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Aug 7,2009

CORRECTED RELEASE -- LMI Aerospace Announces Results for the Second Quarter of 2009

Revises 2009 Guidance; Provides 2010 Sales Guidance

ST. LOUIS, Aug. 7, 2009 (GLOBE NEWSWIRE) -- LMI Aerospace, Inc. (Nasdaq:LMIA), a leading provider of design engineering services, structural components, assemblies and kits to the aerospace, defense and technology industries, issued a corrected release today with correct non-GAAP cash flow figures in the non-GAAP financial table. This release replaces the news release distributed August 7, 2009, at 8:30 a.m., Eastern Time, and announces financial results for the second quarter of 2009.

Net sales in the quarter ended June 30, 2009, were $62.8 million compared to $64.9 million in the quarter ended June 30, 2008. Net income for the second quarter of 2009 was $3.2 million or $0.28 per diluted share versus $5.0 million, or $0.45, per diluted share in the second quarter of 2008.

"We continue to see several encouraging developments at LMI, including a letter of intent for our first design-build program of significance," said Ronald S. Saks, Chief Executive Officer of LMI Aerospace, Inc. "This program, for which the contract should be executed in the third quarter, will combine the talents of our Aerostructures and Engineering Services segments. We also have executed contracts for additional shipsets and assemblies on the Blackhawk helicopter. Our financial position has also strengthened, as we reduced inventory, brought free cash flow to break even year to date and decreased debt from the end of the first quarter."

Net sales for the Aerostructures segment for the second quarters of 2009 and 2008 were as follows:



                                               % of            % of
 Category                              Q2 2009  Total  Q2 2008  Total
 ------------------------------        --------------  --------------
                                               ($ in millions)

 Corporate and regional aircraft       $  11.8   29.4% $  14.1   33.9%
 Large commercial aircraft                18.2   45.3%    12.4   29.8%
 Military                                  8.7   21.6%    11.7   28.1%
 Technology                                0.4    1.0%     2.2    5.3%
 Other                                     1.1    2.7%     1.2    2.9%
                                       --------------  --------------
 Total                                 $  40.2  100.0% $  41.6  100.0%
                                       ==============  ==============

The decrease in corporate and regional aircraft sales was mainly due to reduced production rates and related inventory reductions at Gulfstream and Bombardier. Large commercial aircraft sales benefited from $7.6 million of sales for the Boeing 767 wing-modification and winglet program while sales were lower on the Boeing 737 and 787 platforms. Sales of military products were adversely affected by reduced sales of components and assemblies for the Blackhawk helicopter as customers continue to destock and manage inventories, even while facing rising production rates on the helicopter. The decline in technology sales was due to the lower demand for semiconductor equipment components.

Net sales for the Engineering Services segment for the second quarters of 2009 and 2008 were as follows:



                                                % of            % of
 Category                              Q2 2009  Total  Q2 2008  Total
 ------------------------------        --------------  --------------
                                               ($ in millions)

 Corporate and regional aircraft       $   4.6   20.4% $   8.4   35.0%
 Large commercial aircraft                10.2   45.1%    11.2   46.7%
 Military                                  7.1   31.4%     3.0   12.5%
 Tooling                                   0.7    3.1%     1.4    5.8%
                                       --------------  --------------
 Total                                 $  22.6  100.0% $  24.0  100.0%
                                       ==============  ==============

Sales for large commercial aircraft were down $1.0 million as designs on the 747-8 and 787 programs matured. Declines in engineering services for corporate and regional aircraft, primarily related to the G650, were basically offset by increases in military programs supporting the CH-53 helicopter and JSF aircraft.

Gross profit for the second quarter of 2009 was $13.4 million or 21.3 percent of sales compared to $16.7 million or 25.7 percent of sales in the second quarter of 2008. In the second quarter of 2009, gross profit for the Aerostructures segment was $9.0 million or 22.4 percent of sales versus $11.8 million or 28.4 percent of sales in the year-ago quarter. An increase in obsolescence costs of $0.5 million, $0.3 million of start-up costs on the G250 and CRJ-1000, and continued operational issues at the Company's Sun Valley, California facility of $0.3 million contributed to the decline in gross profit. Additionally, although operating above the Company's expectations, the 767 wing modification kit provides a lower gross profit margin. Gross profit for the Engineering Services segment for the second quarter of 2009 was $4.4 million or 19.5 percent of sales versus $4.9 million or 20.4 percent of sales in the second quarter of 2008. The lower margin was due mainly to higher overhead rates resulting from fewer work days, lower sales volume, and increase in non-billable hours.

Selling, general and administrative expenses were $7.9 million in the second quarter of 2009, or 12.6 percent of sales, compared to $8.3 million or 12.8 percent of sales in the year-ago quarter.

Net interest expense was $0.4 million in the second quarter of 2008 and 2009, respectively, reflecting lower interest rates offset by increased borrowings due to the Intec acquisition in January 2009. Income taxes in the second quarter of 2009 were $1.8 million, compared to $2.9 million in the year-ago quarter. The effective tax rate for the second quarter of 2009 was 36.4 percent compared to 36.5 percent the prior year.

The backlog at June 30, 2009, was $238 million versus $163 million at June 30, 2008.

For the six months ended June 30, 2009, net sales were $126.8 million compared to $125.3 million in the six months ended June 30, 2008. Net income for the first two quarters of 2009 was $6.6 million or $0.58 per diluted share versus $9.5 million or $0.84 per diluted share for the first two quarters of 2008.

In March 2009, guidance for both the Aerostructures and Engineering Services Segments were changed following Gulfstream's announced production rate cuts and the lack of visibility of new development projects. We are now revising that guidance for each segment as follows:

The Aerostructures segment has been impacted as a result of notification in June 2009 of a 25 percent reduction in production of Boeing 767 wing modification kits and winglets, higher inventory destocking by Blackhawk customers, and reduced demand at the California machining plant. The segment now expects 2009 sales of $165 million to $175 million, gross profit of 23.5 percent to 24.5 percent, and selling general and administrative expenses of $24 million to $26 million.

Guidance for the Engineering Services segment has also been changed to reflect the added engineering revenue from the design build project mentioned above and the decreased engineering opportunities available primarily on Boeing models for which demand is currently difficult to estimate. Revenues are now expected to range from $76 million to $80 million, gross profit from 17.5 percent to 18.5 percent, and selling, general and administrative expenses from $7.4 million to $7.6 million.

On a consolidated basis, revenues are now expected to range from $241 million to $255 million, gross profit from 21.6 percent to 22.6 percent, selling, general, and administrative expenses from $31.4 million to $33.6 million, interest expense from $1.5 million to $1.6 million, and income taxes are expected to be approximately 36.5 percent.

Guidance for sales of the Aerostructures segment for 2010 is based primarily on orders in our Blackhawk customer's inventory system as well as current production rates for large commercial and business jet aircraft, and are estimated to be $185 million to $195 million including orders for new programs received during 2009.

The Engineering Services segment expects sales in 2010 of $70 million to $75 million based on our current limited visibility. Consolidated Sales for 2010 are estimated to range from $255 million to $270 million.

"We continue to be encouraged by the number of opportunities to grow market share offered by our customers," Saks said. "We view the aerospace and defense market constructively, believing that weakness in cargo and passenger traffic, as well as reduced enplanements of business jets, will abate in the next twelve months, setting the stage for new order placement and increased engineering and manufacturing activity. During the next year, we will be refining our long term strategy, with emphasis on possible consolidation of plants and expansion of our product mix to include composites manufacturing. In addition, we will continue to evaluate individual plant performance and capability, with particular attention on the operations of our Sun Valley machining plant, given its current dependence on the technology industry and our need to improve the depth of its management group and the capability of its equipment."

"We will be exploring strategic alternatives which result in LMI being able to support the considerable growth we foresee in the next few years," Saks added. "We continue to explore cost reduction, inventory reduction and limited capital expenditures in order to achieve a free cash flow of $15 million to $20 million in 2009. Given our net debt of approximately $33 million currently, and the free cash flow we anticipate for the next twelve months, we expect to be in a favorable position to make strategic acquisitions as our industry begins to improve."

LMI Aerospace, Inc. is a leading provider of design engineering services, structural components, assemblies and kits to the aerospace, defense and technology industries. Through its Aerostructures segment, the company primarily fabricates machines, finishes and integrates formed, close-tolerance aluminum and specialty alloy components and sheet-metal products, for large commercial, corporate and military aircraft. It manufactures more than 30,000 products for integration into a variety of aircraft platforms manufactured by leading original equipment manufacturers and Tier 1 aerospace suppliers. Through its Engineering Services segment, operated by its D3 Technologies, Inc subsidiary, the company provides a complete range of design, engineering and program management services, supporting aircraft lifecycles from conceptual design, analysis and certification through production support, fleet support and service-life extensions.

The LMI Aerospace, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=4971

This news release includes forward-looking statements related to LMI Aerospace, Inc.'s, outlook for 2009 and 2010, which are based on current management expectations. Such forward-looking statements are subject to various risks and uncertainties, many of which are beyond the control of LMI Aerospace, Inc. Actual results could differ materially from the forward-looking statements as a result of, among other things, the factors detailed from time to time in LMI Aerospace, Inc.'s filings with the Securities and Exchange Commission. Please refer to the Risk Factors contained in the company's Annual Report on Form 10-K for the year ended December 31, 2008, and any risk factors set forth in our other subsequent filings with the Securities and Exchange Commission.



                          LMI Aerospace, Inc.
                Condensed Consolidated Balance Sheets
       (Amounts in thousands, except share and per share data)
                             (Unaudited)

                                          June 30, 2009  Dec. 31, 2008
                                          -------------  -------------
 Assets
 Current assets:
   Cash and cash equivalents                  $     128      $      29
   Trade accounts receivable, net of
    allowance of $336 at June 30, 2009
    and $304 at December 31, 2008                38,251         26,887
   Inventories, net                              58,111         62,393
   Prepaid expenses and other current
    assets                                        2,298          2,137
   Income taxes receivable                          151            364
   Deferred income taxes                          3,373          3,519
                                          -------------  -------------
     Total current assets                       102,312         95,329

 Property, plant and equipment, net              19,259         20,103
 Goodwill                                        53,559         46,258
 Intangible assets, net                          22,584         17,861
 Other assets                                     1,075          1,167
                                          -------------  -------------
 Total assets                                 $ 198,789      $ 180,718
                                          =============  =============

 Liabilities and shareholders' equity
 Current liabilities:
   Accounts payable                           $   6,984      $  12,363
   Accrued expenses                              10,934          9,936
   Short-term deferred gain on sale of
    real estate                                     233            233
   Current installments of long-term
    debt and capital lease obligations              440            498
                                          -------------  -------------
     Total current liabilities                   18,591         23,030

 Long-term deferred gain on sale of
  real estate                                     3,413          3,540
 Long-term debt and capital lease
  obligations, less current installments         37,335         25,536
 Deferred income taxes                            7,942          5,812
 Other long-term liabilities                      1,235             --
                                          -------------  -------------
     Total long-term liabilities                 49,925         34,888

 Shareholders' equity:
   Common stock, $0.02 par value per
    share; authorized 28,000,000 shares;
    issued 11,997,541 shares and
    11,926,309 shares at June 30, 2009
    and December 31, 2008, respectively             240            239
   Preferred stock, $0.02 par value per
    share; authorized 2,000,000 shares;
    none issued at either date                       --             --
   Additional paid-in capital                    70,760         69,855
   Treasury stock, at cost, 363,188
    shares at June 30, 2009 and 364,088
    shares at December 31, 2008                  (1,723)        (1,727)
   Retained earnings                             60,996         54,433
                                          -------------  -------------
     Total shareholders' equity                 130,273        122,800
                                          -------------  -------------
 Total liabilities and shareholders'
  equity                                      $ 198,789      $ 180,718
                                          =============  =============

 See accompanying notes to condensed consolidated financial statements.


                         LMI Aerospace, Inc.
            Condensed Consolidated Statements of Operations
         (Amounts in thousands, except share and per share data)
                            (Unaudited)


                        Three Months Ended          Six Months Ended
                              June 30,                  June 30,
                         2009         2008         2009          2008
                       -------      -------      --------      --------

 Sales and service
  revenues
   Product sales       $39,843      $41,230      $ 82,577      $ 77,956
   Service revenues     22,986       23,674        44,254        47,365
                       -------      -------      --------      --------
     Net sales          62,829       64,904       126,831       125,321
                       -------      -------      --------      --------
 Cost of sales and
  service revenues
   Cost of product
    sales               30,935       28,681        62,501        54,568
   Cost of service
    revenues            18,511       19,552        36,361        38,459
                       -------      -------      --------      --------
     Cost of sales      49,446       48,233        98,862        93,027
                       -------      -------      --------      --------
 Gross profit           13,383       16,671        27,969        32,294

 Selling, general
  and
  administrative
  expenses               7,939        8,328        16,412        16,384
 Severance and
  restructuring             --           --           362            --
                       -------      -------      --------      --------
 Income from
  operations             5,444        8,343        11,195        15,910

 Other income
  (expense):
   Interest expense
    net                   (413)        (416)         (835)         (959)
   Other, net               17           (6)          (24)           (9)
                       -------      -------      --------      --------
 Total other income
  (expense)               (396)        (422)         (859)         (968)
                       -------      -------      --------      --------

 Income before
  income taxes           5,048        7,921        10,336        14,942
 Provision for
  income taxes           1,839        2,894         3,773         5,439
                       -------      -------      --------      --------
 Net income            $ 3,209      $ 5,027      $  6,563      $  9,503
                       =======      =======      ========      ========

 Amounts per common
  share:
 Net income per
  common share         $  0.28      $  0.45      $   0.58      $   0.85
                       =======      =======      ========      ========

 Net income per
  common share
  assuming dilution    $  0.28      $  0.45      $   0.58      $   0.84
                       =======      =======      ========      ========

 Weighted average
  common shares
  outstanding       11,291,492   11,179,613    11,284,678    11,191,977
                    ==========   ==========    ==========    ==========
 Weighted average
  dilutive common
  shares
  outstanding       11,319,521   11,296,567    11,313,004    11,310,101
                    ==========   ==========    ==========    ==========


 See accompanying notes to condensed consolidated financial statements.


                          LMI Aerospace, Inc.
            Condensed Consolidated Statements of Cash Flows
                        (Amounts in thousands)
                              (Unaudited)


                                                   Six Months Ended
                                                      June 30,
                                                  2009         2008
                                               --------      --------
 Operating activities:
 Net income                                    $  6,563      $  9,503
 Adjustments to reconcile net income to
  net cash (used) provided by operating
  activities:
   Depreciation and amortization                  3,790         3,270
   Charges for inventory obsolescence and
    valuation                                       920           450
   Restricted stock compensation                    923         1,248
   Deferred tax provision                           146            --
   Other noncash items                              116            14
   Changes in operating assets and
    liabilities, net of acquired businesses:
     Trade accounts receivable                  (10,833)       (4,338)
     Inventories                                  3,649        (8,662)
     Prepaid expenses and other assets              (90)            9
     Current income taxes                           770           997
     Accounts payable                            (5,562)         (527)
     Accrued expenses                              (632)        1,064
                                               --------      --------

   Net cash (used) provided by operating
    activities                                     (240)        3,028

 Investing activities:
 Additions to property, plant and equipment      (1,213)       (3,277)
 Acquisitions, net of cash acquired             (10,047)           --
 Other, net                                        (156)           31
                                               --------      --------

   Net cash used by investing activities        (11,416)       (3,246)

 Financing activities:
 Proceeds from issuance of debt                      --            73
 Principal payments on long-term debt and
  notes payable                                    (259)         (416)
 Advances on revolving lines of credit           41,464        25,423
 Payments on revolving lines of credit          (29,464)      (24,957)
 Other, net                                          14            41
                                               --------      --------
   Net cash provided by financing activities     11,755           164

                                               --------      --------
 Net increase (decrease) in cash and cash
  equivalents                                        99           (54)
 Cash and cash equivalents, beginning of year        29            82
                                               --------      --------
 Cash and cash equivalents, end of quarter     $    128      $     28
                                               ========      ========

 See accompanying notes to condensed consolidated financial statements.


                                                    Six Months Ended
                                                        June 30,
                                                    2009        2008
                                                  --------    --------

 Non-GAAP Financial Information
 Adjusted Earnings Before Interest,
 Depreciation, and Amortization (EBITDA)(1):

 Net Income                                       $  6,563    $  9,503

   Income tax expense                                3,733       5,439
   Interest expense                                    835         959
   Other expenses                                       24           9
   Depreciation and amortization                     3,790       3,270
   Stock based compensation                            923       1,248
   Severance and restructuring costs                   362          --
   Acquisition costs - SFAS 141(R)                     239          --
   TCA wind-up costs                                   249          --
                                                  --------    --------

 Adjusted EBITDA                                  $ 16,718    $ 20,428
                                                  ========    ========

 Free Cash Flow (2):

 Net cash used by operating activities            $   (240)   $  3,028
 Less:
   Capital Expenditures                             (1,213)     (3,277)
                                                  --------    --------

 Free Cash Flow                                   $ (1,453)   $   (249)
                                                  ========    ========


 1.  We believe Adjusted EBITDA is a measure important to many
     investors as an indication of operating performance by the
     business. We feel this measure provides additional transparency
     to investors that augments, but does not replace the GAAP
     reporting of net income and provides a good comparative measure.
     Adjusted EBITDA is not a measure of performance defined by GAAP
     and should not be used in isolation or as a substitute for the
     related GAAP measure of net income.

 2.  We believe Free Cash Flow is a measure of the operating cash flow
     of the Company that is useful to investors. Free Cash Flow is a
     measure of the cash generated by the Company for such purposes as
     repaying debt or funding acquisitions. Free Cash Flow is not a
     measure of performance defined by GAAP and should not be used in
     isolation or as a substitute for the related GAAP measure of cash
     generated (used) by operating activities.
CONTACT: LMI Aerospace, Inc.
         Ed Dickinson, Chief Financial Officer
         636.916.2150

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