[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
Sunny
Sunny
74°F
 
Calendar
Today in
S.C.V. History
July 22
2000 - Historic Larinan house in Pico Canyon burns down [story]


| 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
NASDAQ6387.7539  chart -0.04%
S&P 5002472.54  chart -0.04%
STOCKS OF LOCAL INTEREST
Bank Santa Clarita15.71  chart +0.00%
Biosolar Inc Com Usd0.0001(post0.0444  chart +8.29%
Sierra Bancorp23.81  chart -1.16%
Cu Bancorp (ca)36.95  chart -0.27%
Enable Ipc Corp. Com Stk Npv0.001  chart +0.00%
Flex Ltd. - Ordinary Shares16.74  chart -0.42%
N/aN/A  chartN/A
N/aN/A  chartN/A
Mannkind Corporation1.30  chart -4.41%
Mission Vly Bcp Ca14.00  chart +0.00%
Quest Diagnostics Incorporated109.39  chart -0.24%
Tejon Ranch Co20.97  chart -1.36%
Us Energy Initiative0.0004  chart +0.00%
Wesco Aircraft Holdings, Inc.11.00  chart +0.00%

Apple Inc.150.27  chart -0.05%
At&t Inc.36.51  chart -0.03%
Autonation, Inc.42.97  chart -0.02%
Best Buy Co., Inc.54.14  chart +0.33%
Big Lots, Inc.48.19  chart -0.19%
Barnes & Noble, Inc.7.15  chart -4.03%
Brady Corporation33.75  chart -1.03%
Boston Scientific Corporation27.62  chart -0.40%
N/a24  chart +0.00%
Cbre Group Inc Class A37.90  chart +0.03%
Carnival Corporation67.00  chart -0.86%
Comcast Corporation39.63  chart +0.35%
Costco Wholesale Corporation150.44  chart -0.36%
Curtiss-wright Corporation95.30  chart +0.45%
Cvs Health Corporation77.03  chart -0.17%
Cemex, S.a.b. De C.v. Sponsored10.18  chart +2.00%
D.r. Horton, Inc.36.61  chart +0.77%
Walt Disney Company (the)107.09  chart -0.25%
Edison International78.98  chart +0.68%
Hyatt Hotels Corporation Class 55.21  chart -0.32%
Home Depot, Inc. (the)146.65  chart -0.26%
Kb Home23.30  chart -0.26%
Kroger Company (the)23.26  chart +0.00%
Lennar Corporation Class A53.33  chart +0.13%
Laboratory Corporation Of Ameri156.55  chart +0.28%
N/aN/A  chartN/A
N/aN/A  chartN/A
Lowe's Companies, Inc.73.84  chart +1.76%
Marriott International102.85  chart +0.44%
Mcdonald's Corporation153.92  chart -0.19%
Mitsubishi Ufj Financial Group,6.34  chart -1.09%
Netflix, Inc.188.54  chart +2.69%
Office Depot, Inc.5.93  chart -2.63%
Rite Aid Corporation2.48  chart -2.36%
Rexford Industrial Realty, Inc.27.78  chart -0.50%
Regal Entertainment Group Class19.63  chart -1.06%
Ross Stores, Inc.54.31  chart -0.62%
Republic Services, Inc.64.90  chart +0.19%
N/aN/A  chartN/A
Starbucks Corporation57.98  chart -0.09%
Smart & Final Stores, Inc.7.90  chart -1.25%
Sears Holdings Corporation8.83  chart -8.02%
Six Flags Entertainment Corpora55.87  chart -0.73%
Sonova N154.90  chart -0.64%
Staples, Inc.10.09  chart -0.10%
Sunpower Corporation10.85  chart -1.63%
Target Corporation54.84  chart +0.48%
Time Warner Cable Inc209.56  chart -0.21%
Ulta Beauty, Inc.253.40  chart -0.91%
Walgreens Boots Alliance, Inc.78.90  chart -1.13%
Waste Connections, Inc.63.93  chart -0.25%
Whole Foods Market, Inc.41.71  chart -0.12%
Waste Management, Inc.75.37  chart +0.49%
Wal-mart Stores, Inc.76.15  chart +0.17%
Woodward, Inc.68.55  chart -1.25%
CURRENCY CONVERTER

Latest Additions to SCVNews.com
2000 - Historic Larinan house in Pico Canyon burns down [story]
Tonight on SCV NewsBreak, two children are still in critical condition after yesterday's rollover crash. Plus, deputies arrested an underage DUI suspect whose vehicle smashed into a traffic signal after a collision in Canyon Country. Watch these stories and more on tonight's edition of SCV NewsBreak.
