SOURCE: First Aviation Services Inc.

First Aviation Services Inc.

March 09, 2012 11:00 ET

Profitable Year Reported by First Aviation

WESTPORT, CT--(Marketwire - Mar 9, 2012) - First Aviation Services Inc. (PINKSHEETS: FAVS) today reported net income for the year ended December 31, 2011 of $791,000 or $.62 per share versus the prior year's loss of $1.2 million. Income from operations increased 55% over 2010. Gross margin improved to 21.6% from 19.5% in 2010 on lower sales volume.

The Company improved its balance sheet substantially with bank borrowings declining $5.9 million, payables declining $2.6 million and stockholders' equity increasing by $3.8 million. Book value per share as of December 31, 2011 was $20.85.

Aaron Hollander, Chairman and CEO, said, "We made significant progress during the year in focusing on higher margin business primarily in maintenance, repair and overhaul (MRO) and supply chain management. We are especially pleased with the progress our Aerospace Turbine Rotables, Inc. and Piedmont Propulsion Systems, LLC subsidiaries have made in growing their businesses and adding new product lines. Aerospace Products International, despite a challenging marketplace has continued to develop best in class technology in its third party logistics programs. We will continue to deploy our resources in segments that will provide superior long term returns."

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.

FIRST AVIATION SERVICES INC.
Audited Consolidated Statements of Operations
(In thousands, except share and per share amounts)
Year ended December 31,
2011 2010
Net Sales $ 113,056 $ 128,463
Cost of Sales (88,635 ) (103,392 )
Gross Profit 24,421 25,071
Selling, general & administrative expenses 21,248 22,419
Corporate expenses 1,500 1,577
22,748 23,996
Income from operations 1,673 1,075
Non-operating income (expense)
Interest expense (1,405 ) (2,213 )
Other 718 (37 )
Income (loss) before income taxes 986 (1,175 )
Income tax provision (195 ) (16 )
Net income (loss) 791 (1,191 )
Dividends on preferred stock (251 ) (219 )
Net income available (loss attributable) to common stockholders $ 540 $ (1,410 )
Basic net income (loss) per share, and net income (loss) per share - assuming dilution:
Basic net income (loss) per share attributable to common stockholders (1) $ 0.62 $ (1.80 )
Net income (loss) per share attributable to common stockholders - assuming dilution (1) $ 0.62 $ (1.80 )
Weighted average shares outstanding - basic (1) 874,644 783,710
Weighted average shares outstanding - assuming dilution (1) 875,349 783,710
(1) Earnings per share and weighted average shares outstanding reflect the impact of First Aviation's 1-for-20 reverse stock split, which was effective October 24, 2011
Please see our forward looking statements at www.firstaviation.com/forward
FIRST AVIATION SERVICES INC.
Audited Consolidated Balance Sheets
(In thousands, except share amounts)
December 31,
2011 2010
Assets
Current assets:
Cash $ 1,112 $ 1,302
Trade receivables, net 17,679 20,051
Inventories, net 31,411 34,778
Prepaid expenses and other 1,843 2,417
Total current assets 52,045 58,548
Plant and equipment, net 1,830 2,467
Deferred financing costs and other 477 538
Goodwill 7,773 7,773
Total Assets $ 62,125 $ 69,326
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 16,178 $ 18,777
Accrued compensation & related expenses 424 555
Other accrued liabilities 1,276 3,387
Revolving line of credit 16,985 22,257
Term loan payable 1,200 6,400
Notes payable 9 28
Total current liabilities 36,072 51,404
Long term liabilities:
Other liabilities 1,431 1,717
Term loan payable 4,600 -
Total Liabilities 42,103 53,121
Stockholders' Equity
Common Stock
Class A Common Stock 125 91
$0.20 par value, 1,000,000 shares authorized,
671,994 and 566,031 shares issued,
respectively, 610,343 and 497,843
shares outstanding, respectively
Class B Common Stock 58 58
$0.20 par value, 300,000 shares authorized,
288,333 and 288,333 shares issued
and outstanding, respectively
Preferred Stock 1,835 1,584
$0.01 par value, $100 redemption value, 30,000
shares authorized, 18,354 and 15,841
shares issued and outstanding, respectively
Additional paid-in capital 41,960 39,669
Deficit (18,181 ) (18,721 )
Accumulated other comprehensive income 433 500
26,230 23,181
Less: Treasury Stock, at cost, 61,651 and 68,188 shares, respectively (6,208 ) (6,976 )
Total Stockholders' Equity 20,022 16,205
Total Liabilities & Stockholders' Equity $ 62,125 $ 69,326
Please see our forward looking statements at www.firstaviation.com/forward
FIRST AVIATION SERVICES INC.
Audited Consolidated Statements of Cash Flows
(In thousands)
Year Ended December 31,
2011 2010
Cash flows from operating activities:
Net income (loss) $ 791 $ (1,191 )
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization 1,160 1,146
Equity based compensation 93 132
Provision for bad debts 338 328
Provision for excess & obsolete inventory 236 270
Change in working capital assets/liabilities:
Trade receivables 2,012 (1,930 )
Inventories 3,109 2,109
Prepaid expenses and other 574 (7 )
Accounts payable (2,621 ) 2,787
Accrued compensation and related expenses, and other accrued liabilities (2,242 ) (2,162 )
Net cash provided by operating activities 3,450 1,482
Cash flows from investing activities:
Purchases of plant and equipment and other assets (345 ) (791 )
Net cash used in investing activities (345 ) (791 )
Cash flows from financing activities:
Net change in revolving line of credit (5,272 ) 931
Loan costs (118 ) (347 )
Repayments on term loan (600 ) (600 )
Repayments on notes payable and other liabilities (305 ) (397 )
Issuance of Class A common stock 3,001 -
Net cash used in financing activities (3,294 ) (413 )
Effect of exchange rate changes on cash (1 ) (9 )
Net change in cash (190 ) 269
Cash at the beginning of the year 1,302 1,033
Cash at the end of the year $ 1,112 $ 1,302
Supplemental Cash Flow Disclosures
Cash paid for interest $ 1,126 $ 1,828
Income taxes paid, net $ 75 28
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