UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): October 18, 1999
AVTEAM, INC.
(Exact name of registrant as specified in its charter)
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Florida 0-20889 65-0313187
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(State or other jurisdiction (Commission (I.R.S. Employer
of incorporation or organization) File Number) Identification No.)
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3230 Executive Way
Miramar, Florida 33025
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(Address, including zip code, of principal executive office)
(954) 431-2359
Registrant's telephone number, including area code
NOT APPLICABLE
(Former name, former address and fiscal year, if changed since last report)
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ITEM 5. OTHER EVENTS.
On October 18, 1999, AVTEAM, Inc. (the "Company") announced its
expectations for third quarter revenues. The Company reported that it expects
third quarter revenues to exceed $30,000,000. The Company stated that these
results would represent a 100% increase compared to prior-year third quarter
results. The Company expects to report its 1999 third quarter financial results
during the second week in November 1999.
The Company announced that its inventory has decreased approximately
10% in 1999 as efficiencies resulting from the December 1998 acquisition of M&M
Aircraft Services are being realized.
The Company reiterated that on May 17, 1999 its Board of Directors
retained Credit Suisse First Boston ("CSFB") to assist the Company in exploring
strategic alternatives to improve shareholder value. The Company reported that
after review of CSFB's findings, the Board of Directors has concluded that it
would be in the long-term best interests of Company shareholders to sustain the
operating strategy currently executed by Company management. Company Chairman
and Chief Executive Officer Donald A. Graw also announced that the Company
believes it is well positioned to expand its products and services for the CFM56
engine series, currently the world's most produced commercial jet engine.
Except for the factual statements made herein, the information
contained in this Form 8-K consists of forward looking statements that involve
risks, uncertainties and assumptions that are difficult to predict. Words and
expressions reflecting optimism and satisfaction with current prospects, as well
as words such as "believe," "intends," "expects," "plans," "anticipates," and
variations thereof, identify forward looking statements, but their absence does
not mean that a statement is not forward looking. Such forward looking
statements are not guarantees of performance, and the Company's actual results
could differ materially from those contained in such statements. Factors that
cause or contribute to such differences include a decline in the demand for
aftermarket aircraft engines, rescheduling or cancellation of customer orders,
loss of a major customer, difficulties in executing the Company's plans to
significantly expand CFM56 capacities, regulatory uncertainties, seasonal
fluctuations, general competition and price pressures in the marketplace, and
the Company's ability to control costs and expenses. Reference is also made to
other factors set forth in the Company's other filings with the Securities and
Exchange Commission including the "Risk Factors," "Management's Discussion and
Analysis" and other sections of the Company's Form 10-K for the most recently
completed fiscal year. These forward looking statements speak only as of the
date of this filing, and the Company undertakes no obligation to publicly update
any forward looking statements to reflect new information, events or
circumstances after the date of this filing.
The full text of the press release issued by the Company on October 18,
1999 is attached hereto as Exhibit 99.1 and is incorporated herein by reference.
ITEM 7. EXHIBITS.
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EXHIBIT NO. DOCUMENT
99.1 Press release dated October 18, 1999.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
AVTEAM, INC.
Date: October 21, 1999 By: /s/ Donald A. Graw
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Donald A. Graw
President and Chief Executive Officer
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EXHIBIT INDEX
Exhibit Description
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99.1 Press release dated October 18, 1999
EXHIBIT 99.1
FOR IMMEDIATE RELEASE
October 18, 1999
AVTEAM EXPECTS THIRD QUARTER 1999 REVENUES TO MORE THAN DOUBLE THIRD QUARTER
1998 REVENUES
DETERMINES TO CONTINUE STRATEGY FOCUSED ON AFTERMARKET FOR CFM56 ENGINE SERIES
MIRAMAR, FL, OCTOBER 18, 1999 - AVTEAM, Inc. (Nasdaq: AVTM), a global supplier
of aftermarket aircraft engines, engine parts, airframe components, and engine
repair and overhaul services to the aviation industry, expects revenues for the
third quarter ended September 30, 1999 to exceed $30 million, which represents
more than a 100% increase compared to prior-year third quarter revenues.
