Timco Aviation Services

[Checking it Out]

Press Release Source: TIMCO Aviation Services, Inc.


TIMCO Aviation Services, Inc. Announces 2003 Results
Friday April 16, 4:37 pm ET


GREENSBORO, N.C., April 16 /PRNewswire-FirstCall/ -- TIMCO Aviation Services, Inc. (OTC Bulletin Board: TMAS - News) today announced its results of operations for the 2003 fiscal year. Revenue for the year was $243 million, a 33% increase over 2002 revenue of $182 million. The net loss for 2003 was $0.3 million ($0.01 per basic and diluted share), compared to net income of $7.0 million ($0.27 per basic share and $0.03 per diluted share) for 2002.
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The net loss for 2003 included a benefit of $3.7 million from the settlement of obligations and changes in estimates of exposures related to discontinued operations and various legacy items and a $0.8 million income tax benefit resulting from the IRS finalizing audits on the 1996 - 1999 tax years. Net income for 2002 included: (i) a $27.3 million gain resulting from forgiveness of debt as a result of the Company's February 2002 debt and equity restructuring, (ii) a net $4.4 million non-cash charge relating to the Company's agreement to settle a then-outstanding class action lawsuit and (iii) a $3.8 million tax benefit arising from a change in U.S. federal tax laws governing the carryback of net operating losses. Without the effects of these items, the Company would have reported a 2003 net loss of $4.8 million, compared to a net loss of $19.7 million for 2002. Management believes that comparison of its 2003 net loss to the 2002 net loss without the effect of the above-described items provides a useful measure for investors to compare the Company's period-to-period results of operations.

The Company also announced that its auditor's report on the Company's 2003 financial statements does not contain a going concern modification. The Company's auditors had placed such a modification on their report regarding the Company's financial statements during the last four years.

Roy T. Rimmer, Jr., the Company's Chairman and Chief Executive Officer, stated: "2003 was a year of tremendous progress for our Company. Our customer base has been substantially broadened during the year and our revenue from operations is finally returning to pre-September 11, 2001 levels. We have recently completed a refinancing of our senior credit facilities through the end of 2007, which provides us with increased working capital. We also recently sold our Miramar facility, resolving a significant legacy issue and allowing us to repay in full our tax retention operating lease financing. We believe that, with these changes, we are poised to benefit from the trend toward outsourced maintenance."

Gil West, the Company's President and Chief Operating Officer, stated: "During 2003, we added an airframe heavy maintenance repair station and aircraft storage facility in Goodyear, Arizona; we significantly increased our engine maintenance capabilities; and we continued to build on the momentum with growth in our engineering services and new seat manufacturing businesses. Our ability to consistently provide our customers with a high-quality and low- cost outsourced maintenance solution continues to gain the attention of a growing customer base in the airline and air-cargo industries."

C. Robert Campbell, the Company's Chief Financial Officer, stated: "We are very pleased to receive a clean opinion from our auditors. This is a major milestone in our turnaround process and acknowledges the financial and operational progress that our Company has made."

TIMCO Aviation Services, Inc. is among the world's largest providers of fully integrated aviation maintenance, repair and overhaul (MR&O) services for major commercial airlines, regional air carriers, aircraft leasing companies, government and military units and air cargo carriers. The Company currently operates four MR&O businesses: TIMCO, which, with its four active locations (Greensboro, NC, Macon, GA, Lake City, FL and Goodyear, AZ), is one of the largest independent providers of heavy aircraft maintenance services in the world; Aircraft Interior Design and Brice Manufacturing, which specialize in the refurbishment of aircraft interior components and the manufacture and sale of aftermarket parts and new aircraft seats; TIMCO Engineered Systems, which provides engineering services both to our other MR&O operations and to our customers; and TIMCO Engine Center, which refurbishes JT8D engines and performs on-wing repairs for both JT8D and CFM-56 series engine. Visit TIMCO online at www.timco.aero

 

[Ken MacTiernan]

Thanks iam!

Here in SAN UAL has Timco AMTs perform RON checks even though there are UAL AMTs stationed here in SAN. This is a little bit of iam industrial union, afl-cio affiliated power in contract concessions/language negotiations.

cio, thanks to the iam UAL could bring ALL their overhaul to Timco. With TIMCO AMTs making less than what an airline AMT makes what do you think will be the leverage airline AMTs will have in future negotiations?

At least AMFA has a cap on work they negotiate. Tell us how the iam is doing at USAir with their Airbus overhaul going out the door. And just how much work is outsourced at AA? Care to show the exact numbers?

AMFA is fighting to keep work in house. The twu, iam, ibt is for keeping just as much dues as they can in house. I guess the osm is not outsourcing is it?

