Fiscal 2019 Highlights from Continuing Operations
Consolidated net sales from continuing operations were $54.6 million in 2019 a significant increase of $10.1 million or 23% compared to $44.5 million in 2018.
Consolidated gross profit from continuing operations, was $9.1 million in 2019 and increased dramatically by $3.7 million or 69% from $5.4 million in fiscal 2018. Gross profit as a percentage of sales increased to 16.7% for 2019 from 12.1% in 2018. This improved gross profit results in part from increased manufacturing through-put absorbing manufacturing overhead and cost savings resulting from the consolidation of factories on Long Island.
Operating expenses from continuing operations for 2019 were $8.5 million an increase of approximately $200,000 or 2.4% compared to $8.3 million in fiscal 2018.
Air Industries had operating income from continuing operations of $ 328,000 in 2019 compared to an operating loss of $4.9 million in 2018.
Interest and financing costs were $3.6 million in fiscal 2019 as compared to $3.9 million in 2018. Cash interest paid in 2019 was $2.3 million, compared to $1.5 million in 2018. On December 31, 2019, the Company refinanced its credit facilities moving from PNC Business Credit to Sterling National Bank. During 2019, the PNC credit facility had interest rates of 500 basis points over the PNC Alternate Base (prime) rate, or approximately 9.5% for most of 2019. In addition PNC charged facility renewal fees of $ 500,000 for the year. The Sterling National Bank credit facility has interest rates equal to 30-day LIBOR plus 200 basis points. Air Industries interest rate today is less than 4.00%.
Adjusted EBITDA as shown in the table below was $5.2 million. Adjusted EBITDA is a non-GAAP financial measure which is reconciled to the most directly comparable GAAP financial measure and is more fully defined in the below table.
Source business wire