Air Industries Group Reports Strong Q3 2024 Results and Reaffirms Positive Fiscal 2024 Outlook with Expanding Backlog and Improved Profit Margins
Air Industries Group (AIRI) reported Q3 2024 financial results showing revenue growth of 2.1% to $12.56 million and improved gross margin of 15.5%, up from 10.0% in Q3 2023. The company significantly reduced its net loss to $404,000, a 69% improvement from Q3 2023. For the nine months ended September 30, 2024, revenue grew 5.6% to $40.19 million with operating profit reaching $560,000, compared to a loss in 2023. The company's backlog exceeded $105 million, up 22% since January 2023, with a book-to-bill ratio of 1.40x. AIRI reaffirmed its target of achieving at least $50.0 million in net sales for fiscal 2024.
Air Industries Group (AIRI) ha riportato i risultati finanziari del terzo trimestre 2024, mostrando una crescita dei ricavi del 2,1% a $12,56 milioni e un miglioramento del margine lordo del 15,5%, rispetto al 10,0% del Q3 2023. L'azienda ha ridotto significativamente la sua perdita netta a $404.000, un miglioramento del 69% rispetto al Q3 2023. Nei nove mesi terminati il 30 settembre 2024, i ricavi sono cresciti del 5,6% a $40,19 milioni, con un profitto operativo di $560.000, rispetto a una perdita nel 2023. L'ordine accumulato dell'azienda ha superato i $105 milioni, con un aumento del 22% dal gennaio 2023, e un rapporto book-to-bill di 1,40x. AIRI ha confermato il suo obiettivo di raggiungere almeno $50,0 milioni in vendite nette per l'anno fiscale 2024.
Air Industries Group (AIRI) ha dado a conocer los resultados financieros del tercer trimestre de 2024, mostrando un crecimiento en los ingresos del 2.1% hasta $12.56 millones y una mejora en el margen bruto del 15.5%, en comparación con el 10.0% del tercer trimestre de 2023. La empresa redujo significativamente su pérdida neta a $404,000, lo que representa una mejora del 69% con respecto al tercer trimestre de 2023. En los nueve meses que finalizaron el 30 de septiembre de 2024, los ingresos crecieron un 5.6% hasta $40.19 millones, con un beneficio operativo de $560,000, en comparación con una pérdida en 2023. La cartera de pedidos de la empresa superó los $105 millones, un aumento del 22% desde enero de 2023, con una relación book-to-bill de 1.40x. AIRI reafirmó su objetivo de alcanzar al menos $50.0 millones en ventas netas para el año fiscal 2024.
에어 산업 그룹 (AIRI)는 2024년 3분기 재무 결과를 발표하며 수익이 2.1% 증가한 1,256만 달러를 기록하고, 총 마진이 15.5%로 개선되어 2023년 3분기의 10.0%에서 상승했다고 밝혔습니다. 회사는 순손실을 404,000달러로 크게 줄여 2023년 3분기 대비 69% 개선되었습니다. 2024년 9월 30일로 종료된 9개월 동안 수익은 5.6% 증가하여 4,019만 달러에 달하며, 운영 이익은 56만 달러에 달해 2023년의 손실과 비교되었습니다. 회사의 미결주문은 1억 5백만 달러를 초과했으며, 2023년 1월 이후 22% 증가하였고, 북투빌 비율은 1.40배입니다. AIRI는 2024 회계연도에 최소 5천만 달러의 순매출을 달성한다는 목표를 재확인했습니다.
