<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(Mark One)
[ x ] Quarterly Report pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934 for the Quarterly Period Ended June 30, 1998
OR
[ ] Transition Report pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934 for the Transition Period from ______ to ______
COMMISSION FILE NUMBER 333-46335
TRISTAR AEROSPACE CO.
(Exact name of registrant as specified in its charter)
DELAWARE 75-2665751
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
2527 Willowbrook Road
Suite 200
Dallas, Texas 75220-4420
(Address of principal executive offices)
214-956-3400
(Registrant's telephone number, including area code)
(Former name, former address and former fiscal year if changed since last
report)
Indicate by check mark whether registrant (1) has filed all reports required by
Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding
12 months (or for such shorter period that the registrant was required to file
such reports), and (2) has been subject to such filing requirements for the
past 90 days. Yes _X_ No ___
Indicate the number of shares outstanding of each of the issuer's classes of
common stock as of the latest practicable date.
Class Number of shares outstanding at July 31, 1998
Common Stock, $.01 par value 16,992,742
<PAGE>
TRISTAR AEROSPACE CO.
FORM 10-Q
Quarter Ended June 30, 1998
TABLE OF CONTENTS
PART I -- FINANCIAL INFORMATION
Item
1. Financial Statements
2. Management's Discussion and Analysis of Financial
Condition and Results of Operations
PART II -- OTHER INFORMATION
1. Legal Proceedings
2. Changes in Securities and Use of Proceeds
6. Exhibits and Reports on Form 8-K
Signatures
<PAGE>
TRISTAR AEROSPACE CO. AND SUBSIDIARIES
PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
TRISTAR AEROSPACE CO. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)
(UNAUDITED)
<TABLE>
JUNE 30, SEPTEMBER 30,
1998 1997
-------- -------------
<S> <C> <C>
ASSETS
Current Assets:
Cash $ 1,974 $ 4,764
Accounts receivable, net 33,906 24,305
Inventories, net 93,209 69,085
Other assets 2,335 1,526
-------- --------
Total current assets 131,424 99,680
Property & equipment, net 2,416 1,623
Intangibles & other assets, net 9,853 8,932
-------- --------
Total assets $143,693 $110,235
-------- --------
-------- --------
LIABILITIES & STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 21,275 $ 18,308
Accrued liabilities & other 6,865 9,768
-------- --------
Total current liabilities 28,140 28,076
Long-term debt 69,000 49,000
Stockholders' equity
Common stock, $.01 par value, 40,000,000
shares authorized 169 166
Additional paid-in capital 23,423 21,101
Retained Earnings 22,961 11,892
-------- --------
Total stockholders' equity 46,553 33,159
-------- --------
Total liabilities & stockholders' equity $143,693 $110,235
-------- --------
-------- --------
</TABLE>
The accompanying notes are an integral part
of these consolidated financial statements.
<PAGE>
TRISTAR AEROSPACE CO. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE DATA)
(UNAUDITED)
<TABLE>
<CAPTION>
Three Months Nine Months
Ended June 30, Ended June 30,
------------------------- -------------------------
1998 1997 1998 1997
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Revenues $ 49,158 $ 36,238 $ 137,562 $ 101,734
Cost of goods sold 33,456 24,579 93,871 69,387
----------- ----------- ----------- -----------
Gross Profit 15,702 11,659 43,691 32,347
Selling, general & administrative expenses 7,358 5,500 20,505 14,969
Compensation expense of stock options 1,133 - 1,486 -
----------- ----------- ----------- -----------
Operating Income 7,211 6,159 21,700 17,378
Interest and other expense
Interest Expense 1,423 1,232 3,912 4,079
Other Income (41) (5) (124) (6)
----------- ----------- ----------- -----------
Income before Taxes 5,829 4,932 17,912 13,305
Provision for income taxes 2,258 1,876 6,843 5,057
----------- ----------- ----------- -----------
Net Income $ 3,571 $ 3,056 $ 11,069 $ 8,248
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
Earnings per share:
Basic $ 0.21 $ 0.19 $ 0.66 $ 0.53
Diluted $ 0.20 $ 0.19 $ 0.62 $ 0.53
Weighted average shares outstanding:
Basic 16,772 16,080 16,646 15,624
Diluted 18,138 16,080 17,929 15,624
</TABLE>
The accompanying notes are an integral part of
these consolidated financial statements.
