Statements of Consolidated Operations table, the Net sales
figure for the Three Months Ended 6/29/08 should read $13,968 (sted
$3,968).
The corrected release reads:
BREEZE-EASTERN REPORTS FISCAL 2010
FIRST QUARTER RESULTS
Breeze-Eastern Corporation (NYSE Amex:�BZC) today reported that
net income for the 2010 fiscal first quarter was $358 thousand
versus $765 thousand in the same prior year period, a decrease of
53% or $.04 per diluted share compared to $.08 in the same period
last year. Operating income for the first quarter of fiscal 2010
decreased 43% to $1.0 million from $1.8 million for the first
quarter of fiscal 2009. Sales of $13.4 million in the first fiscal
quarter of 2010 represented a decrease of 4% compared to the $14.0
million in the same period in the prior year. Adjusted EBITDA, as
described under �Non-GAAP Financial Measures� in this press
release, for the first quarter of fiscal 2010 decreased 34% to $1.4
million from $2.1 million in the same prior year period. New orders
received during the 2010 fiscal first quarter were $15.6 million
compared to $23.0 million in the 2009 fiscal first quarter. The
Company�s book-to-bill ratio for the fiscal 2010 first quarter was
1.2 compared with 1.6 for last year�s fiscal first quarter.
Robert L. G. White, President and Chief Executive Officer of the
Company, said, �The decrease in sales in the first quarter of
fiscal 2010 compared to the same period last year was principally
due to delays in the receipt of customer orders that the Company
expected to process and ship in the quarter. The decrease in
operating income and Adjusted EBITDA for the first fiscal quarter
of 2010 was attributable to several factors, including a decrease
in overall sales volume, and lower gross profit in both new
production and overhaul and repair. We reported a gross margin in
the quarter of 39%, versus 43% for the same period last year. The
lower overall gross margin for the quarter was due to a lower
overall total sales volume along with an unfavorable mix of cargo
hook new production and hoist and winch overhaul and repair
shipments.�
Mr. White continued, �For the 2010 fiscal first quarter, our
general, administrative and selling expenses were essentially equal
to those in the prior year period. Our debt, net of cash on hand at
June 28, 2009, was $18.3 million, a decrease of $0.4 million from
the end of fiscal 2009. The decrease was muted somewhat by a build
up of inventory levels due to the order delays mentioned above.
Working capital decreased to $31.9 million in the first quarter of
fiscal 2010 from $32.3 million in the fiscal fourth quarter of
2009. The Company also experienced a decrease in interest expense
of $0.2 million in the 2010 fiscal first quarter versus the same
period last year, which was attributable to the placement of a new
senior credit facility during the second quarter of fiscal 2009 and
lower debt levels. The backlog of $133.3 million at the end of the
first fiscal quarter of 2010 reflects an increase of $2.3 million
from $131.0 million at the end of fiscal 2009 as we continue to
have a book-to-bill ratio in excess of 1.0.�
Outlook
Mr. White stated, �At the end of fiscal 2009 we saw, for the
first time, some indications that the global economic slowdown was
beginning to affect our markets as certain customers have requested
extensions of delivery dates for certain products and have also
asked for extended payment terms. Since then we have seen some
resetting of priorities that will affect shipments of certain of
our products. For example, the Future Combat Systems Program for
which we were developing new equipment was terminated. While we
expect that the termination of this program will have a relatively
minor impact on our fiscal 2010 operating results, this action by
the U.S. Government is contributing to a degree of
uncertainty.�
Mr. White concluded, �The cost reduction program initiated at
the end of fiscal 2009 was further enhanced by workforce reductions
during the fiscal 2010 first quarter. First quarter results
included a charge of $0.3 million related to these reductions, but
we anticipate over $1 million of cost savings by the end of fiscal
2010. These actions were taken to position the Company to address
any further indications of a slowdown while still maintaining a
staffing level necessary to handle the work load. We expect sales
levels in fiscal 2010 to be slightly higher than fiscal 2009 with
an attendant slight increase in Adjusted EBITDA. In recent fiscal
years, our revenues in the second half of the fiscal year have
generally exceeded revenues in the first half. We anticipate that
this trend will continue in fiscal 2010. As previously announced,
we expect to initiate a relocation to a more efficient facility in
Whippany, N.J. during the third quarter, and complete it in the
fourth quarter, of fiscal 2010 that is better suited to our current
and expected needs. While the relocation will require a cash outlay
of approximately $5 million to fit out the new facility, we expect
to continue our debt reduction program with a targeted principal
reduction in the area of $5 million to $6 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 $75.4 million in the fiscal
year ended March 31, 2009.