Air Industries Group (AIRI) a publié les résultats financiers du troisième trimestre 2024, montrant une croissance des revenus de 2,1 % à 12,56 millions de dollars et une amélioration de la marge brute à 15,5 %, contre 10,0 % au T3 2023. L'entreprise a considérablement réduit sa perte nette à 404 000 dollars, soit une amélioration de 69 % par rapport au T3 2023. Pour les neuf mois se terminant le 30 septembre 2024, les revenus ont augmenté de 5,6 % à 40,19 millions de dollars, avec un bénéfice opérationnel atteignant 560 000 dollars, par rapport à une perte en 2023. Le carnet de commandes de l'entreprise a dépassé 105 millions de dollars, soit une augmentation de 22 % depuis janvier 2023, avec un ratio commande-facturation de 1,40x. AIRI a confirmé son objectif d'atteindre au moins 50,0 millions de dollars de ventes nettes pour l'exercice 2024.
Air Industries Group (AIRI) hat die finanziellen Ergebnisse für das dritte Quartal 2024 veröffentlicht, die ein Umsatzwachstum von 2,1 % auf 12,56 Millionen USD und eine Verbesserung der Bruttomarge von 15,5 %, gegenüber 10,0 % im dritten Quartal 2023, zeigen. Das Unternehmen konnte seinen Nettoverlust erheblich auf 404.000 USD reduzieren, was einer Verbesserung von 69 % gegenüber dem dritten Quartal 2023 entspricht. In den neun Monaten bis zum 30. September 2024 wuchsen die Umsätze um 5,6 % auf 40,19 Millionen USD, wobei der Betriebsgewinn 560.000 USD erreichte im Gegensatz zu einem Verlust im Jahr 2023. Der Auftragsbestand des Unternehmens überstieg 105 Millionen USD, was einem Anstieg von 22 % seit Januar 2023 entspricht, und das Verhältnis von Auftragseingang zu Umsatz betrug 1,40x. AIRI bekräftigte sein Ziel, im Haushaltsjahr 2024 mindestens 50,0 Millionen USD Nettoumsatz zu erreichen.
- Revenue increased 2.1% in Q3 2024 and 5.6% for nine months
- Gross margin improved to 15.5% from 10.0% in Q3 2023
- Operating expenses reduced by $150,000 (7.4%) in Q3
- Backlog grew 22% since January 2023 to $105 million
- Book-to-bill ratio increased to 1.40x
- Operating profit reached $560,000 YTD vs $882,000 loss in 2023
- Net loss of $404,000 in Q3 2024
- Total debt increased by $1.67 million (7.1%) since December 2023
- Interest expense remains high at $482,000 for Q3
Insights
Air Industries Group shows meaningful operational improvements despite remaining unprofitable. Key positives include
However, concerns persist around the
The aerospace supplier's turnaround shows promise but needs to demonstrate sustained profitability to justify investment at current valuations.
Q3 2024 Financial Highlights (as compared to Q3 2023):
-
Revenues increased by
2.1% . -
Gross profit rose significantly by
$713,000 58% , resulting in gross margin of15.5% up from the10.0% achieved in 2023. -
Operating expenses were reduced by
$150,000 7.4% . -
Operating profit for the quarter was
$67,000 $796,000 -
Net loss narrowed to
$404,000 $895,000 69% over Q3 2023. -
Adjusted EBITDA (as defined below) was
$845,000 $898,000
| Third Quarter September (Unaudited) | |||||||||
|
2024 |
|
|
2023 |
|
||||
| Net Sales | $ |
12,555,000 |
|
$ |
12,293,000 |
|
|||
| Cost of Sales |
|
10,614,000 |
|
|
11,065,000 |
|
|||
