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 CLEVELAND, Aug. 4 /PRNewswire/ -- Banner Aerospace, Inc. (NYSE: BAR), a major supplier to the world's air transport industry, today reported an 18 percent increase in earnings on a six percent gain in sales in the first quarter ended June 30, 1993.
 Net income for the current-year quarter rose to $1,418,000, or eight cents per common share, up from $1,201,000, or seven cents per common share, a year earlier. Sales were $67,381,000 versus $63,536,000 a year earlier.
 Noting that operating income before interest charges rose 37 percent from last year's $3,677,000 to $5,042,000 in the current year first quarter, the company said that the earnings improvement reflected the shutdown of two unprofitable operating units in fiscal 1993 as well as the increase in sales.
 It said that sales gains were largely attributable to the growth of its large jet engine and engine components business and to its expanded inventory of aircraft parts as a consequence of the fiscal 1993 acquisition of certain aircraft parts inventory of Pan American World Airways, Inc.
 Banner said that sales of the former Pan Am inventory were contributing to a strong cash inflow which had enabled the company to reduce debt by $7.5 million in the quarter and by $15.4 million from the January 1993 high which included borrowings to complete the $45 million Pan Am purchase.
 The company reported a strong financial position with current assets of $258,766,000 amounting to 8.0 times current liabilities. Working capital at June 30 was $226,377,000 and stockholders' equity totaled $120,132,000, equal to $6.67 per common share.
 Banner Aerospace is a leading international supplier to the aerospace industry. The company's products are divided into four product groups: rotables, hardware, corporate aircraft and insulated wire and cable. The two principal product groups are rotables and hardware. Rotables include flight data recorders, radar and navigation systems, instruments, landing gear and hydraulic and electrical components. The company also sells jet engines and engine parts which it includes in the rotable product group. Hardware includes nuts, bolts, screws, rivets and bearings. The company's corporate aircraft products include helicopters and jet and turboprop airplanes. The company also processes and sells aerospace-quality insulated wire and cable. The company provides a number of services such as immediate shipment of parts in aircraft on ground situations.
 Consolidated Income Statements
 (in thousands, except per share data)
 Three Months
 Period ended June 30, 1993 1992
 Net sales $67,381 $63,536
 Cost of goods sold 47,668 44,534
 Gross profit 19,713 19,002
 Selling, general and
 administrative expenses 14,671 15,325
 Operating income 5,042 3,677
 Interest Expense 2,684 1,696
 Income before taxes 2,358 1,981
 Provision for taxes 940 780
 Net Income $ 1,418 $ 1,201
 Earnings per common share $ .08 $ .07
 Weighted average number of
 shares 18,000 18,000
 Consolidated Balance Sheets
 June 30, 1993 and March 31, 1993
 June 30, March 31,
 1993 1993
 Current Assets
 Cash $ --- $ 2,966
 Receivables 45,349 40,013
 Inventories 211,684 218,676
 Other 1,733 1,422
 Total 258,766 263,077
 Net fixed assets 7,253 7,552
 Other assets 37,803 36,909
 Total $303,822 $307,538
 Current Liabilities
 Bank overdraft $ 1,262 $ ---
 Current debt 267 386
 Accounts payable 16,964 17,302
 Other liabilities 13,896 12,498
 Total 32,389 30,186
 Long-term debt 150,801 158,138
 Other 500 500
 Stockholders' equity 120,132 118,714
 Total $303,822 $307,538
 -0- 8/4/93
 /CONTACT: Eugene W. Juris of Banner Aerospace, Inc., 216-464-3650/

CO: Banner Aerospace, Inc. ST: Ohio IN: ARO AIR SU: ERN

AR -- CL008 -- 9312 08/04/93 11:05 EDT
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Publication:PR Newswire
Date:Aug 4, 1993

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