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8-K - FORM 8-K - BREEZE-EASTERN CORP | y93202e8vk.htm |
Exhibit 99.1
PRESS RELEASE
FOR IMMEDIATE DISTRIBUTION
Contact: | Mike Harlan CEO, President, and Director Phone: 973-602-1001 |
BREEZE-EASTERN REPORTS RECORD SECOND QUARTER AND
YEAR-TO-DATE SALES
YEAR-TO-DATE SALES
Whippany, New Jersey October 27, 2011 Breeze-Eastern Corporation (NYSE Amex: BZC) today
reported its Fiscal 2012 Second Quarter financial results.
| Net sales: $17.9 million, a new record for second quarter sales, up 18% over $15.1 million for the Fiscal 2011 second quarter. | ||
| Net income: $1.1 million, or $0.12 per diluted share, up 73% over the Fiscal 2011 second quarter. | ||
| Adjusted EBITDA, as described under Non-GAAP Financial Measures in this press release: $2.4 million, versus $1.9 million in the Fiscal 2011 second quarter. | ||
| Total debt: $10.7 million, $4.9 million lower than a year ago. | ||
| Cash: $10.6 million, versus $4.9 million a year ago. | ||
| Bookings: $15.6 million, versus $18.4 million in the Fiscal 2011 second quarter. The book-to-bill ratio for the Fiscal 2012 second quarter was 0.9. |
For the Fiscal first six months, the financial results follow.
| Net sales: $36.1 million, a new record for first six months sales, up 14% over $31.6 million for the Fiscal 2011 first six months. | ||
| Net income: $1.7 million, or $0.18 per diluted share, up 39% from $1.2 million, or $0.13 per diluted share, for the first six months of Fiscal 2011. | ||
| Adjusted EBITDA, as described under Non-GAAP Financial Measures in this press release: $4.0 million, versus $3.9 million in the Fiscal 2011 first six months. | ||
| Bookings: $29.2 million, versus $38.1 million in the Fiscal 2011 first six months. The book-to-bill ratio for the Fiscal 2012 first six months was 0.8. |
35 Melanie Lane Whippany New Jersey 07981
Tel: (973) 602-1001 Fax: (973) 739-9333 www.breeze-eastern.com
Tel: (973) 602-1001 Fax: (973) 739-9333 www.breeze-eastern.com
Breeze-Eastern Corporation October 27, 2011 | ||
Fiscal 2012 Second Quarter Earnings Release | Page 2 of 5 |
Mike Harlan, President and Chief Executive Officer, said,
We continued to achieve strong sales with our third consecutive quarter of record sales. Our cash flow
also continues to be strong and our net debt at the end of the quarter was down to only $51,000. We have
generated this cash while continuing to invest in product development. We completed development
of the new Cargo Winch for the C-27J JCA aircraft for Alenia/L-3 and the U.S. Air Force
during our second quarter and expect to make production shipments later this year. We
also delivered a prototype weapons handling system for the Predator-C program. We have
been strategically increasing inventory levels in ways that we expect will improve customer service and
satisfaction. Despite this investment in inventory, our balance sheet has ample liquidity with
a very strong cash position and we remain well clear of our debt covenants.
* * *
The Companys earnings conference call is at 10:00 a.m. EDT
on Thursday, October 27, 2011 with the following numbers: (866) 831-5605 or (617) 213-8851 and
passcode 51257161.
* * *
Breeze-Eastern Corporation (http://www.breeze-eastern.com)
is the worlds leading designer and manufacturer of high performance lifting and pulling devices for
military and civilian aircraft, including rescue hoists, winches and cargo hooks, and weapons-lifting systems.
The Company employs approximately 165 people at its facilities in Whippany, New Jersey.
