LMI Aerospace announced its financial results for the fourth quarter and full year ended December 31, 2015. Q4 net sales increased by $0.6 million to $89.4 million in Q4 2015.
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This compares to $88.8 million in the fourth quarter of 2014.
Operating income for the fourth quarter of 2015, excluding $1.1 million of net unfavorable, non-recurring items, was $5.7 million, compared to $4.2 million in the fourth quarter of 2014, excluding the impact of $27.7 million in net unfavorable, non-recurring items, which included a $26.4 million goodwill impairment charge.
The company realized a net loss of $1.2 million, or $0.09 per diluted share, in the fourth quarter of 2015, compared to a net loss of $22.5 million, or $1.76 per diluted share, in the fourth quarter of 2014.
For the full-year 2015, net sales were $375.1 million compared to $387.8 million in 2014.
Operating income in 2015, excluding $2.3 million of net unfavorable, non-recurring items, was $23.1 million, compared to $18.8 million in 2014, excluding the impact of $27.7 million in net unfavorable, non-recurring items.
LMI Aerospace realized a net loss in 2015 of $2.2 million, or $0.17 per diluted share, compared to a net loss in 2014 of $29.0 million, or $2.28 per diluted share.
Net sales of large commercial aircraft products increased 10.4 percent during the fourth quarter of 2015. This increase primarily relates to higher sales on the Boeing 787, Boeing 777 and Bombardier C-Series programs of $2.6 million, $0.5 million and $1.2 million, respectively.
These increases were partially offset by a decrease in the delivery of wing modification products of $1.1 million. In the corporate and regional aircraft market, revenue increased $2.5 million and $1.9 million on the Gulfstream G500/600 and G650, respectively, which was partially offset by a decrease on the Gulfstream G450/550 of $2.1 million.
Lower sales in the military market were primarily due to decreases of $1.1 million, $1.4 million and $1.0 million on the Black Hawk, Apache and F/A-18 programs, respectively.
The segment generated gross profit of $14.1 million, or 18.1 percent of net sales, in the fourth quarter of 2015 versus $16.4 million, or 21.4 percent of net sales, in the fourth quarter of 2014.
Gross profit margin was unfavorably impacted by $0.9 million in the fourth quarter of 2015, reflecting planned efforts to reduce product inventory, which impacted cost of sales while improving working capital.
Gross profit margin in the fourth quarter of 2015 was also unfavorably impacted by product mix and an unfavorable cumulative catch-up adjustment on a Mitsubishi Regional Jet loss contract.
Selling, general and administrative expenses were $10.2 million in the fourth quarter of 2015 versus $11.5 million in the fourth quarter of 2014.
The decline in selling, general and administrative expenses was primarily due to lower salary and related expenses of $0.9 million, primarily the result of cost-saving activities, and lower restructuring charges of $0.3 million. ■