SOURCE: AIR INDUSTRIES GROUP, INC.

Air Industries Group, Inc.

September 16, 2011 16:19 ET

Air Industries Group, Inc. (the "Company" or "Air Industries") Today Announced Its Financial Results for the Six Months Ended June 30, 2011

BAY SHORE, NY--(Marketwire - Sep 16, 2011) - Air Industries Group, Inc. (PINKSHEETS: AIRI)

Financial Results for the Six Months ended June 30, 2011:

For the six months ended June 30, 2011:

  • For the six months ended June 30, 2011 net sales were $25,723,000 an increase of $1,081,000 or approximately 4% compared to net sales of $24,642,000 for the comparable period of 2010. Income from operations was $1,931,000 compared with $1,291,000 for the six months ended June 2010, an increase of $640,000 or nearly 50% from the comparable period of the prior year.

  • Gross profit as a percentage of sales remained relatively constant at $5,031,000 or 19.6% of sales compared with $4,785,000 or 19.4% of sales for the comparable period of 2010.

  • Operating costs declined by $394,000 or 11% to $3,100,000 from $3,494,000 for the comparable period of the prior year.

  • Net Income from continuing operations was $860,000 compared to a net loss of $1,287,000 in the comparable period of the prior year.

  • Net income attributable to common stockholders was $860,000 compared to a net loss of $2,286,000 for the comparable period of the prior year

A summary of the results for the six months ended June 2011 and 2010 is below.

Summary Financial Table Six Months Ended June 30,
(all amounts in thousands) 2011 2010
Net Sales $ 25,723 $ 24,642
Gross Profit 5,031 4,785
Total Operating Expenses 3,100 3,494
Income from Operations 1,931 1,291
Interest and Financing Costs 1,043 2,575
Net income - continuing operations 860 (1,287 )
Net income (loss) common shareholders 860 (2,286 )

In comparing 2011 versus 2010 it is important to note:

  • The six months ended June 30, 2010 included income from discontinued operations of $437,000,

  • The six months ended June 30, 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 $1,323,000 for the period January 1 to June 30, 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 six months ended June 30, 2010 income attributable to common shareholders was reduced by dividends of $1,436,000 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 six months ended June 30, 2010 would have been $36,000.

A reconciliation of the reported results as of June 30, 2010 to the comparative results for June 30, 2010 as indicated in the above bullets is detailed below.

Reconciliation of June 30, 2010 results
(all amounts in thousands)
Net loss attributed to common shareholders $ (2,286 )
Adjustments
Dividends on Preferred Stock 1,436
Income from discontinued operations (437 )
Accretion of Interest 1,323
Proforma Results June 30, 2010 $ 36

Consolidated Financial Statements are available here: http://media.marketwire.com/attachments/201109/32410_AirIndustriesGroupIncJune2011Financials.pdf

Mr. Peter Rettaliata, Chief Executive Officer of Air Industries, commented: "It is a pleasure to report the results for the first half of 2011. Air Industries has returned to profitable operations, reporting its first back to back quarters of profitable operations in some time."

Mr. Rettaliata continued: "Air Industries is a world-class supplier to its customers due to the exemplary performance and achievements of our team. I would like to thank all of our management and employees for contributing to our improved performance, both financial and operationally."

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