PMR and Associates, llc Presents Mooney Aerospace Group Overview
SAN DIEGO--(BUSINESS WIRE)--July 29, 2003-- $7.5 Million in New Capital and Order Backlog of 15 Aircraft
Positions Mooney Aerospace Group for Future Growth Mooney Aerospace Group (OTCBB: MASG) is a re-emerging player in the $41 billion general aviation industry. The Company designs, manufactures and distributes its own line of single engine aircraft sold to the general aviation market. The original Mooney company was established in 1947 by Al Mooney and has sold over 10,000 aircraft over the last 50 years. 8,000 planes are still in operation in the U.S. alone. Mooney is known in the industry as a highly reliable high performance single engine plane that maintains its value in the aircraft aftermarket. In 2002 a new management team took over and Mooney Aerospace Group received Federal Aviation Administration (FAA) production and repair certificates for its facility in Texas. The company began producing and shipping aircraft in late 2002 generating revenues in excess of $5 million for the year representing both the sales of new aircraft and parts and service revenues. The company operates out of a 350,000 square foot facility near San Antonio, Texas and employs over 170 people. In the last six months Mooney Aerospace has reached several new milestones and is well positioned to capitalize on the successful completion of a recent financial restructuring and the infusion of $7.5 million in new capital. Since acquiring the assets of the prior Mooney Aircraft Corporation in 2002 the milestones reached include: Creation of a new executive management team; Consolidation of all operations at the Kerrville, Texas manufacturing plant; Introduction of a new plane, the Ovation2 DX; and formation of a sales and marketing division that combines a direct and indirect domestic sales force and reintroduces international sales.
Globally general aviation is a $41 billion industry that is clearly an integral part of our nation's transportation system and economy. The industry generated over $11 billion in new aircraft sales in 2002. US sales figures exceeded $7.8 billion in 2002. Although the sales figures were down from 2001 prior years have set new revenue records. 2002 sales exceeded 1999 figures and the industry has grown three fold from 1996.
Numerous steps are being taken by the industry to stimulate sales including; changes in the tax code which allows accelerated depreciation, promotion of innovative new products, financing incentives, innovative ownership strategies (fractional ownership) and continued support from the state and federal government to provide a atmosphere conducive to growth.
The industry is broken down into four aircraft categories: single engine piston (Mooney's category); multi-engine piston; turboprops and business jets representing over 2500 total aircraft sold in 2002. Single engine piston aircraft lead the way in 2002 with over 1440 aircraft sold worldwide. Industry leaders include Boeing Business Jets (NYSE: BA), Bombardier (Toronto Exchange: BBDa.TO), Cessna (a division of Textron Inc. NYSE: TXT), Cirrus Designs, Dassault, Mooney Aerospace Group (OTCBB: MASG), Gulfstream (a General Dynamics Company NYSE: GD), Maule Air, Piaggio, Pilatus, Beechcraft (a Division of Raytheon Company (NYSE: RTN), Socata and Piper Aircraft (American Capital Strategies Nasdaq: ACAS). Over 214,000 general aviation airplanes are currently flying in the U.S. ranging from two-seat training aircraft to business jets. Industry trade organization include General Aviation Manufacturers Association www.gama.aero, Aircraft Pilots Owners Associations www.apoa.org and National Business Aviation Association www.nbaa.com (Source General Aviation Manufacturers Association 2003 Annual Industry Overview).
MOONEY AEROSPACE MANAGEMENT OVERVIEW
Nelson Happy, CEO, brings to the company a strong legal and executive management background that includes being CEO of Flight International and Capitol Airlines as well as a wealth of experience in the acquisition and turnaround of midsize aviation and energy related companies.
Nicolas Chabbert, Executive Vice President of Sales and Marketing, has extensive general aviation sales and marketing experience including heading the entire European distributor network of EADS Socata and heading the sales and marketing function at US subsidiary Socata Aircraft from 1996-2001.
Geoffrey Soares, CFO of Mooney Airplane Company, has extensive financial and operational management experience with companies in the manufacturing sector, working on improving profitability and establishing the necessary controls. This management team brings the necessary strategic, marketing, and financial skills to build revenue while controlling costs and thereby enhancing profitability.
Bill Eldred, Director of Engineering, has 29 years experience in Military and General Aviation with a focus on avionics and electrical systems. He is a former Chief Aviation Electronics Technician in the U.S. Navy, followed by 5 years as Head of Technical Services with Terra Avionics and 3 years as an Avionics Systems Engineer with Trimble Navigation Ltd. Mr. Eldred has been Manager of Engineering with Mooney since 1998. He is a company and consultant FAA Designated Engineering Representative (DER) in the area of electrical systems and equipment. Mr. Eldred has a BS in Electrical Engineering from Southern Illinois University.
