Air Industries Group · AMEX:AIRI
Air Industries — Investor Presentation (October 2024)
23 slides from Air Industries's investor presentation, Oct 16, 2024
Slide 1: Investor Presentation October 16, 2024
INVESTOR PRESENTATION OCTOBER 16, 2024 NYSE AMEX: AIRI A leading manufacturer of precision components and assemblies used in flight - critical military and commercial applications. www.AirIndustriesGroup.com
Slide 2: Safe Harbor - Forward Looking Statements; Use of Non-GAAP Financial Measures
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 - lo
Slide 3: Air Industries Group Overview
Air Industries Group Overview NYSE AMEX: AIRI TAKING OFF
Slide 4: Air Industries Overview – Locations and Capabilities
AIR INDUSTRIES OVERVIEW – LOCATIONS AND CAPABILITIES Ensuring the safety of our warfighters and commercial passengers since 1941. UH - 60 Blackhawk F - 18 Hornet Advanced E - 2D Hawkeye PW1000G (GTF) CH - 53K King Stallion F - 35 Lightning II (JSF) www.AirIndustriesGroup.com Strategic Locations = Ac
Slide 5: Essential Supplier in the Aerospace Industry
03 02 01 0 0 ESSENTIAL SUPPLIER IN THE AEROSPACE INDUSTRY We play a critical role in the supply chains of military and commercial primes, U.S government, international users, tier 1 and tier 2 integrators, as well as suppliers. We often receive Long - Term Agreements (“LTAs”) from our customers, lea
Slide 6: Customers and End-Users
CUSTOMERS AND END - USERS Aerospace & Defense Primes U.S. Government
Slide 7: Key Programs
KEY PROGRAMS AIRI IS VITAL TO U.S. DEFENSE AND COMMERICAL AEROSPACE UH - 60 Blackhawk F - 18 Hornet Advanced E - 2D Hawkeye PW1000G (GTF) CH - 53K King Stallion F - 35 Lightning II (JSF)
Slide 8: A Few of Our Products - Reliability You Can Count On
A FEW OF OUR PRODUCTS - RELIABILITY YOU CAN COUNT ON UH - 60 Blackhawk Mixer Assembly F - 18 Hornet Landing Gear E - 2D Advanced Hawkeye Main Landing Gear Strut PW1000G (GTF) Thrust Strut CH - 53K King Stallion Chaff Pod Assembly F35 Lightning II JSF NLG Steering Collar
Slide 9: Why Buy the Stock? And Why Now?
Why Buy the Stock? And Why Now? Turning Sales Into Profits TAKING OFF
Slide 10: Strategic Plan - Three Pillars of Growth
STRATEGIC PLAN - THREE PILLARS OF GROWTH The Company is successfully executing an integrated approach for organic growth through three initiatives: 1) Portfolio Expansion: • Quality, delivery performance, increased demand, have improved market share, evidenced by recently announced $110M contract ex
Slide 11: Customer Transition 2022 - 2024
CUSTOMER TRANSITION 2022 - 2024 Backlog reduction of nearly $9M with two legacy customers from 2022 - 2023 has been more than offset by increases in backlog with five new and legacy customers in 2024. (7,213) (1,223) 2,514 3,548 7,180 10,989 11,323 (10,000) (5,000) - 5,000 10,000 15,000 Change in Ba
Slide 12: Improving Business Development Efforts
IMPROVING BUSINESS DEVELOPMENT EFFORTS 0.75 0.75 0.89 0.92 1.20 1.13 1.20 1.39 0.40 0.60 0.80 1.00 1.20 1.40 1.60 Dec-22 Mar-23 Jun-23 Sep-23 Dec-23 Mar-24 Jun-24 Sep-24 Dec-24 Book to Bill Ratio (TTM) More than 50% Increase over the past 12 - Months Our Book to Bill ratio (new bookings/sales) has i
Slide 13: Improved BD Efforts Leads to Growing Backlog
