AAR reports third quarter fiscal year 2024 results

PR Newswire03-22

Record third quarter sales of $567 million, up 9% over the prior year Third quarter GAAP diluted earnings per share from continuing operations of $0.39, compared to $0.62 in Q3 FY2023 Record third ...

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height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nAAR reports third quarter fiscal year 2024 results\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-03-22 04:05 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/aar-reports-third-quarter-fiscal-200500140.html><strong>PR Newswire</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Record third quarter sales of $567 million, up 9% over the prior year\nThird quarter GAAP diluted earnings per share from continuing operations of $0.39, compared to $0.62 in Q3 FY2023\nRecord third ...</p>\n\n<a href=\"https://finance.yahoo.com/news/aar-reports-third-quarter-fiscal-200500140.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK4132","symbol_name":"无线电信业务","start_time":0,"source_url":"https://finance.yahoo.com/news/aar-reports-third-quarter-fiscal-200500140.html","article_id":"2421071029","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/EuwhkUJFLQdNPLHofKg9dA--~B/aD0zMDA7dz00MDA7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/prnewswire.com/8a446a85975d5f18b436ec62bc0a9b2e"],"rights":{"source":"yahoofinance","url":"https://finance.yahoo.com/news/aar-reports-third-quarter-fiscal-200500140.html","rn_cache_url":null,"customStyle":"img, svg { display: none !important; }","selectors":"article","filters":"","directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2421071029","pubTimestamp":1711051500,"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"Record third quarter sales of $567 million, up 9% over the prior year. Third quarter GAAP diluted earnings per share from continuing operations of $0.39, compared to $0.62 in Q3 FY2023. Record third quarter adjusted diluted earnings per share from continuing operations of $0.85, up 13% from $0.75 in Q3 FY2023. Third quarter cash flow provided by operating activities from continuing operations of $20 million. Closed on the acquisition of Triumph Group's Product Support business for $725 million. On March 1, 2024, we completed the acquisition of Triumph Group's Product Support business for $725 million, which was financed using the proceeds from our issuance of $550 million of 6.75% Senior Notes due 2029 and borrowings from our Amended Revolving Credit Facility, which was upsized from $620 million to $825 million. The acquisition of the Product Support business scales our repair capabilities, expands our footprint in the Asia-Pacific region and adds more than 700 talented team members.Op","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4132":"无线电信业务","IE00B19Z4B17.USD":"LEGG MASON ROYCE US SMALL CAP OPPORTUNITY \"A\" (USD) ACC","BK4572":"航空租赁","BK4187":"航天航空与国防","AIR":"AAR公司","USM":"美国无线电话","IE0031619046.USD":"LEGG MASON ROYCE US SMALL CAP OPPORTUNITY \"A\" (USD) INC","IE00B66KJ199.SGD":"LEGG MASON ROYCE US SMALL CAP OPPORTUNITY  \" A\" (SGD) ACC","IE00B7SZL793.SGD":"Legg Mason Royce - US Small Cap Opportunity A Acc SGD-H"},"translate_title":"AAR报告2024财年第三季度业绩","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"USM":1,"AIR":0.9},"content_text":"Record third quarter sales of $567 million, up 9% over the prior year\nThird quarter GAAP diluted earnings per share from continuing operations of $0.39, compared to $0.62 in Q3 FY2023\nRecord third quarter adjusted diluted earnings per share from continuing operations of $0.85, up 13% from $0.75 in Q3 FY2023\nThird quarter cash flow provided by operating activities from continuing