CAV International: Over 50% Compound Annual Growth 2005-2008

05 February 2009

Airfield Services & Logistics Experts

“Somebody said there was an Economic Melt-Down going on, but we have chosen to ignore that and keep growing.” - Carroll Vaughan, Founder & President

COLORADO SPRINGS, Colo.--(BUSINESS WIRE)-- CAV International, Inc., a US Government outsourcing contractor specialized in Airfield Services & Logistics, announced that it achieved over 50% compound annual growth rates from January 2005 through December 2008. For that 4-year period, CAV grew by more than one and one-half times, each year, year over year. In that same period, employment rose from fewer than 50 people to over 325 government services professionals. In 2008 alone, CAV International provided over 625,000 man-hours of professional services, operating across 19 time zones from Kuwait to Japan and Alaska. In 2008 CAV efficiently handled over 18,000 transport airplanes’ arrivals and departures at various locations, and courteously served over 850,000 in-transit passengers. At the same time, CAV managed and moved over 140,000 tons of cargo and mail, operating over 200 major pieces of airfield equipment. CAV’s trucking and docking operations saw 110,000 unit shipments in 2008, plus an additional 29,000 unit shipments of HAZMAT items requiring specialized handling and training. Over time, CAV intends to grow its business steadily toward the strategic goal of becoming the largest and best independent Airfield Services & Logistics government outsourcing contractor in the industry.

CAV International operates in the growing military outsourcing arena. The US Government is pursuing competitive sourcing and privatization to free up dollars for its highest priorities, especially modernization. It is within this arena that CAV has established its strong reputation for quality, reliability, and cost-effectiveness. The company maintains a lean cost model, and is able to offer its Government or Prime Contractor customers an absolute cost advantage combined with measurably superior quality metrics on a consistent and reliable basis.

CAV International provides technical and labor services in support of US Department of Defense contracts worldwide. Headquartered in Colorado Springs, Colorado, the Company primarily provides air terminal and ground handling services and passenger terminal operations for the US Air Force's Air Mobility Command (AMC), and commissary services for the Defense Commissary Agency (DeCA). Considered to be experts at Airfield Services & Logistics; the majority of CAV's contracts currently fall into that specialized aviation sector. All of DOD’s transport-sized aircraft, combined with the “CRAF” fleet of civilian airliners that are commissioned to carry troops and personnel steadily all over the world, together are the primary fleet that CAV targets with its many services, and that combined lift represents, by far, the “largest airline in the world.”

CAV International's seasoned management team has on average over 20 years of contract management and logistics experience, with a heavy career focus on Airfield Services & Logistics. Most leaders and technicians in the company are ex-military. The Company's excellent track record and business principles make CAV International a Partner of Choice for the USAF, other branches of the military, and Government agencies. CAV focuses internally to be a strong and fair employer, aiming to be an Employer of Choice for entrepreneurial aviation services professionals who thrive in the military services environment.

Carroll Vaughan, founder and President of CAV International, said: "Boeing recently published an estimate that Government Outsourcing will be a $400 Billion total market over the next 10 years. CAV is well positioned to grow with that rising trend, both independently and teamed with larger prime contractors. We are experts at airfield services and logistics, providing air terminal and ground handling services and passenger terminal operations for the USAF Air Mobility Command, the air component of the US Transportation Command (USTRANSCOM). We are proud to be contractors for these major commands, and are extending our reach to other commands, branches of service, and specialized Government agencies."

Mr. Vaughan further explained: "At a time when our economy is suffering and so many companies are faltering, CAV International is proud to be expanding, looking for more ways to invest and grow, and to create more good jobs for good people. Our prospects for continued growth are outstanding. We’re clipping along each year at more than 150% over the previous year, or more than 50% CAGR, with commensurate growth in earnings as we expand. In our airfield services and logistics operations, we provide skilled personnel, technical supervision, equipment, and liaison support for in-bound and out-bound air traffic at numerous bases. We are recruiting more people, looking for strong contributors to join the CAV team. Somebody said there was an Economic Melt-Down going on, but we have chosen to ignore that and keep growing."

CAV International is capable of providing transportation and logistics services within a broad array of North American Industry Classification System (NAICS) codes, and is continuously adding to its capabilities in order to provide a broader range of services to the Government.

CAV International points toward several competitive advantages in its operations, namely:

1.     Superior name and reputation: CAV International enjoys a long-standing (10+ years) reputation for its focus on safe execution, offering reliable expertise, and providing superior customer support. The Company is well known for its diligence in meeting the needs of large, complex, fast track airfield & logistics projects. CAV's business practices include constant vigilance on quality, safety, and FAR compliance.

2. Rapid Response (R2) Contract: CAV International is a member of both the LSI and TAMSCO teams for "R2," prime contractors for the US Army Communications-Electronics Command Rapid Response (R2) contract. This provides federal managers with a rapid means for acquiring support in the areas of maintenance, logistics, and services.
3. International reach: CAV International's skilled workforce is capable of providing technical and labor services in support of DOD operations both domestically and abroad. The majority of CAV's current operations are conducted in far flung international locations, from Japan to Kuwait, with more sites actively in the bid and proposal stage.
4. Critical mass in a specialized niche: The Company has grown steadily, with excellent competitive differentiation, so that it now has substantial market share in its very focused field of Airfield Services & Logistics. CAV is a big independent player in this narrowly defined sector.
5. Strong historical sales growth: Since 2005, CAV International has grown much faster than the underlying growth rates of its served markets. CAV has accomplished this through superior performance coupled to cost efficiencies and a highly experienced workforce.
6. Growing market for the Company's services: The outsourcing and privatization of infrastructure and other Department of Defense services is expected to remain strong due to the private sector's ability to provide quality goods and services at lower cost. Focusing on its core competencies and contracting out or privatizing other processes saves the Department of Defense billions of dollars annually in support costs.

Forward Looking Statements: The Company from time to time may discuss forward-looking information. Except for factual historical information, all forward looking statements are estimates by the Company's management and are subject to various risks and uncertainties that are beyond the Company's control and may cause actual results to differ materially from management's expectations.