SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_____________________
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of earliest event reported: December 20, 2001
LMI AEROSPACE, INC.
(Exact Name of Registrant as Specified in Its Charter)
Missouri
(State or Other Jurisdiction of Incorporation)
0-24293 43-1309065
(Commission File Number) (I.R.S. Employer Identification No.)
3600 Mueller Road, St. Charles, Missouri 633021
(Address of Principal Executive Offices) (Zip Code)
(636) 946-6525
(Registrant's Telephone Number, Including Area Code)
_____________________
Item 9. Regulation FD Disclosure.
On December 20, 2001, LMI Aerospace, Inc. issued a press release
regarding the award of certain contracts and estimates of 2002 performance. The
text of the announcement is attached hereto as Exhibit 99.1.
Exhibit Number Description
99.1 Text of Press Release, dated December 20,
2001, issued by LMI Aerospace, Inc.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Date: December 20, 2001
LMI AEROSPACE, INC.
By: /s/ Lawrence E. Dickinson
-------------------------------
Lawrence E. Dickinson
Chief Financial Officer and Secretary
EXHIBIT INDEX
Exhibit Description
99.1 Text of Press Release, dated December 20, 2001,
issued by LMI Aerospace, Inc.
Exhibit 99.1
Exhibit 99.1
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LMI Aerospace, Inc.
Post Office Box 900
St. Charles, Missouri 63302
For more information,
Contact Ed Dickinson, 636/916-2150
LMI AEROSPACE, INC. WINS CONTRACTS TO PRODUCE
C-130 COMPONENTS AND 737 CLASSIC WINGLETS
St. Louis, December 20, 2001 - LMI Aerospace, Inc. (NASDAQ/NMS:LMIA)
announced it has won contracts to produce components for C-130 military
transport aircraft from Lockheed Martin. Separately, the Company also announced
a retrofit contract with Kawasaki Heavy Industries for winglet components on the
current fleet of 737 Classic aircraft. These contracts, as well as several
smaller contracts from Vought, Canadair, and Boeing Spares are expected to begin
in 2002. The five-year estimated value of these awards is approximately $13
million.
Ron Saks, president of LMI Aerospace commented, "These contracts
provide LMI with new volume to offset some of the decline resulting from the
production rate decreases within the commercial aerospace industry. These awards
continue our strategy of diversification by increasing our military, aftermarket
and regional jet business." As a result, the Company has updated its outlook and
estimates for 2002.
The Company previously announced that it expects Boeing and its Tier
One subcontractors to reduce order rates in 2002 by approximately 35 percent.
However, an expected reduction in order rates on regional jet models produced by
Canadair has not materialized, and production rate increases on products from
Lockheed may be greater than previously thought.
"As a result," Saks said "Our current forecast for 2002 is for sales of
LMI to total $75 million to $80 million, with inventory growth of $1 million to
$3 million, and gross margins of 20 to 23 percent. Our guidance of November 15
estimated 2002 sales would increase to $73 million to $77 million. We estimate
that sales of components and assemblies for large commercial aircraft should
represent about 30 percent of total sales in 2002, down from an estimated 48
percent in 2001.
Selling, general and administrative expenses in 2002 should be
approximately the same as in 2001. These costs for 2002 include a $350,000
benefit related to the Company's adoption of FASB 141 and 142, under which
goodwill is no longer amortized but is subject to annual impairment testing.
For the full year 2002, the Company expects capital additions and
working capital investment to total $4 million to $5 million. Accordingly, cash
flow should enable the Company to reduce long-term debt to $7 million to $8
million by the end of 2002.
"We continue to invest in manufacturing and information technology, and
intend to take advantage of our firm financial condition to significantly
improve our relationship with key customers. Emphasis continues to be placed on
several projects designed to streamline our operations and expand the use of
e-commerce with several customers and our primary raw material supplier. In
addition, creation of a separate tooling division and expansion of our design
engineering capability should result in increased opportunities to partner with
our growth customers," Saks said. 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
components 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.
This press release includes forward-looking statements related to LMI
Aerospace's outlook for 2001 and beyond, which 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 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.