Concurrently, AVTEAM's inventory has decreased approximately 10% in 1999 as
efficiencies resulting from the December 1998 acquisition of M&M Aircraft
Services are being realized. Donald A. Graw, Chairman and Chief Executive
Officer of AVTEAM, noted, "I am pleased with the increased efficient use of our
capital as both inventory and outstanding debt levels at the end of the third
quarter declined from second quarter levels." AVTEAM will report third quarter
financial results during the second week in November.
On May 17, 1999, AVTEAM's Board of Directors retained Credit Suisse First Boston
("CSFB") to assist the Company in exploring strategic alternatives to improve
shareholder value. CSFB has concluded its review and presented its findings. The
Board of Directors has determined that it is in the long-term best interests of
AVTEAM shareholders to sustain the operating strategy successfully being
executed. Mr. Graw further commented, "We believe we are well positioned to
expand our products and services for the CFM56 engine series, currently the
world's most produced commercial jet engine. We believe this strategy could
represent a significant growth driver for our future."
EXCEPT FOR THE FACTUAL STATEMENTS MADE HEREIN, THE INFORMATION CONTAINED IN THIS
PRESS RELEASE CONSISTS OF FORWARD LOOKING STATEMENTS THAT INVOLVE RISKS,
UNCERTAINTIES AND ASSUMPTIONS THAT ARE DIFFICULT TO PREDICT. WORDS AND
EXPRESSIONS REFLECTING OPTIMISM AND SATISFACTION WITH CURRENT PROSPECTS, AS WELL
AS WORDS SUCH AS "BELIEVE," "INTENDS," "EXPECTS," "PLANS," "ANTICIPATES" AND
VARIATIONS THEREOF, IDENTIFY FORWARD LOOKING STATEMENTS, BUT THEIR ABSENCE DOES
NOT MEAN THAT A STATEMENT IS NOT FORWARD LOOKING. SUCH FORWARD LOOKING
STATEMENTS ARE NOT GUARANTEES OF PERFORMANCE, AND THE COMPANY'S ACTUAL RESULTS
COULD DIFFER MATERIALLY FROM THOSE CONTAINED IN SUCH STATEMENTS. FACTORS THAT
CAUSE OR CONTRIBUTE TO SUCH DIFFERENCES INCLUDE A DECLINE IN THE DEMAND FOR
AFTERMARKET AIRCRAFT ENGINES, RESCHEDULING OR CANCELLATION OF CUSTOMER ORDERS,
LOSS OF A MAJOR CUSTOMER, DIFFICULTIES IN EXECUTING THE COMPANY'S PLANS TO
SIGNIFICANTLY EXPAND CFM56 CAPACITIES, REGULATORY UNCERTAINTIES, SEASONAL
FLUCTUATIONS, GENERAL COMPLETION AND PRICE PRESSURES IN THE MARKETPLACE, AND THE
COMPANY'S ABILITY TO CONTROL COSTS AND EXPENSES. REFERENCE IS ALSO MADE TO OTHER
FACTORS SET FORTH IN THE COMPANY'S FILINGS WITH THE SECURITIES AND EXCHANGE
COMMISSION INCLUDING THE "RISK FACTORS," "MANAGEMENT'S DISCUSSION AND ANALYSIS"
AND OTHER SECTIONS OF THE COMPANY'S FORM 10-K FOR THE MOST RECENTLY COMPLETED
FISCAL YEAR. THESE FORWARD LOOKING STATEMENTS SPEAK ONLY AS OF THE DATE OF THIS
RELEASE, AND THE COMPANY UNDERTAKES NO OBLIGATION TO PUBLICLY UPDATE ANY FORWARD
LOOKING STATEMENTS TO REFLECT NEW INFORMATION, EVENTS OR CIRCUMSTANCES AFTER THE
DATE OF THIS RELEASE.
