Limco-Piedmont Inc. Reports Results for the Quarter and Year Ended December 31, 2007

TULSA, Okla., March 13 /PRNewswire-FirstCall/ -- Limco-Piedmont Inc. NASDAQ: LIMC today announced that revenues for the year ended December 31, 2007 reached $69.8 million, an 18.3% increase from $59.0 million reported for the year ended December 31, 2006. Revenues for the fourth quarter were $14.9 million, a 19.9% decrease from the $18.6 million reported in the fourth quarter of 2006. Impacting the Company's results in the fourth quarter of 2007 was the closure of Limco-Airepair's MRO facility for one week due to an ice storm and a reduced level of parts sales.

Revenues from our two principal lines of business for the three month periods and years ended December 31, 2007 and 2006 were as follows:

                  Three months ended December 31,  Year ended December 31,
                    2007            2006            2007           2006
                        % of            % of            % of            % of
                        Total           Total           Total           Total
                Reve-   Reve-   Reve-   Reve-   Reve-   Reve-   Reve-   Reve-
                nues    nues    nues    nues    nues    nues    nues    nues
                                         (in thousands)
    Revenues:
    MRO
     services  $11,515  77.4%  $11,313  60.7%  $49,392  70.8% $43,824   74.3%
    Parts
     services    3,361  22.6%    7,237  39.3%   20,384  29.2%  15,197   25.7%
    Total
     revenues  $14,876 100.0%  $18,640 100.0%  $69,776 100.0% $59,021  100.0%

Operating income in the year ended December 31, 2007 increased by $577,000 to $7.9 million from $7.4 million in the year ended December 31, 2006. Operating income was negatively impacted in 2007 as a result of increased general and administrative expenses. General and administrative expenses increased to $6.9 million for the year ended December 31, 2007 from $3.9 million for the year ended December 31, 2006, an increase of 76.9%, principally as a result of increased professional fees arising from being a public company, bonus payments paid in connection with our initial public offering, increased stock-based compensation expenses, research-development costs for products which we have not made any sales to date, increased compensation expenses attributable to executives that were hired or promoted to manage our increased level of operations and increased insurance benefit costs.

Operating income for the quarter ended December 31, 2007 declined to $838,000 from $2.1 million for the quarter ended December 31, 2006, a decrease of $1.3 million or 60.1%.

GAAP net income for the year ended December 31, 2007 was $5.2 million, or $0.48 per basic share and $0.47 per diluted share, compared with $4.3 million, or $0.48 per basic and diluted share, in the year ended December 31, 2006.

GAAP net income for the quarter ended December 31, 2007 was $789,000, or $0.06 per basic and diluted share, compared with $1.3 million, or $0.14 per basic and diluted share, in the quarter ended December 31, 2006.

Non-GAAP net income for the year ended December 31, 2007 was $6.2 million, or $0.57 per basic and diluted share, compared with $4.9 million, or $0.54 per basic and diluted share, in the year ended December 31, 2006.

Non-GAAP net income for the quarter ended December 31, 2007 was $1.0 million, or $0.08 per basic and diluted share, compared with $1.5 million, or $0.16 per basic and diluted share, in the quarter ended December 31, 2006.

At December 31, 2007, the Company had $5.0 million of cash and $28.8 million of short term investments consisting of auction rate tax exempt securities. Subsequent to year end, management determined to liquidate the Company's holdings of variable rate debt securities. In January and February 2008 approximately 90% of the auction rate tax-exempt securities portfolio was sold, and the proceeds were reinvested in high-grade corporate debt, governmental debt instruments and money market funds.

Shaul Menachem, Chief Executive Officer, commented: "We believe that 2007 was a pivotal year for Limco-Piedmont Inc. We completed a successful IPO in July of this year, increased our revenues by over 18% and our net income grew by 20%. Moreover, we have taken various steps to establish an infrastructure that will foster our growth in the years ahead. With the proceeds of our initial public offering, we extinguished our debt and made significant capital expenditures at our facilities that will allow us to provide additional MRO services and to deliver our services more efficiently and effectively. We have almost $34 million dollars in cash, cash equivalents and short term investments that will allow us to pursue acquisition opportunities. We also brought on two seasoned executives to run our Limco Airepair and Piedmont Aviation subsidiaries.

We named Bob Koch as President of our Limco Airepair Inc. subsidiary. Bob is a veteran of the aviation heat transfer industry, has over 20 years of experience in management, engineering, business development, quality control, operations, supply chain management, IT and customer support. Bob was employed for almost 20 years by the Lori Heat Transfer operations of Honeywell Aerospace and its predecessor company. We also named Mr. Udi Netivi as President of our Piedmont Aviation subsidiary. Udi has over 30 years experience in the aerospace industry, serving in various managerial roles with Israel Aircraft Industries. Mr. Netivi served as Production Manager, Business Development and Marketing Director, and General Manager of several IAI subsidiaries and most recently as Business Development and Marketing Director of IAI International.

