The commercial aftermarket has generally been more stable and has exhibited steady growth compared to the commercial OEM market which has historically exhibited cyclical swings due to changes in production rates for new aircraft. Commercial aftermarket revenue is driven primarily by revenue passenger miles and by the size and age of the worldwide aircraft fleet.

The growth rates of revenue passenger miles and the size of the worldwide aircraft fleet tend to correlate. Between 1970 and 2004, RPMs grew at a CAGR of approximately 6.2%, and are expected to grow at a CAGR of approximately 5.3% between 2005 and 2010 according to The Airline Monitor. The worldwide aircraft fleet grew at a CAGR of approximately 4.8% between 1970 and 2004, and is expected to grow at approximately a 4.0% CAGR between 2005 and 2010, reflecting the anticipated increase in RPMs during this period.

Historically, aftermarket and OEM sales in the military sector tend to follow defense spending. Military aftermarket revenue is driven primarily by the operational tempo of the military, while military OEM revenue is driven primarily by spending on new systems and platforms. In recent years, defense spending has reached historic highs, due in part to the military engagements in Afghanistan and Iraq and the war on terrorism. The total defense spending budget can be difficult to predict.

The Company’s business is well diversified due to the broad range of products that it offers to its customers. Some of the Company’s more significant product offerings, substantially all of which are ultimately provided to end-users in the aerospace industry, include: ignition systems and components such as igniters, exciters and spark plugs used to start and spark turbine and reciprocating aircraft engines; gear pumps used primarily in lubrication and fuel applications; mechanical/electromechanical actuators and controls used in numerous actuation applications; NiCad batteries/chargers used to provide starting and back up power; power conditioning devices used to modify and control electrical power; rods and locking devices used primarily to hold open cowlings to allow access to engines for maintenance; engineered connectors used in fuel, pneumatic and hydraulic applications; engineered latching and locking devices used in various bin, security and other applications; lavatory hardware and components; specialized AC/DC electric motors and components used in various defense and commercial applications; and specialized valving used in fuel, hydraulic and pneumatic applications.

Cost of sales increased by $25.8 million, or 15.7%, to $190.0 million for fiscal year ended September 30, 2005 from $164.2 million for fiscal year ended September 30, 2004.

Amortization of intangibles decreased by $2.6 million to $7.7 million for fiscal year ended September 30, 2005 from $10.3 million for fiscal year ended September 30, 2004.

Interest expense increased by $5.6 million, or 7.5%, to $80.3 million for fiscal year ended September 30, 2005 from $74.7 million for fiscal year ended September 30, 2004 .

Net Income increased $21.1 million, or 154.6%, to $34.7 million for fiscal year ended September 30, 2005 compared to net income of $13.6 million for fiscal year ended September 30, 2004.