LMI Aerospace, Inc. (NASDAQ:LMIA) a major provider of design and aftermarket manufacturing services, and supplier of components, structural assemblies and kits to the defense and aerospace markets, released its updated financial guidance for the year closed December 31, 2016. Based upon preliminary information, the firm currently anticipated its 2016 net sales to come in a range of $345.7 million to $346.7 million compared to previously reported range of $345.0 million to $355.0 million.
The details
Operating profit guidance range is reduced to $13.5 million to $14.5 million compared to previously given range of $18.0 million to $21.0 million. Free cash flow guidance range is set in between $3.0 million to $4.0 million as compared to previously reported range of $10.0 million to $15.0 million. The reported guidance discounts the impact of a goodwill & intangible asset impairment expense of $28.4 million incurred in the Engineering Services division in 2Q2016.
Expected results for 2016 were adversely impacted by lower sales mainly due to customer delays; unexpected engineering modifications on a design-build agreement; and higher-than-expected medicinal costs. This preliminary, unaudited report is based on management’s initial assessment of operations for FY2016 and are subject to closure of the firm’s customary closing conditions, counting the year-end audit process.
Earlier LMI Aerospace reported that it has finalized a merger deal to be bought by Sonaca Group, an international aerostructures firm headquartered in Gosselies. Under the deal, the company’s shareholders will obtain $14 a share in an all-cash transaction deal. Sonaca’s proposal represents a 52% premium over company’s stock closing share price as on February 16, 2017, of $9.19 a share, a 63% premium over 3-month volume weighted mean price up to and counting February 16, of $8.59 a share, and a 78% premium over LMI Aerospace stock’s 6-month volume weighted mean price up to and counting February 16, of $7.88 per share.
In respect to this merger deal, Sonaca has obtained equity and debt financing commitments. This merger deal, however, does not comprise, and the consummation of the deal is not conditioned upon closure of, a financing condition.
