ST. LOUIS, March 12, 2013 (GLOBE NEWSWIRE) -- LMI Aerospace, Inc. (LMIA), a leading provider of design engineering services and supplier of structural assemblies, kits and components to the aerospace and defense markets, today announced its financial results for the fourth quarter and the twelve months ended December 31, 2012.

2012 Highlights

Fourth Quarter Results

Net sales for the fourth quarter of 2012 increased 10.6 percent to $71.9 million, compared to $65.0 million in the fourth quarter of 2011. Net income for the fourth quarter of 2012 was $1.0 million, or $0.08 per diluted share, compared to $4.1 million, or $0.35 per diluted share, in the fourth quarter of 2011. Fourth quarter 2012 results include a pre-tax charge of $4.8 million of acquisition costs and of $0.6 million for the write off of deferred financing fees. Excluding these charges, net of a 35.0 percent tax rate, earnings per diluted share would have been $0.38. The operations of Valent, included for only three days after the closing on December 28, 2012, had no material impact upon sales and earnings for the fourth quarter of 2012 or for the full-year 2012.

For the full-year 2012, net sales were $278.6 million versus $254.0 million in the prior year. Net income was $16.5 million, or $1.39 per diluted share, in 2012 compared to $16.4 million, or $1.40 per diluted share, in 2011. Full-year 2012 results include a pre-tax charge of $5.4 million of acquisition costs and of $0.6 million for the write off of deferred financing fees. Excluding these charges, net of a 35.0 percent tax rate, net income for 2012 would be $20.4 million or $1.73 per diluted share.

"LMI entered 2012 with growing demand for its Aerostructures products and Engineering Services. LMI benefited from increased production rates and new awards on Boeing and Gulfstream models, as well as Engineering Services awards on the Learjet 85, the Boeing 787 and the Boeing KC-46 tanker," said Ronald S. Saks, Chief Executive Officer of LMI. "A large design build contract for the Embraer KC-390 also enabled us to refine our program management process and improve our design build infrastructure. Our revenue growth accelerated and significant hiring was done through most of 2012.

"As our financial condition continued to strengthen, we sought to acquire meaningful machining capabilities to enhance our complex assembly offerings and to supplement Engineering Services with aftermarket business. To that end, we acquired TASS in August 2012 and Valent in December 2012, transforming LMI into a supplier offering unique engineering services and structural aerospace products and services. We believe these customer awards were tangible evidence of the reputation LMI has developed in the aerospace market and that LMI is distinguishing itself as a company that provides a wide range of products and services that our customers need and want.

"In 2012 we worked through an unusual number of difficult programs, almost all of which were caused by inaccurate tooling or engineering provided by our customers. By the end of 2012, we converted these difficult programs from problems to successes and cemented relationships with key customers. As a result, opportunities for new, more complex work continue to grow in the structural products area, with several projects "expected to begin in 2013. Combined now with Valent, those opportunities are larger and more complex and will test our ability to execute them. We are optimistic that wins on successful airplane models will diversify our product offerings and provide the basis for continued growth in future years.

"Our revenue guidance for 2013, excluding Valent, reflects a reduction in Engineering Services revenue and an increase in legacy Aerostructures sales with a net reduction in sales of $2.0 million. A combination of sequestration uncertainty, a customer negotiation with its union in our largest Engineering Services market and near term completion of design work on several large engineering projects in the first six months of 2013 all have combined to suggest that Engineering Services revenue in the first six months of 2013 will be substantially below previously anticipated levels. We expect, however, that large orders received in the last two months from Aerostructures customers should offset our estimated reduction in Engineering Services revenue and some new awards are enabling us to use engineers in our Aerostructures plants. Additionally, both legacy Aerostructures and Valent have some capacity for more projects, and we believe those opportunities should help mitigate against any further unexpected short fall at Engineering Services. As a result, we remain optimistic that profitable growth should continue in 2013."

Increased demand for Boeing 737 wing modification kits and growth on the Boeing 777 platform contributed to the 11.5 percent increase in net sales of large commercial aircraft products. Corporate and regional aircraft revenues were lower as the fourth quarter of the prior year included revenue from tooling on the Mitsubishi Regional Jet program, which did not recur, partially offset by increases in deliveries for the Gulfstream G650 and G280 models. Military products increased as revenues on the KC-390 program and growth on the Apache helicopter offset reduced sales related to the Blackhawk program.

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LMI Aerospace , Inc. Announces Fourth Quarter and Full-Year 2012 Results