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MUST SEE Last three quarters revenues are 42MILLION that puts a valuation today with no P/E ratio just strait valuation at $9.80 !!! That also doesn't include revs for this quarter which would put it at an even higher PPS!!! This is the best stock in the OTC with out a doubt im holding longer then long on this one.
New people, if you're waiting for pr's it's prob not going to happen. Audited fins are the only info needed here IMO.
I'm in!! Let's get this party going..
PAOS $$$$
If there was ever a ticker to hold long in the OTC it's paos.
PAOS one of my long term holding for dollar+ here. way undervalued
We are.way undervalued here great timing$$$
Thats right its all about the bottom line bro
And what's inside those fins is amazing.
Paos doesn't even need news. Audited fins is all the news anyone needs
It will be great,serious things going on
OH yes this is the best otc stock Ever very hidden gem here! PAOS
2014 BLAST OFF TO DOLLAR LAND $$$$$$$$
We dont need to wait for that, REVS last quarter are 20 million dollars!!!! say WHATTTT the market cap is only 766k !!! WHAT thats only one quarter of revs we are grossly under valued here the float is locked by insiders we could honestly see 10-20 bucks easy no joke no fluff just pure numbers!
NEWS ON PURCHASE ORDER WILL SEND PPS ROARING TO THE MOON!!
People are going to be in for a real treat here! its gonna get crazy PAOS
YOUR LIKE A DINOSAUR HERE BOOM PAOS!!!!
I have a post from 2012 at the top of the list still. Wow
Hands down the most solid ticker in the OTC. Paos
It's coming. Paos
With volume we are going to the moon
All we need is Volume here..
Hidden Gem here! PAOS
ITS SOLID LIKE A ROCK
Awesome stock..
Looking Green bro,little baby
Whats going on here..
Numbers weren't too inspiring!
Large sell off here . Whats going on
Form 10-Q for PRECISION AEROSPACE COMPONENTS, INC.
14-Aug-2013
Quarterly Report
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
FORWARD-LOOKING STATEMENTS
This Form 10-Q contains "forward-looking statements" relating to Precision Aerospace Components, Inc. (the "Company") which represent the Company's current expectations or beliefs including, but not limited to, statements concerning the Company's operations, performance, financial condition and growth. For this purpose, any statements contained in this Form 10-Q that are not statements of historical fact are forward-looking statements. Without limiting the generality of the foregoing, words such as "may", "anticipate", "intend", "could", "estimate" or "continue" or the negative or other comparable terminology are intended to identify forward-looking statements. These statements by their nature involve substantial risks and uncertainties, such as credit losses, dependence on management and key personnel, variability of quarterly results, and the ability of the Company to continue its growth strategy and the Company's competition, certain of which are beyond the Company's control. Should one or more of these risks or uncertainties materialize or should the underlying assumptions prove incorrect, or any of the other risks set out under the caption "Risk Factors" in the Company's 10-K report for the year ended 2012 occur, actual outcomes and results could differ materially from those indicated in the forward-looking statements.
Any forward-looking statement speaks only as of the date on which such statement is made, and the Company undertakes no obligation to update any forward-looking statement or statements to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events. New factors emerge from time to time and it is not possible for management to predict all of such factors, nor can it assess the impact of each such factor on the business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements.
General
The following discussion and analysis should be read in conjunction with the condensed consolidated financial statements, and the notes thereto, included herein. The information contained below includes statements of the Company's or management's beliefs, expectations, hopes, goals and plans that, if not historical, are forward-looking statements subject to certain risks and uncertainties that could cause actual results to differ materially from those anticipated in the forward-looking statements. For a discussion of forward-looking statements, see the information set forth in the Introductory Note to this Quarterly Report under the caption "Forward Looking Statements" which information is incorporated herein by reference.
The condensed consolidated interim financial statements included herein have been prepared, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. The condensed consolidated financial statements and notes are presented as permitted on Form 10-Q and do not contain information included in the Company's annual consolidated statements and notes. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to such rules and regulations, although the Company believes that the disclosures are adequate to make the information presented not misleading. The results for the three and six months ended June 30, 2013 may not be indicative of the results for the entire year.
These statements reflect all adjustments, consisting of normal recurring adjustments, which in the opinion of management, are necessary for fair presentation of the information contained herein.
