TIMCO Aviation Services, Inc. Announces 2003 Results
April 16 2004 - 4:37PM
PR Newswire (US)
TIMCO Aviation Services, Inc. Announces 2003 Results GREENSBORO,
N.C., April 16 /PRNewswire-FirstCall/ -- TIMCO Aviation Services,
Inc. (BULLETIN BOARD: TMAS) today announced its results of
operations for the 2003 fiscal year. Revenue for the year was $243
million, a 33% increase over 2002 revenue of $182 million. The net
loss for 2003 was $0.3 million ($0.01 per basic and diluted share),
compared to net income of $7.0 million ($0.27 per basic share and
$0.03 per diluted share) for 2002. The net loss for 2003 included a
benefit of $3.7 million from the settlement of obligations and
changes in estimates of exposures related to discontinued
operations and various legacy items and a $0.8 million income tax
benefit resulting from the IRS finalizing audits on the 1996 - 1999
tax years. Net income for 2002 included: (i) a $27.3 million gain
resulting from forgiveness of debt as a result of the Company's
February 2002 debt and equity restructuring, (ii) a net $4.4
million non-cash charge relating to the Company's agreement to
settle a then-outstanding class action lawsuit and (iii) a $3.8
million tax benefit arising from a change in U.S. federal tax laws
governing the carryback of net operating losses. Without the
effects of these items, the Company would have reported a 2003 net
loss of $4.8 million, compared to a net loss of $19.7 million for
2002. Management believes that comparison of its 2003 net loss to
the 2002 net loss without the effect of the above-described items
provides a useful measure for investors to compare the Company's
period-to-period results of operations. The Company also announced
that its auditor's report on the Company's 2003 financial
statements does not contain a going concern modification. The
Company's auditors had placed such a modification on their report
regarding the Company's financial statements during the last four
years. Roy T. Rimmer, Jr., the Company's Chairman and Chief
Executive Officer, stated: "2003 was a year of tremendous progress
for our Company. Our customer base has been substantially broadened
during the year and our revenue from operations is finally
returning to pre-September 11, 2001 levels. We have recently
completed a refinancing of our senior credit facilities through the
end of 2007, which provides us with increased working capital. We
also recently sold our Miramar facility, resolving a significant
legacy issue and allowing us to repay in full our tax retention
operating lease financing. We believe that, with these changes, we
are poised to benefit from the trend toward outsourced
maintenance." Gil West, the Company's President and Chief Operating
Officer, stated: "During 2003, we added an airframe heavy
maintenance repair station and aircraft storage facility in
Goodyear, Arizona; we significantly increased our engine
maintenance capabilities; and we continued to build on the momentum
with growth in our engineering services and new seat manufacturing
businesses. Our ability to consistently provide our customers with
a high-quality and low- cost outsourced maintenance solution
continues to gain the attention of a growing customer base in the
airline and air-cargo industries." C. Robert Campbell, the
Company's Chief Financial Officer, stated: "We are very pleased to
receive a clean opinion from our auditors. This is a major
milestone in our turnaround process and acknowledges the financial
and operational progress that our Company has made." 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: 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; Aircraft Interior Design and Brice
Manufacturing, which specialize in the refurbishment of aircraft
interior components and the manufacture and sale of aftermarket
parts and new aircraft seats; TIMCO Engineered Systems, which
provides engineering services both to our other MR&O operations
and to our customers; and TIMCO Engine Center, which refurbishes
JT8D engines and performs on-wing repairs for both JT8D and CFM-56
series engine. Visit TIMCO online at http://www.timco.aero/ . This
press release contains certain 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, 2003 and
those identified below, could adversely affect the Company's
ability to obtain these results: the Company's ability to continue
to generate sufficient working capital from operations to meet its
operating requirements and service its indebtedness, the Company
maintaining good working relationships with its vendors and
customers, competitive pricing for the Company's products and
services, the Company's ability to achieve gross margins at which
it can be profitable, including margins on services the Company
performs on a fixed price basis, competition in the aircraft
maintenance, repair and overhaul market and the impact on that
market and the Company of the terrorist attacks on September 11,
2001, the state of the domestic passenger airline industry and the
financial condition of the Company's airline customers, the
Company's ability to attract and retain qualified personnel in its
business, utilization rates for its MR&O facilities, the
Company's ability to integrate future acquisitions, the Company's
ability to effectively manage its business, economic factors which
affect the airline industry, generally including the amount of
aircraft maintenance outsourced by various airlines, and changes in
government regulations. Certain of these risks are described in the
Company's filings with the Securities and Exchange Commission
(SEC). Copies of the Company's SEC filings 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. DATASOURCE:
TIMCO Aviation Services, Inc. CONTACT: Roy T. Rimmer, Jr., Chairman
& Chief Executive Officer, or C. Robert Campbell, Executive
Vice President & Chief Financial Officer, of TIMCO Aviation
Services, Inc., +1-336-668-4410 Web site: http://www.timco.aero/
Copyright