Fields Aircraft Anticipates One-Time FY 1998 2nd Quarter Charge for Consolidation of Manufacturing Facilities
New 122,000 sq. ft. world headquarters scheduled for occupancy in July;
Record revenues of $25 million expected in current fiscal year
SIMI VALLEY, Calif.--(BUSINESS WIRE)--June 9, 1998-- Fields Aircraft Spares, Inc. (NASDAQ:FASI - news) Tuesday announced that the Company expects to incur a one-time charge to earnings in the fiscal quarter ending July 3, 1998, of from $750,000 to $1.25 million. This charge is related to the consolidation of several subsidiary manufacturing, warehouse and administrative facilities into the Company's new world headquarters in Simi Valley, Calif., and the adding of the infrastructure needed to support anticipated future growth. The Company anticipates taking occupancy of the new 122,000 square foot facility in July. The Simi Valley world headquarters, combined with the Company's 80,000 square foot Fillmore facility, will provide Fields with over 200,000 square feet of combined manufacturing, warehousing and executive space.
In addition to housing its offices, the Company will utilize the new facilities to consolidate its aircraft cabin interior replacement products distribution business and to consolidate the operations of Flightways Manufacturing, a manufacturer of high-quality plastic replacement components for commercial aircraft seats and interiors. The Fillmore facility will continue to house the Company's extensive inventory of factory new parts for DC-8, DC-9, DC-10 and MD 80 aircraft.
''This puts under one roof the core manufacturing and distribution operations of the Company, and its executive officers and administrative staff as well as providing space for several additional planned acquisitions. We anticipate that this consolidation into our new facility will contribute to improved efficiency, economies of scale, and operating cost reductions in the future,'' stated Alan Fields, the Company's President.
Fields Expects To Achieve Record $25 Million In Revenues In Fiscal 1998
''As a result of our successful strategy of growth through internal operations as well as acquisitions, we are comfortable in achieving our target of 100% increase in revenues to approximately $25 million in fiscal 1998. This will mark the second consecutive year of doubling of revenues. We grew from approximately $5.7 million in fiscal 1996 to $12.1 million in fiscal 1997. This rate of revenue growth is continuing into fiscal 1998, and we are comfortable in achieving both our 1998 revenue target and our goal of $40 million in 1999.
''Our customers represent the leadership in the aviation industry. Examples of this would be our replacement parts supply agreements with both Delta Airlines and United Airlines, as well as our recent appointment as trading partner with United Airlines. Further, our capital position remains strong with current cash and credit availability of over $4 million.
''Today Fields competes in an estimated $10 billion annual aircraft spare parts industry. Our strategy continues to be that of being a high quality, one-stop provider of aircraft cabin interior replacement products as well as supporting our customers with a wide spectrum of after-market parts. We continue to aggressively seek additional authorized distributorships, additional manufacturing acquisitions and agreements to supply both the major and regional airlines. This new facility is vital in providing the Company adequate infrastructure to accommodate our expected internal growth as well as potential future acquisitions,'' said Fields.
Lawrence Troyna, Chief Financial Officer, continued, ''We believe that upon the consolidation of our various operations, the successful achievement of our revenue targets in 1998 and the completion of additional planned acquisitions, appropriate economies of scale and cost savings will result in returning the Company to meaningful levels of profitability thereafter.''
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 a 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 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, the 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. |
