Vector Aerospace announces second quarter 2007 results



    TORONTO, Aug. 10 /CNW/ - Vector Aerospace Corporation (Vector) (TSX: RNO)
today announces results for the quarter ended June 30, 2007.

    
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    Operations (in millions of          Second Quarter            Six Months
     Canadian dollars):
                                       2007       2006       2007       2006
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    Revenue from continuing
     operations                     $  88.8    $  82.6    $ 171.9    $ 162.7
    -------------------------------------------------------------------------
    Net earnings from continuing
     operations before interest,
     income taxes and unusual
     items                          $   5.2    $   6.7    $  11.2    $  13.8
    -------------------------------------------------------------------------
    Net earnings                    $   2.3    $   4.7    $   5.5    $   8.2
    -------------------------------------------------------------------------

    Per Share:
      Weighted average number of
       common shares outstanding
       (millions)
        Basic                          37.5       37.1       37.4       36.5
        Diluted                        38.0       37.6       37.9       37.0
    -------------------------------------------------------------------------
    Net earnings before interest,
     income taxes and unusual
     items
      Basic                         $  0.14    $  0.18    $  0.30    $  0.37
      Diluted                       $  0.14    $  0.18    $  0.30    $  0.37
    -------------------------------------------------------------------------
    Net earnings
      Basic                         $  0.06    $  0.13    $  0.15    $  0.23
      Diluted                       $  0.06    $  0.12    $  0.15    $  0.23
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    The interim consolidated financial statements and MD&A for the quarter
ended June 30, 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
$88.8 million for the second quarter of 2007, an increase of $6.2 million from
the same period last year. Earnings from continuing operations, before
interest, tax, and unusual items, were $5.2 million for the second quarter of
2007, a decrease of $1.5 million from the same period last year. The earnings
decline in the second quarter of 2007 was primarily a result of lower earnings
in the helicopter segment coupled with an increase in corporate costs relating
to business development activities and foreign exchange losses realized as a
result of the strong Canadian dollar. Net earnings for the second quarter of
2007 were $2.3 million ($0.06 per share) compared to $4.7 million
($0.13 per share) for the same period last year.
    In commenting on the quarter's results, Chairman, President and CEO
Donald Jackson stated: "Earnings in the quarter were below the prior year as a
result of lower activity levels in the helicopter segment coupled with
increased business development costs and foreign exchange losses. I am pleased
with the improved performance of both Atlantic Turbines and Sigma. The Company
continues to vigorously pursue the required approvals necessary to complete
work on the Royal Saudi Air Force contract. We anticipate higher earnings in
the second half of 2007 as compared to the first half. With the strong
Canadian dollar and current activity levels, we expect the earnings for fiscal
2007 to be similar to 2006. We are pleased to have been named the Prefered
Bidder for the purchase of the rotary wing and components business of DARA by
the UK MoD. This potential acquisition offers significant expansion
opportunities for Vector in the near term. Over the longer term the prospects
for Vector continue to remain positive and exciting".

    Analyst Conference Call

    Vector Aerospace Corporation will hold a Q2 2007 conference call to take
place at 1:00 p.m. ET on Friday, August 10, 2007. The conference call will
review Vector's results for the quarter ended June 30, 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.
    To listen to the conference call, the North American dial-in number is
1-800-362-4159 and enter passcode 11766362#. The international dial-in number
is (780) 409-3010. Please dial in approximately 5-10 minutes prior to the
1:00 p.m. Eastern start time.
    A replay service will be available two hours following the conference
call until midnight on August 17, 2007. To access this recording, dial
1-800-766-2843 or 1-402-220-7732 and enter passcode 11766362.

    Vector Aerospace Corporation is an independent provider of aviation
repair and overhaul services. Through facilities in Canada, the United States
and the United Kingdom, it 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 result s 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 caue 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

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VECTOR AEROSPACE CORPORATION

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