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Kellstrom Industries Inc – ‘NT 10-K’ for 12/31/00

On:  Monday, 4/2/01, at 3:21pm ET   ·   For:  12/31/00   ·   Accession #:  950144-1-4635   ·   File #:  0-23764

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  As Of                Filer                Filing    For·On·As Docs:Size              Issuer               Agent

 4/02/01  Kellstrom Industries Inc          NT 10-K    12/31/00    1:21K                                    Bowne of Atlanta Inc/FA

Notice of a Late Filing of a Form 10-K   —   Form 12b-25
Filing Table of Contents

Document/Exhibit                   Description                      Pages   Size 

 1: NT 10-K     Kellstrom Industries, Inc. Form 12B-25 12-31-2000      8     40K 

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SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 12b-25 NOTIFICATION OF LATE FILING Commission File Number 0-23764 --------------- (Check one) [X] Form 10-K and Form 10-KSB [ ] Form 11-K [ ] Form 20-F [ ] Form 10-Q and Form 10-QSB [ ] Form N-SAR For period ended December 31, 2000 -------------------------------------------------------------- [ ] Transition Report on Form 10-K and Form 10-KSB [ ] Transition Report on Form 20-F [ ] Transition Report on Form 11-K [ ] Transition Report on Form 10-Q and Form 10-QSB [ ] Transition Report on Form N-SAR For the transition period ended ----------------------------------------------- READ ATTACHED INSTRUCTION SHEET BEFORE PREPARING FORM. PLEASE PRINT OR TYPE. Nothing in this form shall be construed to imply that the Commission has verified any information contained herein. If the notification relates to a portion of the filing checked above, identify the item(s) to which the notification relates:_________________________ ________________________________________________________________________________ PART I REGISTRANT INFORMATION Full name of registrant Kellstrom Industries, Inc. -------------------------------------------------- Former name if applicable Not Applicable ------------------------------------------------ Address of principal executive office (STREET AND NUMBER) 1100 International Parkway --------------------------------------------------------- City, State and Zip Code Sunrise, FL 33323 -------------------------------------------------
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PART II RULE 12b-25(b) AND (c) If the subject report could not be filed without unreasonable effort or expense and the registrant seeks relief pursuant to Rule 12b-25(b), the following should be completed. (Check appropriate box.) [X] (a) The reasons described in reasonable detail in Part III of this form could not be eliminated without unreasonable effort or expense; [X] (b) The subject annual report, semi-annual report, transition report on Form 10-K, 10-KSB, 20-F, 11-K or Form N-SAR, or portion thereof will be filed on or before the 15th calendar day following the prescribed due date; or the subject quarterly report or transition report on Form 10-Q, 10-QSB, or portion thereof will be filed on or before the fifth calendar day following the prescribed due date; and [ ] (c) The accountant's statement or other exhibit required by Rule 12b-25(c) has been attached if applicable. PART III NARRATIVE State below in reasonable detail the reasons why Forms 10-K, 10-KSB, 11-K, 20-F, 10-Q, 10-QSB, N-SAR or the transition report portion thereof could not be filed within the prescribed time period. (Attach extra sheets if needed.) The Registrant's Annual Report on Form 10-K for the fiscal year ended December 31, 2000 could not be filed within the prescribed time period because certain information and data relating to and necessary for the completion of the Registrant's financial statements and management's discussion and analysis of financial condition and results of operations could not be obtained by the Registrant within such time period without unreasonable effort or expense. PART IV OTHER INFORMATION (1) Name and telephone number of person to contact in regard to this notification. OSCAR TORRES (954) 845-0427 -------------------------------------------------------------------------------- (Name) (Area