Aviation Group Inc. Reports 2nd Quarter Fiscal 1999 Results
DALLAS--(BUSINESS WIRE)--March 1, 1999--Aviation Group Inc. (Nasdaq:AVGP - news) today announced net income for the second quarter ended Dec. 31, 1999, of $67,000 or $.02 per share on record revenues of $6,445,000. For the same three-month period ended Dec. 31, 1997, the Company reported revenues and net earnings of $6,106,000 and $63,000 or $.02 per share, respectively.
For the six months ended Dec. 31, 1998, the Company reported revenues and net income of $12,069,000 and $85,000 or $.03 per share, respectively. During the same six-month period ended Dec. 31, 1997, the Company reported revenues and net loss of $9,222,000, and ($559,000) or ($.19) per share, respectively.
''Internal growth, principally from our Overhaul and Service Division was strong in the second quarter,'' said Lee Sanders, CEO. ''As our United Airlines paint contract is reaching successful conclusion, management is working hard to replenish its aircraft paint backlog. We have successfully obtained contracts from United Parcel Service, Piedmont Airlines, Air New Zealand and others, while we continue to negotiate additional work with other large air carriers that, if obtained, will allow us to maintain profit margins. In the meantime, reductions in overhead levels will minimize third quarter losses, and we are presently working on a couple of interesting acquisitions that, if completed, could have a significant effect to our growth and profitability,'' said Sanders.
The company also announced today that in addition to pursuing acquisitions that meet its strict purchase and funding criteria, it is also considering a plan to pursue strategic alliances and combinations with other larger aviation outsourcing and service companies. ''Maximizing share value is the top priority,'' said Sanders. ''Our stock is trading well below what management considers to be the breakup value of the enterprise. As we continue to work with our investment advisors to promote our company and stock to the investment community, other share-price maximizing strategies are also being considered.''
Aviation Group is a publicly traded holding company based in Dallas. Aviation Group operates world-class painting facilities through its Aviation Exteriors Inc. (''AvEx'') subsidiaries in New Iberia, La., 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. Additional information can be obtained from the Company's Web site at www.aviationgroup.com.
AVIATION GROUP INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
Three Months Ended Six Months Ended
December 31, December 31,
------------ ------------
1998 1997 1998 1997
---- ---- ---- ----
Revenue $6,445,000 $6,106,000 $12,069,000 $9,222,000
Cost of Revenue 4,332,000 4,231,000 8,742,000 6,839,000
----------- ----------- ------------ -----------
Gross Profit 2,113,000 1,875,000 3,327,000 2,383,000
----------- ----------- ------------ -----------
General and
Administrative
Expenses 1,632,000 1,554,000 2,549,000 2,680,000
Depreciation and
Amortization 269,000 191,000 478,000 330,000
----------- ----------- ------------ -----------
1,901,000 1,745,000 3,027,000 3,010,000
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Income (Loss)
From Operations 212,000 130,000 300,000 (627,000)
----------- ----------- ------------ -----------
Other Income
(Expenses)
Other Income
(Expense) 1,000 (5,000) 6,000 15,000
Interest Expense,
net (136,000) (25,000) (197,000) (189,000)
----------- ----------- ------------ -----------
(135,000) (30,000) (191,000) (174,000)
----------- ----------- ------------ -----------
Income (Loss)
Before Income
Taxes 77,000 100,000 109,000 (801,000)
Provision (Benefit)
for Income Taxes 10,000 37,000 24,000 (242,000)
----------- ----------- ------------ -----------
Net Income (Loss) $ 67,000 $ 63,000 $ 85,000 $ (559,000)
----------- ----------- ------------ -----------
----------- ----------- ------------ -----------
Earnings (loss) per
common share
Basic and diluted $ 0.02 $ 0.02 $ 0.03 $ (0.19)
----------- ----------- ------------ -----------
----------- ----------- ------------ -----------
Weighted average
common and shares
outstanding 3,463,970 3,266,050 3,407,613 2,889,499
----------- ----------- ------------ -----------
----------- ----------- ------------ -----------
Except for the historical 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 certain customers, 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 |
