Wesco Aircraft Holdings Reports Results for Fiscal Fourth Quarter and Full Year 2012

VALENCIA, Calif.—(BUSINESS WIRE)—Wesco Aircraft Holdings, Inc. (NYSE: WAIR), a leading provider of comprehensive supply chain management services to the global aerospace industry, today announced results for its fiscal fourth quarter ended September 30, 2012.

Highlights

Fourth quarter revenue of $212.2 million, up 17.0% compared to $181.3 million in the prior year
Fourth quarter Net Income of $27.0 million, with Diluted Earnings Per Share of $0.28
Fourth quarter Adjusted Net Income of $27.4 million, with Adjusted Diluted Earnings Per Share of $0.29
Fiscal year 2012 revenue was $776.2 million, up 9.2% compared to the prior year, and up 17.2% excluding the two Charleston programs completed in 2011
Fiscal year 2012 Net Income of $92.2 million, and Diluted Earnings Per Share of $0.96
Fiscal year 2012 Adjusted Net Income of $95.1 million, and Adjusted Diluted Earnings Per Share of $0.99
The acquisition of Interfast Inc. was completed on July 3, 2012
Fiscal 2012 Fourth Quarter Results

Revenue for the fiscal fourth quarter was $212.2 million, an increase of 17.0% compared to $181.3 million in the prior year period. The increase in the North America segment was 15.2% which was mainly driven by the Interfast acquisition. Wesco again demonstrated strong international growth during the quarter with revenues in the Rest of World segment increasing by 44.3% compared to the prior year. In the fourth quarter, Ad hoc, JIT and LTA sales as a percentage of net sales represented 40%, 25% and 35%, respectively, the same proportions experienced in the fourth quarter last year.

Net income for the fourth quarter of fiscal 2012 was $27.0 million, resulting in Diluted Earnings Per Share of $0.28. This compared to $18.0 million, or $0.19 per share in the prior year period. The increase in net income was due to higher sales, including the Interfast acquisition, a lower selling, general and administrative cost structure and a lower effective tax rate, partially offset by lower gross profit margins between the two periods. Adjusted EBITDA for the fourth quarter was $45.9 million as compared to $46.1 million in the fourth quarter of 2011. Adjusted Net Income was $27.4 million, resulting in Adjusted Diluted Earnings Per Share of $0.29, compared to $22.4 million, or $0.24 per share in the prior year period.

Randy Snyder, Wesco’s Chairman, President, and Chief Executive Officer said, “We are very pleased with our performance during the past quarter. We continue to increase the scope of our customer contracts and, operationally, we are increasing our productivity. The integration of our recent acquisition, Interfast, is ahead of expectations and we are already gaining some of the anticipated benefits, including expanded customer relationships and more effective purchasing. I am very excited about our opportunities in the coming year.”

Full Year Fiscal 2012

Revenue for the full year fiscal 2012 was $776.2 million, an increase of 9.2% compared to $710.9 million in 2011. During fiscal 2012, Ad hoc, JIT and LTA sales as a percentage of net sales represented 38%, 26% and 36%, respectively, compared to 39%, 29% and 32%, respectively, for fiscal 2011.

Net income for fiscal 2012 was $92.2 million, resulting in Diluted Earnings Per Share of $0.96. This compared to $75.6 million or Diluted Earnings Per Share of $0.81 in fiscal 2011. Adjusted EBITDA in fiscal 2012 was $172.7 million as compared to $179.0 million in the prior fiscal year. Adjusted Net Income was $95.1 million, resulting in Adjusted Diluted Earnings Per Share of $0.99, compared to $90.1 million, or $0.97 per share in the prior year.

Recent Activity

On July 3, 2012, the Company completed its previously announced acquisition of substantially all of the assets of Interfast Inc., for CDN$134 million via a combination of cash and borrowings under its existing revolving credit facility. Interfast is a value-added distributor of specialty fasteners, fastening systems and production installation tooling for the aerospace, electronics and general industrial markets.

Financial Outlook

Based on the strong performance during fiscal year 2012, Wesco expects full year revenues for fiscal year 2013 of between $865 – $890 million, representing a growth rate of approximately 11% – 15% over 2012 results. Organic growth for 2013 will be mid to high single digits. We are assuming military revenues remain relatively flat and become a lower percentage of our total sales in 2013. Diluted EPS and Adjusted Diluted EPS are expected to be in the range of $1.08 to $1.12, and $1.14 to $1.19, respectively. These EPS estimates are based on estimated 2013 fiscal year averages of 92.9 million basic shares and 96.6 million diluted shares. The effective tax rate is expected to be approximately 35%.