First Aviation Announces Record Third Quarter Revenues and Gross Profit Despite Industry Turmoil.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. 10, 2001 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 revenues for the third quarter of $27.0 million and record gross profit for the quarter of $5.7 million. For the quarter ended October October: 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 2.8% from $26.2 million for the third quarter of the prior year. Gross profit for the quarter increased 1.0% from $5.6 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, decreased to $0.4 from $0.5 million in the prior year. The Company incurred a net loss of $0.07 per share for the quarter. Results for the quarter include the impact of its previously announced acquisition of Superior Air Parts, Inc. ("Superior") in August 2001. On a 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 basis the Company incurred a net loss for the quarter of $0.07 per share, as compared to a net loss of $0.01 per share for the prior year quarter. During the quarter the Company strengthened its inventory reserves by $0.3 million. The Company also incurred certain other non-recurring charges of $0.3 million, principally for severance The act of dividing, or the state of being divided. The term severance has unique meanings in different branches of the law. Courts use the term in both civil and criminal litigation in two ways: first, when dividing a lawsuit into two or more parts, and second, when , partially as a result of a reduction in force brought about by the terrorists attacks that occurred on September September: see month. 11th. Without such charges the Company would have had net income of $0.01 per share for the quarter. 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. ), "This probably was the most difficult quarter we have faced. We were extremely saddened by the tragic events that occurred during the quarter, which resulted in our entire industry being thrown into turmoil. Under these difficult, trying circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or I am extremely proud of the way our employees came together and handled the situation. The days ahead still will be difficult but I am confident that we will continue to do well and grow." 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, "This was a quarter of opposites. During the first half of the quarter we continued to experience strong, double digit Noun 1. double digit - a two-digit integer; from 10 to 99 integer, whole number - any of the natural numbers (positive or negative) or zero; "an integer is a number that is not a fraction" growth. After the tragic events of September 11th we faced unprecedented challenges. The entire industry shut down for a period of time and has not yet recovered. Our industry changed literally overnight, and we quickly responded by reviewing the way we approach our business. We took the actions needed to match our cost structure to our new sales model by reducing our SG&A expense by $2.5 million annually, and we reexamined our balance sheet. These actions had a significant negative impact on our results for this quarter. However, we continue to focus on new business opportunities, and look forward to the recovery of our industry. The growth this fiscal year is due to our investments in technology, new product lines and international expansion. We are optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op about our long term outlook, especially in the area of 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. ." For the first nine months of the fiscal year ending January January: see month. 31, 2002 net sales increased 10.3% to $80.1 million from $72.6 million reported for the first nine months of the prior fiscal year. Gross profit over the same periods increased 5.3% to $16.6 million from $15.7 million reported in the prior year. For the nine months ended October 31, 2001, the Company incurred a net loss from continuing operations of $0.05 per share, after non-recurring charges, compared to a net loss of $0.01 per share for the prior year. Over the same period the Company had net income of $0.05 per share, compared to $0.02 per share in the prior year. Year to date results include the impact of the acquisition of Superior. 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 the fastest growing provider of aviation products and inventory management solutions in the industry. The Company will host a conference call to discuss third quarter results on Monday Monday: see week. , December December: see month. 10, 2001 at 4:00 pm EST EST electroshock therapy. EST abbr. electroshock therapy . Interested parties should call 800/370-0906 before 3:50 pm EST on December 10, 2001. A replay will be available for 48 hours. Please call 877/519-4471; PIN is 3007996. 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 from its principal suppliers on a timely basis, changes in market and economic conditions, especially those currently facing the aviation industry as a whole, the effects of fuel costs on the Company's customers, 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 Nine Months
Ended October 31, Ended October 31,
----------------- -----------------
2001 2000 2001 2000
---- ---- ---- ----
Net Sales $26,953 $26,222 $80,088 $72,596
Cost of Sales 21,291 20,615 63,528 56,876
------- ------- ------- -------
Gross Profit 5,662 5,607 16,560 15,720
Selling, general
and administrative
expenses 5,299 5,089 15,016 14,662
------- ------- ------- -------
Operating income
before corporate
expenses 363 518 1,544 1,058
Corporate expenses 960 876 2,271 2,453
------ ------ ------ ------
Operating loss from
continuing operations (597) (358) (727) (1,395)
Net interest income
and other 64 321 388 1,218
Minority interest
in subsidiary (11) (10) (31) (31)
------ ------ ------ ------
Loss before
income taxes (544) (47) (370) (208)
Benefit for
income taxes 54 18 37 120
---- ---- ---- ----
Loss from
continuing operations (490) (29) (333) (88)
Loss from discontinued
operations, net of
benefit for
income taxes of $173
and $389, respectively -- (337) -- (756)
Income from disposal of
subsidiary, net of
provision for
income taxes of $-,
$-, $405, and $-,
respectively -- 979 707 979
---- ---- ---- ----
Net income (loss) $ (490) $ 613 $ 374 $ 135
======= ======= ======= =======
First Aviation Services Inc.
