**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**Washington,      D.C. 20549**

**FORM      10-Q**

| ý   | Quarterly                Report pursuant to Section 13 or 15(d) of the Securities Exchange                Act of                1934. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------|

|  ̈   | Transition                Report pursuant to Section 13 or 15(d) of the Securities Exchange                Act of                1934. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------|

**LMI      AEROSPACE, INC.**

| **Missouri**(State                or other jurisdiction ofincorporation                or organization)                             | **43-1309065**(I.R.S.                EmployerIdentification                No.) |
|-------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------|
|                                                                                                                                |                                                                            |
| **3600                Mueller Road****St.                Charles, Missouri**(Address                of principal executive offices) |  **63302-0900**(Zip                Code)                                   |

**(636)      946-6525**

----

**LMI      AEROSPACE, INC.**

**QUARTERLY      REPORT ON FORM 10-Q**

**FOR      THE FISCAL QUARTER ENDING March 31, 2006**

|                                                                                                                           PART                I. FINANCIAL INFORMATION |                                                                                                                                          |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                          |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | Page                No.                                                                                                                       |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                          |
| **Item                1.**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | **Financial                Statements (unaudited).**                                                                                          |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                          |
| Condensed                Consolidated Balance Sheets as of March                31, 2006 and December 31, 2005.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | 3                                                                                                                                             |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                          |
| Condensed                Consolidated Statements of Operations for the                three months ended March 31, 2006 and 2005.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | 4                                                                                                                                             |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                          |
| Condensed                Consolidated Statements of Cash Flows for                the three months ended March 31, 2006 and 2005.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | 5                                                                                                                                             |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                          |
| Notes                to Condensed Consolidated                Financial Statements.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | 6                                                                                                                                             |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                          |
| **Item                2.**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | **Management’s                Discussion and                Analysis of Financial Condition and Results of                Operations.** | 14 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                          |   |
| **Item                3.**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | **Quantitative                and Qualitative                Disclosures About Market Risk.**                                                 | 18 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                          |   |
| **Item                4.**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | **Controls                and                Procedures.**                                                                                    | 18 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                          |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | PART                II. OTHER INFORMATION                                                                                                     |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                          |   |
| **Item                1.**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | **Legal                Proceedings.**                                                                                                         | 19 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                          |   |
| **Item                1A.**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | **Risk                Factors.**                                                                                                              | 19 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                          |   |
| **Item                2.**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | **Unregistered                Sales of                Equity Securities and Use of Proceeds.**                                                | 19 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                          |   |
| **Item                3.**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | **Defaults                Upon Senior                Securities.**                                                                            | 19 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                          |   |
| **Item                4.**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | **Submission                of Matters to a Vote                of Security Holders.**                                                        | 19 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                          |   |
| **Item                5.**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | **Other                Information.**                                                                                                         | 19 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                          |   |
| **Item                6.**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | **Exhibits.**                                                                                                                                 | 19 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                          |   |
| SIGNATURE                PAGE                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | 20                                                                                                                                            |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                          |
| EXHIBIT                INDEX                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | 21                                                                                                                                            |

