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 November 30, 1996 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 0-18352
----------------
INTERNATIONAL AIRLINE SUPPORT GROUP, INC.
-----------------------------------------
Delaware 59-2223025
------------------ -----------------
(State or other jurisdiction of (IRS Employer Identification No.)
incorporation or organization)
8095 NW 64th Street, Miami, FL 33166
------------------------------ -----------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (305) 593-2658
----------------
Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the Securities
Exchange Act of 1934 during the preceding 12 months (or for 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
--- ---
APPLICABLE ONLY TO CORPORATE ISSUERS:
Indicate the number of shares outstanding of each of the issuer's
classes of common stock, as of the latest practicable date.
The number of shares of the Company's common stock outstanding as
of January 15, 1997 was 2,395,095.
FORM 10-Q
INTERNATIONAL AIRLINE SUPPORT GROUP, INC. AND SUBSIDIARIES
INDEX
Page No.
--------
Part I FINANCIAL INFORMATION
Item 1. Financial Statements
Condensed Consolidated Balance Sheets 3
May 31, 1996 and November 30, 1996
Condensed Consolidated Statements of Operations 4
Three Months and Six Months
Ended November 30,1995 and 1996
Condensed Consolidated Statements of Cash Flows 5
Six Months Ended November 30, 1995 and 1996
Notes to Condensed Consolidated Financial 6
Statements
Item 2. Management's Discussion and Analysis
of Results of Operations and Financial Condition 8
Part II OTHER INFORMATION
Item 1. Legal Proceedings 11
Item 3. Defaults upon Senior Securities 11
Item 6. Exhibits and Reports on Form 8-K 11
Form 10-Q
International Airline Support Group, Inc. and Subsidiaries
CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
ASSETS
November 30,
May 31, 1996* 1996 (unaudited)
------------ ----------------
<S> <C> <C>
Current assets
Cash and cash equivalents $ 940,274 $ 622,968
Accounts receivable, net of
allowance for doubtful accounts
of approximately $735,000 at
May 31, 1996 and $826,000 at
November 30, 1996 2,014,691 1,683,662
Inventories 9,277,315 8,385,871
Deferred tax benefit - current,
net of valuation allowance
of $960,000 at May 31, 1996
and November 30, 1996 - -
Other current assets 68,798 139,413
---------- ----------
Total current assets 12,301,078 10,831,914
Property and equipment
Aircraft held for lease 2,974,760 4,031,416
Building and leasehold improvements 36,815 -
Machinery and equipment 972,507 838,779
--------- ---------
3,984,082 4,870,195
Accumulated depreciation 2,051,620 2,276,743
Land and building held for sale 750,000 750,000
--------- ---------
Property and equipment, net 2,682,462 3,343,452
Other assets
Deferred debt costs, net 762,431 630,202
Deferred tax benefit, net of
valuation allowance of
$3,011,000 at May 31, 1996 and
November 30, 1996 - -
Deferred restructuring fees 334,860 -
Deposits and other assets 51,500 -
--------- --------
Total other assets 1,148,791 630,202
--------- --------
$ 16,132,331 $ 14,805,568
================ ===============
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
Current liabilities
Current maturities of
long-term obligations $ 3,695,108 $ 833,002
Long-term obligations in
default classified as current 14,041,667 -
Accounts payable 2,171,496 1,766,248
Accrued expenses 3,233,231 2,095,169
---------- ---------
Total current liabilities 23,141,502 4,694,419
Long-term obligations, less current maturities
Credit Facility - revolver - 4,246,619
Credit Facility - term loan - 2,558,334
Other long-term obligations 406,760 28
--------- ---------
Total long-term obligations, less
current maturities 406,760 6,804,981
Commitments and contingencies
Stockholders' equity (deficit)
Preferred stock - $.001 par value;
authorized 2,000,000 shares;
0 shares outstanding at May 31, 1996
and November 30, 1996. - -
Common stock - $.001 par value;
authorized 20,000,000 shares;
issued and outstanding 149,695 shares
at May 31, 1996 and 2,395,095 shares
at November 30, 1996. 150 2,395
Additional paid-in capital 2,658,224 13,033,686
Accumulated deficit (10,074,305) (9,729,913)
------------ ----------
Total stockholders' equity (deficit) (7,415,931) 3,306,168
