Kellstrom Industries Announces Organizational Changes Following Acquisition of Aviation Sales Parts Business.Business Editors
SUNRISE Sunrise, city (1990 pop. 64,407), Broward co., SE Fla., a residential suburb 8 mi (13 km) W of Fort Lauderdale; inc. 1961 as Sunrise Golf Village. It is a major office and commercial center and the site of Sawgrass Mills, one of the largest malls in the United States. , Fla.--(BUSINESS WIRE)--Jan. 16, 2001
Following the completion of its acquisition of the aircraft and engine parts resale resale n. selling again, particularly at retail. In many states a "resale license" or "resale number" is required so that the state can monitor the collection of sales tax on retail sales.
RESALE. business of Aviation Sales Company ("AVSP") (the "Transaction") on December 1, 2000, Kellstrom Industries, Inc. ("Kellstrom") (Nasdaq: KELL) today reported that it has, as planned, reorganized re·or·gan·ize
v. re·or·gan·ized, re·or·gan·iz·ing, re·or·gan·iz·es
To organize again or anew.
To undergo or effect changes in organization. from four product-oriented divisions to two customer/market focused business units, the Commercial Division and the Defense Division, providing value added Value Added
The enhancement a company gives its product or service before offering the product to customers.
This can either increase the products price or value. nose-to-tail inventory management programs to the global commercial and military aviation markets.
Zivi R. Nedivi, Kellstrom's 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. and Yoav Stern, Chairman, commented: "The transformation is in full motion, and we expect its completion during the next 90 days. The synergies and cost-savings anticipated by the integration are being realized. The streamlined organization is now comprised of a staff of approximately 475, following the elimination of 220 positions since the completion of the Transaction. Additionally, during 2001, we are actively pursuing the disposition of 7 facilities, which are either owned or leased by us, as we gradually move our entire inventory and most of our operations to the new 545,000 square foot building in Miramar, which we leased as part of the Transaction."
Messrs. Nedivi and Stern continued, "We have budgeted overhead savings in excess of $15 million for the combined company for 2001, and expect a decrease in debt, resulting from the above-mentioned changes. In addition to its enormous strategic importance, we expect the acquisition of AVSP will have an accretive impact on earnings in 2001 compared to what would have bean realized without the acquisition, with further profitability gains to be achieved in 2002. In parallel, there will be charges and adjustments to the balance sheet taken in the fourth quarter of 2000 and in the first quarter of 2001, in association with this acquisition and the 7-year mezzanine mez·za·nine
1. A partial story between two main stories of a building.
2. The lowest balcony in a theater or the first few rows of that balcony. debt that was raised in November 2000, including:
- Severance costs, - Cost of organizational and other realignments, - Moving costs, and - Financing costs related to the Transaction
all of which are expected to have a short-term adverse impact on our quarterly earnings. We do not yet have the final estimate of 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 and other charges, and we anticipate finalizing the process during the first quarter of 2001. We expect all such one-time costs associated with the integration to be recognized prior to the second quarter of 2001."
Messrs. Nedivi and Stern concluded, "We regret the displacement displacement, in psychology: see defense mechanism.
Same as offset. See base/displacement. of personnel caused by the elimination of redundant and outdated out·dat·ed
old-fashioned or obsolete
Adj. 1. positions, however, it is a necessary action for Kellstrom in order to fulfill ful·fill also ful·fil
tr.v. ful·filled, ful·fill·ing, ful·fills also ful·fils
1. To bring into actuality; effect: fulfilled their promises.
2. its responsibilities to its customers, shareholders, banks and current employees. We will be supportive in assisting our former employees with their next steps."
Kellstrom Industries, Inc. is the world's leading aviation inventory management company delivering innovative and value added nose-to-tail programs to the global commercial and military aviation markets. The Company unites cutting edge information technology, including e-commerce, with quality assurance methodologies to provide engines and parts for large turbo-fan engines manufactured by CFMI, General Electric, Pratt & Whitney and Rolls Royce Rolls Royce
the millionaire’s vehicle. [Trademarks: Brewer Dictionary, 928]
See : Luxury , in addition to a full complement of rotables and components for the commercial aircraft they power. Kellstrom is also a premier inventory management and components supplier of engines, components, systems and parts for large military transport aircraft, jet fighters Jet fighter may refer to:
The Company, from time to time, may discuss forward-looking information. This press release contains 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. , including statements regarding expected savings, synergies, decreases in debt, strategic importance, earnings and future profitability of the combined company. These forward-looking statements are based on many assumptions and factors, and are subject to many conditions, including the Company's continuing ability to realize the cost savings and synergies of the reorganization and the Transaction, effectively integrate the acquired business, acquire adequate inventory and to obtain favorable fa·vor·a·ble
1. Advantageous; helpful: favorable winds.
2. Encouraging; propitious: a favorable diagnosis.
3. pricing for such inventory, the ability to arrange for the repair of aircraft engines by third-party contractors prior to resale or lease, competitive pricing for the Company's products, customer concentration, demand for the Company's products which depends upon the condition of the airline industry, ability to collect receivables, government regulation, and the effects of increased indebtedness as a result of the Company's business acquisitions. Except for the historical information contained in this release, all forward-looking statements are estimates by the Company's management and are subject to various risks and uncertainties that may be beyond the Company's control and may cause results to differ from management's current expectations. Certain of these risks are described in the Company's filings with the Securities and Exchange Commission (SEC). Copies of the Company's SEC filings are available from the SEC or may be obtained upon request from the Company. The Company does not undertake any obligation to update the information contained herein, which speaks only as of this date.