Air Industries Group (the "Company" or "Air Industries") Announces

Results for Third Quarter 2015 and Conference Call

HAUPPAUGE, NY--(Marketwired - Nov 12, 2015) - Air Industries Group (NYSE MKT: AIRI)

Air Industries Group (AIRI), an integrated manufacturer of precision equipment assemblies and components for leading aerospace and defense prime contractors, reports financial results for the three and nine months ended September 30, 2015.

"Our third quarter sales of $21 million continued a pattern of significant growth in revenue that began in the second quarter," said Dan Godin, Chief Executive Officer of Air Industries Group, who continued, "We are also very happy to report that our 'legacy businesses' continued to enjoy increases in sales and this recovery accelerated in the third quarter. We anticipate that sales and EBITDA for the fourth quarter will be in the range of $24 to $25 million and $2 to $3 million respectively. While this is not as good as we had hoped, we are making significant investments in our businesses, including structural enhancements to certain facilities, building a strong business development team, upgrading machinery where necessary, and implementing the tools of lean manufacturing. I am confident that these improvements will lead to market expansion and the growth of our 'legacy businesses.' Our businesses have terrific, (if historically under marketed), capabilities that are needed in the market place. In addition, our strategy of buying select, very small companies and transforming them is a good one, with manageable risk and very exciting upside. I am pleased that we were able, in Q3, to make two nice acquisitions late in the quarter, Compac Development Corp, and important new landing gear assets, both of which we expect to be accretive immediately."

Financial Results for the Three Months Ended September 30, 2015:

For the three months ended September 30, 2015:

• Consolidated net sales were $21,076,000, an increase of $5,922,000 or 39.1% compared to consolidated net sales of $15,154,000 for the comparable period last year.
• Consolidated gross profit was $4,178,000, or approximately 19.8% of sales for the three months ended September 30, 2015 compared to $3,557,000 or approximately 23.5% of sales for the comparable period last year.
• Consolidated operating expenses were $4,152,000, an increase of $1,155,000 or 38.5% compared to $2,997,000 for the comparable period last year.

For three months ended September 30, 2015 consolidated operating income was $26,000, a decrease of $(534,000) or (95.4%) from $560,000 for the comparable period last year. Consolidated net income was $337,000, a decrease of $(43,000) or (11.3%) compared with $380,000 for the comparable period last year.