BAY SHORE, NY--(Marketwire - October 21, 2009) - Air Industries Group, Inc. (the "Company")
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In addition the Company has voluntarily filed a Form 15 with the SEC to suspend the Company's reporting obligations. Upon the filing of the Form 15, the Company's obligation to file periodic and current reports with the SEC, including Forms 10-K, 10-Q and 8-K, will be immediately suspended. The Company expects the registration of its common stock will be terminated within 90 days. As a result of deregistration, the Company's securities will not be eligible for trading on any national exchange or the OTC Bulletin Board; however, the Company's securities may remain eligible for quotation on the Pink Sheets, as they are now.
Mr. Michael Taglich, Chairman of the Board of Air Industries Group, Inc., commented: "The past twelve months have been very eventful for the Company and much has been accomplished to return Air Industries to the consistently cash flow positive, customer centric enterprise that it is today, starting with a critical $6 million subordinated debt and equity financing late last year. The $6 million allowed the Company the flexibility to restore a financially overstretched supply chain. With adequate working capital, our management was allowed to do what it does best, focus on making critical, difficult-to-make aircraft parts. I would like to thank our President, Peter Rettaliata, our divisional Presidents, Dario Peragallo and Gary Settoducato, and our other hardworking officers and employees, heroes of which there are many; they dialed it up together as a team and made it happen.
"In October 2008, our subsidiary Sigma Metals, Inc. reduced its operations and sold certain intangible and some minor tangible assets to the former owners of Sigma. The other assets of Sigma, principally inventory and accounts receivable, were and continue to be sold with the proceeds reducing Sigma's debt.
"After completion of the $6 million subordinated debt financing management at Air Industries Group, Inc. was able to focus on other goals for the balance of 2008 and 2009. These goals included:
1. Improving Air Industries Machining, Corp.'s relationships with its
customers,
2. Improving our relationships with our many vendors, and ultimately,
3. Reducing our overhead costs,
4. Renegotiating our Loan covenants to eliminate existing defaults with
our Senior and Subordinated Lenders, and
5. Continuing the growth of our core business at our Air Industries
Machining, Corp. subsidiary and accelerating the growth of our Welding
Metallurgy, Inc. subsidiary.
"All of these initiatives have a singular goal -- returning the Company to profitability.
"We are very pleased that Air Industries Group, Inc. has enjoyed sales increases at both operating subsidiaries and has had positive cash flow in each month of our current fiscal year.
"I am pleased to report that we have made significant progress. Our relationships with our major customers have improved as we have been able to deliver products to them in a more timely manner. Similarly our improved financial condition has enabled us to restore our vendor relationships to more normal terms. We have embarked on a significant firm-wide cost reduction program and have been able to accomplish a high percentage of our planned savings. We have completed the renegotiation of our loan agreements and believe that our relationship with our lenders is much improved from what it was one year ago. We have also made significant investments in machinery and equipment for our manufacturing facility to improve efficiency and reduce costs."
Mr. Taglich continued: "The Board of Directors has decided to file a Form 15 with the SEC to suspend our obligation to file periodic and current reports. We have done this to reduce the demands on our financial reporting staff enabling them to focus their energy entirely on improving our internal operations, and to reduce the legal and accounting fees associated with external reporting obligations.
"I am also pleased to announce that Air Industries Group, Inc. will be scheduling an annual meeting of stockholders for late January or early February of 2010. While we will not be filing a proxy statement with the SEC, we will be sending information that is substantially equivalent to a proxy statement to shareholders prior to the meeting."
ABOUT AIR INDUSTRIES GROUP, INC.
Air Industries Group, Inc. (
Certain matters discussed in this press release are 'forward-looking statements' intended to qualify for the safe harbors from liability established by the Private Securities Litigation Reform Act of 1995. In particular, the Company's statements regarding trends in the marketplace, firm backlog, projected backlog, potential future results and acquisitions, are examples of such forward-looking statements. The forward-looking statements include risks and uncertainties, including, but not limited to, the timing of projects due to the variability in size, scope and duration of projects, estimates, projections and forecasts made by management with respect to the Company's critical accounting policies, firm backlog, projected backlog, regulatory delays, government funding and budgets, matters pertaining to potential and pending acquisitions subject to and after closings, and other factors, including results of financial audits and general economic conditions, not within the Company's control. Certain of the Company's forward looking statements, with the projected backlog in particular, are formulated based on management's extensive industry experience and understanding and assessment of industry trends, customer requirements, and related government spending. Projected backlog may be subject to variability and may increase or decrease at any time based on a variety of factors, including but not limited to modifications of previously released orders, acceleration of orders under general purchase agreements, etc. The factors discussed herein and expressed from time to time in the Company's filings with the Securities and Exchange Commission could cause actual results and developments to be materially different from those expressed in or implied by such statements. The forward-looking statements are made only as of the date of this press release and the Company undertakes no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.
Contact Information: Contact: Michael Recca 631-328-7078