IMPROVED BD EFFORTS LEADS TO GROWING BACKLOG 86,274 105,189 40,000 50,000 60,000 70,000 80,000 90,000 100,000 110,000 Dec-22 Mar-23 Jun-23 Sep-23 Dec-23 Mar-24 Jun-24 Sep-24 Full Funded Backlog Over $ 100 Million 22% Increase Since December 2022 • Our improved bookings of new business results in a g
Slide 14: Current Opportunities – Prospects
CURRENT OPPORTUNITIES – PROSPECTS • The Company’s pipeline is full, with over $250M in outstanding bids: • Production Opportunities: $200M • Aftermarket Opportunities: $50M • While the Company does not expect to be awarded all of this business, a reasonable capture rate would move the revenue needle
Slide 15: Operating Income (Loss) 2019 to 9/30/2024
OPERATING INCOME (LOSS) 2019 TO 9/30/2024 • Operating income is the primary measure of operating performance. Results have been highly variable. • In 2020 & 2021 varying greatly due to the COVID - 19 disruption. • In 2022 & 2023 due to customer transition. • Preliminary results for the nine months e
Slide 16: Preliminary Quarterly & Nine Months Results
PRELIMINARY QUARTERLY & NINE MONTHS RESULTS (preliminary, unaudited / un - reviewed): THREE MONTHS SEPTEMBER • Sales – Just over $12.5 million, marginally higher than 2023 • Gross Profit and Margin - Improved significantly compared to 2023 • Operating Expense – Well controlled despite inflationary e
Slide 17: Attractive Share Price Multiple & Valuation
ATTRACTIVE SHARE PRICE MULITIPLE & VALUATION • Shares trade at an attractive valuation. A major investment bank calculates the average multiple of similar defense suppliers at 14.2X EBITDA (as of 10/02/2024) . • AIRI shares trade at 8.9X, a 37% discount. If the multiple expands to the average, it ex
Slide 18: Key Takeaways: Taking Off and Positioned for Growth
Taking Off and Positioned for Growth x The Company is successfully executing it’s five - year strategic plan. x The three pillars of our growth initiative continue to solidify: x Portfolio expansion (existing customers) x New customers x Aftermarket x Strategic investments in new equipment have posi
Slide 19: The Market Supports Our Multi-Year Strategy to Grow
The Market Supports Our Multi - Year Strategy to Grow Taking Off and Positioned for Growth
Slide 20: Our Growth Potential Is Unlimited
OUR GROWTH POTENTIAL IS UNLIMITED With FY 2023 net sales of $51.5 million, we have plenty of room to grow, and we are confident that we can achieve sustainable and profitable growth in 2024. We operate in the market of High Precision Machined Components with over $100B in annual spend. Based on our
Slide 21: Focus on Core Market Expansion
FOCUS ON CORE MARKET EXPANSION Near - Term (0 - 1 year) - $4.6B Addressable www.AirIndustriesGroup.com TARGET THE DEFENSE (DLA) AFTERMARKET TARGET LEGACY COMMERCIAL CONSTRAINED MARKETS BUSINESS JET LANDING GEAR Near - Term (0 - 1 year) - $1.4B Addressable Mid - Term (1 - 3 years) - $1.6B Addressable
Slide 22: Summary – Why Buy the Stock? And Why Now?
SUMMARY – WHY BUY THE STOCK? AND WHY NOW? » OPERATING RESULTS ARE IMPROVING . » OUR FUTURE IS SUPPORTED BY A GROWING BACKLOG. » GROWTH IS EVIDENT IN BOTH LEGACY AND NEW CUSTOMERS AND THE COMPANY IS ACTIVELY PURSUING PROGRAMS THAT REPRESENT THE CORE OF FUTURE FLIGHT. » THE ANNOUNCEMENT OF NEW MAJOR A
Slide 23: Thank You
Thank You Air Industries Group (NYSE AMEX: AIRI)
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