SOURCE: Air Industries Group

Air Industries Group

September 04, 2012 13:29 ET

Air Industries Group, Inc. (the "Company" or "Air Industries") Announces Continued Growth in Net Sales and Earnings per Share for the Three and Six Months Ended June 30, 2012

BAY SHORE, NY--(Marketwire - Sep 4, 2012) -  Air Industries Group, Inc. (PINKSHEETS: AIRI)

Financial Results for the six months ended June 30, 2012 and 2011:

Air Industries completed its acquisition of Nassau Tool Works on June 20, 2012. The results of Nassau Tool Works for the 10-day period of June 20 to June 30, 2012 are included herein.

For the six months ended June 30, 2012 consolidated net sales were $31,278,000 an increase of $5,555,000 or 22% compared to net sales of $25,723,000 for the prior year. Net sales at Air Industries Machining Corp were $23,728,000 an increase of $2,990,000 or 14% from $20,738,000 for the prior year. Net sales at Welding Metallurgy, Inc. were $7,037,000 and increase of $2,052,000 or 41% from $4,985,000 for the prior year. Net sales at Nassau Tool Works for the 10-day period of June 20 through June 30, 2012 were $513,000.

These results for the six months ended June 30, 2012 and 2011 are summarized below:

                   
(all amounts in 000's)   Six Months Ended June 30,   Increase over prior year  
Net Sales   2012   2011   in $   as a %  
  Air Industries Machining   $ 23,728   $ 20,738   $ 2,990   14 %
  Welding Metallurgy, Inc.   $ 7,037   $ 4,985   $ 2,052   41 %
  Nassau Tool Works     513     -   $ 512   n/m  
Consolidated   $ 31,278   $ 25,723   $ 5,555   22 %
                  -      

For the six months ended June 30, 2012 consolidated operating income was $2,893,000, an increase of $962,000 or 50% from $1,931,000 for the prior year. Consolidated net income before tax was $1,788,000 and increase of $903,000 or 102% from $885,000 in the prior year. Consolidated net income was $1,140,000 an increase of $280,000, or 33% compared with $860,000 for the prior year. Earnings per common share were $0.31 an increase of $0.07 or 29% compared with $0.24 for the prior year.

                   
(in 000's except per share data)              
    Six Months Ended June 30,   Increase over prior year  
Consolidated:   2012   2011   in $   as a %  
Operating Income   $ 2,893   $ 1,931   $ 962   50 %
Income before tax     1,788     885     903   102 %
Net Income     1,140     860     280   33 %
Net Income Per Share   $ 0.31   $ 0.24   $ 0.07   29 %
                         
  • Consolidated Gross profit was $6,707,000, or 21.4% of sales for 2012 compared with $5,031,000 or slightly less than 20% of sales for 2011.

  • Consolidated Operating costs were $3,815,000 an increase of 715,000 or 23% compared to $3,100,000 for the prior year.

In its May 15, 2012 press release Air Industries announced that the net income reported for the first quarter of 2012 and prior periods has absorbed all or substantially all of the Company's net operating loss carry-forward for federal and state income tax purposes. For the six months ended June 30, 2011, the Company accrued a provision for income taxes of only $25,000. For the six months ended June 30, 2012, the provision for income taxes was $648,000.

Thus, for the six months ended June 30, 2012 the Company reported percentage increases in operating income and income before tax of 50% and 102% respectively, but lesser percentage increases in net income and net income per share.

Financial Results for the three months ended June 30, 2012 and 2011:

For the three months ended June 30, 2012, consolidated net sales were $15,240,000, an increase of $2,117,000 or 16% compared to net sales of $13,123,000 for the prior year. Net sales at Air Industries Machining Corp were $11,585,000, an increase of $940,000 or 9% from $10,645,000 for the prior year. Net sales at Welding Metallurgy, Inc. were $3,142,000, an increase of $664,000 or 27% from $2,478,000 for the prior year. Net sales at Nassau Tool Works, Inc. for the 10-day period of June 21 to June 30, 2012 were $513,000.

Excluding Nassau Tool Works, net sales for the three months ended June increased by $1,604,000 or 12%.

