CHICAGO, Aug. 9 /CNW/ - (All amounts within this news release are stated in U.S. dollars unless otherwise stated.) Northstar Aerospace, Inc. (the "Company") today reported revenue from continuing operations for the three months ended June 30, 2010 of $48.1 million compared to $46.9 million in the same period of 2009.
Defense revenue was $37.0 million for the three months ended June 30, 2010, a $1.1 million increase over the same period of 2009. The increase was the result of higher activity across all major programs compared to 2009. Commercial revenue in the three months ended June 30, 2010 was $11.1 million compared to $11.0 million in the same period of 2009.
Margin increased to 20.5% in the three months ended June 30, from 19.6% in the same period in 2009. Defense margin was 19.9% in the three months ended June 30, 2010 compared to 21.7% in the same period of 2009 primarily due to product mix. Commercial margin increased to 22.4% in the three months ended June 30, 2010 compared to 12.8% in 2009, primarily due to price adjustments on certain products.
Selling, general and administrative ("SG&A") expenses were $4.8 million (9.9% of revenue) for the three months ended June 30, 2010. For the same period in 2009, SG&A expenses were $4.9 million (10.4% of revenue). The year-on-year decrease was due to lower legal, audit and other professional fees.
Income from continuing operations for the three months ended June 30, 2010 was $1.1 million or $0.04 per share, compared to loss of $4.1 million or $0.13 per share in the same period in 2009. The loss in 2009 was primarily related to the settlement of an environmental class action claim.
The Company's backlog was $424 million at June 30, 2010 compared to $440 million at December 31, 2009. The decrease in the backlog from 2009 is due primarily to increased shipping activity.
Glenn Hess, President and Chief Executive Officer, stated:
"Continuing improvement in operating efficiencies supported revenue growth as we saw higher activity across all major defense programs. A positive change in year-on-year operating income is also a reflection of improving manufacturing performance and restructuring our Canadian operations."
A more detailed discussion of the Company's financial results for the three and six months ended June 30, 2010 is contained in Management's Discussion and Analysis, including comments on the comparability of results between the current and prior year and is available on www.sedar.com and on the Company's website at www.nsaero.com.
Northstar Aerospace, Inc. (www.nsaero.com) is North America's leading independent manufacturer of flight critical gears and transmissions. Northstar Aerospace is a public company (TSX:NAS) with operating subsidiaries in the United States and Canada. Its principal products include helicopter gears and transmissions, accessory gearbox assemblies, rotorcraft drive systems and other machined and fabricated parts. It also provides maintenance, repair and overhaul of helicopter engines and transmissions. The Company's executive offices are located in Chicago, Illinois. Its plants are located in Chicago, Illinois; Phoenix, Arizona; Anderson, Indiana; and Milton and Windsor, Ontario.
Forward Looking Statements
This press release contains forward-looking statements that are subject to risks and uncertainty. All statements, other than statements of historical facts included in this press release, including, without limitation, those regarding the Company's financial position, business strategy, projected costs, including estimated environmental remediation costs, and plans, projected revenues, objectives of management for future operations, and certain other items may be or include forward-looking statements. Forward-looking information contained herein is based upon a number of assumptions regarding the Canadian, U.S. and global economic environment, and local and foreign government policies and actions. Actual future results of the Company may differ materially depending on a variety of factors, including production rates, timing of product deliveries, Canadian, U.S. and foreign government activities, volatility of the market for the Company's products and services, worldwide political stability, factors that result in significant and prolonged disruption to commercial air travel worldwide, U.S. military activity, domestic and international economic conditions, and other political and economic risks, including currency risks, and uncertainties. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to have been correct. Important factors that could cause actual results to differ materially from the Company's expectations ("Cautionary Statements"), are included in the Company's Consolidated Financial Statements for the Years Ended December 31, 2009 and 2008 - Management's Discussion and Analysis - Risks and Uncertainties, and in the Company's Annual Information Form filed on March 31, 2010, under the heading of Risks and Uncertainties. All information contained in this press release and subsequent written and oral forward-looking statements attributable to the Company or persons acting on behalf of the Company are expressly qualified in their entirety by the Cautionary Statements. The Company disclaims any intentions or obligation to update or revise any forward looking statements or comments as a result of any new information, future event or otherwise, unless such disclosure is required by law.
NORTHSTAR AEROSPACE INC.
FINANCIAL HIGHLIGHTS (UNAUDITED)
For the three months ended June 30, 2010
prepared in accordance with Canadian GAAP
(thousands of U.S. dollars except per share amounts)
Summary of Quarterly Information
Q2 2010 Q1 2010 Q4 2009 Q3 2009
Revenues $ 48,132 $ 52,603 $ 53,717 $ 48,098
Gain (loss) from unusual
items(1) - (1,943) (273) -
Net income (loss)(2) 1,099 (454) 3,662 (411)
Income (loss) per share:
basic & diluted(2) 0.04 0.02 0.12 (0.01)
Q2 2009 Q1 2009 Q4 2008 Q3 2008
Revenues $ 46,871 $ 45,233 $ - $ -
Gain (loss) from unusual
items(1) (4,135) 5,990 (1,632) -
Net income (loss)(2) (5,187) 5,437 (10,427) 304
Income (loss) per share:
basic & diluted(2) (0.17) 0.18 (0.35) 0.01
(1) includes environmental remediation and litigation provisions,
restructuring charges for severance and termination, plant shut down
costs and gain on sale of investments.
(2) includes discontinued operations
Summary Balance Sheet Information
June 30, 2010 December 31, 2009
Working capital $48,812 $37,408
Total assets $155,981 $153,743
Total debt $62,096 $52,394
Shareholders' equity $28,346 $27,736
The Consolidated Financial Statements for the three and six months ended June 30, 2010 and related MD&A are available on our website at: www.nsaero.com and on SEDAR.
SOURCE Northstar Aerospace
For further information: For further information: Greg Schindler, Chief Financial Officer, (708) 728-2099