operations of $20 million\nClosed on the acquisition of Triumph Group's Product Support business for $725 million\n\nWOOD DALE, Ill., March 21, 2024 /PRNewswire/ -- AAR CORP. (NYSE: AIR), a leading provider of aviation services to commercial and government operators, MROs, and OEMs, today reported third quarter fiscal year 2024 consolidated sales of $567.3 million and income from continuing operations of $14.0 million, or $0.39 per diluted share. For the third quarter of the prior year, the Company reported sales of $521.1 million and income from continuing operations of $21.8 million, or $0.62 per diluted share. Our adjusted diluted earnings per share from continuing operations in the third quarter of fiscal year 2024 were $0.85, compared to $0.75 in the third quarter of the prior year.\nConsolidated third quarter sales increased 9% over the prior year quarter. Our consolidated sales to commercial customers increased 18% over the prior year quarter, primarily due to strong demand for our Parts Supply offerings, MRO services, and increased volumes in our commercial programs activities while our sales to government customers decreased 7%. Sales to commercial customers were 70% of consolidated sales, compared to 65% in the prior year quarter.\nOn March 1, 2024, we completed the acquisition of Triumph Group's Product Support business for $725 million, which was financed using the proceeds from our issuance of $550 million of 6.75% Senior Notes due 2029 and borrowings from our Amended Revolving Credit Facility, which was upsized from $620 million to $825 million.   The acquisition of the Product Support business scales our repair capabilities, expands our footprint in the Asia-Pacific region and adds more than 700 talented team members. \n\"During the quarter, we drove 18% sales growth in our commercial business capitalizing on the continued strong demand for both our parts supply activities and MRO services. We expect commercial demand to remain elevated as the life and high utilization of current generation aircraft continue to extend,\" said John M. Holmes, Chairman, President and Chief Executive Officer of AAR CORP.\nGross profit margin increased from 18.1% in the prior year quarter to 19.4% in the current quarter, primarily due to the favorable impact of our operating efficiency on increased sales volumes.  \nSelling, general, and administrative expenses were $77.0 million in the current quarter, which included $12.2 million related to acquisition and amortization expenses and $2.0 million related to investigation costs. \nOperating margins were 5.8% in the current quarter, compared to 6.5% in the prior year quarter. Adjusted operating margin increased from 7.6% in the prior year quarter to 8.3% in the current year quarter, primarily as a result of the growth in commercial sales. Sequentially, our adjusted operating margin increased from 8.1% to 8.3%, driven by improved profitability in our Parts Supply and Repair & Engineering segments.\nDuring and subsequent to the quarter, we announced multiple new contract awards, including:\n\nMulti-year contract extension and expansion for flight-hour component support services with ASL Airlines\nAgreements with Singapore Airlines and Archer Aviation to provide Trax's software solutions\nNew multi-year distribution agreement with Ontic to supply a strategic selection of military products to the U.S. government\nMulti-year extension with Philippine Airlines for Airinmar's full suite of support services covering both aircraft warranty and value engineering\nMulti-year agreement with Cebu Pacific to supply CFM56-5B engine surplus material\n\nHolmes continued, \"We have expanded our operating margins every quarter for the last three years and our adjusted operating margins are now 50% higher than they were before COVID. We are especially proud to have made this progress in an inflationary environment where labor costs, in particular, have been rising. We believe as we grow our business and integrate the Product Support acquisition, our margins will continue to expand.