[Sign Up Now] to Receive Our FREE Daily SCVTV-SCVNews Digest by E-Mail

SCVNews.com | Wesco Sales, Profits Sag | 02-08-2017
Inside
Weather
Santa Clarita CA
Partly cloudy
Partly cloudy
53°F
 
Calendar
Today in
S.C.V. History
March 23
1886 - Film director Robert N. Bradbury born in Washington state; launched John Wayne's career in Placerita Canyon [watch]


| Wednesday, Feb 8, 2017

Wesco Aircraft Holdings, Inc. (WAIR), the world’s leading provider of comprehensive supply chain management services to the global aerospace industry, today announced results for its fiscal 2017 first quarter ended December 31, 2016.

Fiscal 2017 First Quarter Highlights

Net sales of $339.4 million, down 5.7 percent
Constant-currency sales(1) of $353.0 million, down 1.9 percent
Net income of $13.1 million, or $0.13 per diluted share
Adjusted net income(1) of $18.5 million, or $0.19 per diluted share
Adjusted earnings before interest, taxes, depreciation and amortization(1) (EBITDA) of $34.3 million, or 10.1 percent of net sales
Dave Castagnola, president and chief executive officer, said, “We continue to book significant wins and renewals in fiscal 2017, building on the value proposition Wesco provides to major aerospace and defense customers. Sales wins with strategic customers in fiscal 2016 and the first quarter of fiscal 2017 totaled approximately $130 million on an annualized basis, approximately half of which is expected to be realized in fiscal 2017. We also have renewed long-term agreements with existing customers totaling $400 million on an annualized basis over the same period of time. New business strength continues to give us confidence in our outlook for constant-currency sales growth of three to five percent for the year.

“Our fiscal 2017 first-quarter results were negatively impacted by foreign currency translation, temporary disruptions to certain customers’ consumption patterns due to operational changes and extended site closures, and late production schedule revisions made by a major commercial OE customer. The challenges created by these events were partially offset by sales realized from recent new business wins.

“The slippage of some sales out of the quarter, along with higher planned selling, general and administrative expenses to support the significant ramp in new business, reduced net income and adjusted EBITDA margins(1) in the fiscal 2017 first quarter. As sales increase in the remainder of fiscal 2017, we expect to improve operating leverage and margins, supporting our earnings per share outlook for the year. We also increased our investment in inventory in the first quarter to support the substantial level of new business wins and to assure the excellent service levels our customers expect. We plan to continue this investment to support our growth, particularly in the first half of the year. We expect this investment to reduce cash provided by operating activities and free cash flow(1) in fiscal 2017 from our previous outlook.”

Fiscal 2017 First Quarter Results

Net sales in the fiscal 2017 first quarter were $339.4 million, compared with $359.8 million in the prior-year first quarter. Constant-currency sales(1) decreased 1.9 percent year-over-year in the first quarter of fiscal 2017.

Gross profit was $89.5 million in the first quarter of fiscal 2017, compared with $96.6 million in the fiscal 2016 first quarter. Gross margin was 26.4 percent in the fiscal 2017 first quarter, compared with 26.9 percent in the same period last year. The decrease in margin primarily reflects changes in mix.

Selling, general and administrative (SG&A) expenses in the fiscal 2017 first quarter increased 6.1 percent compared with the same period last year, primarily due to higher planned people-related and systems costs, which included approximately $2.0 million to support new business. SG&A expense as a percentage of net sales was 18.6 percent in the fiscal 2017 first quarter, compared with 16.5 percent in the same period last year.

Income from operations totaled $26.3 million, or 7.7 percent of net sales, in the fiscal 2017 first quarter. This compares with $37.1 million, or 10.3 percent of net sales, in the same period last year. The decline in operating margin was primarily due to the factors described above.

The company’s effective tax rate was 15.3 percent in the first quarter of fiscal 2017, compared with 28.9 percent in the year-ago quarter, primarily due to discrete tax items.

Net income was $13.1 million, or $0.13 per diluted share, in the fiscal 2017 first quarter, compared with $20.6 million, or $0.21 per diluted share, in the same period last year. Adjusted net income(1) was $18.5 million, or $0.19 per diluted share, compared with $24.2 million, or $0.25 per diluted share, in the same period last year.

Fiscal 2017 Outlook

Castagnola concluded, “We continue to expect constant-currency(2) sales to increase in the range of three percent to five percent in fiscal 2017, based primarily on new business wins which we have already signed. We expect sales to increase sequentially in each quarter of the fiscal year, subject to the timing of new business implementation. Higher sales, along with strategic sourcing initiatives and SG&A leverage, are expected to deliver adjusted net income in the range of $1.15 to $1.20 per diluted share.

