|SECURITIES
AND EXCHANGE COMMISSION

Washington,
D.C. 20549

FORM 10-Q
|---------------------------------------------------------------------

||X| | Quarterly Report
 Pursuant to Section 13 or 15(d) of the Securities Exchange Act
of 1934. For the quarterly period ended March 31, 2001.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------

||_| | Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934.
         For the transition period from  to               .
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------

|Commission file number:
 0-24293


LMI
AEROSPACE, INC.(Exact name of registrant as specified in its charter)
|------------------------------------------------------------------------------------------------------------

|Missouri
               (State or Other Jurisdiction of
                Incorporation or Organization) | 43-1309065
     (I.R.S. Employer 
    Identification No.)
|------------------------------------------------------------------------------------------------------ | ---------------------------------------------------------

|3600 Mueller Road
                    St. Charles, Missouri
           (Address of Principal Executive Offices) | 63302-0900
     (ZIP Code)
|--------------------------------------------------------------------------------------------------------------- | --------------------------

|(636)
946-6525 (Registrant's Telephone Number, Including Area Code)


Indicate
by check mark whether the registrant: (1) has filed all reports required to be
filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the
preceding 12 months (or for such shorter period that the registrant was required
to file such reports), and (2) has been subject to such filing requirements for
the past 90 days.

Yes  X   No

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the
latest practicable date.
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Title of classof Common Stock | Number of Shares outstanding as of May 1, 2001
|----------------------------- | ----------------------------------------------

|Common Stock, par value $.02 per share | 8,065,518
|-------------------------------------- | ---------

|LMI
AEROSPACE, INC.

QUARTERLY
REPORT ON FORM 10-Q

FOR THE
FISCAL QUARTER ENDING MARCH 31, 2001

INDEX
|-------------------------------------------------------------------------------------------------------

`PART I.  FINANCIAL INFORMATION

Item 1.  Financial Statements (Unaudited)

         Condensed Consolidated Balance Sheets as
         of December 31, 2000 and March 31, 2001                            1

         Condensed Consolidated Statements of Operations for the
         three months ending March 31, 2000 and 2001                        2

         Condensed Consolidated Statements of Cash Flows for the
         the three months ending March 31, 2000 and 2001                    3

         Notes to Unaudited Condensed Consolidated Financial Statements     4


Item 2.  Management's Discussion and Analysis of Financial
         Condition and Results of Operation                                 6


PART II.  OTHER INFORMATION

Item 6.  Exhibits and Reports on Form 8-K                                   7


SIGNATURE PAGE                                                              8


EXHIBIT INDEX                                                               9`

|LMI
Aerospace, Inc.

Condensed
Consolidated Balance Sheets
(Amounts in thousands, except share and per share data)
|------------------------------------------------------------------------------------------------------------------

`December 31,     March 31,
                                                         2000            2001
                                                                     (unaudited)
                                                  ------------------------------
Assets
Current assets:
   Cash and cash equivalents                            $ 1,676        $  1,685
   Investments                                              536             580
   Trade accounts receivable, net                         6,627           7,702
   Inventories                                           15,909          15,945
   Prepaid expenses                                         361             364
   Income taxes receivable                                  498             446
   Deferred income taxes                                    781             781
                                                  ------------------------------
Total current assets                                     26,388          27,503

Property, plant, and equipment, net                      21,059          21,196
Other assets                                              2,233           2,314
                                                  ------------------------------
                                                         49,680          51,013
                                                  ==============================

Liabilities and stockholders' equity
Current liabilities:
   Accounts payable                                    $  3,570        $  3,435
   Accrued expenses                                       1,962           2,142
   Income taxes payable                                      --             475
   Current installments of long-term debt                   104             106
                                                  ------------------------------
Total current liabilities                                 5,636           6,158

Long-term debt, less current installments                   121              94
Deferred income taxes                                     1,245           1,260
                                                  ------------------------------
Total noncurrent liabilities                              1,366           1,354

Stockholders' equity:
   Common stock of $.02 par value; authorized
     28,000,000 shares; issued 8,734,422 at
     December 31, 2000 and at March 31, 2001                175             175
   Additional paid-in capital                            26,164          26,164
   Treasury Stock, at cost, 628,604 and
     668,904 shares in 2000
     and 2001                                            (3,174)         (3,263)
   Accumulated other comprehensive loss                    (272)           (243)
   Retained earnings                                     19,785          20,668
                                                  ------------------------------
Total stockholders' equity                               42,678          43,501
                                                  ------------------------------
                                                       $ 49,680        $ 51,013
                                                  ==============================

See accompanying notes.`

|LMI
Aerospace, Inc.

