Backlog at December 31, 2010, was $221.5 million compared to $218.7 million at the end of 2009.
Outlook for 2011
The company also updated its guidance for 2011, adding to revenue expectations for the Engineering Services segment. The government's recent selection of Boeing's 767 as the refueling tanker should provide additional opportunities for this segment during 2011. On a consolidated basis, the company now expects revenue to range between $259 million and $271 million and gross profit to be between 23.6 percent and 24.7 percent. The company expects to increase our SG&A range to $33.8 million to $35.2 million, as we expect additional head count and professional fees to support our growth initiatives. Net interest expense is expected to be between $550,000 and $650,000 for the year, and the effective tax rate is expected to be approximately 34 percent. Capital expenditures are planned to range between $12.0 and $14.0 million. Depreciation, amortization and stock compensation expense is expected to be approximately $9.0 million. Free cash flow for 2011 is expected to be approximately $15.0 million. The expectations for each segment are as follows:
- Net sales of between $175.0 million and $181.0 million
- Gross profit of between 26.5 percent and 27.5 percent
- SG&A of between $26.0 million and $27.0 million
- Net sales of between $84.0 million and $90.0 million
- Gross profit of between 17.5 percent and 19.0 percent
- SG&A of between $7.8 million and $8.2 million
"As we look forward, we believe the next few years offer us significant opportunities to grow our company organically," Saks said. "Our customers are expected to transfer work because of unprecedented production rate increases and may also provide meaningful opportunities to provide design and build services on new projects. We also expect to grow our capabilities by making acquisitions of composite and machining providers during this period. The benefits to be derived from higher production rates and growth in our legacy engineering services business should assist us in financing the investments necessary to support higher production rates and should also add to the long-term value of LMI, benefiting all of our stakeholders." LMI Aerospace, Inc. is a leading provider of design engineering services, structural assemblies, kits and components to the aerospace, defense and technology markets. Through its Aerostructures segment, the company primarily fabricates, machines, finishes, integrates, assembles and kits formed close tolerance aluminum and specialty alloy and composite components and higher level assemblies for use by the aerospace, defense and technology industries. It manufactures more than 30,000 products for integration into a variety of aircraft platforms manufactured by leading original equipment manufacturers and Tier 1 aerospace suppliers. Through its Engineering Services segment, operated by its D3 Technologies, Inc. subsidiary, the company provides a complete range of design, engineering and program management services, supporting aircraft product lifecycles from conceptual design, analysis and certification through production support, fleet support and service life extensions via a complete turnkey engineering solution.