EX-99.1 2 a13-11010_1ex99d1.htm EX-99.1

Exhibit 99.1

 

Wesco Aircraft Holdings Reports Results for Fiscal Second Quarter 2013

 

VALENCIA, CA, April 29, 2013 — Wesco Aircraft Holdings, Inc. (“Wesco Aircraft” or the “Company”) (NYSE: WAIR), a leading provider of comprehensive supply chain management services to the global aerospace industry, today announced results for its fiscal second quarter ended March 31, 2013.

 

Highlights

 

·                  Revenue for the quarter of $225.9 million, up 24.0% (approximately 14% organic) compared to the prior year

·                  Net Income of $29.4 million, with Diluted Earnings Per Share (“EPS”) of $0.31

·                  Adjusted Net Income of $31.2 million, up 50.3% compared to the prior year, with Adjusted Diluted EPS of $0.33

·                  Full year 2013 guidance increased for revenue with a range of $880.0 million to $900.0 million and Adjusted Diluted EPS increased expected to be in the range of $1.17 to $1.21

 

Fiscal 2013 Second Quarter Results

 

Revenue for the second fiscal quarter was $225.9 million, an increase of 24.0% compared to $182.1 million in the prior year period.  The increase in the North America segment external sales was 21.8%, which was mainly driven by growth across the Company’s customer base and the Interfast acquisition.  Wesco again demonstrated strong international growth during the quarter with external sales in the Rest of World segment increasing by 32.9% compared to the prior year period.  Overall, organic sales increased approximately 14% compared to the prior year.  In the second quarter, Ad hoc, JIT and LTA sales as a percentage of net sales represented 41%, 25% and 34%, respectively, compared to 40%, 23% and 37%, respectively, for the same period last year.

 

Net Income for the second quarter was $29.4 million, resulting in Diluted EPS of $0.31. This compares to $19.7 million or $0.21 in Diluted EPS in the prior year period.  Adjusted Net Income was $31.2 million and Adjusted Diluted EPS was $0.33 in the second quarter of 2013 as compared to $20.8 million or $0.22 per share in the prior year period.  The increases in Diluted EPS and Adjusted Diluted EPS were primarily the result of higher sales partially offset by higher selling, general and administrative expenses.  Adjusted EBITDA for the period was $51.6 million as compared to $38.3 million for the same period in 2012.

 

Wesco Aircraft’s Chairman, President and Chief Executive Officer, Randy Snyder said, “Our first half of the year results were very strong relative to last year and we are ahead of our expectations as well.  In addition, we continue to experience high levels of activity in bookings, scope additions to our existing contracts, and contract signings with new customers.  This activity adds to our confidence for the rest of the year and fuels our optimism for the future.  The Interfast integration continues to go well.  Our entry into the

 

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MRO market space and the roll out of our MRO e-Commerce platform has been well received.  None of this would be possible without our strong customer relationships, the support of our suppliers and the dedicated efforts of the best employees in the business.”

 

First Six Months of Fiscal 2013

 

Revenue for the first six months of fiscal 2013 was $437.0 million, an increase of 16.6% compared to $374.7 million in the prior year period.  On a year-to-date basis, Ad hoc, JIT and LTA sales as a percentage of net sales represented 40%, 26%, and 34%, respectively, compared to 38%, 27%, and 35%, respectively, for the first six months of fiscal 2012.

 

Net Income for the period was $47.8 million and Adjusted Net Income was $55.3 million.  Net Income resulted in Diluted EPS of $0.50 and Adjusted Net Income resulted in Adjusted Diluted EPS of $0.58.  This compared to Net Income of $42.9 million or Diluted EPS of $0.45 and Adjusted Net Income of $45.1 million or for Diluted EPS of $0.47 in the prior year period.  Adjusted EBITDA on a year-to-date basis was $95.2 million as compared to $85.7 million in 2012.

 

Financial Outlook

 

Based on performance for the first half of the fiscal year, and on continued strong sales and quoting activity, Wesco Aircraft is increasing its guidance for fiscal 2013 and expects full year revenues to be between $880.0 and $900.0 million, representing growth of approximately 13% to 16% over 2012 results.  Adjusted Diluted EPS is now expected in the range of and $1.17 to $1.21, an increase of 18% to 22% compared to the prior year.

 

Conference Call Information

 

Wesco Aircraft will also hold a conference call to discuss its second quarter results at 5:00 p.m. EDT on April 29, 2013.  The conference call can be accessed by dialing 888-771-4371 (domestic) or 847-585-4405 (international).  Participants will need to enter passcode 34657384.

