LAKE FOREST, Calif.--(BUSINESS WIRE)--May 21, 1999--Aviation Distributors Inc. (OTC BB:ADIN), one of the 10 largest aircraft part redistributors and inventory management service providers to major commercial airlines worldwide, Friday reported its results from operations for the three months ended March 31, 1999. Revenues for the three months ended March 31, 1999, were $7,711,111, reflecting a decrease of 13 percent when compared with revenues of $8,870,292 for the same period a year ago. The company recorded a net loss for the quarter of $148,966, or 5 cents per basic and diluted share, representing an 83 percent decrease in the net loss of $888,317, or 28 cents per basic and diluted share, recorded for the prior year. As stated in a previous announcement regarding operating results for the year 1998, the decrease in revenues in the first quarter, when compared with the prior-year period, are the direct result of the company's shortage in cash availability while going through a restructuring and addressing the legal issues, including a lawsuit brought against the company which has since been settled. In contrast with the net loss recorded for the quarter, which has been reduced by 83 percent from the prior-year period, the company posted an operating profit of $243,008 as compared with an operating loss of $322,354. The increase in operating income is attributed to a dramatic reduction in nonrecurring expenses related to the settling of a class-action lawsuit, and auditing and accounting expenses related to the company's restating and preparing financial reports for 1996 and 1997. Also contributing to the increase in operating profit for the quarter was the 21 percent decrease in selling, general and administrative expenses. Revenues for the quarter were derived from sales of distributed services and company-owned inventory. Distributed services are defined as outside sourcing of product. Sales from distributed services represented approximately 93.8 percent of total revenues for the year as compared with 77.5 percent a year ago. Sales from company-owned inventory represented approximately 6.2 percent of total revenues as compared with 22.5 percent a year ago. Commenting on the announcement, Saleem Naber, president and chief executive officer of the company, remarked: "We believe the first-quarter results reflect the `turning point' we have been striving for and speaking about publicly over the past several months. Now with the burdensome nonrecurring expenses significantly reduced and management's cost control measures further reducing SGA, we expect continued improvements toward profitability in 1999." Aviation Distributors is one of the world's 10 largest aircraft part redistributors and inventory management service providers to major commercial airlines worldwide with agents in the United States, United Kingdom, throughout Europe, Australia, India, Jordan, Indonesia and Chile, with its headquarters in Lake Forest. Statements in this news release that relate to future plans, financial results or projections, events or performance are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The company's actual results and financial position could differ materially from those anticipated in the forward-looking statements as a result of a number of factors, including but not limited to, the price and availability of aircraft parts and other materials, successful execution of the company's expansion plans, impact of competition, the availability of additional financing and other risks and uncertainties described fully in the company's Form 10-KSB filed with the Securities and Exchange Commission. Copies of the most recent 10-KSB are available from Aviation Distributors' Investor Relations department. AVIATION DISTRIBUTORS, INC. SELECTED FINANCIAL INFORMATION (Unaudited Results) OPERATIONS DATA: Three Months Ended March 31, 1999 1998 Total net sales $ 7,711,111 $ 8,870,292 Cost of sales 6,040,650 6,891,389 Gross profit 1,670,461 1,978,903 Selling, general & administrative 1,409,710 1,792,372 Nonrecurring expenses 17,743 508,885 Income (loss) from operations 243,008 (322,354) Interest income (expense), net (393,061) (554,008) Other income (expense), net 1,087 (11,955) Income (loss) before provision for income taxes (148,966) (888,317) Provision for income taxes -- -- Net income (loss) $ (148,966) $ (888,317) Net income (loss) per basic and diluted share $ (0.05) $ (0.28) Weighted average common shares outstanding 3,179,000 3,165,000 AVIATION DISTRIBUTORS, INC. SELECTED FINANCIAL INFORMATION (Unaudited Results) BALANCE SHEET DATA: March 31, December 31, 1999 1998 Restricted cash $ 7,462 $ 8,171 Accounts receivable, net 7,077,038 4,767,470 Notes receivable, current portion 805,499 1,276,750 Inventories 9,223,332 9,356,386 Other current assets 1,036,780 1,093,182 Total current assets 18,150,111 16,501,959 Property and equipment, net 602,906 645,907 Other assets 439,285 438,069 Total Assets $ 19,192,302 $ 17,585,935 Accounts payable $ 2,756,970 $ 3,120,953 Lines of credit 15,631,955 12,791,538 Long-term debt, current portion 1,105,033 1,911,057 Other current liabilities 1,327,186 1,235,229 Current liabilities 20,821,144 19,058,777 Other liabilities 133,961 620,995 Shareholders equity (deficit) (1,762,803) (2,093,837) Total liabilities and shareholder equity $ 19,192,302 $ 17,585,935  