The company has successfully consolidated all of its operations at the approximately 350,000 square foot Mooney factory in Kerrville, Texas. A cost structure has been put in place that allows the company to reach operating break-even at significantly lower production levels than before. The company has continued to expand its work force to approximately 175 experienced personnel. Most of the staff possesses an advanced knowledge of the Mooney airplane, having worked in Kerrville, Texas, for many years. The production department has an adequate workforce in place to achieve the break-even rate and is expected to meet near term production target levels this month.
The Ovation (M20R)
The Mooney Ovation is the ultimate high performance aircraft. Its performance/value equation is unequalled in the single engine, piston powered aircraft industry.
The lineage of legendary Mooney performance is evident in the quality, fit and finish and most importantly performance. The new 2003 Ovation demonstrates Mooney's commitment to continuous improvement. The Ovation continues with the efficient and reliable Teledyne Continental (NYSE: TDY) TCM IO-550-G engine, with 288hp MCP. New for 2003 is the standard Garmin (Nasdaq: GRVM) avionics stack including the award winning GNS 430 GPS/NAV/COM. It also now comes standard with leather seating and has new customer driven option packages.
The Bravo DX (M20M)
Flagship. It invokes images of grandeur, the fastest, the most luxurious and also, it says accomplishment. The Mooney M20M Bravo DX is the flagship of the Mooney fleet of aircraft. Its inter-cooled Lycoming TIO-540-AF1B delivers 270HP all the way to 25,000 feet at speeds up to 220 KTAS, faster than any other single engine production aircraft made today. New for 2003, the Bravo DX moves to a complete Garmin avionics stack including the award winning GNS530/GNS430 combo, the GDL49 Nexrad Uplink, the GTX 330 Mode "S" Transponder, and the premium Bendix King KFC225 Autopilot/Flight Director as standard.
The Bravo DX includes supple six-way adjustable leather seats with comfortable lumbar support, a 115.7 sq. feet oxygen system and Precise Flight speed brakes. Also available is an optional TKS Known System, and an optional, all electric 17,000 BTU air conditioning system.
NEW PRODUCT DEVELOPMENT "OVATION2 DX"
For 2003 the engineering department has succesfully introduced a new airplane, the Ovation2 DX that incorporates a lower flight panel, resulting in improved forward visibility and situational awareness, as well as changes that have positioned the airplane for certification as an all-electric aircraft. The company has also collaborated with Scheme Designs to come up with attractive new paint schemes for the airplane. The Ovation2 DX has received extremely favorable reviews in the trade press. As an example, the June 2003 issue of AOPA Pilot magazine featured the Ovation2 DX on the cover under the heading "Ovation Sensation, Mooney's Latest and Greatest."
For a copy of this Article please see www.aopa.org. Additional industry reviews of Mooney's Aircraft can be found on www.mooney.com under press articles tab.
The Mooney Ovation2 DX is the culmination of taking an award winning airframe/engine combination and making it better. Its Performance/Value equation is absolutely unequaled in today's general aviation market. It quite candidly is the fastest single engine, normally aspirated, piston-powered aircraft available today.
The secret to its improvement is in McCauley Propeller's new, super thin, two-blade propeller, available only on the Ovation2 DX. This enhancement enables a 6 knots (TAS) increase in cruise speed over its predecessor or 192 KTAS at 8,000 feet, with a weight savings of 12 pounds. Cambered on both front and rear surfaces, the high-tech airfoil is remarkably efficient. Combined with the efficient and a reliable TCM IO-550-G engine, you can also expect unparalleled mid-teen cruise performance at altitudes normally reserved for turbocharged aircraft.
New for 2003, the Ovation2 DX moves to a complete Garmin avionics stack including the award winning GNS530/GNS430 combo, the GDL49 Nexrad Uplink, the GTX 330 Mode "S" Transponder, and the premium Bendix King KFC225 Autopilot/Flight Director as standard.
SALES AND MARKETING
The Company has put in place an experienced team of sales representatives that combines an in-house direct sales force as well as an outside team of commissioned based salesmen referred to as Mooney Team Representatives (MTRs). The direct sales force includes people with prior experience selling Mooney airplanes. Three of the current MTR team are prior Mooney aircraft dealers with a track record of selling approximately 30 airplanes per year. The company has also signed up its first international MTR and secured its first international sales order. Customers have placed orders for 15 planes and Mooney will be exhibiting at the Oshkosh, Wisconsin industry trade show AirVentures Oshkosh 2003, July 29th to August 4th.
For More Information please visit the corporate website at www.MOONEY.COM
CONTACT: PMR and Associates, llc for Mooney Aerospace Group
Patrick Rost, 858-350-0409