Mercury Air (AMEX:MAX)
Historical Stock Chart
From Jun 2019 to Jun 2024
![Click Here for more Mercury Air Charts. Click Here for more Mercury Air Charts.](/p.php?pid=staticchart&s=A%5EMAX&p=8&t=15)
Mercury Air Group, Inc. Reports Second Quarter Results
LOS ANGELES, Feb. 14 /PRNewswire-FirstCall/ -- Mercury Air Group, Inc.
(AMEX:MAX), reported a net loss for the second quarter ended December 31, 2004
of $190,000, or $0.07 per basic and diluted share, which included a net gain
from discontinued operations of $22,000 or $0.01 per basic and diluted share.
For the second quarter of fiscal 2004, the Company reported a loss of
$1,517,000 or $0.48 per basic and diluted share, which included a net loss from
discontinued operations of $22,000 or $0.01 per basic and diluted share.
Revenue from continuing operations for the second quarter of fiscal 2005 was
$153.5 million, compared to $91.5 million for the same period last year, an
increase of $62.0 million, or 67.8%. The increase in revenue from continuing
operations is primarily due to the higher aviation fuel prices driven by higher
worldwide petroleum product prices. The Company's gross margin from continuing
operations for the second quarter of fiscal 2005 was $5.2 million, an increase
of 34.7%, compared to $3.8 million in the second quarter of fiscal 2004.
"Our three business segments remain on course as we stabilize earnings and
begin allocating and budgeting significant resources for Sarbanes-Oxley Section
404 compliance," said Joseph A. Czyzyk, Chairman of the Board and Chief
Executive Officer.
For the second quarter of fiscal 2005, revenue for the Company's MercFuel, Inc.
("MercFuel") subsidiary was $137.0 million, up 82.9%, compared to revenue of
$74.9 million for the second quarter last year. The increased revenue resulted
from a 57.5% increase in the price of fuel and a 16.0% volume increase. For
the quarter, gross margin increased 36.1% to $2.6 million compared to $1.9
million the prior year.
The Company's Mercury Air Cargo, Inc. ("Air Cargo") subsidiary had revenue of
$11.4 million in the second quarter of fiscal 2005, an increase of 6.6% from
last year's second quarter of $10.7 million. Air Cargo's gross margin
increased 174% to $1.4 million in the second quarter compared to $0.5 million
in the prior year quarter.
The Company's Maytag Aircraft Corporation ("Maytag") subsidiary had revenue in
the second quarter of fiscal 2005 of $5.0 million, down 15.8% compared to last
year's second quarter revenue of $5.9 million. Maytag's second quarter fiscal
year 2005 gross margin of $1.2M was 15.1% lower than the prior years second
quarter of $1.4M.
The second quarter for fiscal 2005 includes a net gain from discontinued
operations of $22,000, compared to a loss from discontinued operations, net of
taxes, of $22,000 in the second quarter of fiscal 2004. The Company sold the
stock in Mercury Air Centers, Inc., ("Air Centers") to Allied Capital in April
2004. The net gain in the current quarter resulted from the Closing Working
Capital agreement between Allied Capital and the Company on December 6, 2004.
The net loss from discontinued operations for the second quarter of fiscal 2004
is comprised of the results from operations from the Air Centers for the
quarter less the debt service costs recognized during the quarter on the debt
repaid with the proceeds from the sale.
For the six month period ended December 31, 2004, the Company reported a net
loss of $126,000, or $0.05 per basic and fully diluted share, as compared to a
net loss of $1,819,000, or $0.57 per basic and fully diluted share for the
comparable period in fiscal 2004. Revenue of $279.0 million for the first six
months of fiscal 2005 was up $107.8 million, or 63%, compared to $171.2 million
in the first six months of fiscal 2004. Gross margin of $9.4 million was up
$2.1 million, or 28.7%, compared to $7.3 million in the same year prior period.
For the first six months of fiscal 2005, revenue for the MercFuel subsidiary
was up 75.7% to $245.8 million, compared to revenue of $139.9 million in the
comparable prior year period. The higher revenue resulted from a 51.4%
increase in the price of fuel and a 15.9% volume increase. For the first half,
gross margin increased 27.0% to $4.2 million compared to the prior year of $3.3
million.
