BENSALEM, Pa., May 15, 2013 /PRNewswire/ -- Precision Aerospace Components Inc. (PAOS:OTCQB) is a one-stop source for standard, self-locking, semi-special and special nuts, bolts and washers manufactured to several military, aerospace and industrial specifications. The Company maintains an inventory of approximately 44,000 SKUs comprised of approximately 65 million parts of premium quality, brand name fastener products.
Precision Aerospace Components announces results from operations for the three months ending March 31, 2013. The Company's revenues increased approximately 242% or $5.1 million for the quarter to $7.2 million from $2.1 million in the comparable period last year. This is largely a result of the Fastener Distribution and Marketing Company, Inc., (FDMC) acquisition completed on May 25, 2012.
The Company's gross profit increased approximately 211% or $1.3 million for the quarter to $1.9 million from $0.6 million in the comparable period last year. The Company believes that its gross profit will remain at the current levels during 2013, based on discussions with its primary customers. The Company's total operating expenses increased 188% or $1.0 million for the quarter to $1.6 million from $0.6 million in the comparable period last year. This is largely a result of the acquisition and costs associated with the acquisition. Net income was $51,373 which was essentially flat compared to the fourth quarter of 2012.
The Company's accounts receivable have increased by approximately $0.5 million to $3.4 million at March 31, 2013 from $3.0 million at December 31, 2012; this difference is due to mainly to sales and normal deviations in customer payments. The Company's inventory levels have remained relatively consistent as of March 31, 2013 compared to December 31, 2012. Net income was $51,373 which was essentially flat compared to the fourth quarter of 2012.During the first quarter of 2013, the Company completed the last phase of its relocation and consolidation of the activities of its headquarters operations, as well as the operations of its Freundlich Supply Company Inc. and Tiger-Tight Inc. subsidiaries from Staten Island New York to Bensalem, Pennsylvania, at the present location of its Aero-Missile Components Inc. subsidiary. This relocation allows the Company to better serve its customers through the co-location of its broadened inventory and is enabling the Company to realize additional efficiencies from its recent acquisition. As a result of this relocation, the Company is achieving significant and continuing savings from the elimination of the facilities costs associated with its Staten Island location. Additionally, the lower overall tax environment outside of New York City and State is beneficial to the Company. During the third quarter of 2013, the Company anticipates starting shipment of a unique sealing product that it has developed in conjunction with one of the major manufacturers and its customer to fulfill specific customer needs. The product should fulfill similar needs with other customers. The product addresses current product offering technical shortfalls by increasing resistance to torque out and providing an optional self-sealing feature.
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