Our fourth quarter results, which were disappointing, reflect the closure of our Limco Airepair facility for a week due to an ice storm that paralyzed the Tulsa area and a decline in our parts sales, which are subject to a great deal of volatility. We expect less volatility in our parts business in 2008 due to our receipt of a long-term contract in late 2007 that is expected to provide between $5 to $8 million in parts revenues this year.

Last week we entered into a memorandum of understanding with Air Wisconsin to provide MRO services on a long-term basis for the landing gear of its fleet of 70 CRJ-200 regional jets. Air Wisconsin is the largest privately held regional jet airline in the U.S., operating its fleet of CRJ-200 regional jets as US Airways Express. We expect to enter a definitive agreement with Air Wisconsin in the next few months. We are very excited to have been chosen to provide landing gear MRO services for Air Wisconsin, a leading regional airline. We won this contract after an in depth award process in which we competed against other leading MRO providers. We believe that this contract reaffirms our position as a leading MRO services provider and is a testament to our capabilities and the hard work of our team that was involved in the bidding process."

Mr. Menachem concluded by saying, "We are excited about our prospects for 2008 and the future and believe we have established a strong foundation for future growth."

Use of Non-GAAP Financial Information

In addition to financial results presented on a GAAP basis, the Company has provided non-GAAP measures of operating income, net income and earnings per share. For purposes of this release, non-GAAP operating expenses, net income and earnings per share exclude share based compensation expense under SFAS 123R, an IPO related bonus, phantom option compensation, amortization of acquired intangible assets, acquisition related inventory adjustments, and income tax benefits. The Company believes that presentation of non- GAAP financial measures may provide investors with additional meaningful and relevant financial information. Management believes the non-GAAP measures help indicate trends in the Company's business, and management uses the non-GAAP measures to plan and forecast future periods. Non-GAAP information should not be considered superior to or as a substitute for GAAP measures or data prepared in accordance with GAAP. Furthermore, non-GAAP information may not be comparable across companies, as other companies may use different non-GAAP measures. Reconciliation of the non-GAAP measures to the most comparable GAAP measures are provided in the schedules attached to this release.

About Limco-Piedmont Inc.

Limco-Piedmont Inc. provides maintenance, repair and overhaul, or MRO, services and parts supply services to the aerospace industry. Limco-Piedmont's four Federal Aviation Administration certified repair stations provide aircraft component MRO services for airlines, air cargo carriers, maintenance service centers and the military. Limco-Piedmont specializes in MRO services for components of aircraft, such as heat transfer components, auxiliary power units, propellers, landing gear and pneumatic ducting. In conjunction with Limco-Piedmont's MRO services, Limco-Piedmont is also an original equipment manufacturer of heat transfer equipment for airplane manufacturers and other related products. Limco-Piedmont's parts services division offers inventory management and parts services for commercial, regional and charter airlines and business aircraft owners.

Safe Harbor for Forward-Looking Statements

This press release contains forward-looking statements that are subject to risks and uncertainties. Factors that could cause actual results to differ materially from these forward-looking statements include, but are not limited to, general business conditions in the airline industry, changes in demand for our services and products, the timing and amount or cancellation of orders, the price and continuity of supply of component parts used in our operations, and other risks detailed from time to time in Limco-Piedmont's filings with the Securities Exchange Commission, including its Quarterly Report on Form 10- Q. These documents contain and identify other important factors that could cause actual results to differ materially from those contained in our projections or forward-looking statements. Stockholders and other readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. We undertake no obligation to update publicly or revise any forward-looking statement.

                         CONSOLIDATED BALANCE SHEETS
                    (In thousands, except per share data)


                                                          December 31,
                                                       2007          2006
                ASSETS
    Current Assets:
      Cash and cash equivalents                       $5,039         $4,309
      Short-term investments                          28,806            ---
      Accounts receivable (net of allowance for
       doubtful accounts of $140 and $245 at
       December 31, 2007 and 2006, respectively)       9,328          8,188
      Other accounts receivable and prepaid expenses   1,481            727
      Inventories                                     16,391         14,611

        Total current assets                          61,045         27,835

    Property, plant and equipment, net                 5,169          2,920
    Intangible assets, net                             1,709          2,183
    Goodwill                                           4,780          4,780
    Other long-term assets                               ---            294

        Total assets                                 $72,703        $38,012

        LIABILITIES AND SHAREHOLDERS' EQUITY
    Current Liabilities:
      Current maturities of long-term debt              $---         $4,000
      Accounts payables                                5,084          6,525
      Parent company payables                          1,762          3,122
      Other accounts payable and accrued expenses      1,568          2,838
        Total current liabilities                      8,414         16,485

    Long-Term Liabilities:
      Long-term debt, related party                      ---          4,000
      Deferred income taxes                              404            436

      Total long-term liabilities                        404          4,436
      Total liabilities                                8,818         20,921

