Air Industries Group · AMEX:AIRI
Air Industries — Taglich Brothers Investment Conference September 2021
16 slides from Air Industries's conference presentation, Sep 13, 2021
Slide 1: Taglich Brothers Investment Conference September 2021
TAGLICH BROTHERS CONFERENCE September 2021 1 TAGLICH BROTHERS INVESTMENT CONFERENCE September 2021
Slide 2: Safe Harbor Statement
SAFE HARBOR STATEMENT 2 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 con
Slide 3: Locations & Competencies
2 Facilities 150,000 Square Feet 205 80% Military BARKHAMSTED, CT » Jet Engine Components » Ground Power Turbines » Helicopter Assemblies » Special Processes – New Initiative! BAY SHORE, NY » Landing & Arresting Gear » Flight Safety Controls » Aircraft Structural Assemblies » Helicopter Assemblies L
Slide 4: Why Invest in Air Industries Group
Why Invest in Air Industries Group 4 Improving Operational Performance » Improved on - time performance with customers » Integration of Long Island / Connecticut facilities Defense Centric » Largely sheltered from the commercial aviation storm Important and Stable Aircraft Platforms » 80% of revenue
Slide 5: Earnings Leverage: Q2 2021 vs Q2 2020
Q2 – 2021 v Q2 – 2020: » Revenue increased by $ 7 million » Gross Profit increased by $ 2 million » Gross Margin increased by 10 percentage points to 17% of sales » “Contribution Margin” of 29% of increased revenue » Ebitda Margin of 10% of sales versus a loss in 2020 Further increases in sales shou
Slide 6: The Aerospace Industry
The Aerospace Industry 6 The Aerospace Industry is arranged in Tiers – with products becoming increasing 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
Slide 7: Sales by Customer
Sales by Customer 7 Air Industries Group’s five largest customers comprise approximately 90% of sales. Sales to all have been very stable for the 18 months ended June 2021. 32% 37% 30% 27% 13% 14% 6% 6% 6% 7% 13% 10% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 2020 6 - MOS 2021 Sales by Customer as a Perc
Slide 8: A Balance of Legacy & New Aircraft Platforms
A Balance of Legacy & New Aircraft Platforms 8 Sikorsky UH - 60 (S - 70 ) Blackhawk : US Army workhorse helicopter . 4 , 000 produced, In production for over 40 - years and will continue for at least five years, perhaps longer . Operated by nearly 25 countries worldwide . Current fleet continuing in
Slide 9: A Balance of Legacy & New Aircraft Platforms
A Balance of Legacy & New Aircraft Platforms 9 Northrop Grumman E 2 - 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 militari
Slide 10: Five Aircraft Platforms – 80% of the Business
Five Aircraft Platforms – 80% of the Business 10 32% 29% 15% 20% 14% 17% 11% 9% 7% 8% 20% 18% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 2020 6 - MOS 2021 Sales by Aircraft Platform BlackHawk F-35 F-18 E2-D GTF All other
Slide 11: Bookings & Backlog
Bookings & Backlog: 11 Backlog: Air Industries’ 18 - month backlog, which represents firm purchase orders from customers declined during 2020 as Covid disrupted customer’s production and thus ordering of new product. During the six months ended June 2021 conditions returned to normal and backlog inc
Slide 12: Significant Capital Investment for Growth
Significant Capital Investment for Growth 12 - 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 2017 2018 2019 2020 TTM 06-21 2021 (P) Capital Investments (000's) 15.1% 14.4% 10.1% 39.6% 46.8% 0% 10% 20% 30% 40% 50% 60% 2017 2018 2019 2020 TTM 06-21 Capital Investment as a Percent of Net PP&E In
Slide 13: Sales – Trailing Twelve Months – June 2021
Sales – Trailing Twelve Months – June 2021 13 Air Industries sales have rebounded from the Covid trough of 2020, returning to, and exceeding pre - pandemic levels. Sales for the twelve months ended June 2021 were $ 57 million exceeding calendar year 2019 by $ 2.7 million or 5%. 40,000 42,000 44,000
Slide 14: Gross Profit – Operating Costs – Operating Income
Gross Profit – Operating Costs – Operating Income Covid began to affect sales and gross profit in Q 2 - 2020 with gross profit impairment continuing for three quarters . Operating costs remain well contained . Operating Income was positive pre - Covid and returned to profit for the twelve months end
Slide 15: Debt to Equity & Debt to EBITDA Ratios
Debt to Equity & Debt to Ebitda Ratios 15 Air Industries’ improved performance has improved debt to equity, and Ebitda to debt ratios. While debt has remained constant, convertible subordinated debt has been reduced, while our Bank term loan used finance new equipment purchases was increased but at
Slide 16: Thank You For Your Attention
16 THANK YOU FOR YOUR ATTENTION QUESTIONS ?
Air Industries Group — Taglich Brothers Investment Conference September 2021 on 6ix