TIMCO Aviation Services, Inc. Announces 2004 Results
March 30 2005 - 9:35AM
PR Newswire (US)
TIMCO Aviation Services, Inc. Announces 2004 Results GREENSBORO,
N.C., March 30 /PRNewswire-FirstCall/ -- TIMCO Aviation Services,
Inc. (OTC:TMAS) (BULLETIN BOARD: TMAS) today announced its 2004
results of operations. Revenue for year ended December 31, 2004 was
$323.5 million, a 33% increase over the 2003 revenue of $242.5
million. Net income for 2004 was $0.9 million ($0.03 per basic and
diluted share), compared to a net loss of $0.3 million ($0.01 per
basic and diluted share) for 2003. Net loss from continuing
operations in 2004 was $0.7 million compared to $4.3 million in
2003. Net loss from continuing operations during 2004 benefited
from a gain on the settlement of a warrant obligation of $0.2
million. Net loss from continuing operations during 2003 benefited
from the elimination and reduction in accruals of $2.7 million
based on settlements and revised estimates, from the collection of
a $0.9 million account receivable that had previously been written
off as uncollectible and from tax benefits of $1.0 million
resulting from the conclusion of an IRS audit and receipt of
federal and state tax refunds. Without these benefits, the net loss
from continuing operations for 2004 and 2003 would have been $0.9
million and $8.9 million, respectively. Roy T. Rimmer, Jr., the
Company's Chairman and Chief Executive Officer, stated: "The
ongoing improvement in our operating results, at both the revenue
level and at the bottom line, demonstrates that we are on the right
course. This strengthening of our operations combined with the
enhancement of our capital structure as a result of our recently
completed tender offer, will enable TIMCO to be a better business
partner with our customers in meeting their aircraft maintenance
and modification needs." Gil West, the Company's President and
Chief Operating Officer, stated: "Our customers are continuing to
look to TIMCO for a larger portion of their MR&O requirements,
as evidenced by our 33% year-over-year increase in revenue. Our
focus on improving the quality, efficiency and scope of services
offered to our customers has been critical in securing this
increased business." TIMCO Aviation Services, Inc. is among the
world's largest providers of fully integrated aviation maintenance,
repair and overhaul (MR&O) services for major commercial
airlines, regional air carriers, aircraft leasing companies,
government and military units and air cargo carriers. The Company
currently operates four MR&O businesses: Triad International
Maintenance Corporation (known as TIMCO), which, with its four
active locations (Greensboro, NC; Macon, GA; Lake City, FL and
Goodyear, AZ), is one of the largest independent providers of heavy
aircraft maintenance services in the world and also provides
aircraft storage and line maintenance services; Brice Manufacturing
and Aircraft Interior Design, which specialize in the manufacture
and sale of new aircraft seats and aftermarket parts and in the
refurbishment of aircraft interior components; TIMCO Engineered
Systems, which provides engineering services both to our MR&O
operations and our customers; and TIMCO Engine Center, which
refurbishes JT8D engines and performs on-wing repairs for both JT8D
and CFM-56 series engines. Visit TIMCO online at
http://www.timco.aero/ . This press release contains
forward-looking statements. Forward-looking statements involve
known and unknown risks and uncertainties, which may cause the
Company's actual results in future periods to differ materially
from forecasted results. A number of factors, including those
identified in the Company's Annual Report on Form 10-K for the year
ended December 31, 2004, could adversely affect the Company's
ability to obtain these results. Copies of the Company's filings
with the U.S. Securities and Exchange Commission are available from
the SEC or may be obtained upon request from the Company. The
Company does not undertake any obligation to update the information
contained herein, which speaks only as of this date. TIMCO Aviation
Services, Inc. ($ thousands, except per share data) For the year
ended December 31, 2004 2003 Operating revenue $323,488 $242,514
Gross Profit (a) 29,289 16,183 Gross Profit Percentage (a) 9.1%
6.7% Operating expenses (b) 22,636 14,761 Operating expenses as a %
of revenue (b) 7.0% 6.1% Income from operations (c) 6,653 1,422
Loss from continuing operations (d) (667) (4,304) Income, net, from
discontinued operations (e) 1,580 4,043 Net income (loss) $913
$(261) Basic income (loss) per share $0.03 $(0.01) Diluted income
(loss) per share $0.03 $(0.01) The Company is providing the
following information to allow what the Company believes to be a
meaningful comparison of its period to period results. (a) 2003
gross profit benefited from the elimination of accruals aggregating
$463. Without this impact, gross profit for 2003 would have been
$15,720 (6.5% of revenues). (b) 2003 operating expenses benefited
from the elimination of accruals and recovery of an account
receivable that had previously been written off as uncollectible
aggregating $2,589. Without the impact of these items, operating
expenses for 2003 would have been $17,350 (7.2% of revenues). (c)
The income from operations for 2003 without the impact of the items
noted in (a) and (b) above would have been a loss of ($1,630). (d)
Loss from continuing operations for 2004 included a gain on the
settlement of a warrant obligation of $209. Income from continuing
operations in 2003 included a $570 gain from the settlement of
issues related to the sale of our Aerocell operations and an income
tax benefit of $986 resulting from the conclusion of an IRS audit
and the receipt of federal and state tax refunds. Without the
benefit of these items and of the items described in (a) and (b)
above, the net loss from continuing operations for 2004 and 2003
would have been $876 and $8,912, respectively. (e) Income, net,
from discontinued operations reflects the gain on sale of assets,
settlement of obligations and proceeds from collection of fully
reserved receivables from discontinued operations. The Company's
manufacturing, redistribution and new parts operations were sold in
fiscal 2000 and the process of collection on the assets from these
discontinued operations is winding down. As a result, income from
discontinued operations is not expected to be significant in future
periods. Income, net from discontinued operations included a
benefit of $825 during 2004 from the sale of our Miramar facility
and a benefit of $2,770 in 2003 from the elimination and settlement
of contingency exposures and reserves relating to discontinued
operations. DATASOURCE: TIMCO Aviation Services, Inc. CONTACT: Roy
T. Rimmer, Jr., Chairman & Chief Executive Officer, or Fritz
Baumgartner, Vice President Finance, Chief Accounting Officer of
TIMCO Aviation Services, Inc., +1-336-668-4410 Web site:
http://www.timco.aero/
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