First Aviation Announces Third Quarter Net Income.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, 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 products and services to the aerospace industry worldwide, today announced third quarter net income of $0.02 per share on 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 $26.6 million. Gross profit of $6.0 million grew 6.8% on 1.3% lower net sales due to the increasing proportion of logistics services versus traditional distribution sales. The Company had a loss of $0.07 per share in the prior year. For the third quarter ended October October: see month. 31, 2002, net sales were $26.6 million compared to $27.0 million for the prior year. Gross profit increased to $6.0 million from $5.6 million reported in the prior year, while 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. increased to $0.2 million from a loss of $0.6 million in the prior year. Net income increased $0.6 million to $0.1 million, or $0.02 per share, compared to a loss of $0.5 million, or $0.07 per share, in the third quarter of the prior year. Prior year results included certain non-recurring charges, 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 , due to cost cutting measures taken after September September: see month. 11th. 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 "Our results compared to last year's difficult third quarter and the second quarter of this year have improved. We are building positive earnings momentum from our logistics initiative, and that impact is starting to show on our bottom line. Going forward, we will be expanding our range of service offerings and increasing the number of logistics customers. On the distribution side results were down slightly compared to the prior year primarily due to the sluggish aviation industry and general economic conditions. While we believe that we are outperforming our peer group, we are focused on improving results in distribution. We are very pleased with operating cash flow Operating cash flow Earnings before depreciation minus taxes. Measures the cash generated from operations, not counting capital spending or working capital requirements. for the quarter of $2.0 million, and $4.7 million year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. . We have a very strong balance sheet with $4.78 per share of cash." For the nine months ended October 31, 2002, net sales were $77.8 million, a decrease of 2.9% compared to $80.1 million of net sales reported for the same period of the prior year. Gross profit increased 4.0% to $17.1 million from $16.5 million. The increase in gross profit also was due to the increasing proportion of logistics services versus traditional distribution sales. The Company effectively broke even from operations for the nine months ended October 31, 2002, compared to a loss of $0.7 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 before cumulative effect of accounting change was $0.1 million, or $0.01 per share, compared to a loss of $0.3 million, or $0.05 per share, in the prior year. The Company had income from disposition of subsidiary of $0.7 million, or $0.10 per share, during the nine months ended October 31, 2001. There was no such income or loss reported in the current year. In addition, in the first quarter of the current year the Company adopted Financial Accounting Standards Board Financial Accounting Standards Board (FASB) Board composed of independent members who create and interpret Generally Accepted Accounting Principles (GAAP). Pronouncement No. 142, "Goodwill and Other Intangible Assets Intangible Asset An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. " ("FAS 142"). Upon adoption the Company took a one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. , non-cash charge Non-Cash Charge A charge off, made by a company against earnings, that does not require an initial outlay of cash. Notes: Non-cash charges are typically against the depreciation, amortization, and depletion accounts on a company's balance sheet. of $2.7 million, or $0.38 per share after applicable income tax benefit, to write-off Write-Off A reduction in the value of an asset or earnings by the amount of an expense or loss. Companies are able to write off certain expenses that are required to run the business, or have been incurred in the operation of the business and detract from retained revenues. the carrying value Carrying Value Also know as "book value," it is a company's total assets minus intangible assets and liabilities, such as debt. Notes: This is different than market value, as it can be higher or lower depending on the circumstances. of its goodwill. The adoption of FAS 142 represented a change in accounting principle, and the cumulative effect was reported on a separate line in the Consolidated Condensed con·dense v. con·densed, con·dens·ing, con·dens·es v.tr. 1. To reduce the volume or compass of. 2. To make more concise; abridge or shorten. 3. Physics a. Statements of Operations. After this charge, for the nine months ended October 31, 2002 the Company incurred a net loss of $2.7 million, or $0.37 per share, compared to net income of $0.4 million, or $0.05 per share for the nine months ended October 31, 2001. 