Non�GAAP Financial
Measures
In addition to disclosing financial results that are determined
in accordance with Generally Accepted Accounting Principles
(�GAAP�), the Company also discloses operating income (gross profit
less general, administrative and selling expenses) and Adjusted
EBITDA (earnings before interest, taxes, depreciation and
amortization, interest and other income/expense, gain on sale of
facility, loss on extinguishment of debt, and relocation expense).
These are presented as supplemental measures of performance. The
Company presents Adjusted EBITDA because it considers it an
important supplemental measure of performance. Measures similar to
Adjusted EBITDA are widely used by the Company and by others in the
Company's industry to evaluate performance and price potential
acquisition candidates. The Company believes Adjusted EBITDA
facilitates operating performance comparisons from period to period
and company to company by backing out potential differences caused
by variations in capital structure (affecting relative interest
expense), tax positions (such as the impact on periods or companies
of changes in effective tax rates or net operating losses) and the
age and book depreciation of facilities and equipment (affecting
relative depreciation expense). The Company also presents Adjusted
EBITDA because it believes it is frequently used by investors and
other interested parties as a basis for evaluating performance to
formulate investment decisions.
Adjusted EBITDA has limitations as an analytical tool, and
should not be considered in isolation or as a substitute for
analysis of the Company's results as reported under GAAP. Some of
the limitations of Adjusted EBITDA are that (i) it does not reflect
the Company's cash expenditures for capital assets, (ii) it does
not reflect the significant interest expense or cash requirements
necessary to service interest or principal payments on the
Company's debt, and (iii) it does not reflect changes in, or cash
requirements for, the Company's working capital. Furthermore, other
companies in the aerospace and defense industry may calculate these
measures differently than the manner presented above. Accordingly,
the Company focuses primarily on its GAAP results and uses Adjusted
EBITDA only supplementally.
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 or other
customers; 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, 2009.
The Company undertakes no obligation to update publicly any
forward-looking statements, whether as a result of new information
or future events.
BREEZE-EASTERN
CORPORATION
STATEMENTS OF CONSOLIDATED
OPERATIONS
(In Thousands of Dollars Except
Share Data)
� Three Months Ended 6/28/09 � 6/29/08 � Net sales
$
13,362
$
13,968
Cost of sales �
8,128 �
7,946 Gross
profit 5,234 6,022 �
General, administrative and
selling expenses
4,210 4,227 Relocation expense 138 - Interest expense 208 439 Other
expense-net �
61 �
37 Income before
income taxes 617 1,319 � Provision for income taxes �
259 �
554 � Net income
$
358 $ 765 � Basic earnings
per share: Net income
$ 0.04
$ 0.08 Diluted earnings per share: Net
income
$ 0.04 $
0.08 � Weighted average basic shares 9,365,000
9,340,000 Weighted average diluted shares 9,382,000 9,409,000
BALANCE SHEET
INFORMATION
� � 6/28/09 � 3/31/09 � Current assets $ 49,266 $ 49,905 Property �
net 4,981 3,859 Other assets �
22,316 �
22,941 Total assets
$ 76,563
$ 76,705 � Current portion of long-term
debt
and short term borrowings
$ 3,286 $ 3,286 Other current liabilities �
14,053 �
14,297 Total current liabilities 17,339 17,583
Long-term debt 17,250 18,071 Other non-current liabilities 8,113
7,724 Stockholders' equity �
33,861 �
33,327 � Total liabilities and stockholders' equity
$ 76,563 $
76,705
Reconciliation of Reported
Income to Adjusted EBITDA
� Three Months Ended 6/28/09 � 6/29/08 � Net sales $ 13,362 $
13,968 Cost of sales �
8,128 �
7,946
Gross Profit 5,234 6,022 � General, administrative and selling
expenses �
4,210 �
4,227 � Operating
income 1,024 1,795 � Add back: depreciation and amortization �
385 �
328 � Adjusted EBITDA
$ 1,409 $ 2,123
� Net income $ 358 $ 765 Provision for income taxes 259 554
Depreciation and amortization 385 328 Relocation expense 138 -
Interest expense 208 439 Other expense-net �
61 �
37 Adjusted EBITDA
$ 1,409
$ 2,123
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