Condensed
Consolidated Statements of Operations
(Amounts in thousands, except per share data)
(Unaudited)
|------------------------------------------------------------------------------------------------------------------------------

`For the Three Months Ended March 31
                                                     2000               2001
                                                 -------------------------------

Net sales                                        $  14,520           $  16,048
Cost of sales                                       12,289              12,345
                                                 -------------------------------
Gross profit                                         2,231               3,703

Selling, general, and administrative
  expenses                                           2,535               2,342
                                                 -------------------------------
Income (loss) from operations                         (304)              1,361

Other                                                   16                  (4)
                                                --------------------------------
Income (loss) before income taxes                     (288)              1,357

Provision for (Benefit of) income taxes               (101)                475
                                                --------------------------------
Income (loss) before cumulative
  effect of change in accounting
  principle                                           (187)                882

Cumulative effect of change in accounting
    Principle net of income tax benefit of            (164)                 --
    $88
                                                --------------------------------

Net income (loss)                                $    (351)               $882
                                                ================================


Amounts per common share:
Income (loss) before cumulative
   effect of change in accounting
   principle                                     $   (0.02)              $0.11
Cumulative effect at change in accounting
   principle                                         (0.02)                 --
                                                --------------------------------
Net income (loss) per common share                  $(0.04)              $0.11
                                                ================================

Net income (loss) per common share -
   assuming dilution                             $   (0.04)              $0.11
                                                ================================

Weighted average common shares outstanding
                                                 8,208,467           8,080,969
                                                ================================
Weighted average dilutive stock options
   outstanding                                          --              11,593
                                                ================================

See accompanying notes.`

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

`For the Three Months Ended March 31
                                                       2000              2001
                                             -----------------------------------
Operating activities
Net income (loss)                                     $ (351)          $  882
Adjustments to reconcile net income to
   Net cash provided by operating
     activities:
     Depreciation and amortization                       870              868
     Changes in operating assets and
       liabilities:
       Trade accounts receivable                         426           (1,075)
       Inventories                                      (701)             (36)
       Prepaid expenses and other assets                  44             (130)
       Income taxes payable                             (195)             527
       Accounts payable                                 (372)            (135)
       Accrued expenses                                  129              180
                                               ---------------------------------
Net cash generated (used) in operating
  activities                                            (150)           1,081

Investing activities
Additions to property, plant, and
  equipment, net                                      (1,140)            (958)
Proceeds from sale of property, plant
  and equipment                                          194               --
Purchases of investments                                (504)              --
                                               ---------------------------------
Net cash used in investing activities                 (1,450)            (958)

Financing activities
Principal payments on long-term debt                     (24)             (25)
Treasury stock transactions, net                         (14)             (89)
                                               ---------------------------------
Net cash used in financing activities                    (38)            (114)
Activities

Net change in cash and cash equivalents               (1,638)               9
Cash and cash equivalents, beginning
  of period                                            5,908            1,676
                                               ---------------------------------
Cash and cash equivalents, end of period            $  4,270            1,685
                                               =================================

See accompanying notes.`

|LMI
Aerospace, Inc.
Notes to Condensed Consolidated Financial Statements(Dollar amounts in thousands, except share and per share data))
(Unaudited)
March 31, 2001

1.   Accounting
Policies

Basis of
Presentation

LMI Aerospace, Inc. (the "Company") is a fabricator, finisher, and integrator of
formed,  close tolerance  aluminum and specialty alloy components for use by the
aerospace industry.  The Company is a Missouri  corporation with headquarters in
St.  Charles,  Missouri.  The  Company  maintains  facilities  in  St.  Charles,
Missouri;  Seattle,  Washington;  Tulsa, Oklahoma;  Wichita, Kansas; and Irving,
Texas.

The accompanying unaudited
condensed consolidated financial statements have been prepared in accordance
with accounting principles generally accepted in the United States for interim
financial information and with the instructions to Form 10-Q and Article 10 of
Regulation S-X. Accordingly, they do not include all of the information and
footnotes required by accounting principles generally accepted in the United
States for complete financial statements. In the opinion of management, all
adjustments (consisting of normal recurring accruals) considered necessary for a
fair representation have been included. Operating results for the three months
ended March 31, 2001 are not necessarily indicative of the results that may be
expected for the year ended December 31, 2001. These financial statements should
be read in conjunction with the consolidated financial statements and
accompanying footnotes included in the Companys Annual Report on Form 10-K
for the year ended December 31, 2000 as filed with the SEC.

Use of
Estimates

The preparation of financial
statements in conformity with accounting principles generally accepted in the
United States requires management to make certain estimates and assumptions.
These estimates and assumptions affect the reported amounts in the financial
statements and accompanying notes. Actual results could differ from those
estimates.