Breeze-Eastern Corporation October 27, 2011 | ||
Fiscal 2012 Second Quarter Earnings Release | Page 3 of 5 |
NonGAAP Financial Measures
In addition to disclosing financial results that are determined in accordance with Generally
Accepted Accounting Principles (GAAP), the Company also discloses Adjusted EBITDA (earnings
before interest, taxes, depreciation and amortization, other income/expense, loss on debt
extinguishment, and relocation expense). The Company presents Adjusted EBITDA because it considers
it an important supplemental measure of performance. Measures similar to Adjusted EBITDA are
widely used by the Company and by others in the Companys industry to evaluate performance and
valuation. The Company believes Adjusted EBITDA facilitates operating performance comparisons from
period to period and company to company by backing out potential differences caused by variations
in capital structure (affecting relative interest expense), tax positions (such as the impact on
periods or companies of changes in effective tax rates or net operating losses) and the age and
book depreciation of facilities and equipment (affecting relative depreciation expense). The
Company also presents Adjusted EBITDA because it believes it is frequently used by investors and
other interested parties as a basis for evaluating performance.
Adjusted EBITDA has limitations as an analytical tool, and should not be considered in isolation or
as a substitute for analysis of the Companys results as reported under GAAP. Some of the
limitations of Adjusted EBITDA are that (i) it does not reflect the Companys cash expenditures for
capital assets, (ii) it does not reflect the significant interest expense or cash requirements
necessary to service interest or principal payments on the Companys debt, and (iii) it does not
reflect changes in, or cash requirements for, the Companys working capital. Furthermore, other
companies in the aerospace and defense industry may calculate these measures differently than the
manner presented above. Accordingly, the Company focuses primarily on its GAAP results and uses
Adjusted EBITDA only supplementally. A reconciliation of Adjusted EBITDA to net income, the most
directly comparable GAAP measure, for the three and six months ended September 30, 2011 is shown in
the tables below.
INFORMATION ABOUT FORWARD-LOOKING STATEMENTS
This news release contains forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933 as amended, and Section 21E of the Securities Exchange Act of 1934, as amended,
regarding our future operating performance, financial results, events, trends and plans. All
statements in this news release other than statements of historical facts are forward-looking
statements. Forward-looking statements involve numerous risks and uncertainties. We have attempted
to identify any forward-looking statements by using words such as anticipates, believes,
could, expects, intends, may, should and other similar expressions. Although we believe
that the expectations reflected in all of our forward-looking statements are reasonable, we can
give no assurance that such expectations will prove to be correct. Such statements are not
guarantees of future performance or events and are subject to known and unknown risks and
uncertainties that could cause our actual results, events or financial positions to differ
materially from those included within the forward-looking statements. Such factors include, but are
not limited to competition from other companies; changes in applicable laws, rules, and regulations
affecting the Company in the locations in which it conducts its business; interest rate trends; a
decrease in the United States government defense spending, changes in spending allocation or the
termination, postponement, or failure to fund one or more significant contracts by the United
States government or other customers; changes in our sales strategy and product development plans;
changes in the marketplace; developments in environmental proceedings that we are involved in;
continued services of our executive management team; status of labor relations; competitive pricing
pressures; market acceptance of our products under development; delays in the development of
products; determination by us to dispose of or acquire additional assets; general industry and
economic conditions; events impacting the U.S. and world financial markets and economies; and those
specific risks disclosed in our Annual Report on Form 10-K for the fiscal year ended March 31,
2011, and other filings with the Securities and Exchange Commission. We undertake no obligation to
update publicly any forward-looking statements, whether as a result of new information or future
events.
