0-24293
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43-1309065
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(Commission File Number)
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(IRS Employer Identification No.)
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411 Fountain Lakes Blvd.
St. Charles, MO
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63301
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(Address of Principal Executive Offices)
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(Zip Code)
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¨
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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¨
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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¨
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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¨
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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ExhibitNo.
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Description
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99.1
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Text of press release issued by the Company dated August 8, 2011.
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LMI AEROSPACE, INC.
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By:
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/s/ Lawrence E. Dickinson
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Lawrence E. Dickinson
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Vice President, Chief Financial Officer and Secretary
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Exhibit
Number
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Description
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Text of press release issued by the Company dated August 8, 2011.
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·
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Sales of $23.1 million in the second quarter of 2011 for the Engineering Services segment compared to $18.0 million in the prior year quarter
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·
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Gross profit in the second quarter of 2011 of 27.5 percent for the Aerostructures segment compared to 26.7 percent in the second quarter of 2010
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·
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Earnings per diluted share of $0.34, including charges net of tax of $0.04 per diluted share for cost growth on the Mitsubishi Regional Jet program and $0.03 per diluted share for non-recurring financing related costs
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Category
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Q2 2011 |
% of
Total
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Q2 2010
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% of
Total
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||||||||||||
($ in millions)
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||||||||||||||||
Large commercial aircraft
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$ | 16.4 | 40.2 | % | $ | 15.2 | 39.8 | % | ||||||||
Corporate and regional aircraft
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12.5 | 30.6 | % | 12.3 | 32.2 | % | ||||||||||
Military
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8.9 | 21.8 | % | 8.1 | 21.2 | % | ||||||||||
Other
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3.0 | 7.4 | % | 2.6 | 6.8 | % | ||||||||||
Total
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$ | 40.8 | 100.0 | % | $ | 38.2 | 100.0 | % |
Category
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Q2 2011 |
% of
Total
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Q2 2010 |
% of
Total
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||||||||||||
($ in millions) | ||||||||||||||||
Large commercial aircraft
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$ | 8.4 | 36.4 | % | $ | 7.7 | 42.8 | % | ||||||||
Corporate and regional aircraft
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6.7 | 29.0 | % | 5.7 | 31.7 | % | ||||||||||
Military
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4.7 | 20.3 | % | 3.9 | 21.6 | % | ||||||||||
Other
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3.3 | 14.3 | % | 0.7 | 3.9 | % | ||||||||||
Total
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$ | 23.1 | 100.0 | % | $ | 18.0 | 100.0 | % |
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·
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Net sales of between $172.0 million and $178.0 million
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·
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Gross profit of between 27.0 percent and 27.8 percent
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·
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SG&A of between $26.0 million and $27.0 million
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·
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Net sales of between $86.0 million and $90.0 million
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·
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Gross profit of between 18.0 percent and 18.8 percent
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·
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SG&A of between $7.8 million and $8.2 million
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LMI Aerospace, Inc.