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 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. . 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 and technology solutions, including inventory management services, to the aerospace industry worldwide. 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 premier suppliers of aviation products, supply chain management services and technology solutions in the industry. The Company will host a conference call to discuss third quarter results on Wednesday Wednesday: see week. , December December: see month. 11, 2002 at 10:00 AM EST EST electroshock therapy. EST abbr. electroshock therapy . Interested parties should call 1 (800) 322-0079 before 9:50 AM EST. A replay will be available through December 13, 2002. Please call (877) 519-4471; PIN is 3643252. 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 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 fuel and other freight related costs, the Company's 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 ended Nine months ended
October 31, October 31,
2002 2001 2002 2001
---------- ---------- ---------- ----------
Net sales $26,611 $26,953 $77,775 $80,088
Cost of sales 20,660 21,383 60,666 63,636
---------- ---------- ---------- ----------
Gross profit 5,951 5,570 17,109 16,452
Selling, general and
administrative expenses 5,126 5,207 15,239 14,908
---------- ---------- ---------- ----------
Operating income before
corporate expenses 825 363 1,870 1,544
Corporate expenses 647 960 1,881 2,271
---------- ---------- ---------- ----------
Income (loss) from
operations 178 (597) (11) (727)
Net interest income and
other 31 64 130 388
Minority interest in
subsidiary (11) (11) (31) (31)
---------- ---------- ---------- ----------
Income (loss) from
continuing operations
before income taxes 198 (544) 88 (370)
Benefit (provision) for
income taxes (77) 54 (34) 37
---------- ---------- ---------- ----------
Income (loss) from
continuing operations
before cumulative
effect of accounting
change 121 (490) 54 (333)
Income from disposition of
subsidiary, net of
provision for income taxes
of $405 - - - 707
Cumulative effect of
accounting change, net
of benefit for income
taxes of $922 - - (2,735) -
---------- ---------- ---------- ----------
Net income (loss) $121 $(490) $(2,681) $374
========== ========== ========== ==========
Basic net income (loss)
per common share, and net
income (loss) per common
share - assuming dilution:
Income (loss) from
continuing operations
before cumulative
effect of accounting
change $0.02 $(0.07) $0.01 $(0.05)
Income from
disposition of
subsidiary - - - 0.10
Cumulative effect of
accounting change - - (0.38) -
---------- ---------- ---------- ----------
Basic net income (loss) per
common share, and net
income (loss) per common
share - assuming dilution $0.02 $(0.07) $(0.37) $0.05
========== ========== ========== ==========
Weighted average common
shares outstanding -
basic 7,227,860 7,204,125 7,220,492 7,195,093
========== ========== ========== ==========
Weighted average common
shares outstanding
- assuming dilution 7,227,860 7,204,125 7,226,723 7,195,093
========== ========== ========== ==========
First Aviation Services Inc.
Consolidated Condensed Balance Sheets
(in thousands, except share amounts)
October 31, January 31,
2002 2002
-----------------------
(unaudited) (a)
Assets
Current assets:
Cash and cash equivalents $34,540 $31,113
Trade receivables, net of allowance for
doubtful accounts of $752 and $707,
respectively 14,605 15,396
Inventory, net of allowance for obsolete
and slow moving inventory of $991 and
$885, respectively 20,743 23,016
Prepaid expenses, deferred income taxes
and other 4,637 3,034
----------- -----------
Total current assets 74,525 72,559
Plant and equipment, net 3,889 4,100
Goodwill and other intangibles, net 48 3,885
----------- -----------
$78,462 $80,544
=========== ===========
Liabilities and stockholders' equity
Current liabilities:
Accounts payable $12,651 $11,464
Accrued compensation and related expenses,
and other accrued liabilities 2,507 2,748
Income taxes payable 1,265 1,293
Obligations under capital leases 45 180
----------- -----------
Total current liabilities 16,468 15,685
Revolving line of credit 14,500 14,800
Minority interest in subsidiary 1,041 1,041
----------- -----------
Total liabilities 32,009 31,526
Stockholders' equity:
Common stock, $0.01 par value, 25,000,000
shares authorized, 7,231,377 and 7,213,753
shares outstanding, respectively 91 91
Additional paid-in capital 38,478 38,516
Retained earnings 18,047 20,728
Accumulated other comprehensive loss (160) (193)
----------- -----------
56,456 59,142
Less: Treasury stock, at cost (10,003) (10,124)
----------- -----------
Total stockholders' equity 46,453 49,018
----------- -----------
Total liabilities and stockholders' equity $78,462 $80,544
=========== ===========
(a) Balances were derived from the audited balance sheet as of January
31, 2002.
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