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, Missouri
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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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Item 2.02.
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Results of Operations and Financial Condition.
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Item 7.01.
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Regulation FD Disclosure.
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Item 9.01.
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Financial Statements and Exhibits.
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(d)
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Exhibits. See the Exhibit Index which is hereby incorporated by reference.
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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 earnings press release issued by the Company dated August 8, 2012.
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Text of TASS acquisition press release issued by the Company dated August 8, 2012.
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Contact:
Ed Dickinson
Chief Financial Officer, 636.916.2150
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Sales of $69.3 million, up 9.5 percent from the second quarter of 2011.
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Income from operations of $8.1 million or 11.7 percent of sales.
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Earnings per diluted share of $0.43.
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Net Sales
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Q2 2012 |
% of Total
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Q2 2011 |
% of Total
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($ in millions)
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Large commercial aircraft
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$ | 18.1 | 41.3 | % | $ | 16.4 | 40.2 | % | ||||||||
Corporate and regional aircraft
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14.9 | 34.0 | % | 12.5 | 30.6 | % | ||||||||||
Military
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8.4 | 19.2 | % | 8.9 | 21.8 | % | ||||||||||
Other
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2.4 | 5.5 | % | 3.0 | 7.4 | % | ||||||||||
Total
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$ | 43.8 | 100.0 | % | $ | 40.8 | 100.0 | % |
Net Sales
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Q2 2012 |
% of Total
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Q2 2011 |
% of Total
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($ in millions)
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Large commercial aircraft
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$ | 6.8 | 26.1 | % | $ | 8.4 | 36.4 | % | ||||||||
Corporate and regional aircraft
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8.5 | 32.6 | % | 6.7 | 29.0 | % | ||||||||||
Military
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9.2 | 35.2 | % | 4.7 | 20.3 | % | ||||||||||
Other
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1.6 | 6.1 | % | 3.3 | 14.3 | % | ||||||||||
Total
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$ | 26.1 | 100.0 | % | $ | 23.1 | 100.0 | % |
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Net sales between $282.0 million and $298.0 million
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Gross profit between 24.3 percent and 25.5 percent
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SG&A between $36.2 million and $37.1 million
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Interest and other expenses of $1.0 million
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Effective income tax rate of 35.0 percent
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Capital expenditures between $22.0 million and $24.0 million. The company’s forecasted capital spend has increased due to building and production expansion at our Tulsa, Oklahoma, facility. The company plans to execute a sale and lease back transaction on the expanded Tulsa facilities in mid-2013 and execute several equipment financing transactions over 2012 and 2013.
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Depreciation, amortization and stock compensation expense of $9.5 million
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Net sales between $182.0 million and $194.0 million
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Gross profit between 27.2 percent and 28.4 percent
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SG&A between $28.0 million and $28.5 million
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Net sales between $100.0 million and $104.0 million
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Gross profit between 19.0 percent and 20.0 percent
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SG&A between $8.2 million and $8.6 million
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Net sales between $314.0 million and $332.0 million
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Gross profit between 24.3 percent and 25.5 percent
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SG&A between $38.3 million and $40.7 million
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Interest and other expenses of $2.1 million
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Effective income tax rate of 35.0 percent
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Capital expenditures between $16.0 million and $20.0 million
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Depreciation, amortization and stock compensation expense of $10.0 million
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Net sales between $202.0 million and $216.0 million
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Gross profit between 27.2 percent and 28.4 percent
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SG&A between $29.5 million and $31.5 million
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Net sales between $112.0 million and $116.0 million
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Gross profit between 19.0 percent and 20.0 percent
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SG&A between $8.8 million and $9.2 million
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June 30,
2012
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December 31,
2011
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Assets
