LMI Aerospace Announces Third Quarter 2016 Results

ST. LOUIS, Nov. 07, 2016 (GLOBE NEWSWIRE) -- LMI Aerospace Inc. (Nasdaq:LMIA) ("LMI" or the "Company"), a leading provider of design and aftermarket engineering services, and supplier of structural assemblies, kits and components to the aerospace and defense markets, announced its financial results for the third quarter ended September 30, 2016.

Key Developments and Highlights
  • Continuing to win new work - Awarded an additional $85,000 per shipset in new content on the Boeing 777X
  • Improving operating cost - On track to complete the closure of Wichita, Kan., sheet-metal operation in the fourth quarter
  • Investing for growth - Expanded machining capacity at Fredonia, Kan., facility in preparation for expected production rate increases starting in 2017
  • Strengthening balance sheet - Retired $10.0 million of senior secured notes during the third quarter, reducing interest expense going forward
  • Reaffirming 2016 and 2017 guidance -
    • Operating profit of $18 to $21 million and free cash flow of $10 to $15 million in 2016
    • Revenue outlook in 2017 of $370 to $400 million, representing a sizable increase over 2016 guidance of $345 to $355 million
    • Revenue CAGR of 9 percent from 2015 through 2018, and EBITDA margin improvement of 300-plus basis points over the same period

Third Quarter Results

For the third quarter of 2016, net sales were $89.7 million, compared to $95.6 million in the third quarter of 2015. Net income of $0.3 million, or $0.02 per diluted share, was realized in the third quarter of 2016, compared to net income of $0.03 million, or break-even per diluted share, in the third quarter of 2015.

Operating income for the third quarter of 2016, excluding $0.1 million of net unfavorable, non-recurring items, was $5.8 million. Diluted earnings per share, excluding the impact of non-recurring items, was $0.04 in the third quarter of 2016. Operating income and operating income excluding unusual items were both $6.1 million for the third quarter of 2015. Non-recurring items in the third quarter of 2015 were comprised of a lawsuit settlement net gain of $3.3 million, an unfavorable cumulative catch-up adjustment of $1.7 million, and restructuring and other costs of $1.6 million. Diluted earnings per share, excluding the impact of non-recurring items, was break-even in the third quarter of 2015.

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