AAR Reports Third Quarter Fiscal Year 2017 Results
Sales in Aviation Services increased 9.6% in the quarter reflecting continued strong performance for the Company's industry leading supply chain management solutions. Sales in Expeditionary Services also increased 1.6% as volumes continue to recover in the mobility business.
The Company announced significant new business wins in the quarter including the award of a comprehensive supply chain management and component repair agreement with Allegiant Air covering their fleet of A320 aircraft and an agreement to provide landing gear overhaul and exchange services for
Third quarter sales to commercial customers represented 68.1% of consolidated sales, compared to 60.6% of consolidated sales in the third quarter of last year. Sales to government and defense customers represented 31.9% of consolidated sales compared to 39.4% in the prior year's quarter.
Selling, general and administrative expenses as a percentage of sales were 10.6% for the quarter, compared to 10.5% last year. During the quarter, we incurred approximately
Net interest expense from continuing operations for the quarter was
Net debt at
"We are very pleased with our progress during the quarter as we continue to use our strong financial position to support our customers," said
Conference Call Information
AAR will hold its quarterly conference call at
About AAR
AAR is a global aftermarket solutions company that employs more than 4,500 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
AAR CORP. and Subsidiaries |
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Consolidated Statements of Income (In millions except per share data - unaudited) |
Three Months Ended |
Nine Months Ended |
|||||
2017 |
2016 |
2017 |
2016 |
||||
Sales |
$446.7 |
$412.1 |
$1,275.3 |
$1,230.3 |
|||
Cost and expenses: |
|||||||
Cost of sales |
377.7 |
352.8 |
1,078.6 |
1,058.0 |
|||
Selling, general and administrative |
47.4 |
43.1 |
138.5 |
126.2 |
|||
Loss from aircraft joint ventures |
(0.2) |
— |
(0.2) |
(0.4) |
|||
Operating income |
21.4 |
16.2 |
58.0 |
45.7 |
|||
Loss on extinguishment of debt |
— |
— |
— |
(0.4) |
|||
Interest expense |
(1.5) |
(1.7) |
(4.0) |
(5.2) |
|||
Interest income |
0.1 |
0.1 |
0.2 |
0.2 |
|||
Income from continuing operations before income tax expense |
20.0 |
14.6 |
54.2 |
40.3 |
|||
Income tax expense |
6.9 |
4.7 |
19.1 |
13.8 |
|||
Income from continuing operations |
13.1 |
9.9 |
35.1 |
26.5 |
|||
Income (Loss) from discontinued operations |
0.6 |
(5.1) |
0.2 |
9.2 |
|||
Net income |
$13.7 |
$4.8 |
$35.3 |
$35.7 |
|||
Earnings (Loss) per share – basic: |
|||||||
Continuing operations |
$0.39 |
$0.29 |
$1.03 |
$0.76 |
|||
Discontinued operations |
0.02 |
(0.15) |
0.01 |
0.27 |
|||
Earnings per share – Basic |
$0.41 |
$0.14 |
$1.04 |
$1.03 |
|||
Earnings (Loss) per share – diluted: |
|||||||
Continuing operations |
$0.38 |
$0.29 |
$1.02 |
$0.76 |
|||
Discontinued operations |
0.02 |
(0.15) |
0.01 |
0.27 |
|||
Earnings per share – Diluted |
$0.40 |
$0.14 |
$1.03 |
$1.03 |
|||
Share Data: |
|||||||
Average shares outstanding – Basic |
33.7 |
34.2 |
33.9 |
34.5 |
|||
Average shares outstanding – Diluted |
34.2 |
34.4 |
34.3 |
34.7 |
|||
AAR CORP. and Subsidiaries |
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Consolidated Balance Sheet Highlights (In millions except per share data) |
February 28, |
May 31, |
||
(Unaudited) |
||||
Cash and cash equivalents |
$ 10.1 |
$31.2 |
||
Current assets |
893.1 |
881.7 |
||
Current liabilities (excluding debt accounts) |
340.8 |
329.4 |
||
Net property, plant and equipment |
211.9 |
238.1 |
||
Total assets |
1,502.1 |
1,456.0 |
||
Total debt |
172.8 |
150.1 |
||
Stockholders' equity |
885.7 |
865.8 |
||
Book value per share |
$25.82 |
$25.10 |
||
Shares outstanding |
34.3 |
34.5 |
||
Sales By Business Segment (In millions - unaudited) |
Three Months Ended |
Nine Months Ended |
||
2017 |
2016 |
2017 |
2016 |
|
Aviation Services |
$ 382.8 |
$ 349.2 |
$ 1,064.1 |
$ 1,024.6 |
Expeditionary Services |
63.9 |
62.9 |
211.2 |
205.7 |
$ 446.7 |
$ 412.1 |
$ 1,275.3 |
$ 1,230.3 |
|
Gross Profit by Business Segment (In millions - unaudited) |
Three Months Ended |
Nine Months Ended |
||
2017 |
2016 |
2017 |
2016 |
|
Aviation Services |
$ 63.4 |
$ 58.6 |
$ 172.8 |
$ 166.7 |
Expeditionary Services |
5.6 |
0.7 |
23.9 |
5.6 |
$ 69.0 |
$ 59.3 |
$ 196.7 |
$ 172.3 |
|
Note: Pursuant to SEC Regulation G, the Company has included the following reconciliation of financial measure reported on a non-GAAP basis to compare financial measures reported on the basis of Generally Accepted Accounting Principles ("GAAP").
Net Debt (In millions- unaudited) |
February 28, |
February 29, |
|
Total debt |
$172.8 |
$195.7 |
|
Less: Cash and cash equivalents |
(10.1) |
(50.4) |
|
Net debt |
$162.7 |
$145.3 |
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SOURCE AAR
Jason Secore, Vice President, Treasurer, (630) 227-2075, jason.secore@aarcorp.com