TIMCO Aviation Services, Inc. Announces 2004 Results

TIMCO Aviation Services, Inc. Announces 2004 Results 


GREENSBORO, N.C., March 30  /PRNewswire-FirstCall/ -- TIMCO Aviation Services,
Inc. (OTC:TMAS) (BULLETIN BOARD: TMAS)  today announced its 2004 results of
operations.

Revenue for year ended December 31, 2004 was $323.5 million, a 33% increase
over the 2003 revenue of $242.5 million.  Net income for 2004 was $0.9 million
($0.03 per basic and diluted share), compared to a net loss of $0.3 million
($0.01 per basic and diluted share) for 2003.

Net loss from continuing operations in 2004 was $0.7 million compared to $4.3
million in 2003.  Net loss from continuing operations during 2004 benefited
from a gain on the settlement of a warrant obligation of $0.2 million.  Net
loss from continuing operations during 2003 benefited from the elimination and
reduction in accruals of $2.7 million based on settlements and revised
estimates, from the collection of a $0.9 million account receivable that had
previously been written off as uncollectible and from tax benefits of $1.0
million resulting from the conclusion of an IRS audit and receipt of federal
and state tax refunds.  Without these benefits, the net loss from continuing
operations for 2004 and 2003 would have been $0.9 million and $8.9 million,
respectively.

Roy T. Rimmer, Jr., the Company's Chairman and Chief Executive Officer, stated:
"The ongoing improvement in our operating results, at both the revenue level
and at the bottom line, demonstrates that we are on the right course. This
strengthening of our operations combined with the enhancement of our capital
structure as a result of our recently completed tender offer, will enable TIMCO
to be a better business partner with our customers in meeting their aircraft
maintenance and modification needs."

Gil West, the Company's President and Chief Operating Officer, stated: "Our
customers are continuing to look to TIMCO for a larger portion of their MR&O
requirements, as evidenced by our 33% year-over-year increase in revenue. Our
focus on improving the quality, efficiency and scope of services offered to our
customers has been critical in securing this increased business."

TIMCO Aviation Services, Inc. is among the world's largest providers of fully
integrated aviation maintenance, repair and overhaul (MR&O) services for major
commercial airlines, regional air carriers, aircraft leasing companies,
government and military units and air cargo carriers.  The Company currently
operates four MR&O businesses: Triad International Maintenance Corporation
(known as TIMCO), which, with its four active locations (Greensboro, NC; Macon,
GA; Lake City, FL and Goodyear, AZ), is one of the largest independent
providers of heavy aircraft maintenance services in the world and also provides
aircraft storage and line maintenance services; Brice Manufacturing and
Aircraft Interior Design, which specialize in the manufacture and sale of new
aircraft seats and aftermarket parts and in the refurbishment of aircraft
interior components; TIMCO Engineered Systems, which provides engineering
services both to our MR&O operations and our customers; and TIMCO Engine
Center, which refurbishes JT8D engines and performs on-wing repairs for both
JT8D and CFM-56 series engines. Visit TIMCO online at http://www.timco.aero/ .

This press release contains forward-looking statements. Forward-looking
statements involve known and unknown risks and uncertainties, which may cause
the Company's actual results in future periods to differ materially from
forecasted results. A number of factors, including those identified in the
Company's Annual Report on Form 10-K for the year ended December 31, 2004,
could adversely affect the Company's ability to obtain these results. Copies of
the Company's filings with the U.S. Securities and Exchange Commission are
available from the SEC or may be obtained upon request from the Company. The
Company does not undertake any obligation to update the information contained
herein, which speaks only as of this date.

                      TIMCO Aviation Services, Inc.
                   ($ thousands, except per share data)

                                             For the year ended December 31,
                                                     2004        2003

  Operating revenue                                $323,488    $242,514
  Gross Profit                               (a)     29,289      16,183
  Gross Profit Percentage                    (a)       9.1%        6.7%
  Operating expenses                         (b)     22,636      14,761
  Operating expenses as a % of revenue       (b)       7.0%        6.1%
  Income from operations                     (c)      6,653       1,422
  Loss from continuing operations            (d)       (667)     (4,304)
  Income, net, from discontinued operations  (e)      1,580       4,043
  Net income (loss)                                    $913       $(261)
  Basic income (loss) per share                       $0.03      $(0.01)
  Diluted income (loss) per share                     $0.03      $(0.01)

  The Company is providing the following information to allow what the
  Company believes to be a meaningful comparison of its period to period
  results.

  (a)  2003 gross profit benefited from the elimination of accruals
       aggregating $463.  Without this impact, gross profit for 2003 would
       have been $15,720 (6.5% of revenues).

  (b)  2003 operating expenses benefited from the elimination of accruals
       and recovery of an account receivable that had previously been
       written off as uncollectible aggregating $2,589.  Without the impact
       of these items, operating expenses for 2003 would have been $17,350
       (7.2% of revenues).

  (c)  The income from operations for 2003 without the impact of the items
       noted in (a) and (b) above would have been a loss of ($1,630).

  (d)  Loss from continuing operations for 2004 included a gain on the
       settlement of a warrant obligation of $209.  Income from continuing
       operations in 2003 included a $570 gain from the settlement of issues
       related to the sale of our Aerocell operations and an income tax
       benefit of $986 resulting from the conclusion of an IRS audit and the
       receipt of federal and state tax refunds.  Without the benefit of
       these items and of the items described in (a) and (b) above, the net
       loss from continuing operations for 2004 and 2003 would have been
       $876 and $8,912, respectively.

  (e)  Income, net, from discontinued operations reflects the gain on sale
       of assets, settlement of obligations and proceeds from collection of
       fully reserved receivables from discontinued operations. The
       Company's manufacturing, redistribution and new parts operations were
       sold in fiscal 2000 and the process of collection on the assets from
       these discontinued operations is winding down. As a result, income
       from discontinued operations is not expected to be significant in
       future periods.  Income, net from discontinued operations included a
       benefit of $825 during 2004 from the sale of our Miramar facility and
       a benefit of $2,770 in 2003 from the elimination and settlement of
       contingency exposures and reserves relating to discontinued
       operations.


DATASOURCE: TIMCO Aviation Services, Inc.



CONTACT:  Roy T. Rimmer, Jr., Chairman & Chief Executive Officer, or

Fritz Baumgartner, Vice President Finance, Chief Accounting Officer of TIMCO

Aviation Services, Inc., [phone]



Web site:  http://www.timco.aero/ 

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