-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, WALJifWuG/j4j8z7Z2JzS6c2gjl0Eb2XaYxG3T7YCZGA41IPcNBiGplT9tFI+tcA JAllbuhDoCycxfviGzOoSA== 0000859307-98-000012.txt : 19981016 0000859307-98-000012.hdr.sgml : 19981016 ACCESSION NUMBER: 0000859307-98-000012 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19980831 FILED AS OF DATE: 19981015 SROS: AMEX FILER: COMPANY DATA: COMPANY CONFORMED NAME: INTERNATIONAL AIRLINE SUPPORT GROUP INC CENTRAL INDEX KEY: 0000859307 STANDARD INDUSTRIAL CLASSIFICATION: WHOLESALE-MACHINERY, EQUIPMENT & SUPPLIES [5080] IRS NUMBER: 592223025 STATE OF INCORPORATION: DE FISCAL YEAR END: 0531 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 001-12893 FILM NUMBER: 98725792 BUSINESS ADDRESS: STREET 1: 1954 AIRPORT RD STREET 2: STE 200 CITY: ATLANTA STATE: GA ZIP: 30341 BUSINESS PHONE: 3055932658 MAIL ADDRESS: STREET 1: 8095 NW 64TH STREET CITY: MIAMI STATE: FL ZIP: 33166 10-Q 1 SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. For the quarterly period ended August 31, 1998 or [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. For the transition period from ________________ to __________________. Commission file number 0-18352 ------- INTERNATIONAL AIRLINE SUPPORT GROUP, INC. DELAWARE 59-2223025 ------------------------------ -------------------------------- (State or other jurisdiction of (IRS Employer Identification No.) incorporation or organization) 1954 AIRPORT ROAD, SUITE 200, ATLANTA, GA 30341 ------------------------------------------ --------- (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (770) 455-7575 Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. YES X NO ---- ---- APPLICABLE ONLY TO CORPORATE ISSUERS: Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date. The number of shares of the Company's common stock outstanding as of October 15, 1998 was 2,569,167. FORM 10-Q INTERNATIONAL AIRLINE SUPPORT GROUP, INC. AND SUBSIDIARY INDEX PAGE NO. -------- Part I FINANCIAL INFORMATION Item 1. Financial Statements Condensed Consolidated Balance Sheets 3 May 31, 1997 and August 31, 1998 Condensed Consolidated Statements of Earnings 4 Three Months Ended August 31, 1997 and August 1998 Condensed Consolidated Statements of Cash Flows 5 Three Months Ended August 31, 1997 and August 31, 1998 Notes to Condensed Consolidated Financial Statements 6 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 8 Part II OTHER INFORMATION Item 1. Legal Proceedings 12 Item 6. Exhibits and Reports on Form 8-K 12 2 FORM 10-Q INTERNATIONAL AIRLINE SUPPORT GROUP, INC. AND SUBSIDIARY CONSOLIDATED BALANCE SHEETS ASSETS
August 31, May 31, 1998 1998* (UNAUDITED) ---------- ---------- Current assets Cash and cash equivalents $ 438,403 $ 347,584 Accounts receivable, net of allowance for doubtful accounts of approximately $514,000 at May 31, 1998 and $554,000 at August 31, 1998 1,179,760 1,947,828 Inventories 11,744,924 13,779,519 Deferred tax benefit - current 1,202,345 1,202,345 Other current assets 194,618 722,984 ---------- ---------- Total current assets 14,760,050 18,000,260 Investments 92,194 81,950 Property and equipment Aircraft and engines held for lease 7,347,954 7,170,854 Leasehold improvements 65,881 63,435 Machinery and equipment 931,092 939,218 ---------- ---------- 8,344,927 8,173,507 Accumulated depreciation 1,969,138 2,178,688 ---------- ---------- Property and equipment, net 6,375,789 5,994,819 Other assets Deferred debt costs, net 513,222 563,993 Deferred tax benefit 1,760,565 1,489,839 Deposits and other assets 134,533 1,079,769 ---------- ---------- Total other assets 2,408,320 3,133,601 ---------- ---------- $ 23,636,353 $ 27,210,630 ========== ========== LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Current maturities of long-term obligations $ 1,351,805 $ 1,621,668 Accounts payable 247,982 787,834 Accrued expenses 2,932,016 1,962,361 ---------- ---------- Total current liabilities 4,531,803 4,371,863 Long-term obligations, less current maturities 8,296,063 11,582,062 Commitments and contingencies Stockholders' equity Preferred stock - $.001 par value; authorized 2,000,000 shares; 0 shares outstanding at May 31, 1998 and August 31, 1998. - - Common stock - $.001 par value; authorized 20,000,000 shares; issued and outstanding 2,562,667 shares at May 31, 1998 and 2,569,167 shares at August 31, 1998. 2,562 2,569 Additional paid-in capital 13,511,610 13,528,354 Unrealized loss on equity security (22,545) (32,789) Accumulated deficit (2,683,140) (2,241,429) ---------- ---------- Total stockholders' equity 10,808,487 11,256,705 ---------- ---------- $ 23,636,353 $ 27,210,630 ========== ==========
