Limco-Piedmont Inc. Reports Results for the Quarter Ended September 30, 2008

TULSA, Okla., Nov. 7  /PRNewswire-FirstCall/ -- Limco-Piedmont Inc. (NASDAQ:LIMC) today announced that revenues for the three months ended September 30, 2008 were $18.8 million, an increase of $2.2 million from $16.6 million for that same period last year.  This increase is reflective of our continued growth in our MRO business segment.  Revenues for the nine months ended September 30, 2008 were $53.6 million a decrease of $1.3 million from $54.9 million for the same period last year.  This decrease in sales revenues is a result of the growth in our MRO revenues during the nine months ended September 30, 2008, offset by the one-time Parts sale to Viva Aerobus of $2.7 million during the nine months ended September 30, 2007.

Revenues from our two principal lines of business for the three and nine- month periods ended September 30, 2008 and 2007 were as follows:

                           Three Months Ended September 30,
                            2008                    2007

                                % of Total              % of Total
                     Revenues    Revenues    Revenues    Revenues

                                (Revenues in thousands)
  Revenues:
  MRO Services        $14,054      74.6 %     $12,831      77.1 %
  Parts services        4,773      25.4 %       3,813      22.9 %
    Total revenues    $18,827     100.0 %     $16,644     100.0 %


                          Nine Months Ended September 30,
                            2008                  2007

                                % of Total              % of Total
                     Revenues    Revenues    Revenues    Revenues

                                (Revenues in thousands)

   Revenues:
   MRO Services      $40,264         75 %     $37,877      69.0 %
   Parts services     13,360         25 %      17,022      31.0 %
     Total revenues  $53,624      100.0 %     $54,899     100.0 %





Our operating income decreased by $500,000, to $1.4 million for the three months ended September 30, 2008 from $1.9 million for the three months ended September 30, 2007.  Our operating income decreased by $3.6 million, to $3.5 million for the nine months ended September 30, 2008 from $7.1 million for the nine months ended September 30, 2007.

General and administrative expenses increased by $357,000 to $1.9 million for the three months ended September 30, 2008 from $1.6 million for the three months ended September 30, 2007. The increase in general and administrative expenses is primarily attributable to tax audit expenses of $60,000 and merger and acquisition expenses of $313,000 offset by the lack of phantom stock expense during this period as compared to last year.  Non-cash compensation expense was $72,000 and included in general and administrative expenses during the third quarter of 2008 compared to $170,000 in the third quarter of 2007.

General and administrative expenses decreased by $127,000, to $5.3 million for the nine months ended September 30, 2008 from $5.4 million for the nine months ended September 30, 2007. The decrease in general and administrative expenses is primarily attributable to a phantom stock expense for the Company's former CEO, that was recorded during the nine months ended September 30, 2007 offset by tax audit expenses of $60,000 and acquisition pursuit expenses of $313,000 during the period ended September 30, 2008.  Non-cash stock based compensation expense of $202,000 was included in general and administrative expenses compared to $170,000 in the first nine months of 2007.

Net income for the three month period ended September 30, 2008 was $957,000, or $0.07 per basic and diluted share compared with $1.4 million or $0.12 per basic and diluted share in the period ended September 30, 2007.

Net income for the nine month period ended September 30, 2008 was $2.6 million, or $0.19 per basic and diluted share compared with $4.4 million or $0.46 per basic and diluted share in the period ended September 30, 2007.

We ended the quarter with $9.5 million in cash and cash equivalents and $21.1 million in short-term investments.

Bob Koch and Udi Netivi our Co-Chief Executive Officers, commented: "The third quarter of 2008 saw encouraging revenue growth in our core MRO businesses and parts business versus the third quarter of last year and second quarter of this year.

"At Piedmont, we were advised by a key parts customer that its activity levels should be steady through 2009.  Margins in the parts business improved nicely in the third quarter.  Air Wisconsin activity is anticipated to ramp up in the first quarter of 2009 and we continue to see growth in the rest of our landing gear business.  The FAA has certified the APU shop's 331 capabilities and the first two repaired units will ship in the fourth quarter and another 331 is being overhauled for use as a rotable.  The 331 future looks strong for 2009.  Our propeller MRO business remains steady and we are pursuing new 2009 business with a significant customer.

"At LIMCO, sales for the third quarter were up nicely from prior quarters. LIMCO also experienced very strong OEM and Military bookings in the third quarter which offset weakness that is developing in the Airline segment.  We are taking aggressive action to manage cost through the cycle and capitalize on booked business."

Dr. Shmuel Fledel, our Chairman of the Board, concluded by saying, "We are looking positively towards the fourth quarter of 2008 and towards 2009.  Our business opportunities, along with consistent expense control and improvement in operational performance give us confidence in our ability to overcome the weakness that is developing in the Airline industry.  New products, strong new business and improved operational performance have set the stage for an improved fourth quarter and 2009."

