BAY SHORE, NY–(BUSINESS THREAD)–Air Industries Group (NYSE American: AIRI), a Tier 1 integrated manufacturer of precision assemblies and components for mission-critical defense and aerospace applications, and a prime contractor for the US Department of Defense, today announced the its financial results for the three and six months ended June 30, 2022.
Comparisons for the second quarter of 2022
Consolidated net sales for the three months ended June 30, 2022 were $14.0 million, a decrease of $1.4 million or (9%) from $15.5 million in the 2021 period . Net sales in the second quarter increased $1.9 million or 16% from $12.1 million in the first quarter ended March 31, 2022. Consolidated gross profit for the three months ended June 30 2022 was $2.4 million, a decrease of $180,000 from $2.6 million in the 2021 period. Second quarter 2022 consolidated gross profit increased $346,000 or 17% from 2 .1 million in the first quarter of 2022. Gross profit margin was 17.3% for the quarter ended June 30, 2022; 16.8% for the quarter ending June 30, 2021; and 17.2% for the quarter ended March 31, 2022. Operating expenses for the three months ended June 30, 2022 were $2.2 million, virtually unchanged from $2.2 million in the 2021 period. Operating expenses for the second quarter of 2022 increased by $300,000 or 16% from $1.9 million in the first quarter of 2022. Operating income for the three months ended 30 of June 2022 was $250,000, a decrease of $192,000 from the period of $442,000. Operating income for the second quarter of 2022 increased by $43,000 or 20% from $207,000 in the first quarter of 2022. Interest and financing costs for the three months ended June 30, 2022 were $289,000 a decrease of $44,000 compared to $20003 for the period. . Interest and financing costs for the second quarter of 2022 decreased by $34,000 compared to $323,000 for the first quarter of 2022. Net loss for the three months ended June 30, 2022 was $7,000 compared to with net income of $239,000 for the period 2021. The net loss for the first quarter ended March 31, 2022 was $28,000.
Comparisons six months 2022
Consolidated net sales for the six months ended June 30, 2022 were $26.1 million, a decrease of $3.1 million or (11%) from $29.2 million for the six-month period of 2021. Consolidated gross profit for the six months ended June 30, 2022 was $4.5 million, up slightly from $4.4 million in the 2021 period. Gross profit margin was 17.3% for the six months ended June 30, 2022, compared to 15.1% reported for the same period in 2021. Operating expenses for the six months ended June 30, 2022 were $4.0 million, up $111,000 from $3.9 million in 2021. Operating income for the six months ended June 30, 2022 was $457,000, down slightly from the $467,000 reported for the period of 2021. Interest and financing costs for the six months ended on June 30, 2022 were $612,000, a decrease of $18,000 compared to $630,000 in the 2021 period. Net loss for the six months ended June 30, 2022 was $35,000, compared to net income of $87,000 for the 2021 period.
Reconciliation of Net (Loss) with Adjusted EBITDA
Comment from the CEO
Lou Melluzzo, CEO of Air Industries, said: “The company continued to make progress during the second quarter of 2022, a challenging period during which, like most manufacturing companies, we faced significant disruptions in supply chain that affected the availability of raw materials However, comparing our performance in the second quarter of 2022 to the first quarter of this year, which reflected a similar operating environment, net sales increased by 16%, the Consolidated gross profit increased by almost 17% and operating income increased by almost 20%.
“Raw material delays and external processing delays unfortunately prevented the production of some customer orders, which largely contributed to the decline in sales compared to the quarter and six months of the previous year. That said, recent periods demonstrate the benefits of Air Industries’ diverse mix of aircraft product platforms and stable customers. While sales were down overall in the first half of 2022 compared to 2021, we saw solid increases in some platforms, such as the Northrup Grumman E2-D and the Pratt & Whitney Geared Turbo Fan. We also saw an increase in the volume of Sikorsky CH-53 helicopter assemblies.
“We are working diligently to address today’s challenging environment. In particular, we are continuing our vertical integration strategy, which is designed to improve efficiency and shorten production times. Our in-house paint facility is up and running and in the process of being qualified, and we are establishing a feature in our Sterling operation that should ease the assembly process for a major customer order.
“The long-term outlook for our market is strong. We attended the recent Farnborough Airshow, one of the key events for the aerospace industry, where the tone was generally optimistic. For example, demand remains substantial for the Lockheed Martin F -35 Joint Strike Fighter, which is the world’s best fifth-generation fighter jet, and the record-breaking fighter jet program for allied militaries around the world.
“We continue to position Air Industries to improve the performance of our growing industry through investments in vertically integrated processes and capital equipment to become an even more valuable partner to our aerospace and defense customers, while pursuing business development and sales efforts.”
Additional information about the company can be found in its filings with the SEC and by visiting the website at www.airindustriesgroup.com.
Management will host a conference call on Monday, August 8, 2022 at 4:15 PM EST
Conference toll free number 888-378-4398
Password: 348 775
ABOUT AIR INDUSTRIES GROUP is a Tier 1 integrated manufacturer of precision assemblies and components for mission critical aerospace and defense applications, and a prime contractor for the US Department of Defense.
Certain matters discussed in this press release are “forward-looking statements” intended to qualify for the liability safe harbor established by the Private Securities Litigation Reform Act of 1995. In particular, the company’s statements about trends in the market, future revenues, earnings and adjusted EBITDA, the ability to achieve the company’s backlog and projected backlog, cost reduction measures, possible future results and acquisitions are examples of these forward-looking statements. 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 between actual results of estimates, projections and forecasts made by management, regulatory delays, changes in government funding and budgets and other factors, including general economic conditions, that are beyond 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 differ materially from those expressed or implied in such statements. 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.
The Company uses Adjusted EBITDA, a non-GAAP financial measure as defined by the SEC, as a supplemental measure of profitability because management believes it is useful to understand and evaluate results, excluding the impact of non-recurring depreciation and amortization expenses. cash, stock-based compensation expense. , and non-recurring expenses and expenses, before considering the impact of other potential sources and uses of cash, such as working capital items. This calculation may differ in the method of calculation from similarly titled measures used by other companies and may differ from the calculation of EBITDA used by our lenders to determine compliance with our financial covenants. This non-GAAP measure may have limitations in understanding performance as it excludes the financial impact of transactions, such as interest expense necessary to conduct the Company’s business and therefore it is not intended to be an alternative to the 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 items such as amortization of stock-based compensation and interest expense, which are specific items that affect these measures, have not yet occurred. of the company’s control, or cannot be predicted. For example, quantifying stock-based compensation is not possible because it requires inputs such as future grants and stock prices that cannot currently be determined.