Air Industries Group · AMEX:AIRI
Air Industries — Taglich Brothers Conference (April 2022)
16 slides from Air Industries's conference presentation, April 2022
Slide 1: Investor Presentation - Taglich Brothers Conference
INVESTOR PRESENTATION TAGLICH BROTHERS CONFERENCE April 2022 September 2021 1
Slide 2: Safe Harbor Statement
SAFE HARBOR STATEMENT Except for the historical information contained herein, the matters discussed in this presentation contain forward-looking statements. The accuracy of these statements is subject to significant risks and uncertainties. Actual results could differ materially from those contained
Slide 3: About Air Industries Group (AIRI)
About Air Industries Group (AIRI) Tier 1 Manufacturer of Aerospace and Defense Precision Assemblies and Components for Mission Critical Applications Prime Contractor to U.S. Department of Defense Important, Diverse and Stable Customers and Platforms: 5 Major Customers: Goodrich, Sikorsky, U.
Slide 4: Locations & Competencies
Locations & Competencies Strategic Locations = Access to OEMs, Deep Talent Pool, Skilled Labor, Suppliers BARKHAMSTED, CT Turbine Engine Components Jet Engine Components 2 Facilities Ground Power Turbines 150,000 Square Feet Helicopter Assemblies 205 Special Processes – New 80% Military Init
Slide 5: Why Invest in Air Industries Group
Why Invest in Air Industries Group Defense Centric Complemented by opportunities in commercial aviation recovery Important and Stable Aircraft Platforms & Customers Supported by 5 aircraft platforms and 5 customers that are stable and important to national defense Improving Operational Performan
Slide 6: Why Invest in Air Industries Group - Earnings Leverage
Why Invest in Air Industries Group Earnings Leverage Earnings, Gross Margin & EBITDA are Highly Correlated with Revenue Twelve Months Ended – 2021 to 2020: Revenue of $58.9M up 17.8% Gross Profit of $10.2M up 57.4% Gross Margin up 4.4 percentage points to 17% “Contribution Margin” = 42% on
Slide 7: The Aerospace Industry
The Aerospace Industry The Aerospace Industry is arranged in Tiers – with products becoming increasingly complex for ultimate delivery to Original Equipment Manufacturers. Air Industries’ business is primarily Tier One and Two. Nose Landing Gear for E2-D Naval Aircraft 7
Slide 8: Air Industries Group's 5 Largest Customers = 85-90% of Sales
Air Industries Group’s 5 Largest Customers = 85 – 90% of Sales Sales to each customer as a percent of total have been relatively stable. Sales to Collins Landing Systems, DOD Direct and Rohr increased. Sikorsky sales declined as 2021 was the final year of a five-year LTA. Multiple new Sikorsky
Slide 9: Five Aircraft Platforms = 80 to 90% of Sales
Five Aircraft Platforms = 80 to 90% of Sales Five aircraft platforms constitute the majority of sales. Increased sales in F-35, F-18, E-2D and Geared Turbo Fan (GTF)… …More than offset S-70 Blackhawk sales decline (fifth year of 5-year Multiyear LTA). New 5-year Blackhawk LTA awarded in 2022.
Slide 10: A Balance of Legacy & New Aircraft Platforms
A Balance of Legacy & New Aircraft Platforms A balanced portfolio of five aircraft platforms account for 80% of sales. These platforms are critical for defense and include legacy aircraft that generate after- market replacement demand; and with new aircraft at, or near, full rate production the Air
Slide 11: A Balance of Legacy & New Aircraft Platforms
A Balance of Legacy & New Aircraft Platforms Northrop Grumman E2-D: Primary Naval Battle Management / Command & Control aircraft. Vital for aircraft carrier operations. “D” versions in Full Rate Production now to replace all older “C” versions in service. Also operated by 7 foreign militaries – nota
Slide 12: Significant Capital Investment for Growth
Significant Capital Investment for Growth 4,000 In 2020 and 2021, Air Industries 3,500 made significant investments in 3,000 Capital Investments (000's) modern, state-of-the-art, 2,500 machining centers. This new 2,000 equipment represents a net expansion of capacity as 1,500 existing machines were
Slide 13: Bookings & Backlog
Bookings & Backlog: Backlog: Air Industries’ 18-month backlog represents only firm purchase orders from customers. The decline from a high of $91 million in June 2021 to $75 million at December 2021 resulted from the end of several Long- Term Agreements which have been renewed in 2022 and backlog ha
Slide 14: Debt to Equity & Debt to EBITDA Ratios
Debt to Equity & Debt to EBITDA Ratios Air Industries’ improved performance has improved debt to equity, and EBITDA to debt ratios. Total debt has been reduced, expensive convertible sub-debt has been reduced, Increased bank term loan financed new equipment investment at a much lower interest rate.
Slide 15: Air Industries Group (AIRI) Summary
Air Industries Group (AIRI) Summary Tier 1 Manufacturer of Aerospace and Defense Precision Assemblies and Components for Mission Critical Applications Prime Contractor to U.S. Department of Defense Important, Diverse and Stable Customers and Platforms: 5 Major Customers: Goodrich, Sikorsky,
Slide 16: Thank You For Your Attention
THANK YOU FOR YOUR ATTENTION QUESTIONS ? 16
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