SCV NewsBreak for Friday, July 21, 2017
A second child has died and two other children are in critical condition after a rollover crash on the 14 freeway near Acton Thursday morning killed an infant, CHP officials said.
Second Child Dies, 2 Still Critical after Acton Crash
World-renowned artist John Moffitt will headline the ARTree's Speaker Series with a talk at The MAIN on Main Street in Old Town Newhall on Thursday, July 27 starting at 7 p.m.
July 27: John Moffitt Headlines ARTree Speaker Series
Registration is now open for the ARTree Community Arts Center's fall children's art sampler class, which begins September 22 at the center in Newhall.
July 25: Fall ARTree Children’s Art Class Registration Opens
The 21st annual "Heart of the West" fundraiser for the non-profit Carousel Ranch horse therapy program for children will take place at the ranch on Saturday, August 26 starting at 6 p.m.
August 26: ‘Heart of the West’ to Benefit Carousel Ranch
The California State Transportation Agency and the Department of Transportation today announced the fast tracking of “fix it first” construction work and increased road repairs across the state.
State Transportation Leaders Expedite Millions in SB 1 Road Repairs
Registration has begun for the fall 2017 semester at College of the Canyons, which offers more than 1,900 class sections in a wide range of academic subjects and career education disciplines.
COC Fall 2017 Registration Under Way
Former Los Angeles County Sheriff Lee Baca has been denied bond pending the appeal of his conviction for obstructing a federal investigation into county jails.
Ex-L.A. County Sheriff Lee Baca Denied Bond Ahead of Conviction Appeal
The number of reported Valley Fever infections in Los Angeles County increased by 37 percent in 2016 compared to 2015, according to a news release from the county Department of Public Health.
Valley Fever Cases Up 37 Percent in L.A. County
A multi-vehicle collision in Canyon Country led deputies to arrest an underage DUI suspect who also crashed into a traffic signal around 5:30 a.m. Friday.
20-Year-Old Arrested on Suspicion of DUI After Canyon Country Crash
New York Times and USA Today best-selling author Mary Alice Monroe will guest at an author event at Barnes & Noble in Valencia on Monday, July 31, at 7 p.m.
July 31: Best-Selling Author Mary Alice Monroe at Barnes & Noble
Congressman Brad Sherman (D-San Fernando Valley) blasted SoCalGas for weak safety standards as the company resumes injections of natural gas into the Aliso Canyon Storage Facility adjacent to the Santa Clarita Valley.
Sherman Rips SoCalGas for Weak Safety Standards at Aliso Canyon
The Los Angeles Dodgers, who have the best record in major league baseball, had their 11-game winning streak snapped by the Atlanta Braves 6-3 at Dodger Stadium Thursday night in the first game of a 10-game homestand.
Red-Hot Dodgers Drop First Contest in 10-Game Homestand
World-traveled rock-R&B-funk band Teresa James & the Rhythm Tramps returns to headline the free Valencia Jazz & Blues concert on the street outside the Hyatt Regency Valencia tonight starting at 7 p.m.
July 21: Teresa James & Rhythm Tramps at Valencia Jazz & Blues
California voters would decide the future of legal sports betting in the Golden State under a constitutional amendment introduced Thursday by a state lawmaker.
California Lawmaker Backs Referendum on Legalizing Sports Betting
The Santa Clarita Valley Sheriff's Station is urging SCV residents to be on the lookout for a suspect wanted in connection with a felony hit and run collision in Lancaster on Tuesday.
