First Aviation Announces Third Consecutive Quarter of Record Net Sales and Record Revenues for the Nine Months Ended October 31, 2004.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. -- 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 supply chain services to the aerospace industry worldwide, today announced record 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 third consecutive quarter. Net sales for the three and nine months ended October October: see month. 31, 2004, were $32.1 million, increasing by 15.5% over the prior year quarter, and $93.3 million, increasing by 18.7% over the first nine months of the prior year, respectively. A net loss of $(130,000) or $(0.02) per share was incurred for the quarter ended October 31, 2004, versus a net income of $17,000 in the quarter ended October 31, 2003. For the nine months ended October, 31, 2004, a net loss was recorded of $(1,374,000) or $(0.19) per share, versus a net loss of $(82,000) or $(0.01) per share for the same period ended October 31, 2003. Mr. 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 had 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" sales growth in the quarter. While we continue to focus on gross margins improvement, we have made a number of changes to our management team that negatively affected general and administrative expenses short term. We generated $1.8 million of cash from operating activities in the Third Quarter on revenue growth of 15.5%." Selling, general and administrative expense increased 9.1% to $4.9 million in the current quarter from $4.5 million in the prior year quarter. For the nine months, selling, general and administrative expense increased 12.0% or $1.6 million, to $14.7 million in the current year from $13.1 million in the prior year. Increases were due to costs related to the increase in sales, including more sales personnel, higher sales commissions, expiration EXPIRATION. Cessation; end. As, the expiration of, a lease, of a contract, or statute. 2. In general, the expiration of a contract puts an end to all the engagements of the parties, except to those which arise from the non- fulfillment of obligations created of property tax incentives, and travel increases. Other items contributing to the increase were costs for ongoing 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. , 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 , employee recruitment recruitment /re·cruit·ment/ (re-krldbomact´ment) 1. the gradual increase to a maximum in a reflex when a stimulus of unaltered intensity is prolonged. 2. and relocation RELOCATION, Scotch law, contracts. To let again to renew a lease, is called a relocation. 2. When a tenant holds over after the expiration of his lease, with the consent of his landlord, this will amount to a relocation. , offset by reductions in other expense categories. Corporate expenses decreased by $66,000 to $602,000 in the quarter ended October 31, 2004, due to expense reductions in several categories. For the nine months ended October 31, 2004, corporate expenses increased $470,000 to $2.4 million from $1.9 million in the prior year period. The Company estimates that it spent approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $250,000 on costs associated with a proxy contest Proxy contest A battle for the control of a firm in which a dissident group seeks, from the firm's other shareholders, the right to vote those shareholders' shares in favor of the dissident group's slate of directors. Also called proxy fights. and a proposal by a dissident shareholder. 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. and its 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. , 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. "), 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 one of the leading providers of supply chain solutions to the aviation industry worldwide. The services the Company provides the aviation industry include the supply of aircraft parts and components, the provision of supply chain management services, overhaul and repair services for brakes and starter/generators, and the assembly of custom hoses. The Company has 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. More information about First Aviation can be found on the World Wide Web at http://www.favs.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. Certain statements discussed in this release constitute 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. Such risks, uncertainties and other important factors include the Company's ability to obtain parts and components from its principal suppliers on a timely basis, depressed Depressed A description of a market, security, or product that is experiencing weak demand and lowering prices. Notes: A depressed market, security, or product implies that prices and volume are low. There are many reasons for a depressed market, security, or product. domestic and international market and economic conditions, especially those currently facing the aviation industry as a whole, the impact of changes in fuel and other 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 related costs, relationships with its customers, the ability of the Company's customers to meet their financial obligations to the Company, the ability to obtain and service supply chain management contracts, changes in regulations or accounting standards, 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 expand, and other items that are beyond the Company's control may cause actual results to differ from management's expectations. In addition, specific consideration should be given to the various factors described in Item 7, "Management's Discussion and Analysis Management's discussion and analysis (MD&A) A report from management to shareholders that accompanies the firm's financial statements in the annual report. It explains the period's financial results and enables management to discuss topics that may not be apparent in the financial of Financial Condition and Results of Operations" in the Company's Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended January January: see month. 31, 2004, and the various factors described in this release. The Company disclaims any obligation or undertaking to provide any updates or revisions ReVisions is a 2004 anthology of alternate history short-stories. It is edited by Julie E. Czerneda and Isaac Szpindel. Contents Title Author The Resonance of Light James Alan Gardner Out of China Julie E. to any forward-looking statement to reflect any change in our expectations or any change in events, conditions, or 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 on which the forward-looking statement is based.
First Aviation Services Inc.
