LMI AEROSPACE INC

No Longer Reporting

The company has not filed an annual or quarterly report since its Q1 FY2017 10-Q, filed May 10, 2017. Its latest SEC filing is a SC 13G/A from Feb 9, 2018.

The sections below describe the company as of the FY2016 annual report.

What Did They Do?

Manufactures aircraft structural assemblies, kits and components, and provides design and engineering services to aerospace and defense companies, including aircraft makers and aerospace suppliers.

How Did They Make Money?

Customers buy components and assemblies through purchase orders under long-term supply contracts or separately negotiated orders. The company is generally paid when title passes for products and related services are rendered; some contract work is billed as it is performed.

FY2016 revenue

Who Were Their Customers?

Aircraft makers and aerospace suppliers are the main customers, with airline operators also buying engineering services. The company works directly with customers through its sales and program teams.

Direct customers above 10% of revenue, FY2016

of revenue from three customers (38%, 12%, 11%)

FY2015: 61% from three customers

Did Revenues Turn Into Profits?

Not on paper. It lost $35.1M in FY2016, but brought in more cash than it spent: $2.7M of free cash flow.

Operating income, FY2016

−4% of revenue

▼ Now a loss vs FY2015 ($20.8M, 6%)

Net income, FY2016

−10% of revenue

▲ +1467% (Loss) vs FY2015 (−$2.2M, −1%)

Free cash flow, FY2016

1% of revenue

▼ −83% vs FY2015 ($15.8M, 4%)

How Were They Changing?

Since the FY2016 annual report

Latest quarter: Q1 FY2017, the three months to Mar 31, 2017

Revenue: ▼ −4%; vs $87.3M in Q1 FY2016
Net income: ▲ +268% (Loss); vs −$1.8M in Q1 FY2016

Jun 27, 2017 Sonaca completed its acquisition of LMI Aerospace LMI became a wholly owned Sonaca subsidiary; its shares were converted to cash and delisted from Nasdaq.

Grew. Revenue grew 24% in 4 years, from $278.6M in FY2012 to $346.2M in FY2016, about 6% a year.

Expanded capabilities The earlier report describes Valent as adding high-speed machining, complex assemblies, processing and major program management to Aerostructures. The latest report emphasizes integrated assembly and complex precision machining capabilities for larger assembly and design-build projects.

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