Vector Aerospace announces fourth quarter 2007 results



    TORONTO, March 5 /CNW/ - Vector Aerospace Corporation (Vector) (TSX: RNO)
today announces results for the quarter ended December 31, 2007.

    
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    Operations (in millions of              Fourth Quarter     Twelve Months
     Canadian dollars):
                                             2007     2006     2007     2006
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    Revenue from operations                $ 83.2   $ 83.2  $ 339.1  $ 332.2
    -------------------------------------------------------------------------
    Net earnings from operations before
     interest, income taxes and unusual
     items                                  $ 6.0    $ 6.3   $ 24.9   $ 27.0
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    Net earnings                            $ 3.1    $ 4.2   $ 12.1   $ 16.4
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    Per Share:
      Weighted average number of common
       shares outstanding (millions)
        Basic                                37.5     37.2     37.5     37.1
        Diluted                              37.9     37.8     38.0     37.7
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      Net earnings before interest, income
       taxes and unusual items
        Basic                              $ 0.16   $ 0.17   $ 0.66   $ 0.73
        Diluted                            $ 0.16   $ 0.17   $ 0.66   $ 0.72
    -------------------------------------------------------------------------
      Net earnings
        Basic                              $ 0.08   $ 0.11   $ 0.32   $ 0.44
        Diluted                            $ 0.08   $ 0.11   $ 0.32   $ 0.44
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    The interim consolidated financial statements and MD&A for the quarter
ended December 31, 2007 are available on the Company's website,
www.vectoraerospace.com and on SEDAR, www.sedar.com.

    The Company generated consolidated revenue from continuing operations of
$83.2 million for the fourth quarter of 2007, equal to that of the same period
last year. Earnings from operations, before interest, tax, and unusual items,
were $6.0 million for the fourth quarter of 2007, a decrease of $0.3 million
from the same period last year. The earnings decrease in the fourth quarter of
2007 was primarily a result of the continued strength of the Canadian dollar
against the US dollar and the British pound, and structures projects completed
in the prior year not repeated in the current year. In the fourth quarter of
2007 the Company recorded unusual expenses of $3.9 million comprising
reorganization costs of $900,000 and an increase to the provision for
inventory obsolescence of $3 million. Net earnings for the fourth quarter of
2007 were $3.1 million ($0.08 per share) compared to $4.2 million ($0.11 per
share) for the same period last year.
    In commenting on the quarter's results, Chairman, President and CEO
Donald Jackson stated: "The fourth quarter operating earnings before unusual
items were relatively consistent with prior quarters. This, despite adverse
effects of the strong Canadian dollar compared to previous year results, and
delays encountered in a major contract.
    We were pleased to have the Ministry of Defense in the United Kingdom
announce the signing of the definitive purchase and sale agreement whereby
Vector has agreed to acquire the rotary and component repair business of DARA.
This acquisition is a significant move for Vector and will represent revenue
and profitability opportunities in 2008 and beyond. We currently expect to
close this transaction at the end of the first quarter.
    I am also pleased to report that the activity levels under the Royal
Saudi Air Force contract have increased significantly towards the end of 2007
and revenues will commence in 2008.
    All operating divisions are experiencing strengthening demand for
services in 2008. Our challenge in 2008 will be successfully integrating our
1300 new associates that we welcome with the closing of the DARA transaction,
and building from our new and expanded base in the U.K."

    Analyst Conference Call

    Vector Aerospace Corporation will hold a Q4 2007 conference call at
4:00 p.m. ET on Wednesday, March 5, 2008. The conference call will review
Vector's results for the quarter ended December 31, 2007. The scheduled
speakers for the Company on the conference call are: Donald Jackson, Chairman,
President and Chief Executive Officer, Randal Levine, Senior Vice President
and Chief Financial Officer and George Lawton, Vice President Finance.
    Interested parties can access the conference call in the North American
by dialing 1-888-300-0053 and entering passcode 36430990. The international
dial-in number is (647) 427-3420. Please dial in approximately 5-10 minutes
prior to the 4:00 p.m. Eastern start time.
    A replay service will be available two hours following the conference
call until midnight on March 19, 2007. To access this recording, dial
1-800-766-3394 or 1-402-220-7734 and enter passcode 36430990.

