Air Industries Group · AMEX:AIRI
Air Industries — Sidoti Micro-Cap Conference 2022
16 slides from Air Industries's conference presentation, September 2022
Slide 1: Sidoti Micro-Cap Conference
(NYSE American: AIRI) www.airindustriesgroup.com SIDOTI TAGLICH & COMPANY MICRO-CAP BROTHERS CONFERENCECONFERENCE AUGUST September (NYSE: AIRI) 1460 Fifth Avenue 2022 Bay Shore, 2021 NY 11706 P: 631-968-5000 1 1 www.airindustriesgroup.com
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; 5 Major Platforms Gr
Slide 4: Locations & Competencies
Locations & Competencies Strategic Locations = Access to OEMs, Deep Talent Pool, Skilled Labor, Suppliers 2 Facilities BARKHAMSTED, CT 150,000 Square Feet Turbine Engine Components 205 Jet Engine Components 80% Military Ground Power Turbines Helicopter Assemblies Special Processes – New Init
Slide 5: Charting a New Flight Plan
Charting a New Flight Plan 2018 - 2020 Disposed of three non-performing subsidiaries. Consolidated Long Island factories, closed headquarters. Restored Customer Relationships, greatly improved on-time performance, dramatic reduction in “past-due” product. Restored Vendor Relationships, reduc
Slide 6: Success in Winning Major LTAs
Success in Winning Major LTAs Since April 2021, we have won LTAs and new product orders across all major platforms: U.S. Navy F-18: $6+ million in purchase orders to manufacture major landing gear components under a longstanding license. Geared Turbo Fan: $7.4 million order for “Thrust Struts,
Slide 7: Driving Long-Term Growth
Driving Long-Term Growth Vertically Integrate Processing – Underway Now Reduced reliance on outside firms, control and cost benefits Painting (installation complete), Assembly, Heat Treating, Grinding, Non- Destructive Testing are first targets Expand Sterling Engineering’s business New eq
Slide 8: 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 8 (NYSE American: AIRI) www.ai
Slide 9: 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 10: 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 11: Five Aircraft Platforms = 70% - 80% of Sales
Five Aircraft Platforms = 70% - 80% of Sales Five aircraft platforms constitute the majority of sales. F-35 sales are subject to government funding and product mix. Increased sales in Blackhawk, F-18, and Geared Turbo Fan (GTF). 25.0% Sales by Aircraft Platform Percent of Total 20.0% 15.0% 10.
Slide 12: Five Largest Customers = 80%-90% of Sales
Five Largest Customers = 80%-90% of Sales Sales to each customer as a percent of total have been relatively stable. Sales to DOD Direct and Rohr increased. Sikorsky sales declined as 2021 was the final year of a five-year LTA. This year, new Sikorsky LTA’s worth up to $28.3M have been won 45.0
Slide 13: Financial Summary - Full Year 2021
Financial Summary - Full Year 2021 Earnings, Gross Margin & EBITDA increases resulted from growing revenue – earnings leverage, and the end of some low-margin contracts. Twelve Months Ended – 2021 to 2020 Revenue of $58.9M up 18% Gross Profit of $10.2M up 57% Gross Margin up 4.4 percentage poi
Slide 14: Financial Summary - Q2 vs. Q1 2022
Financial Summary - Q2 vs. Q1 2022 Sequential comparisons show solid progress in a market challenged by supply chain disruptions, including delays in raw materials and outside processing. Quarters Ended June 2022 vs. March 2022 Revenue of $14.0M up 16% Gross Profit of $2.4M up 17% Gross Margin
Slide 15: Why Air Industries Group?
Why Air Industries Group? Defense-Centric Complemented by opportunities in commercial aviation recovery Important and Stable Aircraft Platforms and Customers Supported by 5 aircraft platforms and 5 customers that are stable and important to national defense Improving Operational Performance In
Slide 16: Thank You for Your Attention
THANK YOU FOR YOUR ATTENTION (NYSE American: AIRI) www.airindustriesgroup.com
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