“We now expect free cash flow conversion to be approximately 50 percent of net income, based on the increased level of inventory investments we are making to support these substantial new business wins and changes to the timing of receivable collections to reflect the re-phasing of new business implementations to later in fiscal 2017.”

About Wesco Aircraft

Wesco Aircraft is the world’s leading distributor and provider of comprehensive supply chain management services to the global aerospace industry, based on annual sales. The company’s services range from traditional distribution to the management of supplier relationships, quality assurance, kitting, just-in-time delivery and point-of-use inventory management. The company believes it offers one of the world’s broadest portfolios of aerospace products, including chemical, electrical and C-class hardware and comprised of more than 565,000 active SKUs.

To learn more about Wesco Aircraft, visit our website at www.wescoair.com. Follow Wesco Aircraft on LinkedIn at https://www.linkedin.com/company/wesco-aircraft-corp.

Comment On This Story
COMMENT POLICY: We welcome comments from individuals and businesses. All comments are moderated. Comments are subject to rejection if they are vulgar, combative, or in poor taste.
REAL NAMES ONLY: All posters must use their real individual or business name. This applies equally to Twitter account holders who use a nickname.

0 Comments

You can be the first one to leave a comment.

Leave a Comment


LOCAL BUSINESS LINKS
LOCAL BUSINESS HEADLINES
FINANCIALS OF LOCAL INTEREST
MARKETS & METALS
NASDAQ5821.64  chart +0.48%
S&P 5002348.45  chart +0.19%
STOCKS OF LOCAL INTEREST
Bank Santa Clarita13.23  chart +0.23%
Biosolar, Inc.0.0399  chart -4.09%
Sierra Bancorp25.58  chart +0.51%
Cu Bancorp (ca)37.85  chart +0.53%
Enable Ipc Corp0.00  chart +0.00%
Flex Ltd.16.61  chart +1.47%
Linn Energy Llc Unit Repstg Ltd0.096  chart +0.00%
Linn Co Llc Com Shs Repstg Ltd 0.0431  chart +0.00%
Mannkind Corporation2.02  chart -2.42%
Mission Vly Bcp Ca10.50  chart +0.00%
Quest Diagnostics Incorporated98.57  chart +0.14%
Tejon Ranch Co21.09  chart -3.08%
Us Energy Initiative0.0005  chart +0.00%
Wesco Aircraft Holdings, Inc.11.20  chart -2.61%

Apple Inc.141.42  chart +1.13%
At&t Inc.41.65  chart -1.02%
Autonation, Inc.42.39  chart -0.02%
Best Buy Co., Inc.45.02  chart +2.18%
Big Lots, Inc.48.26  chart +1.22%
Barnes & Noble, Inc.8.80  chart +0.00%
Brady Corporation38.35  chart +0.00%
Boston Scientific Corporation24.27  chart +0.54%
N/a24  chart +0.00%
Cbre Group Inc Class A34.88  chart -0.80%
Carnival Corporation58.29  chart +0.87%
Comcast Corporation37.04  chart -0.08%
Costco Wholesale Corporation167.68  chart +0.54%
Curtiss-wright Corporation92.01  chart -1.16%
Cvs Health Corporation78.46  chart -0.19%
Cemex, S.a.b. De C.v. Sponsored8.83  chart +0.23%
D.r. Horton, Inc.32.98  chart -0.54%
Walt Disney Company (the)112.08  chart +0.30%
Edison International79.86  chart +0.38%
Hyatt Hotels Corporation Class 52.65  chart +1.45%
Home Depot, Inc. (the)147.36  chart +0.51%
Kb Home19.11  chart -0.05%
Kroger Company (the)28.96  chart +0.10%
Lennar Corporation Class A50.71  chart -1.09%
Laboratory Corporation Of Ameri142.30  chart -0.12%
Linn Energy Llc Unit Repstg Ltd0.096  chart +0.00%
Linn Co Llc Com Shs Repstg Ltd 0.0431  chart +0.00%
Lowe's Companies, Inc.82.35  chart +0.52%
Marriott International92.14  chart +3.41%
Mcdonald's Corporation129.10  chart +0.45%
Mitsubishi Ufj Financial Group,6.38  chart -1.69%
Netflix, Inc.142.65  chart +0.16%
Office Depot, Inc.4.41  chart -1.56%
Rite Aid Corporation4.45  chart -0.67%
Rexford Industrial Realty, Inc.21.88  chart -0.55%
Regal Entertainment Group Class21.90  chart -0.95%
Ross Stores, Inc.66.35  chart +0.88%
Republic Services, Inc.62.75  chart +0.27%
N/aN/A  chartN/A
Starbucks Corporation55.89  chart +0.63%
Smart & Final Stores, Inc.11.55  chart +0.43%
Sears Holdings Corporation7.98  chart -12.31%
Six Flags Entertainment Corpora57.58  chart -0.31%
Sonova N135.60  chart +0.22%
Staples, Inc.8.51  chart -0.12%
Sunpower Corporation6.19  chart +0.00%
Target Corporation53.58  chart +0.36%
Time Warner Cable Inc209.56  chart -0.21%
Ulta Beauty, Inc.283.26  chart +0.70%
Walgreens Boots Alliance, Inc.83.03  chart -0.22%
Waste Connections, Inc.86.68  chart +0.30%
Whole Foods Market, Inc.29.92  chart +0.30%
Waste Management, Inc.72.65  chart +0.18%
Wal-mart Stores, Inc.70.25  chart +0.50%
Woodward, Inc.65.85  chart -1.60%
CURRENCY CONVERTER

