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

Santa Clarita CA
Partly sunny
Partly sunny
Today in
S.C.V. History
August 20
1967 - New Town of Valencia dedicated; homes sell for $25,000 [story]

wesco_logoValencia-based Wesco Aircraft Holdings Inc., a leading provider of comprehensive supply chain management services to the global aerospace industry, today announced results for its fiscal first quarter ended December 31, 2013.



* Revenue of $224.7 million, up 6.4% compared to $211.2 million in the prior year

* Net Income of $24.4 million, with Diluted Earnings Per Share (“EPS”) of $0.25 compared to $18.4 million and $0.19 in the prior year

* Adjusted Net Income of $25.9 million, with Adjusted Diluted EPS of $0.27 compared to $24.1 million and $0.25 in the prior year

* Reiterating full year 2014 guidance for sales of $975 million to $1.01 billion, Diluted EPS of $1.25 to $1.31, and Adjusted Diluted EPS of $1.31 to $1.37


Fiscal 2014 First Quarter Results

Revenue for the first fiscal quarter was $224.7 million, an increase of 6.4% compared to $211.2 million in the prior year period. The increase in the North America segment was 4.7% over the prior year period. Wesco again demonstrated strong international growth during the quarter with revenues in the Rest of World segment increasing by 19.6% compared to the prior year period. In the first quarter, Ad Hoc, JIT and LTA sales as a percentage of net sales represented 39%, 31% and 30%, respectively, compared to 40%, 26% and 34%, respectively, for the same period last year.

Net income for the first quarter was $24.4 million, resulting in Diluted EPS of $0.25 as compared to $18.4 million or $0.19 per share in the prior year period. Adjusted Net Income was $25.9 million resulting in Adjusted EPS of $0.27 in the first quarter of 2014 as compared to $24.1 million or $0.25 per share in the prior year period. Results for the first quarter of 2014 were impacted by one fewer business day compared to last year, as well as prolonged holiday shutdowns and vacations at a number of our top customers.

Wesco Aircraft’s Chairman, President and Chief Executive Officer, Randy Snyder said, “Our first quarter results were solid despite the timing of the holidays. We are experiencing high levels of activity in orders, additions to our current contracts, and contract renewals with existing customers. These results give us confidence in our full year guidance for sales and earnings growth. In addition, our recently announced acquisition of Haas adds to our optimism for the rest of the year and beyond. None of this would be achievable without our strong customer relationships, the support of our suppliers and the dedicated efforts of the best employees in the business.”

Financial Outlook

Based on our performance during the first quarter, Wesco reiterates its guidance for 2014 and expects full year revenues to be between $975 million and $1.01 billion, representing a growth rate of approximately 8.1% to 12.0% over 2013 results. Diluted EPS and Adjusted Diluted EPS are expected to be in the range of $1.25 to $1.31, and $1.31 to $1.37, respectively. This guidance does not include the expected contribution from the acquisition of Haas Group Inc.; Wesco plans to update its full year guidance after the transaction closes.

Conference Call Information

Wesco Aircraft will hold a conference call to discuss its first quarter results at 5:00 p.m. Eastern Time this afternoon. A live webcast of the call and accompanying slides may be accessed over the Internet from the Company’s Investor Relations website at ir.wescoair.com. The conference call is also available by dialing 888-771-4371 (domestic) or 847-585-4405 (international) and entering passcode 36550110.

A replay of the live conference call will be available approximately one hour after the call. The replay will be available on the Company’s website or by dialing 888-843-7419 (domestic) or 630-652-3042 (international) and entering the replay passcode 36550110. The replay will be available on the Company’s website for one year and by telephonic replay until 11:59 pm Pacific Time, February 12, 2014.

About Wesco Aircraft

Wesco Aircraft is one of the world’s largest distributors and providers of comprehensive supply chain management services to the global aerospace industry. 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 the world’s broadest inventory of aerospace parts, comprised of more than 525,000 different stock keeping units, including hardware, bearings, tools, electronic components and machined parts. Wesco Aircraft has more than 1,300 employees across 43 locations in 13 countries.

To learn more about Wesco Aircraft, visit our website at www.wescoair.com.

Non-GAAP Financial Information

“Adjusted Net Income” represents Net Income before: (i) amortization of intangible assets, (ii) amortization or write-off of deferred financing costs and original issue discount, (iii) unusual or non-recurring items and (iv) the tax effect of items (i) through (iii) above calculated using an assumed effective tax rate.

