Fairchild Corp.

1750 Tysons Blvd.

Year founded: 1956

Industry: other

Post 200 Category: Top 125 Companies

Revenue: $338.35 Million

Net Income/Loss: $3.36 Million

Earnings per share: $0.13

Dividend: n/a

Stockholder equity: $139.41 Million

Auditor: KPMG LLP

Stock: FA

Assets: $528.10 Million

Market capitalization: $76.09 Million

52-week high: 5 4/20/2004

52-week low: 2.88 4/1/2005

Chairman and CEO: Jeffrey J. Steiner

President and COO: Eric I. Steiner

Employees: 500

Local employees: 35

Description: Having sold a major part of its aerospace business in 2002, Fairchild now derives the largest share of its revenue from Fairchild Sports. The company moved into that arena in 2003 with the acquisition of three other businesses — Hein Gericke and PoloExpress, which operate 229 retail shops in Europe, and Intersport Fashions West, which designs and distributes motorcycle helmets, boots and apparel, some for sale under the Harley-Davidson label. Fairchild also distributes aircraft products.

Developments: Chairman and chief executive Jeffrey J. Steiner agreed last month to pay $1.5 million and accept a 20 percent reduction in his $2.5 million salary to settle a shareholder lawsuit alleging that he received improper payments and excessive compensation. Steiner's son Eric, the company's president, accepted a 15 percent cut. They denied wrongdoing and agreed to settle to eliminate the burden of litigation, according to a settlement document submitted for court approval. The concessions amounted to a fraction of the payments the lawsuit challenged, including interest-free loans, advances on retirement payments, payments for an apartment in Paris and a Steiner-affiliated aircraft, and millions of dollars of golden parachute or "change of control" payments that Jeffrey and Eric Steiner were awarded in connection with the sale of a major Fairchild subsidiary in 2002 though both executives remained at Fairchild. Also at issue was $5.5 million that the company spent related to Jeffrey Steiner's defense when he was investigated and prosecuted in France for allegedly misusing the funds of a French petroleum company. In 2003, he was given a suspended sentence and ordered to pay a fine of 500,000 euros. The company had posted $1.5 million with the court on Steiner's behalf, and the French court ordered that applied to the fine. Saying that its audit expenses are rising sharply, Fairchild declared that it "will consider all options for reducing costs" and may take the company private in the coming year. Fairchild has been audited by KPMG since Ernst & Young resigned in 2003 after a year on the job.