----

**LMI      Aerospace, Inc.**

**Condensed      Consolidated Balance      Sheets**

*(Amounts      in thousands, except share and per share data)*

|                                                                                                                                                                                                                               |   | **March                31, 2006****(Unaudited)** |   | **December                31, 2005** |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------|--------|--------------------------------------|--------|
| Assets                                                                                                                                                                                                                             |   |                                             |   |                                 |   |   |   |
| Current                assets:                                                                                                                                                                                                     |   |                                             |   |                                 |   |   |   |
| Cash                and cash equivalents                                                                                                                                                                                           |   | $                                                | 23,845 |                                 | $      | 35 |   |
| Trade                accounts receivable, net of allowance of $252 at March31,                2006 and $244 at December 31, 2005                                                                                                   |   |                                             | 15,810 |                                 |   | 16,088 |   |
| Inventories                                                                                                                                                                                                                        |   |                                             | 27,497 |                                 |   | 25,333 |   |
| Prepaid                expenses and other current assets                                                                                                                                                                           |   |                                             | 1,105  |                                 |   | 1,205 |   |
| Deferred                income taxes                                                                                                                                                                                               |   |                                             | 1,610  |                                 |   | 1,610 |   |
| Total                current assets                                                                                                                                                                                                |   |                                             | 69,867 |                                 |   | 44,271 |   |
|                                                                                                                                                                                                                               |   |                                             |   |                                 |   |   |   |
|                                                                                                                                                                                                                               |   |                                             |   |                                 |   |   |   |
| Property,                plant and equipment, net                                                                                                                                                                                  |   |                                             | 18,072 |                                 |   | 18,162 |   |
| Goodwill                                                                                                                                                                                                                           |   |                                             | 5,653  |                                 |   | 5,653 |   |
| Customer-related                intangible assets, net                                                                                                                                                                             |   |                                             | 3,743  |                                 |   | 3,114 |   |
| Other                assets                                                                                                                                                                                                        |   |                                             | 754    |                                 |   | 757 |   |
| Total                assets                                                                                                                                                                                                        |   | $                                                | 98,089 |                                 | $      | 71,957 |   |
|                                                                                                                                                                                                                               |   |                                             |   |                                 |   |   |   |
| Liabilities                and stockholders’ equity                                                                                                                                                                          |   |                                             |   |                                 |   |   |   |
| Current                liabilities:                                                                                                                                                                                                |   |                                             |   |                                 |   |   |   |
| Accounts                payable                                                                                                                                                                                                    |   | $                                                | 6,343  |                                 | $      | 7,407 |   |
| Accrued                expenses                                                                                                                                                                                                    |   |                                             | 5,000  |                                 |   | 6,077 |   |
| Current                installments of long-term debt and capital lease                obligations                                                                                                                                 |   |                                             | 1,424  |                                 |   | 1,846 |   |
| Total                current liabilities                                                                                                                                                                                           |   |                                             | 12,767 |                                 |   | 15,330 |   |
|                                                                                                                                                                                                                               |   |                                             |   |                                 |   |   |   |
| Long-term                debt and capital lease obligations, less currentinstallments                                                                                                                                              |   |                                             | 2,328  |                                 |   | 14,462 |   |
| Subordinated                debt                                                                                                                                                                                                   |   |                                             | -      |                                 |   | 1,000 |   |
| Deferred                income taxes                                                                                                                                                                                               |   |                                             | 1,333  |                                 |   | 1,333 |   |
| Total                long-term liabilities                                                                                                                                                                                         |   |                                             | 3,661  |                                 |   | 16,795 |   |
|                                                                                                                                                                                                                               |   |                                             |   |                                 |   |   |   |
| Stockholders’                equity:                                                                                                                                                                                         |   |                                             |   |                                 |   |   |   |
| Common                stock, $.02 par value per share; authorized28,000,000                shares; issued 11,558,531 shares and8,797,909                shares at March 31, 2006 and December 31,2005,                respectively |   |                                             | 231    |                                 |   | 176 |   |
| Preferred                stock, $.02 par value per share; authorized 2,000,000                shares; none issued in both periods                                                                                                  |   |                                             | -      |                                 |   | - |   |
| Additional                paid-in capital                                                                                                                                                                                          |   |                                             | 65,722 |                                 |   | 26,307 |   |
| Treasury                stock, at cost, 420,032 shares at March 31, 2006 and                433,972 shares at December 31, 2005                                                                                                    |   |                                             | (1,993 | )                                    |   | (2,059 | ) |
| Retained                earnings                                                                                                                                                                                                   |   |                                             | 17,701 |                                 |   | 15,408 |   |
| Total                stockholders’ equity                                                                                                                                                                                    |   |                                             | 81,661 |                                 |   | 39,832 |   |
| Total                liabilities and stockholders’ equity                                                                                                                                                                    |   | $                                                | 98,089 |                                 | $      | 71,957 |   |

