EXHIBIT 99.1
Global Aircraft Solutions, Inc. (GACF) Announces Fourth Quarter and Full-Year
2005 Financial Results
Monday April 10, 9:20 am ET
TUCSON, Ariz.--(BUSINESS WIRE)--April 10, 2006--Global Aircraft Solutions, Inc.
(OTCBB:GACF - News) today announced its results of operations for the fourth
quarter and year ended December 31, 2005. Significant 2005 financial results
include:
o Record revenue increased 33% to $41.2 Million for 2005
o Net Profit increased 36% to exceed $3.1 Million, or $.09 per share for
2005
o Gain from operations increased 80% over the previous year
o Total Stockholders Equity increased 130%
Operating Results
Year-end 2005 results:
Total consolidated annual revenue for 2005 was $41.2 million, up 33% compared to
$30.8 million for 2004. Net profit before income taxes for 2005 was $3.5
million; up 52% compared to net profit before income taxes of $2.3 million in
2004. Net profit for 2005 was $3.1 million, up 36% compared to net profit of
$2.3 million in 2004. EBITDA for 2005 was $4.5 million, up 46% compared to $3.1
million in 2004. It should be noted that 2004 net profit and EBITDA was aided by
the inclusion of $1.1 million in extraordinary items, while our 2005 financial
results were achieved in the absence of any extraordinary items. A comparison of
the Company's gain from operations illustrates 80% growth from 2004's $1.3
million to 2005's $2.4 million. Gross profit for the fourth quarter of 2005 was
$2.3 million, while gross profit for the fourth quarter of 2004 was $1.55
million, an increase of 48%. The Company's total capital expenditures in 2005
were $344,834 down 68% from capital expenditures of $1.1 million in 2004.
It should be noted that the required accounting treatment for JetGlobal's
results is an entry on the Company's Income Statement for 30% of JetGlobal's
earnings. Even though JetGlobal's 2005 revenue was $7.2 million, and Global's
participation in JetGlobal is 30%, the pro rata revenue of $2.1 million is not
booked in Global's total revenue. This is an important consideration to keep in
mind for 2005 results, and the results of future periods, since Management
believes aircraft trading results for the JetGlobal partnership will increase
over time. In 2005 JetGlobal contributed $1.1 million to the Company's bottom
line. JetGlobal did not exist in 2004.
Fourth Quarter results:
The Company reported consolidated revenue for the fourth quarter ended December
31, 2005 of $8.3 million compared to the $8.1 million for the fourth quarter
last year. Consolidated gross profit for the fourth quarter of 2005 was $2.3
million, an increase of 53% over the $1.5 million gross profit for the same
period last year. Gain from operations for the fourth quarter of 2005 was $1.2
million, including the profit from operations of JetGlobal, versus $170,419 in
the fourth quarter of 2004. Net profit for the quarter was $1.1 million or,
$0.03 a share diluted, versus $135,479 $0.00 a share diluted in Q4 of 2004. The
Company's joint venture, JetGlobal, produced its first contribution to quarterly
earnings in the fourth quarter of 2005 for the aircraft trading division of
Global.
John Sawyer, President of both GACF and HAT, commented, "We are extremely
pleased with our ability to keep delivering strong growth in both the top and
bottom lines of the Company. Key business elements now in place such as the
integration of the Jetran/US Air inventory into World Jet's inventory, the
projected growth of our exclusive customer, Avolar, and the tremendous aircraft
trading opportunities we have locked down through our JetGlobal partnership with
BCI Aircraft Leasing, all point to further strong financial results for Global
Aircraft Solutions in 2006."
GACF and HAT Chairman Ian Herman added, "The dramatic success the Company has
enjoyed since its formation in early 2002 speaks to the soundness of our
business model. We fully expect the synergistic benefits derived from our
aircraft trading, maintenance and parts sales to continue to propel Global
Aircraft Solutions into an increasingly prominent and successful position in the
Aerospace Industry over the foreseeable future."
Conference Call Reminder
The conference call will take place at 4:15 p.m. Eastern, on Monday, April 10,
2006. Anyone interested in participating should call 877-692-2592 if calling
within the United States, or 973-582-2700 if calling internationally,
approximately 5 to 10 minutes prior to 4:15 p.m. There will be a playback
available until April 17, 2006. To listen to the playback, please call
877-519-4471 if calling within the United States, or 973-341-3080 if calling
internationally. Please use pass code 7252001 for the replay.
This call is being webcast by ViaVid Broadcasting and can be accessed at
Global's Web site at http://www.globalaircraftsolutions.com. The webcast may
also be accessed at ViaVid's Web site at http://www.viavid.net. The webcast can
be accessed through Aug. 12, 2006, on either site. To access the webcast, you
will need to have the Windows Media Player on your desktop. For the free
download of the Media Player, please visit:
http://www.microsoft.com/windows/windowsmedia/en/download/default.asp.
About Global Aircraft Solutions
Global Aircraft Solutions trades in commercial jet aircraft and provides parts
support and maintenance, repair and overhaul (MRO) services for commercial
aircraft to scheduled and charter airlines and aviation leasing companies.
