• E-mail
• Print
• Comment
• Font Size
• Digg
• del.icio.us
• Discuss article

Global Aircraft Solutions Announces First Quarter 2007 Financial Results and Conference Call

Posted on: Thursday, 24 May 2007, 09:00 CDT

Global Aircraft Solutions, Inc. (OTCBB: GACF) an integrated aviation company engaged in aircraft trading, aircraft parts sales, and scheduled maintenance, repair and overhaul (MRO) services for commercial airlines, charter airlines and aviation leasing companies, today announced its financial results for the first quarter ended March 31, 2007.

Net sales for the three months ended March 31, 2007 decreased $5.2 million, or 45%, to $6.3 million from $11.5 million for the three months ended March 31, 2006. Compared to the fourth quarter of 2006 sales increased approximately $1.4 million from $4.9 million. The decrease compared to the same period in 2006 was due to the absence of aircraft sales by Global coupled with a decrease in maintenance revenues. Maintenance revenue was negatively impacted primarily because of liquidity constraints brought on by the high unpaid balances of two clients.

Cost of sales for the three months ended March 31, 2007 decreased $3.4 million, or 45% to $4.1 million from $7.5 million for the same period in 2006. Cost of sales decreased due to the decrease in sales. Gross profit for the first quarter of 2007 totaled $2.2 million or 42%, compared to $4 million or 35% for the first quarter of 2006.

The Company reported an operating profit of $503,557 and a net income of $334,865 for the first quarter of 2007 compared to $2 million operating profit and $1.1 million net income for Q1 2006. These results for the first quarter of 2007 compare to an operating loss of $2.7 million and a net loss of $1.6 million for the fourth quarter of 2006.

On the balance sheet, the Company reported total current assets of $21 million and total assets of $28.9 million. Total liabilities for the quarter totaled $12.7 million representing stockholders' equity of $16.1 million or $.41/share. The current ratio improved slightly to 1.72 from the same period of 2006.

Global Aircraft Solutions has decided to transfer its ownership interest in JetGlobal, LLC, an entity in which the Company had a 30% ownership interest, to the other partner in JetGlobal, LLC, BCI Aircraft Leasing. The parties executed a final agreement and settlement on April 20, 2007. Under the terms of the final agreement and settlement, in consideration for the Company's 30% ownership interest in JetGlobal, the Company will receive title, free and clear, to five aircraft valued at $1,500,000 each. A sixth aircraft purchased from Global by JetGlobal, and which had MRO work performed by HAT, will be returned to the Company in satisfaction of money due to the Company, $1,150,000, for that particular aircraft. The Company will also retain a trailing interest of 18% of any amount paid JetGlobal under (i) satisfaction of the claim against Delta and (ii) the JetGlobal claim against AFG for breach of contract. The terms of the final agreement with BCI did not result in any impairment to the Company, but final determination of the effect on operating results will be determined in the 2nd quarter 2007, when it is expected the Company will have the results of JetGlobal's Delta Airlines bankruptcy claim.

John Sawyer, President of Global Aircraft Solutions commented, "I am proud of the efforts made by our entire team to restore our Company to profitability after the events that transpired in the fourth quarter of 2006. As we continue to resolve and improve our liquidity, we expect earnings to return to our historic levels. While the results are only a first step back in the right direction, I want to assure all our investors that our business opportunities in the aviation industry remain very strong."

Ian Herman, Chairman of Global Aircraft Solutions stated, "Our settlement agreement with BCI represents a key event that will enable us to take back control of our financial destiny. While we only retained a 30% interest in Jetglobal, it represented a very material portion of our assets. We now have control of approximately $9 million in aircraft which we will sell to enhance the cash position on our balance sheet. By being able to reinvest the proceeds directly into Global Aircraft instead of being captured on the balance sheet of a minority owed business, we believe that we can achieve a significantly higher return on investment and begin materially enhancing our liquidity."

Conference Call

The conference call will take place at 11:00 a.m. Eastern, on Thursday, May 24, 2007. Anyone interested in participating should call 1-888-394-1600 if calling within the United States, or 1-973-582-2867 if calling internationally, approximately 5 to 10 minutes prior to 11:00 a.m. There will be a playback available until May 31, 2007. To listen to the playback, please call 1-877-519-4471 if calling within the United States, or 1-973-341-3080 if calling internationally. Please use pass code 8836789 for the replay.

This call is being webcast by ViaVid Broadcasting and can be accessed at Global's Web site at http://www.globalaircraftsolutions.com. The webcast may also be accessed at ViaVid's Web site at http://www.viavid.net. The webcast can be accessed through September 23, 2007, on either site.

About Global Aircraft Solutions, Inc.

Global Aircraft Solutions provides parts support and maintenance, repair and overhaul (MRO) services for large passenger jet aircraft to scheduled and charter airlines and aviation leasing companies. Hamilton Aerospace and World Jet, both divisions of Global Aircraft Solutions, operate from adjacent facilities comprising about 35 acres located at Tucson International Airport. These facilities include hangars, workshops, warehouses, offices and other buildings. Notable customers include Avolar Airlines, BCI Aircraft Leasing, Jetran International, Goodrich Corporation, AAR, the Mexican Presidential Fleet, Pegasus Aviation, Shaheen Airlines, Iraqi Airways, Royal Khmer Airlines and Alant Soyuz.

Global's website is located at www.globalaircraftsolutions.com. The Hamilton Aerospace website is located at www.hamaerotech.com.

Safe Harbor

Except for the historical information presented, this press release contains "forward-looking statements" made in reliance upon the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 or regulations there under including, but not limited to expected and estimated revenue and earnings. Forward-looking statements are made based upon management's expectations and belief concerning future developments and their potential effect upon the Company. There can be no assurance that future developments will be in accordance with management's expectations or that the effect of future developments on the Company will be those anticipated by management.

The words "believes,""expects,""intends,""plans,""anticipates,""hopes,""likely,""will," and similar expressions identify such forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors that could cause the actual results, performance or achievements of the Company or its subsidiaries or industry results, to differ materially from future results, performance or achievements expressed or implied by such forward-looking statements. These risks include the economic health of the airline industry, demand for Global Aircraft Solutions' services, and competitive pricing pressures.

In addition, other risks are detailed in Global's Form 10-KSB for the year ended December 31, 2006 These statements speak only as of above date, and Global disclaims any intent or obligation to update them.

Source: Business Wire

More News in this Category