*See      accompanying notes.*

----

**LMI      Aerospace, Inc.**

**Condensed      Consolidated Statements of      Operations**

*(Amounts      in thousands, except share and per share data)*

*(Unaudited)*

|                                                                               |   | **Three                Months Ended****March                31,** |      |
|------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------|-----------|
|                                                                               |   | 2006                                                              |      | 2005 |   |
|                                                                               |   |                                                              |      |   |   |
| Net                sales                                                           |   | $                                                                 | 29,242    |   | $ | 23,973 |   |
| Cost                of sales                                                       |   |                                                              | 20,921    |   |   | 18,752 |   |
| Gross                profit                                                        |   |                                                              | 8,321     |   |   | 5,221 |   |
|                                                                               |   |                                                              |      |   |   |   |   |
| Selling,                general and administrative expenses                        |   |                                                              | 4,201     |   |   | 3,453 |   |
| Income                from operations                                              |   |                                                              | 4,120     |   |   | 1,768 |   |
|                                                                               |   |                                                              |      |   |   |   |   |
| Other                income (expense):                                             |   |                                                              |      |   |   |   |   |
| Interest                expense, net                                               |   |                                                              | (427      | ) |   | (420 | ) |
| Other,                net                                                          |   |                                                              | 2         |   |   | 3 |   |
| Income                before income taxes                                          |   |                                                              | 3,695     |   |   | 1,351 |   |
|                                                                               |   |                                                              |      |   |   |   |   |
| Provision                for income taxes                                          |   |                                                              | 1,386     |   |   | 507 |   |
| Net                income                                                          |   | $                                                                 | 2,309     |   | $ | 844 |   |
|                                                                               |   |                                                              |      |   |   |   |   |
| Amounts                per common share:Net                income per common share |   | $                                                                 | 0.27      |   | $ | 0.10 |   |
|                                                                               |   |                                                              |      |   |   |   |   |
| Net                income per common share assumingdilution                        |   | $                                                                 | 0.27      |   | $ | 0.10 |   |
|                                                                               |   |                                                              |      |   |   |   |   |
| Weighted                average common shares outstanding                          |   |                                                              | 8,547,398 |   |   | 8,237,772 |   |
|                                                                               |   |                                                              |      |   |   |   |   |
| Weighted                average dilutive common sharesoutstanding                  |   |                                                              | 8,670,549 |   |   | 8,355,744 |   |
| *See                accompanying notes.*                                           |   |                                                              |      |   |   |   |   |

----

**LMI      Aerospace, Inc.**

**Condensed      Consolidated Statements of Cash      Flows**

*(Amounts      in thousands)*

*(Unaudited)*

|                                                                                                                  |   | **Three                Months Ended****March                31,** |   |
|-----------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------|--------|
|                                                                                                                  |   | **2006**                                                          |   | **2005** |   |
| **Operating                activities**                                                                               |   |                                                              |   |   |   |   |   |
| Net                income                                                                                             |   | $                                                                 | 2,309  |   | $ | 844 |   |
| Adjustments                to reconcile net income tonet                cash provided (used) by operating activities: |   |                                                              |   |   |   |   |   |
| Depreciation                and amortization                                                                          |   |                                                              | 916    |   |   | 1,150 |   |
| Charges                for bad debt expense                                                                           |   |                                                              | 28     |   |   | 34 |   |
| Charges                for inventory obsolescence and valuation                                                       |   |                                                              | 283    |   |   | 218 |   |
| Restricted                stock compensation                                                                          |   |                                                              | 43     |   |   | - |   |
| Gain                on sale of equipment                                                                              |   |                                                              | (3     | ) |   | - |   |
| Changes                in operating assets and liabilities:                                                           |   |                                                              |   |   |   |   |   |
| Trade                accounts receivable                                                                              |   |                                                              | 250    |   |   | (2,140 | ) |
| Inventories                                                                                                           |   |                                                              | (2,447 | ) |   | (190 | ) |
| Prepaid                expenses and other assets                                                                      |   |                                                              | 96     |   |   | (107 | ) |
| Current                and deferred income taxes                                                                      |   |                                                              | (1,594 | ) |   | 418 |   |
| Accounts                payable                                                                                       |   |                                                              | (1,064 | ) |   | (606 | ) |
| Accrued                expenses                                                                                       |   |                                                              | 517    |   |   | (69 | ) |
| Net                cash used by operating activities                                                                  |   |                                                              | (666   | ) |   | (448 | ) |
|                                                                                                                  |   |                                                              |   |   |   |   |   |
| **Investing                activities**                                                                               |   |                                                              |   |   |   |   |   |
| Additions                to property, plant and equipment                                                             |   |                                                              | (685   | ) |   | (241 | ) |
| Proceeds                from sale of Versaform Canada Corporation                                                     |   |                                                              | -      |   |   | 4 |   |
| Proceeds                from sale of equipment                                                                        |   |                                                              | 4      |   |   | - |   |
| Acquisition                of Technical Change Associates                                                             |   |                                                              | (614   | ) |   | - |   |
| Net                cash used by investing activities                                                                  |   |                                                              | (1,295 | ) |   | (237 | ) |
|                                                                                                                  |   |                                                              |   |   |   |   |   |
| **Financing                activities**                                                                               |   |                                                              |   |   |   |   |   |
| Proceeds                from public offering                                                                          |   |                                                              | 39,268 |   |   | - |   |
| Principal                payments on long-term debt and notes payable                                                 |   |                                                              | (4,658 | ) |   | (555 | ) |
| Net                advances (payments) on revolver                                                                    |   |                                                              | (8,898 | ) |   | 841 |   |
| Proceeds                from exercise of stock options                                                                |   |                                                              | 59     |   |   | 7 |   |
| Net                cash provided by financing activities                                                              |   |                                                              | 25,771 |   |   | 293 |   |
|                                                                                                                  |   |                                                              |   |   |   |   |   |
| Net                increase (decrease) in cash and cash equivalents                                                   |   |                                                              | 23,810 |   |   | (392 | ) |
| Cash                and cash equivalents, beginning of year                                                           |   |                                                              | 35     |   |   | 414 |   |
| Cash                and cash equivalents, end of quarter                                                              |   | $                                                                 | 23,845 |   | $ | 22 |   |
|                                                                                                                  |   |                                                              |   |   |   |   |   |
| **Supplemental                Disclosures of Cash Flow Information**                                                  |   |                                                              |   |   |   |   |   |
| Interest                paid                                                                                          |   | $                                                                 | 384    |   | $ | 430 |   |
| Income                taxes paid (refunded), net                                                                      |   | $                                                                 | 2,980  |   | $ | 88 |   |

