Air Industries Group and All-System Aerospace International Execute Marketing Agreement to pursue Foreign Military Sales
04 September 2024 - 9:00PM
Business Wire
Air Industries Group (“Air Industries”) (NYSE American:
AIRI), a leading manufacturer of precision components and
assemblies for large aerospace and defense prime contractors, today
announced a partnership with All-System Aerospace International
(“All-System Aerospace”), to expand access in the rapidly growing
Foreign Military Sales (“FMS”) market. The partnership agreement
covers sales to 17 countries across Europe, the Middle East, Asia,
and the Pacific, marking a major step forward in Air Industries’
strategic goal to broadening manufacturing and distribution to
allied militaries.
Through this collaboration, Air Industries is poised to leverage
All-System Aerospace’s well-established international network of
customers, enabling it to swiftly expand distribution of its
product offerings and meet the growing demand in the FMS market.
All-System Aerospace is a leading distributor of military hardware
to foreign militaries, supporting military platforms including the
Blackhawk, CH-53 Heavy Lift, and CH-47 Chinook. Together we will
simplify supply chain management and reduce lead times, delivering
efficient and reliable aftermarket products.
The FMS market has been experiencing rapid growth. The Defense
Security Cooperation Agency reported that FMS sales surged from
$34.8 billion in fiscal year 2021 to $66.2 billion in fiscal year
2023, an increase of nearly 90%.
Lou Melluzzo, Chief Executive Officer of Air Industries
commented: “Today, international sales remain a small percentage of
our annual sales. Expanding distribution and sales to allied
nations has been a strategic goal for Air Industries, and we are
ecstatic to now be in a position to tap into the growing FMS
market. International demand for U.S. military equipment deployed
in critical missions, has been experiencing rapid growth and we
expect it to continue. This new agreement greatly enhances
international customers’ access to our broad portfolio of aircraft
products. We look forward to working closely with All-System
Aerospace in the years ahead and to a mutually beneficial
relationship.”
Adam Zacek, President of All-System Aerospace, added: “We are
thrilled to support Air Industries in their FMS efforts. This
agreement empowers All-System Aerospace to expand its product
offering to the FMS community, enhancing support for
U.S.-manufactured helicopter and fixed wing requirements. Our
almost 50 years of experience in delivering high quality, rapid
response solutions will now be complemented by Air Industries’
innovative products, benefiting both companies and our growing
client base.”
ABOUT AIR INDUSTRIES GROUP
Air Industries Group is a leading manufacturer of precision
components and assemblies for large aerospace and defense prime
contractors. Its products include landing gears, flight controls,
engine mounts and components for aircraft jet engines, ground
turbines and other complex machines. Whether it is a small
individual component or complete assembly, its high quality and
extremely reliable products are used in mission critical operations
that are essential for the safety of military personnel and
civilians.
FORWARD LOOKING STATEMENTS
Certain matters discussed in this press release are
'forward-looking statements' intended to qualify for the safe
harbor from liability established by the Private Securities
Litigation Reform Act of 1995. In particular, the Company's
statements regarding trends in the marketplace, future revenues,
earnings and Adjusted EBITDA, the ability to realize firm backlog
and projected backlog, cost cutting measures, potential future
results and acquisitions, are examples of such forward-looking
statements. The forward-looking statements are subject to numerous
risks and uncertainties, including, but not limited to, the timing
of projects due to variability in size, scope and duration, the
inherent discrepancy in actual results from estimates, projections
and forecasts made by management, regulatory delays, changes in
government funding and budgets, and other factors, including
general economic conditions, not within the Company's control. The
factors discussed herein and expressed from time to time in the
Company's filings with the Securities and Exchange Commission could
cause actual results and developments to be materially different
from those expressed in or implied by such statements. The
forward-looking statements are made only as of the date of this
press release and the Company undertakes no obligation to publicly
update such forward-looking statements to reflect subsequent events
or circumstances.
NON-GAAP FINANCIAL MEASURES
The Company uses Adjusted EBITDA, a Non-GAAP financial measure
as defined by the SEC, as a supplemental profitability measure
because management finds it useful to understand and evaluate
results, excluding the impact of non-cash depreciation and
amortization charges, stock based compensation expenses, and
nonrecurring expenses and outlays, prior to consideration of the
impact of other potential sources and uses of cash, such as working
capital items. This calculation may differ in method of calculation
from similarly titled measures used by other companies and may be
different than the EBITDA calculation used by our lenders for
purposes of determining compliance with our financial covenants.
This Non-GAAP measure may have limitations when understanding
performance as it excludes the financial impact of transactions
such as interest expense necessary to conduct the Company’s
business and therefore are not intended to be an alternative to
financial measure prepared in accordance with GAAP. The Company has
not quantitatively reconciled its forward looking Adjusted EBITDA
target to the most directly comparable GAAP measure because items
such as amortization of stock-based compensation and interest
expense, which are specific items that impact these measures, have
not yet occurred, are out of the Company’s control, or cannot be
predicted. For example, quantification of stock-based compensation
is not possible as it requires inputs such as future grants and
stock prices which are not currently ascertainable.
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Air Industries Group Chief Financial Officer 631-328-7039 Anyone
wishing to contact us or send a message can also do so by visiting:
www.airindustriesgroup.com/contact-us/
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