    Commitments and contingencies

    Shareholders' Equity:
      Common stock, $0.01 par value; 25,000 shares
       authorized; 13,205 and 9,000 shares issued
       and outstanding at December 31, 2007 and 2006,
       respectively                                      132             90
      Additional paid-in capital                      49,004          7,446
      Retained earnings                               14,749          9,555
        Total shareholders' equity                    63,885         17,091

        Total liabilities and shareholders' equity   $72,703        $38,012



                     LIMCO-PIEDMONT INC. AND SUBSIDIARIES

                 CONDENSED CONSOLIDATED STATEMENTS OF INCOME
                    (in thousands, except per share data)



                                       Year Ended December 31,
                             2007        2007          2006        2006
                            (GAAP)    (Non GAAP)      (GAAP)    (Non GAAP)
    Revenue
      MRO services         $49,392      $49,392      $43,824      $43,824
      Parts services        20,384       20,384       15,197       15,197
        Total revenue       69,776       69,776       59,021       59,021

    Cost and operating
     expenses
      MRO services          35,205       35,205       32,214       32,214
      Parts services        16,603       16,603       12,834       12,834
      Selling and marketing  2,613        2,613        2,276        2,276
      General and
       administrative        6,981        5,870        3,896        3,550
      Amortization of
       intangibles
            474          ---          478          ---
        Operating income     7,900        9,485        7,423        8,147

    Other income (expense)
      Interest income          897          897          166          166
      Interest expense        (732)        (732)        (637)        (637)
        Total other income
         (expense)             165          165         (471)        (471)

    Income before taxes      8,065        9,650        6,852        7,677
    Provision for income
     taxes                   2,871        3,442        2,523        2,827
        Net income          $5,194      $ 6,208       $4,329       $4,850

    Net income per share:
      Basic                  $0.48        $0.57        $0.48        $0.54
      Diluted                $0.47        $0.57        $0.48        $0.54

    Weighted average number
     of common shares
     outstanding:
      Basic                 10,934       10,934        9,000        9,000
      Diluted               10,962       10,962        9,000        9,000



                     LIMCO-PIEDMONT INC. AND SUBSIDIARIES

            UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME
                    (in thousands, except per share data)



                                   Quarter
Ended December 31, 2007
                             2007        2007         2006         2006
                            (GAAP)    (Non GAAP)     (GAAP)     (Non GAAP)
    Revenue
      MRO services         $11,515      $11,515      $11,313      $11,313
      Parts services         3,361        3,361        7,327        7,327
        Total revenue       14,876       14,876       18,640       18,640

    Cost and operating
     expenses
      MRO services           8,986        8,986        8,189        8,189
      Parts services         2,705        2,705        6,694        6,694
      Selling and marketing    638          638          618          618
      General and
       administrative        1,590        1,354          901          763
      Amortization of
       intangibles
            119           --          135           --
        Operating income       838        1,193        2,103        2,376

    Other income (expense)
      Interest income          355          355          217          217
      Interest expense         (15)         (15)        (276)        (276)
        Total other income
         (expense)             340          340          (59)         (59)

    Income before taxes      1,178        1,533        2,044        2,317
    Provision for income
     taxes                     389          517          742          843
    Net income                $789       $1,016       $1,302       $1,474

    Net income per share:
      Basic                  $0.06        $0.08        $0.14        $0.16
      Diluted                $0.06        $0.08        $0.14        $0.16

    Weighted average number
     of common shares
     outstanding:
      Basic                 13,205       13,205        9,000        9,000
      Diluted               13,280       13,280        9,000        9,000



                     LIMCO-PIEDMONT INC. AND SUBSIDIARIES

  RECONCILIATION OF REPORTED GAAP RESULTS TO NON-GAAP NET INCOME (Unaudited)
                    (in thousands, except per share data)


                               For the Year Ended       For the Quarter Ended
                                   December 31,              December 31,
                                 2007        2006         2007         2006

    GAAP net income            $5,194       $4,330         $788       $1,304
    Non-GAAP adjustments:
      Share based compensation    390           --          220           --
      IPO related bonus           396           --           16           --
      Amortization of acquired
       intangible assets          474          477          119          135
      Phantom stock option
       compensation               325          348           --          138
      Related Income tax
       benefits                  (571)        (304)        (128)        (100)
    Total non-GAAP adjustments  1,014          521          227          173
    Non-GAAP net income        $6,208       $4,851       $1,015       $1,477

    Net income per common
     share:
      Basic
      GAAP net income           $0.48        $0.48        $0.06        $0.14
      Non-GAAP adjustments,
       net of tax                0.09         0.06         0.02         0.02
                                $0.57        $0.54        $0.08        $0.16
    Net income per common
     share:
      Diluted
      GAAP net income           $0.47        $0.48        $0.06        $0.14
      Non-GAAP adjustments,
       net of tax                0.10         0.06         0.02         0.02
                                $0.57        $0.54        $0.08        $0.16

    Weighted average number
     of common shares
     outstanding:
      Basic                    10,934        9,000       13,205        9,000
      Diluted                  10,962        9,000       13,280        9,000