*See      accompanying notes.*

----

**LMI            Aerospace, Inc.**

**Notes            to Condensed Consolidated Financial Statements**

*(Dollar            amounts in thousands, except share and per share data)*

*(Unaudited)*

**1.      Accounting Policies**

**Description      of Business**

**Basis      of Presentation**

**Customer      Concentration**

**Use      of Estimates**

----

**LMI            Aerospace, Inc.**

**Notes            to Condensed Consolidated Financial Statements**

*(Dollar            amounts in thousands, except share and per share data)*

*(Unaudited)*

**Income      Taxes**

**Segment      Reporting**

**2.      Inventories**

|                             |   | **March                31,****2006** |   | **December                31, 2005** |   |
|----------------------------------|--------|--------------------------------------|--------|--------------------------------------|--------|
|                             |   |                                 |   |                                 |   |
| Raw                materials     |   | $                                    | 5,807  |                                 | $      | 5,209 |   |
| Work                in progress  |   |                                 | 7,469  |                                 |   | 6,480 |   |
| Finished                goods    |   |                                 | 14,221 |                                 |   | 13,644 |   |
| Total                inventories |   | $                                    | 27,497 |                                 | $      | 25,333 |   |

----

**LMI            Aerospace, Inc.**

**Notes            to Condensed Consolidated Financial Statements**

*(Dollar            amounts in thousands, except share and per share data)*

*(Unaudited)*

**3.      Goodwill and Intangible Assets**

**Customer-Related      Intangible Assets**

|                                    |   | **March                31,****2006** |   | **December                31,**** 2005** |   |
|-----------------------------------------|--------|--------------------------------------|--------|-----------------------------------------------|--------|
|                                    |   |                                 |   |                                          |   |
| Gross                Amount             |   | $                                    | 4,671  |                                          | $      | 3,975 |   |
| Accumulated                Amortization |   |                                 | (928   | )                                             |   | (861 | ) |
| Intangible                assets, net   |   | $                                    | 3,743  |                                          | $      | 3,114 |   |

**4.      Long-Term Debt and Revolving Line of Credit**

|                                                                                                                            |       | **March                31,** | ** ** | **December                31,** | ** ** |
|---------------------------------------------------------------------------------------------------------------------------------|------------|------------------------------|------------|---------------------------------|------------|
| ** **                                                                                                                      | ** ** | **2006**                     |       | **2005**                        |       |
| Term                Loans:                                                                                                      |       |                         |       |                            |       |   |   |
| Real                Estate                                                                                                      |       | $                            | -          |                            | $          | 3,280 |   |
| Equipment                                                                                                                       |       |                         | 3,245      |                            |       | 3,540 |   |
| Revolving                line of credit                                                                                         |       |                         | -          |                            |       | 8,899 |   |
| Notes                payable, principal and interest payable monthly,at                fixed rates, ranging from 6.99% to 8.88% |       |                         | 507        |                            |       | 589 |   |
| Total                debt                                                                                                       |       |                         | 3,752      |                            |       | 16,308 |   |
| Less                current installments                                                                                        |       |                         | 1,424      |                            |       | 1,846 |   |
| Total                                                                                                                           |       | $                            | 2,328      |                            | $          | 14,462 |   |
| Subordinated                notes payable to certain directors, interestpayable                monthly at 12%                   |       | $                            | -          |                            | $          | 1,000 |   |

