Vector Aerospace reports fourth quarter and record 2009 results

TORONTO, March 11 /CNW/ - Vector Aerospace Corporation (Vector) (TSX: RNO) today announces its results for the three and twelve months ended December 31, 2009.

    
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    Operations (in millions of            Fourth Quarter       Twelve Months
     Canadian dollars):
                                          2009      2008      2009      2008
    -------------------------------------------------------------------------

      Revenue                          $ 137.7   $ 141.4   $ 566.3   $ 499.2
    -------------------------------------------------------------------------
      Net earnings before interest,
       income taxes, foreign exchange
       gains/(losses) and unusual
       items                           $  10.3   $  10.9   $  52.6   $  37.4
    -------------------------------------------------------------------------
      Net earnings                     $   6.2   $   5.6   $  31.1   $  24.4
    -------------------------------------------------------------------------

    Per Share:
      Weighted average number of
       common shares outstanding
       (millions)*
        Basic                             43.9      37.7      39.3      37.6
        Diluted                           44.4      37.9      39.7      37.9
    -------------------------------------------------------------------------
      Net earnings before interest,
       income taxes, foreign exchange
       gains/(losses) and unusual
       items
        Basic                          $  0.23   $  0.29   $  1.34   $  0.99
        Diluted                        $  0.23   $  0.29   $  1.33   $  0.99
    -------------------------------------------------------------------------
      Net earnings
        Basic                          $  0.14   $  0.15   $  0.79   $  0.65
        Diluted                        $  0.14   $  0.15   $  0.78   $  0.64
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    * 8.165 million common shares were issued publically during the fourth
      quarter 2009
    

The interim consolidated financial statements and MD&A for the three months and twelve months ended December 31, 2009 are available on the Company's website, www.vectoraerospace.com and on SEDAR, www.sedar.com.

The Company generated consolidated revenue from operations of $137.7 million for the fourth quarter of 2009, $3.7 million below the same period last year. Earnings from operations, before interest, income tax, foreign exchange gains/(losses) and unusual items were $10.3 million for the fourth quarter of 2009, $0.6 million below the same period last year. Increased earnings in the airframe segment were offset by decreased earnings in the engines and components segments. During the fourth quarter of 2009 and 2008, the Company recorded $0.3 million of foreign exchange losses. Net earnings for the fourth quarter of 2009 were $6.2 million ($0.14 per share) compared to $5.6 million ($0.15 per share) for the same period last year. The Company issued 8.165 million common shares for net proceeds of $48.7 million during the quarter. Basic earnings per share would have been $0.19 for the fourth quarter if the public offering and the unusual item were excluded.

In commenting on the quarter's results, President and CEO Declan O'Shea stated: "Fiscal 2009 was another record year. I am pleased that our Company continues to report consistently strong operating results with all of our business segments performing as expected. Our proven performance combined with the public funds raised strongly positions us to aggressively pursue growth opportunities."

The Company has been notified that the IMP Group has withdrawn its 2009 partial insider bid for Vector. The IMP Group has also reaffirmed its support for management and their growth initiatives for the Company.

Analyst Conference Call

Vector Aerospace Corporation will hold a fourth quarter 2009 conference call at 3:00 p.m. EST on Thursday, March 11, 2010. The conference call will review Vector's results for the three and twelve months ended December 31, 2009. The scheduled speakers for the Company on the conference call are: Declan O'Shea, President and Chief Executive Officer and Randal Levine, Senior Vice President and Chief Financial Officer.

Interested parties can access the conference call in North America by dialing 1-877-974-0445. The international dial-in number is (416) 644-3415. The conference identification number is 4257423#.

A replay service will be available two hours following the conference call until midnight on March 18, 2010. To access this recording, dial 1-877-289-8525 (toll free) or 416-640-1917 and enter pass code 4257423#.

Vector Aerospace Corporation is an independent provider of aviation repair and overhaul services. Through facilities in Canada, the United States, the United Kingdom and Africa, Vector provides services to commercial and military customers for various types of gas turbine engines, components and helicopter airframes. Principal operations include Vector Engine Services Atlantic Inc., Vector Aerospace Engine Services UK Limited, Vector Aerospace Helicopter Services Inc., Vector Aerospace International Limited and Pathix ASP.

Special Note Regarding Forward-Looking Statements

Certain statements in this news release, which includes 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 changes in foreign exchange rates, the impacts on the aviation industry of the global economic recession, the impacts as a result 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, Canada, the United States, the United Kingdom 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, 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 certainty of these risk factors, including the 2008 Annual Report and Management's Discussion and Analysis (2008).

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 2008 Consolidated Financial Statements and MD&A

The Company's complete annual consolidated financial statements for the year ended December 31, 2008 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, 2008 (the "2008 Annual Report") were released on March 31, 2009. The overview of financial condition and results of operations included in this news release should be read in conjunction with the 2008 Annual Report which is available on the Company's website and on SEDAR, www.sedar.com.

SOURCE VECTOR AEROSPACE CORPORATION

For further information: For further information: Declan O'Shea, President & CEO, Toronto, Ontario, (416) 640-2121; Randal L. Levine, Senior Vice-President and Chief Financial Officer, Toronto, Ontario, (416) 640-2120; www.vectoraerospace.com

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VECTOR AEROSPACE CORPORATION

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