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Air Industries Group, Inc.(AIRI) a prominent aerospace and defense company, has released its consolidated financial statements for the year ended December 31, 2022. The report reveals a net loss of $1.08 million for the year, representing a significant decline compared to the net income of $1.63 million in 2021. Additionally, the company's revenue decreased to $53.24 million in 2022, down from $58.94 million in the previous year. Let's take a closer look at the company's financial performance and key highlights.
Current Assets:
The consolidated balance sheet shows that Air Industries Group's current assets as of December 31, 2022, amounted to $42.22 million. Cash reserves stood at $281,000, reflecting a decrease from $627,000 in 2021. Accounts receivable, after accounting for an allowance for doubtful accounts, amounted to $9.48 million. Inventory saw an increase, reaching $31.82 million, while prepaid expenses and other current assets totaled $307,000.
Property and Equipment:
The company's property and equipment, net of accumulated depreciation, were valued at $8.59 million as of December 31, 2022, compared to $8.40 million in the previous year.
Liabilities and Stockholders' Equity:
Air Industries Group's current liabilities amounted to $23.62 million as of December 31, 2022. This includes debt of $14.48 million, accounts payable and accrued expenses of $7.54 million, and operating lease liabilities of $778,000. The company reported long-term liabilities totaling $13.35 million, including debt net of the current portion, subordinated notes payable, and operating lease liabilities.
The stockholders' equity for the company stood at $16.84 million, reflecting a decrease from $17.39 million in 2021. This comprises common stock with a par value of $3,000, additional paid-in capital of $82.45 million, and an accumulated deficit of $65.61 million.
Consolidated Statements of Operations:
Air Industries Group reported net sales of $53.24 million for the year ended December 31, 2022, down from $58.94 million in the previous year. Cost of sales amounted to $45.79 million, resulting in a gross profit of $7.45 million.
The company's operating expenses for the year reached $7.65 million. After accounting for interest and financing costs, including related party expenses, and considering other income and gain on write-off of accounts payable, the company reported a loss from operations of $194,000. The loss before provision for income taxes amounted to $1.08 million, with no provision for income taxes recorded.
Consequently, Air Industries Group reported a net loss of $1.08 million for the year, resulting in a loss per share of $0.33 (basic and diluted). The weighted average shares outstanding for both basic and diluted calculations were approximately 3.23 million.
Consolidated Statements of Cash Flows:
The company's cash flows from operating activities for the year amounted to $448,000. This includes various adjustments to reconcile net loss to net cash provided by operating activities, such as depreciation of property and equipment, non-cash employee compensation expense, and amortization of right-of-use assets. Changes in operating assets and liabilities, including accounts receivable, inventory, and accounts payable, also influenced cash flows.
Cash flows from investing activities resulted in a net cash outflow of $2.36 million, primarily due to the purchase of property and equipment.
Air Industries Group generated net cash inflows from financing activities, amounting to $1.57 million. This includes net proceeds from revolving loans, proceeds from a term note, and payments made towards loan obligations and lease liabilities.
The company reported a net decrease in cash of $346,000 for the year, with cash at the beginning of the year amounting to $627,000 and cash at the end of the year totaling $281,000.
Conclusion:
Air Industries Group faced a challenging year in 2022, reporting a net loss of $1.08 million and a decline in revenue to $53.24 million. The company's financial performance was impacted by various factors, including decreased sales and higher operating expenses. Air Industries Group will need to implement strategies to address these challenges and drive growth in the coming year.