|By Business Wire||
|January 29, 2013 04:01 PM EST||
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 first quarter ended December 31, 2012.
- Revenue of $211.2 million, up 9.7% compared to $192.6 million in the prior year
- Net Income of $18.4 million, with Diluted Earnings Per Share of $0.19
- Adjusted Net Income of $24.1 million, with Adjusted Diluted Earnings Per Share of $0.25
- Full year 2013 guidance unchanged for sales of $865 to $890 million, Diluted EPS of $1.08 to $1.12, and Adjusted Diluted EPS of $1.14 to $1.19.
Fiscal 2013 First Quarter Results
Revenue for the first fiscal quarter was $211.2 million, an increase of 9.7% compared to $192.6 million in the prior year period. The increase in the North America segment was 10.3% which was mainly driven by the Interfast acquisition. Wesco again demonstrated strong international growth during the quarter with revenues in the Rest of World segment increasing by 32.9% compared to the prior year. In the first quarter, Ad Hoc, JIT and LTA sales as a percentage of net sales represented 40%, 26% and 34%, respectively, compared to 35%, 31% and 34%, respectively, for the same period last year.
Net income for the first quarter was $18.4 million, resulting in Diluted Earnings Per Share of $0.19. This compares to $23.2 million, or $0.24 per share in the prior year period. The reduction in Diluted Earnings Per Share was primarily the result of a write-off of deferred financing costs associated with the recent refinancing of the Company's debt and credit facilities (approx. $0.03 per share) and integration costs associated with the recent acquisition of Interfast ($0.01 per share). Excluding these and other unusual items, Adjusted Net Income was $24.1 million and Adjusted Earnings Per Share was $0.25 in the first quarter of 2013 as compared to $24.3 million or $0.26 per share in the prior year period. The current year period benefitted from higher sales, primarily due to the Interfast acquisition, and a lower tax rate. Offsetting these benefits were lower gross margins due to changes in the hardware sales mix as well as lower margin electronic product sales growing more rapidly than our hardware sales along with the addition of SG&A costs associated with the Interfast business.
Wesco Aircraft’s Chairman, President and Chief Executive Officer, Randy Snyder said, “Our first quarter results were strong and give us high confidence in our full year guidance for sales growth and earnings per share. We are experiencing high levels of activity in bookings, additions to our current contracts, and contract signings with new customers, which adds to our optimism for the rest of the year and beyond. The Interfast integration is also going very well and exceeding my expectations. None of this would be achievable without our strong customer relationships, the support of our suppliers and the dedicated efforts of the best employees in the business.”
Based on our performance during the first quarter, Wesco reiterates its guidance for 2013 and expects full year revenues to be between $865 and $890 million, representing a growth rate of approximately 11% to 15% over 2012 results. Diluted EPS and Adjusted Diluted EPS are expected to be in the range of $1.08 to $1.12, and $1.14 to $1.19, respectively.
Conference Call Information
Wesco Aircraft will also hold a conference call to discuss its first quarter results at 5:00 p.m. EST on January 29, 2013. The conference call can be accessed by dialing 866-825-3308 (domestic) or 617-213-8062 (international). Participants will need to enter passcode 41826718.
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 888-286-8010 (domestic) or 617-801-6888 (international) and entering passcode 57269261. The telephonic replay will be available until February 5, 2013.
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 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, or OID, (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, (iv) Carlyle Acquisition related non-cash stock-based compensation expense and (v) unusual or non-recurring items.
Wesco 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.
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 filed on November 30, 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.
|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)|
Wesco Aircraft Holdings, Inc.
Consolidated Statements of Income (UNAUDITED)
(In thousands, except for per share data)
|Three Months Ended|
|Cost of sales||137,070||119,282|
|Selling, general and administrative expenses||34,725||28,193|
|Income from operations||39,375||45,079|
|Interest expense, net||(11,377||)||(6,514||)|
|Other expense, net||(155||)||(22||)|
|Income before provision for income taxes||27,843||38,543|
|Provision for income taxes||(9,417||)||(15,365||)|
|Net income per share:|
|Weighted average shares outstanding:|
Wesco Aircraft Holdings, Inc.