| Gross Profit |
|
1,941,000 |
|
|
1,228,000 |
|
|||
| Gross Margin |
|
15.5 |
% |
|
10.0 |
% |
|||
| Operating Expense |
|
1,874,000 |
|
|
2,024,000 |
|
|||
| Operating Income |
|
67,000 |
|
|
(796,000 |
) |
|||
| Interest Expense |
|
(482,000 |
) |
|
(516,000 |
) |
|||
| Other Income (net) |
|
11,000 |
|
|
13,000 |
|
|||
| Income (Loss) before Income Taxes |
|
(404,000 |
) |
|
(1,299,000 |
) |
|||
| Income Taxes |
|
- |
|
|
- |
|
|||
| Net Income (Loss) | $ |
(404,000 |
) |
$ |
(1,299,000 |
) |
|||
| Net Income (Loss) per Share | $ |
(0.12 |
) |
$ |
(0.40 |
) |
|||
| Reconciliation of EBITDA To GAAP | |||||||||
| Net Income (Loss) | $ |
(404,000 |
) |
$ |
(1,299,000 |
) |
|||
| Interest Expense |
|
482,000 |
|
|
516,000 |
|
|||
| Depreciation |
|
560,000 |
|
|
614,000 |
|
|||
| Amortization |
|
17,000 |
|
|
34,000 |
|
|||
| Stock Compensation |
|
190,000 |
|
|
82,000 |
|
|||
| Adjusted EBITDA | $ |
845,000 |
|
$ |
(53,000 |
) |
|||
| All Amounts are Unaudited. | |||||||||
Nine Months Ended September 30, 2024 - Financial Highlights
Year-to-date results for the nine months also reflect strong progress compared to 2023:
-
Revenue grew by
5.6% . -
Gross profit increased by
$1,213,000 23% . -
Operating expenses decreased by
$229,000 3.7% . -
Operating profit reached
$560,000 $882,000 -
Net loss was reduced to
$812,000 $1,500,000 $2,312,000 -
Adjusted EBITDA was
$2,620,000 $1,134,000 76.3% , over the nine-month period of 2023.
| Nine Months September (Unaudited) | |||||||||
|
2024 |
|
|
2023 |
|
||||
| Net Sales | $ |
40,188,000 |
|
$ |
38,047,000 |
|
|||
| Cost of Sales |
|
33,697,000 |
|
|
32,769,000 |
|
|||
| Gross Profit |
|
6,491,000 |
|
|
5,278,000 |
|
|||
| Gross Margin |
|
16.2 |
% |
|
13.9 |
% |
|||
| Operating Expense |
|
5,931,000 |
|
|
6,160,000 |
|
|||
| Operating Income |
|
560,000 |
|
|
(882,000 |
) |
|||
| Interest Expense |
|
(1,418,000 |
) |
|
(1,472,000 |
) |
|||
| Other Income (net) |
|
46,000 |
|
|
42,000 |
|
|||
| Income (Loss) before Income Taxes |
|
(812,000 |
) |
|
(2,312,000 |
) |
|||
| Income Taxes |
|
- |
|
|
- |
|
|||
| Net Income (Loss) | $ |
(812,000 |
) |
$ |
(2,312,000 |
) |
|||
| Loss per Share | $ |
(0.24 |
) |
$ |
(0.71 |
) |
|||
| Reconciliation of EBITDA To GAAP | |||||||||
| Net Income (Loss) | $ |
(812,000 |
) |
$ |
(2,312,000 |
) |
|||
| Interest Expense |
|
1,418,000 |
|
|
1,472,000 |
|
|||
| Depreciation |
|
1,661,000 |
|
|
1,853,000 |
|
|||
| Amortization |
|
51,000 |
|
|
51,000 |
|
|||
| Stock Compensation |
|
302,000 |
|
|
422,000 |
|
|||
| Adjusted EBITDA | $ |
2,620,000 |
|
$ |
1,486,000 |
|
|||
| All Amounts are Unaudited. | |||||||||
2024 Business Outlook and Items of Note:
-
While the predictability of performance on large contracts and product deliveries remains difficult, Air Industries reaffirms its target of achieving at least
$50.0 million -
The Company’s backlog of undelivered, fully-funded customer orders surpassed
$105 million 4% increase since June 30, 2024, and a22% rise since January 1, 2023. - The Company’s book-to-bill ratio, which is bookings of new business divided by net sales increased to nearly 1.40x for the trailing twelve months ended September 30, 2024.
