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LMI Aerospace Inc. Reports Operating Results (10-Q)

November 08, 2010 | About:
10qk

10qk

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LMI Aerospace Inc. (LMIA) filed Quarterly Report for the period ended 2010-09-30.

Lmi Aerospace Inc. has a market cap of $192.06 million; its shares were traded at around $16.3 with a P/E ratio of 14.3 and P/S ratio of 0.8. Lmi Aerospace Inc. had an annual average earning growth of 37.1% over the past 5 years.LMIA is in the portfolios of John Buckingham of Al Frank Asset Management, Inc., Jim Simons of Renaissance Technologies LLC.

Highlight of Business Operations:

Net sales of products used in large commercial aircraft were $12.5 million for the third quarter of 2010 compared to $18.6 million for the third quarter of 2009, a decrease of $6.1 million, or 32.8%. This decrease primarily resulted from a $4.6 million decline in net sales of aftermarket wing modification products to $2.3 million for the third quarter of 2010 from $6.9 million for the third quarter of 2009. Net sales for the 737 aircraft were $5.7 million in the third quarter of 2010, down from $6.2 million in the third quarter of 2009, due to delivery in 2009 of $0.3 million of 737 Classic winglets that concluded that contract, and inventory management policies at our customers. Net sales for the 747 aircraft declined to $2.2 million in the third quarter of 2010 from $3.6 million in the third quarter of 2009. This decline is attributable to the absence of a portion of a floor beam kitting program for the 747 and lower demand for product as the new 747-8 platform starts up at Boeing. The 777 generated net sales in the third quarter of 2010 of $1.3 million, up from $1.2 million in the third quarter of 2009. The 787 generated $0.4 million in the third quarter of 2010, up from less than $0.1 million in the third quarter of 2009, as production needs began to drive demand as the aircraft moves toward first delivery and planned production rate increases.

Military products generated $9.5 million of net sales in both the third quarter of 2010 and 2009. Reductions in demand for Apache Helicopter product resulted in a decline in net sales to $0.3 million for the third quarter of 2010 from $0.6 million in the third quarter of 2009. Offsetting this decline was growth on the Blackhawk programs with net sales of $8.1 million in third quarter of 2010 compared to $7.8 million in the third quarter of 2009.

Other products generated $2.5 million in net sales in the third quarter of 2010 compared to $1.2 million in the third quarter of 2009, an increase of $1.3 million, or 108.3%. This increase was partially a result of an increase of $0.6 million in technology product sales to $0.9 million in the third quarter of 2010 from $0.3 million in the third quarter of 2009 and an increase of $0.9 million in sales at Intec to $1.6 million in the third quarter of 2010 from $0.7 million in third quarter 2009.

Net sales for services supporting corporate and regional aircraft were $4.9 million in the third quarter of 2010 compared to $4.5 million for the third quarter of 2009, an increase of $0.4 million, or 8.9%. Net sales for the Mitsubishi Regional Jet were $2.5 million in the third quarter of 2010, up from $1.2 million in the third quarter of 2009. Additionally, work began during 2010 on the Lear-85 platform, which generated $1.0 million in the third quarter of 2010. These increases were partially offset by lower net sales on the G650 project which generated $2.5 million in the third quarter of 2009 compared to $0.8 million in the third quarter of 2010, as engineering efforts have been substantially completed.

Net sales for services for large commercial aircraft were approximately $8.8 million in the third quarter of 2010, up $0.9 million, or 11.4%, from $7.9 million in the third quarter of 2009. This increase is due to work begun in 2010 on the Airbus A350 platform which generated $1.0 million in the third quarter of 2010. Net sales for the 787 produced $3.9 million in the third quarter of 2010, up from and $2.6 million in the third quarter of 2009 with the growth coming primarily from engineering efforts for the 787-9 derivative. Additionally, start-up efforts on two additional projects increased revenue in 2010 by $0.7 million. These increases were offset by a $2.3 million decrease in revenues related to the 747-8 platform from $4.7 million in the third quarter of 2009 to $2.4 million in the third quarter of 2010 due to design maturation of the program.

Net sales of services for military programs were $3.8 million in the third quarter of 2010, down $3.6 million, or 48.6%, from $7.4 million in the third quarter of 2009. The decrease in military sales resulted from the completion of requirements on the CH-53, which generated only $0.2 million in the third quarter of 2010, down from $2.4 million in revenues during the third quarter of 2009. Multiple military projects with Lockheed were also winding down, resulting in a $1.8 million decline in revenues to $0.1 million in the third quarter of 2010 from $1.9 million in the third quarter of 2009.

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