4:30 pm ET January 30, 2017 (Globe Newswire)
HAUPPAUGE, N.Y., Jan. 30, 2017 (GLOBE NEWSWIRE) — Air Industries Group (NYSE MKT:AIRI) (“Air Industries” or the “Company”), announces on January 27, 2017 that we sold our subsidiary AMK Technical Services to Meyer Tool of Cincinnati Ohio for a purchase price of $ 4,500,000, subject to a customary working capital adjustment, plus additional quarterly payments, not to exceed $ 1,500,000, equal to five percent (5%) of Net Revenues of AMK commencing April 1, 2017. The purchase price is approximately equal to the purchase price of AMK when acquired in October 2014.
Proceeds of the sale will be used to reduce debt and enhance liquidity.
Separately Air Industries announced that revenue for the year ended December 31, 2016 will be approximately $ 66.8 million dollars, a decline of about $ 14 million dollars from the prior year.
Air Industries Group’s President and CEO, Dan Godin commented, “Earlier this year we announced that we were collaborating with Meyer Tool, co-locating AMK at their site in Poland and eventually in Greenville, South Carolina. As that collaboration developed Meyer Tool expressed an interest in acquiring AMK. While the operations and capabilities of AMK are complementary they are not identical to our core business of producing complex machined aerospace hardware. The divestment of AMK allows Air Industries to focus management and other resources on its core business. Meyer Tool will remain a customer of Air Industries and we hope and expect that our relationship with them will continue to grow in the future.
As we have previously announced, sales results for 2016 were disappointing and a significant decline from the prior year. This decline resulted largely from delays in developing new programs and products, plus a few operational execution issues in our largest sector. During the last half of 2016 we have made significant changes in management at several of our subsidiaries to address this and strengthen our New Product Introduction (NPI) process and Operational Excellence.
Against this disappointment I am pleased to announce that our new business development activities for 2016 were very encouraging with bookings of new business increasing by $ 9 million or 13% to approximately $ 80 million dollars. Our firm 18-month backlog also increased by more than $ 12 million or 16% and is now more than $ 90 million.”
ABOUT AIR INDUSTRIES GROUP
Air Industries Group (NYSE MKT:AIRI) is an integrated manufacturer of precision components and provider of supply chain services for the aerospace and defense industry. The Company has over 50 years of experience in the industry and has developed leading positions in several important markets that have significant barriers to entry. With embedded relationships with many leading aerospace and defense prime contractors, the Company designs and manufactures structural parts and assemblies that focus on flight safety, including landing gear, arresting gear, engine mounts and flight controls. Air Industries Group also provides sheet metal fabrication, tube bending, and welding services.
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, the ability to realize projected EBITDA, firm backlog and projected backlog, 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 ability to consummate contemplated acquisitions, 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.