Vector Aerospace Corporation

Vector Aerospace Corporation

August 05, 2008 15:20 ET

Vector Aerospace Announces Second Quarter 2008 Results

TORONTO, ONTARIO--(Marketwire - Aug. 5, 2008) - Vector Aerospace Corporation (Vector) (TSX:RNO) today announces results for the quarter ended June 30, 2008.

Second Quarter Six Months
(in millions of
Canadian dollars): 2008 2007 2008 2007
Revenue from continuing
operations $ 138.2 $ 88.8 $ 222.7 $ 171.9
Net earnings from continuing
operations before interest,
income taxes and unusual $ 12.6 $ 6.0 $ 19.8 $ 12.3
Net earnings $ 8.3 $ 2.3 $ 12.1 $ 5.5

Per Share:
Weighted average number of
common shares outstanding
Basic 37.7 37.5 37.6 37.4
Diluted 38.0 38.0 37.9 37.9
Net earnings before interest,
income taxes and
unusual items
Basic $ 0.33 $ 0.16 $ 0.53 $ 0.33
Diluted $ 0.33 $ 0.16 $ 0.53 $ 0.32
Net earnings
Basic $ 0.22 $ 0.06 $ 0.32 $ 0.15
Diluted $ 0.22 $ 0.06 $ 0.32 $ 0.15

The interim consolidated financial statements and MD&A for the quarter ended March 31, 2008 are available on the Company's website, and on SEDAR,

The Company generated consolidated revenue from operations of $138.2 million for the second quarter of 2008, $49.4 million above the same period last year. Earnings from operations, before interest, tax, and unusual items, were $12.6 million for the second quarter of 2008, an increase $6.6 million as compared to the same period last year. The increase in earnings in the second quarter of 2008 was primarily a result of increased revenues related to the fixed wing operations and the inclusion of earnings for the quarter related to Vector Aerospace - Helicopters U.K. (the DARA acquisition). Net earnings for the second quarter of 2008 were $8.3 million ($0.22 per share) compared to $2.3 million ($0.06per share) for the same period last year.

In commenting on the quarter's results, President and CEO Declan O'Shea stated: "Our consolidated operating results were strong for Q2 2008. I was very pleased with our results at Sigma and ATI in the quarter. As a result of increased activity on the PW100 line and on the RSAF contract these divisions produced very strong operating results. The first quarter of our U.K. helicopter operations was in line with the prior year and our expectations for the period. The balance of 2008 for our U.K. helicopter operations will be a period of integration and implementation of profitability improvement measures which should positively impact earnings beginning in 2009. On a consolidated basis, the last half of 2008 (in aggregate) is anticipated to produceoperating results similar to the first half of the year (in aggregate). We were pleased to have extended our PW100 and PT6 DOF agreements for a further 10 years and to be awarded a new DOF for certain variants of the PW307/308 engines for a term of 10 years from Pratt & Whitney Canada."

Analyst Conference Call

Vector Aerospace Corporation will hold a Q2 2008 conference call at 4:00 p.m. ET on Tuesday, August 5, 2008. The conference call will review Vector's results for the quarter ended June 30, 2008. The scheduled speakers for the Company on the conference call are: Declan O'Shea, President and Chief Executive Officer and Randal Levine, Senior Vice President and Chief Financial Officer.

Interested parties can access the conference call in the North American by dialing 1-888-300-0053 and entering passcode 57621901. The international dial-in number is (647) 427-3420. Please dial in approximately 5-10 minutes prior to the 4:00 9.m. Eastern start time.

A replay service will be available two hours following the conference call until midnight on August 19, 2008. To access this recording, dial 1-888-695-9456 or 1-402-220-0608 and enter passcode 57621901.

Vector Aerospace Corporation is an independent provider of aviation repair and overhaul services. Through facilities in Canada, the United States and the United Kingdom, Vector provides services to commercial and military customers for various types of gas turbine engines, components and helicopter airframes. Principal operations include Atlantic Turbines, Vector Aerospace Engine Services UK Limited (formerly Sigma Aerospace), Vector Aerospace Helicopter Services (formerly ACROHELIPRO Global Services), Vector Aerospace International Limited (rotary and component repair business of DARA acquired from the Ministry of Defense in the United Kingdom) and Pathix ASP.