------------ ----------
$ 16,132,331 $ 14,805,568
================= =============
</TABLE>
*Condensed from audited Financial Statements
Form 10-Q
International Airline Support Group, Inc. and Subsidiaries
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
November 30, November 30,
1995 1996 1995 1996
----------------- ----------------- ----------------- -----------------
<S> <C> <C> <C> <C>
Revenues
Net sales $ 4,270,586 $ 4,803,439 $ 8,928,404 $ 8,842,111
Lease revenue 445,925 173,333 748,036 293,333
--------- --------- --------- ---------
Total revenues 4,716,511 4,976,772 9,676,440 9,135,444
Cost of sales 2,763,075 2,900,873 5,392,072 5,218,014
Selling, general and
administrative expenses 879,774 820,304 1,901,145 1,654,958
Financial restructuring costs 51,499 - 192,909 -
Provision for doubtful accounts - 50,282 - 91,440
Depreciation and amortization 209,544 252,326 430,505 418,138
--------- --------- --------- ---------
Total operating costs 3,903,892 4,023,785 7,916,631 7,382,550
--------- --------- --------- ---------
Income from operations 812,619 952,987 1,759,809 1,752,894
Interest expense 505,676 417,314 1,036,394 906,193
Interest and other income (1,605) (10,046) (3,979) (43,086)
------- ------- -------- ---------
Earnings before income taxes 308,548 545,719 727,394 889,787
Provision for income taxes 4,250 14,799 4,250 14,799
------- ------- ------- -------
Net earnings before extraordinary
loss on debt restructuring 304,298 530,920 723,144 874,988
Extraordinary loss on debt
restructuring - (530,596) - (530,596)
------- -------- ------- -------
Net earnings $ 304,298 $ 324 $ 723,144 $ 344,392
=============== ================= =============== ===============
Per share data:
Primary earnings per
common and common equivalent
share before loss on debt
restructuring $ 2.03 $ 0.32 $ 4.83 $ 0.97
Extraordinary loss on
debt restructuring - (0.32) - (0.59)
------- ------- -------- --------
Primary earnings per share $ 2.03 $ 0.00 $ 4.83 $ 0.38
=============== ================= =============== ===============
Weighted average shares
outstanding used in
primary calculation 149,695 1,646,628 149,695 $ 898,162
=============== ================= =============== ===============
Fully-diluted earnings
per common and common
equivalent share before
loss on debt
restructuring $ 2.03 $ 0.32 $ 4.64 $ 0.97
Extraordinary loss on
debt restructuring - (0.32) - (0.59)
--------------- ----------------- --------------- ---------------
Fully-diluted earnings
per share $ 2.03 $ 0.00 $ 4.64 $ 0.38
=============== ================= =============== ===============
Weighted average shares
outstanding used in
fully diluted calculation 149,695 1,646,628 242,287 898,162
=============== ================= =============== ===============
</TABLE>
Form 10-Q
International Airline Support Group, Inc. and Subsidiaries
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
<TABLE>
<CAPTION>
Six Months ended
November 30,
1995 1996
--------------- ---------------
<S> <C> <C>
Cash flows from operating activities:
Net earnings $ 723,144 $ 344,392
Adjustments to reconcile net
earnings to net cash provided
by (used in) operating
activities:
Depreciation and
amortization 430,505 418,138
Provision for doubtful
accounts - 91,440
Changes in assets and
liabilities (997,451) 530,816
------------- --------------
Total adjustments (566,946) 1,040,394
Net cash provided
by operating activities 156,198 1,384,785
Cash flows from investing activities:
Capital equipment additions (625,416) (35,457)
Increase in restricted cash - (510,368)
-------------- --------------
Net cash used in
investing activities (625,416) (545,825)
Cash flows from financing activities:
Repayments of debt obligations (21,055) (7,310,506)
Borrowing of debt obligations - 6,804,953
Payment of deferred
restructuring costs - (560,767)
Payment of deferred debt issue costs - (600,314)
--------------- ---------------
Net cash used in
financing activities (21,055) (1,666,634)
--------------- ---------------
Net decrease in cash (490,273) (827,674)
Cash at beginning of period 848,331 940,274
--------------- ---------------
Cash at end of period $ 358,058 $ 112,599
=============== ===============
</TABLE>
The accompanying notes are an integral part of these condensed
financial statements.
