BAY SHORE, NY--(Marketwire - Mar 14, 2012) - Air Industries Group, Inc. (
Financial Results for the Years December 31, 2011 and 2010:
For the year ended December 31, 2011 consolidated net sales were $53,745,000, an increase of $5,144,000 or 11% compared to net sales of $48,601,000 for the prior year. Net sales at the Air Industries Machining Corp subsidiary for the year ended December 2011 were $42,668,000, an increase of $2,191,000, or 5% from $40,477,000 for the prior year. Net sales at the Welding Metallurgy, Inc. subsidiary were $11,077,000, an increase of $2,953,000, or 36% from $8,124,000 for the prior year.
These results are summarized in the following chart:
| Calendar Year Ended December 31, | Increase over prior year | ||||||||||||
| Net Sales | 2011 | 2010 | in $ | as a % | |||||||||
| Air Industries Machining | $ | 42,668 | $ | 40,477 | $ | 2,191 | 5 | % | |||||
| Welding Metallurgy, Inc. | 11,077 | 8,124 | 2,953 | 36 | % | ||||||||
| Consolidated | $ | 53,745 | $ | 48,601 | $ | 5,144 | 11 | % | |||||
Consolidated net income from operations for the year ended December 31, 2011 was $4,379,000, an increase of $3,827,000, or 693% from $552,000 for the prior year.
Consolidated net income for the year ended December 31, 2011 was $2,247,000, an increase of $6,592,000, or 152% compared with a net loss of $(4,345,000) for the prior year. Consolidated net income for the year ended December 31, 2011 increased by $5,156,000, or 177% compared with a net loss before dividends attributable to Preferred Stock of $(2,909,000) for the prior year.
These results are summarized in the following chart:
| Calendar Year Ended December 31, | Increase over prior year | ||||||||||||
| Consolidated: | 2011 | 2010 | in $ | as a % | |||||||||
| Net Operating Income | $ | 4,379 | $ | 552 | $ | 3,827 | 693 | % | |||||
| Net Income before Preferred Dividend | 2,247 | (2,909 | ) | 5,156 | 177 | % | |||||||
| Preferred Dividend | - | (1,436 | ) | 1,436 | n/m | ||||||||
| Net Income | $ | 2,247 | $ | (4,345 | ) | $ | 6,592 | 152 | % | ||||
For the year ended December 31, 2011
- Gross profit as a percentage of sales was $10,928,000, or approximately 20% of sales for 2011 compared with $7,467,000, or approximately 15% of sales for 2010. Gross profit for the year ended December 2010 was reduced due to a revaluation of inventory, reducing gross profit by $1,157,000. This revaluation reduced gross profit in 2010 by 2 percentage points.
- Operating costs declined by $366,000 or approximately 5% to $6,549,000 from $6,915,000 for the comparable period of the prior year.
- Net income per share increased to $.63 from a loss of $(2.68) per share in the prior year.
In comparing results for the year ended December 2011 versus the year ended December 2010 it is important to note that the year ended December 2010;
1) Included income from discontinued operations of $342,000, and
2) 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 year. 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 was recorded from the accretion of the discounted value to face value, and
3) 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 loss attributable to the common stockholders for the twelve months ended December 31, 2010 would have been $(1,928,000), or $(.54) per share as shown below:
| Net Income per share | Twelve Months Ended December 31, | |||||||
| (3,579,000 shares o/s) ~ (000's) | 2011 | 2010 | ||||||
| Net income (loss) common shareholders | $ | 2,247 | $ | (4,345 | ) | |||
| Dividends on Preferred Stock | - | 1,436 | ||||||
| Income from discontinued operations | - | (342 | ) | |||||
| Accretion of Interest | - | 1,323 | ||||||
| $ | 2,247 | $ | (1,928 | ) | ||||
| Earnings Per Share | $ | 0.63 | $ | (0.54 | ) | |||
Consolidated Financial Statements are available here: http://media.marketwire.com/attachments/201203/41894_AirIndustriesGroupInc2011Financials-031212.pdf
The net income reported for 2011 has absorbed all or substantially all of the Company's net operating loss for federal and state income tax purposes. Beginning in 2012 it is likely that the Company will incur income tax expense on its earnings.
The Company's financial statements for the years ended December 31, 2011 and 2010, together with the notes thereto including the opinion of its independent auditors, Rotenberg Meril Solomon Bertiger & Guttilla, P.C. ("RMSBG") are attached to this press release. All readers are urged to read the financial statements, including the footnotes, in their entirety. In July 2010, the Company's shareholders approved a reverse split of the Company's shares of common stock; together with a conversion of the Company's Series B Preferred Stock ("Series B Preferred") into common stock. The "per-share" amounts in the attached financial statements have been calculated using the weighted average shares outstanding as of the balance sheet date. Air Industries has approximately 3.6 million shares of common stock outstanding.
Mr. Peter Rettaliata, Chief Executive Officer of Air Industries, commented: "The 2011 financial results reflect the core strengths of our business, and are a base from which we expect to improve. Most critically, we have been growing, successfully executing our strategy of transforming the company and moving 'up market' at both of our operating subsidiaries. Air Industries Group is continuing its transition to a fabricator of assemblies and a designer and integrator of complete components of aircraft, in addition to its traditional role of manufacturing aircraft parts.
- Air Industries Machining ("AIM") turned in solid revenue growth of over $2.0 million, a 5% increase over the prior year. Gross profit -- which had been a focus of our improvement efforts in recent years -- increased to 20% of revenue. During 2011, Air Industries Machining was awarded a contract to manufacture and assemble complete landing gear assemblies for the new Northrop Grumman E-2D Advanced Hawkeye aircraft for the US Navy. This contract extends the capability of Air Industries Machining from producing parts and sub-assemblies to fabricating complete assemblies.
- Welding Metallurgy ("WMI") achieved sales in excess of $11 million, a 36% increase over the prior year. Sales at WMI are now nearly 300% more than when the Company was acquired in August 2007. Welding Metallurgy was awarded a contract from Sikorsky Aircraft to 'design & build' engine exhaust components for the new CH-53 helicopter.
Our 2011 financial results were delivered by a team of very dedicated people who are winners and are used to winning. It is personally gratifying to lead them.
Between internal growth and, hopefully, smart, targeted acquisitions, we are working to shape this company into a player in the aerospace and defense supply chain."
ABOUT AIR INDUSTRIES GROUP, INC.
Air Industries Group, Inc. (
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