*Condensed from audited Financial Statements The accompanying notes are an intergral part of these financial statements. 3 FORM 10-Q INTERNATIONAL AIRLINE SUPPORT GROUP, INC. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED)
Three Months Ended August 31, August 31, 1997 1998 ---------- ----------- Revenues Net sales $ 4,940,969 $ 4,788,384 Lease and service revenue 626,057 786,562 ---------- ----------- Total revenues 5,567,026 5,574,946 Cost of sales 3,140,020 3,256,923 Selling, general and administrative expenses 1,036,448 1,003,139 Provision (recovery) for doubtful accounts (47,529) 39,745 Depreciation and amortization 253,744 257,830 ---------- ----------- Total operating costs 4,382,683 4,557,637 ---------- ----------- Earnings from operations 1,184,343 1,017,309 Interest expense 413,300 310,489 Interest and other income (1,695) (5,617) ---------- ----------- Earnings before income taxes 772,738 712,437 Provision for (benefit from) income taxes - current - - Provision for (benefit from) income taxes - deferred (212,499) 270,726 ---------- ----------- Net earnings $ 985,237 $ 441,711 ========== =========== Per share data: Earnings per share available for common stockholders - Basic $ 0.41 $ 0.17 Weighted average number of common Stock outstanding - Basic 2,405,361 2,563,874 ========== =========== Earnings per share available for common stockholders - Diluted $ 0.36 $ 0.16 Weighted average number of common Stock outstanding - Diluted 2,759,800 2,820,264 ========== ===========
The accompanying notes are an intergral part of these financial statements. 4 FORM 10-Q INTERNATIONAL AIRLINE SUPPORT GROUP, INC. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)
Three months ended August 31, August 31, 1997 1998 --------- --------- Cash flows from operating activities: Net earnings $ 985,237 $ 441,711 Adjustments to reconcile net earnings to net cash provided by (used in) operating activities: Depreciation and amortization 253,404 257,830 Provision (recovery) for doubtful accounts (47,529) 39,745 (Increase) decrease in inventory 1,048,533 (2,034,595) Changes in other assets and liabilities (1,191,598) (1,570,591) --------- --------- Total adjustments 62,810 (3,307,611) Net cash provided by (used in) operating activities 1,048,047 (2,865,900) Cash flows from investing activities: Capital equipment additions (46,146) (33,031) Proceeds from sale of engine held for lease - 265,000 Deposit on investment in joint venture (note 6) - (1,000,000) --------- --------- Net cash used in investing activities (46,146) (768,031) Cash flows from financing activities: Net (decrease) increase in debt obligations (1,382,661) 3,555,862 Issuance of common stock 134,250 14,250 --------- --------- Net cash provided by (used in) financing activities (1,248,411) 3,570,112 --------- --------- Net decrease in cash (246,510) (63,819) Cash and cash equivalents at beginning of period 465,725 438,403 --------- --------- Cash and cash equivalents at end of period $ 219,215 $ 374,584 ======== =======
The accompanying notes are an integral part of these condensed financial statements. 5 INTERNATIONAL AIRLINE SUPPORT GROUP, INC. AND SUBSIDIARY NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) 1. In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain adjustments (consisting only of normal and recurring adjustments) necessary to present fairly International Airline Support Group, Inc. and Subsidiary's condensed consolidated balance sheets as of May 31, 1998 and August 31, 1998, the condensed consolidated statements of earnings for the three months ended August 31, 1997 and August 31, 1998, and the condensed consolidated statements of cash flows for the three months ended August 31, 1997 and August 31, 1998. The accounting policies followed by the Company are described in the May 31, 1998 financial statements. The results of operations for the three months ended August 31, 1998 are not necessarily indicative of the results to be expected for the full year. 2. Inventories consisted of the following: MAY 31,1998 AUGUST 31,1998 ----------- -------------- Aircraft parts $11,294,924 $10,659,519 Aircraft and Engines available for sale 450,000 3,120,000 ----------- ----------- $11,744,924 $13,779,519 =========== =========== 3. Earnings Per Share: The Company's basic earnings per share are calculated by dividing Net earnings by the weighted average shares outstanding during the period. The computation of diluted earnings per share includes all dilutive common stock equivalents in the weighted average shares outstanding. Financial Accounting Standards Board (FASB) Statement 128 "Earnings Per Share" was adopted by the Company on January 1, 1998 and requires the dual presentation of basic and diluted earnings per share on the face of the statement of earnings. The reconciliation between the computation is as follows: Three Months Ended Net Basic Basic Diluted Diluted AUGUST 31, EARNINGS SHARES EPS SHARES EPS ---------- --------- --------- ----- --------- ----- 1997 $ 985,237 2,405,361 $0.41 2,759,800 $0.36 1998 $ 441,711 2,563,874 $0.17 2,820,264 $0.16 Included in diluted shares are common stock equivalents relating to stock options of 256,390 and 354,439 for the three months ended August 31, 1998 and 1997, respectively. 6 INTERNATIONAL AIRLINE SUPPORT GROUP, INC. AND SUBSIDIARY NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) 4. Credit Facility On October 3, 1996, the Company entered into the Credit Agreement, which provided for a $3 million term loan and up to an $11 million revolving credit. The Credit Agreement was amended on various occasions to create new term loan facilities totaling $6.85 million (collectively referred to as the "Credit Facility") and increasing the revolving credit to $14 million. The Credit Facility is secured by substantially all of the assets of the Company and availability of amounts for borrowing is subject to certain limitations and restrictions. Such limitations and restrictions are discussed in the Company's Proxy Statement/Prospectus filed with the Securities and Exchange Commission on August 29, 1996. 5. Supplemental Cash Flow Disclosures: Cash payments for interest were $413,000 and $310,000 for the three months ended August 31, 1997 and August 31, 1998, respectively. Cash and cash equivalents include $224,544 of restricted cash at August 31, 1998. Restricted cash includes customer receipts deposited into the Company's lockbox account, which are applied the next business day against the outstanding amount of the Credit Facility, and customer deposits on aircraft and engines leases. 1. Joint Venture As of August 31, 1998, the Company had a deposit of $1,000,000 relating to a planned 50% investment in a joint venture. On September 16, 1998, the Company entered into this joint venture for the acquisition of 20 DC-9-41H aircraft from Scandinavian Airlines System ("SAS"). The aircraft have been leased back to SAS and the leases have an average term of 39 months. The Company's investment in the joint venture is approximately $2 million. The Company's joint venture partner is AirCorp, Inc., a privately held company. The aircraft were financed through the joint venture, utilizing non-recourse debt to the partners. The joint venture will be accounted for under the equity method and the leases will be treated as operating leases. 7 INTERNATIONAL AIRLINE SUPPORT GROUP, INC. AND SUBSIDIARY ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATION The following is management's discussion and analysis of certain significant factors which have affected the Company's operating results and financial position during the periods included in the accompanying condensed consolidated financial statements. RESULTS OF OPERATIONS: REVENUES Total revenue during the three months ended August 31, 1998 remained unchanged compared to August 31, 1997 at $5.6 million. Net sales for the three months ended August 31, 1998 were $4.8 million compared to $4.9 million for the three months ended August 31, 1997. Net sales include parts sales as well as aircraft and engine sales. Aircraft and engine sales are unpredictable transactions and may fluctuate significantly from year to year, dependent, in part, upon the Company's ability to purchase an aircraft or engine at an attractive price and resell it within a relatively brief period of time, as well as the overall market for used aircraft or engines. Lease and service revenue increased to $787,000 during the three months ended August 31, 1998 compared to $626,000 during the three months ended August 31, 1997, primarily due to an increase in service revenue which was partially offset by a decrease in lease revenue. COST OF SALES Cost of sales increased from $3.1 million during the three months ended August 31, 1997 to $3.3 million during the three months ended August 31, 1998. As a percentage of total revenues, cost of sales for the three months ended August 31, 1998 was 58% compared to 56% for the three months ended August 31, 1997. This increase was due primarily to a higher cost of sales for engines during the three months ended August 31, 1998. SELLING, GENERAL AND ADMINISTRATIVE EXPENSES Selling, general and administrative expenses was $1.0 million for the three months ended August 31, 1998 and August 31, 1997. PROVISION FOR (RECOVERY OF) DOUBTFUL ACCOUNTS For the three months ended August 31, 1998, the Company recorded a provision for doubtful accounts of $39,745 compared to a credit to the provision for doubtful accounts of $47,529 for the three months ended August 31, 1997. This increase in expense was primarily related to the recovery of a certain doubtful account during the first quarter of fiscal 1998 that had previously been written off and was in excess of the amount otherwise provisioned. 8 INTERNATIONAL AIRLINE SUPPORT GROUP, INC. AND SUBSIDIARY DEPRECIATION AND AMORTIZATION Depreciation and amortization increased from $254,000 for the three months ended August 31, 1997 to $258,000 for the three months ended August 31, 1998. INTEREST EXPENSE Interest expense for the three months ended August 31, 1997 was $413,000 compared to $310,000 for the three months ended August 31, 1998. This decrease in interest expense was due to a reduction in the interest rate assessed to the Company (see Liquidity and Capital Resources) and a lower average of total debt outstanding during this period. INCOME TAXES Income taxes have been provided at the Company's estimated effective tax rate of approximately 38% for fiscal 1999. In the prior year, the Company recognized deferred tax benefits as the realization of such benefits was determined to be more likely than not because of the Company's consistent profitability. The realization of the tax benefits was accomplished through a reduction in the valuation allowance that had been previously established against the Company's deferred tax assets. NET EARNINGS Net earnings decreased from $985,000 for the first quarter of fiscal 1998 to $442,000 for the first quarter of fiscal 1999, primarily due to last year's benefit from income taxes of $212,000 compared to a provision for income taxes in fiscal 1999 of $271,000. Income before taxes decreased from $773,000 to $712,000. Earnings for the first quarter of fiscal 1999 were $0.16 per share - diluted, based on 2,820,264 weighted average shares outstanding, compared to earnings for the first quarter of fiscal 1998 of $0.36 per share - diluted, based on 2,759,800 weighted average shares outstanding. On a pro forma basis, adjusted as if the Company had been a full taxpayer in fiscal 1998, earnings per share - diluted for the first quarter of fiscal 1998 would have been $0.17. 9 INTERNATIONAL AIRLINE SUPPORT GROUP, INC. AND SUBSIDIARY LIQUIDITY AND CAPITAL RESOURCES The Credit Agreement originally entered into by the Company in October of 1996 provided for a $3 million term loan and up to an $11 million revolving credit. The Credit Agreement has been amended to create new term loan facilities totaling $6.85 million (collectively referred to as the "Credit Facility") and to increase the revolving credit to $14 million. The revolving credit facility matures in October 2001 and the term loans mature between March 2000 and October 2001. The interest rate that the Company is assessed is subject to fluctuation and may change based upon certain financial covenants. As of October 15, 1998, the interest rate under the Credit Facility was the lender's base rate minus 0.25% (8.00%). The Credit Facility is secured by substantially all of the assets of the Company and availability of amounts for borrowing is subject to certain limitations and restrictions. Such limitations and restrictions are discussed in the Company's Proxy Statement/Prospectus filed with the Securities and Exchange Commission on August 29, 1996. The Company's lender has approved a waiver granting permission for the Company to enter into the joint venture as described in note 6 and repurchase up to $1,000,000 of its common stock. Net cash provided by (used in) operating activities for the three months ended August 31, 1998 and August 31, 1997 were ($3,246,000) and $63,000, respectively. The cash used in operating activities for the three months ended August 31, 1998 was due primarily to an increase in inventories of $2.0 million, an increase in accounts receivables and a decrease in accounts payables. The cash provided by operating activities for three months ended August 31, 1997 was due, in part, to a decrease in inventory of $1,049,000. Net cash used for investing activities for the three months ended August 31, 1998 amounted to $768,031 compared to $46,146 for the three months ended August 31, 1997. The net cash used for investing activities for the three months ended August 31, 1998 was primarily the result of a deposit on an investment in a joint venture that closed subsequent to the end of the quarter offset by the proceeds from the sale of an engine that had been held for lease. Net cash provided by (used in) financing activities for three months ended August 31, 1998 amounted to $3,570,000 compared to ($1,248,000) for the three months ended August 31, 1997. The net cash provided by financing activities for the three months ended August 31, 1998 was primarily the result of a net increase in debt obligations of $3.6 million dollars. For the three months ended August 31, 1997, the net cash used in financing activities resulted primarily from a decrease in debt obligations of $1,383,000. At August 31, 1998, the Company was permitted to borrow up to an additional $3.9 million pursuant to the revolving credit facility. The Company believes that amounts available to be borrowed pursuant to the Credit Agreement and its working capital will be sufficient to meet the requirements of the Company's business for the foreseeable future. The Company had no material commitments for capital expenditures as of August 31, 1998. 10 INTERNATIONAL AIRLINE SUPPORT GROUP, INC. AND SUBSIDIARY As of August 31, 1998, the Company had a deposit of $1,000,000 relating to a planned 50% investment in a joint venture. On September 16, 1998, the Company entered into this joint venture for the acquisition of 20 DC-9-41H aircraft from Scandinavian Airlines System ("SAS"). The Company's investment in the joint venture is approximately $2 million and was financed through additional bank borrowings under the Company's Credit Facility and the application of the Company's portion of the first month's rental income. The aircraft were financed through the joint venture, utilizing non-recourse debt to the partners. RECENT ACCOUNTING PRONOUNCEMENTS In June 1997, the FASB issued Statement of Financial Accounting Standard No. 130 (SFAS 130), "Reporting Comprehensive Income." SFAS 130 establishes standards for reporting and display of comprehensive income and its components in financial statements. Differences between net earnings and comprehensive earnings for the three months ended August 31, 1998 and 1997 were insignificant and, therefore, have not been separately disclosed. YEAR 2000 ISSUES The Company has conducted a preliminary Year 2000 compliance review of its major software and computer systems. At this time, the Company believes that its existing systems are Year 2000 compliant. While the Company is aggressively addressing the Year 2000 issue internally, the compliance of third parties with which the Company has material relationships is presently unknown and the failure of third parties to be compliant could potentially have an adverse effect on the Company's operations. As any Year 2000 compliance failure risk is specifically identified, appropriate action will be taken to develop alternative contingency plans. FORWARD LOOKING STATEMENTS This Form 10-Q contains statements that may constitute "forward- looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Those statements include statements regarding the capital spending and future financing plans of the Company and reflect the intent, belief or current expectations of the Company and members of its management team. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those contemplated by such forward-looking statements. The Company undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results over time. 11 INTERNATIONAL AIRLINE SUPPORT GROUP, INC. AND SUBSIDIARY PART II - OTHER INFORMATION Item 1. LEGAL PROCEEDINGS The Company is from time to time subject to legal proceedings and claims that arise in the ordinary course of its business. On the date hereof, no such proceedings are pending and no such claims have been asserted. Item 6. EXHIBITS AND REPORTS ON FORM 8-K (b) EXHIBITS