INTERNATIONAL AIRLINE SUPPORT GROUP, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
1. In the opinion of management, the accompanying unaudited
condensed consolidated financial statements contain adjustments
(consisting only of normal and recurring adjustments) necessary to
present fairly International Airline Support Group, Inc.'s condensed
consolidated balance sheets as of May 31, 1996 and November 30, 1996,
the condensed consolidated statements of operations for the three and
six months ended November 30, 1995 and 1996, and the condensed
consolidated statements of cash flows for the six months ended
November 30, 1995 and 1996.
The accounting policies followed by the Company are described in
the May 31, 1996 financial statements.
The results of operations for the three and six months ended
November 30, 1996 are not necessarily indicative of the results to be
expected for the full year.
2. Inventories consisted of the following:
May 31,1996 November 30,1996
Aircraft parts $ 7,938,049 $ 7,850,710
Aircraft available for sale 1,339,266 535,161
--------- ---------
$ 9,277,315 $ 8,385,871
========= =========
At November 30, 1996, approximately 99% of the ending inventory
(including aircraft held for sale) was costed under the specific
identification method, and the remaining 1% was costed as part of
pools of parts acquired through whole aircraft purchases.
3. On October 3, 1996, the Company completed a restructuring of its
capital structure (the "Restructuring"). Pursuant to the
Restructuring, the Company effected a 1-for-27 reverse split of its
common stock, $.001 par value per share (the "Common Stock"); issued
approximately 2,245,400 shares of its Common Stock, after giving
effect to the reverse split, in exchange for the entire $10,000,000
principal amount outstanding and related accrued interest of its 8%
Convertible Debentures due November 30, 2003 (the "Debentures"); and
redeemed the entire $7,700,000 principal amount outstanding of its 12%
Senior Notes due July 17, 1997 (the "Senior Notes") with the proceeds
of an advance under a credit agreement entered into on October 3 (the
"Credit Agreement"). Consummation of the Restructuring cured all
defaults with respect to the Debentures and the Senior Notes.
All references to the number of common shares and per common share
amounts throughout the financial statements have been restated to
reflect the reverse split.
INTERNATIONAL AIRLINE SUPPORT GROUP, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
4. Primary earnings per share is computed for the three months and
the six months ended November 30, 1995 and 1996 by dividing net
earnings by the weighted average number of common shares outstanding
and common stock equivalents. Stock options and warrants are
considered common stock equivalents unless their inclusion would be
antidilutive. For the purpose of computing common stock equivalents
for stock options and warrants, the modified treasury stock method
was not used as the effect would be anti-dilutive. The Debentures
are not considered common stock equivalents for the purpose of
computing primary earnings per share as the effective yield on the
securities exceeded 66-2/3% of the average Aa corporate bond rate at
the time of issuance.
Fully diluted earnings per share is computed for the three
months and the six months ended November 30, 1995 and 1996 as if the
Debentures were converted into common stock as of the beginning of
the period. Stock options and warrants are not considered common
stock equivalents for the purpose of computing fully diluted earnings
per share as the effect would be anti-dilutive under the modified
treasury stock method.
5. Supplemental Cash Flow Disclosures:
Cash payments for interest were $626,000 and $712,000 for the six
months ended November 30, 1995 and 1996, respectively.
