Exhibit 99.1
PRESS RELEASE
FOR IMMEDIATE DISTRIBUTION
| Contact: | Mike Harlan CEO, President, and Director Phone: 973-602-1001 |
BREEZE-EASTERN REPORTS RECORD FISCAL 2012 FIRST QUARTER SALES
Whippany, New Jersey — August 4, 2011 — Breeze-Eastern Corporation (NYSE Amex: BZC) today
reported its Fiscal 2012 First Quarter financial results.
| • | Net sales: $18.2 million, a new record for First Quarter sales — up 10% over $16.5 million for the Fiscal 2011 First Quarter. | ||
| • | Net income: $0.6 million, or $0.06 per diluted share, equal to the Fiscal 2011 First Quarter. | ||
| • | Adjusted EBITDA, as described under “Non-GAAP Financial Measures” in this press release: $1.6 million, versus $2.0 million in the Fiscal 2011 First Quarter. | ||
| • | Current debt: zero | ||
| • | Long-term debt (total): $10.7 million, $0.8 million lower than three months ago, and $6.6 million lower than a year ago. | ||
| • | Cash: $10.5 million, versus $2.4 million a year ago. | ||
| • | Bookings: $13.6 million, versus $19.7 million in Fiscal 2011 First Quarter. The book-to-bill ratio for the Fiscal 2012 First Quarter was 0.7. |
Mike Harlan, President and Chief Executive Officer, said, “We are pleased to have started our
Fiscal year with record First Quarter sales and continued strong cash flow. We continued to
accelerate debt principal pre-payments during the quarter, and, after subtracting cash, our net
debt was down to $0.2 million.”
35 Melanie Lane • Whippany • New Jersey 07981
Tel: (973) 602-1001 • Fax: (973) 739-9333 • www.breeze-eastern.com
Tel: (973) 602-1001 • Fax: (973) 739-9333 • www.breeze-eastern.com
| Breeze-Eastern Corporation — August 4, 2011 | ||
| Fiscal 2012 First Quarter Earnings Release | Page 2 of 5 |
Outlook
Mr. Harlan continued, “We are getting to the final stages for several major development programs;
we completed final qualification testing for the C-27J Cargo Winch last quarter and will be
providing initial qualified products for the CH-53K, AW-159, and A400M later this Fiscal year.
Bookings in the First Quarter were less than expected due to a variety of delays, but we still
expect to get more orders than shipments by the end of our Fiscal year. We expect our Fiscal Second
Quarter sales to be stronger than the Fiscal 2011 Second Quarter and stronger than our Fiscal 2012
First Quarter. Our projected cash flow is still very strong.”
| * | * | * |
The Company will conduct a conference call at 11:00 a.m. EDT on Thursday, August 4, 2011 with the
following numbers: (866) 761-0748 or (617) 614-2706 and passcode 69239336.
| * | * | * |
Breeze-Eastern
Corporation (http://www.breeze-eastern.com) is the world’s leading designer and
manufacturer of high performance lifting and pulling devices for military and civilian aircraft,
including rescue hoists, winches and cargo hooks, and weapons-lifting systems. The Company employs
approximately 165 people at its facilities in Whippany, New Jersey.
| Breeze-Eastern Corporation — August 4, 2011 | ||
| Fiscal 2012 First Quarter Earnings Release | Page 3 of 5 |
Non—GAAP Financial Measures
In addition to disclosing financial results that are determined in accordance with Generally
Accepted Accounting Principles (“GAAP”), the Company also discloses Adjusted EBITDA (earnings
before interest, taxes, depreciation and amortization, other income/expense, loss on debt
extinguishment, and relocation expense). The Company presents Adjusted EBITDA because it considers
it an important supplemental measure of performance. Measures similar to Adjusted EBITDA are
widely used by the Company and by others in the Company’s industry to evaluate performance and
valuation. The Company believes Adjusted EBITDA facilitates operating performance comparisons from
period to period and company to company by backing out potential differences caused by variations
in capital structure (affecting relative interest expense), tax positions (such as the impact on
periods or companies of changes in effective tax rates or net operating losses) and the age and
book depreciation of facilities and equipment (affecting relative depreciation expense). The
Company also presents Adjusted EBITDA because it believes it is frequently used by investors and
other interested parties as a basis for evaluating performance.
Adjusted EBITDA has limitations as an analytical tool, and should not be considered in isolation or
as a substitute for analysis of the Company’s results as reported under GAAP. Some of the
limitations of Adjusted EBITDA are that (i) it does not reflect the Company’s cash expenditures for
capital assets, (ii) it does not reflect the significant interest expense or cash requirements
necessary to service interest or principal payments on the Company’s debt, and (iii) it does not
reflect changes in, or cash requirements for, the Company’s working capital. Furthermore, other
companies in the aerospace and defense industry may calculate these measures differently than the
manner presented above. Accordingly, the Company focuses primarily on its GAAP results and uses
Adjusted EBITDA only supplementally. A reconciliation of Adjusted EBITDA to net income, the most
directly comparable GAAP measure, for the three months ended June 30, 2011 is shown in the tables
below.