Consolidated Condensed Statements of Operations (continued)
(in thousands, except share amounts)
(unaudited)
Three Months Nine Months
Ended October 31, Ended October 31,
----------------- -----------------
2001 2000 2001 2000
---- ---- ---- ----
Basic net income (loss)
per common share:
Loss from
continuing operations $ (0.07) $ (0.01) $ (0.05) $ (0.01)
Loss from discontinued
operations - (0.04) - (0.10)
Income from disposal
of subsidiary - 0.13 0.10 0.13
------- ------- ------- -------
Basic net income (loss)
per common share $ (0.07) $ 0.08 $ 0.05 $ 0.02
======= ======= ======= =======
Shares used in computation
of basic net income
(loss) per common share 7,204,125 7,687,661 7,195,093 7,784,426
======= ======= ======= =======
Net income (loss) per
common share -
assuming dilution:
Loss from
continuing operations $ (0.07) $ (0.01) $ (0.05) $ (0.01)
Loss from discontinued
operations - (0.04) - (0.10)
Income from disposal
of subsidiary - 0.13 0.10 0.13
------- ------- ------- -------
Net income (loss) per
common share
- assuming dilution $ (0.07) $ 0.08 $ 0.05 $ 0.02
======= ======= ======= =======
Shares used in computation
of net income (loss)
per common share -
assuming dilution 7,204,125 7,687,661 7,195,093 7,784,426
======= ======= ======= =======
First Aviation Services Inc.
Consolidated Condensed Balance Sheets
(in thousands)
October 31, January 31,
2001 2001
----------------------------
(Unaudited) (a)
Assets
Current assets:
Cash and cash equivalents $28,622 $31,855
Trade receivables, net 16,236 15,860
Inventories, net 23,770 21,803
Deferred and refundable
income taxes,
prepaid expenses and other 3,811 4,849
------- -------
Total current assets 72,439 74,367
Plant and equipment, net 4,461 4,638
Goodwill and other
intangibles, net 3,977 1,709
------- -------
$80,877 $80,714
======= =======
Liabilities and
stockholders' equity
Current liabilities:
Accounts payable $ 10,775 $ 13,496
Accrued liabilities 2,854 4,321
Income taxes payable 1,910 2,120
Revolving line of credit
and current
portion of obligations
under capital leases 10 11,757
-------- --------
Total current liabilities 15,549 31,694
Revolving line of credit 16,000 --
Minority interest 1,041 1,041
Obligations under
capital leases 194 147
-------- --------
Total liabilities 32,784 32,882
Stockholders' equity:
Common stock 91 91
Additional paid-
in capital 38,608 38,625
Retained earnings 19,850 19,476
Accumulated other
comprehensive loss (201) --
Treasury stock (10,255) (10,360)
-------- --------
Total stockholders'
equity 48,093 47,832
-------- --------
Total liabilities and
stockholders' equity $ 80,877 $ 80,714
======== ========
(a)Balances were derived from the audited balance sheet as of
January 31, 2001
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion