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Mercury Air Group, Inc. Reports Net Loss for Fiscal Year 2005 Third Quarter; $54.5 Million Increase in Revenue From Continuing Operations Offset by Increased General Expenses.

Article Excerpt
LOS ANGELES, May 27 /PRNewswire-FirstCall/ -- Mercury Air Group, Inc. , reported a net loss for the third quarter ended March 31, 2005 of $1.87 million, or $0.62 per basic and diluted share. For the third quarter of fiscal year 2004, the Company reported a loss of $1.82 million or $0.63 per basic and diluted share, which included a net loss from discontinued operations of $651 thousand or $0.22 per basic and diluted share.

Revenue from continuing operations for the third quarter of fiscal year 2005 was $158.26 million, compared to $103.78 million for the same period last year, an increase of $54.48 million, or 52.5%. The increase in revenue from continuing operations is primarily due to the higher aviation fuel prices driven by higher worldwide petroleum product prices. The Company's gross margin from continuing operations for the third quarter of fiscal year 2005 was $4.19 million, an increase of 53.2%, compared to $2.73 million in the third quarter of fiscal year 2004.

"While there were improved financial results from our three business units, those figures were offset by increased general and administrative expenses," said Joseph A. Czyzyk, Chairman of the Board and Chief Executive Officer.

For the third quarter of fiscal year 2005, revenue for the Company's MercFuel, Inc. ("MercFuel") subsidiary was $142.73 million, up 61.6%, compared to revenue of $88.31 million for the third quarter of fiscal year 2004. The increased revenue resulted from a 38.3% increase in the price of fuel and a 16.9% volume increase. MercFuel's gross margin increased 60.2% to $2.41 million in the third...