Breeze-Eastern Corporation (NYSE Amex: BZC) today reported
its Fiscal 2011 first quarter financial results as follows.
- Net sales: $16.5 million, up 24%
over $13.4 million for the Fiscal 2010 First Quarter.
- Operating income: $1.3 million,
up 42% compared with $0.9 million for the Fiscal 2010 First
Quarter.
- Net income: $0.6 million, or
$0.06 per diluted share, up 65% over $0.4 million, or $0.04 per
diluted share, in the Fiscal 2010 First Quarter.
- Adjusted EBITDA, as described
under “Non-GAAP Financial Measures” in this press release: $2.0
million, versus $1.4 million in the Fiscal 2010 First Quarter.
- Net Inventory: $16.9 million,
vs. $24.3 million at the end of the Fiscal 2010 First Quarter and
$17.4 million at the end of March, 2010.
- Long-term debt (total): $17.3
million, $0.8 million lower than three months ago, and $3.3 million
lower than a year ago.
- Bookings: $19.7 million, up $4.1
million (26%) vs. $15.6 million in Fiscal 2010 First Quarter.
Book-to-bill ratio for the Fiscal 2011 First Quarter: 1.2
- Backlog: $133.3 million, about
even with the backlog as of June 28, 2009.
Mike Harlan, President and Chief Executive Officer, said, "We
are glad to have started our Fiscal 2011 with a strong First
Quarter, with increased bookings, sales, and income and lower
inventory and debt vs. the same quarter a year ago. I am
particularly pleased that we have done this while also successfully
finishing our relocation to Whippany, New Jersey; our customer
audits have all been satisfactory and our plant startup is
completed and we are back to full operations."
Outlook
Mr. Harlan continued, “While we have continued to see pending
orders deferred due to our customers' funding challenges, we have
been glad to receive other orders which we have been working on for
a year or more. For example, we have received orders totaling over
$6 million from the U.S. Coast Guard since the end of March; we are
proud to play an important role in helping them provide essential
search and rescue services We expect our Second Quarter to be
stronger than the Fiscal 2010 Second Quarter and stronger than our
Fiscal 2011 First Quarter.”
The Company will conduct a conference call at 11:00 AM EDT on
Monday, August 9, 2010 with the following numbers: (866) 383-7989
or (617) 597-5328 and pass code 84206251
Breeze-Eastern Corporation (http://www.breeze-eastern.com) is
the world’s leading designer and manufacturer of high performance
lifting and pulling devices for military and civilian aircraft,
including rescue hoists, winches and cargo hooks, and
weapons-lifting systems. The Company, which employs approximately
170 people at its facilities in Whippany, New Jersey, reported
sales of $69.0 million for the Fiscal year ended March 31,
2010.
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 Adjusted EBITDA (earnings
before interest, taxes, depreciation and amortization, other
income/expense, loss on debt extinguishment, and relocation
expense). 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
valuation. 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.
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. A reconciliation of Adjusted EBITDA to
net income, the most directly comparable GAAP measure, for the
three months ended June 30, 2010 is shown in the tables below.
INFORMATION ABOUT FORWARD-LOOKING
STATEMENTS
This news release contains forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933 as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended, regarding our future operating performance, financial
results, events, trends and plans. All statements in this news
release other than statements of historical facts are
forward-looking statements. Forward-looking statements involve
numerous risks and uncertainties. We have attempted to identify any
forward-looking statements by using words such as “anticipates,”
“believes,” “could,” “expects,” “intends,” “may,” “should” and
other similar expressions. Although we believe that the
expectations reflected in all of our forward-looking statements are
reasonable, we can give no assurance that such expectations will
prove to be correct. Such statements are not guarantees of future
performance or events and are subject to known and unknown risks
and uncertainties that could cause our actual results, events or
financial positions to differ materially from those included within
the forward-looking statements. Such factors include, but are not
limited to 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 us 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 disclosed in our Annual
Report on Form 10-K for the fiscal year ended March 31, 2010, and
other filings with the Securities and Exchange Commission. We
undertake 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
6/30/10
6/28/09
Net sales $ 16,540 $ 13,362 Cost of sales 10,407
8,128 Gross profit 6,133 5,234 Selling,
general, and administrative expenses 4,629 4,184 Relocation expense
211 138 Operating income 1,293 912
Interest expense 214 234 Other expense-net 64
61 Income before income taxes 1,015 617 Provision for income
taxes 426 259 Net income $ 589 $ 358
Basic earnings per share: $ 0.06 $ 0.04 Diluted earnings per share:
$ 0.06 $ 0.04 Weighted average basic shares 9,397,000
9,365,000 Weighted average diluted shares 9,412,000 9,382,000
BALANCE SHEET
INFORMATION
(In Thousands of Dollars Except
Share Data)
6/30/10
3/31/10
Current assets $ 41,191 $ 39,851 Fixed assets – net 9,277
9,575 Other assets 26,058 26,682 Total assets
$ 76,526 $ 76,108
Current portion of long-term
debt
and short term
borrowings
$ 3,286 $ 3,286 Other current liabilities 12,134
11,377 Total current liabilities 15,420 14,663 Long-term
debt 13,964 14,786 Other non-current liabilities 18,583 18,839
Stockholders' equity 28,559 27,820 Total
liabilities and stockholders' equity $ 76,526 $ 76,108
Reconciliation of Reported
Income to Adjusted EBITDA
(In Thousands of Dollars Except
Share Data)
Three Months Ended
6/30/10
6/28/09
Net sales $ 16,540 $ 13,362 Cost of sales 10,407
8,128 Gross profit 6,133 5,234 Selling,
general and administrative expenses 4,629 4,184 Relocation expense
211 138 Operating income 1,293 912 Add
back: Depreciation and amortization 470 359 Relocation expense
211 138 Adjusted EBITDA $ 1,974 $ 1,409
Net income $ 589 $ 358 Provision for income taxes 426 259
Depreciation and amortization 470 359 Relocation expense 211 138
Interest expense 214 234 Other expense-net 64
61 Adjusted EBITDA $ 1,974 $ 1,409
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