|Condensed Consolidated Balance Sheets (UNAUDITED)|
|Cash and cash equivalents||$||39,734||$||60,856|
|Accounts receivable, net||129,667||130,013|
|Other current assets||53,764||53,944|
|Deferred income taxes||32,396||32,872|
|Total current assets||828,292||834,901|
|Liabilities and Stockholders’ Equity|
|Other current liabilities||14,758||19,788|
|Income taxes payable||2,843||2,078|
|Long-term debt—current portion||21,250||-|
|Capital lease obligations—current portion||1,085||593|
|Total current liabilities||112,798||102,399|
|Capital lease obligations||1,342||205|
|Deferred income taxes||57,647||55,445|
|Total Long-term liabilities||652,739||681,650|
|Total stockholders’ equity||765,341||753,367|
|Total liabilities and stockholders’ equity||$||1,530,878||$||1,537,416|
Wesco Aircraft Holdings, Inc.
|Condensed Consolidated Statements of Cash Flows (UNAUDITED)|
|Three Months Ended|
Cash flows from operating activities
|Adjustments to reconcile net income to net cash provided by operating activities|
|Amortization of intangible assets||1,663||923|
|Amortization of deferred financing costs||5,664||998|
|Bad debt and sales return reserve||(18||)||(90||)|
|Non-cash foreign currency exchange||230||(39||)|
|Non-cash stock-based compensation||987||665|
|Excess tax benefit related to stock options exercised||(741||)||-|
|Change in value of derivative||-||(734||)|
|Deferred income tax provision||2,677||2,070|
|Loss on fixed asset disposal||-||339|
|Changes in assets and liabilities|
|Income taxes receivable||3,891||5,808|
|Prepaid expenses and other assets||(2,885||)||(2,008||)|
|Accrued expenses and other liabilities||(5,017||)||(6,663||)|
|Income taxes payable||788||2,643|
|Net cash provided by operating activities||4,081||22,597|
Cash flows from investing activities
|Purchases of property and equipment||(597||)||(644||)|
|Proceeds from sale of equipment||-||2,759|
|Net cash provided by (used in) investing activities||(597||)||2,115|
Cash flows from financing activities
|Proceeds from issuance of long-term debt||615,000||-|
|Repayments of long-term debt||(626,000||)||(25,000||)|
|Repayment of capital lease obligations||(341||)||(521||)|
|Excess tax benefit related to stock options exercised||741||-|
|Proceeds from exercise of stock options||1,787||-|
|Purchase of Treasury Stock||(8,452||)||-|
|Net cash used in financing activities||(24,539||)||(25,521||)|
|Effect of foreign currency exchange rates on cash and cash equivalents||(67||)||(41||)|
|Net decrease in cash and cash equivalents||(21,122||)||(850||)|
|Cash and cash equivalents, beginning of period||60,856||45,525|
|Cash and cash equivalents, end of period||$||39,734||$||44,675|
Wesco Aircraft Holdings, Inc.
Non-GAAP Financial Information (UNAUDITED)
(In thousands, except for per share data)
|Three Months Ended|
|EBITDA & Adjusted EBITDA|
|Provision for income taxes||9,417||15,365|
|Interest and other, net||11,377||6,514|
|Depreciation and amortization||2,916||2,382|
|Unusual or non-recurring items||1,454||-|
|Adjusted Net Income|
Amortization of intangible assets
|Amortization of deferred financing costs||5,664||998|
|Unusual or non-recurring items||
|Adjustments for tax effect||(3,082||)||(768||)|
|Adjusted Net Income||$||24,125||$||24,331|
|Adjusted Basic Earnings Per Share|
|Weighted-average number of basic shares outstanding||92,514||91,198|
|Adjusted Net Income Per Basic Shares||$||0.26||$||0.27|
|Adjusted Diluted Earnings Per Share|
|Weighted-average number of diluted shares outstanding||95,179||94,979|
|Adjusted Net Income Per Diluted Shares||$||0.25||$||0.26|
"delaPlex is a software development company. We do team-based outsourcing development," explained Mark Rivers, COO and Co-founder of delaPlex Software, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Jul. 27, 2016 08:00 PM EDT Reads: 2,020
We all know the latest numbers: Gartner, Inc. forecasts that 6.4 billion connected things will be in use worldwide in 2016, up 30 percent from last year, and will reach 20.8 billion by 2020. We're rapidly approaching a data production of 40 zettabytes a day – more than we can every physically store, and exabytes and yottabytes are just around the corner. For many that’s a good sign, as data has been proven to equal money – IF it’s ingested, integrated, and analyzed fast enough. Without real-ti...
