Air Industries Group · AMEX:AIRI
Air Industries — Taglich Brothers Investor Conference (September 2022)
17 slides from Air Industries's conference presentation, September 2022
Slide 1: Taglich Brothers Investor Conference
(NYSE American: AIRI) www.airindustriesgroup.com TAGLICH BROTHERS TAGLICH BROTHERS INVESTOR CONFERENCECONFERENCE (NYSE: AIRI) 1460 Fifth Avenue MAY September 2022 Bay Shore, 2021 NY 11706 P: 631-968-5000 1 1 www.airindustriesgroup.com
Slide 2: from those contained in the forward-looking statements. See the Company’s SEC
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 in the forward-lookin
Slide 3: Tier 1 Manufacturer of Aerospace and Defense Precision Assemblies
➢ 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 ➢ Growth Strategy Focused on: ▪ Increa
Slide 4: Strategic Locations and Facilities
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 Initiative! BAY SHORE, NY Com
Slide 5: Our Mission, History, People and Centers of Excellence
Our Mission ➢ Understanding the needs of our customers and translating those needs into daily actions that drive us to meet or exceed customer expectations. Our History ➢ For over 80 years, we have supported the progress of our nation’s defense and commercial aviation sectors. Our People ➢ The peopl
Slide 6: Turnaround from 2017 through 2020
2017 ➢ Angry Customers…30% of backlog “past-due” ➢ Angry Vendors… Accounts Payable $10M; 80 “days-of-sales” ➢ Angry Bank…9.5% interest rate, extortionate fees, $3.6M interest expense ➢ Debt Burden…$26+M ➢ Non-performing subsidiaries…Net Loss of $22M! 2018 - 2020 ➢ Disposed of three non-performing su
Slide 7: 2022 Immediate Priorities
2021 ➢ Record growth in revenue, gross profit, contained expenses = strong profitability. ➢ Massive investment in new equipment – continuing today. ➢ Significant expansion of business development activity – with the Covid reopening. 2022 – Immediate Priorities ➢ Focus on replicating proven LI growth
Slide 8: Growth strategy: vertical integration, licensing, aftermarket, acquisitions
➢ Vertically Integrate Processing – Underway Now ▪ Reduced reliance on outside firms, control and cost benefits ▪ Painting, Assembly, Heat Treating, Grinding, Non-Destructive Testing are first targets ➢ Expand Sterling Engineering’s business ▪ New equipment to expand capabilities ▪ Capitalize on new
Slide 9: The Aerospace Industry is arranged in Tiers
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 9 (NYSE American: AIRI) www.airindustriesgroup.com
Slide 10: Sales by Customer - Percent of Total
➢ 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% 40.0% 35.0% Sales by Customer- Percent o
Slide 11: Sales by Aircraft Platform Percent of Total
➢ Five aircraft platforms constitute the majority of sales. ➢ F-35 sales declined, ➢ But were more than offset by increased sales in Blackhawk, F-18, and Geared Turbo Fan (GTF). 25.0% Sales by Aircraft Platform Percent of Total 20.0% 15.0% 10.0% 5.0% 0.0% Blackhawk E2-D F-35 GTF F-18 Q1 2022 18.6% 1
Slide 12: Five aircraft platforms account for 80% of sales
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 Industries has a balanced book of business. S
Slide 13: Key aircraft platforms: E2-D, F-35, Geared Turbo Fan
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 – notably Japan to counter China threat. Lockheed M
Slide 14: Twelve Months Ended 2021 vs 2020 results
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 17.8% ➢ Gross Profit of $10.2M up 57.4% ➢ Gross Margin up 4.4 percentage points to 17% ➢ Operating Costs st
Slide 15: Three Months Ended March 2022 vs 2021 results
Revenue decline due to supply chain and new contract ramp-up. Earnings, Gross Margin & EBITDA were equal to or better than prior year. Three Months Ended March – 2022 to 2021 ➢ Revenue of $12.1M down (12.0%) from 2021 ➢ Gross Profit of $2.1M up 15.6% from 2021 ➢ Gross Margin up 4.1 percentage points
Slide 16: Investment summary
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 ➢ Integration of Long Island /
Slide 17: Thank You For Your Attention
THANK YOU FOR YOUR ATTENTION (NYSE American: AIRI) www.airindustriesgroup.com
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