FASI Sales up 148 percent in 2nd Qtr - 5 cents per share profit vs 6 cents loss.
Fields Aircraft Spares Announces Record Quarter
Sales Jump 148 Percent
SIMI VALLEY, Calif.--(BUSINESS WIRE)--Aug. 7, 1997--Fields Aircraft Spares Inc. Thursday announced that sales for the second quarter ended June 30, 1997, increased 148 percent to $2,941,000, compared with sales for the same quarter last year of $1,186,000.
Net earnings for the quarter increased $200,000 going to a profit of $115,000, or 5 cents per share fully diluted, from a loss of $85,000, or 6 cents per share.
Commenting on the quarter's results, Lawrence Troyna, chief financial officer, stated: ``When you consider that the loss in 1996 included a $256,000 gain on the settlement of an insurance claim, the results are even more dramatic. Profits in the 1997 quarter increased by an almost unbelievable $456,000.''
For the six-month period ended June 30, 1997, the company reported sales of $5,030,000, approximately double the sales of $2,546,000 reported for the comparable period in 1996. For the six-month period, the company reported a net loss of $539,000, or 24 cents per share, as compared with a net income of $227,000, or 16 cents per share on a fully diluted basis, for the six-month period in 1996.
Commenting on the six-month results, Troyna said: ``The real story for the six-month period comes through when we eliminate the 1996 non-operating gain of $909,000 relating to the settlement of an insurance claim, and the 1997 non-operating expense of $340,000 relating to the write-off of capitalized loan costs. Without these two items, the net income improvement in 1997 over 1996 is a record-setting $881,000.''
The company attributes the increase in sales to the overwhelming success of its recently introduced aftermarket aircraft inventory management and supply program. Under this unique program, the company enters into agreements with aircraft component manufacturers to buy, at negotiated prices, parts used in the repair of aircraft.
The company then enters into arrangements with air carriers and aircraft overhaul facilities to supply these needed parts, using the customer's own maintenance records to forecast demand. Under this program, the company eliminates the need for the air carrier to hold supply parts inventories, provides timely access to parts to keep aircraft flying and allows the manufacturer more effective scheduling of replacement part production and shipment.
Alan Fields, president and chief executive officer, said: ``We are thrilled with the tremendous increase in sales and our return to profitability. Our strategy of entering into arrangements with major air carriers, under which we relieve them of much of the cost of holding and managing inventories, is paying off in dramatically improved bottom-line performance.''
Looking forward, Fields said: ``With additional air carriers and aircraft component manufacturers now negotiating with us on this type of program, we are optimistic on the revenue and earnings outlook for the balance of the year. We expect excellent top-line growth, and profits in both the third and fourth quarters.''
Other highlights of the quarter include a 59 percent increase in the company's maximum credit facility to $10 million from $6.3 million, with substantially lower interest rates and facility fees.
Fields Aircraft Spares, through its wholly owned subsidiaries Fields Aircraft Spares Inc. and Fields Aero Management Inc. is a leading distributor of aircraft cabin interior replacement products and is a broker for a wide variety of factory new parts applicable to various 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: 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 necessary capital or financing, the price and availability of aircraft parts and other materials, successful execution of the company's expansion plans, failure to maintain existing customer or vendor relationships, shifts in market demand, general economic conditions 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.
Condensed Financial Data
(Unaudited)
Three months ended Six months ended
June 30, June 30,
1997 1996 1997 1996
Net sales $ 2,941,000 $ 1,186,000 $ 5,030,000 $ 2,546,000
Cost of sales 1,753,000 741,000 2,988,000 1,356,000
Gross margin 1,188,000 445,000 2,042,000 1,190,000
Operating
expenses 793,000 464,000 1,637,000 1,241,000
Operating income
(loss) 395,000 (19,000) 405,000 (51,000)
Other expense
(income):
Casualty gain -- (256,000) -- (909,000)
Interest expense,
net 278,000 322,000 942,000 628,000
Total other
expense
(income) 278,000 66,000 942,000 (281,000)
Income (loss)
before income tax 117,000 (85,000) (537,000) 230,000
Income taxes 2,000 -- 2,000 3,000
Net Income (loss) $115,000 $(85,000) $(539,000) $ 227,000
Net Income (loss)
per share -- fully
diluted $ 0.05 $ (0.06) $ (0.24) $ 0.16 |
