Aviation Group, Inc. Reports Dramatic Increase for 1st Quarter Fiscal 1999 Profit
Record Revenues & Growth
DALLAS--(BUSINESS WIRE)--Nov. 10, 1998--Aviation Group, Inc. (Nasdaq: AVGP - news) today announced that it dramatically increased revenues and net income to $5,624,000 and $18,000 or $.01 per share for the Sept. 30, 1998 fiscal first quarter. For the same three-month period ended Sept. 30, 1997, revenues and net losses were $3,116,000 and ($622,000) or ($.27) per share. This revenue growth represents an 80% increase over last year's period. ''Strong internal growth combined with profits from our recent acquisitions overcame the historically slow first quarter. For the first time in our history, we posted a profit to start out our year in the black. This significant event was attributable to strong growth in our commercial painting division, along with the other divisions, contributing to a solid first quarter,'' said Lee Sanders, Chairman & CEO. Results include only one month of income generated from the Company's General Electrodynamics Corporation subsidiary, recently acquired in August 1998.
Earnings before interest, depreciation/amortization, and taxes strengthened significantly during the quarter versus the same period last year. For the period ended Sept. 30, 1998, the Company generated positive operating earnings, before depreciation, of $324,000 or $.10 per share versus losses of ($598,000) or ($.26) per share for the first quarter last year. ''The strong first quarter is reflective of solid internal growth and streamlining existing operations. Our operating earnings, before depreciation, improved by $922,000 when compared to the same three-month period last year, reaching an important company milestone. Our existing operations fully covered corporate overhead and infrastructure costs. Continued internal growth, combined with the addition of General Electrodynamics Corporation [OTC BB:GELC - news], should combine to drive future sales and operating profits to even higher levels. Future acquisitions are expected later during this fiscal year, as well,'' Sanders added.
Aviation Group is a publicly traded holding company based in Dallas, Texas. Aviation Group operates world-class painting facilities through its Pride Aviation, Inc. subsidiary in New Iberia, La., Greenville, Miss., and Portland, Ore. 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.
AVIATION GROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
Three Months Ended
September 30,
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1998 1997
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Revenue $5,624,000 $3,116,000
Cost of Revenue 3,450,000 2,609,000
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Gross Profit 2,174,000 507,000
General and Administrative 1,850,000 1,105,000
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Earnings before Interest, Taxes,
Depreciation and Amortization 324,000 (598,000)
Depreciation and Amortization 231,000 information contained herein, 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. |