Plan of Operation and Discussion of Operations
The Company distributes high-quality, predominantly domestically-manufactured, technically complex, nut and bolt products and a proprietary locking washer product that are used primarily for aerospace and military applications and for industrial/commercial applications that require a high level of certified and assured quality.
The Company's operations are carried out through its wholly-owned distribution subsidiaries Aero-Missile Components, Inc. ("Aero-Missile") and Freundlich Supply Company, Inc. ("Freundlich"), both of whom have Stocking Distributor relationships with a number of United States fastener manufacturers and who sell high technology, specially engineered fasteners - nuts and bolts - predominantly to all levels of the aviation industries (original equipment manufacturers, maintenance and repair organizations, and other distributors as well as to the United States Department of Defense ("Department of Defense"). Creative Assembly Systems, Inc. ("Creative Assembly") is a value added distributor of proprietary and specialty fasteners for production, primarily serving the heavy truck, automotive, appliance, and material handling industries and Tiger-Tight Corp. ("Tiger-Tight") the exclusive North American master distributor of the Tiger-Tight locking washer. Tiger-Tight washers are used in demanding vibration applications and the Company believes they have significant advantages in comparison to competitive products. Tiger-Tight products are now available and under evaluation by several major US corporations; they are being used aboard the SpaceX Dragon - the first civilian space craft to dock and return from the International Space Station.
The Company's products are manufactured, by others, to exacting specifications and are made from materials that provide the strength and reliability required for their aerospace and industrial applications.
On May 25, 2012, the Company acquired the assets of Fastener Distribution and Marketing Company, Inc., which included Aero-Missile and Creative Assembly (collectively the "FDMC Acquisition") with a fair value of $8.8 million (pre-tax) for approximately $7.1 million. The Company paid for the acquisition and repaid the existing outstanding credit facility of approximately $1.575 million with a new credit facility consisting of a $2.5 million term loan and a $10 million revolving loan with Newstar Business Credit, LLC (the "NewStar Loans"). The operating results of the FDMC Acquisition businesses are included in the financial results from the date of acquisition. The FDMC Acquisition Businesses are significantly increasing the Company's revenue with related impacts on the cost of revenue and other items in the Company's results of operations, compared to prior periods. The integration of the FDMC Acquisition businesses and the servicing of the acquisition debt will be important drivers of the Company's financial results in future reporting periods.
The acquisition provides the Company numerous benefits, including expanded breadth of product offerings and markets served, coast to coast physical presence, substantially increased depth of management and sales capability and marks a significant event in the Company's development.
The Company is a niche player in the North American fastener industry. The fastener distribution industry is highly fragmented with no single company holding a dominant position. The Company competes with numerous distributors who serve as authorized stocking distributors for the fastener manufacturers in the Company's supplier base.
The Company's Tiger-Tight product is a unique lock washer product that is seeking to gain market acceptance. It has extraordinary holding properties, is reusable and does not destroy the material which it is holding in place. In the coming year, the Company anticipates widespread distribution of Tiger-Tight lock washers under an exclusive distribution agreement providing the Company master distribution rights of the product in North America. The washers, which the Company believes are superior to any competitive product, are now readily available and manufactured in the USA. While the Company carries a full line of washers, special orders can be accommodated.
The Company's subsidiary,Aero Missile, has been named the Master Distributor by SPS Technologies in Jenkintown, Pennsylvania for its FLEXLOC? Locknut product line toward the end of last year; the Company's initial sales of this mature product high market acceptance were slowed due to certain pricing changes which took place as the company started its distribution. The Company is now achieving growing revenues from sales of the FLEXLOC? line which it anticipates will continue as the year progresses.
The FLEXLOC? Locknut is a premium locknut line with Military, Aerospace and Industrial applications. FLEXLOC? locknuts have been designed into challenging joint applications by engineers for over 50 years. The FLEXLOC? line enjoys an unequalled history of success in applications where resistance to severe vibration is required. As a Master Distributor, Aero-Missile Components will service a network of SPS Authorized FLEXLOC? Distributors. The FLEXLOC? Locknut product line is manufactured by SPS Technologies domestically in the United States. FLEXLOC? is a registered trademark of SPS Technologies, a PCC Company.
