Ended July 31,
-------------- --------------
2001 2000 2001 2000
---- ---- ---- ----
Basic net income
(loss) per common
share:
Income (loss) from
continuing
operations $ 0.01 $ (0.01) $ 0.02 $ (0.01)
Loss from
discontinued
operations - (0.04) - (0.05)
Income from disposal
of subsidiary 0.10 - 0.10 -
----------- ----------- ----------- -----------
Basic net income
(loss) per common
share $ 0.11 $ (0.05) $ 0.12 $ (0.06)
=========== =========== =========== ===========
Shares used in
computation of basic
net income (loss)
per common share 7,194,419 7,682,082 7,190,502 7,833,311
=========== =========== =========== ===========
Net income (loss) per
common share -
assuming dilution:
Income (loss) from
continuing
operations $ 0.01 $ (0.01) $ 0.02 $ (0.01)
Loss from
discontinued
operations - (0.04) - (0.05)
Income from disposal
of subsidiary 0.10 - 0.10 -
----------- ----------- ----------- -----------
Net income (loss) per
common share
- assuming dilution $ 0.11 $ (0.05) $ 0.12 $ (0.06)
=========== =========== =========== ===========
Shares used in
computation of net
income (loss) per
common share
- assuming dilution 7,211,742 7,682,082 7,199,785 7,833,311
=========== =========== =========== ===========
First Aviation Services Inc.
Consolidated Condensed Balance Sheets
(in thousands)
July 31, January 31,
2001 2001
----------- -----------
(Unaudited) *
Assets
Current assets:
Cash and cash equivalents $ 32,914 $ 31,855
Trade receivables 16,655 15,860
Inventories 23,112 21,803
Deferred and refundable income taxes, 3,905 4,849
prepaid expenses and other
----------- -----------
Total current assets 76,586 74,367
Plant and equipment, net 4,419 4,638
Goodwill, net 1,676 1,709
----------- -----------
$ 82,681 $ 80,714
=========== ===========
Liabilities and stockholders' equity
Current liabilities:
Accounts payable $ 14,411 $ 13,496
Accrued liabilities 2,288 4,321
Income taxes payable 1,910 2,120
Revolving line of credit and current
portion of obligations under
capital leases 250 11,757
----------- -----------
Total current liabilities 18,859 31,694
Revolving line of credit 14,000 -
Minority interest 1,041 1,041
Obligations under capital leases 23 147
----------- -----------
Total liabilities 33,923 32,882
Stockholders' equity:
Common stock 91 91
Additional paid-in capital 38,615 38,625
Retained earnings 20,340 19,476
Treasury stock (10,288) (10,360)
----------- -----------
Total stockholders' equity 48,758 47,832
----------- -----------
Total liabilities and stockholders' equity $ 82,681 $ 80,714
=========== ===========
* Balances were derived from the audited balance sheet as of January
31, 2001
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