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LMI Aerospace, Inc. Announces Second Quarter 2013 Results

Stocks in this article: LMIA

ST. LOUIS, Aug. 8, 2013 (GLOBE NEWSWIRE) -- LMI Aerospace, Inc. (Nasdaq:LMIA), a leading provider of design engineering services and supplier of structural assemblies, kits and components to the aerospace and defense markets, today announced its financial results for the second quarter ended June 30, 2013.

Second Quarter 2013 Highlights

  • Growth in sales of the company's legacy Aerostructures business of $9.2 million was partially offset by a reduction in sales of Engineering Services
  • Firm backlog as of June 30, 2013, was $421.0 million
  • Quarter includes an elimination of contingent consideration for potential earn-out payments of $8.0 million related to the Valent acquisition, but offset in part by a $4.2 million impairment of a 2007 intangible asset trade name in Engineering Services
  • Guidance for 2013 revised. 2014 guidance expected to be issued in November 2013.

Second Quarter Results

Net sales for the second quarter of 2013 increased 52.1 percent to $105.5 million, compared to $69.3 million in the second quarter of 2012, primarily as a result of the inclusion of Valent Aerostructures, LLC ("Valent") in the 2013 period. Net income for the second quarter of 2013 was $4.7 million, or $0.37 per diluted share ($0.18 excluding the impact of the elimination of contingent consideration and impairment of an intangible asset), compared to $5.1 million, or $0.43 per diluted share, in the second quarter of 2012. The following table illustrates the company's net income, excluding the impact of the acquisition of Valent, cumulative catch-up adjustments and non-recurring items in the quarter for comparative purposes.

    Per Diluted
  Q2 2013 Share
     
Net income  $4,664  $0.37
Interest expense, net of tax  2,560  0.20
Intangible asset impairment, net of tax  2,673  0.21
Contingent consideration write-off, net of tax  (5,032)  (0.40)
Cumulative catch-up adjustments, net of tax  728  0.06
Valent net income  (1,415)  (0.11)
Net income excluding Valent, cumulative catch-up adjustments and non-recurring items  $4,178  $0.33

"Sales of our legacy Aerostructures products and at Valent plants continued to grow, but continued weakness in Engineering Services demand caused overall sales to fall below our estimates," said Ronald S. Saks, Chief Executive Officer of LMI. "During the second quarter, sales order flow began to slow and that trend will likely continue for the balance of 2013, as delivery of products from some Aerostructures customers were deferred into 2014. Aerostructures deliveries for both the LMI legacy business and Valent are expected to increase in the second half of 2013 yet be lower than previous guidance. Engineering Services backlog stabilized at lower levels, and we expect the results for the second half of 2013 will be similar to the results for the first half.

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