INFORMATION ABOUT FORWARD-LOOKING STATEMENTS
This news release contains 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,
regarding our future operating performance, financial results, events, trends and plans. All
statements in this news release other than statements of historical facts are forward-looking
statements. Forward-looking statements involve numerous risks and uncertainties. We have attempted
to identify any forward-looking statements by using words such as “anticipates,” “believes,”
“could,” “expects,” “intends,” “may,” “should” and other similar expressions. Although we believe
that the expectations reflected in all of our forward-looking statements are reasonable, we can
give no assurance that such expectations will prove to be correct. Such statements are not
guarantees of future performance or events and are subject to known and unknown risks and
uncertainties that could cause our actual results, events or financial positions to differ
materially from those included within the forward-looking statements. Such factors include, but are
not limited to competition from other companies; changes in applicable laws, rules, and regulations
affecting the Company in the locations in which it conducts its business; interest rate trends; a
decrease in the United States government defense spending, changes in spending allocation or the
termination, postponement, or failure to fund one or more significant contracts by the United
States government or other customers; changes in our sales strategy and product development plans;
changes in the marketplace; developments in environmental proceedings that we are involved in;
continued services of our executive management team; status of labor relations; competitive pricing
pressures; market acceptance of our products under development; delays in the development of
products; determination by us to dispose of or acquire additional assets; general industry and
economic conditions; events impacting the U.S. and world financial markets and economies; and those
specific risks disclosed in our Annual Report on Form 10-K for the fiscal year ended March 31,
2011, and other filings with the Securities and Exchange Commission. We undertake no obligation to
update publicly any forward-looking statements, whether as a result of new information or future
events.
| Breeze-Eastern Corporation — August 4, 2011 | ||
| Fiscal 2012 First Quarter Earnings Release | Page 4 of 5 |
BREEZE-EASTERN CORPORATION
STATEMENTS OF CONSOLIDATED OPERATIONS
(In Thousands of Dollars Except Share Data)
STATEMENTS OF CONSOLIDATED OPERATIONS
(In Thousands of Dollars Except Share Data)
| Three Months Ended | ||||||||
| 6/30/11 | 6/30/10 | |||||||
Net sales |
$ | 18,248 | $ | 16,540 | ||||
Cost of sales |
10,864 | 10,407 | ||||||
Gross profit |
7,384 | 6,133 | ||||||
Selling, general, and administrative expenses |
3,904 | 3,073 | ||||||
Engineering expense |
2,285 | 1,556 | ||||||
Relocation expense |
— | 211 | ||||||
Operating income |
1,195 | 1,293 | ||||||
Interest expense |
134 | 214 | ||||||
Other expense-net |
30 | 64 | ||||||
Income before income taxes |
1,031 | 1,015 | ||||||
Provision for income taxes |
433 | 426 | ||||||
Net income |
$ | 598 | $ | 589 | ||||
Basic earnings per share: |
$ | 0.06 | $ | 0.06 | ||||
Diluted earnings per share: |
$ | 0.06 | $ | 0.06 | ||||
Weighted average basic shares |
9,445,000 | 9,397,000 | ||||||
Weighted average diluted shares |
9,564,000 | 9,412,000 | ||||||
BALANCE SHEET INFORMATION
(In Thousands of Dollars)
(In Thousands of Dollars)
| 6/30/11 | 3/31/11 | |||||||
Current assets |
$ | 48,398 | $ | 47,756 | ||||
Fixed assets — net |
8,713 | 8,351 | ||||||
Other assets |
22,328 | 22,041 | ||||||
Total assets |
$ | 79,439 | $ | 78,148 | ||||
Current portion of long-term debt
and short term borrowings |
$ | — | $ | — | ||||
Other current liabilities |
16,761 | 15,380 | ||||||
Total current liabilities |
16,761 | 15,380 | ||||||
Long-term debt |
10,679 | 11,500 | ||||||
Other non-current liabilities |
17,616 | 17,835 | ||||||
Stockholders’ equity |
34,383 | 33,433 | ||||||
Total liabilities and stockholders’ equity |
$ | 79,439 | $ | 78,148 | ||||
| Breeze-Eastern Corporation — August 4, 2011 | ||
| Fiscal 2012 First Quarter Earnings Release | Page 5 of 5 |
Reconciliation of Reported Income to Adjusted EBITDA
(In Thousands of Dollars)
(In Thousands of Dollars)
| Three Months Ended | ||||||||
| 6/30/11 | 6/30/10 | |||||||
Net sales |
$ | 18,248 | $ | 16,540 | ||||
Cost of sales |
10,864 | 10,407 | ||||||
Gross Profit |
7,384 | 6,133 | ||||||
Selling, general and administrative expenses |
3,904 | 3,073 | ||||||
Engineering expense |
2,285 | 1,556 | ||||||
Relocation expense |
— | 211 | ||||||
Operating income |
1,195 | 1,293 | ||||||
Add back: Depreciation and amortization |
376 | 470 | ||||||
Relocation expense |
— | 211 | ||||||
Adjusted EBITDA |
$ | 1,571 | $ | 1,974 | ||||
Net income |
$ | 598 | $ | 589 | ||||
Provision for income taxes |
433 | 426 | ||||||
Depreciation and amortization |
376 | 470 | ||||||
Relocation expense |
— | 211 | ||||||
Interest expense |
134 | 214 | ||||||
Other expense-net |
30 | 64 | ||||||
Adjusted EBITDA |
$ | 1,571 | $ | 1,974 | ||||
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