During the first quarter, the Company opened a warehouse facility in Denton Texas to serve one of its customers. This facility allows the customer to anticipate just in time delivery from the now closely located facility, rather than to be concerned about shipping delays, and will result in additional sales of additional products to the customer, the initial impact during the first quarter and a portion of this quarter was to reduce the Company's sales to the customer as the customer absorbed its safety stock of materials in its inventory. The Company has seen sales return to anticipated levels in the last part of the second quarter.
The Company has also experienced delay in shipment of orders to the Navy Department as a result of its consolidation, and anticipates restoration of these shipments when the facilities are inspected. The inspection is anticipated to occur in the third quarter.
During the third quarter 2013 the Company anticipates starting shipment of a unique sealing product that it has developed in conjunction with one of the major manufacturers and its customer to fulfill specific customer needs. The product should fulfill similar needs with other customers. The product addresses current product offering technical shortfalls by increasing resistance to torque out and providing an optional self-sealing feature.
The Company is a one-stop source for standard, self-locking, semi-special and special nuts, bolts and washers manufactured to several military, aerospace and industrial specifications. The Company maintains an inventory of approximately 44,000 SKUs comprised of approximately 65 million parts of premium quality, brand name fastener products.
The Company, during the first quarter of 2013, completed the last phase of its relocation and consolidation of the activities of its headquarters operations, as well as the operations of its Freundlich Supply Company Inc. and Tiger-Tight Inc. subsidiaries from Staten Island New York to Bensalem, Pennsylvania, at the present location of its Aero-Missile Components Inc. subsidiary. This relocation allows the Company to better serve its customers through the co-location of its broadened inventory and is enabling the Company to realize additional efficiencies from its recent acquisition. As a result of this relocation, the Company is achieving significant and continuing savings from the elimination of the facilities costs associated with its Staten Island location. Additionally, the lower overall tax environment outside of New York City and State is beneficial to the Company.
The Company sells its products pursuant to written purchase orders from its customers. All products are shipped from the Company's warehouses via common carrier.
With the acquisition, the Company's percentage of sales to the Department of Defense, one of two customers who accounted for more than 10 percent of the Company's sales as a percentage of its total sales, was reduced. Sales to two customers totaled greater than 10% during 2013. The United States Department of Defense ("DOD") represented approximately 20% and 18% of the Company's total sales for the three and six months ended June 30, 2013. PACCAR Inc represented approximately 12% and 11% of the Company's total sales for the three and six months ended June 30, 2013. No other customer accounted for greater than 10% of the Company's total sales and the Company has no substantial concentrations of credit risk in its trade receivables.
The Company's sales and gross profit this quarter were above the comparable period last year. This is largely a result of the acquisition which occurred on May 25, 2012, and is reflected in the results of operations from that date. The Company believes that its sales will be increasing in the upcoming months, as new business opportunities mature. While the Company anticipates the economy will show increased growth in the last part of 2013, the defense related segments are anticipated to not show improvement and may exhibit further weakness as adjustment is made to the effects of reduced defense related funding.
Results from Operations for the six and three months ending June 30, 2013
The Company's revenues increased approximately 126% and 68% or $8.0 and $2.9 million for the six and three months to $14.3 and 7.1 million from $6.3 and $4.2 million in the comparable period last year. This is largely a result of the acquisition. The Company believes that its sales will be increasing in the upcoming months, but not until the middle part of the third quarter of 2013, based on discussions which it has had with customers.
Government purchasing has declined during this quarter as the Defense Department has dealt with uncertainties regarding its funding and the Company had raised some of its offering prices to accommodate transient higher goods costs necessitated by required purchases of smaller lots. Longer term, although a reduced Government purchasing schedule will impact sales to manufacturers, the pace of operations of the military and prescribed maintenance schedules are the driving forces behind the consumption of the parts supplied by the Company to the Government and reallocation of inventory investment will generally maintain present government sales levels. Repair and maintenance to equipment no longer immediately required for combat requirements will take an extended time. Additionally possible restrictions of new purchases will mitigate toward additional repair and refurbishment of existing equipment.
The Company's gross profit increased approximately 105% and 53% or $1.9 and $0.6 million for the six and three months to $3.7 and $1.8 million from $1.8 and $1.2 million in the comparable period last year. This is largely a result of the acquisition. The Company believes based on discussions it has had with customers related to sales that its gross profit will improve as 2013 progresses.
