Air Industries Group Reports 82.4% Second Quarter Revenue Growth
August 04 2021 - 8:30AM
Business Wire
Significantly Improved Financial Results for
Both the Three and Six Months Ended June 30, 2021
Air Industries Group (NYSE AMEX:
AIRI):
Air Industries Group, an integrated manufacturer of precision
equipment assemblies and components for leading aerospace and
defense prime contractors today announced results for the three and
six-month periods ended June 30, 2021.
Q2 Highlights
- Receipt of $7.4 million order for ‘Thrust Struts’, a critical
component of the Geared Turbofan (GTF) Jet Engine.
- Our current fully funded backlog is $91.5 million.
- Consolidated net sales increased by $7.0 million, or 82.4%, to
$15.5 million compared with $8.5 million in Q2 2020.
- Consolidated gross profit increased $2.0 million, or 333.3%, to
$2.6 million compared with $600,000 in Q2 2020.
- Gross profit as a percentage of sales was 16.8% compared with
7.1% in 2020.
- Operating income increased by $1.7 million to $400,000 compared
with an operating loss of $1.3 million in 2020.
- Adjusted EBITDA increased $1.5 million to $1.4 million compared
with an EBITDA loss of $100,000 in 2020.
Six-Month Highlights
- Consolidated net sales increased by $7.3 million, or 33.3%, to
$29.2 million compared with $21.9 million in 2020.
- Consolidated gross profit increased $1.6 million, or 57.1%, to
$4.4 million compared with $2.8 million in 2020.
- Gross profit as a percentage of sales was 15.1% compared with
12.8% in 2020.
- Operating income increased by $1.9 million to $500,000 compared
with an operating loss of $1.4 million in 2020.
- Adjusted EBITDA increased nearly $1.8 million, or nearly 225%,
to $2.6 million compared with an EBITDA of $800,000 in 2020.
Reconciliation of Net Income to
Adjusted EBITDA
For the Six
Months Ended June 30, 2021 Net Income
$
87,000
Add-backs to EBITDA Interest
629,000
Taxes
-
Depreciation & Amortization
1,495,000
EBITDA
2,211,000
Add-backs to Adjusted EBITDA
Bank Charges
26,000
Stock Compensation
318,000
Adjusted EBITDA
$
2,555,000
CEO Commentary
Lou Melluzzo, CEO of Air Industries said, “The strong second
quarter sales results delivered by our team was led by significant
improvement at our Sterling manufacturing facility. The meaningful
quarterly increases in gross profit and EBITDA were also driven by
a more diverse product mix at CMS.
Also, during the quarter, as part of a long-term agreement for
our largest commercial aviation product, we received a $7.4 million
order for a critical component of the Geared Turbofan (GTF). Our
current fully funded backlog is $91.5 million. In a manufacturing
business such as ours, gross profit, operating profit, and EBITDA
are highly correlated with revenue. The improvement in all these
metrics illustrate the improved earnings leverage of the
company.
Adding additional strength to our balance sheet, we are very
pleased that we were able to reduce inventory by $2.0 million
during the quarter – which grew as a result of Covid-19-related
supply chain challenges. The improved financial results allow us to
continue our robust capital investment program upgrading and
enhancing our capabilities.”
Melluzzo concluded, “We are adding to the strong momentum and
backlog of orders of the first six months with the previously
announced three-year agreement in July to purchase $12 – $18
million of landing gear components for the F-35 Joint Strike
Fighter Aircraft. We look forward to a strong second half of the
year and anticipate that the improvements and enhancements we’ve
initiated will continue to generate strong results.”
Investor Conference
Call
The Company will host a conference call for
investors on August 4, 2021 at 4:30 PM Eastern. Conference
Toll-Free Number: 1-888-207-0293 Passcode – 392 813
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. For
more information visit www.airindustriesgroup.com.
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/20210804005185/en/
Air Industries Group Michael Recca - CFO Investor Relations
631.328.7078 ir@airindustriesgroup.com
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