<PAGE>
TRISTAR AEROSPACE CO. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
(IN THOUSANDS)
(UNAUDITED)
<TABLE>
Nine Months
Ended June 30,
---------------------
1998 1997
-------- --------
<S> <C> <C>
Cash flows from operating activities:
Net income $ 11,069 $ 8,248
Adjustments to reconcile net income to net cash
provided by (used in) operating activities:
Depreciation and amortization 1,077 994
Provision for doubtful accounts (72) 550
Provision for excess and obsolete inventories 1,819 1,675
Compensation expense of stock options 1,486 -
Changes in operating assets and liabilities
(Increase) decrease in accounts receivable (9,529) (6,777)
(Increase) decrease in inventories (25,943) (860)
(Increase) decrease in other assets (2,163) (205)
Increase (decrease) in accounts payable & accrued expenses 69 4,169
-------- --------
Net cash provided by (used in) operating activities (22,187) 7,794
-------- --------
Cash flows from investing activities:
Capital expenditures (1,438) (328)
-------- --------
Net cash provided by (used in) investing activities (1,438) (328)
-------- --------
Cash flows from financing activities:
Issuance of common stock 835 1,168
Borrowings on revolving facility 20,500 5,700
Payments on revolving facility (500) (11,700)
-------- --------
Net cash provided by (used in) financing activities 20,835 (4,832)
-------- --------
Net increase (decrease) in cash (2,790) 2,634
Cash, beginning of period 4,764 1,522
-------- --------
Cash, end of period $ 1,974 $ 4,156
-------- --------
-------- --------
Supplemental cash flow information:
Cash paid for interest $ 3,748 $ 3,186
Cash paid for income taxes 7,435 4,204
</TABLE>
The accompanying notes are an integral part
of these consolidated financial statements.
<PAGE>
TRISTAR AEROSPACE CO. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
NOTE 1 - BASIS OF FINANCIAL STATEMENTS
The accompanying unaudited condensed consolidated financial statements have
been prepared in accordance with the instructions to Form 10-Q under Section 13
of the Securities Exchange Act of 1934 and are filed pursuant to Rule 13a - 13
and do not include all of the information and footnotes required by generally
accepted accounting principles for complete financial statements. In the
opinion of management, the accompanying condensed consolidated financial
statements contain all the adjustments (consisting of normal recurring
accruals) necessary for a fair statement of the Company's financial position as
of June 30, 1998 and September 30, 1997, and the results of operations and cash
flows for the three and nine month periods ended June 30, 1998 and 1997. The
results of operations for the three and nine month periods ended June 30, 1998
and 1997 are not necessarily indicative of the results to be expected for the
full fiscal year. The condensed consolidated financial statements should be
read in conjunction with the financial statements and accompanying notes
contained in the Company's prospectus dated April 30, 1998.
NOTE 2 - COMPENSATION EXPENSE OF STOCK OPTIONS
On December 8, 1997, the Company issued options to purchase 158,000 shares of
the Company's common stock to an executive at a discount from the fair market
value at the date of grant. Of the shares, 31,600 became exercisable
immediately and the Company recorded additional compensation expense of
$354,000 for the three month period ended December 31, 1997. Of the remaining
options, 101,120 vested when the Company's initial public offering was
completed on April 30, 1998, and resulted in compensation expense of $1,133,000
which was recorded in the three month period ended June 30, 1998. The
remaining 25,280 options became void as of April 30, 1998.
NOTE 3 - NEW ACCOUNTING PRONOUNCEMENT
In June 1998, the Financial Standards Board issued Statement of Financial
Accounting Standards No. 133, Accounting for Derivative Instruments and Hedging
Activities. The Statement establishes accounting and reporting standards
requiring that every derivative instrument be recorded in the balance sheet as
either an asset or liability at its fair value. The Company has determined
that the adoption of this statement will have no effect on its financial
statements.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS
Certain statements in this Form 10-Q under "Management's Discussion and
Analysis of Financial Condition and Results of Operations" may constitute
"forward-looking statements" within the meaning of the Private Litigation
Reform Act of 1995. Such forward-looking statements involve known and unknown
risks, uncertainties and other factors which may cause the actual results,
performance or achievements of TriStar Aerospace Co. ("Company") to be
materially different from any future results, performance or achievements
expressed or implied by such forward-looking statements. Such factors include,
among others, the following: competition; dependence on the commercial aircraft
industry; customer concentration; availability of hardware; success of
operating initiatives; adverse publicity; changes in business strategy;
availability and terms of capital; labor and employee benefit costs; changes in
government regulations; risks associated with international business; and other
factors referenced in the Company's prospectus dated April 30, 1998.
