Air Industries Group (NYSE:AIRI)

Second Quarter 2014 Results

• For the three months ended June 30, 2014, consolidated net sales were $13,360,000, a decrease of $1,279,000 or (9%) compared to consolidated net sales of $14,639,000 for the 2nd qtr. of the prior year.
• Diluted earnings per common share were $0.09 for the three months ended June 30, 2014, an increase of $0.05 or approximately 125% from $0.04 for the comparable period of the prior year.

Separately, Air Industries Group announced today that through its subsidiary, Eur-Pac Corporation, it has reached an agreement in principle with the sole shareholder of Electronic Connection Corporation (ECC) of Bloomfield, CT to acquire 100% of the outstanding shares of the company. Air Industries intends to relocate and consolidate this new business into Eur-Pac's facility in Waterbury, CT. The addition of ECC will not materially impact the financial results of Air Industries Group. Mr. Sean Chilson, a twenty-five year veteran of the aerospace and electronics manufacturing industry and President of ECC since 2009 will remain with the combined company.

Mr. Peter Rettaliata, Chief Executive Officer of Air Industries Group, commented: "On May 16th Air Industries announced that it expected second quarter revenues to be approximately $12.5 million. Our results for the quarter exceeded this amount, but none the less are disappointing. The Company continues to experience delays in expected military contracts and reductions in quantities ordered. While we have recently experienced some recovery and anticipate that the year will be profitable and our results will improve in the fourth quarter, the pace of recovery throughout the defense industry remains tepid and it will be difficult to internally grow our business in the defense industry -- the core of our business while we expand our presence in the commercial sector.

"Our acquisition program continues to progress. On April 1st we completed the acquisition of Woodbine Products of Deer Park Long Island, and are now integrating its operations into our Welding Metallurgy subsidiary on Long Island. On June 1st, we acquired Eur-Pac Corporation of Waterbury Connecticut which will operate as a separate subsidiary of Air Industries. Today, we announced an agreement in principle to acquire Electronic Connection Corporation of Bloomfield, Connecticut. We anticipate closing this transaction in just a few weeks, and anticipate that by the end of the year combining its operations into Eur-Pac in Waterbury. ECC is a small company and its impact on our consolidated results will be minimal, but we expect it will have a positive impact on Eur-Pac by expanding its product offerings and increasing through-put in the facility, absorbing overhead and contributing to profitability. We have previously announced a possible acquisition in the South West and we continue to be in discussions with this company. We are in various stages of discussions with four additional acquisition opportunities."

BAY SHORE, NY--(Marketwired - Jun 5, 2014) - Air Industries Group (NYSE MKT: AIRI)

Air Industries Group (NYSE MKT: AIRI) ("Air Industries" or "the Company"), announced today the closing of the acquisition of all of the outstanding stock of Eur-Pac Corporation of Waterbury CT. Eur-Pac, specializes in military packaging and supplies. Eur-Pac's primary business is "kitting" of supplies for all branches of the United States Defense Department including ordnance parts, hose assemblies, hydraulic, mechanical and electrical assemblies. Eur-Pac's MIL-I-45208 ISO 9002 inspection system has been audited and approved by the Department of Defense and several commercial entities.

Eur-Pac, the first acquisition outside of Long Island, will be operated as a separate and independent platform company of Air Industries. The two principals of Eur-Pac, who are the sons of the founder and have worked at the firm for decades, will remain with and continue to manage the Company for two years following the closing. Air Industries has also transferred a young executive from its Welding Metallurgy subsidiary to Eur-Pac.

Mr. Peter Rettaliata, Chief Executive Officer of Air Industries commented: "We are very excited about the closing of the Eur-Pac acquisition. Eur-Pac, founded in 1947 in Brooklyn, has a long tradition of supplying assemblies and kits to the Defense Department. While Eur-Pac will operate as a separate subsidiary, its products are similar to many of our other subsidiaries. We view Eur-Pac as a platform and hope to grow the business.

