Exhibit 99.1
Contact:
Ed Dickinson
Chief Financial Officer, 636/916-2150
FOR IMMEDIATE RELEASE
LMI AEROSPACE REPORTS RESULTS FOR 2003
ST. LOUIS - April 15, 2004 - 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 today
that net sales for the year 2003 were $75.9 million, a decrease of 6.8 percent
from the year 2002. For the year ended December 31, 2003, LMI reported a net
loss of ($4.0) million or ($0.49) per diluted share, compared to a net loss of
($8.3) million or ($1.03) per diluted share 2002.
Additionally, LMI announced that its independent certified public
accountants, BDO Seidman, LLP, has included an explanatory paragraph in its
opinion regarding uncertainty related to the Company's ability to continue as a
going concern. This conclusion was based upon the Company's substantial losses
in recent years and uncertainty about the Company's ability to meet its
financial covenants with its primary lender.
Sales in the fourth quarter of 2003 were $18.6 million, compared to
$21.9 million in the fourth quarter of 2002 and $17.6 million in the third
quarter of 2003. LMI generated a net loss of ($1.6) million or ($0.20) per
diluted share in the fourth quarter of 2003 compared to a net loss of ($7.7)
million or ($0.94) per diluted share in the fourth quarter of 2002. The fourth
quarter of 2002 included a goodwill impairment charge of $5.1 million.
During the fourth quarter of 2003, the Company generated a loss before
income taxes of ($2.6) million, which was influenced by four significant items:
Expense for obsolete or slow moving inventory in excess of $ 1.9 million
historical experience
Plant moving expenses in Vista, California $ 0.3 million
Restructuring expense in St. Charles, Missouri, $ 0.1 million
and Wichita, Kansas
Gain on sale of securities $(0.3) million
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Net negative impact on operating loss in the quarter $ 2.0 million
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A more complete review of the fourth quarter results for 2003 and 2002
and guidance for 2004 will be released later this week.
Backlog at December 31, 2003 was approximately $53.9 million, down from
$72.1 million at December 31, 2002.
"Because of operating difficulties experienced by many of our key
customers in 2003, our emphasis has been on previously announced cost reduction
efforts at our St. Charles, Missouri and Wichita, Kansas facilities as well as
in corporate overhead costs. Most of the restructuring was completed by March
2004 and we are budgeting our costs based on 2004 sales of $75 million to $80
million," said Ronald Saks, President and Chief Executive Officer. "Beginning in
September 2003 our machining and technology segment experienced significantly
higher order rates for both its military and laser products and we now expect
increased sales volume for this segment in 2004. In the first quarter of 2004,
our sheet metal segment has begun to receive orders for new components on
regional, business and commercial aircraft, the largest portion of which is
being transferred from another industry supplier. We will modify our budgets and
guidance, if necessary, when we are able to reasonably estimate the size and
impact of these orders."
LMI Aerospace, Inc. is a leading supplier of quality components to the
aerospace and technology industries. The Company operates thirteen facilities
that fabricate, machine, finish and integrate 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 commercial sheet metal industries.
This press release includes forward-looking statements related to LMI
Aerospace's outlook for 2004 and future periods, 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. Please
refer to the Risk Factors contained in the company's Annual Report on Form 10-K
for the year ended December 31, 2003, for more details.
LMI Aerospace, Inc.
Consolidated Statements of Operations
(Amounts in thousands, except per share data)
Year Ended December 31
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2001 2002 2003
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Net sales $70,823 $81,349 $75,855
Cost of sales 54,809 69,185 67,485
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Gross profit 16,014 12,164 8,370
Selling, general and administrative
expenses 10,194 12,931 13,423
Goodwill impairment charges - 5,104 -
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Income (loss) from operations 5,820 (5,871) (5,053)
Other income (expense):
Interest expense (843) (1,495) (1,645)
Other, net (247) (525) 306
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(1,090) (2,020) (1,339)
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Income (loss) before income taxes 4,730 (7,891) (6,392)
Provision for (benefit of) income taxes 1,764 (691) (2,411)
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Income (loss) before cumulative
effect of change in accounting
principle 2,966 (7,200) (3,981)
Cumulative effect of change in accounting
principle, net of income tax benefit of
$663 for 2002. - (1,104) -
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Net income (loss) $ 2,966 $ (8,304) $ (3,981)
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Amounts per common share:
Income (loss) before cumulative effect of
change in accounting principle $ 0.37 $ (0.89) $ (0.49)
Cumulative effect of change in accounting
principle - (0.14) -
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Net income (loss) per common share $ 0.37 $ (1.03) $ (0.49)
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Net income (loss) per common share -
assuming dilution $ 0.36 $ (1.03) $ (0.49)
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Weighted average common shares
outstanding 8,059,682 8,077,293 8,181,786
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Weighted average dilutive stock options
outstanding 98,444 - -
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LMI Aerospace, Inc.
Consolidated Balance Sheets
(Amounts in thousands, except share and per share data)
December 31
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2002 2003
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Assets
Current assets:
Cash and cash equivalents $ 1,182 $ 441
Trade accounts receivable, net of allowance
of $334 in 2002 and $245 in 2003 11,392 9,158
Inventories 25,181 24,159
Prepaid expenses 978 787
Deferred income taxes 1,389 2,206
Income taxes receivable 1,501 1,933
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Total current assets 41,623 38,684
Property, plant, and equipment, net 25,986 22,248
Goodwill 5,653 5,653
Customer intangible assets, net 4,267 3,792
Other assets 336 142
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Total assets $77,865 $70,519
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Liabilities and stockholders' equity
Current liabilities:
Accounts payable $ 6,107 $ 4,570
Accrued expenses 2,846 2,126
Current installments of long-term debt and capital lease 4,616 6,069
obligations
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Total current liabilities 13,569 12,765
Long-term debt and capital lease obligations, less current
installments 24,621 21,756
Deferred income taxes 1,939 2,206
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Total long-term liabilities 26,560 23,962
Stockholders' equity:
Common stock of $.02 par value; authorized 28,000,000
shares; 8,736,427 shares issued in 2002 and 2003 175 175
Preferred stock; authorized 2,000,000 shares; none issued - -
Additional paid-in capital 26,171 26,171
Treasury stock, at cost, 554,641 shares in 2002 and 2003 (2,632) (2,632)
Accumulated other comprehensive (loss) income (17) 20
Retained earnings 14,039 10,058
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Total stockholders' equity 37,736 33,792
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Total liabilities and stockholders equity $77,865 $70,519
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