----

**LMI            Aerospace, Inc.**

**Notes            to Condensed Consolidated Financial Statements**

*(Dollar            amounts in thousands, except share and per share data)*

*(Unaudited)*

**Credit        Facility**

| ·   | A                revolving line of credit (the “Revolver”) of up to $23,250, subject to a                borrowing base calculation. The borrowing base calculation at March                31,                2006 allowed the Company to borrow up to $22,797. The Revolver requires                monthly payments of interest at Wells Fargo’s prime lending rate (7.75% at                March 31, 2006) and matures on November 15, 2009. On March 29, 2006,                the                outstanding balance under the Revolver was repaid with proceeds from                the                Company’s recently completed public offering. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | An                equipment term loan (the “Equipment Loan”) of $4,720 payable monthly over                three years in equal monthly principal installments of $98. The Equipment                Loan requires monthly interest payments at Wells Fargo’s prime lending                rate plus 4%. In January 2006, the rate was reduced to Wells Fargo’s prime                lending rate plus 0.5% when the Company paid a fee of $50. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | A                real estate term loan (the “Real Estate Loan”) of $3,645 payable in equal                monthly principal installments of $30 over three years, using a ten                year                amortization table. The Real Estate Loan requires interest at Wells                Fargo’s prime lending rate plus 4%. In January 2006, the rate was reduced                to Wells Fargo’s prime lending rate plus 0.5% when the Company was able to                maintain sufficient liquidity and reduce the borrowing base calculation                by                $1,800 over the first year of the agreement. On March 29, 2006, the                remaining balance was repaid with proceeds from the Company’s recently                completed public offering. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**LMI              Aerospace, Inc.**

**Notes              to Condensed Consolidated Financial Statements**

*(Dollar              amounts in thousands, except share and per share data)*

*(Unaudited)*

**Other        Notes **

**5.      Earnings Per Common Share**

**6.      Stock-Based Compensation**

| Expected                life in years  | 6     |
|----------------------------------------|-------|
| Risk-free                interest rate | 4.23% |
| Volatility                             | 60%   |
| Dividend                yield          | 0%    |

----

**LMI              Aerospace, Inc.**

**Notes              to Condensed Consolidated Financial Statements**

*(Dollar              amounts in thousands, except share and per share data)*

*(Unaudited)*

|                                                      |   |   |       |    |   |                                                     |   |    |                                                        |
|-----------------------------------------------------------|--------|--------|------------|--------------|--------|----------------------------------------------------------|--------|--------------|-------------------------------------------------------------|
| **Stock                Options**                          |   |   | **Shares** |         |   | **Weighted****Average****Exercise                Price** |   |         | **Weighted****Average****Remaining****Contractual****Life** |   |   | **Aggregate****Intrinsic****Value** |   |
| Outstanding                at December 31, 2005      |   |   | 198,024    |         | $      | 3.30                                                     |   |         |                                                        |   |   |   |   |
| Granted                                                   |   |   | -          |         | $      | -                                                        |   |         |                                                        |   |   |   |   |
| Exercised                                                 |   |   | (17,190    | )            | $      | 3.48                                                     |   |         |                                                        |   |   |   |   |
| Forfeited                or expired                       |   |   | (8,800     | )            | $      | 4.06                                                     |   |         |                                                        |   |   |   |   |
|                                                      |   |   |            |         |   |                                                          |   |         |                                                             |   |   |  |   |
| Outstanding                at March 31, 2006         |   |   | 172,034    |         | $      | 3.24                                                     |   |         | 4.7                yrs                                      |   | $ | 2,055 |   |
|                                                      |   |   |            |         |   |                                                          |   |         |                                                             |   |   |  |   |
| Options                Exercisable at March 31, 2006 |   |   | 171,659    |         | $      | 3.24                                                     |   |         | 4.7                yrs                                      |   | $ | 2,051 |   |
|                                                      |   |   |            |         |   |                                                          |   |         |                                                             |   |   |  |   |