“Adjusted Basic EPS” represents Basic EPS calculated using Adjusted Net Income as opposed to Net Income.

“Adjusted Diluted EPS” represents Diluted EPS calculated using Adjusted Net Income as opposed to Net Income.

“Adjusted EBITDA” represents Net Income before: (i) income tax provision, (ii) net interest expense, (iii) Carlyle Acquisition related non-cash stock-based compensation expense, (iv) depreciation and amortization, and (v) unusual or non-recurring items.

Wesco Aircraft utilizes and discusses Adjusted Net Income, Adjusted Basic EPS, Adjusted Diluted EPS and Adjusted EBITDA, which are non-GAAP measures our management uses to evaluate our business, because we believe they assist investors and analysts in comparing our performance across reporting periods on a consistent basis by excluding items that we do not believe are indicative of our core operating performance. We believe these metrics are used in the financial community, and we present these metrics to enhance investors’ understanding of our operating performance. You should not consider Adjusted EBITDA and Adjusted Net Income as an alternative to Net Income, determined in accordance with GAAP, as an indicator of operating performance. Adjusted Net Income, Adjusted Basic EPS, Adjusted Diluted EPS and Adjusted EBITDA are not measurements of financial performance under GAAP, and these metrics may not be comparable to similarly titled measures of other companies. See below for a reconciliation of Adjusted Net Income, Adjusted Basic EPS, Adjusted Diluted EPS and Adjusted EBITDA to the most directly comparable financial measures calculated and presented in accordance with GAAP.

Forward Looking Statements

This communication contains forward-looking statements (including within the meaning of the Private Securities Litigation Reform Act of 1995) concerning Wesco, Haas, the proposed acquisition and other matters. These statements may discuss goals, intentions and expectations as to future plans, trends, events, results of operations or financial condition, or otherwise, based on current beliefs of the management of Wesco and Haas, as well as assumptions made by, and information currently available to, such management. Forward-looking statements may be accompanied by words such as “aim,” “anticipate,” “believe,” “plan,” “could,” “would,” “should,” “estimate,” “expect,” “forecast,” “future,” “guidance,” “intend,” “may,” “will,” “possible,” “potential,” “predict,” “project” or similar words, phrases or expressions. These forward-looking statements are subject to various risks and uncertainties, many of which are outside the parties’ control. Therefore, you should not place undue reliance on such statements.

Factors that could cause actual results to differ materially from those in the forward-looking statements include: failure to obtain applicable regulatory approvals in a timely manner or otherwise; failure to satisfy other closing conditions to the proposed acquisition; risks that the businesses will not be integrated successfully or that the combined companies will not realize estimated cost savings, synergies and growth or that such benefits may take longer to realize than expected; failure to realize anticipated benefits of the combined operations; risks relating to unanticipated costs of integration; changes in legislation or governmental regulations affecting the companies; international, national or local economic, social or political conditions that could adversely affect the companies or their customers; conditions in the credit markets; risks associated with assumptions the parties make in connection with the parties’ critical accounting estimates and legal proceedings; the condition of the aerospace industry; reductions in military spending; business risks as a result of supplying equipment and services to the U.S. Government; risks associated with the Company’s long-term, fixed-price agreements, which have no guarantee of future sales volume; risks associated with the loss of a significant customer; the Company’s failure to compete successfully in its highly competitive global industry; risks associated with the Company’s rapid expansion; supply-chain risk; the Company’s dependence on complex information technology; and the Company’s dependence on key personnel.

The foregoing list of factors is not exhaustive. You should carefully consider the foregoing factors and the other risks and uncertainties that affect the parties’ businesses, including those described in Wesco’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and other documents filed from time to time with the Securities and Exchange Commission. All forward-looking statements included in this communication (including information included or incorporated by reference herein) are based upon information available to Wesco as of the date hereof, and Wesco undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.


