Fields Aircraft Spares Announces Record Quarter; Sales Jump 112%; Earnings Nearly 300%
Business Wire - November 14, 1997 13:13
SIMI VALLEY, Calif.--(BUSINESS WIRE)--Nov. 14, 1997--Fields Aircraft Spares Inc. (Nasdaq:FASI) Friday announced that sales for the third quarter ended Sept. 30, 1997 increased 112% to $3,414,000, compared with sales for the same quarter in 1996 of $1,612,000.
Net earnings for the quarter increased to a profit of $161,000, or 6 cents per share fully diluted, from a loss of $81,000 or a loss of 5 cents per share in 1996.
The increase in sales is attributable to Field's recently launched, 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 parts inventories, provides timely access to parts to keep aircraft flying and allows the manufacturer more effective scheduling of replacement part production and shipment.
For the nine month period ended Sept. 30, 1997, the company reported sales of $8,444,000, over double the sales of $4,158,000 reported for the comparable period in 1996. For the nine month period, the company reported a net loss of $376,000, or a net loss of 18 cents per share, as compared with net income of $146,000, or 9 cents per share on a fully diluted basis, for the nine month period in 1996.
Commenting on the nine month results, Lawrence Troyna, chief financial officer, said, "We have generated profits in both the second and third quarters of 1997. As we've been saying for some time, it is difficult to compare this year's results with last year's. If you look at the nine month results after eliminating 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, you get a better and more accurate picture of the company, and the nine month results for 1997 are significantly better than for the comparable nine month period in 1996."
Alan Fields, president and chief executive officer, said, "We are thrilled with the tremendous increase in sales. This was our second quarter of year-to-year sales gains in excess of 100%. 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 and has been paying off dramatically. Also, the company has hit the $50 million sales mark inception to date, and we are very excited about this."
Looking forward, Fields said, "With additional air carriers and aircraft component manufacturers now negotiating with us on this type of program,, we remain optimistic in regards to continued revenue and earnings growth on a year-to-year, quarterly comparative basis. We have been planning the development of an overseas warehouse operation in Europe as we continue to concentrate on expanding our after-market aircraft inventory management and supply program, and recently completed a private debt offering to fund this expansion. In addition, we continue to look for potential acquisition opportunities whose products will fit into our distribution systems."
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, including statements with respect to the development of an overseas warehouse operation in Europe and potential acquisition opportunities, 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.
CONTACT: Fields Aircraft Spares Inc., Simi Valley
Alan Fields, 805/583-0080
or
Coffin Communications Group, Sherman Oaks, Calif.
Michael S. Manahan, 818/789-0100
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