GENERAL
The Company is both a leading distributor of aerospace fasteners, fastening
systems and related hardware and a leading provider of customized inventory
management services to original equipment manufacturers of aircraft and
aircraft components, to commercial airlines and aircraft maintenance, repair
and overhaul facilities. In fiscal year 1997 approximately 59% of the
Company's revenues were derived from traditional distribution sales and
services ("conventional sales") and approximately 41% of the Company's revenues
were derived from sales resulting from the Company's long-term inventory
management agreements ("JIT services"). For the nine months ended June 30,
1998 conventional sales and JIT services represented 57% and 43% of revenues,
respectively.
<PAGE>
RESULTS OF OPERATIONS
THREE MONTHS ENDED JUNE 30, 1998 AND 1997
REVENUES
Revenues increased $12.9 million, or 35.7%, to $49.2 million for the three
month period ended June 30, 1998 compared to $36.2 million for the same period
in 1997. The Company's revenues have increased primarily due to an expansion
of service levels under certain JIT agreements and growth in customer demand
resulting from increased aircraft build rates.
GROSS PROFIT
Gross profit increased $4.0 million, or 34.7%, to $15.7 million for the three
month period ended June 30, 1998, compared to $11.7 million for the same period
in 1997. The increase in gross profit was primarily due to an increase in
revenues as noted above. Gross margin as a percentage of sales was 31.9% for
the three months ended June 30, 1998 compared to 32.2% for the same period in
1997. The decrease in gross margin was primarily due to a shift in product mix
that occurs in the normal course of business.
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES
Selling, general and administrative expenses increased $1.9 million, or 33.8%,
to $7.4 million for the three months ended June 30, 1998, compared to $5.5
million for the same period in the prior year. The increase was primarily due
to personnel costs related to building the management team and providing
support for initiatives to improve the effectiveness of operations and
administration necessary to support the growth in revenues.
INTEREST EXPENSE
Interest expense increased $.2 million, or $15.6%, to $1.4 million for the
three months ended June 30, 1998, as compared to $1.2 million for the same
period in 1997. The increase was due to higher outstanding borrowings offset
somewhat by a decrease in the interest rate under the Company's credit facility
for three months ended June 30, 1998, as compared to the same period in 1997.
NET INCOME
Net income increased $.5 million, or 16.9%, to $3.6 million, or $0.20 per
diluted share, for the three months ended June 30, 1998, compared to $3.1
million, or $0.19 per diluted share, for the same period in 1997. Excluding
the $1.1 million non-recurring charge related to the vesting of certain stock
options, net income increased $1.2 million, or 39.8%, to $4.3 million, or $0.24
per diluted share, for the three months ended June 30, 1998, compared to the
same period in 1997. The increase in net income was primarily due to an
increase in revenues and gross margins, which was somewhat offset by an
increase in selling, general and administrative expenses.
NINE MONTHS ENDED JUNE 30, 1998 AND 1997
REVENUES
Revenues increased $35.8 million, or 35.2%, to $137.6 million for the nine
month period ended June 30, 1998 compared to $101.7 million for the same period
in 1997. The Company's revenues have increased primarily due to an expansion
of service levels under certain JIT agreements and growth in customer demand
resulting from increased aircraft build rates.
GROSS PROFIT
Gross profit increased $11.3 million, or 35.1%, to $43.7 for the nine month
period ended June 30, 1998, compared to $32.3 million for the same period in
1997. The increase in gross profit was primarily due to an increase in
revenues as noted above. Gross margin as a percentage of sales was 31.8% for
the nine months ended June 30, 1998 compared to 31.8% for the same period in
1997.
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES
Selling, general and administrative expenses increased $5.5 million, or 37.0%,
to $20.5 million for the nine months ended June 30, 1998, compared to $15.0
million for the same period in 1997. The increase was primarily due to
increased personnel costs related to building the management team and providing
support for initiatives to improve the effectiveness of operations and
administration necessary to support the growth in revenues.
