Air Industries Group, Inc. (the "Company" or "Air Industries") Announces Financial Results for the Three and Twelve Months

Air Industries Group, Inc. (the "Company" or "Air Industries") Announces 
Financial Results for the Three and Twelve Months Ended
December 31, 2012 
BAY SHORE, NY -- (Marketwire) -- 03/25/13 --  Air Industries Group,
Inc. (OTCBB: AIRI) 
Operating Results for the Year Ended December 31, 2012 and 2011: 
For the year ended December 31, 2012, consolidated net sales were
$64,215,000 an increase of $10,470,000 or 19.5% compared to net sales
of $53,745,000 for the prior year. Net sales at Air Industries
Machining Corp. were $42,075,000 a decrease of $(593,000), or 1% from
$42,668,000 for the prior year. Net sales at Welding Metallurgy, Inc
were $14,907,000 an increase of $3,830,000 or 34.6% from $11,077,000
for the prior year. Net sales at Nassau Tool Works for the period
June 20 through December 31, 2012 were $7,233,000. Air Industries
acquired Nassau Tool Works on June 20, 2012.  
These results for the years ended December 31, 2012 and 2011 are
summarized below: 


 
                                                                            
                              Twelve Months Ended                           
(all amounts in 000's)            December 31,       Change from prior year 
                            ----------------------- ----------------------- 
Net Sales                       2012        2011        in $       as a %   
                            ----------- ----------- -----------  ---------- 
  Air Industries Machining  $    42,075 $    42,668 $      (593)       -1.4%
  Welding Metallurgy Inc.        14,907      11,077       3,830        34.6%
  Nassau Tool Works               7,233           -       7,233         n/m 
                            ----------- ----------- -----------  ---------- 
Consolidated                $    64,215 $    53,745 $    10,470        19.5%
                            =========== =========== ===========  ========== 

 
For the year ended December 31, 2012 consolidated operating income was
$5,984,000, an increase of $1,605,000 or 37% from $4,379,000 for the
prior year. Consolidated net income before tax was $3,995,000 an
increase of $1,691,000 or 73% from $2,304,000 in the prior year.
Consolidated net income was $2,548,000 an in
crease of $301,000, or
13% compared with $2,247,000 for the prior year.  
Earnings per common share were $0.54 a decrease of ($0.09) or (14.0%)
compared with $0.63 for the prior year. Earnings per common share
decreased despite an increase in net income due to the increase in
the number of shares outstanding. Air Industries also exhausted its
Net Operating Loss carry-forward in the first quarter of 2012,
increasing income tax expense for 2012 as compared to 2011. 
These results for the years ended December 31, 2012 and 2011 are
summarized below: 


 
                                                                            
(in 000's except per share data)                                            
                            Twelve Months Ended                             
                                December 31,       Increase over prior year 
                          ----------------------- ------------------------- 
Consolidated:                 2012        2011        in $         as a %   
                          ----------- ----------- ------------  ----------- 
Operating Income          $     5,984 $     4,379 $      1,605         36.7%
Income before Tax               3,995       2,304        1,691         73.4%
Net Income                      2,548       2,247          301         13.4%
Net Income Per Share      $      0.54 $      0.63 $      (0.09)       -14.0%
                          =========== =========== ============  =========== 
                                                                            

 
--  Consolidated gross profit was $14,858,000, or 23.14% of sales for 2012
    compared with $10,928,000 or approximately 20.3% of sales for 2011.
    
    
--  Consolidated operating costs for 2012 were $8,874,000 an increase of
    2,325,000 or 35% compared to $6,549,000 for the prior year.
    Approximately 70% of the increase in operating costs resulted from the
    inclusion of costs of Nassau Tool Works for the full quarter.

  
Operating results for the three months ended December 31, 2012 and
2011: 
For the three months ended December 31, 2012, consolidated net sales
were $17,380,000, an increase of $2,613,000 or 17.7% compared to net
sales of $14,767,000 for the 4th qtr 2011. Net sales at Air
Industries Machining Corp. for the 4th qtr 2012 were $8,761,000, a
decrease of $(2,844,000) or (24.5%) from $11,605,000 for the 4th 
qtr
2011. Net sales at Welding Metallurgy, Inc for the 4th qtr 2012 were
$4,978,000, an increase of $1,816,000 or 57.5% from $3,162,000 for
the 4th qtr 2011. Net sales at Nassau Tool Works for the 4th qtr 2012
were $3,641,000.  
These results for the three months ended December 31, 2012 and 2011
are summarized below: 


 
                                                                            
                              Three Months Ended                            
(all amounts in 000's)           December 31,      Increase over prior year 
                            --------------------- ------------------------- 
Net Sales                      2012       2011        in $         as a %   
                            ---------- ---------- ------------  ----------- 
  Air Industries Machining  $    8,761 $   11,605 $     (2,844)       -24.5%
  Welding Metallurgy Inc.        4,978 $    3,162        1,816         57.5%
  Nassau Tool Works              3,641          -        3,641          n/m 
                            ---------- ---------- ------------  ----------- 
Consolidated                $   17,380 $   14,767 $      2,613         17.7%
                            ========== ========== ============  =========== 

 
For the three months ended December 31, 2012 consolidated operating
income was $1,634,000, an increase of $438,000 or 36.7% from
$1,196,000 for the 4th qtr 2011. Consolidated income before tax for
the 4th qtr 2012 was $1,204,000 an increase of $519,000 or 75.8% from
$685,000 in the 4th qtr 2011. Consolidated net income for the 4th qtr
2012 was $796,000 an increase of $108,000 or 15.8% compared with
$685,000 for the 4th qtr 2011.  
Earnings per common share for the 4th qtr 2012 were $0.14 a decrease
of $(.05) or approximately (26.3%) compared with $0.19 for the 4th
qtr 2011. Earnings per common share decreased despite an increase in
net income due to the increase in the number of shares outstanding as
a result of the Private Placement of shares relating to the
acquisition of Nassau Tool Works and recapitalization of the company.
Air Industries also exhausted its Net Operating Loss carry-forward in
the first quarter of 2012, increasing income tax expense for the 4th
qtr 2012 as compared to the 4th qtr 2011. 
These results for the three months ended December 31, 2012 and 2011
are summarized below:  


