Fields Aircraft Spares Reports First Quarter Fiscal 1999 Results
SIMI VALLEY, Calif.--(BUSINESS WIRE)--June 8, 1999--Fields Aircraft Spares, Inc. (Nasdaq:FASI - news) today announced results for its fiscal 1999 first quarter ended April 2, 1999.
The company reported net sales of $5.3 million, as compared to $5.6 million for the quarter ended April 3, 1998, for a slight decrease of $305,000, or 5.5%.
This decrease is attributable to a $454,000 decline in sales from distribution and redistribution, as well as a $538,000 decline from the company's Flightways Manufacturing, Inc. subsidiary, which were partially offset by $687,000 in sales from the inclusion of Skylock Industries, another acquisition.
Fields acquired Flightways Manufacturing, Inc. in January of 1998 and Skylock Industries in April of 1998. Thus, Flightways Manufacturing, Inc. is included in both the fiscal 1998 and 1999 first quarters, while Skylock is only included in fiscal 1999.
While gross margins remained substantially unchanged as a percentage of revenues, 31.3% and 32.5% respectively, for the quarters ended April 2, 1999 and April 3, 1998, the company generated an operating loss of $50,000 for the current year's first quarter as compared to an operating income of $586,000 for the year-ago period.
The decrease in operating income was attributable to increased operating expenses and a rescheduling of delivery dates by a number of customers.
Operating expenses increased $473,000 from $1.2 million in the first quarter of fiscal 1998 to $1.7 million in the current year first quarter. This rise was attributable to the inclusion of Skylock as well as the costs associated with operating the company's new facility.
As a result of higher operating expenses and a temporary rescheduling of delivery dates by customers, the company reported a net loss of $730,000, or $.29 per basic and diluted share, for the quarter ended April 2, 1999 compared to net income of $110,000, or $.05 per basic and $.04 per diluted share, for the comparable period of 1998.
Alan Fields, the company's president and CEO commented: ''This quarter's results were primarily driven by two factors, which we believe will work to our advantage in the not too distant future. Our operating expenses have increased due to the new 122,000-square-foot facility into which we have moved and the related infrastructure increases that were needed to support future growth through acquisitions.
''This new facility and increased infrastructure puts more of our operations under one roof and affords us room to integrate prospective future subsidiaries. In accordance with our growth strategy, the higher operating expenses will eventually be spread over a larger revenue base.''
Fields continued: ''The heightened demand for air travel has resulted in airlines carrying record numbers of passengers as well as setting records for the percentages of seats filled. While this bodes well for our future growth, it has resulted in a number of rescheduling of deliveries by customers as they defer planned refurbishment of aircraft cabin interiors.
''Based on discussions with our customers, we believe the reschedulings we have experienced in the first and second quarters of 1999 will result in a carry-over of those sales into the third and fourth quarters of the year.
''We continue to actively seek additional financing to continue our strategy of growth through acquisitions, while at the same time focusing on reducing costs and realizing further synergies between our subsidiaries.''
About Fields Aircraft Spares
Fields Aircraft Spares, Inc., through its wholly owned subsidiaries Fields Aircraft Spares Incorporated, Fields Aero Management, Inc., Flightways Manufacturing, Inc. and Skylock Industries, is a manufacturer and leading distributor of aircraft cabin interior replacement products and is a redistributor for a wide variety of factory new parts applicable to the majority of commercial aircraft models and manufacturers.
Additional information about Fields, including access to copies of its periodic filings with the Securities and Exchange Commission, is available on the company's Web site at www.fieldsair.com.
Statements in this news release that relate to future plans, financial results or projections, events or performance are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements are subject to risks and uncertainties that could cause actual results to differ materially. Actual results may differ from such forward-looking statements as a result of a number of factors, including but not limited to competitive factors and pricing pressures, ability to obtain profitability and obtain enough capital or financing to sustain the company until such time, the price and availability of aircraft parts and other materials, successful execution of the company's expansion plans, including the ability to complete contemplated acquisitions and to successfully combine the businesses, the ability to control costs, the ability to maintain existing customer or vendor relationships, shifts in market demand, general economic conditions, Year 2000 issues and other risks and uncertainties discussed in periodic reports filed by the company with the Securities and Exchange Commission and which the company urges investors to consider. Copies of filed reports may be requested from the company or obtained from the company's Web site.
Fields Aircraft Spares Inc.
Consolidated Statements of Operations
Three months ended
April 2, April 3,
1999 1998
Sales $ 5,291,000 $ 5,596,000
Cost of sales $ 3,633,000 $ 3,775,000
Gross profit $ 1,658,000 $ 1,821,000
Operating expenses $ 1,708,000 $ 1,235,000
Income (loss) from operations $ (50,000) $ 586,000
Other expense $ 679,000 $ 473,000
Income (loss) before provision
for income taxes $ (729,000) $ 113,000
Provision for income taxes $ 1,000 $ 3,000
Net income (loss) $ (730,000) $ 110,000
Net income (loss) per share -
basic $ (0.29) $ 0.05
Net Income (loss) per share -
diluted(a) $ (0.29) $ 0.04
Weighted average number of
common shares outstanding - basic 2,483,781 2,149,792
Weighted average number of
common shares outstanding - diluted 3,542,217 3,542,210
Note (a): Not all the common shares outstanding on a diluted basis are used in calculating the net income (loss) per share due to the antidilutive provisions of FASB 128. |