The Air Cargo subsidiary had revenue of $22.6 million in the first half of
fiscal 2005, an increase of 15.3% from prior year's first half of $19.6
million. Air Cargo's gross margin increased 113% to $2.8 million in the first
half compared to $1.3 million in the prior year period.
Maytag had revenue in the first half of fiscal 2005 of $10.3 million, down
11.9% compared to last year's first half revenue of $11.7 million. Gross
margin for the first half of fiscal 2005 was $2.5 million, down 7.8%, when
compared to the first half of fiscal 2004's $2.7 million.
The first half for fiscal 2005 includes a net gain from discontinued operations
of $22,000, or $0.01 per basic and diluted share, compared to a loss from
discontinued operations, net of taxes, of $392,000, or $0.12 per basic and
diluted share, in the first half of fiscal 2004. The Company sold the stock in
Mercury Air Centers, Inc., ("Air Centers") to Allied Capital in April 2004.
The loss from discontinued operations is comprised of the results from
operations from the Air Centers for the quarter less the debt service costs
recognized during the quarter on the debt repaid with the proceeds from the
sale.
About Mercury Air Group
Los Angeles-based Mercury Air Group (AMEX:MAX) provides aviation petroleum
products, air cargo services and transportation, and support services for
international and domestic commercial airlines, general and government aircraft
and specialized contract services for the United States government. Mercury
Air Group operates three business segments worldwide: MercFuel, Inc., Maytag
Aircraft Corporation and Mercury Air Cargo, Inc. For more information, please
visit http://www.mercuryairgroup.com/.
Statements contained in this news release which are not historical facts are
forward looking statements as that item is defined in the Private Securities
Litigation Reform Act of 1995. Such forward-looking statements are subject to
risks and uncertainties that could cause actual results to differ materially
from estimated results. Such risks and uncertainties are detailed in the
Company's filings with the Securities and Exchange Commission.
For further information, please contact Mike Bilello of Mercury Air Group,
Inc., +1-213-486-6560.
MERCURY AIR GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
Six Months Ended Three Months Ended
December 31, December 31,
2004 2003 2004 2003
(Unaudited) (Unaudited)
Sales and
revenues:
Sales $246,095,000 $139,890,000 $137,161,000 $74,901,000
Service
revenues 32,928,000 31,319,000 16,371,000 16,598,000
Total
sales and
revenues 279,023,000 171,209,000 153,532,000 91,499,000
Costs and
expenses:
Cost of
sales 239,390,000 134,299,000 133,350,000 71,850,000
Operating
expenses 30,185,000 29,571,000 15,025,000 15,821,000
Total
costs and
expenses 269,575,000 163,870,000 148,375,000 87,671,000
Gross
margin
(excluding
depreciation
and
amortization) 9,448,000 7,339,000 5,157,000 3,828,000
Expenses (income):
Selling,
general and
administrative 7,028,000 5,044,000 4,317,000 2,763,000
Provision
(recovery)
for bad debts 364,000 (24,000) 87,000 (384,000)
Depreciation
and
amortization 1,254,000 1,426,000 619,000 713,000
Interest and
other expense 771,000 527,000 443,000 267,000
Hambro
settlement
costs 1,799,000 1,799,000
Interest and
other income (241,000) (241,000) (17,000) (32,000)
Asset
impairment
loss 626,000
Total
expenses
(income) 9,802,000 8,531,000 5,449,000 5,126,000
Loss from
continuing
operations
before minority
interest and
income tax
expense (354,000) (1,192,000) (292,000) (1,298,000)
Minority
interest 181,000 4,000 (2,000)
Loss from
continuing
operations
before income
tax expense (173,000) (1,188,000) (292,000) (1,300,000)
Income tax
benefit (25,000) 239,000 (80,000) 195,000
Loss from
continuing
operations,
net of taxes (148,000) (1,427,000) (212,000) (1,495,000)
