LIMC Limco -Piedmont Inc. (MM)

TULSA, Okla., Aug. 14 /PRNewswire-FirstCall/ -- Limco-Piedmont Inc. (NASDAQ:LIMC) today announced that revenues for the three months ended June 30, 2008 were $17.7 million, a decrease of $365,000 from $18.0 million for that same period last year. Revenues for the six months ended June 30, 2008 were $34.8 million a decrease of $3.5 million from $38.3 million for the same period last year. Parts service revenues were favorably impacted during the six month period ended June 30, 2007 by a one-time sale to Viva Aerobus of $2.7 million. Revenues from our two principal lines of business for the three and six- month periods June 30, 2008 and 2007 were as follows: Three Months Ended June 30, Six Months Ended June 30, 2008 2007 2008 2007 % of % of % of % of Total Total Total Total Reve- Reve- Reve- Reve- Reve- Reve- Reve- Reve- nues nues nues nues nues nues nues nues (Revenues in thousands) Revenues: MRO $13,225 74.8% $12,606 69.90% $26,210 75.30% $25,046 65.50% Serv- ices Parts 4,452 25.20% 5,436 30.10% 8,587 24.70% 13,209 34.50% serv- ices Total $17,677 100.00% $18,042 100.00% $34,797 100.00% $38,255 100.00% reve- nues Our operating income decreased by $2.1 million, to $722,000 for the three months ended June 30, 2008 from $2.8 million for the three months ended June 30, 2007. Our operating income decreased by $3.1 million, to $2.1 million for the six months ended June 30, 2008 from $5.2 million for the six months ended June 30, 2007. Sales revenues from parts were favorably impacted during the six month period ended June 30, 2007 by a one-time sale to Viva Aerobus of $2.7 million. General and administrative expenses decreased as a result of decreased professional fees and the absence of a phantom stock expense for the company's CEO, that was recorded during the three and six months ended June 30, 2007. Non-cash compensation expense was favorably impacted by approximately $71,000 resulting from the cancellation of options for terminated employees for the three and six months ended June 30, 2008 and included in general and administrative expenses during the second quarter of 2008. Net income for the three month period ended June 30, 2008 was $608,000, or $0.05 per basic and diluted share compared with $1.6 million or $0.17 per basic and diluted share in the period ended June 30, 2007. Net income for the six month period ended June 30, 2008 was $1.6 million, or $0.12 per basic and diluted share compared with $3.0 million or $0.33 per basic and diluted share in the period ended June 30, 2007. We ended the quarter with $8.8 million in cash and cash equivalents and $21.6 million in short-term investments. Shaul Menachem, Chief Executive Officer, commented: "The second quarter of 2008 saw encouraging revenue growth in our core MRO businesses that was offset by the decline associated with volatility in our parts logistics business. At LIMCO, we continued to improve our operational performance and booked significant new backlog. At Piedmont, we booked the first revenue on new Landing Gear business closed in Q1 and completed the scheduled certification milestones for developing new capability for our APU product line. The new leadership brought on in Q1 has focused on operational excellence leading to significant improvement in turn times and on-time delivery. We also made important improvements in key processes that will continue to improve service and financial performance. Mr. Menachem concluded by saying, "Overall we are encouraged by Q2 results and the stage has been set for improved performance going forward. We secured important new business and improved our ability to profitably deliver the balance of 2008 business. The booked business and growth opportunities we see for 2009 and beyond are also encouraging. We are excited by the prospects for growth and are prepared to deliver." About Limco-Piedmont Inc. Limco-Piedmont Inc. provides maintenance, repair and overhaul, or MRO, services and parts supply services to the aerospace industry. Limco-Piedmont's four Federal Aviation Administration certified repair stations provide aircraft component MRO services for airlines, air cargo carriers, maintenance service centers and the military. Limco-Piedmont specializes in MRO services for components of aircraft, such as heat transfer components, auxiliary power units, propellers, landing gear and pneumatic ducting. In conjunction with Limco-Piedmont's MRO services, Limco-Piedmont is also an original equipment manufacturer of heat transfer equipment for airplane manufacturers and other related products. Limco-Piedmont's parts services division offers inventory management and parts services for commercial, regional and charter airlines and business aircraft owners. Safe Harbor for Forward-Looking Statements This press release contains forward-looking statements that are subject to risks and uncertainties. Factors that could cause actual results to differ materially from these forward-looking statements include, but are not limited to, general business conditions in the airline industry, changes in demand for our services and products, the timing and amount or cancellation of orders, the price and continuity of supply of component parts used in our operations, and other risks detailed from time to time in Limco-Piedmont's filings with the Securities Exchange Commission, including its Quarterly Report on Form 10-Q. These documents contain and identify other important factors that could cause actual results to differ materially from those contained in our projections or forward-looking statements. Stockholders and other readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. We undertake no obligation to update publicly or revise any forward-looking statement. - Tables Follow - LIMCO-PIEDMONT INC. AND SUBSIDIARIES UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except per share data) June 30, Dec. 31, 2008 2007 ASSETS Current Assets: Cash and cash equivalents $8,841 $5,039 Short-term investments 21,632 28,806 Accounts receivable (net of allowance for doubtful accounts of $127 and $140 at June 30, 2008 and December 31, 2007, respectively) 10,350 9,328 Inventories 20,492 16,391 Other accounts receivable and prepaid expenses 952 1,481 Total current assets 62,267 61,045 Property, plant and equipment, net 5,771 5,169 Intangible assets, net 1,492 1,709 Goodwill 4,780 4,780 Total assets $74,310 $72,703 LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities: Accounts payables $5,026 $5,084 Cash in excess of bank balances 744 --- Parent company payables 1,952 1,762 Other accounts payable and accrued expenses 781 1,568 Total current liabilities 8,503 8,414 Long-Term Liabilities: Deferred income taxes 404 404 Total liabilities 8,907 8,818 Shareholders' Equity: Common stock, $0.01 par value; 25,000 shares authorized, 13,205 and 13,205 shares issued and outstanding at June 30, 2008 and December 31, 2007, respectively 132 132 Additional paid-in capital 49,134 49,004 Retained earnings 16,357 14,749 Accumulated other comprehensive income (loss) (220) --- Total shareholders' equity 65,403 63,885 Total liabilities and shareholders' equity $74,310 $72,703 LIMCO-PIEDMONT INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (in thousands, except per share data) Three months ended Six months ended June 30, June 30, 2008 2007 2008 2007 Revenue MRO services 13,225 $12,606 $26,210 $25,046 Parts services 4,452 5,436 8,587 13,209 Total revenue 17,677 18,042 34,797 38,255 Cost and operating expenses MRO services 11,154 8,519 20,778 16,877 Parts services 3,588 3,790 6,894 10,814 Selling and marketing 660 662 1,426 1,302 General and administrative 1,444 2,132 3,354 3,839 Amortization of intangibles 109 118 218 236 Operating income 722 2,821 2,127 5,187 Other income (expense) Interest income 224 217 396 271 Interest expense ---- (384) ---- (541) Total other income (expense) 224 (167) 396 (270) Income before taxes 946 2,654 2,523 4,917 Provision for income taxes 338 1,089 915 1,942 Net income $608 $1,565 $1,608 $2,975 Basic and diluted net income per share $.05 $0.17 $.12 $0.33 Basic and diluted shares outstanding 13,205 9,000 13,205 9,000 DATASOURCE: Limco-Piedmont Inc. CONTACT: Shaul Menachem, Chief Executive Officer of Limco-Piedmont Inc., +1-918-445-4300

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