First Aviation Reports Profitable First Quarter 2013

WESTPORT, Conn., May 28, 2013 /PRNewswire/ -- First Aviation Services Inc. today reported the results for continued operations for the quarter ended March 31, 2013 and year ended December 31, 2012 as restated for the previously announced sale of the majority interest in Aerospace Products International, Inc. (API) which closed March 18, 2013.

Sales from continuing operations for the first quarter increased 18% to $6.1 million compared with $5.2 million in the prior year.  Operating income from continuing operations was a profit of $509 thousand after adjusting for certain allocations from API to continuing operations.

As part of the sales transaction, First Aviation's total debt was reduced from $25.2 million to $6.8 million and all obligations relating to a third party guarantee of the term loan were extinguished.  The Company issued an additional $1.1 million of subdebt, included above, on terms consistent with an offering in June 2012.

Aaron Hollander, Chairman and CEO, said, "The sale of a majority interest in API will allow First Aviation to focus on its core Maintenance, Repair and Overhaul businesses.  We have a significantly improved balance sheet that will permit us to pursue both organic growth and acquisitions.  We have invested in both Piedmont Propulsions Systems LLC and Aerospace Turbine Rotables, Inc. during 2012 expanding the quality of our facilities and engineering development that will position us well for future growth."

First Aviation Services Inc. (FAvS), located in Westport, Connecticut, is a leading provider of repair and overhaul, rotables management and related engineering services to the aviation industry worldwide. FAvS' principal operating subsidiaries are Aerospace Turbine Rotables, Inc. (AeTR) in Wichita, Kansas, and Piedmont Propulsion Systems, LLC (PPS) in Winston-Salem, North Carolina. FAvS also owns a minority interest in Aerospace Products International Inc., based in Memphis, Tennessee.  More information about FAvS and its subsidiaries may be found on the company's website, www.firstaviation.com.  Please see our forward looking statements at www.firstaviation.com/forward.

SOURCE First Aviation Services Inc.