 

The conference call will be simultaneously broadcast on Wesco Aircraft’s Investor Relations website (http://ir.wescoair.com).

 

Following the live webcast, a replay will be available on the Company’s website for one year.  A telephonic replay will also be available approximately one hour after the conference call and may be accessed by dialing 888-843-7419 (domestic) or 630-652-3042 (international) and entering passcode 34657384.  The telephonic replay will be available until 11:59 pm PDT May 6, 2013.

 

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About Wesco Aircraft

 

Wesco Aircraft is one of the world’s largest distributors and providers of comprehensive supply chain management services to the global aerospace industry.  The Company’s services range from traditional distribution to the management of supplier relationships, quality assurance, kitting, just-in-time delivery and point-of-use inventory management.  The Company believes it offers one of the world’s broadest inventory of aerospace parts, comprised of more than 500,000 different stock keeping units, including hardware, bearings, tools, electronic components and machined parts. Wesco Aircraft has more than 1,200 employees across 41 locations in 12 countries.

 

To learn more about Wesco Aircraft, visit our website at www.wescoair.com.

 

Non-GAAP Financial Information

 

‘‘Adjusted Net Income’’ represents Net Income before: (i) amortization of intangible assets, (ii) amortization or write-off of deferred financing costs and original issue discount, (iii) unusual or non-recurring items and (iv) the tax effect of items (i) through (iii) above calculated using an assumed effective tax rate.

 

“Adjusted Basic EPS” represents Basic EPS calculated using Adjusted Net Income as opposed to Net Income.

 

“Adjusted Diluted EPS” represents Diluted EPS calculated using Adjusted Net Income as opposed to Net Income.

 

‘‘Adjusted EBITDA’’ represents Net Income before: (i) income tax provision, (ii) net interest expense, (iii) depreciation and amortization and (iv) unusual or non-recurring items.

 

Wesco Aircraft utilizes and discusses Adjusted Net Income, Adjusted Basic EPS, Adjusted Diluted EPS and Adjusted EBITDA, which are non-GAAP measures our management uses to evaluate our business, because we believe they assist investors and analysts in comparing our performance across reporting periods on a consistent basis by excluding items that we do not believe are indicative of our core operating performance.  We believe these metrics are used in the financial community, and we present these metrics to enhance investors’ understanding of our operating performance.  You should not consider Adjusted EBITDA and Adjusted Net Income as an alternative to Net Income, determined in accordance with GAAP, as an indicator of operating performance. Adjusted Net Income, Adjusted Basic EPS, Adjusted Diluted EPS and Adjusted EBITDA are not measurements of financial performance under GAAP, and these metrics may not be comparable to similarly titled measures of other companies.  See below for a reconciliation of Adjusted Net Income, Adjusted Basic EPS, Adjusted Diluted EPS and Adjusted EBITDA to the most directly comparable financial measures calculated and presented in accordance with GAAP.

 

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Forward Looking Statements

 

Certain information in this news release contains forward-looking statements with respect to the Company’s financial condition, results of operations or business or its expectations or beliefs concerning future events.  Such forward-looking statements include the discussions of the Company’s business strategies and the Company’s expectations concerning future operations, revenues, earnings per share, margins, profitability, liquidity and capital resources.  In some cases, you can identify forward-looking statements by terminology such as “guidance,” “may,” “will,” “could,” “should,” “forecasts,” “expects,” “intends,” “plans,” “anticipates,” “projects,” “outlook,” “believes,” “estimates,” “predicts,” “potential,” “continue,” “preliminary,” or the negative of these terms or other comparable terminology.  Although the Company believes that such forward-looking statements are reasonable, it cannot assure you that any forward-looking statements will prove to be correct.  Such forward-looking statements involve risks, uncertainties, estimates and assumptions that may cause the Company’s actual results, performance or achievements to be materially different than those set forth in this news release.  Additional information relating to factors that may cause actual results to differ from the Company’s forward-looking statements can be found in the Company’s filings with the Securities and Exchange Commission, including the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2012, as supplemented by the Company’s Quarterly Report on Form 10-Q for the quarterly period ended December 31, 2012. The Company undertakes no obligation to update or revise forward-looking statements after the day of the release as a result of new information, future events or developments except as required by law.

 

Exhibits

 

Exhibit 1:  Consolidated Statements of Income (Unaudited)

 

Exhibit 2:  Condensed Consolidated Balance Sheets (Unaudited)

 

Exhibit 3:  Condensed Consolidated Statements of Cash Flows (Unaudited)

 

Exhibit 4:  Non-GAAP Financial Information (Unaudited)

 

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Exhibit 1

 

Wesco Aircraft Holdings, Inc.

