Exhibit 99.1
Contact:
Ed Dickinson, Chief Financial Officer
636.916.2150
FOR IMMEDIATE RELEASE
LMI AEROSPACE REPORTS RESULTS FOR THE SECOND QUARTER 2005
Quarterly Revenue and Net Income Increase
ST. LOUIS - August 10, 2005 - LMI Aerospace, Inc. (Nasdaq:LMIA), a
leading provider of assemblies, kits and detail sheet metal and machined
components to the aerospace, defense and technology industries, announced second
quarter 2005 net sales of $24.0 million and net income of $1.0 million or $0.13
per common share compared to net sales of $21.9 million and net income of $0.1
million or $0.02 per common share in the second quarter of 2004.
The sheet metal segment generated net sales of $20.6 million in the
second quarter of 2005, an 18% increase from $17.5 million in the second quarter
of 2004. The increase was due to higher sales of corporate jet and commercial
aircraft components. For the six months ended June 30, 2005, sales for the sheet
metal segment grew to $41.0 million, a 27% increase from $32.2 million in the
same period of 2004. The majority of the sales growth related to increased sales
of components for use on Gulfstream aircraft, resulting from increased
production rates and additional work statement.
Net sales for the machining and technology segment fell 23% in the
second quarter of 2005 to $3.4 million from $4.4 million in the second quarter
of 2004. This decrease resulted from a drop in orders for technology products.
Demand for laser products began to improve early in the second half of 2005,
with shipments expected to reach $4.5 million compared to $1.8 million in the
first half of 2005.
Gross profit for the second quarter of 2005 was $5.6 million or 23.4%,
up from $4.3 million or 19.8% in the second quarter of 2004. The sales gains in
the quarter combined with reduced operating costs resulting from the previous
restructuring at the company's St. Charles, Missouri and Wichita, Kansas
facilities contributed to higher gross profit, as did increased efficiency and
aggressive lean manufacturing initiatives.
Selling, general and administrative expenses were $3.5 million in the
second quarter of 2005, a decrease from $3.6 million in the second quarter of
2004. For the six months ended June 30, 2005, selling general and administrative
expenses declined to $6.9 million, compared to $7.3 million in the 2004 period.
The six months ended June 30, 2004 included $0.7 million of restructuring
expenses, where as no such changes were recorded in the 2005 period.
Interest expense for the six months declined to $0.8 million in 2005
from $1.0 million in 2004. Despite increases in interest rates caused by higher
prime lending and LIBOR rates, a combination of debt reduction from operational
cash flow and the lack of a $0.1 million nonrecurring bank charge incurred in
2004 accounted for the decline.
"Demand for our products and services has continued to increase" said
Ronald Saks, President and CEO of LMI Aerospace, Inc. "The current aerospace
environment of increasing production rates of commercial aircraft and corporate
jets and increased demand on new programs from new and existing customers has
caused our backlog to reach an all time high on June 30, 2005 of $99 million.
Awards during the second quarter of 2005 for assemblies and components for
Sikorsky Blackhawk helicopters from both Vought and Sikorsky, as well as a more
recent transfer of Boeing 777 work from another supplier, have added to our
production demands in 2005 and 2006. In addition, we expect our machining and
technology segment to generate increased sales in the second half of 2005."
"Consistent with our current guidance, our forecast for 2005 is for
sales of $100 to $105 million, gross margins of 22 to 24 percent, selling,
general and administrative expense of $14.5 million, interest expense of $1.8
million, and a tax rate of 37 to 38 percent, before any tax credits. Our
forecast for 2006 sales has been raised to $110 million to $125 million, based
on existing contracts with our customers, increased production rates, and newly
awarded business," Saks commented.
Saks continued, "We project that increasing demand for our products and
services will continue through 2006. The reduced capacity of the domestic supply
base will require that we expand organically, both within and outside the United
States, through use of direct investment, joint ventures, and independent
suppliers."
