AAR Reports Third Quarter Fiscal Year 2015 Results
Third quarter fiscal year 2015 income from continuing operations was
Third quarter results included a
"In the Aviation Services segment, we continue to have very strong results as we experienced sales growth of nearly 10.0% and profitability growth of over 30.0%," said
Sales in the Aviation Services segment increased 9.9% to
Third quarter sales to commercial customers represented 64.6% of consolidated sales, compared to 57.1% of consolidated sales in the third quarter of last year, while sales to government and defense customers represented the balance.
Consolidated gross profit margin was 13.2% for the third quarter compared to 16.6% last year. Aviation Services segment gross profit margin was 15.9%, up from 13.2% in the prior year period as we benefited from scale, and Expeditionary Services gross profit margin of negative 1.0% was down from 25.3% in the prior year period due to results from airlift operations.
In the third quarter, the Company used
Storch concluded, "With the close of the
Conference Call Information
AAR will hold its quarterly conference call at
About AAR
AAR is a global aerospace and defense company that employs more than 5,000 people in over 20 countries. Based in
This press release contains certain statements relating to future results, which are forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on beliefs of Company management, as well as assumptions and estimates based on information currently available to the Company, and are subject to certain risks and uncertainties that could cause actual results to differ materially from historical results or those anticipated, including those factors discussed under Item 1A, entitled "Risk Factors", included in the Company's Form 10-K for the fiscal year ended May 31, 2014. Should one or more of these risks or uncertainties materialize adversely, or should underlying assumptions or estimates prove incorrect, actual results may vary materially from those described. These events and uncertainties are difficult or impossible to predict accurately and many are beyond the Company's control. The Company assumes no obligation to update any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events. For additional information, see the comments included in AAR's filings with the Securities and Exchange Commission. |
AAR CORP. and Subsidiaries |
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Consolidated Statements of Income |
Three Months Ended February 28, |
Nine Months Ended February 28, |
|||||||
2015 |
2014 |
2015 |
2014 |
||||||
Sales |
$380.1 |
$ 399.8 |
$1,178.5 |
$ 1,288.5 |
|||||
Cost and expenses: |
|||||||||
Cost of sales |
330.0 |
333.6 |
998.8 |
1,073.1 |
|||||
Selling, general and administrative |
41.7 |
37.7 |
120.3 |
120.3 |
|||||
Earnings from aircraft joint ventures |
0.6 |
0.6 |
1.8 |
2.5 |
|||||
Operating income |
9.0 |
29.1 |
61.2 |
97.6 |
|||||
Interest expense |
6.4 |
7.1 |
19.4 |
21.9 |
|||||
Interest income |
- |
0.3 |
0.2 |
0.9 |
|||||
Income from continuing operations before income tax expense |
2.6 |
22.3 |
42.0 |
76.6 |
|||||
Income tax expense |
0.7 |
5.4 |
14.4 |
24.3 |
|||||
Income from continuing operations attributable to AAR |
1.9 |
16.9 |
27.6 |
52.3 |
|||||
Income (Loss) from discontinued operations attributable to AAR |
(36.4) |
1.0 |
(32.5) |
3.5 |
|||||
Net income attributable to AAR |
($34.5) |
$ 17.9 |
($4.9) |
$ 55.8 |
|||||
Earnings per share – Basic |
($0.89) |
$0.45 |
($0.14) |
$1.41 |
|||||
Earnings per share – Diluted |
($0.89) |
$0.45 |
($0.15) |
$1.40 |
|||||
Share Data: |
|||||||||
Average shares outstanding – Basic |
38.7 |
38.6 |
38.7 |
38.6 |
|||||
Average shares outstanding – Diluted |
39.2 |
39.1 |
39.2 |
39.1 |
|||||
AAR CORP. and Subsidiaries |
||||
Consolidated Balance Sheet Highlights (In millions except per share data) |
February 28, 2015 |
May 31, 2014 |
||
Cash and cash equivalents |
$67.0 |
$ 89.2 |
||
Current assets |
1,494.9 |
1,116.9 |
||
Current liabilities (excluding debt accounts) |
346.9 |
332.4 |
||
Net property, plant and equipment |
247.4 |
314.9 |
||
Total assets |
2,133.8 |
2,199.5 |
||
Total debt |
643.3 |
634.0 |
||
Stockholders' equity |
941.8 |
1,000.7 |
||
Book value per share |
$23.66 |
$25.27 |
||
Shares outstanding |
39.8 |
39.6 |
||
Sales By Business Segment (In millions - unaudited) |
Three Months Ended February 28, |
Nine Months Ended February 28, |
||
2015 |
2014 |
2015 |
2014 |
|
Aviation Services |
$ 318.4 |
$ 289.7 |
$ 955.9 |
$ 923.5 |
Expeditionary Services |
61.7 |
110.1 |
222.6 |
365.0 |
$ 380.1 |
$ 399.8 |
$ 1,178.5 |
$ 1,288.5 |
|
Gross Profit by Business Segment (In millions - unaudited) |
Three Months Ended February 28, |
Nine Months Ended February 28, |
||
2015 |
2014 |
2015 |
2014 |
|
Aviation Services |
$ 50.7 |
$ 38.3 |
$ 152.8 |
$ 125.5 |
Expeditionary Services |
(0.6) |
27.9 |
26.9 |
89.9 |
$ 50.1 |
$ 66.2 |
$ 179.7 |
$ 215.4 |
|
Diluted Earnings Per Share Calculation |
Three Months Ended February 28, |
Nine Months Ended |
||
2015 |
2014 |
2015 |
2014 |
|
Net income attributable to continuing operations |
$ 1.9 |
$ 16.9 |
$ 27.6 |
$ 52.3 |
Less: Income attributable to participating shares |
(0.1) |
(0.4) |
(0.6) |
(1.2) |
Income from continuing operations attributable to common shareholders |
1.8 |
16.5 |
27.0 |
51.1 |
Income (Loss) from discontinuing operations attributable to common shareholders |
(36.4) |
1.0 |
(32.5) |
3.5 |
Net income for diluted EPS calculation |
($34.6) |
$ 17.5 |
($5.5) |
$ 54.6 |
Diluted shares outstanding |
39.2 |
39.1 |
39.2 |
39.1 |
Diluted earnings per share |
($0.89) |
$0.45 |
($0.15) |
$1.40 |
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/aar-reports-third-quarter-fiscal-year-2015-results-300057326.html
SOURCE
John Fortson, Vice President, Chief Financial Officer | (630) 227-2075 john.fortson@aarcorp.com