Wesco Aircraft Holdings Reports Results for Fiscal Third Quarter 2013

VALENCIA, Calif.—(BUSINESS WIRE)—Wesco Aircraft Holdings, Inc. (“Wesco Aircraft” or the “Company”) (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, 2013.

Highlights

Record revenue for the quarter of $230.2 million, up 21.6% compared to the prior year, including organic growth of 14%
Net Income of $27.0 million, with Diluted Earnings Per Share (“EPS”) of $0.28
Adjusted Net Income of $29.5 million, up 30.6% compared to the prior year, with Adjusted Diluted EPS of $0.31
Full year 2013 guidance unchanged for revenue of $880.0 million to $900.0 million and Adjusted Diluted EPS of $1.17 to $1.21, with revenue now expected to be at the higher end of the range
Fiscal 2013 Third Quarter Results

Revenue for the third fiscal quarter was $230.2 million, an increase of 21.6% compared to $189.3 million in the prior year period. Organic growth was approximately 14% as compared to the prior year period. The increase in the North America segment’s external sales was 20.1%, which was mainly driven by growth across the Company’s customer base. Wesco Aircraft continues to demonstrate strong international growth with external sales in the Rest of World segment increasing by 27.3% this quarter when compared to the prior year period. In the third quarter, Ad hoc, JIT and LTA sales as a percentage of net sales represented 40%, 27% and 33%, respectively, compared to 39%, 24% and 37%, respectively, for the same period last year.

Net Income for the third quarter was $27.0 million, resulting in Diluted EPS of $0.28. This compares to $22.3 million or $0.23 in Diluted EPS in the prior year period. Adjusted Net Income was $29.5 million and Adjusted Diluted EPS was $0.31 in the third quarter of 2013 as compared to $22.6 million or $0.24 per share in the prior year period. The increases in Diluted EPS and Adjusted Diluted EPS were primarily the result of higher sales partially offset by selling, general and administrative expenses. Adjusted EBITDA for the period was $49.7 million as compared to $41.1 million for the same period in 2012.

Wesco Aircraft’s Chairman, President and Chief Executive Officer Randy Snyder said, “We are very happy with our results this quarter. We continue to see robust activity, with new and existing customers in all of the regions we serve. We are growing our business and expanding our market share. We had a number of significant contract awards during the quarter and are working on many new opportunities. Our focus remains on providing the highest quality service and in delivering additional value to our customers. Looking forward, we remain optimistic for the remainder of the year and are very excited about 2014.”

First Nine Months of Fiscal 2013

Revenue for the first nine months of fiscal 2013 was $667.3 million, an increase of 18.3% compared to $564.0 million in the prior year period. On a fiscal year-to-date basis, Ad hoc, JIT and LTA sales as a percentage of net sales represented 40%, 26% and 34%, respectively, compared to 38%, 26%, and 36%, respectively, for the first nine months of fiscal 2012.

Net Income for the period was $74.8 million and Adjusted Net Income was $84.8 million. Net Income resulted in Diluted EPS of $0.78 and Adjusted Net Income resulted in Adjusted Diluted EPS of $0.89. This compared to Net Income of $65.2 million or Diluted EPS of $0.68 and Adjusted Net Income of $67.7 million and Adjusted Diluted EPS of $0.71 in the prior year period. Adjusted EBITDA on a fiscal year-to-date basis was $144.9 million as compared to $126.9 million in 2012.

Financial Outlook

Wesco Aircraft confirms its fiscal year 2013 guidance as revised after its fiscal second quarter of 2013, with revenue at the higher end of the range of $880.0 million to $900.0 million and Adjusted Diluted EPS in the range of $1.17 to $1.21.