TULSA, Okla., March 8 /PRNewswire-FirstCall/ -- Limco-Piedmont Inc.
(NASDAQ:LIMC) today announced that revenues for the three months
ended December 31, 2008 were $17.9 million, an increase of $3.0
million from $14.9 million for that same period last year. This
increase is reflective of our continued growth in our MRO business
segment. Revenues for the twelve months ended December 31, 2008
were $71.6 million, an increase of $1.8 million from $69.8 million
for the same period last year. This increase in sales revenues is a
result of the growth in our MRO revenues during the twelve months
ended December 31, 2008. Revenues from our two segments for the
three and twelve-month periods ended December 31, 2008 and 2007
were as follows: Three Months Ended Twelve Months Ended December
31, December 31, 2008 2007 2008 2007 % of % of % of % of Total
Total Total Total Reve- Reve- Reve- Reve- Reve- Reve- Reve- Reve-
nues nues nues nues nues nues nues nues (Revenues in thousands)
Revenues: MRO Services $14,012 78.1% $11,515 77.4% $54,276 75.8%
$49,392 70.8% Parts services 3,929 21.9% 3,362 22.6% 17,289 24.2%
20,384 29.2% Total revenues $17,941 100.0% $14,877 100.0% $71,565
100.0% $69,776 100.0% Our operating income decreased by $373,000 to
$465,000 for the three months ended December 31, 2008 from $838,000
for the three months ended December 31, 2007. Our operating income
decreased by $4.1 million, to $3.8 million for the twelve months
ended December 31, 2008 from $7.9 million for the twelve months
ended December 31, 2007. General and administrative expenses
increased by $79,000 to $1.7 million for the three months ended
December 31, 2008 from $1.6 million for the three months ended
December 31, 2007. The increase in general and administrative
expenses is primarily attributable to audit expenses and some
merger and acquisition expenses. Non-cash compensation expense was
($27,000) and included in general and administrative expenses
during the fourth quarter of 2008 compared to $220,000 in the
fourth quarter of 2007. General and administrative expenses
increased by $137,000 to $7.1 million for the year ended December
31, 2008 from $7.0 million for the year ended December 31, 2007.
The increase in general and administrative expenses is primarily
attributable to approximately $837,000 in one-time SOX and public
company costs, $110,000 in severance pay, $60,000 in tax audit
expenses, and acquisition expenses of $357,000. These expenses were
offset by the lack of phantom stock expense of $325,000, IPO bonus
expense of $400,000 and increased public company costs and
administrative costs during the year ended December 31, 2007.
Non-cash compensation expense was $175,000 and included in general
and administrative expenses during the year ended December 31, of
2008 compared to $390,000 in the during the year ended December 31,
2007. Net income for the three month period ended December 31, 2008
was $148,000, or $0.01 per basic and diluted share compared with
$789,000 or $0.06 per basic and diluted share in the period ended
December 31, 2007. Net income for the twelve month period ended
December 31, 2008 was $2.7 million, or $0.21 per basic and diluted
share compared with $5.2 million or $0.48 per basic or $0.47 per
diluted share in the period ended December 31, 2007. We ended the
quarter with $21.3 million in cash and cash equivalents and $11.3
million in short-term investments. Bob Koch and Udi Netivi our
Co-Chief Executive Officers, commented: "Despite weakness in the
airline segment and the general economy, the fourth quarter of 2008
saw continued revenue growth in our core MRO businesses and parts
business versus the fourth quarter of last year. The revenue mix at
our LIMCO Airepair subsidiary drove higher production costs and
depressed gross margins. We expect these mix issues to correct
favorably in 2009. Additionally, the expense reduction measures we
took in the fourth quarter are taking effect." At Piedmont, our
propeller and landing gear products are growing and offsetting
revenue pressure we are seeing in the APU and parts segments.
However, we received two new APU contracts with European Airlines,
each for a period of five years. At LIMCO, sales for the fourth
quarter were up from the fourth quarter of 2007 but slightly off of
the third quarter of 2008. Solid OEM and Military bookings for 2009
and beyond continued in the fourth quarter and airline receipts
stabilized. The lean production and cost control measures we have
implemented are taking effect and will drive improved 2009
performance. The consolidation in North Carolina will also drive
continued performance improvements of the LIMCO products lines. Dr.
Shmuel Fledel, our Chairman of the Board, concluded by saying,
"Despite challenging economic conditions, we expect revenue growth
in 2009. The expense control measures we have taken and
consolidation of the two operating entities in one location will
contribute to improved earnings going forward. We are looking
positively towards 2009." About Limco - Piedmont Inc.