INTERNATIONAL AIRLINE SUPPORT GROUP, INC. AND SUBSIDIARIES
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS
OF RESULTS OF OPERATION AND FINANCIAL CONDITION
The following is management's discussion and analysis of certain
significant factors which have affected the Company's operating
results and financial position during the periods included in the
accompanying condensed consolidated financial statements.
RESULTS OF OPERATIONS:
Revenues
Parts sales (excluding the sale of aircraft and engines) for the
three and six months ended November 30, 1996 were $4.8 million and
$8.8 million, respectively, compared to $4.1 million and $7.9 million,
respectively, during the three and six months ended November 30, 1995.
Aircraft and engine sales were $180,000 and $1.1 million,
respectively, during the three and six months ended November 30, 1995.
No sales of aircraft or engines occurred during the three or six
months ended November 30, 1996. Aircraft and engine sales are
unpredictable transactions and may fluctuate significantly from period
to period, dependent, in part, upon the Company's ability to purchase
aircraft or engines at attractive prices and resell them within a
relatively brief period of time, as well as the overall market for
aircraft and engines. Lease revenue decreased to $173,000 and
$293,000 during the three and six months ended November 30, 1996,
respectively, compared to $446,000 and $748,000, during the three and
six months ended November 30, 1995, respectively. The decrease in
lease revenues was attributable to the termination of a lease prior to
the commencement of the Company's 1997 fiscal year. The increase in
parts sales for the three months ended November 30, 1996 offset the
decrease in aircraft and engine sales and lease revenue, and as a
result, total revenue during the three months ended November 30, 1996
increased 5.5% to $5.0 million, from $4.7 million during the three
months ended November 30, 1995. The increase in parts sales for the
six months ended November 30, 1996 was insufficient to offset the
decrease in aircraft and engine sales and lease revenue, and, as a
result, total revenues during the six months ended November 30, 1996
decreased 5.6% to $9.1 million, from $9.7 million during the six
months ended November 30, 1995.
In addition, revenues during the six months ended November 30,
1995 were increased as a result of the settlement of certain disputes
with a customer. Pursuant to the settlement, the customer paid the
Company $660,000 and the Company canceled a note receivable from the
customer. The Company also released all claims it had against the
customer, which included among other things, claims for the purchase
price of parts purchased by the customer on open account or pursuant
to a consignment arrangement. The customer released certain claims it
had against the Company as part of the settlement. The transaction
resulted in a net gain to the Company of approximately $345,000,
consisting of the excess of cash received over the net carrying value
of the note receivable and cost of the inventory. The Company
recorded as net sales the cost of the inventory plus the amount of the
net gain.
INTERNATIONAL AIRLINE SUPPORT GROUP, INC. AND SUBSIDIARIES
Cost of Sales
Cost of sales increased 5.0% from $2.8 million during the three
months ended November 30, 1995 to $2.9 million during the three months
ended November 30, 1996, primarily as a result of higher revenues.
Cost of sales decreased 3.2% from $5.4 million during the six months
ended November 30, 1995 to $5.2 million during the six months ended
November 30, 1996, primarily as a result of lower aircraft and engines
sales. As a percentage of total revenues, cost of sales for the three
and six months ended November 30, 1995 was 59% and 56%, respectively,
compared to 58% and 57% during the three and six months ended November
30, 1996, respectively.
Selling, General and Administrative Expenses
Selling, general and administrative expenses decreased from
$880,000 and $1.9 million during the three and six months ended
November 30, 1995, respectively, to $820,000 and $1.7 million during
the three and six months ended November 30, 1996, respectively.
Financial Restructuring Costs
Included in financial restructuring costs during the six months
ended November 30, 1995 were $192,909 of legal, accounting and other
consulting fees in connection with the Company's debt restructuring
activities. Such costs were subsequently capitalized as deferred
restructuring fees during the fourth fiscal quarter ended May 31,
1996. In connection with the successful completion of the
Restructuring on October 3, 1996, as described in Note 3 of Notes to
Condensed Consolidated Financial Statements, deferred restructuring
costs were charged to additional paid-in capital, as of the closing
date of the Restructuring.