Wanted: Suspect in Felony Hit & Run
Mylz Jones and Roberto Ramos each went deep for the JetHawks, but the Lake Elsinore Storm hit three homers of their own and took the series opener 8-4 on Thursday night at The Hangar.
Jones, Ramos Homer in 8-4 Loss to Storm Thursday
California state officials have cleared the way for resumption at reduced capacity in the next few weeks of natural gas pumping into the underground Aliso Canyon facility
Aliso Canyon Gas Field to Reopen, But Fight Still On
Three children and one adult from Los Angeles were airlifted from the 14 freeway in Acton Thursday morning after a fatal solo-vehicle rollover crash.
Infant Killed, Four Injured in Early-Morning Acton Crash
Air quality will be unhealthy for sensitive individuals in the Santa Clarita Valley on Friday, according to an AQMD alert.
Updated: SCV Air Quality Unhealthy Friday
2009 - Castaic resident Gidget, the Taco Bell commercial Chihuahua, dies at 15 after major stroke [story]
Tonight on SCV NewsBreak, a Los Angeles woman is one of four hurt in a fatal crash in Acton Thursday morning. Plus, several streets in the city will be impacted for road rehab through next Friday. Watch these stories and more on tonight's edition of SCV NewsBreak.
SCV NewsBreak for Thursday, July 20, 2017
The City of Santa Clarita is in need of volunteers for a pair of events taking place in August at the Aquatic Center, located at 20850 Centre Pointe Parkway. Space is still available for those wishing to assist at the Swim League Finals on August 5 and the LA84 Swim & Synchro Festival on August 12, 2017.
Volunteers Needed for Upcoming Aquatic Center Events
As Los Angeles County prepares for the procurement and manufacturing stage of its nationally-recognized Voting Systems Assessment Project (VSAP), Registrar-Recorder/County Clerk Dean Logan is focusing resources on election security.
County Prepares for Updated Voting System
Every summer, novice and veteran interpreters and interpreting students gather for one week to learn about professional development, and to participate in workshops that build their skills.
CSUN Student to Host Workshop for Interpreters
Residents in Santa Clarita can soon enroll in a number of specialized classes, recreational sports, youth programming and more for the fall season.
July 25: Start of Fall Seasons Online Registration
Castaic residents heard from county planners Wednesday at the Castaic Area Town Council meeting, with a focus on solutions for concerns about the Hillcrest Parkway landscape.
Castaic Residents Voice Concerns Over Hillcrest Parkway Maintenance
After being featured in the “KHTS Adopt a Pet” series last month, a then 10-week-old kitten named Faith has found her forever home. But before she can truly get her “happily ever after,” Faith needs surgery to correct a medical problem that is already causing damage to her eyes.
GoFundMe Page Started for Former ‘KHTS Adopt a Pet’ Kitten
From Aug. 5-9, this year's graduates from CalArts' Programs in Art, Art and Technology and Photography and Media present work in Clothing Optional at Night Gallery in Los Angeles, with an opening reception on Aug. 5.
Exhibit to Feature Works by Recent CalARTS’ Graduates
Join us at this month's breakfast for networking and an update by our State Senator Scott Wilk on the progress of water district consolidation and the impact his bill, SB 634, will have on the Santa Clarita Valley.
Aug. 9: Update on Water District Consolidation at Chamber Breakfast
California State University, Northridge and Southwestern Law School have joined forces to bring a clinic to the CSUN campus in fall 2017.
Legal Clinic For Undocumented Students Comes to CSUN This Fall
Sheriff’s Homicide detectives are investigating a dead body reported at Sierra Highway and Remsen street.
Possible Suicide in Newhall; Investigation Ongoing
Legislation was introduced Wednesday by Representative Steve Knight (CA-25) the Securely Expediting Clearances through Reporting Transparency (SECRET) Act, H.R. 3210, passed the House Committee on Oversight and Government Reform.
Knight Bill on Security Clearances Passes House Committee
A decades-old effort to restore water and salmon to California’s second largest river is on the chopping block under a proposal by House Republicans to speed up dam projects and increase diversions to farmers.
GROW Act Moves to Senate