Stocks & Investing
Stocks and Investing
Stocks and Investing
Tue, May 18, 2010
Mon, May 17, 2010 
WESTPORT, CT--(Marketwire - May 17, 2010) - First Aviation Services Inc. (
Sales for the first quarter were $30.8 million, an improvement over the prior year of 19.3%. Contributing to the sales growth were the two previously announced acquisitions of Aerospace Turbine Rotables, Inc. and Piedmont Propulsion Systems, LLC that closed in December, 2009. Without recognizing the effect of these acquisitions, sales increased 2.0% on a year over year basis.
The EBITDA before acquisition expense for the quarter was $1,485 thousand versus $47 thousand in the comparable period last year.
"We reported strong first quarter results notwithstanding the challenging economic environment," said Aaron P. Hollander, Chairman and CEO of First Aviation. "We are pursuing opportunities that capitalize on the combined strength of First Aviation's operating subsidiaries and focusing on international and military markets that we believe will continue to outperform. While we see signs of recovery in general aviation, particularly in the corporate and charter segments, we expect it will be some time for the market to fully recover."
Note: In December of 2009 the Company began reporting on a calendar year basis. The above numbers reflect management's estimates of the prior year's first quarter on a comparable basis.
FIRST AVIATION SERVICES INC. Consolidated Condensed Statements of Operations(1) (In Thousands, except per share amounts) Three Months Ended March 31, ------------------ 2010 2009 -------- -------- (Actual) (Actual) Net Sales $ 30,795 $ 25,807 Cost of Sales (23,992) (21,448) -------- -------- Gross Profit 6,803 4,359 Selling, general & administrative expenses (5,201) (4,052) Corporate expenses (385) (433) Acquisition expense (11) - -------- -------- Income (loss) from operations 1,206 (126) Net interest income (expense) and other (541) (295) Foreign Exchange gain (loss) 15 - -------- -------- Income (loss) before income taxes 680 (421) Income tax benefit (provision) (73) - -------- -------- Net Income (loss) $ 607 $ (421) ======== ======== EBITDA - Before Acquisition Expense $ 1,485 $ 47 Basic EPS Before Acquisition Expense $ 0.04 $ (0.06) Basic EPS After Acquisition Expense $ 0.04 $ (0.06) Basic average shares outstanding 15,618 7,422 (1) Figures disclosed in this Press Release have not been audited; please see our forward looking statements at [ www.firstaviation.com/forward ] FIRST AVIATION SERVICES INC. Consolidated Condensed Balance Sheets(1) (In Thousands, except per share amounts) March 31, December 31, 2010 2009 ----------- ----------- (Actual) (Actual) Assets Current assets: Cash and cash equivalents $ 1,035 $ 1,033 Trade receivables, net 20,217 18,725 Inventories, net 37,555 37,604 Prepaid expenses and other 1,889 2,445 ----------- ----------- Total current assets 60,696 59,807 Property, plant and equipment, net 2,458 2,663 Goodwill 11,488 11,488 ----------- ----------- Total Assets $ 74,642 $ 73,958 =========== =========== Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 17,392 $ 17,091 Accrued Compensation 530 407 Other accrued liabilities 2,004 3,378 Revolving line of credit 22,145 21,326 Other short-term debt 7,000 7,000 Notes payable 418 432 ----------- ----------- Total current liabilities 49,489 49,634 Long-term liabilities 872 649 ----------- ----------- Total Liabilities 50,361 50,283 Common Stock 91 91 Class A $0.01 par value, 20,000,000 shares authorized, 11,320,628 shares issued Class B $0.01 par value, 6,000,000 58 58 shares authorized, 5,766,667 shares issued Preferred Stock 1,414 1,350 $0.01 par value, 30,000 shares authorized, 13,500 shares issued Additional Paid In Capital 46,639 46,754 Accumulated other comprehensive income 319 390 Retained Earnings (16,721) (17,296) Treasury Stock (7,519) (7,672) ----------- ----------- Total Stockholders' Equity 24,281 23,675 ----------- ----------- ----------- ----------- Total Liabilities & stockholders' equity $ 74,642 $ 73,958 =========== =========== (1) Figures disclosed in this Press Release have not been audited; please see our forward looking statements at [ www.firstaviation.com/forward ] FIRST AVIATION SERVICES INC. Consolidated Condensed Statements of Cash Flows(1) (In Thousands) Three Months Ended March 31, ------------------ 2010 2009 -------- -------- (Actual) (Actual) Cash flows from operating activities: Net income (loss) $ 607 $ (421) Adjustments to reconcile net (loss) to net cash provided by (used in) operating activities: Depreciation and amortization 273 274 Deferred income tax provision Stock based compensation 6 139 (Increase) decrease in working capital assets: Trade receivables (1,492) (1,195) Inventory 49 152 Prepaid expenses and other assets 556 90 Increase (decrease) in working capital liabilities: Accounts payable 301 2,332 Accrued compensation and related expenses, and other accrued liabilities (1,187) (474) -------- -------- Net cash (used in) provided by operating activities (887) 897 Cash flows from investing activities: Payment for net assets acquired - - Payment for goodwill - - Purchases of plant and equipment (68) (67) Disposals of PPE - - -------- -------- Net cash used in investing activities (68) (67) Cash flows from financing activities: Borrowings (repayments), net on revolving line of credit 819 (837) Borrowings (repayments), net on notes payable & other 209 (76) Borrowings (repayments), net on time loan - - -------- -------- Net cash provided by (used in) financing activities 1,028 (913) Effect of exchange rates on cash (71) (42) -------- -------- Net change in cash and cash equivalents 2 (125) Cash and cash equivalents at beginning of period 1,033 2,136 -------- -------- Cash and cash equivalents at end of period $ 1,035 $ 2,011 ======== ======== (1) Figures disclosed in this Press Release have not been audited; 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 ].
