Air Industries Group Announces Financial Results for the Three & Twelve Months Ended December 31, 2020. Sales Return to Pre-P...
March 08 2021 - 4:15PM
Business Wire
Air Industries Group (NYSE AMEX:
AIRI):
Air Industries Group (“Air Industries” or the “Company”), an
integrated manufacturer of precision equipment assemblies and
components for leading aerospace and defense prime contractors,
today announced its results for the three and twelve months ended
December 31, 2020.
Three Months ended December 31, 2020 compared to December 31,
2019
- Consolidated net sales for the three months ended December 2020
was $14.5 million increasing $1.2 million or 9.0% from $13.3
million in 2019.
- Consolidated gross profit for the three months ended December
2020 was $2.1 million increasing $400,000 or 23.5% from $1.7
million in 2019. Gross profit as a percentage of sales was 14.4% in
2020 compared to 12.8 % in 2019.
- Operating expenses for the three months ended December 2020
were $2.1 million a decline of $600,000 or 22.2% from $2.7 million
in 2019.
- Operating income for the three months 2020 was $200,000
compared to an operating loss of $1.0 million in 2019.
- Interest and financing costs for the three months December 2020
were $300,000 a significant decline of $500,000 or 62.5% compared
to $800,000 in 2019.
- Net Income from continuing operations for the three months
ended December 2020 was $2.1 million compared to a net loss from
continuing operations of $1.3 million in 2019. Net income for the
three months 2020 included $2.4 million from forgiveness of the
Payroll Protection Program loans.
- Adjusted EBITDA, including stock compensation expense, for the
three months ended December 2020 was approximately $3.4 million
compared to $333,000 in 2019. Adjusted EBITDA for 2020 included
approximately $2.4 million from forgiveness of the Payroll
Protection Program loans.
For the year ended December 31, 2020 compared to December 31,
2019
- Consolidated net sales for year ended December 2020 were $50.1
million compared to $54.6 million in 2019.
- Consolidated gross profit for year ended December 2020 was $6.5
million compared to $9.1 million in 2019. Gross profit as a
percentage of sales was 13.0% in 2020 compared to 16.7 % in
2019.
- Operating expenses for year ended December 2020 were $8.0
million or a decline of $500,000 as compared to $8.5 million of
operating expenses in 2019.
- Operating loss for year ended December 2020 was $1.4 million as
compared to an operating income of $300,000 in 2019.
- Interest and financing costs for year ended December 2020 were
$1.5 million a significant decline of $2.1 million or 58% as
compared to $3.6 million in 2019.
- Net Income from continuing operations for the year ended
December 2020 was $1.3 million compared to a net loss from
continuing operations of $2.6 million in 2019. Net income for 2020
included approximately:
- $2.4 million in income from forgiveness of the Payroll
Protection Program loans and;
- Income tax benefit of $1.4 million resulting from a tax refund
from tax law changes enacted in the CARES Act.
- Adjusted EBITDA, including stock compensation expense, for 2020
was approximately $4.4 million compared to $5.2 million in
2019.
Adjusted EBITDA
Three Months December
2020
Twelve Months December
2020
Net Income
$
2,099,000
$
1,096,000
Add-backs to EBITDA Interest
324,000
1,491,000
Taxes
-
(1,414,000
)
Depreciation & Amortization
686,000
2,696,000
EBITDA
3,109,000
3,869,000
Add-backs to Adjusted EBITDA Stock Compensation
250,000
516,000
Adjusted EBITDA
$
3,359,000
$
4,385,000
CEO Commentary
Lou Melluzzo, CEO of Air Industries said, “We are very pleased
with our results for the fourth quarter of 2020. Revenue, gross
profit and operating income were significantly higher in the fourth
quarter than any other quarter of 2020. The negative effects of the
Covid-19 pandemic which impaired operations earlier in the year
appear to have largely passed. Operations in the last three months
of the year were nearly back to normal and we are on our way to
resuming normal operations.”
