Air Industries Group (NYSE American: AIRI), a leading manufacturer of precision components and assemblies for large aerospace and defense prime contractors, today reported financial results for the first quarter and updated its 2024 business outlook.
“Fiscal 2024 is off to a good start. The strong order and opportunity flow we experienced during the fourth quarter of last year continues and remains strong. We achieved bookings of $12.95 million and our backlog increased to $99.3 million.” said Lou Melluzzo, CEO of Air Industries Group. “We remain laser focused on several large opportunities we expect to close. I remain confident that fiscal 2024 will be a year of growth.”
First Quarter 2024 Financial Results
| First Quarter (Unaudited) | ||||||||
| 2024 | 2023 | |||||||
| Net Sales | $ | 14,061,000 | $ | 12,549,000 | ||||
| Cost of Sales | 12,155,000 | 10,669,000 | ||||||
| Gross Profit | 1,906,000 | 1,880,000 | ||||||
| Gross Margin | 13.6 | % | 15.0 | % | ||||
| Operating Expense | 2,165,000 | 2,038,000 | ||||||
| Operating Loss | (259,000 | ) | (158,000 | ) | ||||
| Interest Expense | (462,000 | ) | (476,000 | ) | ||||
| Other Income (net) | 15,000 | 16,000 | ||||||
| Loss before Income Taxes | (706,000 | ) | (618,000 | ) | ||||
| Income Taxes | – | – | ||||||
| Net Loss | $ | (706,000 | ) | $ | (618,000 | ) | ||
| Loss per Share | $ | (0.21 | ) | $ | (0.19 | ) | ||
| Reconciliation of EBITDA To GAAP | ||||||||
| Net Loss | $ | (706,000 | ) | $ | (618,000 | ) | ||
| Interest Expense | 462,000 | 476,000 | ||||||
| Depreciation | 527,000 | 604,000 | ||||||
| Amortization | 17,000 | 17,000 | ||||||
| Stock Compensation | 62,000 | 99,000 | ||||||
| Adjusted EBITDA | $ | 362,000 | $ | 578,000 | ||||
Updated 2024 Business Outlook and Items of Note
- Although it remains difficult to predict the timing of orders, raw materials and delivery times for finished products, the Company is still targeting that net sales for fiscal 2024 to be at least $50.0 million with Adjusted EBITDA in 2024 being better than 2023.
- The book-to-bill ratio, which is bookings divided by net sales, was .92X for the first quarter of 2024.
- Backlog, which represents the value of all undelivered funded orders received, stood at $99.3 million as of March 31, 2024, an increase from December 31, 2023.
- During Q1 2024, the Company began initial production on certain new programs. Gross margins for these programs were low but expected to improve as we refine our operations and accelerate productions.
- Cash flow used in operating activities for the first quarter of 2024 was $ 232,000 and is expected to be close to breakeven for the remainder of fiscal 2024 year.
- As of March 31, 2024, total indebtedness stands at $23,936,000 with cash on hand of $225,000. During the quarter, while the Company did not meet a Fixed Charge Coverage Ratio pursuant to the terms of its Current Credit Facility, it began working with its existing lender to adjust the Credit Facility to better suit its operational requirements.
- Additional information about the Company’s first quarter 2024 results can be found on the Investors website section on the Company’s website at www.airindustriesgroup.com and its Form 10Q filing as filed with the SEC.