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||||||||
Condensed Consolidated Balance Sheets
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||||||||
(Amounts in thousands, except share and per share data)
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||||||||
(Unaudited)
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||||||||
June 30,
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December 31,
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|||||||
2011
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2010
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Assets
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Current assets:
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Cash and cash equivalents
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$ | 7,531 | $ | 1,947 | ||||
Trade accounts receivable, net of allowance of $280 at June 30, 2011 and $253 at December 31, 2010
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38,053 | 34,006 | ||||||
Inventories
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48,604 | 45,148 | ||||||
Prepaid expenses and other current assets
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2,113 | 2,729 | ||||||
Deferred income taxes
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3,309 | 3,846 | ||||||
Total current assets
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99,610 | 87,676 | ||||||
Property, plant and equipment, net
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23,372 | 21,346 | ||||||
Goodwill
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49,102 | 49,102 | ||||||
Intangible assets, net
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18,635 | 20,827 | ||||||
Other assets
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558 | 898 | ||||||
Total assets
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$ | 191,277 | $ | 179,849 | ||||
Liabilities and shareholders’ equity
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||||||||
Current liabilities:
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||||||||
Accounts payable
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$ | 10,787 | $ | 7,898 | ||||
Accrued expenses
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10,701 | 11,246 | ||||||
Short-term deferred gain on sale of real estate
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233 | 233 | ||||||
Current installments of long-term debt and capital lease obligations
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93 | 181 | ||||||
Total current liabilities
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21,814 | 19,558 | ||||||
Long-term deferred gain on sale of real estate
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2,957 | 3,073 | ||||||
Long-term debt and capital lease obligations, less current installments
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- | 28 | ||||||
Deferred income taxes
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7,427 | 7,427 | ||||||
Total long-term liabilities
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10,384 | 10,528 | ||||||
Shareholders’ equity:
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||||||||
Common stock, $0.02 par value per share; authorized 28,000,000 shares; issued 12,123,259 and 12,075,030 shares at June 30, 2011 and December 31, 2010, respectively
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242 | 242 | ||||||
Preferred stock, $0.02 par value per share; authorized 2,000,000 shares; none issued at either date
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- | - | ||||||
Additional paid-in capital
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74,295 | 73,440 | ||||||
Treasury stock, at cost, 254,142 shares at June 30, 2011 and 301,772 shares at December 31, 2010
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(1,206 | ) | (1,432 | ) | ||||
Retained earnings
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85,748 | 77,513 | ||||||
Total shareholders’ equity
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159,079 | 149,763 | ||||||
Total liabilities and shareholders’ equity
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$ | 191,277 | $ | 179,849 |
LMI Aerospace, Inc.
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Condensed Consolidated Statements of Income
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||||||||||||||||
(Amounts in thousands, except share and per share data)
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||||||||||||||||
(Unaudited)
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||||||||||||||||
Three Months Ended
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Six Months Ended
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June 30,
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June 30,
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|||||||||||||||
2011
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2010
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2011
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2010
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Sales and service revenue
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Product sales
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$ | 39,044 | $ | 36,657 | $ | 76,398 | $ | 76,901 | ||||||||
Service revenue
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24,304 | 19,288 | 47,849 | 39,459 | ||||||||||||
Net sales
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63,348 | 55,945 | 124,247 | 116,360 | ||||||||||||
Cost of sales and service revenue
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Cost of product sales
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27,857 | 27,030 | 54,506 | 56,546 | ||||||||||||
Cost of service revenue
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20,246 | 15,690 | 39,938 | 32,183 | ||||||||||||
Cost of sales
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48,103 | 42,720 | 94,444 | 88,729 | ||||||||||||
Gross profit
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15,245 | 13,225 | 29,803 | 27,631 | ||||||||||||
Selling, general and administrative expenses
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8,523 | 7,763 | 17,174 | 15,803 | ||||||||||||
Income from operations
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6,722 | 5,462 | 12,629 | 11,828 | ||||||||||||
Other expense:
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Interest expense, net
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(118 | ) | (167 | ) | (255 | ) | (394 | ) | ||||||||
Other, net
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(585 | ) | (41 | ) | (562 | ) | (45 | ) | ||||||||
Total other expense
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(703 | ) | (208 | ) | (817 | ) | (439 | ) | ||||||||
Income before income taxes
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6,019 | 5,254 | 11,812 | 11,389 | ||||||||||||
Provision for income taxes
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2,053 | 1,918 | 3,577 | 4,157 | ||||||||||||
Net income
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$ | 3,966 | $ | 3,336 | $ | 8,235 | $ | 7,232 | ||||||||
Amounts per common share:
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Net income per common share
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$ | 0.34 | $ | 0.29 | $ | 0.71 | $ | 0.63 | ||||||||
Net income per common share assuming dilution
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$ | 0.34 | $ | 0.29 | $ | 0.70 | $ | 0.62 | ||||||||
Weighted average common shares outstanding
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11,548,139 | 11,416,021 | 11,528,776 | 11,393,022 | ||||||||||||
Weighted average dilutive common shares outstanding
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11,747,230 | 11,640,826 | 11,721,361 | 11,603,850 |
LMI Aerospace, Inc.
