Air Industries Group, Inc. (the "Company" or "Air Industries") Announces Results for the Third Quarter and Nine Months Ended

Air Industries Group, Inc. (the "Company" or "Air Industries") Announces 
Results for the Third Quarter and Nine Months Ended
September 30, 2013 
BAY SHORE, NY -- (Marketwired) -- 11/11/13 --  Air Industries Group,
Inc. (NYSE MKT: AIRI) 
Financial Results for the nine months ended September 30, 2013 and
2012: 
For the nine months ended September 30, 2013, consolidated net sales
were $45,016,000, a decrease of $(1,819,000) or (4%) compared to net
sales of $46,835,000 for the prior year. Net sales at Air Industries
Machining Corp were $25,528,000, a decrease of $(7,786,000), or (23%)
from $33,314,000 for the prior year. Sales at Air Industries
Machining have declined due to reductions in defense procurement. Net
sales at Welding Metallurgy, Inc were $10,246,000, an increase of
$317,000 or 3% from $9,929,000 for the prior year. Net sales at
Nassau Tool Works were $9,242,000 compared to $3,592,000 for the
period of June 20 through September 30, 2012. We completed the Nassau
Tool Works ("NTW") acquisition on June 20, 2012, and the financial
results of its operations are included in our financial results from
that day forward. 
Net sales for the nine months ended September 30, 2013 and 2012 are
summarized below: 


 
                                                                            
                                      Nine Months Ended                     
(all amounts in 000's)                  September 30,     versus prior year 
                                    --------------------- ----------------- 
Net Sales                              2013       2012      in $     as a % 
                                    ---------- ---------- --------  ------- 
  Air Industries Machining          $   25,528 $   33,314 $ (7,786)     -23%
  Welding Metallurgy Inc.               10,246      9,929      317        3%
  Nassau Tool Works                      9,242      3,592    5,650      n/m 
                                    ---------- ---------- --------  ------- 
Consolidated                        $   45,016 $   46,835 $ (1,819)      -4%
                                    ========== ========== ========  ======= 

 
For the nine months ended September 30, 2013, consolidated operating
income was $3,287,000, a decrease of $(1,063,000) or (24%) from
$4,350,000 for the prior year. Consolidated income before tax was
$2,163,000, a decrease of $(628,000) or (23%) from $2,791,000 in the
prior year. Consolidated net income was $3,039,000, an increase of
$1,284,000 or 73% compared with $1,755,000 for the prior year.  
Diluted earnings per common share were $0.52, an increase of $0.12 or
30% compared with $0.40 for the prior year.  
The results for the nine months ended September 30, 2013 and 2012 are
summarized below: 


 
                                                                            
(in 000's except per share data)                                            
                                      Nine Months Ended                     
                                        September 30,     versus prior year 
                                    --------------------- ----------------- 
Consolidated:                          2013       2012      in $     as a % 
                                    ---------- ---------- --------  ------- 
Operating Income                    $    3,287 $    4,350 $ (1,063)     -24%
Income before Tax                        2,163      2,791     (628)     -23%
Net Income                               3,039      1,755    1,284       73%
EPS - diluted                       $     0.52 $     0.40 $   0.12       30%
                                    ========== ========== ========  ======= 
                                                                            

 
--  Consolidated Gross profit was $11,020,000, or 24% of sales for 2013
    compared with $10,540,000 or approximately 23% of sales for 2012. For
    interim reporting periods, gross profit is estimated. As each of the
    Company's subsidiaries has a different gross margin, variation in
    revenue of subsidiaries can affect consolidated gross margin.
    
    
--  Consolidated Operating costs were $7,733,000, an increase of
    $1,543,000 or 25% compared to $6,190,000 for the prior year. The
    increase results in part from the inclusion of approximately
    $1,300,000 of operating costs at NTW for the first nine months of
    2013.

  
At September 30, 2013, the Company determined that it no longer needed
to provide a valuation allowance on certain deferred tax assets. This
was based upon the fact that management believes that due to the
sustained profitability by the Company and the probability that such
profitability will continue, the realizability of the net deferred
tax assets is more likely than not to be realized. As a result,
income tax expense for the nine months was reduced by $1,625,000. For
the nine months, income tax benefit totaled $876,000.  
Financial Results for the three months ended September 30, 2013 and
2012: 
For the three months ended September 30, 2013, consolidated net sales
were $16,052,000, an increase of $494,000 or 3% compared to net sales
of $15,558,000 for the prior year. Net sales at Air Industries
Machining Corp were $9,863,000, an increase of $276,000 or 3% from
$9,587,000 for the prior year. Net sales at Welding Metallurgy, Inc
were $3,800,000, an increase of $909,000 or 31% from $2,891,000 for
the prior year. Net sales at Nassau Tool Works were $2,389,000, a
decrease of $(691,000) or (22%) compared to $3,080,000 for the prior
year.  
Net sales for the three months ended September 30, 2013 and 2012 are
summarized below: 


 
                                                                            