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Current assets:
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Cash and cash equivalents
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$ | 6,640 | $ | 7,868 | ||||
Trade accounts receivable, net of allowance of $198 at June 30, 2012 and $359 at December 31, 2011
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49,004 | 42,720 | ||||||
Inventories
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56,446 | 51,081 | ||||||
Prepaid expenses and other current assets
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2,904 | 2,595 | ||||||
Deferred income taxes
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3,826 | 4,085 | ||||||
Total current assets
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118,820 | 108,349 | ||||||
Property, plant and equipment, net
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30,531 | 27,340 | ||||||
Goodwill
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49,102 | 49,102 | ||||||
Intangible assets, net
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16,654 | 17,642 | ||||||
Other assets
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2,034 | 2,173 | ||||||
Total assets
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$ | 217,141 | $ | 204,606 | ||||
Liabilities and shareholders’ equity
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Current liabilities:
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Accounts payable
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$ | 11,262 | $ | 13,224 | ||||
Accrued expenses
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12,364 | 10,837 | ||||||
Current income taxes
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2,098 | 271 | ||||||
Current installments of long-term debt
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132 | 29 | ||||||
Total current liabilities
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25,856 | 24,361 | ||||||
Long-term liabilities:
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Long-term debt, less current installments
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854 | - | ||||||
Other long-term liabilities
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3,522 | 3,541 | ||||||
Deferred income taxes
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7,779 | 8,919 | ||||||
Total long-term liabilities
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12,155 | 12,460 | ||||||
Shareholders’ equity:
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Common stock, $0.02 par value per share; authorized 28,000,000 shares: issued 12,109,299 and 12,123,992 shares at June 30, 2012 and December 31, 2011, respectively
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242 | 242 | ||||||
Preferred stock, $0.02 par value per share; authorized 2,000,000 shares; none issued at either date
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- | - | ||||||
Additional paid-in capital
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75,720 | 74,823 | ||||||
Treasury stock, at cost, 133,020 shares at June 30, 2012 and 249,082 shares at December 31, 2011
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(631 | ) | (1,182 | ) | ||||
Retained earnings
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103,799 | 93,902 | ||||||
Total shareholders’ equity
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179,130 | 167,785 | ||||||
Total liabilities and shareholders’ equity
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$ | 217,141 | $ | 204,606 |
Three Months Ended
June 30,
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Six Months Ended
June 30,
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2012
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2011
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2012
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2011
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Sales and service revenue
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Product sales
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$ | 42,221 | $ | 39,044 | $ | 82,386 | $ | 76,398 | ||||||||
Service revenue
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27,106 | 24,304 | 53,690 | 47,849 | ||||||||||||
Net sales
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69,327 | 63,348 | 136,076 | 124,247 | ||||||||||||
Cost of sales and service revenue
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Cost of product sales
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29,189 | 27,857 | 56,574 | 54,506 | ||||||||||||
Cost of service revenue
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23,171 | 20,246 | 46,017 | 39,938 | ||||||||||||
Cost of sales
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52,360 | 48,103 | 102,591 | 94,444 | ||||||||||||
Gross profit
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16,967 | 15,245 | 33,485 | 29,803 | ||||||||||||
Selling, general and administrative expenses
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8,881 | 8,523 | 17,961 | 17,174 | ||||||||||||
Income from operations
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8,086 | 6,722 | 15,524 | 12,629 | ||||||||||||
Other income (expense):
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Interest expense
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(293 | ) | (131 | ) | (494 | ) | (270 | ) | ||||||||
Other, net
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(62 | ) | (572 | ) | 107 | (547 | ) | |||||||||
Total other expense
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(355 | ) | (703 | ) | (387 | ) | (817 | ) | ||||||||
Income before income taxes
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7,731 | 6,019 | 15,137 | 11,812 | ||||||||||||
Provision for income taxes
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2,626 | 2,053 | 5,240 | 3,577 | ||||||||||||
Net income
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$ | 5,105 | $ | 3,966 | $ | 9,897 | $ | 8,235 | ||||||||
Amounts per common share:
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Net income per common share
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$ | 0.44 | $ | 0.34 | $ | 0.85 | $ | 0.71 | ||||||||
Net income per common share assuming dilution
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$ | 0.43 | $ | 0.34 | $ | 0.84 | $ | 0.70 | ||||||||
Weighted average common shares outstanding
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11,671,388 | 11,548,139 | 11,644,698 | 11,528,776 | ||||||||||||
Weighted average dilutive common shares outstanding
