Vector Aerospace announces strong third quarter 2009 results

TORONTO, Nov. 13 /CNW/ - Vector Aerospace Corporation (Vector) (TSX: RNO) today announces its results for the three and nine months ended September 30, 2009.

    
    -------------------------------------------------------------------------
    Operations (in millions of Canadian    Third Quarter       Nine Months
    dollars):                              2009     2008      2009      2008
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      Revenue                           $ 141.0  $ 135.1   $ 428.6   $ 357.8
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      Net earnings before interest,
       foreign exchange gains/(losses),
       income taxes and unusual items   $  14.2  $   7.9   $  42.3   $  26.5
    -------------------------------------------------------------------------
      Net earnings                      $   7.8  $   6.5   $  24.8   $  18.8
    -------------------------------------------------------------------------

    Per Share:
    -------------------------------------------------------------------------
      Net earnings before interest,
       foreign exchange gains/(losses),
       income taxes and unusual items
          Basic                         $  0.38  $  0.21   $  1.12   $  0.71
          Diluted                       $  0.37  $  0.21   $  1.11   $  0.70
    -------------------------------------------------------------------------
      Net earnings
          Basic                         $  0.21  $  0.17   $  0.66   $  0.50
          Diluted                       $  0.20  $  0.17   $  0.65   $  0.49
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The interim consolidated financial statements and MD&A for the three months and nine months ended September 30, 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 $141.0 million for the third quarter of 2009, $5.9 million above the same period last year. Earnings from operations, before interest, income tax, foreign exchange gains/(losses) and unusual items were $14.2 million for the third quarter of 2009, an increase of $6.3 million as compared to the same period last year. The increase in earnings in the third quarter of 2009 was primarily a result of strong airframe project completions in North America and the UK, strong engine activity in North America and improved results from the UK acquisition completed on April 1, 2008. During the third quarter of 2009, the Company recorded $1.8 million foreign exchange loss compared to a $0.8 million foreign exchange gain in the third quarter of 2008. Net earnings for the third quarter of 2009 were $7.8 million ($0.21 per share) compared to $6.5 million ($0.17 per share) for the same period last year.

In commenting on the quarter's results, President and CEO Declan O'Shea stated: "In the third quarter, Vector again produced strong results. Given the state of the economy and of the industry in general, we are proud of our people who were able to generate these results. Each of our business segments performed well and delivered against financial and customer expectations despite the negative impact of changes in foreign exchange rates in the quarter. On October 20, 2009, the Company closed a very successful equity offering for gross proceeds of approximately $45 million. These funds have further enhanced Vector's already strong balance sheet. Vector is well positioned to aggressively pursue new growth opportunities"

Analyst Conference Call

Vector Aerospace Corporation will hold a third quarter 2009 conference call at 3:00 p.m. EST on Friday, November 13, 2009. The conference call will review Vector's results for the three and nine months ended September 30, 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 1-800-814-4859. The international dial-in number is (416) 644-3414. The conference identification number is 4182288#.

A replay service will be available two hours following the conference call until midnight on November 20, 2009. To access this recording, dial 1-877-289-8525 (toll free) or 416-640-1917 and enter pass code 4182288#.

About Vector Aerospace Corporation ("Vector")

Vector is a global independent provider of aviation maintenance, repair and overhaul services. Through facilities in Canada, the United States, the United Kingdom and Africa it provides services to commercial and military customers for various types of gas turbine engines, components and helicopter airframes. Principal operations include Vector Aerospace Engine Services-Atlantic, Vector Aerospace Engine Services-UK, Vector Aerospace Helicopter Services-North America, Vector Aerospace Helicopter Services-UK and Pathix ASP. Vector also provides information technology solutions to an international customer base. Vector employs approximately 2,500 employees.

Specific Note Regarding Forward Looking Statements

This news release may contain certain information that constitutes forward looking information within the meaning of applicable securities laws. These statements are based on Vector's current expectations, estimates, forecasts and projections related to the operating environment, economies and markets in which Vector operates, its financial condition and its general business. By their very nature, forward-looking statements are based on certain factors and assumptions and are subject to important risks and uncertainties. The forward-looking statements herein may differ materially from actual results or events. While Vector considers the assumptions on which these statements are made to be reasonable, based on information currently available to it, they may prove to be incorrect and readers are cautioned, therefore, not to place undue reliance on these statements as a number of important factors could cause actual results to differ materially from those expressed in such forward-looking statements.

These factors include, without limitation, global and local political factors, general economic, market and business conditions, fluctuations in the cost of borrowing, Vector's ability to receive timely regulatory approvals, competitive actions of other companies, including increased competition from original equipment manufacturers with their own in-house service providers, the occurrence of unexpected events such as fires, equipment failures and other similar events affecting Vector or other parties whose operations or assets directly or indirectly affect Vector and future demand for Vector's services. Readers should also refer to Vector's continuous disclosure materials filed with Canadian Securities Regulatory Authorities for additional information with respect to certain of these risk factors. A discussion of risk factors is contained in Vector's 2008 Annual Report and in all management's discussion and analysis of financial condition and results of operations filed since the 2008 Annual Report which are available on Vector's website and on SEDAR. Any forward looking statements contained in this news release are made as of the date of this release and, accordingly, are subject to change after such date. Unless otherwise required under applicable laws, we disclaim any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

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, (416) 640-2121; Randal L. Levine, Senior Vice-President and Chief Financial Officer, (416) 640-2120; www.vectoraerospace.com

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VECTOR AEROSPACE CORPORATION

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