Fields Aircraft Announces Record Revenues for Q3 1998
SIMI VALLEY, Calif.--(BUSINESS WIRE)--Nov. 16, 1998--
-- Third Quarter Marks Seventh Consecutive Quarter of Record
Revenues
-- Quarterly Income from Operations Rises Approximately 75%
-- Nine-Month Income from Operations Increases 131%
Fields Aircraft Spares, Inc. (Nasdaq:FASI - news) announced today results for the third quarter of its 1998 fiscal year, ended Oct. 2, 1998.
For the quarter, the Company reported sales of $6,120,000 and net income of $242,000, or $0.08 per share diluted. For the prior year's third quarter, which ended Sept. 30, 1997, the Company reported sales of $3,414,000 and net income of $161,000, or $0.07 per share diluted.
This increase in net sales of $2,706,000, or approximately 79%, was across the broad range of the Company's products including approximately $1,532,000 as a result of the inclusion of sales of Flightways Manufacturing, Inc. (''Flightways'') and approximately $521,000 as a result of the inclusion of sales of Skylock Industries, Inc. (''Skylock''). Wholly owned Flightways was acquired in January 1998, and wholly owned Skylock was acquired in April 1998.
For the nine months ended Oct. 2, 1998, the Company reported sales of $17,510,000, compared to net sales of $8,444,000 for the comparable period of 1997, an increase of $9,066,000, or approximately 107%, and a net loss of $703,000, or $0.15 per share diluted. For the prior-year nine months ended Sept. 30, 1997, the Company reported sales of $8,444,000, and a net loss of $376,000, or $0.19 per share diluted.
This increase in net sales was across the broad range of the Company's products including approximately $4,520,000 as a result of the inclusion of sales of Flightways, and approximately $1,023,000 as a result of the inclusion of sales of Skylock.
The increase in net loss is attributable to a non-recurring $1.2 million charge taken in the second quarter of 1998 related to the consolidation of several subsidiaries' operations into the Company's new world headquarters in Simi Valley and the addition of infrastructure to support anticipated future growth.
For the third quarter of 1998, the Company and its subsidiaries generated income from operations of $829,000, compared to operating income of $475,000 for the comparable period of 1997, an increase of approximately 75%. Nine-month operating income increased 131%, to $2,036,000, for the first nine months of 1998, from $880,000 for the comparable period of 1997.
Alan Fields, president of Fields Aircraft Spares, commented on the quarter's results, ''With our continued growth in the third quarter, we have achieved our seventh consecutive quarter of record revenues. Additionally, our net income has shown strong improvement, increasing 50% to $242,000.
''These results were driven by organic growth and synergies created through the successful integration of acquisitions made in previous quarters. Our numbers point to the success of our growth strategy. Going forward, we expect a slight loss to break-even fourth quarter, as this tends to be a cyclically slow time in our business.''
On March 30, 1998, the Company changed its fiscal year to a 52-53 week year ending on the Friday of the calendar week which contains the last business day of December, which is why comparable periods for 1998 and 1997 end on different dates.
About Fields Aircraft Spares
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 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.
Fields Aircraft Spares Inc.
Consolidated Statements Of Operations
(Unaudited)
(In thousands, except earnings per share data)
Three Months Ended Nine Months Ended
Oct. 2, Sept 30, Oct. 2, Sept. 30,
1998 1997 1998 1997
Sales $ 6,120 $ 3,414 $17,510 $ 8,444
Cost of sales 4,028 2,148 11,593 5,136
Gross profit 2,092 1,266 5,917 3,308
Operating expenses 1,263 791 3,881 2,428
Income from Operations 829 475 2,036 880
Other expense 585 307 2,730 1,249
Income (loss) before
provision for income taxes 244 168 (694) (369)
Provision for income taxes 2 7 9 7
Net income (loss) $ 242 $ 161 $ (703) $ (376)
Net income (loss) per share,
basic $ 0.10 $ 0.08 $(0.31) $(0.22)
Net income (loss) per share,
diluted $ 0.08 $ 0.07 $(0.15) $(0.19) |