Code) (Telephone Number) (2) Have all other periodic reports required under Section 13 or 15(d) or the Securities Exchange Act of 1934 or Section 30 of the Investment Company Act of 1940 during the preceding 12 months or for such shorter period that the registrant was required to file such report(s) been filed? If the answer is no, identify report(s). [X] Yes [ ] No (3) Is it anticipated that any significant change in results of operations from the corresponding period for the last fiscal year will be reflected by the earnings statements to be included in the subject report or portion thereof? [X] Yes [ ] No If so: attach an explanation of the anticipated change, both narratively and quantitatively, and, if appropriate, state the reason why a reasonable estimate of the results cannot be made. Certain changes have occurred as publicly disclosed in a press release on April 2, 2001, a copy of which is attached as Exhibit A. KELLSTROM INDUSTRIES, INC. -------------------------------------------------------------------------------- (Name of Registrant as Specified in Charter) Has caused this notification to be signed on its behalf by the undersigned thereunto duly authorized. Date: April 2, 2001 By: /s/ Oscar Torres -------------------------------- Oscar Torres Chief Financial Officer
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Exhibit A KELLSTROM INDUSTRIES, INC. FOR IMMEDIATE RELEASE KELLSTROM ANNOUNCES FOURTH QUARTER AND YEAR-END RESULTS Positive Cash Flow From Operations Totals $25.1 Million for 2000 Sunrise, FL - April 2, 2001 -- Kellstrom Industries, Inc. [NASDAQ: KELL] today announced results for its fourth quarter and year ended December 31, 2000. Revenues for the fourth quarter increased by 3.6% to $96.2 million from $92.9 million in 1999. As announced in early January 2001, after the completion of the acquisition of the aircraft and engine parts resale business of Aviation Sales Company (the "Acquisition") on December 1, 2000, in connection with the Acquisition and due to depressed market conditions in the fourth quarter, Kellstrom incurred unusual charges and wrote-down certain inventories and operating assets, both of which depressed profitability. These charges included: o $1.3 million, net of tax, extraordinary loss related to prepayment penalties and the write-off of deferred financing costs in connection with the pay down of $11.25 million in senior subordinated notes; o $3.0 million in severance and other realignment costs primarily incurred in connection with the elimination of redundant or unnecessary positions in connection with the Acquisition and the ongoing process of consolidating seven Kellstrom facilities into one; o $50.6 million of non-cash inventory write-downs and impairment charges related to the Company's inventory and lease portfolio, taking the combined book value down to $294.2 million. Excluding these expenses and charges, Kellstrom would have reported net income of $194,000 or $.02 per diluted share for the 2000 fourth quarter. Inclusive of the aforementioned expenses and charges, there was a fourth quarter net loss of $34.9 million, or $2.93 per diluted share. In 1999's fourth quarter, Kellstrom reported net income of $3.9 million, or $0.31 per diluted share. Revenues for the year ended December 31, 2000 were up 7.0% to $354.0 million from $330.9 million in 1999. Net income for the year, excluding the expenses and charges noted above, was $3.9 million, or $.32 per diluted share. Net loss inclusive of the aforementioned expenses and charges for the year ended December 31, 2000 was $31.3 million, or $2.63 per diluted share after such charges. In 1999, Kellstrom reported net income of $20.5 million, or $1.48 per diluted share. For the full year 2000, the Company generated $25.1 million of cash flow from operations as compared to cash flow used in operations of $48.6 million for the full year 1999. Cash flow used in operations for the fourth quarter was $2.7 million as compared to cash flow provided by operations of $3.6 million for the fourth quarter of 1999. (more)
