Breeze-Eastern Announces Lease Agreement for New Corporate Office and Plant Relocation
May 15 2009 - 5:01PM
Business Wire
Breeze-Eastern Corporation (NYSE Amex:�BZC) today announced that
it has entered into a lease agreement for the relocation of its
corporate offices and manufacturing facility to an existing
facility located in Whippany, New Jersey. The lease provides for a
term of ten years, with two renewal terms of five years each,
exercisable at the discretion of the Company. The relocation will
require the build out, within the existing structure, of offices
and manufacturing space.
Robert L. G. White, President and Chief Executive Officer of the
Company, said, �We are very excited about the efficiencies that we
expect to gain in our new space, which will be designed and
outfitted to our specifications. When we made the decision to sell
and lease back our existing facility some 18 months ago, it was
with the idea that we would locate a facility that would better
serve the needs of our growing and changing business. After a
careful search, we have secured the right facility, which is
located only eleven miles from our existing facility. The move is
expected to be completed in the third quarter of fiscal 2010.�
Mr. White continued, �The relocation will require a cash outlay
of approximately $5.0 million to build out the new facility,
substantially all of which will be capitalized and which we expect
to fund out of cash flow from operations. Aside from the actual
cost of the physical move, we expect that additional costs related
to occupancy of the new facility will be approximately $0.4 million
in fiscal 2010. In addition, we plan to continue our debt reduction
program with a targeted principal reduction of our debt in the area
of $5.0 million to $6.0 million in fiscal 2010.�
Breeze-Eastern Corporation (http://www.breeze-eastern.com) is
the world�s leading designer and manufacturer of sophisticated
lifting devices for military and civilian aircraft, including
rescue hoists, cargo hooks, and weapons-lifting systems. The
Company, which employs approximately 180 people at its facility in
Union, New Jersey, reported sales of $76.0 million in the fiscal
year ended March 31, 2008.
INFORMATION ABOUT FORWARD-LOOKING
STATEMENTS
Certain statements in this press release constitute
�forward-looking statements� within the meaning of the Securities
Act of 1933, as amended, and the Securities Exchange Act of 1934,
as amended (the "Acts"). Any statements contained herein
that are not statements of historical fact are deemed to be
forward-looking statements.
The forward-looking statements in this press release are
based on current beliefs, estimates and assumptions concerning the
operations, future results, and prospects of the Company. As
actual operations and results may materially differ from those
assumed in forward-looking statements, there is no assurance that
forward-looking statements will prove to be accurate.
Forward-looking statements are subject to the safe harbors
created in the Acts.
Any number of factors could affect future operations and
results, including, without limitation, competition from other
companies; changes in applicable laws, rules and regulations
affecting the Company in the locations in which it conducts its
business; interest rate trends; a decrease in the United States
government defense spending, changes in spending allocation or the
termination, postponement, or failure to fund one or more
significant contracts by the United States government;
determination by the Company to dispose of or acquire additional
assets; general industry and economic conditions; events impacting
the U.S. and world financial markets and economies; and those
specific risks that are discussed in the Company�s previously
filed Annual Report on Form 10-K for the fiscal year ended
March 31, 2008 and Quarterly Report on Form 10-Q for the period
ended December 28, 2008.
The Company undertakes no obligation to update publicly any
forward-looking statements, whether as a result of new information
or future events.
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