Wesco Aircraft Holdings, Inc. (“Wesco Aircraft” or the “Company”) (NYSE: WAIR), a leading provider of comprehensive supply chain management services to the global aerospace industry, today announced results for its fiscal first quarter ended December 31, 2012.
Fiscal 2013 First Quarter Results
- Revenue of $211.2 million, up 9.7% compared to $192.6 million in the prior year
- Net Income of $18.4 million, with Diluted Earnings Per Share of $0.19
- Adjusted Net Income of $24.1 million, with Adjusted Diluted Earnings Per Share of $0.25
- Full year 2013 guidance unchanged for sales of $865 to $890 million, Diluted EPS of $1.08 to $1.12, and Adjusted Diluted EPS of $1.14 to $1.19.
Revenue for the first fiscal quarter was $211.2 million, an increase of 9.7% compared to $192.6 million in the prior year period. The increase in the North America segment was 10.3% which was mainly driven by the Interfast acquisition. Wesco again demonstrated strong international growth during the quarter with revenues in the Rest of World segment increasing by 32.9% compared to the prior year. In the first quarter, Ad Hoc, JIT and LTA sales as a percentage of net sales represented 40%, 26% and 34%, respectively, compared to 35%, 31% and 34%, respectively, for the same period last year.
Net income for the first quarter was $18.4 million, resulting in Diluted Earnings Per Share of $0.19. This compares to $23.2 million, or $0.24 per share in the prior year period. The reduction in Diluted Earnings Per Share was primarily the result of a write-off of deferred financing costs associated with the recent refinancing of the Company's debt and credit facilities (approx. $0.03 per share) and integration costs associated with the recent acquisition of Interfast ($0.01 per share). Excluding these and other unusual items, Adjusted Net Income was $24.1 million and Adjusted Earnings Per Share was $0.25 in the first quarter of 2013 as compared to $24.3 million or $0.26 per share in the prior year period. The current year period benefitted from higher sales, primarily due to the Interfast acquisition, and a lower tax rate. Offsetting these benefits were lower gross margins due to changes in the hardware sales mix as well as lower margin electronic product sales growing more rapidly than our hardware sales along with the addition of SG&A costs associated with the Interfast business.