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Condensed Consolidated Statements of Cash Flows
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||||||||
(Amounts in thousands)
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||||||||
(Unaudited)
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||||||||
Six Months Ended
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||||||||
June 30,
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||||||||
2011
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2010
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Operating activities:
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Net income
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$ | 8,235 | $ | 7,232 | ||||
Adjustments to reconcile net income to net cash provided by operating activities:
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Depreciation and amortization
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3,570 | 3,715 | ||||||
Intangible asset impairment
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1,163 | - | ||||||
Contingent consideration write-off
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(1,235 | ) | - | |||||
Charges for inventory obsolescence and valuation adjustments
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577 | 514 | ||||||
Restricted stock compensation
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558 | 917 | ||||||
Deferred taxes
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537 | 57 | ||||||
Other noncash items
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287 | (192 | ) | |||||
Changes in operating assets and liabilities:
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||||||||
Trade accounts receivable
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(4,077 | ) | 1,228 | |||||
Inventories
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(4,033 | ) | 885 | |||||
Prepaid expenses and other assets
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(17 | ) | 121 | |||||
Current income taxes
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753 | - | ||||||
Accounts payable
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1,889 | 540 | ||||||
Accrued expenses
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1,155 | 2,182 | ||||||
Net cash provided by operating activities
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9,362 | 17,199 | ||||||
Investing activities:
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Additions to property, plant and equipment
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(4,592 | ) | (4,465 | ) | ||||
Other, net
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8 | 11 | ||||||
Net cash used by investing activities
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(4,584 | ) | (4,454 | ) | ||||
Financing activities:
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Principal payments on long-term debt and notes payable
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(116 | ) | (193 | ) | ||||
Advances on revolving line of credit
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- | 13,177 | ||||||
Payments on revolving line of credit
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- | (25,963 | ) | |||||
Changes in outstanding checks in excess of bank deposits
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1,000 | 481 | ||||||
Other, net
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(78 | ) | 51 | |||||
Net cash (used) provided by financing activities
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806 | (12,447 | ) | |||||
Net increase in cash and cash equivalents
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5,584 | 298 | ||||||
Cash and cash equivalents, beginning of year
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1,947 | 31 | ||||||
Cash and cash equivalents, end of quarter
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$ | 7,531 | $ | 329 |
LMI Aerospace, Inc.
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Selected Non-GAAP Disclosures
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(Amounts in thousands)
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(Unaudited)
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Three Months Ended
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Six Months Ended
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|||||||||||||||
June 30,
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June 30,
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|||||||||||||||
2011
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2010
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2011
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2010
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Non-GAAP Financial Information
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Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA)(1): | ||||||||||||||||
Net Income
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$ | 3,966 | $ | 3,336 | $ | 8,235 | $ | 7,232 | ||||||||
Income tax expense
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2,053 | 1,918 | 3,577 | 4,157 | ||||||||||||
Depreciation and amortization
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1,758 | 1,773 | 3,570 | 3,715 | ||||||||||||
Intangible asset impairment
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- | - | 1,163 | - | ||||||||||||
Contingent consideration
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- | - | (1,235 | ) | - | |||||||||||
Stock based compensation
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183 | 450 | 558 | 917 | ||||||||||||
Interest expense, net
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118 | 167 | 255 | 394 | ||||||||||||
Other, net
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585 | 41 | 562 | 45 | ||||||||||||
Adjusted EBITDA
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$ | 8,663 | $ | 7,685 | $ | 16,685 | $ | 16,460 | ||||||||
Free Cash Flow (2):
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Net cash provided by operating activities
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$ | 6,523 | $ | 10,749 | $ | 9,362 | $ | 17,199 | ||||||||
Less:
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Capital expenditures
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(2,975 | ) | (2,914 | ) | (4,592 | ) | (4,465 | ) | ||||||||
Free cash flow
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$ | 3,548 | $ | 7,835 | $ | 4,770 | $ | 12,734 |