Exhibit 99.1
LMI Aerospace, Inc.
Post Office Box 900
St. Charles, Missouri 63302
For more information,
Contact Ed Dickinson, 636/916-2150
FOR IMMEDIATE RELEASE
LMI AEROSPACE REPORTS SALES INCREASE OF 38.7 PERCENT
AND EARNINGS PER SHARE OF $0.12 IN SECOND QUARTER
St. Louis, August 7, 2001 - LMI Aerospace, Inc. (NASDAQ/NMS:LMIA)
announced today that second-quarter 2001 sales were $19.1 million, an increase
of 38.7 percent over the same quarter in 2000. Net income of $943,000, or $0.12
per diluted share, contrasted sharply with a net loss of $214,000 or $0.03 per
diluted share in the same quarter of 2000.
"The income reported for the second quarter continues the turnaround
which began in the fourth quarter of 2000," said Ronald S. Saks, president and
chief executive officer of LMI. "These results are in line with estimates we
issued on May 31. We expect continued improvement over last year's performance
in the remaining quarters of 2001," Saks said.
Gross profit for the quarter was $4.2 million or 21.9 percent of net
sales, a significant increase over $1.9 million and 13.5 percent respectively,
in the second quarter of 2000. The sharp increase in gross margin resulted
primarily from improved labor efficiency, increased sales volume of $5.3 million
and the inclusion of the operating results of Tempco Engineering, acquired as of
April 1, 2001.
Net sales of Tempco were $3.4 million in the 2001 quarter, and net
sales increases of Boeing and Lockheed products accounted for an additional $2.0
million in sales for the LMI aerospace divisions.
Add One - LMI Aerospace
Selling, general, and administrative expenses (SG&A) were approximately
$300,000 higher than in the year-ago quarter, largely from recurring expenses of
the Tempco division.
Backlog as of June 30, 2001, was approximately $56.6 million, up from
$39.3 million as of the end of the second quarter 2000. Included in backlog at
June 30, 2001 is $10.9 million attributable to Tempco Engineering.
LMI previously reported that sales for the second half of the year
would be reduced by $5 million because of the expiration of a contract to
produce leading-edge components on the Boeing 737NG. Approximately $4 million of
that contract was extended in May 2001 through December 31, 2001. Recent awards
by Bombardier and Lockheed, as well as continuation of the 737NG contract and
Boeing spares work should result in an overall increase of 15 to 20 percent in
annual revenue for the year 2001 in our aerospace and commercial sheet metal
divisions.
In addition, the last two quarters of 2001 should be positively
affected by the previously reported acquisition of Tempco Engineering. Full year
2001 sales for the company as a whole are now estimated to be $75 million to $79
million. LMI's concentration of sales to commercial aircraft builders is
projected to decrease to 37 percent annually in 2002 from an estimated 48
percent in 2001.
LMI has also begun production of commercial sheet metal products during
the second quarter of 2001 using its existing manufacturing capabilities.
On Thursday, August 9, 2001, LMI will record a Webcast to provide an
updated outlook for the balance of 2001 and preliminary estimates for 2002 as a
result of continuing strong orders received since June 30, 2001. A recording of
the Webcast will be available for 90 days on the company's website at
www.lmiaerospace.com.
LMI Aerospace, Inc. is a leading supplier of quality components to the
aerospace and technology industries. The Company operates six manufacturing
facilities that fabricate, finish and integrate close tolerance aluminum and
specialty alloy components for commercial, corporate, regional and military
aircraft, and for laser equipment used in the semi conductor and medical
industries. Its products include leading edge wing slats and lens assemblies;
cockpit window frame assemblies; fuselage skins and supports; passenger and
cargo door frames and supports; and excimer laser components. The Company
celebrated its 50th anniversary in 1998.
Special Note
This press release includes forward-looking statements related to the
Company's outlook in 2001 that are based on current management expectations.
Such forward-looking statements are subject to various risks and uncertainties,
many of which are beyond the control of the company. 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 the company's filings with the
Securities and Exchange Commission.
- Table attached -
LMI Aerospace, Inc.
Condensed Consolidated Statements of Operations
(Amounts in thousands, except per share data)
(Unaudited)
For the Three Months For the Six Months
Ended June 30 Ended June 30
2001 2000 2001 2000
Net sales $ 19,105 $ 13,774 $ 35,154 $ 28,295
Cost of sales 14,929 11,916 27,274 24,206
Gross profit 4,176 1,858 7,880 4,089
Selling, general, and
administrative
expenses 2,464 2,169 4,807 4,705
Income (loss) from
operations 1,712 (311) 3,073 (615)
Interest income
(expense)/other (261) (19) (265) (2)
Income (loss) before
income taxes 1,451 (330) 2,808 (617)
Provision for (benefit
from) income taxes 508 (116) 983 (216)
Income (loss) before
cumulative effect of
change in accounting
principle 943 (214) 1,825 (401)
Cumulative effect of
change in accounting
principle net of income
tax benefit of $88 --- --- --- (164)
Net income (loss) $ 943 $ (214) $ 1,825 $ (565)
Amounts per common share:
Income (loss) before
cumulative effect of
change in accounting
principle $ .12 $ (0.03) $ .23 $ (0.05)
Cumulative effect of
change in accounting
principle --- --- --- $ (0.02)
Net income (loss) per
common share $ .12 $ (0.03) $ .23 $ (0.07)
Net income (loss) per
common share -
assuming dilution $ .12 $ (0.03) $ .22 $ (0.07)
Weighted average
common shares
outstanding 8,070,200 8,203,395 8,075,555 8,205,932
Weighted average
dilutive stock
options outstanding 120,534 116,181 57,362 122,507