Exhibit NUMBER DESCRIPTION PAGE NUMBER OR METHOD OF FILING 2.4 Credit Agreement between BNY Incorporated by Financial Corporation and the reference to Exhibit Registrant, as amended. 2.4 to Amendment No. 2 to the Company's Registration Statement on Form S-4 filed August 29, 1996 (File No. 333-08065). 3.1 Amended and Restated Certificate Incorporated by of Incorporation of the reference to Exhibit Registrant. 3.1 to the Company's Annual report on Form 10-K for the fiscal year ended May 31, 1996 (the "1996 Form 10-K"). 3.2 Restated and Amended Bylaws of Incorporated by the Registrant, as amended. reference to Exhibit 3.2 to the 1996 Form 10-K. 4.1 Specimen Common Stock Certificate Incorporated by reference to Exhibit 4.1 to the 1996 Form 10-K. 12 10.1.1 Employment Agreement, dated as of Incorporated by December 1, 1995, between the reference to Exhibit Registrant and Alexius A. Dyer 10.1.1 to the to III, as amended on October 3, Amendment No. 2 to the 1996. Company's Registration Statement on Form S-4 filed August 29, 1996 (File No. 333-08065). 10.1.2 Employment Agreement, dated as of Incorporated by October 3, 1996, between the reference to Exhibit Registrant and George Murnane 10.1.2 to the Company's III. Quarterly Report for the quarter ended February 28, 1997. 10.2.1 1996 Long-Term Incentive and Incorporated by Share Award Plan. reference to Appendix B to the Proxy Statement/ Prospectus included in the Company's Registration Statement on Form S-4 (File No. 333-08065) filed on July 12, 1996. 10.2.2 401(k) Plan. Incorporated by reference to Exhibit 10-H to the Company's Annual Report on Form 10-K for the fiscal year ended May 31, 1992 (the "1992 Form 10-K"). 13 10.2.3 Bonus Plan. Incorporated by reference to Exhibit 10.2.4 to the 1992 Form 10-K. 10.2.4 Cafeteria Plan. Incorporated by reference to Exhibit 10.2.5 of the Company's Annual report on Form 10-K for the fiscal year ended May 31, 1993. 10.2.5 Form of Option Certificate Incorporated by (Employee Non-Qualified Stock reference to Exhibit Option). 10.2.5 to the 1996 Form 10-K. 10.2.6 Form of Option Certificate Incorporated by (Director Non-Qualified Stock reference to Exhibit Option). 10.2.6 to the 1996 Form 10-K. 10.2.7 Form of Option Certificate Incorporated by (Incentive Stock Option). reference to Exhibit 10.2.7 to the 1996 Form 10-K. 10.14 Commission Agreement dated Incorporated by December 1, 1995 between the reference to Exhibit Registrant and J.M. Associates, 10.14 to the 1996 Form Inc. 10-K. 10.15 Aircraft Parts Purchase Incorporated by Agreement, dated May 16, 1996, reference to Exhibit between Paxford Int'l, Inc. and 10.15 to the Company's the Registrant. Registration Statement on Form S-4 (File No. 333-08065). 10.16 Contract for Sale and Purchase Incorporated by dated January 31, 1997, between reference to Exhibit the Registrant and American 10.16 to the Company's Connector Corporation. 1997 Form 10-K. 14 10.17 Office Lease Agreement dated Incorporated by January 31, 1997 between the reference to Exhibit Registrant and Globe Corporate 10.17 to the Company's Center. 1997 Form 10-K. 10.18 Lease Agreement dated March 31, Incorporated by 1997, between the Registrant and reference to Exhibit Port 95-4, Ltd. 10.18 to the Company's 1997 Form 10-K. 27 Financial Data Schedule Page No. 17
(b) REPORTS ON FORM 8-K None 15 INTERNATIONAL AIRLINE SUPPORT GROUP, INC. AND SUBSIDIARY SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. INTERNATIONAL AIRLINE SUPPORT GROUP, INC. (Registrant) /S/GEORGE MURNANE III OCTOBER 15, 1998 - ---------------------------- ---------------- George Murnane III Date Executive Vice President and Chief Financial Officer 16 EX-27 2 FINANCIAL DATA SCHEDULE
5 3-MOS May-31-1999 Aug-31-1998 347,584 81,950 2,501,828 554,000 13,779,519 18,000,260 8,173,507 2,178,688 27,210,630 4,371,863 11,582,062 2,569 0 0 11,254,136 27,210,630 4,788,384 5,574,946 3,256,923 4,260,062 257,830 39,745 304,872 712,437 270,726 0 0 0 0 441,711 0.17 0.16
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