Sergio and new CADE shareholders for what its worth here is some CADE info.
The Company has grown 83% in two years with 1997 sales of 55.8m
Its core products include the design of gas turbine engine components, commercial and military airframe components, jet engine test equipment, facilities and related ground testing equipment, and overhaul and repair and airframe components. Cade is recognized as one of the world's largest designers and manufacturers of test nacelle systems employed in the ground testing and overhaul of commercial and military engines in service and development.
International sales contributed 21.5% of Cade's sales with products and services provided to 26 countries.
Commercial aviation products accounted for 86% of sales in 1997, with military aviation products contributing 14%.
1997 product mix: Gas turbine products(32.1%), Test facilities & equipment(23.7%), Repair & Overhaul services(22.3%) and Airframe products(21.8%)
Net sales to Pratt & Whitney, Boeing/McDonnell Douglas and the U.S. Government, with which the Company has longstanding customer relations, amounted to 25%, 11% and 7% of 1997 consolidated net sales, respectively(25%, 6% and 5% in 1996, 20%, 5% and 13% in 1995). Export sales by the Company's domestic subsidiaries were 12,002,000, 6,024,000 and 7,028,000, for the years 1997, 1996 and 1995, respectively and accounts receivable relating to foreign revenues as of December 31, 1997 and 1996 are 7,638,000 and 506,000, respectively.
In 1997, earnings increased by 122% to 2,353,000 on revenues of 55.8m, up 60% from 34.8m in 1996. Basic earnings per share rose to .11, compared to .05 in the prior year, with approximately 21.7m shares outstanding. Growth in revenues and earnings has benefited from the Company's diversified product capabilities within the original equipment manufacturer and aftermarket overhaul and repair sectors. This expanded capability fueled there internal sales growth, which accounted for 81% of there revenue increase. Each of there four core product segments had increased revenues, with the largest dollar increases in gas turbine engine products(7.8m) and jet engine test equipment(6.5m). The largest percentage increase occurred in the engine component, overhaul and repair business, which grew at an annualized rate of 82%.
One of the most significant achievements of 1997 was the successful acquisition of Central Engineering Company(Cenco). The acquisition was financed primarily through the use of new debt, in 1997.
The Cenco acquisition gives Cade a unique capability within the world's jet engine test facility market. Cade is now capable of offering a complete turnkey facility for testing and certification of today's commercial and military gas turbine engines. Cade has a current contract to build two of the world's largest test facilities, with completion scheduled in 1998 for the GE 90 Engine Test Facility in Wales, and the Rolls Royce Trent 895 Engine Facility in Thailand.
Cade's order backlog grew to 79.4m as of December 31, 1997, not including overhaul & repair orders which constitute 22% of annual sales. The growth in backlog reflected the acquisition of Central Engineering, as well as continued strong demand for the Company's core products.
Successful implementation of the Company's strategic planning committee initiatives has fueled Cade's growth and they have targeted annual revenues in excess of 100 million by year 2000. Achieving this objective will be dependent upon expansion of Cade's products and services within there four primary product groups and strategic acquisitions. There are numerous opportunities in the four product groups, and they intend to invest resources throughout these groups with an emphasis on FAA-approved overhaul and repair capabilities. World economic stability, solid industry fundamentals and an aggressive growth plan should provide the conditions that result in above-average revenue and earnings growth for Cade Industries.
Joe
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