Consolidated Statements of Income (UNAUDITED)

(In thousands, except for per share data)

 

 

 

Three Months Ended

 

Six Months Ended

 

 

 

March 31,

 

March 31,

 

March 31,

 

March 31,

 

 

 

2013

 

2012

 

2013

 

2012

 

 

 

 

 

 

 

 

 

 

 

Net sales

 

$

225,862

 

$

182,143

 

$

437,033

 

$

374,697

 

Cost of sales

 

144,554

 

118,068

 

281,625

 

237,350

 

Gross profit

 

81,308

 

64,075

 

155,408

 

137,347

 

Selling, general and administrative expenses

 

34,896

 

27,710

 

69,621

 

55,903

 

Income from operations

 

46,412

 

36,365

 

85,787

 

81,444

 

Interest expense, net

 

(4,691

)

(5,831

)

(16,068

)

(12,345

)

Other expense, net

 

1,889

 

(519

)

1,734

 

(541

)

Income before provision for income taxes

 

43,610

 

30,015

 

71,453

 

68,558

 

Provision for income taxes

 

(14,222

)

(10,292

)

(23,639

)

(25,657

)

Net income

 

$

29,388

 

$

19,723

 

$

47,814

 

$

42,901

 

 

 

 

 

 

 

 

 

 

 

Net income per share:

 

 

 

 

 

 

 

 

 

Basic

 

$

0.32

 

$

0.21

 

$

0.52

 

$

0.47

 

Diluted

 

$

0.31

 

$

0.21

 

$

0.50

 

$

0.45

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

Basic

 

92,889

 

91,769

 

92,699

 

91,482

 

Diluted

 

95,634

 

95,621

 

95,404

 

95,298

 

 

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Exhibit 2

 

Wesco Aircraft Holdings, Inc.

Condensed Consolidated Balance Sheets (UNAUDITED)

(In thousands)

 

 

 

March 31,

 

September 30,

 

 

 

2013

 

2012

 

 

 

 

 

 

 

Assets

 

 

 

 

 

Cash and cash equivalents

 

$

53,885

 

$

60,856

 

Accounts receivable, net

 

146,380

 

130,013

 

Inventories

 

592,765

 

557,216

 

Other current assets

 

47,617

 

53,944

 

Deferred income taxes

 

32,264

 

32,872

 

Total current assets

 

872,911

 

834,901

 

Long-term assets

 

697,160

 

702,515

 

Total assets

 

$

1,570,071

 

$

1,537,416

 

 

 

 

 

 

 

Liabilities and Stockholders’ Equity

 

 

 

 

 

Accounts payable

 

$

88,479

 

$

79,940

 

Other current liabilities

 

17,761

 

19,788

 

Income taxes payable

 

5,880

 

2,078

 

Long-term debt—current portion

 

15,563

 

 

Capital lease obligations—current portion

 

1,076

 

593

 

Total current liabilities

 

128,759

 

102,399

 

Long-term debt

 

585,937

 

626,000

 

Capital lease obligations

 

1,038

 

205

 

Deferred income taxes

 

61,177

 

55,445

 

Total Long-term liabilities

 

648,152

 

681,650

 

Total liabilities

 

776,911

 

784,049

 

Total stockholders’ equity

 

793,160

 

753,367

 

Total liabilities and stockholders’ equity

 

$

1,570,071

 

$

1,537,416

 

 

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Exhibit 3

 

Wesco Aircraft Holdings, Inc.

Condensed Consolidated Statements of Cash Flows (UNAUDITED)

(In thousands)

 

 

 

Six Months Ended

 

 

 

March 31,

 

March 31,

 

 

 

2013

 

2012

 

Cash flows from operating activities

 

 

 

 

 

Net income

 

$

47,814

 

$

42,901

 

Adjustments to reconcile net income to net cash provided by operating activities

 

 

 

 

 

Amortization of intangible assets

 

3,309

 

1,845

 

Depreciation

 

2,410

 

2,786

 

Amortization of deferred financing costs

 

6,367

 

1,600

 

Bad debt and sales return reserve

 

(441

)

(368

)

Non-cash foreign currency exchange

 

557

 

100

 

Non-cash stock-based compensation

 

1,875

 

691

 

Excess tax benefit related to stock options exercised

 

(1,005

)

(1,778

)

Change in value of derivative

 

 

(1,329

)

Deferred income tax provision

 

