Air Industries Group Announces Financial Results for the Three Months Ended March 31, 2023
Conference Call Scheduled for
First Quarter 2023 Comparisons
Consolidated net sales for the three months ended
March 31, 2023were $12.5 million, an increase of $487,000or 4.0% from the first quarter of 2022. First quarter 2023 net sales were lower by $1.3 millionor (9.7%) compared with sales of $13.9 millionreported for the fourth quarter of 2022 ended December 31, 2022.
Consolidated gross profit for the first quarter of 2023 was
$1.9 millioncompared with $2.1 millionin the first quarter of 2022 and $1.6 millionin the fourth quarter of 2022. The fourth quarter of 2022 included realized losses and an accrual for estimated future losses totaling $850,000related to a single unprofitable contract as previously reported. The Company also corrected its policy for determining the reserve for slow-moving and excess inventory, which led to an increase in the reserve, further decreasing the gross profit and gross profit percentage for the fourth quarter of 2022.
- Gross profit margin was 15.0% of sales for the first quarter of 2023, 17.2% for the first quarter of 2022, and 5.1% for the fourth quarter of 2022.
Operating expenses for the first quarter of 2023 were
$2.04 million, an increase of $167,000or 8.9% from $1.88 millionin the first quarter of 2022, and an increase of $508,000or 33.2% from $1.53 millionin the 2022 fourth quarter.
The operating loss for the first quarter of 2023 was
$158,000, versus operating income of $207,000in the first quarter of 2022, and an operating loss of $830,000in the fourth quarter of 2022.
Interest and financing costs for the three months ended
March 31, 2023were $476,000compared with $323,000in the first quarter of 2022, and $403,000for the three months ended December 31, 2022. The increases in interest expense resulted from increases in the prime rate and from higher loan balances.
Net loss for the first quarter of 2023 was
$618,000versus a net loss of $28,000in the first quarter of 2022, and a net loss of $899,000in the fourth quarter of 2022.
“Air Industries’ results for the first quarter of 2023 continued to reflect the supply chain disruption that has challenged our industry since the onset of the pandemic. Specifically, our ability to process and deliver product was hampered by delays in receiving raw materials, especially the high-performance alloys that are a mainstay of many aviation components. We are making every effort to overcome these supply chain bottlenecks.
“At the same time, we are excited about the opportunities that lie ahead as we pivot to future growth prospects. We are building on our solid position in the defense ecosystem by expanding our penetration of existing platforms, adding new platforms, and targeting new markets. Specifically, we will focus on markets that offer attractive sales and margin potential, and where our capabilities and competitive strengths will enable us to take advantage of those opportunities in the near-to-mid-term.
“For example, we are actively seeking additional business in our traditional markets of military fixed-wing and rotary aircraft, as well as commercial aircraft engine components. We also are making solid progress with our recent entry into the nuclear submarine market, which aligns well with our core competencies and has the potential to be a significant addition to our business going forward.
“During the balance of 2023 and beyond,
Investor Conference Call
Management will host a conference call on
Conference Toll-Free Number 877-524-8416
Additional information about the Company can be found in its filings with the
Forward Looking Statements
Certain matters discussed in this press release are 'forward-looking statements' intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. In particular, the Company's statements regarding trends in the marketplace, future revenues, earnings and Adjusted EBITDA, the ability to realize firm backlog and projected backlog, cost cutting measures, potential future results and acquisitions, are examples of such forward-looking statements. The forward-looking statements are subject to numerous risks and uncertainties, including, but not limited to, the timing of projects due to variability in size, scope and duration, the inherent discrepancy in actual results from estimates, projections and forecasts made by management, regulatory delays, changes in government funding and budgets, and other factors, including general economic conditions, not within the Company's control. The factors discussed herein and expressed from time to time in the Company's filings with the
The Company uses Adjusted EBITDA, a Non-GAAP financial measure as defined by the