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Mon, May 17, 2010
Sun, May 16, 2010
Fri, May 14, 2010 
WESTPORT, CT--(Marketwire - May 14, 2010) - First Aviation Services Inc. (
In a letter to shareholders Aaron Hollander, Chairman & CEO, said, "In the fourth quarter of 2009, the Company's sales (which included the acquisitions for part of the period) were $29.4 million, representing an increase of 9.7% over the prior year. Sales increased approximately 4% on a comparable basis exclusive of the acquisitions. In the quarter, EBITDA was $1.0 million and the Company earned $.03 per share before acquisition expenses. Inclusive of acquisition expenses the Company broke even in the last quarter.
For the eleven month period ended December 31, 2009, sales were $100.3 million, about 3.8% below the comparable eleven month period in the prior year. EBITDA was a positive $2.5 million before acquisition expenses and net income before acquisition expenses was $.03 per share. After acquisition expenses, the Company reported a small loss of $0.54 million.
To expand our repair and overhaul capabilities we entered into two strategic acquisitions last year that closed in December. The first was for Kelly Aerospace's maintenance, repair and overhaul business located in Wichita, KS which was renamed Aerospace Turbine Rotables, Inc. or AeTR. The second was for Limco-Piedmont's propeller overhaul division located in Winston-Salem, NC, now operating under the name Piedmont Propulsion Systems, LLC or PPS.
The transactions enhanced our capital base as a result of the sale of approximately 5.8 million newly issued non-voting common shares to a subsidiary of Limco-Piedmont, a wholly owned subsidiary of TAT Technologies Ltd. As a result of the transactions, Limco-Piedmont is a significant, but not controlling, shareholder.
Operationally, Aerospace Products International, Inc., (API) our largest operating subsidiary, made significant progress as we entered into a number of long term agreements with new and existing customers and suppliers:
-- Cirrus Aircraft, a recognized leader in personal aircraft signed with API a multi-year exclusive logistics services agreement to support Cirrus owners, operators and service centers worldwide. -- CAE and API entered into a preferred supplier agreement in support of CAE's Global Academy network. -- Otto Instrument, the leading Honeywell-authorized avionics and instrument repair and overhaul facility, named API as exclusive distributor of avionics and instruments including its repair and overhaul services. -- SAFT, the premier manufacturer of nickel-cadmium batteries in the aerospace industry, authorized API as a worldwide distributor. -- LHTEC, a partnership between Honeywell and Rolls-Royce, signed a new long-term agreement confirming API as their logistics provider of CTS800 spare parts and component repairs through 2018. -- Rolls-Royce signed an additional agreement naming API as the exclusive distributor of Rolls-Royce's CTS800 spare parts through 2018. -- API entered into a number of other authorizations including being named a distributor for ELITE, a simulator manufacturer, and -- FedEx continued to name API as a double platinum supplier every quarter in 2009, among other accomplishments.
The Company's return to profitability and operational achievements came with a great deal of sacrifice on the part of our employees. They worked harder and shared the financial burden during the most dramatic downturn in our industry's history. I am very grateful to the entire team for their incredible dedication.
As we look back on the year just completed and begin 2010, we are a stronger company financially and better balanced geographically with a more diversified and powerful product offering than ever before."
