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EX-99.2 - EX-99.2 - Wesco Aircraft Holdings, Inca12-3542_1ex99d2.htm
8-K - 8-K - Wesco Aircraft Holdings, Inca12-3542_18k.htm

Exhibit 99.1

 

Wesco Aircraft Holdings Reports Results for Fiscal First Quarter 2012

 

VALENCIA, CA, January 26, 2012 — Wesco Aircraft Holdings, Inc. (NYSE: WAIR), a leading provider of comprehensive supply chain management services to the global aerospace industry, today announced results for its fiscal first quarter ended December 31, 2011.

 

Highlights

 

·                  Revenue of $192.6 million, a company record, up 11% compared to $173.5 million in the first quarter of 2011

·                  Adjusted EBITDA of $47.4 million, up 8% compared to $44.1 million in the first quarter of 2011

·                  Adjusted Diluted EPS of $0.26, compared to $0.25 in the first quarter of 2011

 

Fiscal 2012 First Quarter Results

 

Revenue for the first fiscal quarter was $192.6 million, another quarterly record and an increase of 11.0% compared to $173.5 million in the prior year period.  Wesco again demonstrated strong international growth during the quarter with revenues in the Rest of World segment increasing by 29.7% compared to the prior year.  In the first quarter, Ad hoc, JIT and LTA sales as a percentage of net sales represented 35%, 31% and 34%, respectively, compared to 38%, 33% and 29%, respectively, for the same period last year.

 

Adjusted EBITDA for the first quarter was $47.4 million as compared to $44.1 million in the first quarter of 2011.  The increase was due primarily to the growth in sales, partially offset by higher selling, general and administrative expenses.  Net income for the first quarter of fiscal 2012 was $23.2 million, resulting in Diluted Earnings Per Share (EPS) of $0.24.  This compared to $21.7 million, or $0.23 per share in the prior year period. Adjusted Net Income was $24.3 million, resulting in Adjusted Diluted Earnings Per Share of $0.26, compared to $23.0 million, or $0.25 per share in the prior year period.

 

Randy Snyder, Wesco’s Chairman, President, and Chief Executive Officer said, “Our ability to achieve double digit organic revenue growth in this environment is a reflection of the people, processes and systems we have developed and our commitment to delivering quality parts to our customers on-time. We are very pleased with our first quarter results and believe we are well-positioned for continued success throughout the remainder of the year.”

 

The Company generated $24.7 million of free cash flow and paid down $25.0 million of long term debt during the fiscal first quarter of 2012.

 



 

Financial Outlook

 

Wesco is reiterating its full year fiscal 2012 guidance for revenues of between $760 million and $785 million, representing a growth rate of 7% to 10% over 2011 results.  Diluted EPS and Adjusted Diluted EPS are expected to be in the range of $0.98 to $1.02, and $1.03 to $1.07, respectively.  These EPS estimates are based on estimated 2012 fiscal year averages of 92.6 million basic shares and 95.8 million diluted shares.

 

Conference Call Information

 

The Company will hold a conference call to discuss     its first quarter 2012 results at 5:00 p.m. EDT this afternoon. A live webcast of the call and accompanying slides may be accessed over the Internet from the Company’s website at www.wescoair.com under “Investor Relations.” Participants should follow the instructions provided on the website to download and install the necessary audio applications. The conference call also is available by dialing 866-804-6923 (domestic) or 1-857-350-1669 (international) and entering passcode 21768544.  Participants should ask for the Wesco Aircraft Holdings fourth quarter conference call.

 

A replay of the live conference call will be available approximately one hour after the call.  The replay will be available on the Company’s website or by dialing 1-888-286-8010 (domestic) or 1- 617-801-6888 (international) and entering the replay passcode 35235348.  The telephonic replay will be available until Thursday, February 2, 2012.

 

About Wesco Aircraft

 

Wesco Aircraft is one of the world’s largest distributors and providers of comprehensive supply chain management services to the global aerospace industry. The Company’s services range from traditional distribution to the management of supplier relationships, quality assurance, kitting, just-in-time delivery and point-of-use inventory management.  The Company believes it offers the world’s broadest inventory of aerospace parts, comprised of approximately 475,000 different stock keeping units, including hardware, bearings, tools, electronic components and machined parts. Wesco Aircraft has more than 1,000 employees across 30 locations in 10 countries.

 

Contact Information:

Richard Zubek

Investor Relations

661-802-5078

InvestorRelations@wescoair.com

 

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Non-GAAP Financial Information

 

‘‘Adjusted Net Income’’ represents Net Income before: (i) amortization of intangible assets, (ii) amortization or write-off of deferred financing costs and original issue discount, or OID, (iii) Carlyle Acquisition related non-cash stock-based compensation expense, (iv) unusual or non-recurring items and (v) the tax effect of items (i) through (iv) above calculated using an assumed effective tax rate.

