LONG BEACH, Calif., Nov. 17, 1998 (PRIMEZONE) -- Advanced Aerodynamics & Structures, Inc. (Nasdaq: AASI) today reported results for the third quarter and nine months ended September 30, 1998, posting net losses, as anticipated, for the periods. Results reflect AASI's status as a developmental stage company that is seeking FAA approval of the JETCRUZER(tm) 500, a new six-passenger aircraft designed for the world business, commercial and government markets.
AASI has received orders for 150 of its JETCRUZER aircraft, representing a backlog of more than $180 million. Based on a new design, the JETCRUZER 500 is a high speed (360 mph) single engine, corporate propjet aircraft that can accommodate first class seating for six people, including the pilot. Powered by a Pratt & Whitney propjet engine, the JETCRUZER 500 can fly from Los Angeles to New York at altitudes up to 30,000 feet, with only one stop.
AASI completed the first nine months of 1998 with working capital of $4.2 million and a current ratio of 5.7:1. Stockholders' equity stood at $14.3 million, for a book value of $1.60 per share. The company's long-term debt totals $8.5 million.
For the third quarter, the company posted a reduced net loss of $2.3 million, or $0.25 per share, compared with a net loss of $2.4 million, or $0.27 per share, for the same period last year.
For the first nine months, AASI reported a net loss of $6.8 million, or $0.77 per share, versus a net loss of $4.2 million, or $0.48 per share, a year ago. The company said results for the first nine months reflect increased research and development costs associated with the development of the JETCRUZER 500 aircraft.
Dr. Carl Chen, chairman and chief executive officer, said, "Flight tests of the JETCRUZER 500 are continuing satisfactorily. To meet growing customer demand for fully outfitted aircraft, we plan to start fabrication of major components of the JETCRUZER 500 during the first quarter of 1999. Deliveries are expected to begin in second half of 1999."
Subsequent to the end of the third quarter 1998, the company participated in the National Business Aviation Association (NBAA) and Aircraft Owners and Pilot Association (AOPA) general aviation trade shows.
"We were pleased with the response from the general aviation community and potential new customers," Dr. Chen said. "Negotiations are underway to confirm and book orders taken at NBAA and AOPA."
The company has completed construction of its new 200,000 square-foot manufacturing and headquarters building. "Having reached this milestone, we now intend to focus on the final phase of the JETCRUZER 500 development program," Dr. Chen said.
The new manufacturing facility spreads over 10 acres of the Long Beach Municipal Airport and contains a computerized production system, tooling and equipment necessary for producing 120 JETCRUZER aircraft per year, with one work shift.
AASI noted that net proceeds from its initial public offering in December 1996, as well as a new credit agreement that is currently being negotiated, will enable the company to meet its capital requirements through the end of 1999.
Advanced Aerodynamics & Structures, Inc. is a publicly traded, development-stage company organized to design, develop, have certified by the Federal Aviation Administration (FAA), manufacture and market propjet and jet aircraft for the world business, commercial and government markets.
Certain statements contained in this news release, including statements concerning the Company's future cash and financing requirements, the Company's ability to continue to obtain market acceptance of the JETCRUZER 500 aircraft, the Company's ability to obtain regulatory approval of the JETCRUZER 500, and the competitive market for sales of small business aircraft and other statements contained herein regarding matters that are not historical facts, are forward looking statements; actual results may differ materially from those set forth in the forward looking statements, which statements involve risks and uncertainties, including without limitation those risks and uncertainties set forth in the Company's Registration Statement on Form SB-2 under the heading "Risk Factors," and the Company's Form 10-KSB and Form 10-QSB on file with the SEC.
ADVANCED AERODYNAMICS & STRUCTURES, INC.
(A Development Stage Enterprise)
Statement of Operations
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
1998 1997 1998 1997
-------- --------- -------- --------
Interest income $ 209,000 $ 243,000 $ 799,000 $ 884,000
Other income 94,000 -- 187,000 7,000
--------- --------- --------- ---------
303,000 243,000 986,000 891,000
Costs and expenses
Research and development costs 1,667,000 1,781,000 5,041,000 3,013,000
Preoperating costs -- -- -- --
General and administrative
expense 795,000 827,000 2,491,000 2,014,000
Loss on disposal of assets -- -- -- 106,000
Interest expense 83,000 -- 264,000 --
In-process research and
development acquired -- -- -- --
2,545,000 2,608,000 7,796,000 5,133,000
--------- --------- --------- ---------
Loss before extraordinary item (2,242,000) (2,365,000) (6,810,000) (4,242,000)
Extraordinary loss on retirement
of Bridge Notes -- -- -- --
Net loss (2,242,000) (2,365,000) (6,810,000) (4,242,000)
Net loss per common share (0.25) (0.27) (0.77) (0.48)
--------- --------- --------- ---------
Weighted average number of
shares outstanding 8,900,000 8,900,000 8,900,000 8,900,000
--------- --------- --------- ---------
ADVANCED AERODYNAMICS & STRUCTURES, INC.
(A Development Stage Enterprise)
Balance Sheet Data
(Unaudited)
September 30, 1998
------------------
Assets
Current Assets:
Cash and cash equivalents $ 3,378,000
Certificate of deposit 12,000
Short-term investments 1,333,000
Prepaid expenses and other current assets 351,000
------------
Total current assets 5,074,000
Restricted cash 11,308,000
Property and equipment, net 1,904,000
Construction in progress 5,942,000
Other assets 595,000
Total assets $ 24,823,000
============
Liabilities and Stockholders' Equity
Current Liabilities:
Accounts payable $ 463,000
Accrued liabilities 425,000
Total current liabilities 888,000
Long-term debt 8,500,000
Deferred revenue 1,150,000
-----------
Total liabilities 10,538,000
Stockholders' equity
Preferred Stock, par value $.0001 per share; 5,000,000
shares authorized; no shares issued and outstanding --
Class A Common Stock, par value $.0001 per share; 60,000,000
shares authorized; 6,999,676 shares issued and outstanding 1,000
Class B Common Stock, par value $.0001 per share;
10,000,000 shares authorized; 1,900,324 shares issued and outstanding --
Class E-1 Common Stock; par value $.0001 per share;
4,000,000 shares authorized; 4,000,000 shares issued and outstanding --
Class E-2 Common Stock; par value $.0001 per share;
4,000,000 shares authorized; 4,000,000 shares issued and outstanding --
Warrants to purchase common stock
Public Warrants 473,000
Class A Warrants 11,290,000
Class B Warrants 4,632,000
Additional paid-in capital 35,652,000
Deficit accumulated during the development stage (37,763,000)
-----------
Total stockholders' equity 14,285,000
Total liabilities and stockholders' equity $ 24,823,000
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Contact: David M. Turner, Vice President and
Chief Financial Officer
Advanced Aerodynamics & Structures, Inc.
(562) 938-8618
Michael Pollock/Roger Pondel
Pondel Parsons & Wilkinson
(310) 207-9300