\"\nNet interest expense for the quarter was $11.3 million, compared to $3.5 million last year. Net interest expense in the current period included $6.1 million related to bridge financing costs for the acquisition of the Product Support business.  Average diluted share count increased from 34.6 million shares in the prior year quarter to 35.2 million shares in the current year quarter. We repurchased 0.1 million shares for $5.1 million during the current year quarter and have $52.5 million remaining on our $150 million share repurchase program.  From a capital deployment perspective, we are prioritizing debt repayment but will evaluate share repurchases along with other attractive investment opportunities to deploy our capital.  \nCash flow provided by operating activities from continuing operations was $20.4 million during the current quarter. As of February 29, 2024, our net debt was $207.8 million and our net leverage was 0.95x.  \nHolmes concluded, \"I am exceptionally proud of the results our team continues to deliver, and we expect the acquisition of the Product Support business to accelerate our growth trajectory.  We will leverage our leadership positions in used serviceable material (USM), new parts distribution, airframe MRO and now, with Product Support, component repair services to drive even greater value for our customers and shareholders.  Additionally, we will maintain our focus on cash generation and portfolio optimization to ensure we maintain a strong balance sheet to enable both organic and inorganic investments.\"\nConference call information \nOn Thursday, March 21, 2024, at 3:45 p.m. Central time, AAR will hold a conference call to discuss the results. The conference call can be accessed by registering at https://register.vevent.com/register/BIdf08c4f6d49042bebbb16a2c5934bf64. Once registered, participants will receive a dial-in number and a unique PIN that will allow them to access the call.\nA replay of the conference call will be available for on-demand listening shortly after the completion of the call at https://edge.media-server.com/mmc/p/rab3gbzx and will remain available for approximately one year.\nAbout AAR\nAAR is a global aerospace and defense aftermarket solutions company with operations in over 20 countries. Headquartered in the Chicago area, AAR supports commercial and government customers through four operating segments: Parts Supply, Repair & Engineering, Integrated Solutions, and Expeditionary Services. Additional information can be found at aarcorp.com.\nContact: Dylan Wolin – Vice President, Strategic & Corporate Development and Treasurer | +1-630-227-2017 | dylan.wolin@aarcorp.com\n\n\n\n\nThis 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, which reflect management's expectations about future conditions, including but not limited to future financial condition, future results of operations, future cash flows, expected activities and benefits under services, supply and distribution agreements, our ability to continue to deploy capital to fund further growth and margin expansion, and the acquisition of the Product Support business (the \"Triumph Group Product Support business\") of Triumph Group, Inc., a Delaware corporation (\"Triumph Group\").Forward-looking statements often address our expected future operating and financial performance and financial condition, or sustainability