                                      Three Months Ended                    
(all amounts in 000's)                  September 30,     versus prior year 
                                    --------------------- ----------------- 
Net Sales                              2013       2012      in $     as a % 
                                    ---------- ---------- --------  ------- 
  Air Industries Machining          $    9,863 $    9,587 $    276        3%
  Welding Metallurgy Inc.                3,800      2,891      909       31%
  Nassau Tool Works                      2,389      3,080     (691)     -22%
                                    ---------- ---------- --------  ------- 
Consolidated                        $   16,052 $   15,558 $    494        3%
                                    ========== ========== ========  ======= 

 
For the three months ended September 30, 2013 consolidated operating
income was $1,031,000, a decrease of $(424,000) or (29%) from
$1,455,000 for the prior year. Consolidated income before tax was
$739,000, a decrease of $(262,000) or (26%) from $1,001,000 in the
prior year. Consolidated net income was $2,534,000, an increase of
$1,920,000 or 313% compared with $614,000 for the prior year.  
Diluted earnings per common share were $0.43, an increase of $0.32 or
approximately 291% compared with $0.11 for the prior year.  
The results for the three months ended September 30, 2013 and 2012
are summarized below: 


 
                                                                            
(in 000's except per share data)                                            
                                      Three Months Ended                    
                                        September 30,     versus prior year 
                                    --------------------- ----------------- 
Consolidated:                          2013       2012      in $     as a % 
                                    ---------- ---------- --------  ------- 
Operating Income                    $    1,031 $    1,455 $   (424)     -29%
Income before Tax                          739      1,001     (262)     -26%
Net Income                               2,534        614    1,920      313%
EPS - diluted                       $     0.43 $     0.11 $   0.32      291%
                                    ========== ========== ========  ======= 
                                                                            

 
--  Consolidated Gross profit was $3,743,000, or approximately 23% of
    sales for 2013 compared with $3,834,000 or approximately 25% of sales
    for 2012.
    
    
--  Consolidated Operating costs were $2,712,000, an increase of $333,000
    or 14% compared to $2,379,000 for the prior year.

  
At September 30, 2013, the Company determined that it no longer needed
to provide a valuation allowance on certain deferred tax assets. This
was based upon the fact that management believes that due to the
sustained profitability by the Company and the probability that such
profitability will continue, the realizability of the net deferred
tax assets is more likely than not to be realized. As a result,
income tax expense for the three months was reduced by $1,625,000.
For the three months, income tax benefit totaled $1,795,000.  
Mr. Peter Rettaliata, Chief Executive Officer of Air Industries Group
commented: "Air Industries business is heavily weighted towards
military aerospace, the reduction in military procurement -- commonly
called Sequestration -- is a fact in our business and will likely
remain so for the foreseeable future.  
"As a result our revenue, particularly at our Air Industries
Machining subsidiary, has declined in 2013. This reduction began in
the second half of 2012. For the third quarter of 2013, Air
Industries Machining revenues have modestly increased both compared
to the prior year and to the first two quarters of this year. We are
also hopeful that Air Industries Machining revenues will increase in
2014. Our order backlog for 2014 is stronger today than it was last
year at this time. We believe that the situation has stabilized,
albeit at lower levels than we would like. 
"We are responding by redoubling our marketing efforts with an
increased focus on the commercial aerospace sector and searching for
opportunities for accretive acquisitions that offer a strategic
'multiplier effect' of adding additional capabilities which can then
be marketed to existing and new customers. 
"On November 4th we announced a $27 Million multi-year commercial
aerospace contract. This contract win from a new customer and for a
new commercial jet engine was very gratifying.  
"On July 1st we acquired Decimal Industries whose operations will be
consolidated into our Welding Metallurgy's Hauppauge facility. And as
previously announced on November 6th we acquired Miller Stuart Inc.,
a manufacturer of aerospace avionics, harness and cable assemblies,
electronic equipment components whose customers include major
aircraft manufacturers and the US Military. Miller Stuart will be
operated as a separate subsidiary of Air Industries." 
As previously announce Air Industries will host a conference call on
Tuesday, November 12, 2013 at 11:00a.m. ET. Shareholders and other
interested parties can participate by dialing in to the following
numbers: 
Toll Free (US & Canada)    888-438-5491
 International Toll   
719-457-2628 
Access Code    86 79 788 
The Company uses EBITDA as a supplemental liquidity measure because
management finds it useful to understand and evaluate results,
excluding the impact of non-cash depreciation and amortization
charges, stock based compensation expenses, and nonrecurring expenses
and outlays, prior to consideration of the impact of other potential
sources and uses of cash, such as working capital items. This
calculation may differ in method of calculation from similarly titled
measures used by other companies. 
ABOUT AIR INDUSTRIES GROUP, INC.  
Air Industries Group, Inc. (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, its belief that the slowdown caused by the Sequester
will reverse in the 2nd half of 2013, 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. 
Contact Information 
Air Industries Group, Inc.
631.881.4913
ir@airindustriesgroup.com 
 
 
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