About Limco - Piedmont Inc.

Limco-Piedmont Inc. provides maintenance, repair and overhaul, or MRO, services and parts supply services to the aerospace industry.  Limco- Piedmont's four Federal Aviation Administration certified repair stations provide aircraft component MRO services for airlines, air cargo carriers, maintenance service centers and the military.  Limco-Piedmont specializes in MRO services for components of aircraft, such as heat transfer components, auxiliary power units, propellers, landing gear and pneumatic ducting.  In conjunction with Limco-Piedmont's MRO services, Limco-Piedmont is also an original equipment manufacturer of heat transfer equipment for airplane manufacturers and other related products. Limco-Piedmont's parts services division offers inventory management and parts services for commercial, regional and charter airlines and business aircraft owners.

Safe Harbor for Forward-Looking Statements

This press release contains forward-looking statements that are subject to risks and uncertainties. Factors that could cause actual results to differ materially from these forward-looking statements include, but are not limited to, general business conditions in the airline industry, changes in demand for our services and products, the timing and amount or cancellation of orders, the price and continuity of supply of component parts used in our operations, and other risks detailed from time to time in Limco-Piedmont's filings with the Securities Exchange Commission, including its Quarterly Report on Form 10- Q. These documents contain and identify other important factors that could cause actual results to differ materially from those contained in our projections or forward-looking statements. Stockholders and other readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. We undertake no obligation to update publicly or revise any forward-looking statement.

                            - Tables Follow -



                   LIMCO-PIEDMONT INC. AND SUBSIDIARIES

             UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
                  (in thousands, except per share data)

                                                September 30,   December 31,
                                                   2008             2007
                    ASSETS
  Current Assets:
   Cash and cash equivalents                       $9,459            $5,039
   Short-term investments                          21,110            28,806
   Accounts receivable (net of allowance for
    doubtful accounts of $170 and $140 at
    September 30, 2008 and  December
    31, 2007, respectively)                        12,275             9,328
   Inventories                                     18,926            16,391
   Other accounts receivable and prepaid
    expenses                                        1,346             1,481
      Total current assets                         63,116            61,045

  Property, plant and equipment, net                6,030             5,169
  Intangible assets, net                            1,437             1,709
  Goodwill                                          4,780             4,780
      Total assets                                $75,363           $72,703

     LIABILITIES AND SHAREHOLDERS' EQUITY

  Current Liabilities:
   Accounts payables                               $4,994            $5,084
   Parent company payables                          1,468             1,762
   Other accounts payable and accrued expenses      2,287             1,568
      Total current liabilities                     8,749             8,414

  Long-Term Liabilities:
   Deferred income taxes                              415               404
      Total liabilities                             9,164             8,818

  Shareholders' Equity:
   Common stock, $0.01 par value; 25,000
    shares authorized, 13,205 shares issued and
    outstanding at September 30, 2008 and
    December 31, 2007                                132               132
   Additional paid-in capital                     49,206            49,004
   Retained earnings                              17,314            14,749
   Accumulated other comprehensive loss             (453)                -
      Total shareholders' equity                  66,199            63,885
      Total liabilities and shareholders' equity $75,363           $72,703



                   LIMCO-PIEDMONT INC. AND SUBSIDIARIES

               CONDENSED CONSOLIDATED STATEMENTS OF INCOME
                  (in thousands, except per share data)


                               Three months ended      Nine months ended
                                  September 30,          September 30,
                                2008       2007        2008         2007

  Revenue
   MRO services                 $14,054    $12,831     $40,264      $37,877
   Parts services                 4,773      3,813      13,360       17,022

      Total revenue              18,827     16,644      53,624       54,899

  Cost and operating expenses
   MRO services                  11,099      9,342      31,877       26,219
   Parts services                 3,676      3,083      10,570       13,897
   Selling and marketing            715        673       2,141        1,975
   General and administrative     1,909      1,552       5,264        5,391
   Amortization of intangibles       54        119         272          355

      Operating income            1,374      1,875       3,500        7,062

  Other income (expense)
   Interest income                  298        271         756          542
   Interest and other expense
                                    (40)      (178)       (101)        (719)

      Total other income (expense)  258         93         655         (177)

  Income before taxes             1,632      1,968       4,155        6,885
  Provision for income taxes        675        538       1,590        2,480

  Net income                       $957     $1,430      $2,565       $4,405

  Basic net income per share      $0.07      $0.12       $0.19        $0.46
  Diluted net income per share    $0.07      $0.12       $0.19        $0.46

  Basic shares outstanding       13,205     12,406      13,205        9,673
  Diluted shares outstanding     13,205     12,437      13,205        9,678


DATASOURCE: Limco-Piedmont Inc.



CONTACT:  Carla Covey, Chief Financial Officer, Limco-Piedmont Inc., +1-

918-445-4300

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