Message #26 From:
Stock News Bot Date: August 15, 2006 05:00:00 AM
GACF News Global Aircraft Solutions Inc. (GACF) Announces Second Quarter Financial Results
TUCSON, Ariz.--(BUSINESS WIRE)--Aug. 15, 2006--Global Aircraft Solutions Inc. (OTCBB: GACF)
-- Consolidated revenues increase 15.5% compared to second quarter 2005
-- Net profit before taxes increase 112% compared to second quarter 2005
-- EBITDA increases 97% compared to first six months of 2005
-- Company reports net profit of $1,055,376 ($0.03 per share) for second quarter
-- Company would have reported record pre-tax profit of $2.13 million for the second quarter if not for extraordinary one-time expense of $686,710
Global Aircraft Solutions Inc., an integrated aviation company engaged in aircraft trading and aircraft parts sales, and providing scheduled maintenance, repair and overhaul (MRO) services for commercial airlines, charter airlines and aviation leasing companies, today announced financial results for the second quarter 2006.
Revenue for the second quarter 2006 was $10.2 million, a 15.5% increase compared to the $8.83 million reported for the second quarter of 2005. Net profit for the second quarter of 2006 was $1,055,376 versus earnings of $682,167 for the second quarter of 2005, representing a 54.7% increase. The company reported net profit before taxes of $1,443,926 for the quarter versus $682,212 for the second quarter 2005, an increase of 112%. However, the cost of sales for Global includes the cost of an engine in the amount of $686,710. This engine had to be purchased to replace one damaged during shipping. The company has initiated a suit to recover this amount from the freight company involved. Absent of this one-time extraordinary event, Global's second quarter pre-tax income would have been approximately $2.13 million. Management expects that the company will recoup this expense, and perhaps additional damages, through litigation or insurance claims. EBITDA increased 97% from $1.96 million in the first six months of 2005 to $3.85 million in the first six months of 2006. Capital expenditures for the quarter were $27,140 compared to $29,681 in the second quarter 2005. Our balance sheet reflected an improved current ratio of 1.34 from 1.30 at Dec. 31, 2005. Additionally, our stockholder's equity improved to $16.5 million or $.42 per share.
The company is presently divided into three business segments. Hamilton Aerospace, a wholly owned subsidiary, manages all aircraft maintenance. World Jet, another wholly owned subsidiary, manages substantially all aircraft parts sales. The third business segment, aircraft trading, is managed directly by the parent company, Global Aircraft Solutions. Prior to the deduction of $2,077,035 in inter-company eliminations, and after the addition of $968,933 in income contributed by JetGlobal, in the second quarter 2006 Hamilton Aerospace Technologies (HAT) contributed a record $6.8 million in revenue and a record pre-tax operating profit of $1.23 million, World Jet contributed $3.2 million in revenue and a pre-tax operating profit of $286,555, while the parent company Global, including our joint venture, JetGlobal, contributed $1.3 million in revenue for the quarter and a pre-tax operating profit of $35,584 through its aircraft trading activities. It should be noted, however, that the cost of sales for our Global business segment includes the one-time extraordinary engine expense described above.
GACF Chairman Ian Herman commented, "The focus we have brought to bear on our core aircraft maintenance business segment over the last three quarters continues to bear fruit, as evidenced by Hamilton Aerospace's record revenue and bottom line numbers this quarter. We believe that there still remain additional efficiencies to be achieved at HAT, and we are looking forward to even greater contributions from our aircraft maintenance business in the future. The management at Global is now bringing the same level of attention to World Jet, and we have begun to take steps that, over time, we believe will result in similar performance improvements and allow the company to better capitalize upon the tremendous potential that exists in World Jet's aircraft parts sales business. Finally, although Global's aircraft trading segment had a reduced bottom line contribution this quarter due to an engine-shipping incident that was beyond our control, management remains absolutely confident that our aircraft trading business segment has the potential for dramatic growth and that it will, over time, deliver 'homerun' business opportunities that will have significant positive effects on the company's long-term financial performance. In short, barring unusual unexpected changes in the aerospace industry business environment, the management of Global Aircraft Solutions remains optimistic that the company will be able to continue its current trend of strong growth coupled with solid profitability for the foreseeable future."
Conference Call Reminder
The conference call will take place at 4:30 p.m. Eastern, on Tuesday, Aug. 15, 2006. Anyone interested in participating should call 888-424-6234 if calling within the United States or 973-321-1020 if calling internationally approximately 5 to 10 minutes prior to 4 p.m. There will be a playback available until Aug. 22, 2006. To listen to the playback, please call 877-519-4471 if calling within the United States or 973-341-3080 if calling internationally. Please use pass code 7734068 for the replay.
Global Aircraft Solutions provides parts support and maintenance, repair and overhaul (MRO) services for large passenger jet aircraft to scheduled and charter airlines and aviation leasing companies. Hamilton Aerospace and World Jet, both divisions of Global Aircraft Solutions, operate from adjacent facilities comprising about 35 acres located at Tucson International Airport. These facilities include hangars, workshops, warehouses, offices and other buildings. Notable customers include debis AirFinance, BCI Aircraft Leasing, Q Aviation, Falcon Air Express, Jetran International, Goodrich Corp., AAR, National Jet Systems, Pemco, San Antonio Aerospace, Pegasus Aviation, Shaheen Airlines, Iraqi Airways, and Aero California.
Except for the historical information presented, the above statements are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 or regulations thereunder. These forward-looking statements are subject to risks and uncertainties, and actual results may differ materially. These risks include the economic health of the airline industry, demand for Global Aircraft Solutions' services, and competitive pricing pressures. In addition, other risks are detailed in Global's Form 10-KSB filed on April 10, 2006 and amended on April 14, 2006. These statements speak only as of above dates, and Global disclaims any intent or obligation to update them.
