SOURCE: Air Industries Group, Inc

Air Industries Group, Inc

June 23, 2011 15:05 ET

Air Industries Group, Inc. (the "Company" or "Air Industries") Today Announced Its Financial Results for the Three Months Ended March 31, 2011

BAY SHORE, NY--(Marketwire - Jun 23, 2011) - Air Industries Group, Inc. (PINKSHEETS: AIRI)

Financial Results for the Three Months ended March 31, 2011:

For the three months ended March 31, 2011(unaudited/unreviewed):

  • Net sales were $12,600,000 an increase of $541,000 or approximately 4% compared to net sales of $12,059,000 for the comparable period of 2010. Income from operations was $1,026,000 for the quarter ended March 31, 2011 compared with $378,000 for the first quarter of 2010, representing an increase of $648,000 or 171% from the comparable period of the prior year.

  • Gross profit as a percentage of sales remained relatively constant at $2,459,000 or 19.5% of sales compared with $2,387,000 or 19.7% of sales for the comparable period of 2010. Gross profit was calculated using the gross profit method.

  • Operating costs declined by $576,000 or 28% to $1,433,000 from $2,009,000 for the comparable period of the prior year.

  • Income from continuing operations was $550,000 compared to a net loss of $1,119,000 in the comparable period of the prior year.

  • Net income attributable to common stockholders was $550,000 compared to a net loss of $1,306,000 for the comparable period of the prior year

In comparing the first quarter of 2011 versus the first quarter of 2010 it is important to note:

  • The three months ended March 31, 2010 included income from discontinued operations of $443,000,
  • The three months ended March 31, 2010 included as interest expense the accretion to face value of the Company's Junior Subordinated Notes, which were issued during 2008 and 2009 and were initially carried on the financial statements at a discount to face value. This interest expense, which was a non-cash interest expense, totaled approximately $974,000 for the period January 1 to March 31, 2010. As of April 30, 2010, all of the discount had been accreted and the Junior Notes were carried at face value, and no further interest expense will be recorded from the accretion of the discounted value to face value, and
  • For three months ended March 31, 2010 income attributable to common stockholders was reduced by dividends of $630,000 payable to the holders of the Company's Series B Preferred Stock. In July 2010, the Series B Preferred Stock was converted into 3,400,000 shares of common stock.
    • Absent the above three items; income from discontinued operations, interest expense resulting from the accretion of the Junior Notes to face value, and dividends attributable to the Series B Preferred Stock, net income attributable to the common stockholders for the three months ended March 31, 2010 would have been $162,000.

The results for the three months ended March 31, 2011 and 2010 are summarized below.

Summary Financial TableThree Months Ended March 31,
(all amounts in thousands)20112010
Net Sales$12,600$12,059
Gross Profit2,4592,387
Total Operating Expenses1,4332,009
Interest and Financing Costs4821,572
Income from continuing operations550(1,119)
Net income (loss) - common shareholders550(1,306)

Consolidated Financial Statements are available here: http://media.marketwire.com/attachments/201106/28266_AirIndustriesGroupMarch2011Financials.pdf

Mr. Peter Rettaliata, Chief Executive Officer of Air Industries, commented: "It is a pleasure to report the results for the first quarter of 2011. Air Industries has returned to profitable operations following a long and difficult period. Beginning in late 2008, Air Industries Group faced many challenges arising from the failure to complete the acquisition of Blair/HSM with its attendant costs and, the need to discontinue the operations of our Sigma Metals subsidiary. These challenges were compounded by the turmoil in the financial markets and the economy in general during that period.

"I amvery pleased to report that our on-time delivery and other 'metrics' used by our customers to measure our performance have greatly improved. Air Industries has regained its position as a reliable supplier of high quality product.

"I amalso happy to report that our Welding Metallurgy ('WMI')subsidiary, which was acquired in August 2007, continues to enjoy very rapid growth. For the 12 months ended March 31, 2011, net sales at WMI increased by nearly $1,959,000 or over 30% over the twelve month period ended March 31, 2010."

Mr. Rettaliata continued: "Air Industries is a world-class supplier to its customers due to the exemplary performance and achievements of our team, starting with Mr. Dario Peragallo, the President of our Air Machining subsidiary, and his management team, in particular Vice President Ms. Paula Castellano, who have done a fine job delivering the goods. I would also like to compliment Mr. Gary Settoducato, the President of our Welding Metallurgy subsidiary, and his team, for the exceptional growth in revenue that they have achieved this year as they grow into the aero structures business."

ABOUT AIR INDUSTRIES GROUP, INC.

Air Industries Group, Inc. (PINKSHEETS: AIRI) is an integrated manufacturer of precision components and provider of supply chain services for the aerospace and defense industry. The Company has over 35 years of experience in the industry and has developed leading positions in several important markets that have significant barriers to entry. With embedded relationships with many leading aerospace and defense prime contractors, the Company designs and manufactures structural parts and assemblies that focus on flight safety, including landing gear, arresting gear, engine mounts and flight controls. Air Industries Group also provides sheet metal fabrication, tube bending, and welding services.

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

  • Contact:
    Michael Recca
    631-328-7078