| **Range                of****Exercise****Prices** |   | **Number                of****Outstanding****Options** |    | **Weighted****Average****Remaining****Contractual****Life** |   | **Weighted****Average****Exercise****Price** |   | **Number****Exercisable** |   | **Weighted****Average****Exercise****Price** |   |
|---------------------------------------------------|--------|--------------------------------------------------------|---------|-------------------------------------------------------------|--------|----------------------------------------------|--------|---------------------------|--------|----------------------------------------------|--------|
|                                              |   |                                                   |    |                                                        |   |                                         |   |                      |   |                                         |   |
| $1.31                - $1.95                      |   |                                                   | 15,000  |                                                        |   | 8.3                                          |   | $                         | 1.31   |                                         |   | 15,000 |   | $ | 1.31 |   |
| $1.96                - $2.90                      |   |                                                   | 94,734  |                                                        |   | 4.4                                          |   |                      | 2.58   |                                         |   | 94,359 |   |   | 2.58 |   |
| $2.91                - $4.35                      |   |                                                   | 19,500  |                                                        |   | 4.4                                          |   |                      | 3.40   |                                         |   | 19,500 |   |   | 3.40 |   |
| $4.36                - $6.06                      |   |                                                   | 42,800  |                                                        |   | 4.1                                          |   |                      | 5.32   |                                         |   | 42,800 |   |   | 5.32 |   |
| Total                                             |   |                                                   | 172,034 |                                                        |   | 4.7                                          |   | $                         | 3.24   |                                         |   | 171,659 |   | $ | 3.24 |   |

----

**LMI              Aerospace, Inc.**

**Notes              to Condensed Consolidated Financial Statements**

*(Dollar              amounts in thousands, except share and per share data)*

*(Unaudited)*

|                                             |   |       |    |                                                               |   |
|--------------------------------------------------|--------|------------|---------|-------------------------------------------------------------------------|--------|
| **Restricted                Stock Awards**  |   | **Shares** |    | **Weighted****Average****Grant Date****Fair                Value** |   |
| Outstanding                at December 31, 2005  |   |       | 15,750  |                                                                    | $      | 9.06 |   |
| Granted                                          |   |       | 11,600  |                                                                    |   | 14.11 |   |
| Vested                                           |   |       | — |                                                                    |   | — |   |
| Forfeited                                        |   |       | — |                                                                    |   | — |   |
|                                             |   |       |         |                                                                    |   |  |   |
| Outstanding                at March 31, 2006     |   |       | 27,350  |                                                                    | $      | 11.20 |   |
|                                             |   |       |         |                                                                    |   |  |   |

|                                                                                                                                                   |   | **Three                Months Ended** |                     |
|--------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------|--------------------------|
|                                                                                                                                                   |   | **March                31, 2005**     |                     |
|                                                                                                                                                   |   |                                  |                     |
| Net                income                                                                                                                              |   | $                                     | 844                      |   |
| Total                stock-based employee compensationexpense                determined under fair valuebased                method, net of tax effect |   |                                  | (16)$                828 |   |
| Pro                forma net income                                                                                                                    |   | $                                     | 828                      |   |
|                                                                                                                                                   |   |                                  |                     |   |
| Net                income per common share - basic andassuming                dilution1                                                                |   |                                  |                     |   |
| As                reported                                                                                                                             |   | $                                     | 0.10                     |   |
| Pro                forma                                                                                                                               |   | $                                     | 0.10                     |   |

