HAUPPAUGE, N.Y., Aug. 15, 2018 (GLOBE NEWSWIRE) — Air Industries Group (NYSE MKT: AIRI)
Air Industries Group (“Air Industries” or the “Company”), an integrated manufacturer of precision equipment assemblies and components for leading aerospace and defense prime contractors, announces Managements’ stated goal of focusing on customer demands while remaining disciplined to a reduced cost structure has resulted in quarter over quarter increases in both revenue and Adjusted EBITDA for the Second Quarter of 2018.
Welding Metallurgy Inc.
As announced on July 3, 2018, Management has abandoned its previously announced sale of Welding Metallurgy Inc. (“WMI”) to CPI Aerostructures, Inc., (“CPI”). WMI is no longer considered a “discontinued operation” and is included in the financial results for the second quarter of 2018.
Second Quarter Fiscal 2018 Highlights:
Consolidated net sales were $15.8 million in the Second Quarter ended June 30, 2018 compared to $14.8 million in the First Quarter of 2018 and $12.5 million in the Fourth Quarter of 2017 including WMI. The approximate 6% increase in sales from the First to Second Quarter 2018 reflects continuing operational improvement.
Consolidated gross profit from operations was $2.3 million for the Second Quarter of 2018 and relatively flat to the First Quarter but double the $1.1 million for the Fourth Quarter of 2017. This increase over the Fourth Quarter primarily reflects a shift in production schedule in the Fourth Quarter, that while having a negative impact on sales in the Fourth Quarter, better aligned production to meet Customers’ long term needs.
Operating expenses remained relatively flat at $3.0 million for the Second Quarter, 2018 and $3.1 million in the First Quarter of 2018. For the six months ended June 2018 compared with June 2017, operating costs have declined by $ 1.3 million or 17%.
Adjusted EBITDA from operations was $624,000 for the Second Quarter, a three-fold increase compared to $144,000 in the in the First Quarter of 2018. Improvements in adjusted EBITDA reflect the successful steps the Company has taken on its path to profitability including strict cost controls. Adjusted EBITDA is a non-GAAP financial measure and is reconciled to GAAP financial results in the table below.
Funded Backlog was $111 million at July 31, 2018.
Mr. Lou Melluzzo, CEO of Air Industries said, “As stated previously, we continue to execute on our existing backlog, managing working capital, increasing our inventory turnover, improving operating efficiencies, reducing costs, and delivering for our customers. Although we were disappointed that the WMI transaction did not close, we continue to focus our efforts on improving our liquidity.”
Investor Conference Call
Management will host a conference call on August 15, 2018 at 4:30PM EDT.
Conference Toll-Free Number – 1 855 719 5007
Conference ID – 6174263 Passcode –360 780
ABOUT AIR INDUSTRIES GROUP
Air Industries Group (AIRI) is an integrated manufacturer of precision equipment assemblies and components for leading aerospace and defense prime contractors.
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, future revenues, earnings and adjusted EBITDA, the ability to realize firm backlog and projected backlog, cost cutting measures, 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.
Adjusted EBITDA
| Six Months Ended June 30, | ||||||||
| 2018 | 2017 | |||||||
| Net Loss |
$ | (1,357,000 | ) | $ | (3,126,000 | ) | ||
| Gain on Sale of Subsidiary | – | 160,000 | ||||||
| WMI Asset Reclassification | (1,562,000 | ) | – | |||||
| Adjusted Loss | (2,919,000 | ) | (2,966,000 | ) | ||||
| Interest Expense | 1,628,000 | 1,768,000 | ||||||
| Income Taxes paid | 2,000 | (199,000 | ) | |||||
| Depreciation of property and equipment | 1,444,000 | 1,442,000 | ||||||
| Amortization of intangible assets | 388,000 | 749,000 | ||||||
| Non-cash compensation expense | 225,000 | (73,000 | ) | |||||
| Adjusted Ebitda | $ | 768,000 | $ | 721,000 | ||||
The Company uses adjusted EBITDA as a supplemental liquidity measure because management finds it useful to understand and evaluate results, excluding the impact of non-cash depreciation and amortization charges, stock based compensation expenses, and nonrecurring expenses and outlays, prior to consideration of the impact of other potential sources and uses of cash, such as working capital items. This calculation may differ in method of calculation from similarly titled measures used by other companies.
Contact Information
Air Industries Group
631.881.4913
[email protected]