Discontinued
operations:
Loss from
discontinued
operation, net
of income tax
(benefit)
of ($251,000)
and ($14,000)
for the six
months and
three months
ended
December 31,
2003,
respectively (392,000) (22,000)
Gain on sale
of discontinued
operations,
net of income
tax provision
of $14,000 22,000 -- 22,000 --
Net loss (126,000) (1,819,000) (190,000) (1,517,000)
Accrued
preferred
stock
dividends 20,000 19,000 11,000 9,000
Net loss
applicable
to common
stockholders $(146,000) $(1,838,000) $(201,000) $(1,526,000)
Income (loss)
per common
share:
Basic:
From
continuing
operations,
net of taxes $(0.06) $(0.45) $(0.08) $(0.47)
From
discontinued
operations,
net of taxes (0.12) (0.01)
From sale
of discontinued
operations,
net of taxes 0.01 -- 0.01 --
Net loss
per share $(0.05) $(0.57) $(0.07) $(0.48)
Diluted:
From
continuing
operations,
net of taxes $(0.06) $(0.45) $(0.08) $(0.47)
From
discontinued
operations,
net of taxes (0.12) (0.01)
From sale of
discontinued
operations,
net of taxes 0.01 -- 0.01 --
Net loss
per share $(0.05) $(0.57) $(0.07) $(0.48)
MERCURY AIR GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
December 31, June 30,
2004 2004
(Unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $6,316,000 $4,690,000
Restricted cash 15,414,000
Trade accounts receivable, net of
allowance for doubtful accounts of
$1,882,000 and $1,556,000 at December 31
and June 30, 2004, respectively 56,912,000 50,974,000
Inventories 1,619,000 1,165,000
Prepaid expenses and other current assets 3,657,000 5,696,000
Deferred income taxes 1,451,000 1,451,000
TOTAL CURRENT ASSETS 69,955,000 79,390,000
PROPERTY, EQUIPMENT AND LEASEHOLDS, net of
accumulated depreciation and amortization
of $24,830,000 and $24,836,000 at
December 31 and June 30, 2004, respectively 7,564,000 10,349,000
NOTES RECEIVABLE, net of allowance for
doubtful accounts of $921,000 and
$1,025,000 at December 31 and June 30, 2004,
respectively 1,296,000 521,000
DEFERRED INCOME TAXES 611,000 611,000
GOODWILL 4,411,000 4,389,000
OTHER INTANGIBLE ASSETS, NET 600,000 700,000
RESTRICTED CASH 8,418,000 8,989,000
OTHER ASSETS, NET 1,226,000 1,008,000
TOTAL ASSETS $94,081,000 $105,957,000
LIABILITIES, MANDATORILY REDEEMABLE
PREFERRED STOCK AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $36,390,000 $33,552,000
Accrued expenses and other current
liabilities 8,559,000 11,825,000
Current portion of long-term debt 1,021,000 139,000
TOTAL CURRENT LIABILITIES 45,970,000 45,516,000
LONG-TERM DEBT 21,221,000 17,790,000
DEFERRED GAIN 9,444,000 8,130,000
OTHER LONG-TERM LIABILITY 335,000 669,000
DEFERRED RENT 943,000 1,257,000
MINORITY INTEREST -- 182,000
TOTAL LIABILITIES 77,913,000 73,544,000
COMMITMENTS AND CONTINGENT LIABILITIES
(Note 4)
MANDATORILY REDEEMABLE PREFERRED STOCK:
Series A - $0.01 par value; 1,000,000
shares authorized; 462,627 shares
outstanding at December 31 and June 30,
2004, respectively 468,000 518,000
STOCKHOLDERS' EQUITY:
Preferred stock - $0.01 par value;
authorized 2,000,000 shares; no shares
outstanding
Common stock - $0.01 par value; authorized
18,000,000 shares; 3,056,355 and
2,954,819 shares outstanding at December 31
and June 30, 2004, respectively 31,000 30,000
Additional paid-in capital 21,473,000 20,737,000
Retained earnings (accumulated deficit) (2,971,000) 14,596,000
Accumulated other comprehensive income
(loss) 193,000 (46,000)
Treasury stock, 8,750 and 24,500 shares
at December 31 and June 30, 2004,
respectively (43,000) (120,000)
Notes receivable from officers (2,983,000) (3,302,000)
TOTAL STOCKHOLDERS' EQUITY 15,700,000 31,895,000
TOTAL LIABILITIES, MANDATORILY
REDEEMABLE PREFERRED STOCK AND
STOCKHOLDERS' EQUITY $94,081,000 $105,957,000
DATASOURCE: Mercury Air Group, Inc.
CONTACT: Mike Bilello of Mercury Air Group, Inc., +1-213-486-6560
Web site: http://www.mercuryairgroup.com/