These results for the three months ended June 30, 2012 and 2011 are summarized below:

                   
(all amounts in 000's)   Three Months Ended June 30,   Increase over prior year  
Net Sales   2012   2011   in $   as a %  
  Air Industries Machining   $ 11,585   $ 10,645   $ 940   9 %
  Welding Metallurgy, Inc.   $ 3,142   $ 2,478   $ 664   27 %
  Nassau Tool Works     513     -   $ 513   n/m  
Consolidated   $ 15,240   $ 13,123   $ 2,117   16 %
                  -      

For the three months ended June 30, 2012 consolidated operating income was $1,296,000, an increase of $247,000 or 24% from $1,049,000 for the prior year. Consolidated income before tax was $682,000 an increase of $166,000 or 32% from $516,000 in the prior year. Consolidated net income was $319,000 a decrease of $(172,000), or (35%) compared with $491,000 for the prior year. 

Earnings per common share were $0.08 a decrease of $0.06 or approximately (43%) compared with $0.14 for the prior year.

These results for the three months ended June 30, 2012 and 2011 are summarized below:

                     
(in 000's except per share data)                
    Three Months Ended June 30,   Increase over prior year  
Consolidated:   2012   2011   in $     as a %  
Operating Income   $ 1,296   $ 1,049   $ 247     24 %
Income before Tax   $ 682   $ 516   $ 166     32 %
Net Income     319     491     (172 )   -35 %
Net Income Per Share   $ 0.08   $ 0.14   $ (0.06 )   -43 %
                           

In its May 15, 2012 press release Air Industries announced the net income reported for the first quarter of 2012 and prior periods has absorbed all or substantially all of the Company's net operating loss for federal and state income tax purposes. For the three months ended June 30, 2011, the Company accrued a provision for income taxes of only $25,000. For the three months ended June 30, 2012, the provision for income taxes was $363,000.

Thus, for the three months ended June 30, 2012, the Company reported percentage increases in net operating income and net income before tax of 24% and 32%, respectively, but decreases in net income and net income per share.

  • Consolidated Gross profit was $3,436,000, or approximately 22.6% of sales for 2012 compared with $2,677,000 or approximately 20% of sales for 2011.

  • Consolidated Operating costs were $2,140,000 an increase of 617,000 or 41% compared to $1,523,000 for the prior year.

Included in operating costs for 2012 are approximately $180,000 in costs relating to the acquisition of Nassau Tool Works and approximately $44,000 in costs at Nassau Tool Works for the period June 20 to June 30, 2012. For the three months ended June 30, 2012, Welding Metallurgy incurred bad debt expense of approximately $98,000 as unpaid invoices aged beyond 120 days. We expect to eventually collect these invoices.

Mr. Peter Rettaliata, Chief Executive Officer of Air Industries, commented: "The first financial results for the six months ended June 30th continue the pattern of growth in revenue and earnings of recent quarters. But while we continue to expect year over year growth at both our Air Machining and Welding Metallurgy subsidiaries for the balance of calendar 2012, we do not expect to have similar percentage increases in revenue that we enjoyed at both our legacy subsidiaries in the first half.

We completed the acquisition of Nassau Tool Works on June 20, 2012. Even prior to the closing of the acquisition, we began to explore how the additional technical capabilities of NTW could enhance the prospects for new business for the combined companies. This has resulted in a significant increase in our 'quoting' activity which we hope will result in new projects in the near future. This increase in quoting activity is a direct indication that the Aerospace Industry has taken a very positive view of the addition of NTW into Air Industries Group."

ABOUT AIR INDUSTRIES GROUP, INC.

Air Industries Group, Inc. (PINKSHEETS: AIRI) is an integrated manufacturer of precision equipment assemblies and components for leading aerospace and defense prime contractors. Air Industries designs and manufactures flight critical products including flight safety parts, landing gear and components, arresting gear, flight controls, sheet metal fabrications and ground support equipment.

Certain matters discussed in this press release are 'forward-looking statements' intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. In particular, the Company's statements regarding trends in the marketplace, the ability to realize firm backlog and projected backlog, potential future results and acquisitions, are examples of such forward-looking statements. The forward-looking statements are subject to numerous risks and uncertainties, including, but not limited to, the timing of projects due to variability in size, scope and duration, the inherent discrepancy in actual results from estimates, projections and forecasts made by management regulatory delays, changes in government funding and budgets, and other factors, including general economic conditions, not within the Company's control 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