Hamilton Aerospace and World Jet, both divisions of Global Aircraft Solutions,
operate from adjacent facilities comprising about 35 acres located at Tucson
International Airport. These facilities include hangars, workshops, warehouses,
offices and other buildings. Notable customers include AerCap, BCI Aircraft
Leasing, Q Aviation, Falcon Air Express, Jetran International, Goodrich
Corporation, AAR, National Jet Systems, Pemco, San Antonio Aerospace, Pegasus
Aviation, Shaheen Airlines, Iraqi Airways, and Aero California.
Global's website is located at www.globalaircraftsolutions.com. The Hamilton
Aerospace website is located at www.hamaerotech.com.
Except for the historical information presented, the above statements are
"forward-looking statements" within the meaning of the Private Securities
Litigation Reform Act of 1995 or regulations thereunder. These forward-looking
statements are subject to risks and uncertainties, and actual results may differ
materially. These risks include the economic health of the airline industry,
demand for Global Aircraft Solutions' services, and competitive pricing
pressures. In addition, other risks are detailed in Global's Form 10-KSB filed
on April 4, 2005. These statements speak only as of above date, and Global
disclaims any intent or obligation to update them.
Tables Follow
GLOBAL AIRCRAFT SOLUTIONS, INC.
Formerly Renegade Venture (Nev.) Corporation
Consolidated Balance Sheet
December 31, 2004 and 2005
(Audited)
ASSETS
2004 2005
----------- -----------
CURRENT ASSETS
Cash and cash equivalents $ 549,904 $ 368,013
Accounts receivable 4,766,215 4,993,138
Note receivable 175,642 1,997,868
Inventory 3,507,249 6,580,092
Restricted funds 98,500
Other current assets 380,932 304,987
----------- -----------
TOTAL CURRENT ASSETS $ 9,379,942 $14,342,598
Property, plant and equipment 1,632,134 1,642,141
Investments 25,000 25,000
Equity in net assets of and advances to
affiliates 6,333,690
Customer list, net 267,771 133,886
Agreement with vendor, net 56,980 28,490
Goodwill 38,992 38,992
Inventory, non current 212,500 2,187,343
Other assets 144,693 322,481
----------- -----------
TOTAL ASSETS $11,758,012 $25,054,621
=========== ===========
The accompanying notes, which are not included in this press release, are an
integral part of these consolidated financial statements.
GLOBAL AIRCRAFT SOLUTIONS, INC.
Formerly Renegade Venture (Nev.) Corporation
Consolidated Balance Sheet
December 31, 2004 and 2005
(Audited)
LIABILITIES AND STOCKHOLDERS' EQUITY
2004 2005
------------ ------------
CURRENT LIABILITIES
Notes payable $ 0 $ 2,564,739
Accounts payable - trade 2,644,593 7,181,397
Due to factor 604,411 0
Customer deposits 280,537
Billings in excess of costs and estimated
earnings on contracts in progress 966,238 23,458
Accrued liabilities 844,709 570,724
Income taxes payable 311,182 685,904
Commitments & contingencies 0 0
------------ ------------
TOTAL CURRENT LIABILITIES $ 5,651,670 $ 11,026,222
TOTAL LIABILITIES $ 5,651,670 $ 11,026,222
STOCKHOLDERS' EQUITY
Common stock, $.001 par value,
100,000,000
Shares authorized in 2004 and 2005;
31,030,386 and 38,998,215 issued;
30,650,386 and 38,618,215 outstanding in
2004 and 2005 $ 31,030 $ 38,998
Additional paid-in capital 7,033,950 11,904,683
Deferred compensation (80,000)
Contributed capital 620,289 620,289
Retained earnings (Accumulated deficit) (1,578,927) 1,544,429
------------ ------------
TOTAL STOCKHOLDERS' EQUITY $ 6,106,342 $ 14,028,399
------------ ------------
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $ 11,758,012 $ 25,054,621
============ ============
The accompanying notes, which are not included in this press release, are an
integral part of these consolidated financial statements.
GLOBAL AIRCRAFT SOLUTIONS, INC.
Formerly Renegade Venture (Nev.) Corporation
Consolidated Statement of Operations
Years ended December 31, 2004 and 2005
(Audited)
2004 2005
------------ ------------
Net sales $ 30,851,118 $ 41,228,648
Cost of sales (24,195,426) (30,842,461)
Inventory write down (212,500) (215,500)
------------ ------------
Gross profit 6,443,192 10,170,687
Selling, general and
administrative expenses (4,826,519) (7,788,047)
Penalties (295,903) (1,061)
------------ ------------
Gain (loss) from operations 1,320,770 2,381,579
Other income (expense):
Interest income 85,521 245,610
Interest expense (329,023) (386,927)
Gain on renegotiation of
contract 1,144,502
Miscellaneous expense (9,084) (110)
Discounts taken 45,438 7,715
Miscellaneous income 31,162 130,571
Equity in income of
unconsolidated affiliate 1,111,096
------------ ------------
Net profit (loss), before income
taxes $ 2,291,286 $ 3,489,534
Provision for Income Taxes (366,178)
------------ ------------
Net profit (loss), after taxes $ 2,291,286 $ 3,123,356
============ ============
Net profit (loss) per share
(Basic) $ 0.09 $ 0.09
============ ============
Net profit (loss) per share
(Fully Diluted) $ 0.09 $ 0.09
============ ============
The accompanying notes, which are not included in this press release, are an
integral part of these consolidated financial statements.