Jul. 27, 2016 07:30 PM EDT Reads: 1,075
"There's a growing demand from users for things to be faster. When you think about all the transactions or interactions users will have with your product and everything that is between those transactions and interactions - what drives us at Catchpoint Systems is the idea to measure that and to analyze it," explained Leo Vasiliou, Director of Web Performance Engineering at Catchpoint Systems, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York Ci...
Jul. 27, 2016 06:45 PM EDT Reads: 2,052
I wanted to gather all of my Internet of Things (IOT) blogs into a single blog (that I could later use with my University of San Francisco (USF) Big Data “MBA” course). However as I started to pull these blogs together, I realized that my IOT discussion lacked a vision; it lacked an end point towards which an organization could drive their IOT envisioning, proof of value, app dev, data engineering and data science efforts. And I think that the IOT end point is really quite simple…
Jul. 27, 2016 06:45 PM EDT Reads: 1,155
A critical component of any IoT project is what to do with all the data being generated. This data needs to be captured, processed, structured, and stored in a way to facilitate different kinds of queries. Traditional data warehouse and analytical systems are mature technologies that can be used to handle certain kinds of queries, but they are not always well suited to many problems, particularly when there is a need for real-time insights.
Jul. 27, 2016 04:30 PM EDT Reads: 1,858
Big Data, cloud, analytics, contextual information, wearable tech, sensors, mobility, and WebRTC: together, these advances have created a perfect storm of technologies that are disrupting and transforming classic communications models and ecosystems. In his session at @ThingsExpo, Erik Perotti, Senior Manager of New Ventures on Plantronics’ Innovation team, provided an overview of this technological shift, including associated business and consumer communications impacts, and opportunities it ...
Jul. 27, 2016 04:30 PM EDT Reads: 192
You think you know what’s in your data. But do you? Most organizations are now aware of the business intelligence represented by their data. Data science stands to take this to a level you never thought of – literally. The techniques of data science, when used with the capabilities of Big Data technologies, can make connections you had not yet imagined, helping you discover new insights and ask new questions of your data. In his session at @ThingsExpo, Sarbjit Sarkaria, data science team lead ...
Jul. 27, 2016 04:15 PM EDT Reads: 1,126
Is your aging software platform suffering from technical debt while the market changes and demands new solutions at a faster clip? It’s a bold move, but you might consider walking away from your core platform and starting fresh. ReadyTalk did exactly that. In his General Session at 19th Cloud Expo, Michael Chambliss, Head of Engineering at ReadyTalk, will discuss why and how ReadyTalk diverted from healthy revenue and over a decade of audio conferencing product development to start an innovati...
Jul. 27, 2016 04:00 PM EDT Reads: 1,055
Extracting business value from Internet of Things (IoT) data doesn’t happen overnight. There are several requirements that must be satisfied, including IoT device enablement, data analysis, real-time detection of complex events and automated orchestration of actions. Unfortunately, too many companies fall short in achieving their business goals by implementing incomplete solutions or not focusing on tangible use cases. In his general session at @ThingsExpo, Dave McCarthy, Director of Products...
Jul. 27, 2016 04:00 PM EDT Reads: 1,739
WebRTC is bringing significant change to the communications landscape that will bridge the worlds of web and telephony, making the Internet the new standard for communications. Cloud9 took the road less traveled and used WebRTC to create a downloadable enterprise-grade communications platform that is changing the communication dynamic in the financial sector. In his session at @ThingsExpo, Leo Papadopoulos, CTO of Cloud9, discussed the importance of WebRTC and how it enables companies to focus...
Jul. 27, 2016 03:30 PM EDT Reads: 974
SYS-CON Events announced today that 910Telecom will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Housed in the classic Denver Gas & Electric Building, 910 15th St., 910Telecom is a carrier-neutral telecom hotel located in the heart of Denver. Adjacent to CenturyLink, AT&T, and Denver Main, 910Telecom offers connectivity to all major carriers, Internet service providers, Internet backbones and ...