 

“Adjusted Basic EPS” represents Basic EPS calculated using Adjusted Net Income as opposed to Net Income.

 

“Adjusted Diluted EPS” represents diluted EPS calculated using Adjusted Net Income as opposed to Net Income.

 

‘‘Adjusted EBITDA’’ represents net income before: (i) income tax provision, (ii) net interest expense, (iii) depreciation and amortization, (iv) Carlyle Acquisition related non-cash stock-based compensation expense and (v) unusual or non-recurring items.

 

Wesco utilizes and discusses Adjusted Net Income, Adjusted Basic EPS, Adjusted Diluted EPS and Adjusted EBITDA, which are non-GAAP measures our management uses to evaluate our business, because we believe they assist investors and analysts in comparing our performance across reporting periods on a consistent basis by excluding items that we do not believe are indicative of our core operating performance. We believe these metrics are used in the financial community, and we present these metrics to enhance investors’ understanding of our operating performance and cash flow. You should not consider Adjusted EBITDA and Adjusted Net Income as an alternative to Net Income, determined in accordance with GAAP, as an indicator of operating performance, or as an alternative to net cash provided by operating activities, determined in accordance with GAAP, as an indicator of our cash flow. Adjusted Net Income, Adjusted Basic EPS, Adjusted Diluted EPS and Adjusted EBITDA are not measurements of financial performance under GAAP, and these metrics may not be comparable to similarly titled measures of other companies. See below for a reconciliation of Adjusted Net Income, Adjusted Basic EPS, Adjusted Diluted EPS and Adjusted EBITDA to the most directly comparable financial measures calculated and presented in accordance with GAAP.

 

Forward Looking Statements

 

Certain information in this news release contains forward-looking statements with respect to the Company’s financial condition, results of operations or business or its expectations or beliefs concerning future events. Such forward-looking statements include the discussions of the Company’s business strategies and the Company’s expectations concerning future operations, revenues, earnings per share, margins, profitability, liquidity and capital resources. In some cases, you can identify forward-looking statements by terminology such as “guidance,” “may,” “will,” “could,” “should,” “forecasts,” “expects,” “intends,” “plans,” “anticipates,” “projects,” “outlook,” “believes,” “estimates,” “predicts,” “potential,” “continue,” “preliminary,” or the

 

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negative of these terms or other comparable terminology. Although the Company believes that such forward-looking statements are reasonable, it cannot assure you that any forward-looking statements will prove to be correct. Such forward-looking statements involve risks, uncertainties, estimates and assumptions that may cause the Company’s actual results, performance or achievements to be materially different than those set forth in this news release. Additional information relating to factors that may cause actual results to differ from the Company’s forward-looking statements can be found in the Company’s filings with the Securities and Exchange Commission, including the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2011. The Company undertakes no obligation to update or revise forward-looking statements after the day of the release as a result of new information, future events or developments except as required by law.

 

Exhibits:

 

Exhibit 1:

 

Consolidated Statements of Income (Unaudited)

Exhibit 2:

 

Condensed Consolidated Balance Sheets (Unaudited)

Exhibit 3:

 

Condensed Consolidated Statements of Cash Flows (Unaudited)

Exhibit 4:

 

Non-GAAP Financial Information (Unaudited)

 

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Exhibit 1

 

Wesco Aircraft Holdings, Inc.

Consolidated Statements of Income (UNAUDITED)

(In thousands, except for per share data)

 

 

 

Three Months Ended

 

 

 

December 31,

 

December 31,

 

 

 

2011

 

2010

 

 

 

 

 

 

 

Net sales

 

$

192,554

 

$

173,528

 

Cost of sales

 

119,282

 

106,829

 

Gross profit

 

73,272

 

66,699

 

Selling, general and administrative expenses

 

28,193

 

25,388

 

Income from operations

 

45,079

 

41,311

 

Interest expense, net

 

(6,514

)

(6,277

)

Other income (expense), net

 

(22

)

516

 

Income before provision for income taxes

 

38,543

 

35,550

 

Provision for income taxes

 

(15,365

)

(13,880

)

Net income

 

$

23,178

 

$

21,670

 

 

 

 

 

 

 

Net income per share:

 

 

 

 

 

Basic

 

$

0.25

 

$

0.24

 

Diluted

 

$

0.24

 

$

0.23

 

 

 

 

 

 

 

Weighted average shares outstanding:

 

 

 

 

 

Basic

 

91,198

 

90,575

 

Diluted

 

94,979

 

92,564

 

 

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Exhibit 2

 

Wesco Aircraft Holdings, Inc.