Depreciation and Amortization
Depreciation and amortization for the three and six months ended
November 30, 1995 totaled $210,000 and $431,000, respectively,
compared to $252,000 and $418,000 for the three and six months ended
November 30, 1996, respectively.
Interest Expense
Interest expense for the three and six months ended November 30, 1995
was $507,000 and $1.0 million, respectively, compared to $417,000 and
$906,000 for the three and six months ended November 30, 1996,
respectively. The decrease in interest expense from 1995 to 1996 was
due to a net reduction in total debt outstanding during this period
from $20.3 million at November 30, 1995 to $7.6 million at November
30, 1996.
INTERNATIONAL AIRLINE SUPPORT GROUP, INC. AND SUBSIDIARIES
Income Taxes
The Company recorded an income tax provision (resulting from
alternative minimum tax rules) of $4,250 during the three and six
months ended November 30, 1995. During the three and six months ended
November 30, 1996, the Company recorded an income tax provision of
$14,799.
Loss on Debt Restructuring
In connection with the Restructuring, the Company recorded an
extraordinary loss of $530,596 relating to the exchange of the
Debentures.
Liquidity and Capital Resources
On October 3, 1996, the Company completed a Restructuring of the
Senior Notes and Debentures. The terms of the Restructuring and
impact on the Company's liquidity and capital resources are discussed
in the Company's Proxy Statement/Prospectus filed with the Securities
and Exchange Commission on August 29, 1996.
Concurrently with the Restructuring, the Company entered into the
Credit Agreement, which provides for a $3 million term loan and up to
an $11 million revolving credit (collectively referred to as the
("Credit Facility"). The Credit Facility is secured by substantially
all of the assets of the Company and availability of amounts for
borrowing is subject to certain limitations and restrictions. Such
limitations and restrictions are discussed in the Company's Proxy
Statement/Prospectus filed with the Securities and Exchange Commission
on August 29, 1996.
At November 30, 1996, the Company was permitted to borrow up to an
additional $4.3 million pursuant to the revolving credit facility.
The Company believes that amounts available to be borrowed pursuant to
the Credit Agreement and its working capital will be sufficient to
meet the requirements of the Company's business for the foreseeable
future. The Company had no material commitments for capital
expenditures as of November 30, 1996.
INTERNATIONAL AIRLINE SUPPORT GROUP, INC. AND SUBSIDIARIES
PART II - OTHER INFORMATION
Item 1. LEGAL PROCEEDINGS
The Company is from time to time subject to legal proceedings and
claims that arise in the ordinary course of its business. On the date
hereof, no such proceedings are pending and no such claims have been
asserted.
Item 3. DEFAULTS UPON SENIOR SECURITIES
Prior to the Restructuring, the Company was in default in the
payment of principal and certain payments of interest on the Senior
Notes and was in default in the payment of interest on the Debentures.
On October 3, 1996, the Company completed the Restructuring.
Pursuant to the Restructuring, the Company effected a 1-for-27 reverse
split of its Common Stock; issued approximately 2,245,400 shares of
its Common Stock, after giving effect to the reverse split, in
exchange for the entire $10,000,000 principal amount outstanding of
the Debentures; and redeemed the entire $7,700,000 principal amount
outstanding of the Senior Notes with the proceeds of an advance under
the Credit Agreement. Consummation of the restructuring cured all
defaults with respect to the Debentures and the Senior Notes.
Item 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
Page Number or
Exhibit Number Description Method of Filing
- -------------- ----------- ----------------
2.1.1 Form of Standstill Incorporated by reference
Agreement dated July 8, to exhibit 2.1.1 to the
1996 among the Registrant Company's Registration
and the holders of the Statement on Form S-4
Registrant's 12% Senior (File No. 333-08065),
Secured Notes due 1997 filed July 12,1996
who are signatories
thereto.