Cumulative
Effect of Change in Accounting Principle

In the fourth quarter of
2000, the Company changed its method of accounting for revenue recognition in
accordance with Staff Accounting Bulleting (SAB) No. 101, Revenue Recognition in
Financial Statements. The new accounting method was adopted retroactive to
January 1, 2000. The cumulative effect of the change on prior years resulted in
a charge to income of $164, net of income tax benefit of $88, which is included
in income for the three months ended March 31, 2001. All 2000 amounts have been
restated for this change in accounting principle. The effect of the change on
the three months ended March 31, 2000 was as follows:
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

`First Quarter
                                                          Ended 3/31/00

                                            As Previously
                                               Reported             As Restated
                                            -------------           -----------

Net Sales                                         $14,761               $14,520

Gross Profit                                        2,241                 2,231

Loss before cumulative effect of
  change in accounting principal                     (180)                 (187)


Cumulative effect of change in
  accounting principle                                 --                  (164)

Net Loss                                             (180)                 (351)

Amounts per common share:

Loss before cumulative effect of change
  in accounting principle                            (.02)                 (.02)


Cumulative effect of change in
  accounting principle                                 --                  (.02)

Net loss                                      $      (.02)            $    (.04)

Net loss - assuming dilution                  $      (.02)            $    (.04)`

|2.   Inventories

Inventories consist of the following:
|-------------------------------------------------------

`December 31,          March 31,
                                                    2000                 2001
                                            ------------------------------------
Raw materials                                      $ 3,842               3,881
Work in process                                      3,380               3,183
Finished goods                                       8,687               8,881
                                            ------------------------------------
                                                    15,909              15,945
                                            ====================================`

|3.   Subsequent
Events

On April 1, 2001, the
Company purchased certain assets and liabilities of Tempco Engineering, Inc. and
Hyco Precision, Inc. (together referred to as Tempco), two related
companies in Sun Valley, California for $14,250. The Company may pay additional
contingent consideration of up to $1,250, based on the financial results of
Tempco over the next two years. Tempco had sales of $16,000 for the year ended
December 31, 2000 and had total assets of $10,000 as of December 31, 2000. This
acquisition will be accounted for under the purchase method of accounting and
has been excluded from the consolidated financial statements of the Company as
of March 31, 2001. The cost to acquire Tempco will be allocated to the assets
acquired and liabilities assumed according to their estimated fair values at the
time of the acquisition.

In order to facilitate the  acquisition of Tempco,  the Company amended
its  current  loan  agreement  entering  into a three year  borrowing  agreement
("Borrowing  Agreement")  on April 2, 2001.  This Borrowing  Agreement  provides
financing  up to $15,500 and bears  interest at LIBOR plus 3%. The Company  drew
$14,250 on this Borrowing Agreement on April 2, 2001. The Borrowing Agreement is
secured by all assets of the  Company,  excluding  real  property,  and contains
financial  covenants  requiring minimum levels of cash flow coverage and EBITDA.
As of  March  31,  2001,  the  Company  has not  drawn  upon the  original  loan
agreement, which is a $7,000 secured line of credit.

Item 2.  
MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL 
        CONDITION AND RESULTS OF OPERATIONS

Except for the
historical information contained herein, the following report contains
forward-looking statements that involve risks and uncertainties. The
Companys actual results could differ materially from those discussed here.
Factors that could cause or contribute to such differences include, but are not
limited to, those discussed in the section entitled Managements Discussion
and Analysis of Financial Conditions and Results of Operations.

Overview

LMI Aerospace, Inc. is a
leader in fabricating, machining and integrating of formed close tolerance
aluminum and specialty alloy components for use by the aerospace industry. The
Company has been engaged in manufacturing components for a wide variety of
aerospace applications. Components manufactured by the Company include leading
edge wing slats, flaps and lens assemblies; cockpit window frame assemblies;
fuselage skins and supports, and passenger and cargo door frames and supports.
The Company maintains multi-year contracts with leading original equipment
manufacturers and primary subcontractors of commercial, corporate, regional and
military aircraft. Such contracts, which govern the majority of the
Companys sales, designate the Company as the sole supplier of the
aerospace components sold under the contracts. Customers include Boeing,
Lockheed Martin, Northrop Grumman, Gulfstream, Learjet, Canadair, DeHavilland
and PPG. The Company manufactures more than 15,000 parts for integration into
such models as Boeings 737, 747, 757, 767 and 777 commercial aircraft and
F-15, F-18, C-17 military aircraft, Canadairs RJ regional aircraft,
Gulfstreams G-IV and G-V corporate aircraft, and Lockheed Martins
F-16 and C-130 military aircraft.

Quarter Ended March 31, 2001 vs.
March 31, 2000

Net Sales. The
Company enjoyed an increase in net sales of 10.5% in the quarter, with sales
reaching $16.0 million in 2001. Shipments on Boeing commercial models added $1.4
million in the quarter. This increase in shipments to Boeing was primarily due
to $2.4 million in sales of Boeing 747 components in 2001, which represents an
increase of $0.8 million from 2000. Net sales on the 737 NG were $4.1 million in
2001, up from $3.9 million in 2000.

