Monday August 16, 11:28 pm Eastern Time
Company Press Release
Aviation Sales Company Closes TIM-TAMTransaction With Kitty Hawk, Inc. MIAMI--(BUSINESS WIRE)--Aug. 16, 1999--
Aviation Sales Company (NYSE:AVS - news) today announced that it has closed on the previously-announced agreement with Kitty Hawk, Inc. (Nasdaq:KTTY - news) to acquire the assets of Kitty Hawk's airframe and JT8D engine maintenance operations located in Oscoda, Michigan and to provide heavy airframe and engine maintenance services to Kitty Hawk on its fleet of Boeing 727 airplanes and JT8D engines under a three year exclusive business partnership. Under the terms of the acquisition agreement, Aviation Sales Company paid $18.0 million in cash and will deliver $3.5 million in purchase credits to be issued during future periods. The acquisition is expected to be neutral to the Company's earnings in fiscal 1999 and accretive in fiscal 2000.
Kitty Hawk, based in Dallas, Texas, provides global air freight carrier service, scheduled overnight air cargo service to more than 40 U.S. cities through its hub in Ft. Wayne, Indiana and air charter logistics management.
Dale S. Baker, the Company's Chairman and Chief Executive Officer, said: ''We are excited about the Kitty Hawk transaction because we believe that it demonstrates breakthrough thinking in terms of an airline's approach to aircraft maintenance. We believe that airlines can avoid significant capital investment, achieve better operating performance, maintain fleet flexibility and enjoy overall lower operating costs by utilizing a world-class third party provider of services such as Aviation Sales Company. We look forward to working with the entire Kitty Hawk team.''
Baker went on to say: ''We believe this transaction demonstrates how Aviation Sales Company can deliver comprehensive service to meet the total need of an airline customer. We believe we will have other opportunities in the future to enter into transactions similar to Kitty Hawk that allow us to deliver to our customers TIM (Total Inventory Management) and TAM (Total Aircraft Maintenance) services.''
Aviation Sales Company is a leading independent provider of fully integrated aviation maintenance and inventory services, including aircraft heavy maintenance, component repair and overhaul, engine repair and overhaul, leasing, the distribution of aircraft spare parts and the manufacture of new components for major commercial airlines, original equipment manufacturers and maintenance and repair facilities.
Except for historical information contained herein, this release contains certain forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties, which may cause the Company's actual results in future periods to differ materially from forecasted results. A number of factors, including those identified below, could adversely affect the Company's ability to obtain these results: the Company's ability to acquire adequate (more) inventory and to obtain favorable pricing for such inventory, competitive pricing for the Company's products and services, increased competition in the aircraft spare parts redistribution and MRO markets, the ability to consummate suitable acquisitions, the continuing ability to effectively integrate acquisitions, economic factors which affect the airline industry, and changes in government regulations. Certain of these risks are described in the Company's 10-K filings with the Securities and Exchange Commission (SEC). Copies of the Company's 10-K and 10-Q are available from the SEC or may be obtained upon request from the Company. The Company does not undertake any obligation to update the information contained herein, which speaks only as of this date.
Contact:
Morgen-Walke Associates:
Gordon McCoun/Jennifer Angell
212/850-5600
or
Media contact
Eileen King/Stacey Reed
212/850-5600
or
Aviation Sales Company:
Dale S. Baker
Chairman/Chief Executive Officer
305/599-6619 |
