Air Industries Group Announces Return to Profitability for the September 2019 Quarter, Increases Guidance for 2019 Sales and EBITDA

Air Industries Group (NYSE AMEX: AIRI):

Air Industries Group (“Air Industries” or the “Company”), an integrated manufacturer of precision equipment assemblies and components for leading aerospace and defense prime contractors announced today its results for the three and nine months ended September 30, 2019. Air Industries reports positive net income for the three months and continued significant improvement compared to the same periods in 2018.

Highlights from Continuing Operations for the Three Months Ended September 30, 2019.

• Consolidated net sales for the three months ended September 30, 2019 were $ 14.0 million increasing $ 3.3 million or 30.8% compared to net sales of $10.7 million for the three months in 2018.
• Consolidated gross profit was $ 3.0 million increasing $ 1.6 million or 114.3% compared to $ 1.4 million for the three months in 2018. Gross profit as a percentage of sales increased to 21.4% for 2019 compared to 13.1% in 2018.
• Operating expenses were $ 1.8 million decreasing $ 400,000 or 18.2% compared to $ 2.2 million for the three months in 2018.
• Income from operations was $ 1.2 million increasing nearly $ 2.0 million from an operating loss of $ 800,000 for the three months in 2018.
• Interest and financing costs were $ 835,000 compared to $ 830,000 for the three months in 2018.
• Income from continuing operations was $ 400,000, increasing nearly $ 2.0 million from a loss of $ 1.6 million in 2018.

   

Highlights from Continuing Operations for the Nine Months Ended September 30, 2019.

• Consolidated net sales from continuing operations for the nine months ended September 30, 2019 were $41.2 million increasing $ 7.6 million or 22.6% compared to net sales of $ 33.6 million for the nine months in 2018.
• Consolidated gross profit was $ 7.4 million increasing $ 2.5 million or 51.0% compared to $ 4.9 million for the nine months in 2018. Gross profit as a percentage of sales increased to 18.0% in 2019 compared to 14.6% for 2018.
• Operating expenses were $ 5.8 million decreasing $ 1.0 million or 14.7% compared to $ 6.8 million for the nine months in 2018.
• Income from operations was $ 1.3 million increasing $ 3.3 million compared to an operating loss of $ 2.0 for the nine months in 2018.
• Interest and financing costs were $ 2.8 million compared to $ 2.5 million for the nine months ended in 2018. Cash interest paid for the nine months in 2019 was $1.3 million, compared to $ 1.1 million for the nine months in 2018.
• Adjusted EBITDA for the nine months ended September 30, 2019 was $ 4.6 million. Adjusted EBITDA is a non-GAAP financial measure, which is reconciled to the most directly comparable GAAP financial measure and more fully defined in the table at the end of this press release.

The financial highlights from continuing operations exclude the results of the divesture of Welding Metallurgy Inc. (“WMI”) which occurred in December 2018 and the closure of Eur-Pac and its subsidiary ECC (“Eur-Pac”) which occurred in March 2019. Consolidated GAAP net income for the three months was $ 187,000 and for the nine months the net loss was $ 1,471,000.