TULSA, Okla., May 15 /PRNewswire-FirstCall/ -- Limco-Piedmont today announced that revenues for the three months ended March 31, 2009 were $14.1 million, a decrease of $3.0 million from $17.1 million for the same period last year. This decrease is primarily attributable to a decline in the aerospace industry and to operational issues incurred at our Tulsa facility.
Revenues from our two segments for the three months period ending March 31, 2009 were as follows:
Three Months Ended March 31, 2009 2008 Revenues Revenues (Revenues in thousands) Revenues: MRO services $11,484 $12,985 Parts services 2,637 4,135 Total revenues $14,121 $17,120
Our operating income decreased by $1.7 million to a loss position of $262,000 for the three months ending March 31, 2009 from $1,405,000 for the three months ended March 31, 2008. The decrease is attributable primarily to lower sales volumes, the relatively fixed nature of labor and other operating costs, as well as to approximately $284,000 of relocation expenses consisting of accrued severance, training costs, and building rental of the new facility.
We ended the quarter with $10.3 million in cash and cash equivalents, and $22.3 million in short-term investments.
Bob Koch and Ehud Netivi, our Co-Chief Executive Officers, commented, "Our revenues for the first quarter revealed a continued weakness in the aerospace industry and the general economic conditions. Operational issues at our Limco Airepair subsidiary also adversely effected the quarter. We have seen some improvement in expense reduction, but expect additional relocation costs as the move of our facility progresses. At Piedmont, we are continuing to experience revenue pressures in the APU and parts segment. Our propeller and landing gear products improved slightly, but were not sufficient to offset the softness in the APU and parts segments."
Dr. Shmuel Fledel, our Chairman of the Board, concluded by saying, "In-light of the weakness in the markets, we have been experiencing a decrease in our revenues and gross margins. We are taking aggressive expense control measures, including the consolidation of our two US based operating entities into one location, in order to improve the results of operations in the future."
About Linco-Piedmont Inc.
Limco-Piedmont Inc. provides maintenance, repair and overhaul, or MRO, services and parts supply services to the aerospace industry. Our FAA certified repair stations provide aircraft component MRO services for airlines, air cargo carriers, maintenance service centers and the military. We specialize in MRO services for components of aircraft, such as heat transfer components, auxiliary power units, or APUs, propellers, landing gear and pneumatic ducting. In conjunction with our MRO services we are also an original equipment manufacturer, or OEM, of heat transfer equipment for airplane manufacturers and other selected related products. Our parts services division offers inventory management and parts services for commercial, regional and charter airlines and business aircraft owners.
Safe Harbor for Forward-Looking Statements
This press release contains forward-looking statements that are subject to risks and uncertainties. Factors that could cause actual results to differ materially from these forward-looking statements include, but are not limited to, general business conditions in the airline industry, changes in demand for our services and products, the timing and amount of cancellation of orders, the price and continuity of supply of component parts used in our operations, and other risks detailed from time to time in Limco-Piedmont's filings with the Securities Exchange Commission, including its Annual Report on Form 10-K. These documents contain and identify other important factors that could cause actual results to differ materially from those contained in our projections or forward-looking statements. Stockholders and other readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. We undertake no obligation to update publicly or revise any forward-looking statement.
LIMCO-PIEDMONT INC. AND SUBSIDIARIES UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except per share data) March 31, December 31, 2009 2008 ASSETS Current Assets: Cash and cash equivalents $10,311 $21,336 Marketable securities 22,309 11,300 Accounts receivable (net of allowance for doubtful accounts of $97 and $79 at March 31, 2009 and December 31, 2008, respectively) 10,396 11,820 Inventories 19,645 18,978 Other accounts receivable and prepaid expenses 1,433 1,326 Total current assets 64,094 64,760 Property, plant and equipment, net 5,919 6,023 Intangible assets, net 1,329 1,383 Goodwill 4,780 4,780 Total assets $76,122 $76,946 LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities: Accounts payables $4,677 $5,378 Parent company payables 2,925 2,341 Other accounts payable and accrued expenses 1,023 1,764 Total current liabilities 8,625 9,483 Long-Term Liabilities: Deferred income taxes 836 835 Total liabilities 9,461 10,318 Shareholders' Equity: Common stock, $0.01 par value; 25,000 shares authorized, 13,205 shares issued and outstanding at March 31, 2009 and December 31, 2008 132 132 Additional paid-in capital 49,469 49,179 Retained earnings 17,266 17,462 Accumulated other comprehensive loss -206 -145 Total shareholders' equity 66,661 66,628 Total liabilities and shareholders' equity $76,122 $76,946 LIMCO-PIEDMONT INC. AND SUBSIDIARIES UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share data) Three months ended March 31, 2009 2008 Revenue MRO services $11,484 $12,985 Parts services 2,637 4,135 Total revenue 14,121 17,120 Cost and operating expenses MRO services 9,493 9,624 Parts services 2,040 3,306 Selling and marketing 571 666 General and administrative 1,941 2,010 Relocation expenses 284 - Amortization of intangibles 54 109 Operating income (loss) -262 1,405 Other income (expense) Interest income 151 293 Other income (expense) - -118 151 175 Total other income (expense) Income (loss) before taxes -111 1,580 Provision for income taxes 85 577 Net income (loss) ($196) $1,003 Basic net income (loss) per share ($0.01) $0.08 Diluted net income (loss) per share ($0.01) $0.08 Basic shares outstanding 13,205 13,205 Diluted shares outstanding 13,205 13,207
Limco-Piedmont
CONTACT: Mary Dowdy, +1-918-445-4331
