Thursday, 26 November 2009

Q3 Results & President's Letter To Shareholders


AeroMechanical Services Ltd. (TSX:V-AMA)
Basic Shares: 103.1 million
Fully Diluted: 117.6 million


******************************



According to President Richard Hayden, the tough markets here and around the world took a toll on AeroMechanical's (AMA) performance in Q3.

But along with fewer installations of AMA's blue box technology there were some notable achievements, not least of which was a dramatic cut in expenses and net losses.
The reduced expenses can be seen in this chart:



Please click on the chart to enlarge

Net loss was roughly one half for the first nine months of the year, compared to the same period last year; $3.3 million versus $6.6 million in 2008.

While cash revenues were down in Q3/09 compared to Q3/08, they were well up year over year due to very strong first and second quarters.

Q3 is typically a slow quarter for installations as carriers seldom take aircraft out of service for installations during that high-use quarter. Also of note was that during this quarter, AMA started the successful bid for the assets of Wingspeed, which will add more than 50 aircraft to AMA's install base in Q4.





Please click on this chart to enlarge
Mr. Hayden crafted a lengthy letter this quarter touching on topics like Meggitt and China that shareholders haven't heard about for some time.
He also put some interesting background in as to how the critically important "teaming" agreement with the world's largest producer of black boxes - L-3 Communications - came about.




To view Mr. Hayden's full letter, please click here.