6,320

 

4,017

 

Loss on fixed asset disposal

 

 

349

 

Changes in assets and liabilities

 

 

 

 

 

Accounts receivable

 

(22,218

)

(10,099

)

Income taxes receivable

 

11,099

 

(3,024

)

Inventories

 

(36,486

)

(18,073

)

Prepaid expenses and other assets

 

(4,023

)

(2,575

)

Accounts payable

 

14,347

 

14,856

 

Accrued expenses and other liabilities

 

(1,945

)

(5,156

)

Income taxes payable

 

4,013

 

784

 

Net cash provided by operating activities

 

31,993

 

27,527

 

Cash flows from investing activities

 

 

 

 

 

Purchases of property and equipment

 

(1,189

)

(1,192

)

Proceeds from sale of equipment

 

 

2,759

 

Net cash provided by (used in) investing activities

 

(1,189

)

1,567

 

Cash flows from financing activities

 

 

 

 

 

Proceeds from issuance of long-term debt

 

625,000

 

 

Repayments of long-term debt

 

(649,500

)

(25,000

)

Financing fees

 

(7,274

)

 

Repayment of capital lease obligations

 

(654

)

(1,037

)

Excess tax benefit related to stock options exercised

 

1,005

 

1,778

 

Proceeds from exercise of stock options

 

2,994

 

4,782

 

Purchase of Treasury Stock

 

(8,452

)

(0

)

Net cash used in financing activities

 

(36,881

)

(19,477

)

Effect of foreign currency exchange rates on cash and cash equivalents

 

(894

)

100

 

Net increase (decrease) in cash and cash equivalents

 

(6,971

)

9,717

 

Cash and cash equivalents, beginning of period

 

60,856

 

45,525

 

Cash and cash equivalents, end of period

 

$

53,885

 

$

55,242

 

 

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Exhibit 4

 

Wesco Aircraft Holdings, Inc.

Non-GAAP Financial Information (UNAUDITED)

(In thousands, except for per share data)

 

 

 

Three Months Ended

 

Six Months Ended

 

 

 

March 31,

 

March 31,

 

March 31,

 

March 31,

 

 

 

2013

 

2012

 

2013

 

2012

 

 

 

 

 

 

 

 

 

 

 

EBITDA & Adjusted EBITDA

 

 

 

 

 

 

 

 

 

Net income

 

$

29,388

 

$

19,723

 

$

47,814

 

$

42,901

 

Provision for income taxes

 

14,222

 

10,292

 

23,639

 

25,657

 

Interest and other, net

 

4,691

 

5,831

 

16,068

 

12,345

 

Depreciation and amortization

 

2,804

 

2,249

 

5,720

 

4,631

 

EBITDA

 

51,105

 

38,095

 

93,241

 

85,534

 

Unusual or non-recurring items

 

457

 

205

 

1,911

 

205

 

Adjusted EBITDA

 

$

51,562

 

$

38,300

 

$

95,152

 

$

85,739

 

 

 

 

 

 

 

 

 

 

 

Adjusted Net Income

 

 

 

 

 

 

 

 

 

Net income

 

$

29,388

 

$

19,723

 

$

47,814

 

$

42,901

 

Amortization of intangible assets

 

1,647

 

923

 

3,309

 

1,845

 

Amortization of deferred financing costs

 

702

 

601

 

6,367

 

1,600

 

Unusual or non-recurring items

 

457

 

205

 

1,911

 

205

 

Adjustments for tax effect

 

(985

)

(692

)

(4,067

)

(1,460

)

Adjusted Net Income

 

$

31,209

 

$

20,760

 

$

55,334

 

$

45,091

 

 

 

 

 

 

 

 

 

 

 

Adjusted Basic Earnings Per Share

 

 

 

 

 

 

 

 

 

Weighted-average number of basic shares outstanding

 

92,889

 

91,769

 

92,699

 

91,482

 

Adjusted Net Income Per Basic Shares

 

$

0.34

 

$

0.23

 

$

0.60

 

$

0.49

 

 

 

 

 

 

 

 

 

 

 

Adjusted Diluted Earnings Per Share

 

 

 

 

 

 

 

 

 

Weighted-average number of diluted shares outstanding

 

95,634

 

95,621

 

95,404

 

95,298

 

Adjusted Net Income Per Diluted Shares

 

$

0.33

 

$

0.22

 

$

0.58

 

$

0.47

 

 

Contact Information

 

Mark Davidson

Investor Relations

661-802-5090

Mark.Davidson@wescoair.com

 

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