Air Industries Group Announces Improved Operating Results for Second Quarter Ended June 30, 2023 and Provides Comments on Business Outlook
Conference Call Scheduled for
Commenting on the recent results,
Second Quarter 2023 Results
-
Consolidated net sales for the second quarter ended
June 30, 2023 were$13.2 million , representing an increase of$656,000 or 5.0% from$12.5 million reported for the first quarter of 2023. Second quarter 2023 net sales were lower by$803,000 or (5.7%) compared with sales of$14.0 million reported for the second quarter of 2022. -
Consolidated gross profit for the second quarter of 2023 was
$2.2 million , an increase of$289,000 or 13.3% from$1.9 million in the 2023 first quarter. Second quarter 2023 gross profit was lower by$253,000 or (10.5%) compared with$2.4 million in the second quarter of 2022. - Gross profit margin was 16.4% of sales for the second quarter of 2023, 15.0% for the first quarter of 2023, and 17.3% for the second quarter of 2022.
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Operating expenses for the second quarter of 2023 were
$2.1 million , slightly higher than$2.0 million in the first quarter of 2023, and lower than$2.2 million in the 2022 second quarter. -
The Company achieved operating income of
$90,000 in the second quarter of 2023 compared with an operating loss of$158,000 in the first quarter of 2023 and operating income of$250,000 in the second quarter of 2022. -
Interest and financing costs for the three months ended
June 30, 2023 were$500,000 compared with$476,000 in the first quarter of 2023, and$289,000 for the three months endedJune 30, 2022 . The increases in interest expense resulted from increases in the prime rate and from higher loan balances. -
Net loss for the second quarter of 2023 was reduced to
$395,000 versus a net loss of$618,000 in the first quarter of 2023. The net loss in the second quarter of 2022 was$7,000 .
Six-Month 2023 Results
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Consolidated net sales for the six months ended
June 30, 2023 were$25.8 million compared with$26.1 million in the same period of 2022, a slight decrease of$316,000 or (1.2.%). -
Consolidated gross profit for the six months ended
June 30, 2023 was$4.0 million versus$4.5 million in the 2022 period, a decrease of$451,000 or (10.0%). Gross profit margin was 15.7% of sales for the six months endedJune 30, 2023 compared with 17.3% for the first six months of 2022. -
Operating expenses for the six months ended
June 30, 2023 were$4.1 million , increasing$53,000 from$4.0 million in the 2022 period. -
The operating loss for the six months ended
June 30, 2023 was$47,000 compared with operating income of$457,000 reported for the 2022 period. -
Interest and financing costs for the six months ended
June 30, 2023 were$996,000 compared with$612,000 in the 2022 period, an increase of$384,000 or 62.7%, mainly due to the effect of increases in the prime rate and from higher loan balances. -
Net loss for the six months ended
June 30, 2023 was$1.0 million , compared with a net loss of$35,000 in the 2022 period. -
Adjusted EBITDA for the six months ended
June 30, 2023 was$1.6 million .
Reconciliation of Net (Loss) to Adjusted EBITDA (in thousands)
For the Six Months Ended |
|||||
Net Loss |
$ |
(1,013 |
) |
||
Add-backs to EBITDA | |||||
Interest |
|
956 |
|
||
Taxes |
|
- |
|
||
Depreciation & Amortization |
|
1,273 |
|
||
EBITDA |
|
1,216 |
|
||
Add-backs to Adjusted EBITDA | |||||
|
163 |
|
|||
Stock Compensation |
|
232 |
|
||
Adjusted EBITDA |
$ |
1,611 |
|
||
Additional information about the Company can be found in its filings with the
Investor Conference Call
Management will host a conference call on
Conference Toll-Free Number 877-524-8416
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
Adjusted EBITDA
The Company uses Adjusted EBITDA, a Non-GAAP financial measure as defined by the
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Investor Relations
631.328.7078
ir@airindustriesgroup.com
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