Latest Additions to SCVNews.com
Many flowers are pollinated by insects, so there is nothing unusual there for the poppies, which are indeed fertilized by insects. What is more unusual is the kind of insects that play an important part in doing this job. It seems the actual pollinator is...
Poppy Surprises | Commentary by Evelyne Vandersande
1886 - Film director Robert N. Bradbury born in Washington state; launched John Wayne's career in Placerita Canyon [watch]
After a solid start to the year in closed escrow sales, low housing inventory, eroding affordability, and rising interest rates mildly pulled back pending sales on a year-over-year basis in February, the California Association of Realtors said Wednesday.
Calif. Realtors Report Weakest February in 3 Years
Tonight on SCV NewsBreak, the reward for information leading to the suspect involved in the hit-and-run death of a 15 year old girl has been increased. Plus, job seekers can head out to this upcoming Hiring Fest. Watch these stories and more on tonight's edition of SCV NewsBreak.
SCV NewsBreak for Wednesday, March 22, 2017
Rio Norte students Emily Yago and Khara Bigham are semi-finalists in the National Scripps Spellebrity Video Contest.
Help Send Rio Norte Students to National Scripps Spelling Bee
The Castaic Union School District is seeking four new members for it’s Measure QS Citizens Oversight Committee.
Castaic USD Seeking New Members for Oversight Committee
No. 10 College of the Canyons split a home doubleheader with Riverside City College on Saturday, winning the first game 14-9 and falling 6-4 in the second affair.
No. 10 Canyons Splits Home Doubleheader with Riverside City College
Children spend too much time in front of a screen and too little time exploring nature and having in fun the great outdoors. That imbalance can contribute to bullying, illness, depression and attention deficits.
April 3: CSUN Lecture to Explore ‘How to Raise a Wild Child’
Medical examiners identified the remains of a woman found dead near Golden Valley Road in early March as a 26 year old Tarzana resident.
Body Found Near Golden Valley in March ID’d
Annual tuition for resident undergraduate students will increase by $270 and will generate $77.5 million in net revenue for student success initiatives including Graduation Initiative 2025.
CSU Trustees Approve Tuition Increase
Despite Trump’s lies, tens of millions will lose insurance, huge premium spikes will hit older and middle-class Americans hard, and low-income children and the disabled will have their health care taken away.
Trumpcare Fails | Commentary by Bryan Caforio
See what's coming from the Santa Clarita Valley Chamber of Commerce.
Upcoming SCV Chamber of Commerce Events
Detectives from the Los Angeles County Sheriff’s Department’s Missing Persons Detail are seeking the public’s assistance in locating John Wayne Kolb, a 74 year-old male, American Indian who was last heard from on Tuesday, January 31, 2017, when he spoke with out of town family.
LASD Seeking Public Help in Locating Missing 74-Year-Old
America’s Job Center of California will offer a Hiring Fest from 9 to 11 a.m. on Friday, March 31, as the culminating event to a month of workshops and classes designed to assist people in achieving their career goals.
March 31: March into the Workforce at Job Center’s Hiring Fest
College of the Canyons took a 3-0 first inning lead vs. Glendale College but allowed the Vaqueros to battle back, falling 7-4 to set up a three-way tie atop the Western State Conference (WSC), East Division standings.
Canyons Lets Early Lead Slip Away in 7-4 Loss to Glendale
The College of the Canyons men's and women's track & field teams finished first in a combined nine events at the Antelope Valley College Invitational on Friday, as the Cougars continue to perform at a high level in all areas of competition.
Canyons Track & Field Combines to Win Nine Events at AVC Invitational
The 78th installment of the 2017 Whitney Biennial opened to the public at the Whitney Museum in New York on Friday. The 63 artists, with a number of CalArtians counted among them, explore themes of self and the individual's place in a turbulent society.
CalArtians Featured in 2017 Whitney Biennial in New York
Daniel Jose Ruiz (MFA 07) will be reading from his debut novel, Coconut Versus, on Thursday, March 23 at 7:30 pm at Skylight Books in Los Feliz.
Former CalArts Student to Read Novel at Skylight Books