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Kellstrom Industries, Inc. News Release Page 2 April 2, 2001 Oscar Torres, Kellstrom's Chief Financial Officer pointed out, "For the last five quarters, we have been using free cash flow to pay down our bank debt, as well as for acquisitions and capital expenditures. During the last quarter of 2000 we replaced $11.3 million of debt with a remaining average maturity of 20 months, with $30 million of debt with a maturity of seven years. As an accommodation and in recognition of our changing business environment resulting in our not being in compliance with certain financial covenants contained in our senior credit facility, our commercial lenders have been supportive of the Company by amending our financial covenants. As previously reported, we have commenced an exchange offer, led by Banc of America Securities as our financial advisor, for our $140.3 million in convertible notes. The exchange offer is intended to address the liquidity concerns related to the repayment of principal in 2002 and 2003 on such notes and grant the Company greater operational flexibility in the current business environment." Mr. Torres went on to say; "We are progressing in the integration of the Acquisition and the realignment of our organization from four divisions into two, comprised of the Commercial Aerospace Business Unit and Defense Aerospace Business Unit. We have reduced headcount by about 30% with a portion of the severance expense and other realignment costs taken in the fourth quarter of 2000, we are left with the remainder for the first half of 2001. With the Company moving the majority of its operations to the Miramar facility, we are now actively seeking to dispose of our former headquarters building in Sunrise, as well as other smaller properties owned by the Company. The net proceeds of those sales may be used to reduce debt. Finally, once the integration of the Acquisition is completed, annualized savings in selling, general and administrative expenses are expected to reach $15 million, mostly from personnel reductions, economies of scale, and operating efficiencies and synergies." Zivi R. Nedivi, President and Chief Executive Officer of Kellstrom Industries, stated, "The past year has been a trying time for our industry, particularly in the fourth quarter. We've watched as competitors, facing severe financial pressures, defaulted on loans, declared bankruptcy, and sold or closed businesses and product lines. One consequence has been the disposal of inventory at fire sale prices. This not only depressed industry-wide margins, but also caused a general decline in after-market inventory values, which resulted in the need to write-down certain items in our inventory. In a related move and in keeping with our goal of shrinking the size of our lease portfolio, we liquidated under-performing assets at lower prices than in the past, which on a going forward basis should have a favorable impact on inventory turns. Over time, we believe that the excess parts inventory in the aftermarket will dry up, and Kellstrom will be one of the largest and strongest remaining players, serving the global commercial and military aviation industry with nose-to-tail inventory management solutions." Mr. Nedivi concluded, "During the downturn in our industry, we established Kellstrom as a premier nose-to-tale solutions provider and acquired additional market share, but at the expense of profitability over the past six quarters. Subject to aviation industry trends, as well as the overall economic outlook, we estimate that it will take three to six quarters to achieve a sustainable turnaround in our business. Specifically, we expect a first and second quarter net loss, which will include exchange offer expenses as well as costs related to severance and relocation to the Miramar facility. We are focused on integrating the Acquisition, and believe that Kellstrom, with a unified, customer-focused organization, superior quality assurance and an advanced information technology capability, is positioned to be the leading independent inventory management company in the aviation industry. Once the industry slump is behind us, we expect to achieve the financial returns that our leadership position, resolve, and resources afford us." (more)