GLOBAL AIRCRAFT SOLUTIONS INC.
Condensed Consolidated Balance Sheet
Dec. 31, 2005 and June 30, 2006
ASSETS
2005 2006
(audited) (unaudited)
----------- -----------
CURRENT ASSETS
Cash and cash equivalents $ 368,013 $ 176,419
Accounts receivable 4,993,138 8,644,220
Note receivable 1,997,868 1,026,896
Inventory 6,580,092 5,988,341
Restricted funds 98,500 98,500
Other current assets 304,987 192,999
----------- -----------
TOTAL CURRENT ASSETS $14,342,598 $16,127,375
Property, plant and equipment 1,642,141 1,457,967
Investment 25,000 25,000
Equity in net assets of and advances to
affiliates 6,333,690 7,846,089
Customer list, net 133,886 66,943
Agreement with vendor, net 28,490 14,245
Goodwill 38,992 38,992
Inventory, non-current 2,187,343 2,568,395
Deferred income taxes 130,000 297,348
Other assets 192,481 61,426
----------- -----------
TOTAL ASSETS $25,054,621 $28,503,780
=========== ===========
The accompanying notes included in the Form 10-QSB for the quarter ending June 30, 2006, but not attached hereto in this press release, are an integral part of these condensed consolidated financial statements.
GLOBAL AIRCRAFT SOLUTIONS INC.
Condensed Consolidated Balance Sheet
Dec. 31, 2005 and June 30, 2006
LIABILITIES AND STOCKHOLDERS' EQUITY
2005 2006
(audited) (unaudited)
----------- -----------
CURRENT LIABILITIES
Notes payable - short term $ 2,564,739 $ 4,811,929
Accounts payable - trade 7,181,397 3,438,846
Customer deposits 69,193
Billings in excess of costs and estimated
earnings on contracts in progress 23,458 906,625
Accrued liabilities 570,724 766,369
Income taxes payable 685,904 2,007,088
Commitments and contingencies
----------- -----------
TOTAL CURRENT LIABILITIES $11,026,222 $12,000,050
----------- -----------
TOTAL LIABILITIES $11,026,222 $12,000,050
=========== ===========
STOCKHOLDERS' EQUITY
Common stock, $.001 par value, 100,000,000
shares authorized and 38,998,215 and
39,470,354 shares issued 2005 and 2006 and
30,650,386 and 39,090,183 shares
outstanding 2005 and 2006. $ 38,998 $ 39,470
Additional paid-in capital 11,904,673 12,237,265
Deferred compensation (80,000) (116,500)
Contributed capital 620,289 620,289
Retained earnings 1,544,409 3,723,206
----------- -----------
TOTAL STOCKHOLDERS' EQUITY $14,028,399 $16,503,730
=========== ===========
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $25,758,012 $28,503,780
=========== ===========
The accompanying notes included in the Form 10-QSB for the quarter ending June 30, 2006, but not attached hereto in this press release, are an integral part of these condensed consolidated financial statements.
GLOBAL AIRCRAFT SOLUTIONS INC.
Condensed Consolidated Statement of Operations
For the Three Months and Six Months ended June 30, 2005 and 2006
(unaudited)
Three Three Six Six
Months Months Months Months
ended ended ended ended
June 30, June 30, June 30, June 30,
2005 2006 2005 2006
Net sales $ 8,829,378 10,198,651 17,481,614 21,707,374
Cost of sales (6,375,131) (7,768,045) (12,674,327) (15,303,454)
Inventory write
down (55,208) (110,417)
----------- ----------- ------------ ------------
Gross profit $ 2,399,039 $ 2,430,606 $ 4,686,870 $ 6,403,920
Selling, general
and administrative
expense (1,738,041) (1,831,271) (3,366,775) (3,801,734)
Penalties (1,006) (11,171) (1,006) (11,171)
----------- ----------- ------------ ------------
Gain (loss) from
operations $ 659,992 $ 588,164 $ 1,329,089 $ 2,591,015
Other income
(expense):
Interest income 173,956 24,368 204,019 54,725
Interest
expense (170,402) (147,194) (304,391) (231,868)
Discounts taken 17,715
Miscellaneous
expense (116)
Miscellaneous
income 18,666 18,113 93,917 18,605
Gain (loss) on
asset disposal (8,518) (8,518)
Equity in
income of
unconsolidated
affiliates 968,993 923,121
----------- ----------- ------------ ------------
Net profit (loss),
Before taxes $ 682,212 $ 1,443,926 $ 1,340,349 $ 3,346,964
Estimated
taxes, State
and Federal (45) (388,550) (90) (1,168,187)
----------- ----------- ------------ ------------
Net profit (loss),
After taxes $ 682,167 $ 1,055,376 $ 1,340,259 $ 2,178,777
=========== =========== ============ ============
Net profit (loss)
per share, Basic
2006 2nd Qtr
39,011,179 shares,
Year to date
38,829,760 shares;
2005 2nd Qtr
30,700,386 shares,
Year to date
30,695,693 shares.$ 0.02 $ 0.03 $ 0.04 $ 0.06
Net profit (loss)
per share, Fully
diluted 2006 2nd
Qtr 40,363,176
shares, Year to
date 40,786,236
shares; 2005 2nd
Qtr 34,623,863
shares, Year to
date 33,980,830
shares. $ 0.02 $ 0.03 $ 0.04 $ 0.05
=========== =========== ============ ============
The accompanying notes included in the Form 10-QSB for the quarter ending June 30, 2006, but not attached hereto in this press release, are an integral part of these condensed consolidated financial statements.
