Air Industries Group Announces Significantly Improved Financial Results for the Three and Twelve Months Ended December 31, 2021
Full-Year Operating Income Improved by Nearly
Three Months ended
- Consolidated net sales for the three months ended
December 31, 2021were $15.4 million, increasing $0.9 millionor 6.2% from $14.5 millionin 2020.
- Consolidated gross profit for the three months ended
December 2021was $3.8 million, which included $1.2 millionat year-end to update the estimated gross profit percentages used for the prior three quarters of 2021, based on the Company’s annual inventory count and valuation for the year. During the first three quarterly periods of 2021, gross profit had been estimated based on more conservative historical information.
- Operating expenses for the three months ended
December 31, 2021were $2.0 million, an increase of $141,000or 7.5% from $1.9 millionin 2020.
- Operating income for the three months of 2021 was
$1.8 million, including the $1.2 milliondescribed above, compared to operating income of $173,000in 2020.
- Interest and financing costs for the three months ended
December 31, 2021were $303,000, declining $20,000or 6.1% compared to $323,000in 2020.
- Net Income for the three months ended
December 31, 2021was $1.6 million. In the comparable period of 2020, the Company recorded income from continuing operations of $1.3 million, which included $2.4 millionfrom forgiveness of the Paycheck Protection Program (PPP) loans. Before the PPP loan forgiveness, the loss from continuing operations in the three months ended December 31, 2020was $1.1 million.
For the year ended
- Consolidated net sales for the year ended
December 31, 2021were $58.9 million, an increase of $8.8 million, or 17.7%, compared to $50.1 millionin 2020.
- Consolidated gross profit for year ended
December 31, 2021was $10.3 million, an increase of $3.8 millioncompared to $6.5 millionin 2020. Gross profit as a percentage of sales was 17.4% in 2021, an increase of 4.4 percentage points compared to 13.0% in 2020.
- Operating expenses for year ended
December 31, 2021were $7.8 million, a decline of $154,000or 2% as compared to $8.0 millionof operating expenses in 2020.
- Operating income for year ended
December 31, 2021was $2.5 millionas compared to an operating loss of $1.4 millionin 2020.
- Interest and financing costs for year ended
December 31, 2021were $1.3 million, a decline of $225,000or 15.2% as compared to $1.5 millionin 2020.
- Net Income for the year ended
December 31, 2021was $1.6 million. In 2020, income from continuing operations was $1.3 million, which included $2.4 millionin income from forgiveness of the PPP loans and an income tax benefit of $1.4 millionresulting from a tax refund from tax law changes enacted in the CARES Act. Before these items, net income for 2021 of $1.6 millionincreased $4.1 millioncompared to a net loss of $2.5 millionin 2020.
- Adjusted EBITDA, including stock compensation expense, for 2021 was approximately
$6.3 millioncompared to $4.4 millionfor 2020, which included $3.8 millionin PPP loan forgiveness and Covid tax benefits described above.
|Adjusted EBITDA||Twelve Months Ended
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|Depreciation & Amortization||
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“We are particularly pleased with the improvement of our gross margin, which increased by 4.4 percentage points to 17.4% of sales. In 2020 and 2021 we were in the final years of several Long-Term Agreements (LTA) with fixed pricing resulting in modest profit margins. As these programs wound down, we were able to shift our production to higher margin product. The results speak for themselves. We expect our gross margin to remain at this level and perhaps improve in 2022.
“Our operating expenses remain well controlled, declining slightly in 2021 from 2020 levels. Since 2017, my first year as CEO, our operating expenses from continuing operations have declined by approximately
“Air Industries improved results in 2021 have bolstered our Balance Sheet. At
- Inventory which had increased significantly during the Covid disruption of 2020 was reduced by
- Accounts Payable & Accrued Expenses were reduced by
$2.0 millionor 22.9%. Accounts Payable & Accrued Expenses are now equal to just 36 Days-of-Sales,
- Our Revolving Credit Line and Term Loan with
Webster Bank(f/k/a Sterling National Bank) has been reduced $4.4 millionor 22%.
“We have been comfortably in compliance with the Financial Covenants of our loan agreement since the inception in
“Beginning in the second half of 2020 and during 2021, we have made significant investments in machinery & equipment to enhance competitiveness, speed through-put and increase profitability. This investment continues. We currently have two large new machines on order costing approximately
“Air Industries’ business is overwhelmingly military aircraft. The sad and unfortunate events of recent days in
Additional information about the Company can be found in its filings with the
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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