Vector Aerospace Corporation

Vector Aerospace Corporation

November 12, 2010 11:30 ET

Vector Aerospace Announces Strongest Quarterly Results in 2010

TORONTO, ONTARIO--(Marketwire - Nov. 12, 2010) - Vector Aerospace Corporation (Vector) (TSX:RNO) today announces its results for the three and nine months ended September 30, 2010.

Operations (in millions of Canadian dollars): Third Quarter Nine Months
  2010 2009 2010 2009
  Revenue from continuing operations $135.4 $141.0 $402.1 $428.6
  Earnings from Operations before unusual items $14.4 $12.4 $40.3 $38.0
  Net earnings $10.0 $7.8 $27.3 $24.8
Per Share:        
  Weighted average number of common shares outstanding (millions)        
    Basic 46.1 37.8 46.0 37.7
    Diluted 46.8 38.4 46.6 38.1
  Earnings from Operations before unusual items        
    Basic $0.31 $0.33 $0.87 $1.01
    Diluted $0.31 $0.32 $0.86 $1.00
  Net earnings        
    Basic $0.22 $0.21 $0.59 $0.66
    Diluted $0.21 $0.20 $0.59 $0.65

The interim consolidated financial statements and MD&A for the three months and nine months ended September 30, 2010 are available on the Company's website, and on SEDAR,

Earnings from operations before unusual items were $14.4 million for the third quarter of 2010, an increase of $2.0 million as compared to the same period last year. The Company generated consolidated revenue from operations of $135.4 million for the third quarter of 2010, $5.6 million below the same period last year. The increase was primarily a result of higher gross margins. During the third quarter of 2010, the Company recorded $0.1 million foreign exchange gain compared to a $1.8 million foreign exchange loss in the third quarter of 2009. Net earnings for the third quarter of 2010 were $10.0 million ($0.22 per share) compared to $7.8 million ($0.21 per share) for the same period last year.

In commenting on the quarter's results, President and CEO Declan O'Shea stated: "The third quarter was Vector's best quarter for 2010 and in line with management's previous guidance. The Company achieved improved operating results as compared to the previous quarter and previous year. We are beginning to see signs of improvement in the commercial engine market and expect to generate improved operating results as we move forward into 2011."

Analyst Conference Call

Vector Aerospace Corporation will hold a third quarter 2010 conference call at 2:00 p.m. EST on Friday November 12, 2010. The conference call will review Vector's results for the three months ended September 30, 2010. The scheduled speakers for the Company on the conference call are: Declan O'Shea, President and Chief Executive Officer and Randal Levine, Senior Vice President and Chief Financial Officer.

Interested parties can access the conference call in North America by dialing 1-877-974-0445. The international dial-in number is (416)-644-3415. The conference identification number is 4381730 #.

A replay service will be available two hours following the conference call until midnight on November 19, 2010. To access this recording, dial 1-877-289-8525 (toll free) or 416-640- 1917 and enter pass code 4381730 #.

Vector Aerospace Corporation is an independent provider of aviation repair and overhaul services. Through facilities in Canada, the United States the United Kingdom and Africa, Vector provides services to commercial and military customers for various types of gas turbine engines, components and helicopter airframes. Vector also provides information technology solutions to an international customer base. Principal operations include Vector Aerospace Engine Services Atlantic Inc., Vector Aerospace Engine Services UK Limited, Vector Aerospace Helicopter Services Inc., Vector Aerospace International Limited and Pathix ASP. The Company has approximately 2,500 employees.

Specific Note Regarding Forward Looking Statements

This news release may contain certain information that constitutes forward looking information within the meaning of applicable securities laws. These statements are based on Vector's current expectations, estimates, forecasts and projections related to the operating environment, economies and markets in which Vector operates; its financial condition and its general business. By their very nature, forward-looking statements are based on certain factors and assumptions and are subject to important risks and uncertainties. The forward-looking statements herein may differ materially from actual results or events. While Vector considers the assumptions on which these statements are made to be reasonable, based on information currently available to it, they may prove to be incorrect and readers are cautioned, therefore, not to place undue reliance on these statements as a number of important factors could cause actual results to differ materially from those expressed in such forward-looking statements.

These factors include, without limitation, global and local political factors, general economic, market and business conditions, fluctuations in the cost of borrowing, Vector's ability to receive timely regulatory approvals, competitive actions of other companies, including increased competition from original equipment manufacturers with their own in-house service providers, the occurrence of unexpected events such as fires, equipment failures and other similar events affecting Vector or other parties whose operations or assets directly or indirectly affect Vector and future demand for Vector's services. Readers should also refer to Vector's continuous disclosure materials filed with Canadian Securities Regulatory Authorities for additional information with respect to certain of these risk factors. A discussion of risk factors is contained in Vector's 2009 Annual Report and in all management's discussion and analysis of financial condition and results of operations filed since the 2009 Annual Report which are available on Vector's website and on SEDAR. Any forward looking statements contained in this news release are made as of the date of this release and, accordingly, are subject to change after such date. Unless otherwise required under applicable laws, we disclaim any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Contact Information

  • Vector Aerospace Corporation
    Declan O'Shea
    President & CEO
    (416) 640-2115
    Vector Aerospace Corporation
    Randal L. Levine
    Senior Vice-President and Chief Financial Officer
    (416) 640-2120