Breeze-Eastern Corporation October 27, 2011 | ||
Fiscal 2012 Second Quarter Earnings Release | Page 4 of 5 |
BREEZE-EASTERN CORPORATION
STATEMENTS OF CONSOLIDATED OPERATIONS
(In Thousands of Dollars Except Share Data)
STATEMENTS OF CONSOLIDATED OPERATIONS
(In Thousands of Dollars Except Share Data)
Three Months Ended | Six Months Ended | |||||||||||||||
9/30/11 | 9/30/10 | 9/30/11 | 9/30/10 | |||||||||||||
Net sales |
$ | 17,880 | $ | 15,106 | $ | 36,128 | $ | 31,646 | ||||||||
Cost of sales |
9,921 | 8,930 | 20,785 | 19,337 | ||||||||||||
Gross profit |
7,959 | 6,176 | 15,343 | 12,309 | ||||||||||||
Selling, general, and administrative expenses |
3,851 | 3,517 | 7,755 | 6,591 | ||||||||||||
Engineering expense |
2,063 | 1,299 | 4,348 | 2,855 | ||||||||||||
Relocation expense |
| | | 211 | ||||||||||||
Operating income |
2,045 | 1,360 | 3,240 | 2,652 | ||||||||||||
Interest expense |
102 | 170 | 236 | 383 | ||||||||||||
Other expense-net |
20 | 81 | 50 | 145 | ||||||||||||
Income before income taxes |
1,923 | 1,109 | 2,954 | 2,124 | ||||||||||||
Provision for income taxes |
808 | 466 | 1,241 | 892 | ||||||||||||
Net income |
$ | 1,115 | $ | 643 | $ | 1,713 | $ | 1,232 | ||||||||
Basic earnings per share: |
$ | 0.12 | $ | 0.07 | $ | 0.18 | $ | 0.13 | ||||||||
Diluted earnings per share: |
$ | 0.12 | $ | 0.07 | $ | 0.18 | $ | 0.13 | ||||||||
Weighted average basic shares |
9,470,000 | 9,400,000 | 9,457,000 | 9,398,000 | ||||||||||||
Weighted average diluted shares |
9,628,000 | 9,412,000 | 9,596,000 | 9,412,000 |
BALANCE SHEET INFORMATION
(In Thousands of Dollars)
(In Thousands of Dollars)
9/30/11 | 3/31/11 | |||||||
Current assets |
$ | 49,069 | $ | 47,756 | ||||
Fixed assets net |
8,195 | 8,351 | ||||||
Other assets |
22,097 | 22,041 | ||||||
Total assets |
$ | 79,361 | $ | 78,148 | ||||
Current portion of long-term debt
and short term borrowings |
$ | 821 | $ | | ||||
Other current liabilities |
16,688 | 15,380 | ||||||
Total current liabilities |
17,509 | 15,380 | ||||||
Long-term debt |
9,858 | 11,500 | ||||||
Other non-current liabilities |
16,292 | 17,835 | ||||||
Stockholders equity |
35,702 | 33,433 | ||||||
Total liabilities and stockholders equity |
$ | 79,361 | $ | 78,148 | ||||
Breeze-Eastern Corporation October 27, 2011 Fiscal 2012 Second Quarter Earnings Release |
Page 5 of 5 |
Reconciliation of Reported Income to Adjusted EBITDA
(In Thousands of Dollars)
(In Thousands of Dollars)
Three Months Ended | Six Months Ended | |||||||||||||||
9/30/11 | 9/30/10 | 9/30/11 | 9/30/10 | |||||||||||||
Net sales |
$ | 17,880 | $ | 15,106 | $ | 36,128 | $ | 31,646 | ||||||||
Cost of sales |
9,921 | 8,930 | 20,785 | 19,337 | ||||||||||||
Gross profit |
7,959 | 6,176 | 15,343 | 12,309 | ||||||||||||
Selling, general and administrative expenses |
3,851 | 3,517 | 7,755 | 6,591 | ||||||||||||
Engineering expense |
2,063 | 1,299 | 4,348 | 2,855 | ||||||||||||
Relocation expense |
| | | 211 | ||||||||||||
Operating income |
2,045 | 1,360 | 3,240 | 2,652 | ||||||||||||
Add back: Depreciation and amortization |
391 | 528 | 767 | 998 | ||||||||||||
Relocation expense |
| | | 211 | ||||||||||||
Adjusted EBITDA |
$ | 2,436 | $ | 1,888 | $ | 4,007 | $ | 3,861 | ||||||||
Net income |
$ | 1,115 | $ | 643 | $ | 1,713 | $ | 1,232 | ||||||||
Provision for income taxes |
808 | 466 | 1,241 | 892 | ||||||||||||
Depreciation and amortization |
391 | 528 | 767 | 998 | ||||||||||||
Relocation expense |
| | | 211 | ||||||||||||
Interest expense |
102 | 170 | 236 | 383 | ||||||||||||
Other expense-net |
20 | 81 | 50 | 145 | ||||||||||||
Adjusted EBITDA |
$ | 2,436 | $ | 1,888 | $ | 4,007 | $ | 3,861 | ||||||||
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