CalArts faculty and choreographer Rosanna Gamson will presented her dance-theater production Still/Restless this past Saturday at El Camino College in Torrance, Calif.
CalArts Faculty Member Hosts Performance at El Camino
FA 12) has a powerful show at the California African American Museum. Titled The Evanesced, the show opened on March 2 and is on view until June 25.
CalArts Grad Hosts Show at CAAM
Los Angeles-based documentary filmmaker Roxanne Frias visits CalArts on Thursday, March 16 for a screening of "Latino: The Changing Face of America," followed by a Q&A. Frias’ film examines the growth of Latino population in the U.S., and its impact on America's political, social, economic and cultural future.
Filmmaker Hosts Screening, Discussion at CalArts
On a night when The Master's University men's basketball team dug a hole too deep to climb out of, a historical turnaround came to an end in a heartbreaking 77-75 loss to Texas Wesleyan at the NAIA Division I Men's National Tournament in Municipal Auditorium.
Mustangs Eliminated By Rams
The Master’s University women’s track & field team competed at the Ross & Sharon Irwin Invitational Saturday, hosted by Point Loma Nazarene University.
Lady Mustang Track & Field Stampedes Ross & Sharon Irwin Invitational
On Saturday, The Master’s University men’s track & field team posted a number of qualifying marks at the Ross & Sharon Irwin Invitational for the 66th Annual Men’s Outdoor Track & Field National Championships from May 25-27 at the Mickey Miller Blackwell Stadium in Gulf Shores, Alabama.
TMU Men’s Track & Field Turns Heads at Ross & Sharon Irwin Invitational
Max Maitland's two-run single in the last of the sixth inning drove in the tying and go-ahead runs as The Master's University salvaged a doubleheader split with Biola Saturday afternoon at Lou Herwaldt Stadium.
Salvaging A Split
The Master’s University golf team placed 10th out of 18 teams with a collective score of 889 (296-297-296) at the Battle at Primm on the greens of the Primm Valley Golf Course.
Mustang Golf Battles At Primm
The Master’s University baseball team fell to Simpson University 7-5 Tuesday afternoon at Lou Herwaldt Stadium.
Red Hawks Fly Past Mustangs
The Henry Mayo Newhall Foundation has donated $8,000 to the Karden’s Garden School Garden Curriculum at Charles Helmers Elementary School.
Henry Mayo Newhall Foundation Donates to Helmers Garden Curriculum
The Master's University students Michael Sciarra and Bianca Cubello were recognized for their lasting impact in their respective sports at the 2017 Cliff Hamlow Champions of Character Award Ceremony among 18 Golden Sate Athletic Conference Student-Athletes.
Two TMU Athletes Honored at Character Award Ceremony
College of the Canyons competed in the Southern Californian Invitational at El Camino Country Club in Oceanside on Monday, finishing ninth in a field of 19 schools from across the region.
Canyons Competes at Southern California Invitational in Oceanside
1875 - Construction begins on San Fernando Railroad Tunnel [story]
The reward for information leading to the arrest and conviction of the person responsible for the Canyon Country fatal hit-and-run of a 15 year old girl is now at $25,000.
Reward Increased for Information on Fatal Canyon Country Hit-and-Run
Tonight on SCV NewsBreak, an 11 year old boy was found after being missing for nearly six hours. Plus, the Chili Cook-Off is read to heat up SCV this Thursday. Watch these stories and more on tonight's edition SCV NewsBreak.
SCV NewsBreak for Tuesday, March 21, 2017
The County Interim Health Officer is issuing a Cold Weather Alert for the Los Angeles County Mountain areas from Wednesday, March 22 through Thursday, March 23, due to the National Weather Service’s forecast for low temperatures.
Cold Weather Alert for L.A. County Mountain Areas
Every hero should be recognized. The city of Santa Clarita’s Hometown Heroes Military Banner Program honors actively-serving military members from Santa Clarita Valley with streetlight pole banners.
May 5: Memorial Day Hometown Heroes Banner Order Forms Due
College of the Canyons adjunct instructors Christine Hirst and Thomas Gavin have been selected by the Search for Extraterrestrial Intelligence (SETI) Institute to join the 2017-18 NASA Airborne Astronomy Ambassadors (AAA) program, joining the group of 37 public high school physics and earth science teachers representing from seven California school districts.
COC Instructors Selected to Fly Aboard NASA Mission