Q3 2017 Real-Time Call Brief

Highlights

Last quarter we announced a new five-year contract valued at $125 million with South African Airways to provide power by the hour component inventory, management repair services across their fleet of aircraft.

Now back to Q3 results, we had another solid quarter as diluted earnings per share from continuing operations increased 31% from $0.29 last year and $0.38 in the current period.

Revenue was up 8.4% or $34.6 million for the quarter primarily as a result of increased sales in our aviation services segment.

We had strong quarter with earnings per share of $0.38 compared to $0.29 last year, which is a 31% increase.

Good sales growth, 9.6% growth in aviation services.

Income from continuing operations was up by $3.2 million in the quarter.

The gross profit increased $4.8 million at aviation services segment due to the increased sales volumes and gross profit in expeditionary services increased $4.9 million with improved profitability across our businesses there.

SG&A expenses increased $4.3 million in the quarter reflecting increased legal fees related to the INL program that David talked about as well as investments in other business development activities.

Interest expense in the quarter is $1.4 million down a bit from last year, primarily as a result of retirement of some of our convertible notes.

CapEx in the quarter was $9.1 million, depreciation and amortization $ 14.7. Also during the quarter, we paid dividends of $2.5 million or $0.075 a share and we repurchased approximately 52,000 shares in the open market for $1.7 million.

As of the end of the quarter, we had 6.1 million remaining available under our Board authorized share repurchase plan.

Our average diluted share count for the quarter was 34.2 million compared to 34.4 million in the third quarter last year.

Net debt increased $22.4 million from the second quarter as we continue to make strategic investments in our business, including assets to support our new multi-year supply chain management programs supporting our customers.