168 Percent First Quarter Sales Jump Announced By Fields Aircraft Spares
SIMI VALLEY, Calif.--(BUSINESS WIRE)--May 19, 1998--Fields Aircraft Spares Inc. (Nasdaq:FASI - news) Tuesday announced that sales for the first quarter ended April 3, 1998, increased 168 percent to $5,596,000, compared with sales for the quarter ended March 31, 1997, of $2,089,000.
Net earnings for the quarter increased to a profit of $110,000, or 6 cents per share fully diluted, from a loss of $654,000, or a loss of 29 cents per share, in 1997.
The increase in revenues included $1,944,000, or an increase of 93 percent, in sales of its historical product lines, and $1,563,000 as a result of the inclusion of sales of Flightways Manufacturing Inc., a wholly owned subsidiary acquired in January 1998. Flightways' backlog at April 3, 1998, was approximately $3.4 million, compared with approximately $1.2 million at March 31, 1997.
The continued increase in Fields' internal growth is directly attributable to the company's ongoing aftermarket aircraft inventory management and supply program. Under this 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.
For the quarter ended April 3, 1998, the company reported gross profit of $1,821,000, over double the gross profit of $854,000 reported for the comparable period in 1997. For the quarter, the company posted an operating margin of 10.5 percent, or $586,000, as compared with .05 percent, or $10,000 for the quarter ended March 31, 1997.
Commenting on the financial results for the quarter, Lawrence Troyna, chief financial officer, said, ''We are definitely off to a solid start in 1998. Our sales growth continues to be strong and we are getting a nice mix of both internal growth and growth through acquisitions.''
Alan Fields, president and chief executive officer, said: ''We are extremely pleased with the tremendous increase in sales. This was our fourth consecutive quarter of year-to-year sales gains in excess of 100 percent. Our strategy of becoming a fully integrated distributor and manufacturer of aircraft cabin interior parts, is and has been paying off dramatically.''
Looking forward, Fields said: ''I have never been more confident of our growth strategy than I am currently, and we remain optimistic in regards to continued revenue growth on a year-to-year, quarterly comparative basis. In the last couple of years, we have solidified our position in the aircraft industry.
''The major players know us by name. Recently, The Los Angeles Times listed Fields as number 32 on The Times 100 list of 'Gazelle' companies (California's fastest-growing, publicly traded companies with annual revenues between $10 million and $50 million).
''The entire list can be found at The Los Angeles Times' Web site at latimes.com. Our manufacturing acquisition strategy is also moving along nicely. We have completed two, and are in talks for several more.''
Fields Aircraft Spares Inc., through its wholly owned subsidiaries Fields Aircraft Spares Incorporated, Fields Aero Management Inc., Flightways Manufacturing Inc. and Skylock Industries Inc., is a manufacturer and a leading distributor of aircraft cabin interior replacement products and is a redistributor 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 at 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, including the ability to complete contemplated acquisitions and to successfully combine the businesses, ability 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
April 3, March 31,
1998 1997
Net sales $ 5,596,000 $ 2,089,000
Cost of sales 3,775,000 1,235,000
Gross profit 1,821,000 854,000
Operating expenses 1,235,000 844,000
Income from operations 586,000 10,000
Interest expense, net 473,000 664,000
Income (loss) before provision for
income taxes 113,000 (654,000)
Provision for income taxes 3,000 --
Net income (loss) $ 110,000 $ (654,000)
Net income (loss) per share
primary basis $ 0.04 $ (0.29)
Net income (loss) per share
fully diluted basis/a $ 0.06 $ (0.29)
Weighted average shares
primary basis 3,062,461 2,249,589
Weighted average shares
fully diluted basis 3,506,323 2,249,589
(a) Fully diluted net income per share is higher than primary net
income due to adjustment in interest payable on convertible debt. |