    Vector Aerospace Corporation is an independent provider of aviation
repair and overhaul services. Through facilities in Canada, the United States
and the United Kingdom, Vector provides services to commercial and military
customers for various types of gas turbine engines, components and helicopter
airframes. It also provides information technology solutions to an
international customer base. Principal operations include Atlantic Turbines,
Sigma Aerospace, ACROHELIPRO Global Services and Pathix ASP. The Company has
approximately 1,100 employees.

    Special Note Regarding Forward-Looking Statements

    Certain statements in this news release, which includes the attached
management's discussion and analysis of financial condition and results of
operations, are forward-looking statements or information, collectively
"forward-looking statements". The Company is hereby providing cautionary
statements identifying important factors that could cause the Company's actual
results to differ materially from those projected in forward-looking
statements made in this news release. Any statements that express, or involve
discussions as to, expectations, beliefs, plans, objectives, assumptions or
future events or performance (often, but not always, through the use of words
or phrases such as "will likely result," "are expected to", "will continue",
"is anticipated", "estimated", "intend", "plan", "projection", "could", "may",
"believes", "feel", "targeting", "look forward", "goals", "objective",
"outlook" and similar expressions) are not historical facts and may be
forward-looking and may involve estimates, assumptions and uncertainties which
could cause actual results or outcomes to differ materially from those
expressed in the forward-looking statements. Without limitation, information
regarding the expected revenue from the contract signed with the Royal Saudi
Air Force, the impacts on the aviation industry of the tensions and conflicts
in the Middle East, the impacts of possible acts of terrorism on the aviation
industry, timing of product delivery, availability of parts from original
equipment manufacturers ("OEMs") and others used in providing the Company's
services, U.S. and foreign government activities, volatility of the market for
the Company's services, worldwide political stability, factors that could
result in significant or prolonged disruption to commercial air travel
worldwide, domestic and international economic conditions, other political and
economic situations and uncertainties, changes in foreign currency exchange
rates, the impacts of changes in government priorities and spending on
military aviation activities related to the Company's services, the ability of
the Company to replace lost revenue of a customer significant to an operating
division, the ability of the Company to successfully implement production
efficiency changes, cost reductions and restructuring initiatives at various
locations throughout the Company and the possibility that such efforts will
not have as great an impact on the operating results of the Company as is
currently anticipated, is forward-looking information. Readers should also
refer to the Company's continuous disclosure materials filed with Canadian
Securities Regulatory Authorities for additional information with respect to
certainly of these risk factors, including the 2006 Annual Report and
Management's Discussion and Analysis (2006).
    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"), including changes in general economic, market and
business conditions, fluctuations in the cost of borrowing, political and
economic development, the Company's ability to receive timely regulatory
approvals, competitive actions of other companies, including increased
competition from OEMs with their own in-house service providers, the
occurrence of unexpected events such as fires, equipment failures and other
similar events affecting the Company or other parties whose operation or
assets directly or indirectly affect the Company, and those risks set forth
under the heading "Risk Factors" below.
    All 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 forward-looking
information contained herein is current only as of the date of this document.
New factors emerge from time to time, and it is not possible for management to
predict all of such factors and to assess in advance the impact of each such
factor on the Company's business or the extent to which any factor or
combination of factors may cause actual results to differ materially from
those contained in any forward-looking 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.

    Annual 2006 Consolidated Financial Statements and MD&A

    The Company's complete annual consolidated financial statements for the
year ended December 31, 2006 and notes thereto, together with management's
discussion and analysis of financial condition and results of operations
("MD&A") included in the Company's Annual Report for the year ended
December 31, 2006 (the "2006 Annual Report") were released on March 30, 2007.
The overview of financial condition and results of operations included in this
news release should be read in conjunction with the 2006 Annual Report which
is available on the Company's website and on SEDAR, www.sedar.com.




For further information:

For further information: Donald K. Jackson, Chairman, President & CEO,
Toronto, Ontario, (416) 925-1143; Randal L. Levine, Senior Vice-President and
Chief Financial Officer, Toronto, Ontario, (416) 925-1143;
www.vectoraerospace.com

Organization Profile

VECTOR AEROSPACE CORPORATION

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