Vector Aerospace announces record earnings for Q1 2009

    TORONTO, May 12 /CNW/ -  Vector Aerospace Corporation (Vector) (TSX: RNO)
today announces record results for the quarter ended March 31, 2009.

                                                            First Quarter
    Operations (in millions of Canadian dollars):
                                                            2009        2008
      Revenue from continuing operations                $  140.7    $   84.5
      Net earnings from continuing operations before
       interest, income taxes                           $   13.3    $    7.3
      Net earnings                                      $    9.2    $    3.9

    Per Share:
      Weighted average number of common shares
       outstanding (millions)
        Basic                                               37.7        37.5
        Diluted                                             37.9        37.9
      Net earnings before interest and income taxes
        Basic                                           $   0.35    $   0.19
        Diluted                                         $   0.35    $   0.19
      Net earnings
        Basic                                           $   0.24    $   0.10
        Diluted                                         $   0.24    $   0.10

    The interim consolidated financial statements and MD&A for the quarter
ended March 31, 2009 are available on the Company's website, and on SEDAR,

    Vector reported its best quarterly earnings in its history.

    The Company generated consolidated revenue from operations of $140.7
million for the first quarter of 2009, $56.2 million above the same period
last year. Earnings from operations, before interest and income tax, were
$13.3 million for the first quarter of 2009, an increase of $6.0 million
compared to the same period last year. First quarter earnings for 2009 were
positively impacted by strong results in all segments and the inclusion of
Helicopter Services-UK which was acquired on April 1, 2008. Net earnings for
the first quarter of 2009 were $9.2 million ($0.24 per share) compared to $3.9
million ($0.10 per share) for the same period last year.
    In commenting on the quarter's results, President and CEO Declan O'Shea
stated: "I am very pleased that we have generated such strong earnings in the
first quarter. Each of the operating segments has shown healthy growth and
better earnings over the same period in 2008. Engine Services-Atlantic
commenced work on the Jazz contract in the quarter. Jazz operates the largest
fleet of PW100 engines in the world. The contract was the largest ever signed
by Vector. Activity levels at Helicopter Services-North America continued to
be strong, especially in the structures area. Helicopter Services-UK continues
to benefit from improved margins. Overall we expect improved earnings in 2009
over 2008. We continue to challenge our operations to perform financially
despite the current global economic state, while maintaining our commitment to
Setting the Standard of Customer Service."

    Analyst Conference Call

    Vector Aerospace Corporation will hold a Q1 2009 conference call at 3:00
p.m. ET on Tuesday, May 12, 2009. The conference call will review Vector's
results for the quarter ended March 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
    Interested parties can access the conference call in North America by
dialing 1-800-588-4942. The international dial-in number is (416) 644-3432.
The conference identification number is 21305456#.
    A replay service will be available two hours following the conference
call until midnight on May 19, 2009. To access this recording, dial
1-877-289-8525 (toll free) or 416-640-1917 and enter pass code 21305456#.

    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

    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,

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;

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