Boston, MA 03/17/2014 (wallstreetpr) – In the past several hours, LMI Aerospace, Inc. (NASDAQ:LMIA) reported results for what it described as a “difficult year.” That meant that the company was not able to live up to its own and market expectations in 2013. The shares of the company are already falling out in the current sessions, but we need to pause and ask if the poor results which have been reported came about because of blunder or issues that were just out of control.
But we can only do this once we take a closer look at the results and probe what the management said about the results.
The results
The company announced net loss of $67.1 million, translating to $5.31 per share diluted for the quarter ended December 31. The numbers compared unfavorably with profit of $1 million or $0.08 per share in the corresponding quarter a year earlier.
The loss in the fourth quarter, the company said, was mainly due to many surprises that occurred in the course of the trading period. For example, the loss included $73.5 million goodwill impairment charge related to Valent Aerostructures. Yet another surprise was $17.6 million charge for valuation allowance related to income tax. As if that was not enough, the company went on to suffer $3.1 million charge related to restructuring activities.
To this end, it is clear that things caught the management off-guard and nothing planned was effectively attained. That is why although sales rose by impressive 34 percent to $96.4 million, it was difficult to offset the impairment charges. However, at this point, it is easy to see or even believe the management when it says that this year – devoid of such surprises – will see improvement in earnings.
As regards the full year performance, LMI Aerospace, Inc. (NASDAQ:LMIA) had net loss of $58.5 million or $4.64 per share diluted. That compared unfavorably with $16.5 million or $1.39 per share in the prior year. Sales in the year were up strongly by 48 percent to $412.6 million.
Is the management saying anything more?
LMI Aerospace, Inc. (NASDAQ:LMIA) lamented the results. In fact, the outgoing CEO Ronald S. Saks said that a promising year (2013) turned into a very difficult period for the company. However, with a new CEO expected in place as from Tuesday and previous guidance already revoked, the company hopes that lack of pressure will allow the incoming CEO to perform thorough review. And that should help the company to turn 2014 into a year of big gains, if not compensation for the tepid 2013.
