COMPANY DESCRIPTION
Logistical Support Inc is a holding company for group of companies that manufacture, repair, overhaul, design and develop replacement parts for military fixed and rotary wing aircraft. The parts that it services include turbine engines, landing gear, structural components, hydraulics, mechanical systems and ground support equipment. Serviced aircraft include the F-5, F-16 and F-18 fighter planes, the C-130 transport plane, and the UH-1 and UH-60 helicopters. Its primary customer is the U.S. government.
Logistical Support specializes in "flight critical" parts essential to aircraft operations. It is ISO 9001-registered and is fully qualified under military standards. Logistical Support leases two facilities in Chatsworth, Calif. occupying 30,000 square feet.
Logistical Support has been granted a Quality System Certification by the United States military. This certification verifies that the company is in compliance with the military's specifications for quality production of specific parts supplied to the United States military. This certification is recognized and accepted by all of the United States government agencies that the company regularly contracts with. The company is also certified by the Federal Aviation Administration to operate a commercial aircraft repair station. This certification permits the company to produce parts or perform repair and service on commercial aircraft.
The company derives approximately 96% of its revenues from government contracts. Customers include the Department of Defense and various military acquisition organizations including the U.S. Air Force Logistics Material Command, the U.S. Defense Logistics Agency, the U.S. Navy Logistics Agency and other acquisition, supply and repair centers for the U.S. Air Force, U.S. Navy, and the United States Army Aviation and Missile Command. Historically, approximately 70% of the company's government contracts is for parts and 30% is for repair and overhaul services.
STRATEGY
Logistical Support's traditional strategy has been to secure flight critical parts and services contracts offering the highest potential profit in categories where it is most qualified to bid. The company seeks to partner with other defense contractors on large bids requiring substantial financial resources. Management views growth by acquisition as critical in gaining the additional qualifications and experience needed to secure a broader range of government contracts. The company has an excellent quality history.
The consolidation of fairly priced, small- to mid-tier specialty manufacturers across the government contractor market will enable Logistical Support to leverage its certifications and expertise across similar high-margin product lines. Key acquisitions will also enable it to gain entrance into new larger markets, including original equipment manufacturers and foreign governments.