Special Note Regarding Forward-Looking Statements

Certain statements in this news release, which includes the attached management's discussion and analysis of financial condition and results of operations, are forward-looking statements or information, collectively "forward-looking statements". The Company is hereby providing cautionary statements identifying important factors that could cause the Company's actual results to differ materially from those projected in forward-looking statements made in this news release. Any statements that express, or involve discussions as to, expectations, beliefs, plans, objectives, assumptions or future events or performance (often, but not always, through the use of words or phrases such as "will likely result," "are expected to", "will continue", "is anticipated", "estimated", "intend", "plan", "projection", "could", "may", "believes", "feel", "targeting", "look forward", "goals", "objective", "outlook" and similar expressions) are not historical facts and may be forward-looking and may involve estimates, assumptions and uncertainties which could cause actual results or outcomes to differ materially from those expressed in the forward-looking statements. Without limitation, information regarding the expected revenue from the contract signed with the Royal Saudi Air Force, the impacts on the aviation industry of the tensions and conflicts in the Middle East, the impacts of possible acts of terrorism on the aviation industry, timing of product delivery, availability of parts from original equipment manufacturers ("OEMs") and others used in providing the Company's services, U.S. and foreign government activities, volatility of the market for the Company's services, worldwide political stability, factors that could result in significant or prolonged disruption to commercial air travel worldwide, domestic and international economic conditions, other political and economic situations and uncertainties, changes in foreign currency exchange rates, the impacts of changes in government priorities and spending on military aviation activities related to the Company's services, the ability of the Company to replace lost revenue of a customer significant to an operating division, the ability of the Company to successfully implement production efficiency changes, cost reductions and restructuring initiatives at various locations throughout the Company and the possibility that such efforts will not have as great an impact on the operating results of the Company as is currently anticipated, is forward-looking information. Readers should also refer to the Company's continuous disclosure materials filed with Canadian Securities Regulatory Authorities for additional information with respect to certainly of these risk factors, including the 2007 Annual Report and Management's Discussion and Analysis (2007).

Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to have been correct. Important factors that could cause actual results to differ materially from the Company's expectations ("Cautionary Statements"), including changes in general economic, market and business conditions, fluctuations in the cost of borrowing, political and economic development, the Company's ability to receive timely regulatory approvals, competitive actions of other companies, including increased competition from OEMs with their own in-house service providers, the occurrence of unexpected events such as fires, equipment failures and other similar events affecting the Company or other parties whose operation or assets directly or indirectly affect the Company, and those risks set forth under the heading "Risk Factors" below.

All subsequent written and oral forward-looking statements attributable to the Company or persons acting on behalf of the Company are expressly qualified in their entirety by the Cautionary Statements. The forward-looking information contained herein is current only as of the date of this document. New factors emerge from time to time, and it is not possible for management to predict all of such factors and to assess in advance the impact of each such factor on the Company's business or the extent to which any factor or combination of factors may cause actual results to differ materially from those contained in any forward- looking statements. The Company disclaims any intentions or obligation to update or revise any forward- looking statements or comments as a result of any new information, future event or otherwise unless such disclosure is required by law.

Annual 2007 Consolidated Financial Statements and MD&A

The Company's complete annual consolidated financial statements for the year ended December 31, 2007 and notes thereto, together with management's discussion and analysis of financial condition and results of operations ("MD&A") included in the Company's Annual Report for the year ended December 31, 2007 (the "2007 Annual Report") were released on March 30, 2008. The overview of financial condition and results of operations included in this news release should be read in conjunction with the 2007 Annual Report which is available on the Company's website and on SEDAR,

Contact Information

  • Vector Aerospace Corporation
    Declan O'Shea
    President & CEO
    (416) 640-2121
    Vector Aerospace Corporation
    Randal L. Levine
    Senior Vice-President and Chief Financial Officer
    (416) 640-2120