Wesco Aircraft Holdings Reports Results for Fiscal Third Quarter 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 third quarter ended June 30, 2012.

Highlights

Third quarter revenue of $189.3 million, up 5.2% compared to $180.0 million in the prior year
Year-to-date revenue of $564.0 million, up 6.5% compared to the prior year period, and up 16.3% excluding the two Charleston programs completed in 2011
Net income of $22.3 million, with Diluted Earnings Per Share of $0.23
Adjusted Net Income of $22.6 million, with Adjusted Diluted Earnings Per Share of $0.24
Fiscal 2012 Third Quarter Results

Revenue for the fiscal third quarter was $189.3 million, an increase of 5.2% compared to $180.0 million in the prior year period. Wesco again demonstrated strong international growth during the quarter with revenues in the Rest of World segment increasing by 34.5% compared to the prior year. In the third quarter, Ad hoc, JIT and LTA sales as a percentage of net sales represented 39%, 24% and 37%, respectively, compared to 40%, 28% and 32%, respectively, for the same period last year.

Net income for the third quarter of fiscal 2012 was $22.3 million, resulting in Diluted Earnings Per Share of $0.23. This compared to $14.0 million, or $0.15 per share in the prior year period. The increase in net income was due to a reduction in interest expense and a lower effective tax rate, partially offset by higher selling, general and administrative expenses. Adjusted EBITDA for the third quarter was $41.1 million as compared to $43.9 million in the third quarter of 2011. Adjusted Net Income was $22.6 million, resulting in Adjusted Diluted Earnings Per Share of $0.24, compared to $21.1 million, or $0.23 per share in the prior year period.

Randy Snyder, Wesco’s Chairman, President, and Chief Executive Officer said, “We are pleased with our performance during the past quarter as we have continued to increase the scope of our contracts with our valued customers and have also started to see the positive impact of our efforts to work through excess customer-owned inventory on some of our newer contracts. We are also very excited about our recent acquisition of Interfast, and are working closely with the Interfast team to find ways to expand key customer relationships and to bolster our efforts to serve the Airline and MRO markets.”

First Nine Months of Fiscal 2012

Revenue for the first nine months of fiscal 2012 was $564.0 million, an increase of 6.5% compared to $529.6 million in the prior year period. On a year-to-date basis, Ad hoc, JIT and LTA sales as a percentage of net sales represented 38%, 26% and 36%, respectively, compared to 38%, 31% and 31%, respectively, for the first nine months of fiscal 2011.

Net income for the period was $65.2 million, resulting in Diluted Earnings Per Share of $0.68. This compared to $57.6 million or Diluted Earnings Per Share of $0.62 in the prior year period. Adjusted EBITDA on a year-to-date basis was $126.9 million as compared to $132.9 million in 2011. Adjusted Net Income was $67.7 million, resulting in Adjusted Diluted Earnings Per Share of $0.71, compared to $67.2 million, or $0.73 per share in the prior year period.

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. In conjunction with the acquisition, Wesco has named Peter Oleck, the former President of Interfast, as Vice President, Airlines and MRO in order to drive the Company’s growth in those important markets.

Financial Outlook

At this time, Wesco is reiterating its previous guidance for full year fiscal 2012 revenues of between $740-760 million, representing a growth rate of approximately 4-7% over 2011 results, or 12-15% excluding the Charleston programs. Diluted EPS and Adjusted Diluted EPS are expected to be in the range of $0.90 to $0.95, and $0.92 to $0.97, respectively. These EPS estimates are based on estimated 2012 fiscal year averages of 92.4 million basic shares and 95.6 million diluted shares.