Exhibit 1: Consolidated Statements of Income (Unaudited)
Exhibit 2: Condensed Consolidated Balance Sheets (Unaudited)
Exhibit 3: Condensed Consolidated Statements of Cash Flows (Unaudited)
Exhibit 4: Non-GAAP Financial Information (Unaudited)
Exhibit 1
Wesco Aircraft Holdings, Inc.
Consolidated Statements of Income (UNAUDITED)
(In thousands, except for per share data)
Three Months Ended

December 31,

December 31,
Net sales $224,722 $211,170
Cost of sales 146,664 137,070
Gross profit 78,058 74,100
Selling, general and administrative expenses 37,445 34,725
Income from operations 40,613 39,375
Interest expense, net (4,222 ) (11,377 )
Other expense, net 754 (155 )
Income before provision for income taxes 37,145 27,843
Provision for income taxes (12,775 ) (9,417 )
Net income $24,370 $18,426
Net income per share:
Basic $0.26 $0.20
Diluted $0.25 $0.19
Weighted average shares outstanding:
Basic 94,869 92,514
Diluted 96,963 95,179
Exhibit 2
Wesco Aircraft Holdings, Inc.
Condensed Consolidated Balance Sheets (UNAUDITED)
(In thousands)

December 31,

September 30,
Cash and cash equivalents $55,549 $78,716
Accounts receivable, net 158,940 155,944
Inventories, net 671,654 630,264
Other current assets 27,287 28,314
Deferred income taxes 39,307 39,671
Total current assets 952,737 932,909
Long-term assets 697,232 698,243
Total assets $1,649,969 $1,631,152
Liabilities and Stockholders’ Equity
Accounts payable $93,994 $98,934
Other current liabilities 12,189 21,047
Income taxes payable 3,485 2,953
Long-term debt—current portion 5,500
Capital lease obligations—current portion 1,249 1,184
Total current liabilities 116,417 124,118
Long-term debt 562,500 568,000
Capital lease obligations 1,393 1,414
Deferred income taxes 74,180 72,184
Total Long-term liabilities 638,073 641,598
Total liabilities 754,490 765,716
Total stockholders’ equity 895,479 865,436
Total liabilities and stockholders’ equity $1,649,969 $1,631,152
Exhibit 3
Wesco Aircraft Holdings, Inc.
Condensed Consolidated Statements of Cash Flows (UNAUDITED)
(In thousands)
Three Months Ended
December 31,
December 31,
Cash flows from operating activities
Net income $24,370 $18,426
Adjustments to reconcile net income to net cash provided by operating activities
Amortization of intangible assets 1,651 1,663
Depreciation 1,400 1,253
Amortization of deferred financing costs 524 5,664
Bad debt and sales return reserve (19 ) (18 )
Non-cash foreign currency exchange (1,555 ) 230
Non-cash stock-based compensation 1,528 987
Excess tax benefit related to stock options exercised (2,550 ) (741 )
Deferred income tax provision 2,367 2,677
Changes in assets and liabilities
Accounts receivable (2,267 ) (1,343 )
Income taxes receivable 6,924 3,891
Inventories (40,788 ) (16,034 )
Prepaid expenses and other assets (3,221 ) (2,885 )
Accounts payable (5,924 ) (5,460 )
Accrued expenses and other liabilities (8,949 ) (5,017 )
Income taxes payable 458 788
Net cash provided by (used in) operating activities (26,051 ) 4,081
Cash flows from investing activities
Purchases of property and equipment (1,853 ) (597 )
Net cash used in investing activities (1,853 ) (597 )
Cash flows from financing activities
Proceeds from issuance of long-term debt 625,000
Repayments of long-term debt (636,000 )
Financing fees (7,274 )
Repayment of capital lease obligations (273 ) (341 )
Excess tax benefit related to stock options exercised 2,550 741
Proceeds from exercise of stock options 2,173 1,787
Purchase of Treasury Stock (8,452 )
Net cash provided by (used in) financing activities 4,450 (24,539 )
Effect of foreign currency exchange rates on cash and cash equivalents 287 (67 )
Net increase in cash and cash equivalents (23,167 ) (21,122 )
Cash and cash equivalents, beginning of period 78,716 60,856
Cash and cash equivalents, end of period $55,549 $39,734
Exhibit 4
Wesco Aircraft Holdings, Inc.
Non-GAAP Financial Information (UNAUDITED)
(In thousands, except for per share data)
Three Months Ended

December 31,

December 31,
Net income $24,370 $18,426
Provision for income taxes 12,775 9,417
Interest and other, net 4,222 11,377
Depreciation and amortization 3,051 2,916
EBITDA 44,418 42,136
Unusual or non-recurring items 113 1,454
Adjusted EBITDA $44,531 $43,590
Adjusted Net Income
Net income $24,370 $18,426
Amortization of intangible assets 1,651 1,663
Amortization of deferred financing costs 524 5,664
Unusual or non-recurring items 113 1,454
Adjustments for tax effect (760 ) (3,082 )
Adjusted Net Income $25,897 $24,125
Adjusted Basic Earnings Per Share
Weighted-average number of basic shares outstanding 94,869 92,514
Adjusted Net Income Per Basic Shares $0.27 $0.26
Adjusted Diluted Earnings Per Share
Weighted-average number of diluted shares outstanding 96,963 95,179
Adjusted Net Income Per Diluted Shares $0.27 $0.25
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.