<PAGE>
NET INCOME
Net income increased $2.8 million, or 34.2%, to $11.1 million, or $0.62 per
diluted share, for the nine months ended June 30, 1998 as compared to $8.2
million, or $0.53 per diluted share, for the same period in 1997. Excluding
the $1.5 million non-recurring charge related to the vesting of certain stock
options, net income increased $3.7 million, or 45.4%, to $12.0 million, or
$0.67 per diluted share compared to the same period in 1997. The increase in
net income was primarily due to an increase in revenues offset somewhat by an
increase in selling, general and administrative expenses.
LIQUIDITY AND CAPITAL RESOURCES
The Company's liquidity requirements consist primarily of working capital
needs, capital expenditures and scheduled payments of interest and principal
due to borrowings under the Company's Credit Agreement. The Company funds its
liquidity requirements through cash flows from operations and a revolving
credit facility under the Credit Agreement.
The Company's working capital (current assets minus current liabilities) has
increased $31.7 million, or 44.2%, to $103.3 million as of June 30, 1998,
compared to $71.6 million as of September 30, 1997. The increase in working
capital was mainly the result of higher accounts receivable ($9.6 million) and
inventory ($24.1 million) levels needed to support the growth in revenues
during the nine months ended June 30, 1998. In addition, the Company has been
increasing inventory levels to support new inventory management service
agreements, expansion of existing inventory management service agreements and
expected future aircraft build rates. Capital expenditures and interest paid
were $1.4 million and $3.7 million, respectively, for the nine months ended
June 30, 1998 as compared to $0.3 million and $3.2 million, respectively, for
the same period in 1997.
The Company borrowed $20.0 million under its $30 million revolving credit
facility during the nine months ended June 30, 1998 to fund its operations and
capital expenditures, leaving an available revolver balance of $10.0 million.
Management believes that the Company's current cash position, cash flows from
operations, and available borrowing capacity will be sufficient to fund its
planned operations and capital expenditures for the remainder of fiscal 1998.
Actual results may differ from this forward-looking statement.
TRISTAR AEROSPACE CO. AND SUBSIDIARIES
PART II - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
See Part II, Item 5 of the Company's Form 10-Q for the Quarterly Period Ended
March 31, 1998.
ITEM 2. CHANGES IN SECURITIES AND USE OF PROCEEDS
In conjunction with the Company's initial public offering on May 5, 1998, the
underwriters for such offering were granted an option to purchase up to an
additional 1,991,276 shares of the Company's common stock from certain of the
selling stockholders in such offering. On June 9, 1998, the underwriters
elected to purchase 224,776 shares under this option. All of such shares were
purchased from selling stockholders and the Company received no proceeds from
the sale of such shares other than proceeds of $537,550 pursuant to the
exercise of options by one of the selling stockholders to purchase 204,768
shares at an average price of $2.63 per share. Proceeds thereof were used by
the Company for working capital purposes. With respect to the issuance of its
common stock pursuant to the option exercise, the Company relied upon the
exemption from registration provided by Section 4(2) of the Securities Act
relating to transactions by an issuer not involving any public offering. For
further details concerning this transaction, see the Company's Prospectus dated
April 30, 1998.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibit 10.34 - Fifth Amendment to Credit Agreement dated June 30, 1998,
among the Company and Bankers Trust Company, as agent.
Exhibit 27.1 - Financial Data Schedule
<PAGE>
(b) No reports on Form 8-K were filed during the three months ended June 30,
1998.
TRISTAR AEROSPACE CO. AND SUBSIDIARIES
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused the report to be signed on its behalf by the
undersigned thereunto duly authorized.
TRISTAR AEROSPACE CO.
(Registrant)
Date: August 13, 1998 By: /s/ P. QUENTIN BOURJEAURD
----------------------------------------
P. Quentin Bourjeaurd
President & Chief Executive Officer
Date: August 13, 1998 By: /s/ DOUGLAS E. CHILDRESS
----------------------------------------
Douglas E. Childress
Executive Vice President and Chief
Financial Officer
<PAGE>
FIFTH AMENDMENT
FIFTH AMENDMENT (the "Amendment"), dated as of March 31, 1998, among
TRISTAR AEROSPACE CO. (f/k/a Maple Leaf Aerospace, Inc.) ("Parent"),
AEROSPACE ACQUISITION CORP. ("Holdings"), TRISTAR AEROSPACE, INC. (as
successor by merger with Tri-Star Aerospace, Co.) (the "Borrower"), the
financial institutions party to the Credit Agreement referred to below (the
"Banks") and Bankers Trust Company, as Agent. All capitalized terms used
herein and not otherwise defined shall have the respective meanings provided
such terms in the Credit Agreement.
