GLDS - Air Industries Announces Firm $48 Million Backlog - The Largest in Company History
Jul 11, 2007 10:15:00 AM
Copyright Business Wire 2007
BAY SHORE, N.Y.--(BUSINESS WIRE)--
Air Industries Group, Inc. (OTCBB: GLDS) (formerly Gales Industries) today announced a firm 18-month backlog that was in excess of $48.0 million as of June 30, 2007. This backlog level, which is solely derived from business relating to Air Industry Group's wholly-owned operating subsidiary, Air Industries Machining Corp. (AIM), is the largest in the Company's history. The backlog at June 30th reflects a 29% increase as compared to the prior firm backlog of $37.3 million as of March 31, 2007.
"AIM has capitalized on the internal growth initiatives put into place last year," said Peter Rettaliata, Chief Executive Officer of Air Industries Group. "This progress reflects a diversification of awards from both new and existing customers, for new and follow-on product orders, and from both commercial and defense programs. While our diversification strategy is being implemented throughout the Company, the record backlog reported today is only for one of our operating subsidiaries and does not include contributions from our other acquisition. On a consolidated basis, our current position and future outlook are far stronger than our published backlog and past operating performance indicate. We believe the favorable industry environment and our expanded business platform portend significant future growth for Air Industries Group, something which we are now demonstrating."
The firm backlog at June 30, 2007, represents fully authorized orders for products to be delivered within the next 18 months. Additionally, Air Industry Group's projected backlog, which includes both the firm backlog as well as anticipated order releases, totaled approximately $65 million at June 30, 2007. These figures do not include orders relating to Sigma Metals, which was acquired in April 2007, or the pending acquisition of Welding Metallurgy.
The Company previously announced financial results guidance that includes a consolidation of AIM and Sigma Metals and Welding Metallurgy from their respective dates of acquisition. This guidance was for consolidated run rates by the end of 2007 for revenue within the range of $57 million to $60 million, earnings before interest, taxes, depreciation and amortization ("EBITDA") within the range of $4.5 million to $6.0 million, and net income within the range of $2.0 million to $2.5 million.
Air Industries Group considers EBITDA to be an important financial indicator of the Company's operational strength and performance, and uses this indicator when making decisions regarding investments in the various components of its business and acquisition valuations. Because EBITDA is not a measurement determined in accordance with generally accepted accounting principles ("GAAP"), and is thus susceptible to varying calculations, EBITDA, as presented, may not be directly comparable to other similarly titled measures reported by other companies.
ABOUT AIR INDUSTRIES GROUP, INC.
Air Industries Group, Inc. (OTCBB: GLDS) (formerly Gales Industries) is a holding company established to consolidate manufacturers, engineering integrators and specialized service providers to the aerospace/defense and commercial aviation industries. The Company is focused on flight safety and other critical componentry. Consolidation opportunities include companies operating within highly synergistic disciplines of manufacturing, technical services and strategic products distribution. The Company's strategy is to execute its consolidation principally amongst middle market aerospace/defense subcontractors. Air Industries Group offers a tailored exit strategy or management continuity strategy in exchange for qualified acquisitions, and targets technically superior organizations with revenues of up to $100 million annually. Information on the Company and its products may be found online at www.airindmc.com.
Certain matters discussed in this press release are 'forward-looking statements' intended to qualify for the safe harbors from liability established by the Private Securities Litigation Reform Act of 1995. In particular, the Company's statements regarding trends in the marketplace, firm backlog, projected backlog, potential future results and acquisitions, are examples of such forward-looking statements. The forward-looking statements include risks and uncertainties, including, but not limited to, the timing of projects due to the variability in size, scope and duration of projects, estimates, projections and forecasts made by management with respect to the Company's critical accounting policies, firm backlog, projected backlog, regulatory delays, government funding and budgets, matters pertaining to potential and pending acquisitions subject to and after closings, and other factors, including results of financial audits and general economic conditions, not within the Company's control. Certain of the Company's forward looking statements, with the projected backlog in particular, are formulated based on management's extensive industry experience and understanding and assessment of industry trends, customer requirements, and related government spending. Projected backlog may be subject to variability and may increase or decrease at any time based on a variety of factors, including but not limited to modifications of previously released orders, acceleration of orders under general purchase agreements, etc. 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.
Source: Air Industries Group, Inc.
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Darrow Associates
Inc.
Jordan M. Darrow
631-367-1866
jdarrow@darrowir.com
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