  1. Laura Conant Laura Conant says:

    Marlenen Padron Quintanilla Roxanne Cruz-Weeks

  2. Steven Adams Steven Adams says:

    Do they need any manufacturing engineers?

Leave a Comment

Latest Additions to SCVNews.com
As Princess Cruises fleet expansion continues, the premium international cruise line reveals the name of the ship it will launch in 2020 – Enchanted Princess.
Princess Cruises Reveals Name of Fifth Royal-Class Ship
The College of the Canyons football program will kick off the 2018 season on the road at 6 p.m. Saturday, Sept. 1 vs. Saddleback College, in the first of 10 regular season games slated for the 2018 campaign.
Sept. 1: COC Cougars Kick Off 2018 Football Season
The next Santa Clarita Community College District’s Board of Trustees meeting is set for Wednesday, Aug. 22, starting at 4 p.m.
Aug. 22: COC Board of Trustees Business Meeting
Realtors helped close escrow during July on 215 single-family home sales and 90 condominiums throughout the Santa Clarita Valley, the Southland Regional Association of Realtors reported Friday.
SCV Home, Condo Sales Softened in July, Resale Prices Climbed Higher
Bridge to Home is expanding its services to homeless people in the Santa Clarita Valley with increased funding from Measure H, and its new offices are getting a makeover donated by a local painting company.
Bridge to Home Expands, Gets Makeover from SCV Painting Company
Patricia Giggans has been elected chairperson and Priscilla Ocen has been approved as the vice chair of the Los Angeles County Sheriff Civilian Oversight Commission, which works to boost transparency and increase trust between communities and the Sheriff’s Department.
LASD Civilian Oversight Panel Elects New Leadership
The city of Santa Clarita's Planning Commission will hold its next regular meeting on Tuesday, Aug. 21, starting at 6 p.m.
Aug. 21: Santa Clarita Planning Commission Regular Meeting
Ty Culbreth delivered one of his season’s best performances, but the bullpen failed to protect a one-run lead in the eighth as the San Jose Giants rallied to beat the JetHawks, 4-1, on Sunday at Municipal Stadium.
JetHawks Bullpen Falters in Late Loss to Giants Sunday
The Santa Clarita Valley Sheriff's Station has released its crime information and public safety report for Castaic-Val Verde (Zone 2) for the week of Aug. 6-12, 2018.
Crime Blotter: Grand Theft, Burglary, Petty Theft in Castaic-Val Verde
California State University, Northridge will mark its 60th anniversary by inviting alumni from across the decades to take part in a Grand Reunion celebration at the campus Oct. 14-16.
CSUN to Celebrate Its 60th Anniversary with a Grand Reunion
Air quality will be unhealthy for sensitive people in the Santa Clarita Valley on Tuesday, according to an advisory from the South Coast Air Quality Management District.
SCV Air Quality Unhealthy for Sensitive People Tuesday
State tax revenue on cannabis sales jumped from $60.9 million in the first quarter of 2018 to $74.2 million in the second quarter, the California Department of Tax and Fee Administration reported Monday.
Cannabis Tax Revenue Hits New High in 2nd Quarter 2018
The city of Santa Clarita is seeking community feedback by noon Friday, Aug. 31 on a public safety grant proposal for the U.S. Department of Justice’s Edward Byrne Memorial Justice Assistance Grant Program.
City Seeks Community Feedback on Proposed JAG Grant Application
The city of Santa Clarita has updated the list of film and television productions shooting in the city and the Santa Clarita Valley the week of Aug. 20-26, 2018.
‘Santa Clarita Diet,’ ‘Killer Therapy,’ ‘Dead Wrong’ Now Shooting in SCV
The Santa Clarita Valley Chamber of Commerce has published and will distribute 10,000 copies of its 2018-2019 SCV Business & Community Guide this week.
SCV Chamber Publishes New Business, Community Guide
The California Transportation Commission has approved funding for more than 100 transportation projects funded entirely or at least partly by $690 million from SB 1, the Road Repair and Accountability Act of 2017, including rehab of the southbound Highway 14 offramp to Sierra Highway.
State SB1 Funds to Help Rehab Highway 14 Sierra Highway Offramp
Detectives from the Los Angeles County Sheriff’s Department Missing Persons Unit were seeking the public’s assistance in locating Jennifer “Jenny” Sison Mariano Monday, and she has been found and is "doing OK" according to a relative.
Missing Stevenson Ranch Woman Found, ‘Doing OK’