2.1.2 Form of Standstill Incorporated by reference
Agreement dated July 11, to Exhibit 2.1.2 to the
1996 among the Registrant Company's Annual Report
and the holders of the on form 10-K for the fiscal
Registrant's 12% Senior year ended May, 31 1996,
Secured Notes due 1997 as amended (the "1996 Form
who are signatories 10K").
thereto.
2.2 Form of Warrant Agreement Incorporated by reference
Amendment No. 1, dated as to Exhibit 2.2 to the
of July 9, 1996, among Company's Registration
the Registrant and the Statement on Form S-4
holders of the Warrants, (File No. 333-08065),
dated July 17, 1992, who filed on July 12, 1996
are signatories thereto.
2.3 Letter, dated June 7, Incorporated by reference
1996, from BNY Financial to Exhibit 2.3 to the
Corporation to the Company's Registration
Registrant with attached Statement on Form S-4
Term Sheet. (File No. 333-08065),
filed on July 12, 1996.
2.4 Credit Agreement between Incorporated by reference
BNY Financial Corporation to Exhibit 2.4 to the
and the Registrant. 1996 Form 10-K.
3.1 Amended and Restated Incorporated by reference
Certificate of to Exhibit 3.1 to the
Incorporation of the 1996 Form 10-K.
Registrant.
3.2 Restated and Amended Incorporated by reference
Bylaws of the Registrant, to Exhibit 3.2 to the
as amended. 1996 Form 10-K.
4.1 Specimen Common Stock Incorporated by reference
Certificate. to Exhibit 4.1 to the
1996 Form 10-K.
4.2 Form of Warrant issued to Incorporated by reference
holders of Senior Notes. to Exhibit 4-A to the
Company's form 8-K dated
July 17, 1992 (the "July
1992 Form 8-K").
4.3 Form of 8% Convertible Incorporated by reference
Subordinated Debentures to Exhibit 4.3 to the
due August 31, 2003. 1993 Form 10-K.
4.4 Form of 12% Senior Incorporated by reference
Secured Notes. to Exhibit 4.4 to the
Company's Registration
Statement on Form S-4
(File No. 333-08065), filed
on July 12, 1996.
10.1.1 Employment Agreement, Incorporated by reference
dated as of December 1, to Exhibit 10.1.1 to the
1995, between the 1996 Form 10-K.
Registrant and Alexius A.
Dyer III, as amended on
October 3, 1996.
10.1.2 Employment Agreement, Incorporated by reference
dated as of October 3, to Exhibit 10.1.2 to the
1996, between the 1996 Form 10-K.
Registrant and George
Murnane III.
10.2.1 1996 Long-Term Incentive Incorporated by reference
and Share Award Plan. to Appendix B to the Proxy
Statement/Prospectus included
in the Company's Registration
Statement on Form S-4 (File
No. 333-08065).
10.2.2 401(k) Plan. Incorporated by reference
to Exhibit 10-H to the
Company's Annual Report
on Form 10-K for the fiscal
year ended May 31, 1992
(the "1992 Form 10-K").
10.2.3 Bonus Plan. Incorporated by reference
to Exhibit 10.2.4 to the
1992 Form 10-K.
10.2.4 Cafeteria Plan. Incorporated by reference
to Exhibit 10.2.5 of the
1993 Form 10-K.
10.2.5 Form of Option Incorporated by reference
Certificate (Employee to Exhibit 10.2.5 to the
Non-Qualified Stock 1996 Form 10-K.
Option).
10.2.6 Form of Option Incorporated by reference
Certificate (Director to Exhibit 10.2.6 to the
Non-Qualified Stock 1996 Form 10-K.
Option).
10.2.7 Form of Option Incorporated by reference
Certificate (Incentive to Exhibit 10.2.7 to the
Stock Option). 1996 Form 10-K.