Limco-Piedmont Inc. provides maintenance, repair and overhaul, or
MRO, services and parts supply services to the aerospace industry.
Limco-Piedmont's four Federal Aviation Administration certified
repair stations provide aircraft component MRO services for
airlines, air cargo carriers, maintenance service centers and the
military. Limco-Piedmont specializes in MRO services for components
of aircraft, such as heat transfer components, auxiliary power
units, propellers, landing gear and pneumatic ducting. In
conjunction with Limco-Piedmont's MRO services, Limco-Piedmont is
also an original equipment manufacturer of heat transfer equipment
for airplane manufacturers and other related products.
Limco-Piedmont's parts services division offers inventory
management and parts services for commercial, regional and charter
airlines and business aircraft owners Safe Harbor for
Forward-Looking Statements This press release contains
forward-looking statements that are subject to risks and
uncertainties. Factors that could cause actual results to differ
materially from these forward-looking statements include, but are
not limited to, general business conditions in the airline
industry, changes in demand for our services and products, the
timing and amount or cancellation of orders, the price and
continuity of supply of component parts used in our operations, and
other risks detailed from time to time in Limco-Piedmont's filings
with the Securities Exchange Commission, including its Annual
Report on Form 10-K. These documents contain and identify other
important factors that could cause actual results to differ
materially from those contained in our projections or
forward-looking statements. Stockholders and other readers are
cautioned not to place undue reliance on these forward-looking
statements, which speak only as of the date on which they are made.
We undertake no obligation to update publicly or revise any
forward-looking statement. - Tables Follow - LIMCO-PIEDMONT INC.
AND SUBSIDIARIES UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except per share data) December 31, December 31,
2008 2007 ASSETS Current Assets: Cash and cash equivalents $21,336
$5,039 Marketable Securities 11,300 28,806 Accounts receivable (net
of allowance for doubtful accounts of $79 and $140 at December 31,
2008 and, respectively) 11,820 9,328 Inventories 18,978 16,391
Other accounts receivable and prepaid expenses 1,326 1,481 Total
current assets 64,760 61,045 Property, plant and equipment, net
6,023 5,169 Intangible assets, net 1,383 1,709 Goodwill 4,780 4,780
Total assets $76,946 $72,703 LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities: Accounts payables $5,378 $5,084 Parent company
payables 2,341 1,762 Other accounts payable and accrued expenses
1,764 1,568 Total current liabilities 9,483 8,414 Long-Term
Liabilities: Deferred income tax liabilities 835 404 Total
liabilities 10,318 8,818 Commitments and contingencies
Shareholders' Equity: Common stock, $0.01 par value; 25,000 shares
authorized, 13,205 shares issued and outstanding at both December
31, 2008 and 2007 132 132 Additional paid-in capital 49,179 49,004
Retained earnings 17,462 14,749 Accumulated other comprehensive
loss (145) --- Total shareholders' equity 66,628 63,885 Total
liabilities and shareholders' equity $76,946 $72,703 LIMCO-PIEDMONT
INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share data) Three months ended Twelve
months ended December 31, December 31, 2008 2007 2008 2007 Revenue
MRO services $14,012 $11,515 $54,276 $49,392 Parts services 3,929
3,362 17,289 20,384 Total revenue 17,941 14,877 71,565 69,776 Cost
and operating expenses MRO services 11,787 8,986 43,664 35,205
Parts services 3,352 2,706 13,922 16,603 Selling and marketing 614
638 2,755 2,613 General and administrative 1,669 1,590 7,118 6,981
Amortization of intangibles 54 119 326 474 Operating income 465 838
3,780 7,900 Other income (expense) Interest income 342 355 1,259
897 Interest and other expense (326) (13) (403) (732) Total other
income (expense) 16 342 856 165 Income before taxes 481 1,180 4,636
8,065 Provision for income taxes 333 391 1,923 2,871 Net income
$148 $789 $2,713 $5,194 Basic net income per share $0.01 $0.06
$0.21 $0.48 Diluted net income per share $0.01 $0.06 $0.21 $0.47
Basic shares outstanding 13,205 12,406 13,205 10,934 Diluted shares
outstanding 13,205 12,437 13,205 10,962 DATASOURCE: Limco-Piedmont
Inc. CONTACT: Bob Koch, Co-Chief Executive Officer of
Limco-Piedmont Inc., +1-918-445-4300 Web Site:
http://www.limcoairepair.com/
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