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Kellstrom Industries, Inc. Page 3 April 2, 2001 CONFERENCE CALL Kellstrom's management will host a conference call at 3 pm. Eastern Daylight Savings Time on Monday, April 2, 2001 to discuss fourth quarter and year-end results. The conference call will be broadcast live over the Internet via the Investor Relations section of the Company's web site at WWW.KELLSTROM.COM. To listen to the live call, go to the web site at least 10 minutes early to register, download and install any necessary audio software. If you are unable to listen live, the conference call will be archived and can be accessed for approximately 90 days. Kellstrom Industries, Inc. is a leading aviation inventory management company delivering innovative and value added nose-to-tail programs to the global commercial and military aviation markets. The Company unites cutting edge information technology, including e-commerce, with quality assurance methodologies to provide engines and parts for large turbo-fan engines manufactured by CFMI, General Electric, Pratt & Whitney and Rolls Royce, in addition to a full complement of rotables and components for the commercial aircraft they power. Kellstrom is also a premier inventory management and components supplier of engines, components, systems and parts for large military transport aircraft, jet fighters and helicopters. The Company is an approved supplier to an international customer base including major domestic and international airlines, military air forces, original equipment manufacturers and engine overhaul shops. [Download Table] CONTACT: Kellstrom Industries, Inc. (954) 845-0427 KELL'S INVESTOR RELATIONS COUNSEL: Zivi R. Nedivi, Pres. & CEO The Equity Group Inc. Yoav Stern, Chairman of the Board Linda Latman (212) 836-9609 Oscar Torres, Chief Financial Officer Bob Goldstein (212) 371-8660 Michael Shokouhi, Director of Investor Relations www.theequitygroup.com www.kellstrom.com ---------------------- ----------------- (See Accompanying Tables)
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Kellstrom Industries, Inc. News Release Page 4 April 2, 2001 KELLSTROM INDUSTRIES, INC. Consolidated Condensed Statements of Operations (In thousands, except per share amount) [Enlarge/Download Table] THREE MONTHS ENDED TWELVE MONTHS ENDED DECEMBER 31, DECEMBER 31, -------------------------------------------------------------------------------- 2000 1999 2000 1999 ---------------- ---------------- ------------------- ---------------- Sales of aircraft and engine parts, net $90,917 $83,274 $332,255 $288,912 Rental revenues 5,322 9,656 21,728 42,032 ----- ----- ------ ------ Total revenues 96,239 92,930 353,983 330,944 Cost of goods sold (68,730) (60,982) (247,413) (200,889) Cost of goods sold - inventory write- down (45,469) (45,469) 0 Depreciation of equipment under operating leases (3,851) (6,525) (18,070) (27,114) Selling, general and administrative (14,087) (11,750) (49,241) (41,150) Depreciation and amortization (2,042) (1,481) (6,859) (5,398) Restructuring, impairment and other charges (8,462) -- (8,462) (2,200) ------ ----- ------- ------- Total operating expenses (142,641) (80,738) (375,514) (276,751) Operating (loss) income (46,402) 12,193 (21,531) 54,193 Interest expense, net of interest income (7,220) (5,950) (26,380) (21,268) ------- ------- -------- -------- (Loss) income before income taxes and extraordinary item (53,622) 6,243 (47,911) 32,925 Income tax benefit (expense) 20,067 (2,300) 17,930 (12,390) ------ ------- ------ -------- (Loss) income before extraordinary item (33,555) 3,943 (29,981) 20,535 -------- ----------- -------- ------ Extraordinary loss on early Extinguishments of debt, net of $803 tax benefit (1,349) -- (1,349) -- ------- ---------- ------- ----- (Loss) net income (34,904) $3,943 (31,330) $20,535 ======== ====== ======== ======= (Loss) earnings before extraordinary item per common share - basic $(2.82) $0.33 $(2.52) $1.73 (Loss) from extraordinary item per common share - basic $(0.11) -- $(0.11) --