10.7 Settlement Stipulation, Incorporated by reference
dated January 31, 1995, to Exhibit 10.7.3 to the
among Admark Company's Annual Report
International, Ltd., in Form 10-K for the
Plaintiff and Norville fiscal year ended
Trading Company Ltd., May 31, 1995 (the "1995
International Airline Form 10-K").
Support Group, Inc., and
Richard R. Wellman,
Defendants.
10.8 Purchase Agreement, dated Incorporated by reference
January 1995, among to Exhibit 10.1 to the
International Airline Company's 10-Q/A for the
Support Group, Inc., quarter ended August 31,
Richard R. Wellman, Lynda 1994.
Wellman, and Custom Air
Holdings, Inc., including
as an exhibit the
"General Proxy" executed
by Richard R. Wellman and
Lynda Wellman.
10.10 Assignment and Assumption Incorporated by reference
Agreement, dated January to Exhibit 10.2 to the
31, 1995, between Registrant's Form 10-Q/A
International Airline for the quarter ended
Service Center, Inc. and August 31, 1994.
Express One International, Inc.
10.11 Notice of Payment Incorporated by reference
Blockage, dated May 25, to Exhibit 10.11 to the
1995. 1995 Form 10-K.
10.12 Form of Engagement Letter Incorporated by reference
dated February 16, 1996, to Exhibit 10.12 to the
between the Registrant Company's Registration
and Kirkland Messina, Statement on Form S-4
Inc. (filed herewith). (File No. 333-08065),
filed on July 12, 1996.
10.14 Commission Agreement Incorporated by reference
dated December 1, 1995 to Exhibit 10.14 to the
between the Registrant 1996 Form 10-K.
and J.M. Associates, Inc.
10.15 Aircraft Parts Purchase Incorporated by reference
Agreement, dated May 16, to Exhibit 10.15 to the
1996, between Paxford Company's Registration
Int'l, Inc. and the Statement on Form S-4
Registrant. (File No. 333-08065).
11 Statement regarding Incorporated by reference
computation of per share to Exhibit 11 to the 1996
earnings. Form 10-K.
21 Subsidiaries. Incorporated by reference
to Exhibit 21 to the 1996
Form 10-K.
27 Financial Data Schedule. Page no. 19
(b) Reports on Form 8-K
The Company filed a Current Report on Form 8-K on July 12,
1996. The date of the report was July 12, 1996. The report
was with respect to Item 5.
INTERNATIONAL AIRLINE SUPPORT GROUP, INC. AND SUBSIDIARIES
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 thereunto duly authorized.
INTERNATIONAL AIRLINE SUPPORT GROUP, INC.
- -----------------------------------------
(Registrant)
/s/George Murnane III January 15, 1997
- --------------------- ----------------
George Murnane III Date
Executive Vice President and
Chief Financial Officer
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> MAY-31-1997
<PERIOD-END> NOV-30-1996
<CASH> 622,968
<SECURITIES> 0
<RECEIVABLES> 2,509,662
<ALLOWANCES> 826,000
<INVENTORY> 8,385,871
<CURRENT-ASSETS> 10,831,914
<PP&E> 5,620,195
<DEPRECIATION> 2,276,743
<TOTAL-ASSETS> 14,805,568
<CURRENT-LIABILITIES> 4,694,419
<BONDS> 6,804,981
<COMMON> 2,395
0
0
<OTHER-SE> 3,306,168
<TOTAL-LIABILITY-AND-EQUITY> 14,805,568
<SALES> 8,842,111
<TOTAL-REVENUES> 9,135,444
<CGS> 5,218,014
<TOTAL-COSTS> 7,382,550
<OTHER-EXPENSES> 889,787
<LOSS-PROVISION> 91,440
<INTEREST-EXPENSE> 906,193
<INCOME-PRETAX> 889,787
<INCOME-TAX> 14,799
<INCOME-CONTINUING> 874,988
<DISCONTINUED> 0
<EXTRAORDINARY> 530,596
<CHANGES> 0
<NET-INCOME> 344,392
<EPS-PRIMARY> .38
<EPS-DILUTED> .36
</TABLE>
