SOURCE: First Aviation Services Inc.

First Aviation Services Inc.

May 12, 2011 15:09 ET

Profitable First Quarter 2011 Reported by First Aviation

WESTPORT, CT--(Marketwire - May 12, 2011) - First Aviation Services Inc. (PINKSHEETS: FAVS) today released reviewed financial statements for the first quarter ended March 31, 2011. Net income of $188 thousand was achieved on sales of $29 million. Aaron Hollander, Chairman and CEO, said: "The first quarter performance was close to our budgeted expectations and represents a significant improvement over the fourth quarter of the prior year. Maintenance, repair and overhaul activities as well as supply chain programs outperformed the distribution segments in the quarter. We continue to make improvements in margins and cost containment that are expected to be reflected in profitability as the year progresses."


                       FIRST AVIATION SERVICES INC.
                  Consolidated Statements of Operations
            (In thousands, except share and per share amounts)



                                                             12 mos. Ended
                                    3 mos. Ended March 31,    December 31,
                                      2011          2010          2010
                                  ------------  ------------  ------------
                                   (Unaudited)   (Unaudited)      Note

Net Sales                         $     29,270  $     30,795  $    128,463
Cost of Sales                          (22,940)      (23,992)     (103,392)
                                  ------------  ------------  ------------

    Gross Profit                         6,330         6,803        25,071

Selling, general & administrative
 expenses                                5,309         5,201        22,419
Corporate expenses                         403           385         1,577
Acquisition expenses                         -            11             -
                                  ------------  ------------  ------------
                                         5,712         5,597        23,996

    Income from operations                 618         1,206         1,075

Non-operating income (expense)
    Interest income and other,
     net                                    (1)            1             2
    Interest expense                      (370)         (527)       (2,252)
                                  ------------  ------------  ------------

Income (loss) before income taxes          247           680        (1,175)
Income tax provision                       (59)          (73)          (16)
                                  ------------  ------------  ------------

Net income (loss)                          188           607        (1,191)

Dividends on preferred stock               (59)          (64)         (219)
                                  ------------  ------------  ------------

Income available (loss
 attributable) to common
 stockholders                     $        129  $        543  $     (1,410)
                                  ============  ============  ============




Basic net income (loss) per share $       0.01  $       0.04  $      (0.09)
                                  ------------  ------------  ------------

Net income (loss) per share -
 assuming dilution                $       0.01  $       0.04  $      (0.09)
                                  ------------  ------------  ------------

Weighted average shares
 outstanding - basic                15,750,038    15,618,348    15,674,202
                                  ============  ============  ============

Weighted average shares
 outstanding - assuming dilution    15,770,798    15,626,583    15,674,202
                                  ============  ============  ============

Note: Derived from Audited Consolidated  Financial Statements





                        FIRST AVIATION SERVICES INC.
                       Consolidated  Balance Sheets
                   (In thousands, except share amounts)


                                                                Restated
                                    March 31,   December 31,    March 31,
                                      2011          2010          2010
                                  ------------  ------------  ------------
                                  (Unaudited)       Note      (Unaudited)

Assets
Current assets:
    Cash and cash equivalents     $      1,026  $      1,302  $      1,035
    Trade receivables, net              21,647        20,051        20,217
    Inventories, net                    33,804        34,778        37,068
    Prepaid expenses and other           2,360         2,417         1,517
                                  ------------  ------------  ------------
Total current assets                    58,837        58,548        59,837

Plant and equipment, net                 2,323         2,467         2,458
Deferred financing costs and
 other                                     548           538           372
Goodwill                                 7,773         7,773         7,773
                                  ------------  ------------  ------------

Total Assets                      $     69,481  $     69,326  $     70,440
                                  ============  ============  ============

Liabilities and Stockholders'
 Equity
Current liabilities:
    Accounts payable              $     18,832  $     18,777  $     16,331
    Accrued compensation &
     related expenses                      678           555           530
    Other accrued liabilities            3,293         3,387         4,323
    Revolving line of credit            22,362        22,257        22,145
    Term loan payable                    6,100         6,400         7,000
    Notes payable                           14            28           164
                                  ------------  ------------  ------------
Total current liabilities               51,279        51,404        50,493

Long term liabilities                    1,667         1,717         2,187
                                  ------------  ------------  ------------

Total Liabilities                       52,946        53,121        52,680

Stockholders' Equity
Common Stock
    Class A Common Stock                    91            91            91
    $0.01 par value, 10,000,000
     shares authorized,
     (increased to 20,000,000
     shares authorized in
     December 2009), 11,320,628,
     11,320,628 and
     11,320,628 shares issued,
     respectively,
     9,983,669, 9,956,858 and
     9,864,250 shares
     outstanding, respectively