Sales to Bombardier totaled
$1.4 million in 2001, up $0.5 million from 2000, predominately due to sales of
components and tools for Learjet aircraft of $1.0 million, up $0.4 million from
2000. Sales on Lockheed Martins F-16 continued the strong performance in
late 2000, contributing $1.2 million in the quarter, up $0.4 million from the
first quarter of 2000, due to increased production rates and the customers
desire for accelerated deliveries. Sales on Gulfstreams G-IV and G-V
aircraft were $1.6 million in 2001, down $0.4 million from 2000. This decrease
is due to an inventory correction by Gulfstream, which the Company expects to
work through during the second quarter of 2001.

Gross Profit. Gross
profit for the first quarter of 2001 was $3.7 million (23.1% of net sales), up
from $2.2 million (15.4% of net sales) in 2000. This increased gross profit was
primarily due to improved labor efficiency, evidenced by decreased manufacturing
payroll and fringes cost of $0.1 million and increased sales of $1.5 million.

Selling, General, and
Administrative Expenses. Selling, general, and administrative expenses were
$2.3 million in the quarter, a decrease of $0.2 million from 2000. During the
first quarter of 2000, the Company recorded a bad debt expense of $0.4 million
related to a customer that filed bankruptcy. Excluding this one time charge in
2000, selling, general, and administrative expenses increased $0.2 million,
primarily resulting from increased payroll and fringe costs.

Cumulative Effect of
     Change in  Accounting  Principle.In the fourth  quarter of 2000,  the
Company  changed its method of accounting for revenue  recognition in accordance
with  Staff  Accounting  Bulleting  (SAB) No.  101,  Revenue  Recognition  in
Financial  Statements.  The new  accounting  method was adopted  retroactive
January 1, 2000. The cumulative  effect of the change on prior years resulted in
a charge to income of $164,  net of income tax benefit of $88, which is included
in income for the three months ended March 31, 2001.  All 2000 amounts have been
restated  for  this  change  in  accounting  principle.  Refer  to note 1 to the
financial statements for further information on this change.

Liquidity and
Capital Resources.

Cash was materially
unchanged in 2001. Cash from operations totaled $1.1 million. The Companys
net income of $0.9 million was offset by an increase in accounts receivable of
$1.1 million. Additionally, there was benefit of $0.9 million from non-cash
expenses of depreciation and amortization as well as accruals of tax liabilities
that are not yet paid. The operating cash was used to fund capital expenditures
of $1.0 million and treasury stock purchases of $0.1 million.

Subsequent to the end of
the quarter,  the Company  purchased  certain  assets and  liabilities of Tempco
Engineering,  Inc. and Hyco Precision, Inc. The Company amended its current loan
agreement (referred to as the "Borrowing Agreement") to fund the purchase price.
The Borrowing Agreement provides financing up to $15.5 million. The Company drew
$14.25  million on the  Borrowing  Agreement on April 2, 2001.  The Company also
maintains  its  revolving  credit  agreement of $7.0 million which it expects to
cover its normal operating and capital expenditure requirements.
PART IIOTHER INFORMATION


Item 6.  
Exhibits and Reports on Form 8-K
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(a) | Exhibit No. | Description
|--- | ----------- | -----------

| | 10.1 | Fifth Amendment to and Restatement of Loan Agreement dated
as of April 2, 2001.
| | ---- | -------------------------------------------------------------------------------

| | 10.2 | Employment Agreement between Tempco Engineering, Inc. and
Ernest R. Star dated April 2, 2001.
| | ---- | ---------------------------------------------------------------------------------------------

|(b) |  | Reports on Form 8-K.
|--- |  | --------------------

| | On March 30, 2001, the Company filed a Report on Form 8-K relating to the issuance of a press
         release announcing fiscal 2000 fourth quarter earnings.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------

|SIGNATURES

Pursuant to the  requirements
 of the  Securities  Exchange Act of 1934,  the registrant has duly caused this
report to be signed on its behalf by the undersigned thereunto duly authorized.
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | LMI AEROSPACE, INC.
| | -------------------

|Date:    May 15, 2001 | By:  /s/ Lawrence E. Dickinson
                                      Lawrence E. Dickinson
                                            Chief Financial Officer and 
                                      Secretary
|--------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|EXHIBIT INDEX
|-------------

|Exhibit Number | Description
|-------------- | -----------

|10.1 | Fifth Amendment to and Restatement of Loan Agreement dated as of April 2, 2001.
|---- | -------------------------------------------------------------------------------

|10.2 | Employment Agreement between Tempco Engineering, Inc. and Ernest R. Star dated
April 2, 2001.
|---- | ---------------------------------------------------------------------------------------------

---