W I T N E S S E T H:
WHEREAS, Parent, Holdings, the Borrower, the Banks and the Agent are
parties to a Credit Agreement, dated as of September 19, 1996, (as amended
from time to time, the "Credit Agreement"); and
WHEREAS, the parties hereto wish to amend certain provisions of the
Credit Agreement as herein provided;
NOW, THEREFORE, it is agreed:
1. Section 11 of the Credit Agreement is hereby amended by (i) deleting the
definition of "Consolidated EBITDAR" contained therein and (ii) inserting the
following new definition in lieu thereof:
"Consolidated EBITDAR" shall mean, for any period Consolidated EBIT,
adjusted by (i) adding thereto the amount of all amortization and
depreciation, in each case that were deducted in arriving at Consolidated
EBIT for such period and (ii) excluding therefrom the effects of any
increase or decrease in inventory reserves to the extent such respective
change to inventory reserves decreased or increased, as the case may be,
Consolidated EBIT for the respective period.
<PAGE>
2. Section 11 of the Credit Agreement is hereby further amended by
deleting the reference to "or Excess Inventory" appearing in the definition
of "Consolidated Net Income" contained therein.
3. In order to induce the Banks to enter into this Amendment, each of
Parent, Holdings and the Borrower hereby represents and warrants that (i) the
representations, warranties and agreements contained in Section 7 of the
Credit Agreement are true and correct in all material respects on and as of
the Fifth Amendment Effective Date (as defined below) (except with respect to
any representations and warranties limited by their terms to a specific date,
which shall be true and correct in all material respects as of such date) and
(ii) there exists no Default or Event of Default on the Fifth Amendment
Effective Date; in each case both before and after giving effect to this
Amendment.
4. This Amendment is limited as specified and shall not constitute a
modification, acceptance or waiver of any other provision of the Credit
Agreement or any other Credit Document.
5. This Amendment may be executed in any number of counterparts and by
the different parties hereto on separate counterparts, each of which
counterparts when executed and delivered shall be an original, but all of
which shall together constitute one and the same instrument. A complete set
of counterparts shall be lodged with each of Holdings, Parent, the Borrower
and the Agent.
6. THIS AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES
HEREUNDER SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAW OF
THE STATE OF NEW YORK.
7. This Amendment shall become effective on the date (the "Fifth
Amendment Effective Date") when each of Parent, Holdings, the Borrower, and
each Bank shall have signed a copy hereof (whether the same or different
copies) and shall have delivered (including by way of facsimile) the same to
the Agent at the Notice Office.
8. From and after the Fifth Amendment Effective Date, all references
in the Credit Agreement and the other Credit Documents to the Credit
Agreement shall be deemed to be references to such Credit Agreement as
modified hereby.
* * * *
2
<PAGE>
IN WITNESSES WHEREOF, the parties hereto have caused their duly
authorized officers to execute and deliver this Amendment as of the date
first above written.
TRISTAR AEROSPACE, INC.
By: /s/ Doug Childress
-----------------------
Title: EVP, Secretary and
Treasurer
AEROSPACE ACQUISITION CORP.
By: /s/ Doug Childress
-----------------------
Title: EVP, Secretary and
Treasurer
TRISTAR AEROSPACE CO.
By: /s/ Doug Childress
-----------------------
Title: EVP, Secretary and
Treasurer
BANKERS TRUST COMPANY
By:
-----------------------
Title:
-3-
<PAGE>
IN WITNESSES WHEREOF, the parties hereto have caused their duly
authorized officers to execute and deliver this Amendment as of the date
first above written.
TRISTAR AEROSPACE, INC.
By:
-----------------------
Title:
AEROSPACE ACQUISITION CORP.
By:
-----------------------
Title:
TRISTAR AEROSPACE CO.
