Breeze-eastern has a market cap of $67.2 million; its shares were traded at around $7.1299 with a P/E ratio of 26.4 and P/S ratio of 1.
Highlight of Business Operations:Net Sales. Fiscal 2011 third quarter net sales of $19,614 were lower by $1,554, or 7.3%, from net sales of $21,168 in the Fiscal 2010 third quarter. Fiscal 2011 products sales of $14,244 were $1,186, or 7.7%, below prior year primarily due to lower volume of new equipment of $1,876 due to a large OEM weapon handling shipment last year, partly offset by higher spare parts volume of $689 to the U.S. military during the Fiscal 2011 third quarter.
Backlog. Backlog at December 31, 2010 was $132,774 compared with $130,144 at March 31, 2010 and $126,568 at December 27, 2009. The backlog at December 31, 2010, March 31, 2010, and December 27, 2009 includes approximately $70,563, $69,463, and $67,200, respectively, for the Airbus A400M military transport aircraft that was once scheduled to commence shipping in late calendar 2009 and continue through 2020. Airbus now indicates shipments are likely to commence in calendar 2012.
Net Sales. Fiscal 2011 first nine months net sales of $51,260 increased by $322, or 0.6%, from net sales of $50,938 in the corresponding period in Fiscal 2010. Fiscal 2011 products sales of $38,117 were $2,774, or 7.8%, above prior year primarily due to increased spare parts volume of $6,049 resulting primarily from U.S. military and third-party overhaul & repair service centers, partly offset by lower new equipment volume of $3,275.
Our $33,000 Senior Credit Facility consists of a $10,000 revolving line of credit (Revolver) and, at the inception of the credit agreement in August 2008, a term loan totaling $23,000. The Senior Credit Facility is secured by all of our assets and accrues interest at either the Base Rate (as defined in the credit agreement) or the London Interbank Offered Rate (LIBOR) plus applicable margins based on our leverage ratio (as defined in the credit agreement) for the most recent four quarters and is calculated at each quarter end. At December 31, 2010, the term loan balance was $13,143, there were no outstanding Revolver borrowings, there were $951 in outstanding (standby) letters of credit, and $9,049 of availability under the Revolver. The Senior Credit Facility contains certain financial covenants, including fixed charge coverage ratio and leverage ratio. Unless waived, any failure to comply with such covenants could constitute an event of default resulting in the acceleration of all amounts due under the Senior Credit Facility. A more complete description of these covenants is contained in Note 8 of our financial statements included in Part I, Item 1 of this report. At December 31, 2010, we were in compliance with all covenant provisions of the Senior Credit Facility.
Working capital at December 31, 2010 was $27,165, an increase of $1,977, versus $25,188 at March 31, 2010. The ratio of current assets to current liabilities was 2.8:1.0 at December 31, 2010 compared with 2.7:1.0 at the beginning of Fiscal 2011. The working capital increase resulted primarily from a $2,189 increase in accounts receivable, a $2,464 decrease in the current portion of long-term debt, and a $737 increase in inventories. Partly offsetting these amounts was a $2,648 accounts payable increase, $700 decrease in current deferred income taxes, $668 accrued compensation increase and a $603 net increase in other working capital items.
Capital expenditures-operations for the nine months ended December 31, 2010 and December 27, 2009 were $327 and $4,864, respectively, which include capitalized relocation expenditures of $162, before a build-out credit of $233 received, and $4,553, respectively. Capitalized project costs for engineering for the nine months ended December 31, 2010 and December 27, 2009 were $376 and $840, respectively.
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