Air Industries Group · AMEX:AIRI
Air Industries — Investor Presentation (September 2020)
12 slides from Air Industries's investor presentation, Sep 25, 2020
Slide 1: Air Industries Group Investor Presentation
AIR INDUSTRIES GROUP Investor Presentation September 2020
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: Aerospace Industry
Aerospace Industry: The Aerospace Industry has several layers of suppliers arranged in “Tiers” — with each Tier producing larger, more complicated parts. These products are usually sold to the OEM’s, Boeing, Airbus, Lockheed, Northrop Grumman etc., but may also be sold to end-users as spares. There
Slide 4: History and Structure
History and Structure: Air Industries Group is a 50-year old manufacturer of aerospace components including landing gear, flight control and jet engine components. Our products are predominately used in military aircraft. The Company is publicly listed on the NYSE — American, trading under the symbo
Slide 5: 2019 — Results
2019 — Results Net Sales Cost of Sales Gross Profit Gross Profit as a % of Sales Operating Expenses Operating Income Abandonment of 360 Motor lease Write off of Capitalized Engineering Income (Loss) from Operations Interest and Financing Costs Other Income, Net Loss before Income Taxes (Benefit from
Slide 6: 2020: Positioned for Continued Growth
2020: Positioned for Continued Growth Reducing Debt, Raising Cash, Increasing Equity, Investing in the Business: Refinanced Senior Credit Facility with Sterling National Bank (SNB): ¢ Reduced interest rate to 3.5% from 9.5% - nearly 2/3" reduction in cash cost. « Reduced Principal amortization by $
Slide 7: Covid Impact
Covid 19 Impact Covid 19 has had a serious immediate impact on the aerospace industry. The impact has been vastly different for the Commercial versus the Defense Aerospace sectors. Commercial Aerospace: The effects are severe and may be long-lasting: ¢ Production of new aircraft by Boeing & Airbus h
Slide 8: Covid Impact (con't)
Covid 19 Impact (con’) Defense Aerospace: The effects were severe but appear to be transitory. Defense contractors were deemed essential businesses and continued to operate throughout the pandemic ¢ There was no material change in orders for defense related product ¢ The DOD mandated accelerated pro
Slide 9: Covid Impact on Air Industries
Covid 19 Impact on Air Industries: Absenteeism spiked in April, improved in May, returning to normal in June. Total labor hours in Q1 were ahead of last year, plunged in April & May, returned to normal in June, improved further in July & August Intermittent, temporary closure of processing (heat-tre
Slide 10: Covid Impact on Air Industries
Covid 19 Impact on Air Industries: The combination of absenteeism, closure of processing houses, and other supply-chain disruption depressed sales in the 2"4 Quarter. All of these disruptions have moderated in Q3 as sales are returning to normal. Sales in Q3 are significantly ahead of Q2. Sales to e
Slide 11: Backlog of Firm Orders
Backlog of Firm Orders: - Consists only of Firm Funded Orders — not “guess-timates” of possible unfunded, follow-on orders. - CMS backlog by Aircraft Platform — Commercial & Military 18 Month Backlog Change Aircraft Platform 08/31/20 ways |[ § % Fg $ 18243 $ 20813 § (2570) -12% UH-60 BlackHawk 18,52
Slide 12: Summary
Summary: Air Industries is ney pestiones as a supplier of military aircraft components on active and growing aircraft platforms: F-18 — Hornet. 1,500 in service with service life of 10+ years remaining UH-60 — BlackHawk. 3,000 in service with new production continuing F-35 — Joint Strike Fighter. Fu
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