The Company's total operating expenses increased 80% and 41% or $1.4 and $0.5 million for the six and three months to $3.2 and $1.6 million from $1.8 and $1.1 million in the comparable period last year. This is largely a result of the acquisition and costs associated with the acquisition.
The Company's accounts receivable have increased by approximately $0.1 million to $3.1 million at June 30, 2013 from $3.0 million at December 31, 2012; this difference is due to mainly to sales and normal deviations in customer payments. The Company's inventory has reduced approximately $0.7 million from June 30, 2013 to December 31, 2012; The Company's inventory does not have any life limitations and is all available for sale.
In conjunction with its acquisition, the Company refinanced its operations. The refinancing included entering into a new $2.5 million term loan, due in May 2015. The Company previously had no long term debt. The term loan, which has interest paid currently, also started being amortized monthly in June 2013. Each of the 24 monthly payments is $104,200. Additionally, the Company entered into a new line of credit and has drawn approximately $0.45 million from December 31, 2012 to March 31, 2013 to substantially provide financing for additional inventory acquisition and reduction in accounts payables. Accounts payable decreased by approximately $0.3 million to $3.3 million from $3.6 million at December 31, 2012.
During April 2013, our primary shareholder and CEO entered into a short term agreement to make a loan to the Company. The outstanding balance for the loan is approximately $0.535 million with a maturity date of October 14, 2013. The loan has a stated interest rate of 10%. These funds were used in order to satisfy certain vendor obligations. The loans are to be collateralized by certain inventory purchases to be held by the shareholder. The inventory will be available to be sold by the Company in the normal course of business. The specific inventory is segregated within the Company's warehouse locations but must be maintained by the Company to meet its specific quality control procedures. All amounts borrowed by the Company are considered loans for accounting purposes and are repayable on demand from available operating funds. These loans are approved by the Company's primary lender, Newstar.
The Company is presently attempting to refinance its debt.
Liquidity
The Company anticipates additional capital expenditures of approximately $0.25 million on plant and equipment as it brings all of its facilities on to the same enterprise software system.
The Company believes that it can meet its financial obligations at its presently contemplated operating levels, even as its growth is constrained by its present financing. However, if the anticipated sales levels are not attained, the Company's availability to access its line of credit would be adversely affected. The Company believes that its present funding is insufficient to enable the Company to accomplish some of its desired sales growth plans. The Company is presently seeking to expand its capital availability which will enable the Company to fully take advantage of sales opportunities presented to it which require the Company to make additional investments in inventory.
The Company believes it can expand its business with its present staff numbers.
Financials; Dec 2012 - March 2013
2013-05-15 10-Q Quarterly report
copied from: http://irdirect.net/paos/sec_filings
Anyone still here? Not a very popular message board, for such a promising
Company.
Let's see how the news in this 8k contributes to the bottom line over time:
Form 8-K for PRECISION AEROSPACE COMPONENTS, INC.
4-Jan-2013
Other Events
Item 8.01 Other Events.
Precision Aerospace Components, Inc. (the "Company") has completed the relocation of its headquarters operations, as well as the operations of its Freundlich Supply Company Inc. and Tiger-Tight Inc. subsidiaries from Staten Island New York to Bensalem, Pennsylvania, at the present location of its Aero-Missile Components Inc. subsidiary.
This relocation allows the Company to better serve its customers through the co-location of a broadened inventory and enables the Company to realize additional efficiencies from its recent acquisition of the assets of Fastener Distribution and Marketing Company, Inc.; these assets included Aero- Missile and Creative Assembly Systems, Inc.
The operations and service provided by Freundlich Supply Company and Tiger Tight Corp. are continuing, unabated, at their new location.
As a result of this relocation, the Company will have significant and continuing savings from the elimination of the facilities and certain personnel costs associated with its Staten Island location. Additionally, the lower overall tax environment outside of New York City and State will be beneficial to the Company.
Well, it seems as though they are leaving 1.4mil of the A pref outstanding (I have no idea why)... So I guess they needed a new class (the "C"'s) to accomodate the folks that needed a change to the "A"'s... But still needed the "A"'s for the holdouts?
Just a guess
The only thing I see is now a pref holder can convert to common and hold more than 4.9% of the stock.
Not sure why that was important to them, but it could be an indicator that "something" is going on.