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Kellstrom Industries, Inc. News Release Page 5 April 2, 2001 [Enlarge/Download Table] THREE MONTHS ENDED TWELVE MONTHS ENDED DECEMBER 31, DECEMBER 31, -------------------------------------------------------------------------------- 2000 1999 2000 1999 ---------------- ---------------- ------------------- ---------------- (Loss) earnings per common share - basic $(2.93) $0.33 $(2.63) $1.73 (Loss) earnings before extraordinary item per common share - diluted $(2.82) $0.31 $(2.52) $1.48 (Loss) from extraordinary item per common share - diluted $(0.11) -- $(0.11) -- ------- -- -- ------- ---- (Loss) earnings per common share - diluted $(2.93) $0.31 $(2.63) $1.48 Weighted average number of common shares outstanding - basic 11,911 11,911 11,911 11,855 Weighted average number of common shares outstanding - diluted 11,911 16,679 11,911 16,674
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Kellstrom Industries, Inc. News Release Page 6 April 2, 2001 KELLSTROM INDUSTRIES, INC. Consolidated Balance Sheet Highlights (In thousands) [Enlarge/Download Table] December 31, December 31, 2000 1999 --------------------- ------------------ Cash and cash equivalents $ 0 $ 272 Trade receivables, net 80,315 60,675 Inventories 195,640 194,491 Property and plant held for sale 19,932 -- Other current assets 17,888 13,479 ------- ------- Total current assets 313,775 268,917 Notes Receivable 3,435 -- Equipment under operating leases, net 98,555 150,137 Property, plant & equipment, net 19,896 25,340 Intangible assets, net 95,766 87,825 Deferred tax asset 17,487 -- Other assets 12,617 9,226 ------- -------- Total assets 561,531 $541,445 ======= ======== Short-term debt 167,277 165,774 Accounts payable and accrued expenses 67,802 35,847 Current maturities of long-term debt 200 2,346 Capital lease obligation 9,597 -- ------- ------- Total current liabilities 244,876 203,967 Long-term debt and other long-term liabilities 34,937 26,015 Convertible subordinated notes 140,250 140,250 ------- ------- Total liabilities 420,063 370,232 Stockholders' equity 141,468 171,213 ------- ------- Total liabilities and stockholders' equity 561,531 $541,445 ======= ======== THE COMPANY, FROM TIME TO TIME, MAY DISCUSS FORWARD-LOOKING INFORMATION. THIS PRESS RELEASE CONTAINS FORWARD-LOOKING STATEMENTS, INCLUDING STATEMENTS REGARDING THE COMPANY'S STRATEGIES, PLANS, OBJECTIVES AND EXPECTATIONS CONCERNING THE COMPANY'S FUTURE MARKET POSITION, OPERATIONS, CASH FLOW, MARGINS, REVENUE, EXPENSES, FUTURE PROFITABILITY, DECREASES IN DEBT, LIQUIDITY AND CAPITAL RESOURCES. THESE FORWARD-LOOKING STATEMENTS ARE BASED ON MANY ASSUMPTIONS AND FACTORS, AND ARE SUBJECT TO MANY CONDITIONS, INCLUDING ADVERSE CONSEQUENCES RELATING TO THE COMPANY'S SUBSTANTIAL DEBT, RESTRICTIONS ON THE COMPANY'S BUSINESS AND OPERATIONS IMPOSED BY ITS SENIOR DEBT, THE COMPANY'S ABILITY TO EFFECTIVELY INTEGRATE ACQUIRED COMPANIES, ACQUIRE ADEQUATE INVENTORY AND TO OBTAIN FAVORABLE PRICING FOR SUCH INVENTORY, POSSIBLE WRITE-DOWNS OF THE COMPANY'S INVENTORY, THE ABILITY TO ARRANGE FOR THE SERVICING OF THE COMPANY'S INVENTORY BY THIRD-PARTY CONTRACTORS BEFORE RESALE OR LEASE, POSSIBLE PRODUCT LIABILITY CLAIMS, CUSTOMER CONCENTRATION, COMPETITIVE PRICING FOR THE COMPANY'S PRODUCTS AND FLUCTUATIONS IN DEMAND FOR THE COMPANY'S PRODUCTS WHICH DEPENDS UPON THE CONDITION OF THE AIRLINE INDUSTRY. EXCEPT FOR THE HISTORICAL INFORMATION CONTAINED IN THIS RELEASE, ALL FORWARD-LOOKING STATEMENTS ARE ESTIMATES BY THE COMPANY'S MANAGEMENT AND ARE SUBJECT TO VARIOUS RISKS AND UNCERTAINTIES THAT MAY BE BEYOND THE COMPANY'S CONTROL AND MAY CAUSE RESULTS TO DIFFER FROM MANAGEMENT'S CURRENT EXPECTATIONS. CERTAIN OF THESE RISKS ARE DESCRIBED IN THE COMPANY'S FILINGS WITH THE SECURITIES AND EXCHANGE COMMISSION (SEC), INCLUDING THE REGISTRATION STATEMENT ON FORM S-4 FILED ON MARCH 8, 2001. COPIES OF THE COMPANY'S SEC FILINGS ARE AVAILABLE FROM THE SEC OR MAY BE OBTAINED UPON REQUEST FROM THE COMPANY. THE COMPANY DOES NOT UNDERTAKE ANY OBLIGATION TO UPDATE THE INFORMATION CONTAINED HEREIN, WHICH SPEAKS ONLY AS OF THIS DATE. #### #### ####

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Filed on:4/2/0128
3/8/018425,  S-4,  SC TO-I
For Period End:12/31/001310-K,  10-K/A
12/1/0033,  8-K
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