Consolidated Condensed Statements of Operations
(in thousands, except share and per share amounts)
Three months ended
October 31,
2004 2003
---------- ----------
(unaudited)
Net sales $32,050 $27,756
Cost of sales 26,698 22,650
---------- ----------
Gross profit 5,352 5,106
Selling, general and administrative expenses 4,945 4,532
Corporate expenses 602 668
---------- ----------
Loss from operations (195) (94)
Net interest income (expense) and other 148 57
Minority interest in subsidiary (10) (10)
---------- ----------
Loss before income taxes (57) (47)
Benefit (provision) for income taxes (73) 64
---------- ----------
Net loss $(130) $17
========== ==========
Basic net loss per share, and net
loss per share - assuming dilution:
Basic net loss per share, and net
loss per share - assuming dilution $(0.02) $-
========== ==========
Weighted average shares outstanding - basic 7,304,914 7,273,961
========== ==========
Weighted average shares outstanding
- assuming dilution N/A 7,286,529
========== ==========
First Aviation Services Inc.
Consolidated Condensed Statements of Operations
(in thousands, except share and per share amounts)
Nine months ended
October 31,
2004 2003
---------- ----------
(unaudited)
Net sales $93,337 $78,639
Cost of sales 77,604 63,852
---------- ----------
Gross profit 15,733 14,787
Selling, general and administrative expenses 14,694 13,119
Corporate expenses 2,377 1,907
---------- ----------
Loss from operations (1,338) (239)
Net interest income (expense) and other 102 146
Minority interest in subsidiary (31) (31)
---------- ----------
Loss before income taxes (1,267) (124)
Provision for income taxes (107) 42
---------- ----------
Net loss $(1,374) $(82)
========== ==========
Basic net loss per share, and net
loss per share - assuming dilution:
Basic net loss per share, and net
loss per share - assuming dilution $(0.19) $(0.01)
========== ==========
Weighted average shares outstanding - basic 7,297,732 7,262,272
========== ==========
Weighted average shares outstanding
- assuming dilution N/A N/A
========== ==========
First Aviation Services Inc.
Consolidated Condensed Balance Sheets
(in thousands, except share amounts)
October 31, January 31,
2004 2004
----------- -----------
(unaudited) *
Assets
Current assets:
Cash and cash equivalents $25,036 $25,144
Trade receivables, net of allowance for
doubtful accounts of $824 and $1,418,
respectively 17,056 13,499
Inventory, net of allowance slow moving
and obsolete inventory of $1,587 and $1,013,
respectively 21,399 22,344
Prepaid expenses and other 627 1,032
----------- -----------
Total current assets 64,118 62,019
Plant and equipment, net 2,870 2,963
----------- -----------
$66,988 $64,982
=========== ===========
Liabilities and stockholders' equity
Current liabilities:
Accounts payable $12,439 $9,561
Accrued compensation and related
expenses, and other accrued liabilities 2,622 2,376
Income taxes payable 922 939
----------- -----------
Total current liabilities 15,983 12,876
Revolving line of credit 14,500 14,500
Minority interest in subsidiary 1,041 1,041
----------- -----------
Total liabilities 31,524 28,417
Stockholders' equity:
Common stock, $0.01 par value, 25,000,000
shares authorized, 7,304,332 and 7,284,093
shares outstanding 91 91
Additional paid-in capital 38,336 38,375
Retained earnings 6,180 7,554
Accumulated other comprehensive income
(loss) 393 238
----------- -----------
45,000 46,258
Less: Treasury stock, at cost (9,536) (9,693)
----------- -----------
Total stockholders' equity 35,464 36,565
----------- -----------
Total liabilities and stockholders' equity $66,988 $64,982
=========== ===========
* Balances were derived from the audited balance sheet as of January
31, 2004.
First Aviation Services Inc.
Consolidated Condensed Statement of Cash Flows
(in thousands)
Nine months ended
October 31,
2004 2003
----------- --------
(unaudited)
Cash flows from operating activities
Net loss $(1,374) $(82)
Adjustments to reconcile net loss to net
cash from operating activities - non-cash
charges:
Depreciation and amortization 676 854
Compensation paid through issuance of stock 117 92
(Increase) decrease in current assets:
Trade receivables (3,451) (817)
Inventory 1,054 827
Prepaid and other 425 470
Increase (decrease) in current liabilities:
Accounts payable 2,876 542
Accrued compensation and related expenses,
and other accrued liabilities 69 533
Income taxes payable (27) 146
----------- --------
Net cash provided by operating activities 365 2,565
Cash flows from investing activities
Purchases of plant and equipment (579) (352)
Disposals of plant and equipment 3 -
----------- --------
Net cash used in investing activities (576) (352)
Cash flows from financing activities
Borrowings on revolving line of credit 41,650 43,500
Repayments on revolving line of credit (41,650) (43,500)
Principal payments on capital lease obligations
and other - 3
----------- --------
Net cash used in financing activities - 3
----------- --------
Net increase (decrease) in cash and cash
equivalents (211) 2,216
Effect of exchange rates on cash 103 407
Cash and cash equivalents at beginning of period 25,144 26,013
----------- --------
Cash and cash equivalents at end of period $25,036 $28,636
=========== ========
Supplemental cash flow disclosures:
Interest paid $ 30 $ 29
Income taxes paid $ 65 $ (92)
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