 

[Bob Owens]

The answer to TIMCO is simple, we need to get them into AMFA. Bring their wages up to airline rates.

 

[High Speed Steel]

The answer to TIMCO is simple, we need to get them into AMFA. Bring their wages up to airline rates.

This morning as I sat on on my deck enjoying a cup of the morning brew I observed my son's dog running in a circle biting at her tail. As I watched this activity with some amusement, it occured to me that this is an example of what AMFA does when they try to hang on to their work...!

I have read some of your comments on the concept of organizing 3rd party maintenance, and you must recogize that there is "Strength in Numbers" but it "Only Works" if you keep your work under your own roof...!!!. Or is it simply that AMFA is a "Due's Machine"....? The concept of outsourcing out your work then "chasing it down at a third party provider" really makes little sense. To me this further erodes the value of the Aviation Maintenance Technician. Where is the logic in "feeding the flame" of outside maintenance providers...?

----------------------------
AMFA: The YUGO of the labor movement
Where bargaining means YOU GO....!

 

[Checking it Out]

Ditto!!!!!!!!

 

[Decision 2004]

This morning as I sat on on my deck enjoying a cup of the morning brew I observed my son's dog running in a circle biting at her tail. As I watched this activity with some amusement, it occured to me that this is an example of what AMFA does when they try to hang on to their work...!

Did your son's dog take a 17.5% reduction in Food Quality and lose his dog bone treats do get to keep his tail chasing in his own back yard? Is he eating Ol' Roy from WalMart instead of premium healthy dog food?

I cannot believe you equate Skilled Technicians to Dogs chasing their tail. Do all TWU advocates feel the way you do about the profession?

At least the dog doesn't have to watch you drink your brew on your deck for at least 10 more days a year now. The TWU made you show up to work on those Vacation and Holidays so you wont have to watch your dog chase his tail and dream up those intelligent thoughts.

 

[Bob Owens]

This morning as I sat on on my deck enjoying a cup of the morning brew I observed my son's dog running in a circle biting at her tail. As I watched this activity with some amusement, it occured to me that this is an example of what AMFA does when they try to hang on to their work...!

I have read some of your comments on the concept of organizing 3rd party maintenance, and you must recogize that there is "Strength in Numbers" but it "Only Works" if you keep your work under your own roof...!!!. Or is it simply that AMFA is a "Due's Machine"....? The concept of outsourcing out your work then "chasing it down at a third party provider" really makes little sense. To me this further erodes the value of the Aviation Maintenance Technician. Where is the logic in "feeding the flame" of outside maintenance providers...?

----------------------------
AMFA: The YUGO of the labor movement
Where bargaining means YOU GO....!

So you would rather engage in a bidding contest with other workers to see who can work for less instead of trying to align yourself with those other workers and keep the wages where they should be?

The problem is as you sit on the deck of your home in one of the lowest cost areas in the country you are also setting the Low wage that you feel is sufficient for you where you are on the thousands that live in high cost areas.

You should remember that American is an Airline, not an Overhaul provider. They make their money by selling tickets, not overhauling airplanes.

If the company is not paying a good wage where they make their money, where the high costs are, then service will suffer and customers will go elsewhere when ever there is the opportunity to do so. While you may claim that this hurts those employees in the high cost areas thats not necissarily so over the long run. When low pay Peoples Express went under, it allowed higher paying competitors to expand, when low pay TWU represented Pan Am went under the same thing happened. In both cases the expanding airlines picked up the mechanics from those that went under. Their dissappearence from the scene provided the opportunity for other airlines to expand. Over the long run those employees would have been better off had those failing airlines failed sooner rather than later.

Something that you fail to see is that no matter how low you go, Tulsa is still a money pit for the company, its a true "cost center" in that as a station, its revenues never exceed its expenses. Without the revenue generated at the high cost (for the employee) stations there would be no need for Tulsa. This agreement and this Union has left workers at the high cost areas with a feeling of hopelessness and resentment. With such poor morale service is bound to suffer. EAL, Pan Am, and Peoples Express were all obsessed with cutting labor costs. They were all successful at lowering labor costs, in the end it cost them business and they all went bust.

So lowering wages and giving away benifits are not always the best way to "keep" the work. The best way to do that is SCOPE. If you care to recall Local 562 urged members to reject the 2001 agreement because we lacked an effective SCOPE clause. In fact the pilots just got $25 million, plus jobs back "in house" because of their SCOPE clause, not their willingness to give more concessions.

Yes strength in numbers can work, but only if you have unity. An essential element to unity is morale. As Napoleon said "Morale trumps materiel 10 to 1." Or something like that. The point is that a determined unified force is more effective than a large divided force.