Aviation Group, Inc. Engages Josephthal & Co. Inc. to Strengthen Acquisition, Finance, and Strategic Activities
DALLAS--(BUSINESS WIRE)--April 9, 1999--Aviation Group, Inc. (Nasdaq:AVGP - news; Nasdaq:AVGPW - news) announced today that it has engaged the New York-based investment banking firm of Josephthal & Co. Inc. to assist it in pursuing and financing acquisitions.
Josephthal will also assist Aviation Group in the development of corporate finance strategies designed to enhance the value of its common shares.
Mr. Lee Sanders, Chairman and CEO of Aviation Group stated, ''We have worked hard for three years to build a superior aviation service business. Our acquisition and operating history has demonstrated the Company's ability to be a significant player in the aviation service consolidation arena. Josephthal's agreement to represent us in future acquisition and financing activity represents a significant step forward in the level and quality of Company support within the investment community.''
Aviation Group has successfully acquired four companies since completing its $6.7 million initial public offering in August 1997. ''Revenues have grown five-fold in three years, yet our Company's stock is trading at levels well below management's estimate of its inherent value,'' said Sanders. ''We must maximize value for shareholders. A combination of properly financed acquisitions, along with other corporate alliance strategies can move us in a positive direction in the near and long term. Josephthal's expertise greatly enhances our opportunities in this important arena.''
Aviation Group is a publicly traded holding company based in Dallas. Aviation Group operates world-class painting facilities through its Aviation Exterior subsidiaries in New Iberia, Louisiana, Greenville, Mississippi, and Portland, Oregon. Through its Tri-Star Airline Services division, Aviation Group provides airline ground services to a variety of passenger and freight airlines at Dallas-Fort Worth International Airport. Its Fixed Base Operations and Airport Management division, through Casper Air Service, provides fuel, parts, and light maintenance services to general, corporate, and freight aircraft customers. The Company's Component Overhaul and Service Division manufactures replacement batteries, precision aviation scales and other component parts for general and commercial airplanes.
Josephthal & Co. Inc. is a full-service investment banking and brokerage firm headquartered in New York. The firm traces its roots to 1910, and today employes over 1,700 people in 28 offices worldwide. Josephthal ranks as the 15th largest securities firm in the U.S., and provides a wide range of financial services to its domestic and international clients including investment banking, research, sales and trading and asset management. The firm offers public and private equity placements, mergers and acquisitions, financial advisory and other corporate finance services.
This press release contains statements that constitute forward-looking statements, as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors that may cause or contribute to such differences include, among other things, the Company's dependence on one customer, changes in the airline travel industry, seasonality of the Company's painting business, risk of future losses from operations, the ability to make additional business acquisitions, uninsured casualty losses, environmental regulation of airline stripping and painting operations and increased competition in the airline services industry. Other risks and uncertainties include changes in business conditions and the economy in general, changes in governmental regulations, unforeseen litigation and other risk factors identified in the Company's SEC filings under ''Risk Factors.'' The Company undertakes no obligation to update these forward-looking statements for revisions or changes after the date of this press release.
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Contact:
Aviation Group, Inc., Dallas
Lee Sanders, 214/922-8100 |