-
As of September 30, 2024, total debt was
$24,976,000 $1,666,000 7.1% from December 31, 2023. The Company is in compliance with its loan covenants and expects to remain in compliance for the balance of the year.
CEO Commentary
Lou Melluzzo, CEO of Air Industries commented, “Our results for the third quarter and year-to-date reflect continued improvement compared to the prior year. We expect this positive trend to continue in the foreseeable future. Our success is driven by executing our strategy including a sharp focus on:
- Portfolio Expansion – Deepening our engagement with existing customers.
- Aftermarket Strategy – Expanding our presence in the Maintenance, Repair and Overhaul sector, where profit margins are often higher.
- Industry Outreach – Increasing our visibility and reach with new customers.
“These efforts have strengthened our book-to-bill ratio and driven backlog growth across every quarter in 2023 and 2024. While supply chain challenges and on-boarding of new customers have caused some fluctuations, we remain focused on achieving profitable growth.”
Conference Call Information
As previously announced, the Company will host a conference call to discuss financial results as well as its 2024 business outlook. The call is scheduled for November 14, 2024, at 4:30 PM Eastern Time.
The conference call number is 877-524-8416 and will be made available for replay at www.airindustriesgroup.com.
ABOUT AIR INDUSTRIES GROUP
Air Industries Group is a leading manufacturer of precision components and assemblies for large aerospace and defense prime contractors. Its products include landing gears, flight controls, engine mounts and components for aircraft jet engines, ground turbines and other complex machines. Whether it is a small individual component or complete assembly, its high quality and extremely reliable products are used in mission critical operations that are essential for the safety of military personnel and civilians.
FORWARD LOOKING STATEMENTS
Certain matters discussed in this press release are 'forward-looking statements' intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. In particular, the Company's statements regarding trends in the marketplace, future revenues, earnings and Adjusted EBITDA, the ability to realize firm backlog and projected backlog, cost cutting measures, potential future results and acquisitions, are examples of such forward-looking statements. The forward-looking statements are subject to numerous risks and uncertainties, including, but not limited to, the timing of projects due to variability in size, scope and duration, the inherent discrepancy in actual results from estimates, projections and forecasts made by management, regulatory delays, changes in government funding and budgets, and other factors, including general economic conditions, not within the Company's control. The factors discussed herein and expressed from time to time in the Company's filings with the Securities and Exchange Commission could cause actual results and developments to be materially different from those expressed in or implied by such statements. The forward-looking statements are made only as of the date of this press release and the Company undertakes no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.
NON-GAAP FINANCIAL MEASURES
The Company uses Adjusted EBITDA, a Non-GAAP financial measure as defined by the SEC, as a supplemental profitability measure because management finds it useful to understand and evaluate results, excluding the impact of non-cash depreciation and amortization charges, stock based compensation expenses, and nonrecurring expenses and outlays, prior to consideration of the impact of other potential sources and uses of cash, such as working capital items. This calculation may differ in method of calculation from similarly titled measures used by other companies and may be different than the EBITDA calculation used by our lenders for purposes of determining compliance with our financial covenants. This Non-GAAP measure may have limitations when understanding performance as it excludes the financial impact of transactions such as interest expense necessary to conduct the Company’s business and therefore are not intended to be an alternative to financial measure prepared in accordance with GAAP. The Company has not quantitatively reconciled its forward looking Adjusted EBITDA target to the most directly comparable GAAP measure because items such as amortization of stock-based compensation and interest expense, which are specific items that impact these measures, have not yet occurred, are out of the Company’s control, or cannot be predicted. For example, quantification of stock-based compensation is not possible as it requires inputs such as future grants and stock prices which are not currently ascertainable.
Anyone wishing to contact us or send a message can also do so by visiting: www.airindustriesgroup.com/contact-us/
View source version on businesswire.com: https://www.businesswire.com/news/home/20241114078763/en/
Air Industries Group
Chief Financial Officer
631-328-7039
Source: Air Industries Group
FAQ
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