----

**LMI              Aerospace, Inc.**

**Notes              to Condensed Consolidated Financial Statements**

*(Dollar              amounts in thousands, except share and per share data)*

*(Unaudited)*

**7.        Public Offering**

**8.      Acquisition of Technical Change Associates, Inc.**

----

**Item      2. Management’s Discussion and Analysis of Financial Condition and Results of      Operations.**

----

**OVERVIEW**

----

**RESULTS      OF OPERATIONS**

*Three      months ended March 31, 2006 compared to March 31, 2005*

|                                      |   | Three                Months EndedMarch                31, 2006 |   | Three                Months EndedMarch                31, 2005 |   |
|-------------------------------------------|--------|----------------------------------------------------------------|--------|----------------------------------------------------------------|--------|
|                                      |   | ($                in millions)                                 |   |
| Net                sales                  |   | $                                                              | 29.2   |                                                           | $      | 24.0 |   |
| Cost                of sales              |   |                                                           | 20.9   |                                                           |   | 18.8 |   |
| Gross                profit               |   |                                                           | 8.3    |                                                           |   | 5.2 |   |
| S,G                & A                |   |                                                           | 4.2    |                                                           |   | 3.4 |   |
| Income                from operations     |   |                                                           | 4.1    |                                                           |   | 1.8 |   |
| Interest                expense, net      |   |                                                           | (0.4   | )                                                              |   | (0.4 | ) |
| Income                before income taxes |   |                                                           | 3.7    |                                                           |   | 1.4 |   |
| Provision                for income taxes |   |                                                           | 1.4    |                                                           |   | 0.5 |   |
| Net                Income                 |   | $                                                              | 2.3    |                                                           | $      | 0.9 |   |
|                                      |   |                                                           |   |                                                           |   |   |   |

**Net      Sales.**

| Category                                       |   | 1st                Qtr 2006 |   | %                ofTotal |   | 1st                Qtr2005 |   | %                ofTotal |   |
|------------------------------------------------|--------|-----------------------------|--------|--------------------------|--------|----------------------------|--------|--------------------------|--------|
| Corporate                and Regional Aircraft |   | $                           | 11.7   |                     |   | 40.1                       | %      | $                        | 10.2   |   |   | 42.5 | % |
| Large                Commercial Aircraft       |   |                        | 9.0    |                     |   | 30.8                       |   |                     | 6.3    |   |   | 26.3 |   |
| Military                                       |   |                        | 5.1    |                     |   | 17.5                       |   |                     | 4.4    |   |   | 18.3 |   |
| Technology                                     |   |                        | 2.0    |                     |   | 6.8                        |   |                     | 0.8    |   |   | 3.3 |   |
| Other                (1)                       |   |                        | 1.4    |                     |   | 4.8                        |   |                     | 2.3    |   |   | 9.6 |   |
| Total                                          |   | $                           | 29.2   |                     |   | 100.0                      | %      | $                        | 24.0   |   |   | 100.0 | % |

----

**Gross      Profit.**

**Selling,      General and Administrative Expenses. **

**Interest      Expense.**

**Income      Tax Expense.**

**LIQUIDITY      AND CAPITAL RESOURCES**

----

**CONTRACTED      OBLIGATIONS AND COMMITMENTS**

**Item      3.**
**      Quantitative and Qualitative Disclosures About Market Risk.**

**Item      4. Controls and Procedures.**

----

**PART      II**

**OTHER      INFORMATION**

**Item      1. Legal Proceedings.**

**Item      1A. Risk Factors.**

**Item      2. Unregistered Sales of Equity Securities and Use of      Proceeds.**

**Item      3. Defaults Upon Senior Securities.**

**Item      4. Submission of Matters to a Vote of Security Holders.**

**Item      5. Other Information.**

**Item      6. Exhibits.**

----

**SIGNATURES**

|   | LMI                AEROSPACE, INC.                                                                                                                           |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                         |
|   | /s/                Ronald S. Saks                                                                                                                            |
|   | Ronald                S. Saks,President                and Chief Executive Officer(Principal                Executive Officer)                               |
|   |                                                                                                                                                         |
|   |                                                                                                                                                         |
|   | /s/                Lawrence E. Dickinson                                                                                                                     |
|   | Lawrence                E. DickinsonChief                Financial Officer and Secretary(Principal                Financial and Principal AccountingOfficer) |

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| Exhibit                No.  | Description                                                                                                                                                           |
|----------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.1                        | General                Terms Agreement between Spirit Aerosystems, Inc. (Tulsa Facility)                and LMI                Aerospace, Inc. dated April 19, 2006.  |
| 10.2                        | Special                Business Provisions between Spirit Aerosystems, Inc. and LMI Aerospace,                Inc. dated April 19, 2006.                              |
| 31.1                        | Rule                13a-14(a) Certification of Ronald S. Saks, President and Chief Executive                Officer.                                                  |
| 31.2                        | Rule                13a-14(a) Certification of Lawrence E. Dickinson, Secretary and Chief                Financial Officer.                                           |
| 32                          | Certification                pursuant to 18 U.S.C Section 1350 as adopted pursuant to Section                906 of                Sarbanes-Oxley Act of 2002.        |