Good to hear from you buddy. I hope you had a wonderful and safe New Years. I saw that you managed to escape that LPH debacle. I'm glad I have been out of chinese small caps since the CCME days..
-Dan
Me too since I didn't recognize the benefit of doing this alltogether.
I'm still trying to figure out exactly how I feel about this 8k they put out in mid-December:
Item 3.02 Unregistered Sales of Equity Securities.
Amendment to Certificate of Incorporation. On December 11, 2012, Precision Aerospace Components, Inc. (the "Company") amended its Certificate of Incorporation to: (a) reduce the authorized number of shares of its existing Series A Convertible Preferred Stock ("Series A") to 1,400,000 shares from the previously authorized 7,100,000; and (b) authorize 4,825,000 shares of new Series C Convertible Preferred Stock ("Series C"). Neither the Series A nor the Series C have any dividend rights, voting rights, or any specified maturity date.
Description of Amendments to Series A. The principal amendments to the Series A consist of the following:
a. Reduction in the number of shares designated as Series A to 1,400,000;
b. Removal of certain inapplicable provisions;
c. Elimination of Series A holder consent in order to reduce the number of shares of Series A outstanding;
d. Expressly permit the issuance of additional preferred stock, on a pari passu basis;
e. Reduce the requisite percentage required to effect most amendments to the Series A Statement of Designations from 75% to a majority; and
f. Removal of certain liquidated damages provisions that were previously triggered by the Company's failure to deliver common stock upon conversion of any shares of Series A.
Rights of Series C. The rights and obligations of the Series C are the same as the existing Series A in all respects, provided that the Series C shares are fully convertible into shares of the Company's common stock without any limitations on conversation (the Series A contains a restriction limiting a holder's ability to convert the holder's shares of Series A into common stock (subject to some exceptions) to the extent that conversation would result in the holder having beneficial ownership of the Company's common stock in excess of 4.9% of the total number of shares of outstanding Company common stock).
The Series C rank pari-passu with the Series A. Each share of Series C is, subject to adjustments, convertible into 1.554 shares of the Company's common stock. Each share of each of the Series A and Series C has a $00.735 payment preference in the event of liquidation.
Exchange of Series A for Series C by Certain Holders. Simultaneous with the filing of these amendments, the Company and certain holders of the Series A agreed to exchange 4,608,675 shares of the Company's Series A for an equal number of shares (i.e. 4,608,675 shares) of the Company's newly authorized Series C. The Company did not receive any consideration in this exchange (other than receipt of the Series A that was tendered by the holders in the exchange).
The exchange was exempt from registration pursuant to Section 3(a)(9) of the Securities Act since it was an exchange of securities by existing security holders for other securities and for no additional consideration and without paying remuneration for soliciting such exchange.
my free shares look good. >>>>>>>>>>>
PAOS $1+2come federal defense spending surged, mainly because of the sharpest increase in defense spending in more than three years.
US economic growth improves to 2 pct. rate in Q3
US economic growth improves to 2 percent rate in Q3 on higher defense, consumer spending
http://finance.yahoo.com/news/us-economic-growth-improves-2-123154242.html;_ylt=AuleDXbQW5FpFDjNatpVIBeiuYdG;_ylu=X3oDMTN1YXZidDQ0BG1pdANGaW5hbmNlIEZQIE1lZ2F0cm9uIDIEcGtnAzMyNzBhMzY1LTdlY2ItMzhmNy1iNTVlLTlhYjAzNDVhZmQ1OQRwb3MDMQRzZWMDbWVnYXRyb24EdmVyA2RiMmIxMWMwLTFmNmYtMTFlMi1iOWJiLWI2ZjI1YzM2ODBiNg--;_ylg=X3oDMTFpNzk0NjhtBGludGwDdXMEbGFuZwNlbi11cwRwc3RhaWQDBHBzdGNhdANob21lBHB0A3NlY3Rpb25z;_ylv=3
I would not argue with that.
So do I. I had a nice stash too. Congrats to those that held.
PAOS doing very well - I regret selling too soon on this one. Congrats to those still in for bigger gains.
Nice news once again hidden in filings
A sub....AERO-MISSILE COMPONENTS , has been named a Master Distributor by SPS Technologies in Jenkintown, Pennsylvania
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