A federal judge in Los Angeles approved a settlement Friday requiring the Trump administration to prepare and implement plans to protect eight “wild and scenic” rivers in Southern California, including Piru Creek west of Santa Clarita.
Feds Settle to Protect Piru Creek, 7 More California Rivers
Henry Mayo Newhall Hospital in Valencia is proud to support National Breast Feeding Awareness Month during August and announces its designation as a breast milk drop-off location.
Henry Mayo Newhall Hospital Supports Breast Feeding Awareness Month
The Santa Clarita Valley Sheriff's Station has released its crime information and public safety report for Saugus (Zone 4) for the week of July 30-Aug. 5, 2018.
Crime Blotter: Grand Theft, Fire in Saugus
The California Department of Motor Vehicles has redesigned portions of the website for easier access to the most frequently used online services.
DMV Launches Updated Website with Improved Online Services
The Lancaster JetHawks dropped the middle game of their three-game series in San Jose, 6-2, to the Giants to on Saturday night at Municipal Stadium.
Series Even After JetHawks Fall to Giants Saturday
A federal judge has approved a joint plan by the Justice Department and American Civil Liberties Union to reunify parents who were deported without their kids under the “zero-tolerance” immigration policy, though whether they will be allowed to return to the United States to seek asylum remains in limbo.
Judge OK’s DOJ-ACLU Plan to Reunite Kids, Deported Parents
Brian Serven delivered three hits, including a triple that led to the game-tying run and an extra-innings home run, to lead the JetHawks to a 9-6 win over the San Jose Giants in 10 innings on Friday night at Municipal Stadium.
JetHawks Come Back in 9th, Win in Extras Friday
1967 - New Town of Valencia dedicated; homes sell for $25,000 [story]
Search teams found the body of a man Saturday evening in a remote Santa Barbara County canyon near the Hot Springs Trailhead, where a vehicle belonging to a missing Los Angeles County Fire Department captain from Newhall was found Friday afternoon.
Body Found in Santa Barbara Near Missing Fire Captain’s Car
1879 - Newhall civic leader Charles Henry Kingsburry born in Missouri [story]
1946 - Pioneering Placerita Canyon movie producer Trem Carr dies in San Diego [story]
The JetHawks got some much-needed offense to beat Stockton, 9-7, Thursday night at The Hangar to end a five-game losing streak.
Offense Comes Through, JetHawks End 5-Game Skid
The Canyon Country Community Center’s next Sock Hop is scheduled for Saturday, Aug. 25, beginning at 7 p.m.
Aug. 25: Sock Hop at Canyon Country Community Center
Results of the first full year of Measure H funding are in, demonstrating widespread progress as services ramped up and thousands of individuals and families were housed temporarily or permanently, Los Angeles County officials said Friday.
Measure H First Year: Housing for 7,500, Help for Thousands More
The fire that destroyed the historic Big Oaks Lodge on Bouquet Canyon Road in Saugus Aug. 11-12 was an accident, Sgt. John Hanson of the Los Angeles County Sheriff's Department's Arson & Explosives squad said Friday morning.
Big Oaks Lodge Fire an Accident, Arson Investigators Say
Lawmakers advanced a controversial bill Thursday that aims to reform California’s money bail system though recent amendments have alarmed advocates who say the current bill could authorize prosecutors and judges to promote indefinite pretrial detention.
State Lawmakers Advance Bail Overhaul, Police Transparency Bills
Nightly lane closures are scheduled to start Monday on Sierra Highway near Highway 14 as crews begin a paving project in and near the city of Santa Clarita, the California Department of Transportation announced Friday.
Caltrans to Repave 19 Miles of Sierra Highway in SCV
The Western Association of Schools and Colleges' Senior College and University Commission has placed The Master's University & Seminary on probation after a visiting WSCUC team in March found TMUS out of compliance with numerous accreditation standards.
‘Climate of Fear,’ Admin Issues Lead to Probation for The Master’s University
Reversing a trial court and an appellate panel, the California Supreme Court ruled Thursday that asylum-seeking children with one parent living in the United States need only notify the foreign parent of their plans to seek resident status in the U.S.
California Justices Lift Custody Hurdle for Asylum-Seeking Kids