FIRST AVIATION SERVICES INC. Audited Consolidated Condensed Statements of Operations (In Thousands, except share and per share amounts) 11 mos. Ended 12 mos. Ended Dec 31, Jan 31, 2009 2009 ------------- ------------- Net Sales $ 100,332 $ 114,244 Cost of Sales (83,068) (95,037) ------------- ------------- Gross Profit 17,264 19,207 Selling, general & administrative expenses (13,955) (18,723) Corporate expenses (2,037) (1,647) Acquisition expense (683) - ------------- ------------- Income (loss) from operations 589 (1,163) Net interest income (expense) and other 2 3 Interest expense and other, net (1,126) (1,374) ------------- ------------- Net Income (loss) $ (535) $ (2,534) ============= ============= Net Income before acquisition expense $ 148 $ (2,534) ============= ============= Basic net loss per share $ (0.07) $ (0.34) Net loss per share - assuming dilution $ (0.07) $ (0.34) Weighted average shares outstanding - basic 8,250,906 7,465,583 Weighted average shares outstanding - assuming dilution 8,250,906 7,465,583 Please see our forward looking statements at [ www.firstaviation.com/forward ] FIRST AVIATION SERVICES INC. Audited Consolidated Condensed Balance Sheets (In Thousands, except share and per share amounts) Dec 31, Jan 31, 2009 2009 ---------- ---------- Assets Current assets: Cash and cash equivalents $ 1,033 $ 1,304 Trade receivables, net 18,725 14,492 Inventories, net 37,604 29,471 Prepaid expenses and other 2,445 1,362 ---------- ---------- Total current assets 59,807 46,629 Property, plant and equipment, net 2,663 3,253 Goodwill 11,488 - ---------- ---------- Total Assets $ 73,958 $ 49,882 ========== ========== Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 17,091 $ 11,651 Accrued Compensation 407 290 Other accrued liabilities 3,378 1,280 Revolving line of credit 21,326 20,630 Other short-term debt 7,000 - Notes payable 404 537 ---------- ---------- Total current liabilities 49,606 34,388 Subordinated debt: Related party - JEM III, LLC - 2,000 Long term liabilities 677 - ---------- ---------- Total Liabilities 50,283 36,388 Common Stock 91 91 Class A $0.01 par value, 20,000,000 shares authorized, 9,135,699 shares issued Class B $0.01 par value, 6,000,000 shares authorized, 5,766,667 shares issued 58 - Preferred Stock 1,350 - $0.01 par value, 30,000 shares authorized, 13,500 shares issued Additional Paid In Capital 46,754 38,288 Other income (loss) 390 229 Retained Earnings (17,296) (16,761) Treasury Stock (7,672) (8,353) ---------- ---------- Total Stockholders' Equity 23,675 13,494 ---------- ---------- Total Liabilities & stockholders' equity $ 73,958 $ 49,882 ---------- ---------- Please see our forward looking statements at [ www.firstaviation.com/forward ] FIRST AVIATION SERVICES INC. Audited Consolidated Condensed Statements of Cash Flows (In Thousands) 11 mos. Ended 12 mos. Ended Dec 31, Jan 31, 2009 2009 ------------- ------------- Cash flows from operating activities: Net income (loss) $ (535) $ (2,534) Adjustments to reconcile net (loss) to net cash provided by (used in) operating activities: Depreciation and amortization 945 1,521 Equity based compensation 106 167 Provision for bad debts (75) (142) Provision for excess & obsolete inventory 26 (1,011) (Gain) loss on sale of plant & equipment - (5) (Increase) decrease in working capital assets: Trade receivables (2,256) 2,746 Inventory (4,445) 795 Prepaid expenses and other assets (1,051) 53 Increase (decrease) in working capital liabilities: Accounts payable 3,937 997 Accrued compensation and related expenses, and other accrued liabilities 2,633 (1,021) ------------- ------------- Net cash (used in) provided by operating activities (715) 1,566 Cash flows from investing activities: Purchases of plant and equipment (79) (702) ------------- ------------- Net cash used in investing activities (79) (702) Cash flows from financing activities: Borrowings (repayments), on revolving line of credit, net 696 256 Borrowings (repayments), on notes payable, net (105) (506) ------------- ------------- Net cash provided by (used in) financing activities 591 (250) Effect of exchange rates on cash (68) (60) ------------- ------------- Net change in cash and cash equivalents (271) 554 Cash and cash equivalents at beginning of period 1,304 750 ------------- ------------- Cash and cash equivalents at end of period $ 1,033 $ 1,304 ============= ============= Cash paid for interest $ 2,313 $ 1,238 Income taxes paid, net - - Please see our forward looking statements at [ www.firstaviation.com/forward ]
First Aviation Services Inc., ("FAvS") located in Westport, Connecticut, through its principal operating subsidiaries Aerospace Products International, Inc., ("API"), based in Memphis, TN, Aerospace Turbine Rotables, Inc. ("AeTR") in Wichita, KS and Piedmont Propulsion Systems, LLC ("PPS") in Winston-Salem, NC is a leading provider of services to the aviation industry worldwide. With locations in the U.S., Canada, Asia Pacific and China plus partners throughout the world, FAvS is a leading provider of aviation products, supply chain management services, repair and overhaul and technology solutions in the industry.
More information about FAvS and its subsidiaries may be found on the company's website, [ www.firstaviation.com ]. Please see our forward looking statements at [ www.firstaviation.com/forward ].