By:
-----------------------
Title:
BANKERS TRUST COMPANY
By: /s/ Gregory P. Shefrin
------------------------
Title: Gregory P. Shefrin
Vice President
-3-
<PAGE>
PRIME INCOME TRUST
By: /s/ Peter Gewirtz
----------------------
Title: Peter Gewirtz
Authorized Signatory
SENIOR DEBT PORTFOLIO
By: Boston Management and Research,
as Investment Advisor
By:
----------------------
Title:
KEYBANK N.A.
By:
----------------------
Title:
LASALLE NATIONAL BANK
By:
----------------------
Title:
MERRILL LYNCH SENIOR FLOATING
RATE FUND, INC.
By:
----------------------
Title:
-4-
<PAGE>
PRIME INCOME TRUST
By:
----------------------
Title:
SENIOR DEBT PORTFOLIO
By: Boston Management and Research,
as Investment Advisor
By: /s/ Payson F. Swaffield
------------------------
Title: Payson F. Swaffield
Vice President
KEYBANK N.A.
By:
----------------------
Title:
LASALLE NATIONAL BANK
By:
----------------------
Title:
MERRILL LYNCH SENIOR FLOATING
RATE FUND, INC.
By:
----------------------
Title:
-4-
<PAGE>
PRIME INCOME TRUST
By:
----------------------
Title:
SENIOR DEBT PORTFOLIO
By: Boston Management and Research,
as Investment Advisor
By:
----------------------
Title:
KEYBANK N.A.
By: /s/ Sharon F. Weinstein
------------------------
Title: Sharon F. Weinstein
Vice President
LASALLE NATIONAL BANK
By:
----------------------
Title:
MERRILL LYNCH SENIOR FLOATING
RATE FUND, INC.
By:
----------------------
Title:
-4-
<PAGE>
PRIME INCOME TRUST
By:
----------------------
Title:
SENIOR DEBT PORTFOLIO
By: Boston Management and Research,
as Investment Advisor
By:
----------------------
Title:
KEYBANK N.A.
By:
----------------------
Title:
LASALLE NATIONAL BANK
By: /s/ Steven Cohen
----------------------
Title: First Vice President
Steven Cohen
MERRILL LYNCH SENIOR FLOATING
RATE FUND, INC.
By:
----------------------
Title:
-4-
<PAGE>
MERRILL LYNCH PRIME RATE
PORTFOLIO
By:
----------------------
Title:
PILGRIM AMERICA PRIME RATE TRUST
By: /s/ Thomas C. Hunt
----------------------
Title: Thomas C. Hunt
Assistant Portfolio Manager
VAN KAMPEN AMERICAN CAPITAL
PRIME RATE INCOME TRUST
By:
----------------------
Title:
-5-
<PAGE>
MERRILL LYNCH PRIME RATE
PORTFOLIO
By:
----------------------
Title:
PILGRIM AMERICA PRIME RATE TRUST
By:
----------------------
Title:
VAN KAMPEN AMERICAN CAPITAL
PRIME RATE INCOME TRUST
By: /s/ Jeffrey W. Maillet
----------------------
Title: Jeffrey W. Maillet
Senior Vice President &
Director
-5-
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM TRISTAR
AEROSPACE CO. AND SUBSIDIARIES FORM 10-Q AS OF MARCH 31, 1998 AND FOR THE THREE
MONTHS AND SIX MONTHS ENDED MARCH 31, 1998 AND IS QUALIFIED IN ITS ENTIRETY BY
REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> SEP-30-1998
<PERIOD-START> OCT-01-1997
<PERIOD-END> JUN-30-1998
<CASH> 1,974
<SECURITIES> 0
<RECEIVABLES> 34,383
<ALLOWANCES> 477
<INVENTORY> 93,209
<CURRENT-ASSETS> 131,424
<PP&E> 3,544
<DEPRECIATION> 1,128
<TOTAL-ASSETS> 143,693
<CURRENT-LIABILITIES> 28,140
<BONDS> 69,000
0
0
<COMMON> 169
<OTHER-SE> 46,384
<TOTAL-LIABILITY-AND-EQUITY> 143,693
<SALES> 137,562
<TOTAL-REVENUES> 137,562
<CGS> 93,871
<TOTAL-COSTS> 21,991
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 3,788
<INCOME-PRETAX> 17,912
<INCOME-TAX> 6,843
<INCOME-CONTINUING> 11,069
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 11,069
<EPS-PRIMARY> 0.66
<EPS-DILUTED> 0.62
</TABLE>