"We have previously announced three possible acquisition opportunities. We have now closed on two of these, Woodbine Products on April 1^st, and now Eur-Pac. We continue to make good progress on closing the third acquisition and are actively examining new candidates.

"We have also reached an agreement to renew our lease of our 80,000 square foot Welding Metallurgy manufacturing facility in Hauppauge, New York for a ten year period beginning January 1, 2016. However, this agreement is conditioned on our obtaining appropriate real estate tax abatements from the Suffolk County Industrial Development Agency. While our preference and intention is to remain in New York it is important that we can reach an agreement with the County."

First Quarter 2014 Reuslts

• For the three months ended March 31, 2014, consolidated net sales were $15,453,000, an increase of $1,128,000 or 8% compared to consolidated net sales of $14,325,000 for the 1^st qtr of the prior year.
• Diluted earnings per common share were $0.06 for the 1st qtr of 2014, an increase of $0.01 or approximately 20% from $0.05 for the prior year.

Mr. Peter Rettaliata, Chief Executive Officer of Air Industries Group, commented: "Air Industries' business is heavily weighted towards military aerospace as we have previously said the reduction in military procurement is a fact in our business. We expect that the resolution of the budgeting process in Washington which has replaced the across-the-board Sequestrations spending cuts with clearer budgets will provide more predictability to sales. Air Industries sees Aerospace as a long-term growth industry -- led by Commercial Aircraft -- and we are excited by the future. The effects of sequestration have hidden some of our successes. We believe we are a growth company with some recent large and strategically important commercial aerospace contract wins that will contribute significant revenue in future years. Beyond this we have a significant number of potential contract proposals.

"On April 1st we completed the acquisition of Woodbine Products of Deer Park Long Island, and we are making good progress towards closing the two other acquisitions we have previously announced."

BAY SHORE, NY--(Marketwired - Jun 10, 2013) - Air Industries Group, Inc. (OTCQB: AIRI) (OTCBB: AIRI) today announced that its common stock has been approved for listing on the NYSE MKT, the premier U.S. equities market for listing and trading of small growth companies. Trading is expected to commence on the NYSE MKT on Wednesday, June 12, 2013, under the ticker symbol "AIRI".

"The NYSE MKT listing is a significant corporate milestone for Air Industries. The NYSE listing should enable us to increase the trading liquidity of our stock, broaden our shareholder base, and raise our profile in the investment community," said Michael N. Taglich, Chairman of the Board of Air Industries Group. "We also believe that listing on the NYSE increases the awareness and stature of Air Industries among its Tier 1 Aerospace customers and suppliers."

"We are pleased to welcome Air Industries Group, Inc. to the NYSE MKT family of listed companies," said Scott Cutler, EVP and Co-Head of U.S. Listings and Cash Execution at NYSE Euronext. "AIRI will be joining many growth-oriented companies in the U.S. in taking advantage of the NYSE's advanced and innovative market model offering a premier value for listing and trading their stocks."

BAY SHORE, NY--(Marketwire - Oct 17, 2012) - Air Industries Group, Inc. (PINKSHEETS: AIRI) today announced that its Board of Directors approved the initiation of quarterly cash dividends to its shareholders. This is the first cash dividend paid to shareholders in the company's history.

A quarterly dividend of $0.0625 per common share will be paid on November 15, 2012, to all shareholders of record as of the close of business on October 31, 2012. Future dividends will be subject to Board and Bank approval.

Mr. Michael Taglich, Chairman of the Board of Air Industries Group, commented: "Our Board is confident in the Company's position and we plan on paying quarterly dividends as a matter of policy, so long as it is prudent and possible to do so. We are delighted that we can deliver dividend income to shareholders as we continue to reduce our debt. Our internal growth opportunities, which we are excited about, are more than adequately funded. We will be pursuing select acquisition opportunities that are strategic and accretive. Having a marketable stock that pays a dividend should enhance our financial ability to do smart deals in a disciplined manner."