LMI Aerospace, Inc. is a leading supplier of quality components to the
aerospace and technology industries. The company operates eight manufacturing
facilities that fabricate, machine, finish, kit, and integrates formed, close
tolerance aluminum and specialty alloy components for commercial, corporate,
regional and military aircraft, laser equipment used in the semiconductor and
medical industries, and for the commercial sheet metal industries.
This press release includes forward-looking statements related to LMI
Aerospace's outlook for the remainder of 2005 and 2006, which are based on
current management expectation. Such forward-looking statements are subject to
various risks and uncertainties, many of which are beyond the control of LMI
Aerospace, Inc. Actual results could differ materially from the forward-looking
statements as a result, among other things, of the factors detailed from time to
time in LMI Aerospace's filings with the Securities and Exchange Commission.
Please refer to the Risk Factors contained in the company's Annual Report on
Form 10-K and Form 10-K/A for the year ended December 31, 2004 for more details.
LMI AEROSPACE, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except per share data)
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
2005 2004 2005 2004
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Net sales $ 24,008 $ 21,875 $ 47,981 $ 40,415
Cost of sales 18,383 17,548 37,134 33,417
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Gross profit 5,625 4,327 10,847 6,998
Selling, general and administrative expenses 3,486 3,562 6,940 7,307
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Income (loss) from operations 2,139 765 3,907 (309)
Other income (expense):
Interest expense (422) (563) (842) (1,008)
Other, net (4) 8 (1) 8
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Income (loss) before income taxes 1,713 210 3,064 (1,309)
Provision for income taxes 664 75 1,171 75
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Net income (loss) $ 1,049 $ 135 $ 1,893 $ (1,384)
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Amounts per common share:
Net income (loss) per common share $ 0.13 $ 0.02 $ 0.23 $ (0.17)
=======================================================================
Net income (loss) per common share assuming
dilution $ 0.13 $ 0.02 $ 0.23 $ (0.17)
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Weighted average common shares
outstanding 8,239,942 8,181,786 8,238,866 8,181,786
=======================================================================
Weighted average diluted stock options
outstanding 95,822 - 106,897 -
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LMI AEROSPACE, INC.
CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except share and per share data)
(Unaudited)
June 30, 2005 December 31, 2004
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Assets
Current assets:
Cash and cash equivalents $ 195 $ 414
Trade accounts receivable, net of allowance of $154 at June
30, 2005 and $213 at December 31, 2004 10,792 9,093
Inventories 23,594 23,687
Prepaid expenses and other current assets 1,249 981
Deferred income taxes 2,043 2,043
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Total current assets 37,873 36,218
Property, plant and equipment, net 17,702 18,947
Goodwill 5,653 5,653
Customer intangible assets, net 3,246 3,408
Other assets 899 1,155
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Total assets $ 65,373 $ 65,381
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Liabilities and stockholders' equity
Current liabilities:
Accounts payable $ 5,551 $ 5,857
Accrued expenses 2,842 2,728
Income taxes payable 1,009 67
Current installments of long-term debt and capital lease
obligations 1,782 1,973
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Total current liabilities 11,184 10,625
Long-term debt and capital lease obligations, less current
installments 15,109 17,583
Subordinated debt 1,000 1,000
Deferred income taxes 1,821 1,821
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Total long-term liabilities 17,930 20,404
Stockholders' equity:
Common stock, $.02 par value per share; authorized
28,000,000 shares; issued 8,736,427 shares in both
periods 175 175
Preferred stock, $.02 par value per share; authorized
2,000,000 shares; none issued in both periods - -
Additional paid-in capital 26,171 26,171
Treasury stock, at cost, 494,312 shares at June 30, 2005 and
499,712 shares at December 31, 2004 (2,345) (2,371)
Retained earnings 12,258 10,377
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Total stockholders' equity 36,259 34,352
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Total liabilities and stockholders' equity $ 65,373 $ 65,381
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