    Class B Common Stock                    58            58            58
    $0.01 par value, 6,000,000
     shares authorized,
     5,766,667, 5,766,667, and
     5,766,667 shares
     issued, respectively,
     5,766,667, 5,766,667 and
     5,766,667 shares
     outstanding, respectively


    Preferred Stock                      1,643         1,584         1,414
    $0.01 par value, $100
     redemption value, 30,000
     shares authorized, 16,427,
     15,841 and 13,500
     shares issued, respectively,
     16,427, 15,841 and
     13,500 shares outstanding,
     respectively

Additional paid in capital              39,534        39,669        40,118
Deficit                                (18,592)      (18,721)      (16,721)
Accumulated other comprehensive
 income                                    620           500           319
                                  ------------  ------------  ------------
                                        23,354        23,181        25,279
Less: Treasury Stock, at cost,
     1,336,959, 1,363,770 and
     1,438,582 shares
     respectively                       (6,819)       (6,976)       (7,519)
                                  ------------  ------------  ------------
Total Stockholders' Equity              16,535        16,205        17,760
                                  ------------  ------------  ------------
Total Liabilities & Stockholders'
 Equity                           $     69,481  $     69,326  $     70,440
                                  ============  ============  ============

Note: Derived from Audited Consolidated Financial Statements





                       FIRST AVIATION SERVICES INC.
                  Consolidated Statements of Cash Flows
                              (In thousands)


                                                              12 mos. Ended
                                      3 mos. Ended March 31,   December 31,
                                         2011         2010         2010
                                     -----------  -----------  -----------
                                     (Unaudited)  (Unaudited)      Note

Cash flows from operating
 activities:
  Net income (loss)                  $       188  $       607  $    (1,191)

  Adjustments to reconcile net
   income (loss) to net cash
   provided by (used in) operating
   activities:
    Depreciation and amortization            318          273        1,146
    Equity based compensation                 22           38          132
    Provision for bad debts                   62            -          328
    Provision for excess &
     obsolete inventories                     34            -          270

  (Increase) decrease in working
   capital assets:
    Trade Receivables                     (1,768)      (1,492)      (1,930)
    Inventories                              940           49        2,109
    Prepaid expenses and other
     assets                                   57          544           (7)

  Increase (decrease) in working
   capital liabilities:
    Accounts payable                         310          479        2,787
    Accrued compensation and
     related expenses, and
     other accrued liabilities                29       (1,187)      (2,162)
                                     -----------  -----------  -----------

  Net cash provided by (used in)
   operating activities                      192         (689)       1,482


Cash flows from investing
 activities:
  Purchases of plant and
   equipment and other assets               (101)         (56)        (791)
                                     -----------  -----------  -----------

  Net cash used in investing
   activities                               (101)         (56)        (791)


Cash flows from financing
 activities:
  Borrowings (repayments), on
   revolving line of credit, net              22          819          931
  Loan costs                                   -            -         (347)
  Borrowings (repayments) on term
   loan                                     (300)           -         (600)
  Borrowings (repayments) on
   notes payable and other                   (64)         (14)        (397)
                                     -----------  -----------  -----------

  Net cash (used in) provided by
   financing activities                     (342)         805         (413)


Effect of exchange rate changes on
 cash and cash equivalents                   (25)         (58)          (9)

                                     -----------  -----------  -----------
Net change in cash and cash
 equivalents                                (276)           2          269

Cash and cash equivalents at
 beginning of the period                   1,302        1,033        1,033
                                     -----------  -----------  -----------

Cash and cash equivalents at end of
 the period                          $     1,026  $     1,035  $     1,302
                                     ===========  ===========  ===========


Supplemental cash flow disclosures:
  Cash paid for:
    Interest                         $       292  $       495  $     1,828
                                     ===========  ===========  ===========
    Income taxes paid, net           $        10  $         -  $        28
                                     ===========  ===========  ===========

Note: Derived from Audited Consolidated Financial Statements


First Aviation Services Inc., ("FAvS") located in Westport, Connecticut, through its principal operating subsidiaries Aerospace Products International, Inc., ("API"), based in Memphis, TN, Aerospace Turbine Rotables, Inc. ("AeTR") in Wichita, KS and Piedmont Propulsion Systems, LLC ("PPS") in Winston-Salem, NC is a leading provider of services to the aviation industry worldwide. With locations in the U.S., Canada, Asia Pacific and China plus partners throughout the world, FAvS is a leading provider of aviation products, supply chain management services, repair and overhaul and technology solutions to the industry.

More information about FAvS and its subsidiaries may be found on the company's website, www.firstaviation.com. Please see our forward looking statements at www.firstaviation.com/forward.

Contact Information

  • Contact:
    James G. Howell II
    Chief Financial Officer
    First Aviation Services Inc.
    (901) 259-4502