BAY SHORE, NY--(Marketwire - December 30, 2010) - Air Industries Group, Inc. (
For the year ended December 31, 2009 net sales were $44,851,000, an increase of $6,157,000 or nearly 16% compared to net sales of $38,694,000 for the prior year. Income from operations was $1,116,000 for the year ended December 31, 2009 compared with a loss of $(5,820,000) in the prior year. The loss for 2008 included a charge of $4,532,000 for the impairment of goodwill. These results are summarized in the following chart:
Year ended December 31,
2009 2008 Change v Prior Year
------------- ------------- -----------------------
Net Sales $ 44,851,000 $ 38,694,000 $ 6,157,000 15.91%
Income (Loss) from
Operations $ 1,116,000 $ (5,820,000) $ 6,936,000 119.18%
Net Loss:
Continuing
Operations $ (2,634,000) $ (7,798,000) $ 5,164,000 66.22%
Total $ (3,058,000) $ (16,874,000) $ 13,816,000 81.88%
The Company's financial statements for the years ended December 31, 2009 and 2008, 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 adjusted to give effect to the reverse split of the Company's common shares, but do not give effect to the conversion of the Series B Preferred shares into common stock. As of December 31, 2010, after giving effect to the conversion of its outstanding shares of Series B Preferred into common shares, Air Industries has approximately 3.6 million shares of common stock outstanding.
Mr. Peter Rettaliata, Chief Executive Officer of Air Industries, commented: "I am very gratified by the improvement in our financial results for 2009. Air Industries faced many challenges in 2008 arising from the failure to complete the acquisition of Blair/HSM and the need to discontinue the operations of our Sigma Metals subsidiary. Our employees worked tirelessly during 2009 and 2010 to improve our on-time delivery of products and other 'metrics' used by our customers to measure our performance and I am proud to report that Air Industries has regained its former position as both a valued and reliable supplier.
"I am also happy to report that our Welding Metallurgy ("WMI") subsidiary, acquired in August 2007, continues to enjoy very rapid growth. During 2009, net sales at WMI increased by almost 40% from the prior year."
Financial Results for the Nine Months ended September 30, 2010 and 2009:
For the nine months ended September 30 2010, net sales were $36,678,000, an increase of $3,396,000 or approximately 10% compared to net sales of $33,282,000 for the same period in 2009. Income from operations increased by more than 75% to $2,858,000 and the loss from continuing operations (after income tax benefit) in the first nine months of 2010 declined to $(939,000). These results are summarized in the following chart:
Nine Months ended September 30,
unaudited and unreviewed
--------------------------
2010 2009 Change v Prior Year
------------ ------------ -----------------------
Net Sales $ 36,678,000 $ 33,282,000 $ 3,396,000 10.20%
Income from Operations $ 2,858,000 $ 1,617,000 $ 1,241,000 76.75%
Net Loss:
Continuing Operations $ (939,000) $ (2,185,000) $ 1,246,000 57.03%
Total $ (540,000) $ (2,169,000) $ 1,629,000 75.10%
In the fourth quarter of 2008 and continuing into the first quarter of 2009, the Company issued Junior Subordinated Notes (the "Notes") together with Series B Preferred to investors. These Notes when issued were initially carried on the books of the Company at less than face value as the Company recorded a discount for the value of the Series B Preferred. The Notes had an initial maturity date (since extended) of April 2010. The Company has incurred accretion expense, which is treated as interest, as the carrying value of the Notes was periodically increased (accreted) to face value. During the nine months ended September 30, 2010, this accretion expense -- which is a non-cash expense -- was $1,323,000. As of April 2010, the Notes were carried at face value and there will be no future accretion expense relating to these Notes.
Mr. Rettaliata continued: "During the first nine months of 2010, we continued to build on and accelerate the improvements in our results that began in 2009. For the nine months, net sales at both of our operating subsidiaries improved: with Air Industries Machining reporting an increase in net sales of $1,183,000 or approximately 4% and WMI reporting an increase of $2,213,000 or approximately 54% as compared to the prior period.
"The Company's financial information presented for the nine months ended September 30, 2010 and 2009 are unaudited and were not reviewed by RMSBG."
Financial Results for the Three Months ended September 30, 2010 and 2009:
For the three months ended September 30, 2010 net sales were $12,036,000, an increase of $1,034,000 or approximately 9% compared to net sales of $11,002,000 for the same period in 2009. Income from operations for the three months ended September 2010 increased by over 207% to $680,000 compared to $221,000 for the three months ended September 2009. These results are summarized in the following chart:
Three Months ended September 30,
unaudited and unreviewed
--------------------------
2010 2009 Change v Prior Year
------------ ------------ -----------------------
Net Sales $ 12,036,000 $ 11,002,000 $ 1,034,000 9.40%
Income from Operations $ 680,000 $ 221,000 $ 459,000 207.69%
Net Loss:
Continuing Operations $ (538,000) $ (1,166,000) $ 628,000 53.86%
Total $ (579,000) $ (1,061,000) $ 482,000 45.43%
The Company's financial information presented for the three months ended September 30, 2010 and 2009 are unaudited and were not reviewed by RMSBG.
Refinancing and extension of it senior credit facility with PNC:
In November 2010, Air Industries and PNC agreed to and executed an extension and expansion of the Company's Senior Credit facility. The credit facility now provides for a combination of a revolving loan based on the Company's inventory and accounts receivable, including those of WMI, and a term loan. Under the new terms of the credit facility, the maturity date was extended for three years to November 2013. In addition the credit facility was expanded to provide a $3.0 million term loan. The proceeds of this term loan together with availability under the revolving loan were used to repay approximately $4.2 million owed to Steel City Capital Funding -- thus the total amount outstanding was not materially increased.
Air Industries benefitted from the additional availability under the new terms of its credit facility. Interest expense under the expanded credit facility will be essentially equal to the costs of the Company's prior facilities with PNC and Steel City Capital Funding which effectively were combined into the new credit facility with PNC.
Intention to voluntarily resume filing periodic reports with the Securities & Exchange Commission:
Air Industries also announced that its Board of Directors determined to voluntarily resume filing periodic reports with the SEC. This will be accomplished by the filing of a Form 10 with the SEC. The Company expects to file its Form 10 in March 2011 following completion of the audit of its 2010 results. Generally, a Form 10 filed with the SEC becomes automatically effective 60 days after filing. However, the SEC is entitled to comment and seek additional information from the filer and if this occurs, the effective date could be delayed. There can be no assurance of the date the Form 10 will be become effective.
When the Form 10 is effective, it is the intention of Management and the Board to seek a listing of the shares of the Company on an exchange. The Company is examining alternatives at this time.
Mr. Rettaliata, commented: "Air Industries voluntarily suspended filing periodic reports with the SEC in October 2009 to reduce costs relating to reporting and also to allow management to focus on improving our financial results, and our metrics with our customers. I am very pleased that we have been successful in these efforts. Now that we have stabilized our operations -- as reflected in our improving income statement results and the confidence shown in us by PNC -- the Board believes it is appropriate to resume reporting of our results for the benefit of our shareholders."
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