targets, goals, commitments, and other business plans, and often may also be identified because they contain words such as \"anticipate,\" \"believe,\" \"continue,\" \"could,\" \"estimate,\" \"expect,\" \"intend,\" \"likely,\" \"may,\" \"might,\" \"plan,\" \"potential,\" \"predict,\" \"project,\" \"seek,\" \"should,\" \"target,\" \"will,\" \"would,\" or similar expressions and the negatives of those terms.These forward-looking statements are based on the beliefs of Company management, as well as assumptions and estimates based on information available to the Company as of the dates such assumptions and estimates are made, 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: (i) factors that adversely affect the commercial aviation industry; (ii) the impact of pandemics and other disease outbreaks, such as COVID-19, and similar public health threats on air travel, worldwide commercial activity and our and our customers' ability to source parts and components; (iii) a reduction in the level of sales to the branches, agencies and departments of the U.S. government and their contractors; (iv) cost overruns and losses on fixed-price contracts; (v) nonperformance by subcontractors or suppliers; (vi) changes in or non-compliance with laws and regulations that may affect certain of our aviation and government and defense related activities that are subject to licensing, certification and other regulatory requirements imposed by the FAA, the U.S. State Department and other regulatory agencies, both domestic and foreign; (vii) a reduction in outsourcing of maintenance activity by airlines; (viii) a shortage of the skilled personnel on whom we depend to operate our business, or work stoppages; (ix) competition from other companies, including original equipment manufacturers, some of which have greater financial resources than we do; (x) financial and operational risks arising as a result of operating internationally; (xi) inability to integrate acquisitions effectively and execute our operational and financial plan related to the acquisitions, including the acquisitions of Trax USA Corp. (\"Trax\") and the Triumph Group Product Support business; (xii) failure to realize the anticipated benefits of the acquisitions of Trax and the Triumph Group Product Support business; (xiii) inability to recover our costs due to fluctuations in market values for aviation products and equipment caused by various factors, including reductions in air travel, airline bankruptcies, consolidations and fleet reductions; (xiv) asset impairment charges we may be required to recognize to reflect the non-recoverability of our assets or lowered expectations regarding businesses we have acquired; (xv) threats to our systems technology from equipment failures, cyber or other security threats or other disruptions; (xvi) a need to make significant capital expenditures to keep pace with technological developments in our industry; (xvii) a need to reduce the carrying value of our assets; (xviii) inability to fully execute our stock repurchase program and return capital to our stockholders; (xix) restrictions on paying, or failure to maintain or pay dividends; (xx) limitations on our ability to access the debt and equity capital markets or to draw down funds under loan agreements; (xxi) non-compliance with restrictive and financial covenants contained in certain of our loan agreements; (xxii) non-compliance with laws and regulations relating to the formation, administration and performance of our U.S. government contracts; (xxiii) exposure to product liability and property claims that may be in excess of our liability insurance coverage; (xxiv) the impact of adverse incidents involving, or adverse publicity concerning, our business or the aviation industry generally, which could harm our reputation and results of operations; (xxv) decreased demand for our services due to mandatory groundings of aircraft; (xxvi) impacts from stakeholder and market focus on environmental, social and governance matters; and (xxvii) the costs of compliance, and liability for non-compliance, with environmental regulations, including future requirements regarding climate change and environmental, social and governance matters.  