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11,833,503 | 11,747,230 | 11,809,972 | 11,721,361 |
Six Months Ended
June 30,
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2012
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2011
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Operating activities:
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Net income
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$ | 9,897 | $ | 8,235 | ||||
Adjustments to reconcile net income to net cash provided by operating activities:
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Depreciation and amortization
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3,813 | 3,570 | ||||||
Intangible asset impairment
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- | 1,163 | ||||||
Contingent consideration write-off
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- | (1,235 | ) | |||||
Inventory Reserves
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(241 | ) | 577 | |||||
Restricted stock compensation
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743 | 558 | ||||||
Deferred taxes
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(1,140 | ) | - | |||||
Other noncash items
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(135 | ) | 287 | |||||
Changes in operating assets and liabilities:
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Trade accounts receivable
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(6,437 | ) | (4,077 | ) | ||||
Inventories
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(5,124 | ) | (4,033 | ) | ||||
Prepaid expenses and other assets
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(207 | ) | (17 | ) | ||||
Current income taxes
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2,393 | 1,290 | ||||||
Accounts payable
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(1,673 | ) | 1,889 | |||||
Accrued expenses
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2,060 | 1,155 | ||||||
Net cash provided by operating activities
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3,949 | 9,362 | ||||||
Investing activities:
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Additions to property, plant and equipment
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(6,345 | ) | (4,592 | ) | ||||
Other, net
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38 | 8 | ||||||
Net cash used by investing activities
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(6,307 | ) | (4,584 | ) | ||||
Financing activities:
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Advances from long-term debt and notes payable
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997 | - | ||||||
Principal payments on long-term debt and notes payable
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(40 | ) | (116 | ) | ||||
Changes in outstanding checks in excess of bank deposits
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- | 1,000 | ||||||
Other, net
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173 | (78 | ) | |||||
Net cash provided by financing activities
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1,130 | 806 | ||||||
Net (decrease) increase in cash and cash equivalents
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(1,228 | ) | 5,584 | |||||
Cash and cash equivalents, beginning of year
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7,868 | 1,947 | ||||||
Cash and cash equivalents, end of quarter
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$ | 6,640 | $ | 7,531 |
Three Months Ended
June 30,
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Six Months Ended
June 30,
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2012
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2011
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2012
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2011
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Non-GAAP Financial Information
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Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA)(1):
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Net Income
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$ | 5,105 | $ | 3,966 | $ | 9,897 | $ | 8,235 | ||||||||
Income tax expense
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2,626 | 2,053 | 5,240 | 3,577 | ||||||||||||
Depreciation and amortization
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1,877 | 1,758 | 3,813 | 3,570 | ||||||||||||
Intangible asset impairment
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- | - | - | 1,163 | ||||||||||||
Contingent consideration write-off
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- | - | - | (1,235 | ) | |||||||||||
Stock based compensation
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368 | 183 | 743 | 558 | ||||||||||||
Interest expense
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293 | 131 | 494 | 270 | ||||||||||||
Other, net
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62 | 572 | (107 | ) | 547 | |||||||||||
Adjusted EBITDA
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$ | 10,331 | $ | 8,663 | $ | 20,080 | $ | 16,685 | ||||||||
Free Cash Flow (2):
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Net cash provided by operating activities
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$ | 3,521 | $ | 6,523 | $ | 3,949 | $ | 9,362 | ||||||||
Less:
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Capital expenditures
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(3,436 | ) | (2,975 | ) | (6,345 | ) | (4,592 | ) | ||||||||
Free cash flow
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$ | 85 | $ | 3,548 | $ | (2,396 | ) | $ | 4,770 |
Contact:
Ed Dickinson
Chief Financial Officer, 636.916.2150
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24/7 Airline AOG support
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Modification, repair, design and analysis using the latest CAD techniques
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Technical fleet management
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Repair design services
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Engineering program management
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Airworthiness certification and certification program management
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Substantiation, flight verification and certification in systems and avionics
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