 
                                                                            
(in 000's except per share data)                                            
                             Three Months Ended                             
                                December 31,       Increase over prior year 
                          ----------------------- ------------------------- 
Consolidated:                 2012        2011        in $         as a %   
                          ----------- ----------- ------------  ----------- 
Operating Income          $     1,634 $     1,195 $        439         36.7%
Income before Tax               1,204         685          519         75.8%
Net Income                        796         685          108         15.8%
Net Income Per Share      $      0.14 $      0.19 $      (0.05)        26.3%
                          =========== =========== ============  =========== 
                                                                            

 
--  Consolidated gross profit was $4,318,000 for the 4th qtr 2012, or
    approximately 24.8% of sales for the quarter compared with $3,062,000
    or approximately 20.7% of sales for the 4th qtr 2011.
    
    
--  Consolidated operating costs were $2,684,000 for the 4th quarter 2012,
    an increase of $818,000 or 43.8% compared to $1,866,000 for the 4th
    qtr 2011. All of the increase in operating costs resulted from the
    inclusion of Nassau Tool Works costs for the quarter.

  
Balance Sheet Data: 
At December 31 2012: 


 
--  Total Assets were $53,156,000, an increase of $16,175,000 or 43.7%
    from $36,981,000 at December 31, 2011.
--  Total Liabilities were $34,168,000, an increase of $1,853,000 or 5.7%
    from December 31, 2011.
--  Stockholders' Equity was $18,988,000, an increase of $14,322,000 or
    306.9% from $4,666,000 December 31, 2011.

  
The increase in stockholders' equity resulted primarily from the
private placement of common stock in June 2012, together with the
conversion of approximately $5,000,000 in junior subordinated notes.
This accounted for in excess of $11,000,000 of the increase with the
balance of the increase resulting from retained earnings.  
Total debt outstanding at remained relatively constant with at
approximately $23,851,000 outstanding at December 31, 2012, an
increase of $804,000 or 3.4% from $23,047,000 at December 31, 2011.  
Mr. Peter Rettaliata, Chief Executive Officer of Air Industries,
commented: "Air Industries Group had many accomplishments in 2012, in
particular the acquisition of Nassau Tool Works. As we acquired
Nassau Tool Works, Taglich Brothers completed a private placement of
approximately one million shares and facilitated 
the conversion of
most of our Junior Subordinated Notes to common stock. This
transaction increased our stockholders equity significantly and
allowed us to acquire Nassau Tool with only a minor increase in our
total debt outstanding.  
"Our consolidated operating results for the year are very gratifying
as our net income increased to more than $2.5 million. Our pre-tax
income increased more dramatically to nearly $4.0 million more than
73% greater than in 2011. In 2011 and in prior years we were able to
use our Net Operating Loss carry-forwards to offset most of our
taxable income. During 2012 we exhausted these and have higher tax
expense as a result.  
"Like many defense contractors we are concerned about the Defense
budget and the recent sequester imposed by the Government. We have
already seen some negative effects at our Air Industries Machining
subsidiary which we believe were in anticipation of the sequester. We
have not as yet seen any noticeable effects at either Welding
Metallurgy or at Nassau Tool. While we believe that our Company is
well positioned on aircraft platforms and programs that will be
largely sheltered from the effects of spending reductions, we do
expect that our customers will continue to be cautious about placing
orders.  
"Our goals for 2013 include: 


 
--  continuing the integration of Nassau Tool Works and rationalizing our
    production between it and Air Industries Machining,
--  continuing the growth and expansion of Welding Metallurgy, expanding
    its presence in aero-structures, and,
--  investigating potential acquisition candidates to expand our product
    offerings and capabilities.

  
"Despite the challenges imposed by the uncertain budgetary environment
we are confident of our long-term growth and continued
profitability." 
ABOUT AIR INDUSTRIES GROUP, INC.  
Air Industries Group, Inc. (OTCBB: AIRI) is an integrated
manufacturer of precision equipment assemblies and components for
leading aerospace and defense prime contractors. Air Industries
designs and manufactures flight critical products including flight
safety parts, landing gear and components, arresting gear, flight
controls, sheet metal fabrications and ground support equipment.  
Certain matters discussed in this press release are 'forward-looking
statements' intended to qualify for the safe harbor from liability
established by the Private Securities Litigation Reform Act of 1995.
In particular, the Company's statements regarding trends in the
marketplace, the ability to realize firm backlog and projected
backlog, potential future results and acquisitions, are examples of
such forward-looking statements. The forward-looking statements are
subject to numerous risks and uncertainties, including, but not
limited to, the timing of projects due to variability in size, scope
and duration, the inherent discrepancy in actual results from
estimates, projections and forecasts made by management, regulatory
delays, changes in government funding and budgets, and other factors,
including general economic conditions, not within the Company's
control The factors discussed herein and expressed from time to time
in the Company's filings with the Securities and Exchange Commission
could cause actual results and developments to be materially
different from those expressed in or implied by such statements. The
forward-looking statements are made only as of the date of this press
release and the Company undertakes no obligation to publicly update
such forward-looking statements to reflect subsequent events or
circumstances. 
Air Industries Group, Inc.
631.881.4913
ir@airindustriesgroup.com 
 
 
Press spacebar to pause and continue. Press esc to stop.