Condensed Consolidated Balance Sheets (UNAUDITED)

(In thousands)

 

 

 

December 31,

 

September 30,

 

 

 

2011

 

2011

 

 

 

 

 

 

 

Assets

 

 

 

 

 

Cash and cash equivalents

 

$

44,675

 

$

45,525

 

Accounts receivable, net

 

100,020

 

97,289

 

Inventories

 

488,664

 

483,062

 

Other current assets

 

7,858

 

11,740

 

Deferred income taxes

 

39,026

 

39,289

 

Total current assets

 

680,243

 

676,905

 

Long-term assets

 

618,469

 

624,480

 

Total assets

 

$

1,298,712

 

$

1,301,385

 

 

 

 

 

 

 

Liabilities and Stockholders’ Equity

 

 

 

 

 

Accounts payable

 

$

55,195

 

$

53,069

 

Other current liabilities

 

11,200

 

18,664

 

Income taxes payable

 

3,710

 

1,144

 

Capital lease obligations—current portion

 

1,926

 

2,069

 

Total current liabilities

 

72,031

 

74,946

 

Long-term liabilities

 

574,399

 

597,968

 

Total liabilities

 

646,430

 

672,914

 

Total stockholders’ equity

 

652,282

 

628,471

 

Total liabilities and stockholders’ equity

 

$

1,298,712

 

$

1,301,385

 

 

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Exhibit 3

 

Wesco Aircraft Holdings, Inc.

Condensed Consolidated Statements of Cash Flows (UNAUDITED)

(In thousands)

 

 

 

Three Months Ended

 

 

 

December 31,

 

December 31,

 

 

 

2011

 

2010

 

 

 

 

 

 

 

Cash flows from operating activities

 

 

 

 

 

Net income

 

$

23,178

 

$

21,670

 

Adjustments to reconcile net income to net cash provided by operating activities

 

 

 

 

 

Non-cash items

 

5,591

 

3,587

 

Changes in assets and liabilities

 

 

 

 

 

Accounts receivable

 

(3,252

)

(10,522

)

Income taxes receivable

 

5,808

 

47

 

Inventories

 

(5,382

)

(2,475

)

Prepaid expenses and other assets

 

(2,008

)

(1,503

)

Accounts payable

 

2,682

 

(10,192

)

Accrued expenses and other liabilities

 

(6,663

)

(2,813

)

Income taxes payable

 

2,643

 

4,707

 

Net cash provided by operating activities

 

22,597

 

2,506

 

Cash flows from investing activities

 

 

 

 

 

Purchases of property and equipment

 

(644

)

(234

)

Proceeds from sale of equipment

 

2,759

 

 

Net cash provided by (used in) investing activities

 

2,115

 

(234

)

Cash flows from financing activities

 

 

 

 

 

Repayments of long-term debt, net

 

(25,000

)

(14,000

)

Repayment of capital lease obligations

 

(521

)

(387

)

Net cash used in financing activities

 

(25,521

)

(14,387

)

Effect of foreign currency exchange rates on cash and cash equivalents

 

(41

)

(82

)

Net decrease in cash and cash equivalents

 

(850

)

(12,197

)

Cash and cash equivalents, beginning of period

 

45,525

 

39,463

 

Cash and cash equivalents, end of period

 

$

44,675

 

$

27,266

 

 

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Exhibit 4

 

Wesco Aircraft Holdings, Inc.

Non-GAAP Financial Information (UNAUDITED)

(In thousands, except for per share data)

 

 

 

Three Months Ended

 

 

 

December 31,

 

December 31,

 

 

 

2011

 

2010

 

 

 

 

 

 

 

EBITDA & Adjusted EBITDA

 

 

 

 

 

Net income

 

$

23,178

 

$

21,670

 

Provision for income taxes

 

15,365

 

13,880

 

Interest and other, net

 

6,514

 

6,277

 

Depreciation and amortization

 

2,382

 

2,108

 

EBITDA

 

47,439

 

43,935

 

Carlyle Acquisition related non-cash stock-based compensation expense

 

 

176

 

Adjusted EBITDA

 

$

47,439

 

$

44,111

 

 

 

 

 

 

 

Adjusted Net Income

 

 

 

 

 

Net income

 

$

23,178

 

$

21,670

 

Amortization of intangible assets

 

923

 

923

 

Amortization of deferred financing costs

 

998

 

1,072

 

Carlyle Acquisition related non-cash stock-based compensation expense

 

 

176

 

Adjustments for tax effect (assumed rate of 40%)

 

(768

)

(868

)

Adjusted Net Income

 

$

24,331

 

$

22,973

 

 

 

 

 

 

 

Adjusted Basic Earnings Per Share

 

 

 

 

 

Weighted-average number of basic shares outstanding

 

91,198

 

90,575

 

Adjusted Net Income Per Basic Shares

 

$

0.27

 

$

0.25

 

 

 

 

 

 

 

Adjusted Diluted Earnings Per Share

 

 

 

 

 

Weighted-average number of diluted shares outstanding

 

94,979

 

92,564

 

Adjusted Net Income Per Diluted Shares

 

$

0.26

 

$

0.25

 

 

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