Should one or more of those risks or uncertainties materialize adversely, or should underlying assumptions or estimates prove incorrect, actual results may vary materially from those described.  Those events and uncertainties are difficult or impossible to predict accurately and many are beyond our control.For a discussion of these and other risks and uncertainties, refer to our Annual Report on Form 10-K, Part I, \"Item 1A, Risk Factors\" and our other filings from time to time with the U.S Securities and Exchange Commission.  These events and uncertainties are difficult or impossible to predict accurately and many are beyond the Company's control.  The risks described in these reports are not the only risks we face, as additional risks and uncertainties are not currently known or foreseeable or impossible to predict accurately or risks that are beyond the Company's control or deemed immaterial may materially adversely affect our business, financial condition or results of operations in future periods. We assume 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. \n\n\n\n\n\n\n\n\nAAR CORP. and subsidiaries \n\n\n\n\n\n\n\n\n\n\n\nCondensed consolidated statements of   income (In millions except per share data - unaudited) \n Three months ended  February 29/28, \n\n Nine months ended  February 29/28, \n\n\n\n2024 \n2023 \n\n2024 \n2023 \n\n\n\n\n\n\n\n\nSales \n$ 567.3 \n\n$ 521.1 \n\n$ 1,662.4 \n\n$ 1,437.2 \n\n\nCost of sales \n457.0 \n\n426.8 \n\n1,347.4 \n\n1,175.2 \n\n\nGross profit \n110.3 \n\n94.3 \n\n315.0 \n\n262.0 \n\n\n     Provision for credit losses \n0.1 \n\n1.9 \n\n0.5 \n\n1.8 \n\n\n     Selling, general and administrative \n77.0 \n\n56.7 \n\n217.4 \n\n159.6 \n\n\n     Loss from joint ventures \n(0.2) \n\n(1.7) \n\n(0.5) \n\n(3.0) \n\n\nOperating income  \n33.0 \n\n34.0 \n\n96.6 \n\n97.6 \n\n\nPension settlement charge \n–– \n\n–– \n\n(26.7) \n\n–– \n\n\nLosses related to sale and exit of business \n(1.0) \n\n(0.4) \n\n(2.6) \n\n(0.5) \n\n\nInterest expense, net \n(11.3) \n\n(3.5) \n\n(22.3) \n\n(6.5) \n\n\nOther income (expense), net \n(0.2) \n\n(0.3) \n\n(0.3) \n\n0.4 \n\n\nIncome from continuing operations before      income tax expense \n20.5 \n\n29.8 \n\n44.7 \n\n91.0 \n\n\nIncome tax expense \n6.5 \n\n8.0 \n\n7.5 \n\n24.4 \n\n\nIncome from continuing operations  \n14.0 \n\n21.8 \n\n37.2 \n\n66.6 \n\n\nIncome from discontinued operations \n–– \n\n–– \n\n–– \n\n0.4 \n\n\nNet income \n$ 14.0 \n\n$ 21.8 \n\n$ 37.2 \n\n$ 67.0 \n\n\n\n\n\n\n\n\n\n\n\n\nEarnings per share – Basic: \n\n\n\n\n\n\n\n\n\n     Earnings from continuing operations \n$ 0.40 \n\n$ 0.63 \n\n$ 1.05 \n\n$ 1.90 \n\n\n     Earnings from discontinued operations \n–– \n\n–– \n\n–– \n\n0.01 \n\n\n     Earnings per share – Basic \n$ 0.40 \n\n$ 0.63 \n\n$ 1.05 \n\n$ 1.91 \n\n\n\n\n\n\n\n\n\n\n\n\nEarnings per share – Diluted: \n\n\n\n\n\n\n\n\n\n     Earnings from continuing operations \n$ 0.39 \n\n$0.62 \n\n$ 1.04 \n\n$ 1.87 \n\n\n     Earnings from discontinued operations \n–– \n\n–– \n\n–– \n\n0.01 \n\n\n     Earnings per share – Diluted \n$ 0.39 \n\n$0.62 \n\n$ 1.04 \n\n$ 1.88 \n\n\n\n\n\n\n\n\n\n\n\n\nShare data: \n\n\n\n\n\n\n\n\n\nWeighted average shares outstanding – Basic \n34.8 \n\n34.1 \n\n34.9 \n\n34.6 \n\n\nWeighted average shares outstanding – Diluted \n35.2 \n\n34.6 \n\n35.3 \n\n35.0 \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nAAR CORP. and subsidiaries \n\n\n\n\n\n\n\n\n  Condensed consolidated balance sheets(In millions) \nFebruary 29, 2024 \n\nMay 31, 2023 \n\n\n\n(unaudited) \n\n\n\n\nASSETS \n\n\n\n\n\nCash and cash equivalents \n$ 69.2 \n\n$ 68.4 \n\n\nRestricted cash \n14.4 \n\n13.4 \n\n\nAccounts receivable, net \n257.1 \n\n241.3 \n\n\nContract assets \n86.5 \n\n86.9 \n\n\nInventories, net \n671.5 \n\n574.1 \n\n\nRotable assets and equipment on or available for lease \n74.5 \n\n50.6 \n\n\nAssets of discontinued operations \n10.8 \n\n13.5 \n\n\nOther current assets \n56.0 \n\n49.7 \n\n\n     Total current assets \n1,240.0 \n\n1,097.9 \n\n\nProperty, plant, and equipment, net \n134.1 \n\n126.1 \n\n\nGoodwill and intangible assets, net \n240.5 \n\n239.5 \n\n\nRotable assets supporting long-term programs \n177.9 \n\n178.1 \n\n\nOperating lease right-of-use assets, net \n89.5 \n\n63.7 \n\n\nOther non-current assets \n139.8 \n\n127.8 \n\n\n     Total assets \n$ 2,021.8 \n\n$ 1,833.1 \n\n\n\n\n\n\n\n\nLIABILITIES AND EQUITY \n\n\n\n\n\nAccounts payable and accrued liabilities \n$ 417.7 \n\n$ 338.1 \n\n\nLiabilities of discontinued operations \n10.5 \n\n13.4 \n\n\n     Total current liabilities \n428.2 \n\n351.5 \n\n\nLong-term debt \n274.7 \n\n269.7 \n\n\nOperating lease liabilities \n73.0 \n\n48.2 \n\n\nOther liabilities and deferred revenue \n77.9 \n\n64.6 \n\n\n     Total liabilities \n853.8 \n\n734.0 \n\n\nEquity \n1,168.0 \n\n1,099.1 \n\n\n     Total liabilities and equity \n$ 2,021.8 \n\n$ 1,833.1 \n\n\n\n\n\n\n\n\nAAR CORP. and subsidiaries \n\n\n\n\n\n Condensed consolidated statements of cash flows(In millions – unaudited) \nThree months ended February 29/28,  \n\nNine months ended February 29/28,  \n\n\n\n2024 \n\n2023 \n\n2024 \n\n2023 \n\n\nCash flows provided by (used in) operating activities: \n\n\n\n\n\n\n\n\n\n  Net income \n$ 14.0 \n\n$ 21.8 \n\n$ 37.2 \n\n$ 67.0 \n\n\n  Income from discontinued operations \n–– \n\n–– \n\n–– \n\n(0.4) \n\n\n  Income from continuing operations \n14.0 \n\n21.8 \n\n37.2 \n\n66.6 \n\n\n  Adjustments to reconcile income from continuing operations to net      cash provided by (used in) operating activities \n\n\n\n\n\n\n\n\n\n    Depreciation and amortization        \n8.8 \n\n6.9 \n\n25.9 \n\n20.2 \n\n\n    Stock-based compensation expense \n3.6 \n\n3.5 \n\n11.5 \n\n10.4 \n\n\n    Pension settlement charge \n–– \n\n–– \n\n26.7 \n\n–– \n\n\n    Provision for credit losses               \n0.1 \n\n1.9 \n\n0.5 \n\n1.8 \n\n\n    Changes in certain assets and liabilities: \n\n\n\n\n\n\n\n\n\n      Accounts receivable \n(11.0) \n\n(14.4) \n\n(17.3) \n\n(26.4) \n\n\n      Contract assets               \n12.9 \n\n(9.2) \n\n0.5 \n\n(18.5) \n\n\n      Inventories       \n(25.8) \n\n24.6 \n\n(97.3) \n\n(20.2) \n\n\n      Rotable assets and equipment on or available for short-term lease         \n(19.3) \n\n0.7 \n\n(23.8) \n\n1.9 \n\n\n      Prepaid expenses and other current assets        \n(1.1) \n\n(8.7) \n\n(11.3) \n\n(8.8) \n\n\n      Rotable assets supporting long-term programs \n(2.9) \n\n(5.1) \n\n(6.9) \n\n(13.2) \n\n\n      Accounts payable and accrued liabilities \n46.3 \n\n8.1 \n\n93.5 \n\n(13.1) \n\n\n      Deferred revenue on long-term programs \n(4.1) \n\n(6.0) \n\n(13.6) \n\n2.2 \n\n\n      Other \n(1.1) \n\n(6.7) \n\n(6.3) \n\n(24.4) \n\n\n  Net cash provided by (used in) operating activities – continuing operations \n20.4 \n\n17.4 \n\n19.3 \n\n(21.5) \n\n\n  Net cash used in operating activities – discontinued operations \n–– \n\n–– \n\n(0.2) \n\n(0.4) \n\n\n  Net cash provided