Air Industries Group (AIRI)

[I-Man]

First Quarter Fiscal 2018 Highlights From Continuing Operations

-- Consolidated net sales were $12.24 million in the First Quarter of 2018 and were similar to prior year's comparative results of $12.26 million (excluding sales related to AMK which was sold in the First Quarter of 2017). This reflects an increase in sales at Complex Machining offset slightly by a decrease at Sterling.

-- Consolidated gross profit from operations was $2.0 million which represents a decrease of $0.52 million as compared to First Quarter of fiscal 2018. This decrease was primarily the result of a difference in the product mix of sales from Complex Machining partially offset by cost reduction and productivity initiatives that were successfully completed. The Company's cost reductions will continue throughout Fiscal 2017.

-- Operating expenses were $2.62 million or a slight increase compared to $2.46 million achieved in fiscal 2017 First Quarter.

-- Adjusted EBITDA from continuing operating operations was $0.236 million reflecting the successful steps the Company has taken on its path to profitability. Adjusted EBITDA is a non-GAAP financial measure which is reconciled to the most directly comparable GAAP financial measure.

-- Funded Backlog was $101 million.

-- Liquidity continues to improve as Management diligently manages working capital in order to execute on Backlog and focus on profitability.

New management remains focused on meeting customer needs and profitability and continues to believe in continuing quarterly improvements in Adjusted EBITDA through fiscal 2018.

Mr. Lou Melluzzo, CEO of Air Industries said, "We continue to execute on our existing Backlog, managing working capital, increasing our inventory turnover, improving operating efficiencies, reducing costs, and delivering for our customers."