Air Industries Group Reports Financial Results for the Three Months Ended March 31, 2021
May 11 2021 - 8:30AM
Business Wire
Books over $22 Million in New Business in
the First Quarter Alone
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 months ended March 31,
2021.
Highlights
For the three months ended March 31, 2021 compared to March
31, 2020
- Consolidated net sales for the three months ended March 2021
were $13.7 million an increase of $300,000 or 2.2% compared to
$13.4 million in 2020.
- Consolidated gross profit for the three months ended March 2021
was $1.8 million a decline of $400,000 or 18.1% from $2.2 million
in 2020. Gross profit as a percentage of sales for 2021 was 13.1%
compared to 15.7% in 2020.
- Operating expenses for the three months ended March 2021 were
$1.8 million a decline of $500,000 from $2.3 million, or 21.7% in
2020. Lower operating expenses in the quarter more than offset the
decline in gross profit.
- Operating income for the three months ended March 2021 was
$27,000 compared to an operating loss of $81,000 in 2020.
- Interest and financing costs for the three months ended March
2021 were $297,000 a decline of $83,000 or 21.8% compared to
$380,000 in 2020.
- Adjusted EBITDA for the three months ended March 2021 was
$1,234,000 as shown below.
For the Three Months Ended
March 31, 2021
Net Loss
$
(152,000
)
Add-backs to EBITDA Interest
297,000
Taxes
-
Depreciation & Amortization
867,000
EBITDA
1,012,000
Add-backs to Adjusted EBITDA Bank Charges
13,000
Stock Compensation
209,000
Adjusted EBITDA
$
1,234,000
CEO Commentary
Lou Melluzzo, CEO of Air Industries said, “We are very pleased
to report that new business quote activity has increased and during
the first quarter we booked over $22 million in new business. Our
book-to-bill ratio for the trailing twelve months ended March 31,
2021 was 1.19 to 1.00; very close to our goal of a 1.20 to 1.00
ratio. Our fully funded, 18-Month, firm backlog remains strong at $
84.7 million.
We are somewhat pleased with the increase, albeit modest, in
revenue for the first quarter. The increase was achieved despite
some significant COVID related production issues at the company
late last year. Attendance has returned to normal, and we firmly
believe those COVID tail issues are behind us. We are actively
seeking to hire more CNC machinists to support the increased hours
demand. Our experience echoes the difficulties other employers are
having in finding qualified help.
All of the recent machinery purchased is up and running. We are
seeing demand on the commercial side of our business increasing
faster than we expected. Our eye is on the big goal of building a
very successful, world class, aerospace company.
For the balance of the year, we look forward to continuing to
build on the momentum of the first quarter.”
Additional information about the Company can be found in its
filings with the SEC.
The Company will host a conference call for investors on Tuesday
May 11, 2021 at 5:00 PM Eastern.
Investor Conference
Call
Conference Toll-Free Number
800-207-0293
Passcode – 834 115
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/20210511005226/en/
Air Industries Group Investor Relations Michael Recca, CFO
631.328.7078 ir@airindustriesgroup.com
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