Mr. Melluzzo further commented on the company’s business outlook
stating, “Air Industries remains confident about 2021. We expect
that our operations will continue to improve and our sales to
increase. Despite the turmoil in the Aerospace industry our backlog
remains strong. Fully 75% of our firm 18-month backlog comes from
just four aircraft platforms vitally important to the nation’s
defense. Most of these aircraft are in current production with
increasing production rates. These include the F-35 Joint Strike
Fighter, the E2-D, and the UH-60 Black Hawk and CH-53 K heavy lift
helicopter. Our sales of a commercial aerospace product used in the
new Geared Turbo-Fan engine used on smaller airliners increased in
2020 and we are optimistic that this trend will continue in 2021.
In light of the dramatic declines in the commercial aerospace
market, it is perhaps unique that our commercial aerospace backlog
in 2020 increased three-fold to $3.6 million from $1.1 million in
2019. Now that economies around the world are starting to re-open
again, we believe that Air Industries is firmly positioned to
achieve growth in 2021.”
Additional information about the Company can be found in its
filings with the SEC.
Investor Conference Call
Management will host a conference call on
Tuesday, March 9, 2021 at 8:30AM Eastern
Conference Toll-Free Number –
800.309.1256
Passcode – 677 842
ABOUT AIR INDUSTRIES GROUP
Air Industries Group (AIRI) is an integrated manufacturer of
precision equipment assemblies and components for leading aerospace
and defense prime contractors.
Forward Looking Statements
Certain matters discussed in this press release are
'forward-looking statements' intended to qualify for the safe
harbor from liability established by the Private Securities
Litigation Reform Act of 1995. In particular, the Company's
statements regarding trends in the marketplace, future revenues,
earnings and Adjusted EBITDA, the ability to realize firm backlog
and projected backlog, cost cutting measures, potential future
results and acquisitions, are examples of such forward-looking
statements. The forward-looking statements are subject to numerous
risks and uncertainties, including, but not limited to, the timing
of projects due to variability in size, scope and duration, the
inherent discrepancy in actual results from estimates, projections
and forecasts made by management, regulatory delays, changes in
government funding and budgets, and other factors, including
general economic conditions, not within the Company's control. The
factors discussed herein and expressed from time to time in the
Company's filings with the Securities and Exchange Commission could
cause actual results and developments to be materially different
from those expressed in or implied by such statements. The
forward-looking statements are made only as of the date of this
press release and the Company undertakes no obligation to publicly
update such forward-looking statements to reflect subsequent events
or circumstances.
Adjusted EBITDA
The Company uses Adjusted EBITDA, a Non-GAAP financial measure
as defined by the SEC, as a supplemental profitability measure
because management finds it useful to understand and evaluate
results, excluding the impact of non-cash depreciation and
amortization charges, stock based compensation expenses, and
nonrecurring expenses and outlays, prior to consideration of the
impact of other potential sources and uses of cash, such as working
capital items. This calculation may differ in method of calculation
from similarly titled measures used by other companies and may be
different than the EBITDA calculation used by our lenders for
purposes of determining compliance with our financial covenants.
This Non-GAAP measure may have limitations when understanding
performance as it excludes the financial impact of transactions
such as interest expense necessary to conduct the Company’s
business and therefore are not intended to be an alternative to
financial measure prepared in accordance with GAAP. The Company has
not quantitatively reconciled its forward looking Adjusted EBITDA
target to the most directly comparable GAAP measure because such
items such as amortization of stock-based compensation and interest
expense, which are specific items that impact these measures, have
not yet occurred, are out of the Company’s control, or cannot be
predicted. For example, quantification of stock-based compensation
is not possible as it requires inputs such as future grants and
stock prices which are not currently ascertainable.
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version on businesswire.com: https://www.businesswire.com/news/home/20210308005862/en/
Air Industries Group Michael Recca Investor Relations
631.328.7078 ir@airindustriesgroup.com
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