Jul. 27, 2016 11:00 AM EDT Reads: 723
SYS-CON Events announced today that LeaseWeb USA, a cloud Infrastructure-as-a-Service (IaaS) provider, will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. LeaseWeb is one of the world's largest hosting brands. The company helps customers define, develop and deploy IT infrastructure tailored to their exact business needs, by combining various kinds cloud solutions.
Jul. 27, 2016 10:30 AM EDT Reads: 1,227
Manufacturers are embracing the Industrial Internet the same way consumers are leveraging Fitbits – to improve overall health and wellness. Both can provide consistent measurement, visibility, and suggest performance improvements customized to help reach goals. Fitbit users can view real-time data and make adjustments to increase their activity. In his session at @ThingsExpo, Mark Bernardo Professional Services Leader, Americas, at GE Digital, discussed how leveraging the Industrial Internet a...
Jul. 27, 2016 09:45 AM EDT Reads: 472
The cloud market growth today is largely in public clouds. While there is a lot of spend in IT departments in virtualization, these aren’t yet translating into a true “cloud” experience within the enterprise. What is stopping the growth of the “private cloud” market? In his general session at 18th Cloud Expo, Nara Rajagopalan, CEO of Accelerite, explored the challenges in deploying, managing, and getting adoption for a private cloud within an enterprise. What are the key differences between wh...
Jul. 27, 2016 09:30 AM EDT Reads: 2,082
SYS-CON Events announced today that Venafi, the Immune System for the Internet™ and the leading provider of Next Generation Trust Protection, will exhibit at @DevOpsSummit at 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Venafi is the Immune System for the Internet™ that protects the foundation of all cybersecurity – cryptographic keys and digital certificates – so they can’t be misused by bad guys in attacks...
Jul. 27, 2016 09:15 AM EDT Reads: 1,376
The best-practices for building IoT applications with Go Code that attendees can use to build their own IoT applications. In his session at @ThingsExpo, Indraneel Mitra, Senior Solutions Architect & Technology Evangelist at Cognizant, provided valuable information and resources for both novice and experienced developers on how to get started with IoT and Golang in a day. He also provided information on how to use Intel Arduino Kit, Go Robotics API and AWS IoT stack to build an application tha...
Jul. 27, 2016 09:15 AM EDT Reads: 1,175
Amazon has gradually rolled out parts of its IoT offerings in the last year, but these are just the tip of the iceberg. In addition to optimizing their back-end AWS offerings, Amazon is laying the ground work to be a major force in IoT – especially in the connected home and office. Amazon is extending its reach by building on its dominant Cloud IoT platform, its Dash Button strategy, recently announced Replenishment Services, the Echo/Alexa voice recognition control platform, the 6-7 strategic...
Jul. 27, 2016 09:00 AM EDT Reads: 481
For basic one-to-one voice or video calling solutions, WebRTC has proven to be a very powerful technology. Although WebRTC’s core functionality is to provide secure, real-time p2p media streaming, leveraging native platform features and server-side components brings up new communication capabilities for web and native mobile applications, allowing for advanced multi-user use cases such as video broadcasting, conferencing, and media recording.
Jul. 27, 2016 08:45 AM EDT Reads: 951
IoT generates lots of temporal data. But how do you unlock its value? You need to discover patterns that are repeatable in vast quantities of data, understand their meaning, and implement scalable monitoring across multiple data streams in order to monetize the discoveries and insights. Motif discovery and deep learning platforms are emerging to visualize sensor data, to search for patterns and to build application that can monitor real time streams efficiently. In his session at @ThingsExpo, ...
Jul. 27, 2016 08:45 AM EDT Reads: 1,083
Verizon Communications Inc. (NYSE, Nasdaq: VZ) and Yahoo! Inc. (Nasdaq: YHOO) have entered into a definitive agreement under which Verizon will acquire Yahoo's operating business for approximately $4.83 billion in cash, subject to customary closing adjustments. Yahoo informs, connects and entertains a global audience of more than 1 billion monthly active users** -- including 600 million monthly active mobile users*** through its search, communications and digital content products. Yahoo also co...
Jul. 27, 2016 08:00 AM EDT Reads: 618