AAR Announces First Quarter Results
WOOD DALE, Ill., /PRNewswire/ -- AAR (NYSE: AIR) today reported diluted earnings per share of $0.02 and net income of $0.5 million for the first quarter of Fiscal 2002, which ended August 31, 2001. Sales for the quarter were $203.0 million. These results are consistent with the Company's preliminary earnings report released on September 10, 2001. A copy of that press release is available on the Company's web site, aarcorp.com.
The Company is comprised of a balanced portfolio of businesses serving many aspects of the commercial and military aviation/aerospace industry. Supporting commercial airlines is a major element of AAR's business. Accordingly, in view of the Company's recent results and in light of the unprecedented tragedy and its impact on the commercial airline industry, AAR has taken immediate steps to reduce its indirect, selling, general and administrative cost structure in excess of $12 million annually. These savings will be obtained through a combination of workforce reductions, facility consolidations and reduction of non-strategic spending.
"Despite this industry upheaval, we are encouraged by the dialogue that we have had with our airline customers as they look for effective alternatives to navigate their way through these uncertain times," said Storch. "We see our role in the industry as a cost reduction resource for our customers. We also support the U.S. Government's initiative to provide financial assistance to the commercial airline industry, which is a vital link to worldwide economic well being."
The Company expects to see an increased demand for products and services in support of the U.S. Military. AAR provides a broad range of military support capabilities including rapid deployment products, aircraft maintenance, and spare parts repair and supply. Sales in support of the U.S. Government represented approximately 16% of the Company's sales during the past twelve months.
"AAR's strong financial condition, broad array of cost effective products and services, and our diverse and worldwide customer base will enable us to progress these trying times as we have done many times before in our fifty year history," said Storch.
AAR would like to express its deepest sympathies to those affected by last week's tragic events. The Company extends its gratitude to all men and women who are assisting in the World Trade Center relief effort. AAR fully supports the efforts of President Bush, his administration, and the worldwide coalition to combat terrorism. "Our hearts go out to the families and friends of those lost or injured," said AAR President and CEO David P. Storch. "We would like to further express our condolences to the United Airlines and American Airlines extended families."
AAR will hold its quarterly conference call at 10:00 AM (CST) on Thursday, September 20, 2001. The conference call can be accessed via dial-in (1-719-457-2641; conference code 490850). A replay of the call will be available (1-719-457-0820; conference code 490850) until 12 AM on Thursday, September 27, 2001.
AAR (NYSE: AIR) is the preeminent provider of products and value-added services to the worldwide aerospace/aviation industry. Products and services include proprietary inventory management and logistic support services, encompassing supply, repair and manufacture of spare parts and systems. Headquartered in Wood Dale, Illinois, AAR serves commercial and government aircraft fleet operators and independent service customers throughout the world. Further information can be found at www.aarcorp.com .
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, depending on a variety of factors, including: general economic conditions, implementation of information technology systems, integration of acquisitions, marketplace competition, economic and aviation/aerospace market stability and Company profitability. 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 publicly release the result of any revisions that may be made to 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.
AAR CORP. and Subsidiaries Comparative Statement of Earnings Three Months Ended (In thousands except per share data) August 31, 2001 2000 (Unaudited) Sales $202,993 $224,888 Pass through sales 0 16,882 Total sales 202,993 241,770 Gross profit 29,140 34,415 SG&A 23,695 24,544 Operating income 5,445 9,871 Interest expense 5,544 5,988 Interest income 747 506 Pretax income 648 4,389 Net income 486 3,159 Earnings Per Share-Basic $0.02 $0.12 Earnings Per Share-Diluted $0.02 $0.12 Average shares outstanding-Basic 26,945 26,859 Average shares outstanding-Diluted 27,209 26,962 Balance Sheet Highlights August 31, May 31, (In thousands except per share data) 2001 2001 (Unaudited) (Derived from audited financial statements) Current assets $540,105* $485,856 Current liabilities 172,398* 125,392 Working capital 367,707* 360,464 Total assets 758,503 701,854 Long-term debt 189,920 179,987 Stockholders' equity 340,147 340,212 Book value per share $ 12.62 $ 12.63 Shares outstanding 26,958 26,937 * Reflects the recent issuance of $75 million of long-term notes in anticipation of repayment of $65 million of notes maturing in November Sales and Gross Profit By Segment (In thousands) Three Months Ended August 31, 2001 2000 (Unaudited) (Unaudited) Sales Gross Profit Sales Gross Profit Aircraft & Engines $84,079 $11,149 $97,673 $15,246 Airframe & Accessories 96,959 15,929 104,209 16,264 Manufacturing 21,955 2,062 23,006 2,905 $202,993 $29,140 $224,888 34,415 Pass Through Sales 0 0 16,882 0 $202,993 $29,140 $241,770 $34,415SOURCE AAR CORP.
CONTACT: Timothy J. Romenesko, Vice President, Chief Financial Officer of AAR, +1-630-227-2090, firstname.lastname@example.org
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