Air Industries Group Announces Acquisition of Woodbine Products of Deer Park
Long Island and Agreements in Principle for Two Additional
BAY SHORE, NY -- (Marketwired) -- 04/02/14 -- Air Industries Group
(NYSE MKT: AIRI) (Air Industries or the Company) announced today that
it acquired 100% of the stock and the business of Woodbine Products,
Inc. of Deer Park, Long Island, New York, (Woodbine).
Woodbine is a long established Long Island based manufacturer of
aerospace components whose customers include major aircraft component
suppliers. Woodbine specializes in welded and brazed chassis
structures housing electronics in aircraft. Woodbine's products and
customers are very complementary to those of Decimal Industries which
Air Industries acquired in July 2013. Woodbine will become part of
Air Industries' subsidiary, Welding Metallurgy, Inc. (WMI).
The two principals of Woodbine will assist Air Industries in the
transition and its factory in Deer Park has been leased until
December 2014 at which time operations will be transferred to WMI's
facility in Hauppauge NY.
Separately, Air Industries announced that it has reached agreements
in principle to acquire two other companies. One acquisition
candidate is a fabricator of sheet metal components using drop hammer
and hydro-forming machinery located in the Southwestern United
States. This company is currently a supplier of components to WMI.
Its other customers include major aerospace companies, some of which
already do business with members of Air Industries. The other
acquisition target, located in New England, is a logistics company
which aggregates products and assembles kits of equipment for the US
Military and Government.
Mr. Peter Rettaliata, Chief Executive Officer of Air Industries,
commented: "The acquisition of Woodbine Products with its sterling
reputation for quality and performance further enhances our
subsidiary, Welding Metallurgy. Woodbine's products are similar to
those of Decimal Industries and this acquisition expands our product
line. There is some customer overlap, deepening our presence with
these customers and some new customers with whom we can expand our
"This acquisition and the two others on which we have reached
tentative agreements reflect our strategy of growth through
acquisition; capitalizing on the increased pressure to consolidate to
respond to the reality of reduced military spending.
"If we are successful in completing these two additional acquisitions
and there can be no assurance that we will be successful, our
projected pro forma EBITDA for 2014 should be approximately $ 10
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.
For additional information, please call 631.881.4913 or
ABOUT AIR INDUSTRIES GROUP
Air Industries Group (NYSE MKT: AIRI) is an integrated manufacturer
of precision components and provider of supply chain services for the
aerospace and defense industry. The Company has over 50 years of
experience in the industry and has developed leading positions in
several important markets that have significant barriers to entry.
With embedded relationships with many leading aerospace and defense
prime contractors, the Company designs and manufactures structural
parts and assemblies that focus on flight safety, including landing
gear, arresting gear, engine mounts and flight controls. Air
Industries Group also provides sheet metal fabrication, tube bending,
and welding services.
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 projected EBITDA, 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 ability to consummate contemplated
acquisitions, 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
Air Industries Group
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