by (used in) operating activities \n20.4 \n\n17.4 \n\n19.1 \n\n(21.9) \n\n\n\n\n\n\n\n\n\n\n\n\nCash flows used in investing activities: \n\n\n\n\n\n\n\n\n\n  Property, plant, and equipment expenditures          \n(5.8) \n\n(9.7) \n\n(22.2) \n\n(22.5) \n\n\n  Other     \n(0.7) \n\n0.7 \n\n(4.6) \n\n(4.8) \n\n\nNet cash used in investing activities \n(6.5) \n\n(9.0) \n\n(26.8) \n\n(27.3) \n\n\n\n\n\n\n\n\n\n\n\n\nCash flows provided by (used in) financing activities: \n\n\n\n\n\n\n\n\n\n  Short-term borrowings (repayments) on Revolving Credit Facility, net         \n–– \n\n(10.0) \n\n5.0 \n\n88.0 \n\n\n  Purchase of treasury stock                \n(5.1) \n\n–– \n\n(5.1) \n\n(50.1) \n\n\n  Financing costs   \n(0.8) \n\n(1.9) \n\n(0.8) \n\n(1.9) \n\n\n  Other     \n0.1 \n\n6.4 \n\n10.4 \n\n8.5 \n\n\nNet cash provided by (used in) financing activities \n(5.8) \n\n(5.5) \n\n9.5 \n\n44.5 \n\n\nEffect of exchange rate changes on cash         \n–– \n\n–– \n\n–– \n\n(0.1) \n\n\nIncrease (Decrease) in cash and cash equivalents             \n8.1 \n\n2.9 \n\n1.8 \n\n(4.8) \n\n\nCash, cash equivalents, and restricted cash at beginning of period                \n75.5 \n\n51.2 \n\n81.8 \n\n58.9 \n\n\nCash, cash equivalents, and restricted cash at end of period            \n$ 83.6 \n\n$ 54.1 \n\n$ 83.6 \n\n$ 54.1 \n\n\n\n\n\n\n\n\nAAR CORP. and subsidiaries \n\n\n\n\n\n\n\n\nThird-party sales by segment (In millions - unaudited) \nThree months ended February 29/28, \n\nNine months ended February 29/28, \n\n\n\n2024 \n2023 \n\n2024 \n2023 \n\n\nParts Supply \n$ 242.3 \n$ 227.6 \n\n$    706.7 \n$ 579.8 \n\n\nRepair & Engineering \n140.8 \n128.0 \n\n423.7 \n390.4 \n\n\nIntegrated Solutions \n165.5 \n143.5 \n\n478.4 \n398.6 \n\n\nExpeditionary Services  \n18.7 \n22.0 \n\n53.6 \n68.4 \n\n\n\n$ 567.3 \n$ 521.1 \n\n$ 1,662.4 \n$ 1,437.2 \n\n\n\n\n\n\n\n\nOperating income by segment (In millions- unaudited) \nThree months ended February 29/28, \n\nNine months ended February 29/28, \n\n\n\n2024 \n2023 \n\n2024 \n2023 \n\n\nParts Supply \n$ 31.1 \n$ 25.1 \n\n$ 74.6 \n$ 64.7 \n\n\nRepair & Engineering \n11.5 \n9.8 \n\n31.9 \n25.8 \n\n\nIntegrated Solutions \n8.6 \n7.0 \n\n22.7 \n22.4 \n\n\nExpeditionary Services   \n0.9 \n1.9 \n\n3.1 \n6.2 \n\n\n\n52.1 \n43.8 \n\n132.3 \n119.1 \n\n\nCorporate and other \n(19.1) \n(9.8) \n\n(35.7) \n(21.5) \n\n\n\n$ 33.0 \n$ 34.0 \n\n$ 96.6 \n$ 97.6 \n\n\n\n\nAdjusted income from continuing operations, adjusted diluted earnings per share from continuing operations, adjusted operating margin, adjusted cash provided by (used in) operating activities, adjusted EBITDA, net debt, and net debt to adjusted EBITDA (net leverage) are \"non-GAAP financial measures\" as defined in Regulation G of the Securities Exchange Act of 1934, as amended (the \"Exchange Act\"). We believe these non-GAAP financial measures are relevant and useful for investors as they illustrate our core operating performance, cash flows and leverage unaffected by the impact of certain items that management does not believe are indicative of our ongoing and core operating activities. When reviewed in conjunction with our GAAP results and the accompanying reconciliations, we believe these non-GAAP financial measures provide additional information that is useful to gain an understanding of the factors and trends affecting our business and provide a means by which to compare our operating performance and leverage against that of other companies in the industries we compete.  These non-GAAP measures should be considered as a supplement to, and not as a substitute for, or superior to, the corresponding measures calculated in accordance with GAAP.  \nOur non-GAAP financial measures reflect adjustments for certain items including, but not limited to, the following:\n\nInvestigation and remediation compliance costs comprised of legal and professional fees related to addressing potential violations of the U.S. Foreign Corrupt Practices Act, which we self-reported to the U.S. Department of Justice and other agencies.\nContract termination/restructuring costs comprised of gains and losses that are recognized at the time of modifying, terminating, or restructuring certain customer and vendor contracts, including forward loss provisions on long-term contracts.\nCustomer bankruptcy and credit charges (recoveries) reflecting the impact of bankruptcies and other credit charges primarily resulting from the significant impact of the COVID-19 pandemic on the commercial aviation industry.\nLosses related to the sale and exit from our Composites manufacturing business, including legal fees for the performance guarantee associated with the Composites' A220 aircraft contract.\nExpenses associated with recent acquisition activity including professional fees for legal, due diligence, and other acquisition activities, bridge financing fees, intangible asset amortization, and compensation expense related to contingent consideration and retention agreements.\nPension settlement charges associated with the settlement and termination of our frozen defined benefit pension plan.\nLegal judgments related to or impacted by the Russian/Ukraine conflict.\n\nAdjusted EBITDA is income from continuing operations before interest income (expense), other income (expense), income taxes, depreciation and amortization, stock-based compensation, and items of an unusual nature including but not limited to business divestitures and acquisitions, workforce actions, COVID-related subsidies and costs, impairment and exit charges, facility consolidation and repositioning costs, investigation and remediation compliance costs, equity investment gains and losses, pension settlement charges, legal judgments, acquisition and amortization expenses from recent acquisition activity, and significant customer events such as early terminations, contract restructurings, forward loss provisions, and bankruptcies.\nPursuant to the requirements of Regulation G of the Exchange Act, we are providing the following tables that reconcile the above-mentioned non-GAAP financial measures to the most directly comparable GAAP financial measures:\n\n\n\n\nAdjusted income from continuing operations (In millions - unaudited) \nThree months  ended February 29/28, \n\nNine months  ended February 29/28, \n\n\n\n2024 \n2023 \n\n2024 \n2023 \n\n\nIncome from continuing operations \n$ 14.0 \n$ 21.8 \n\n$ 37.2 \n$ 66.6 \n\n\nAcquisition and amortization expenses \n18.3 \n1.9 \n\n24.2 \n1.9 \n\n\nInvestigation and remediation compliance costs \n2.0 \n1.2 \n\n5.7 \n3.1 \n\n\nLosses related to sale and exit of business \n1.0 \n0.4 \n\n2.6 \n0.5 \n\n\nRussian bankruptcy court judgment \n–– \n1.8 \n\n11.2 \n1.8 \n\n\nPension settlement charge \n–– \n–– \n\n26.7 \n–– \n\n\nContract termination/restructuring costs and loss    provisions, net \n –– \n –– \n\n –– \n 2.0 \n\n\nCustomer bankruptcy and credit recoveries \n–– \n1.8 \n\n–– \n1.5 \n\n\nGains on equity investments \n–– \n–– \n\n–– \n(0.9) \n\n\nGovernment COVID-related subsidies \n–– \n(0.9) \n\n–– \n(1.6) \n\n\nCosts (Reversals) related to strategic projects \n–– \n–– \n\n–– \n(0.2) \n\n\nSeverance charges \n–– \n–– \n\n–– \n0.1 \n\n\nTax effect on adjustments (a) \n(5.0) \n(1.6) \n\n(20.5) \n(2.1) \n\n\nAdjusted income from continuing operations \n$ 30.3 \n$ 26.4 \n\n$ 87.1 \n$ 72.7 \n\n\n\n\n\n\n\n\n\n\n\n(a)       Calculation uses estimated statutory tax rates on non-GAAP adjustments except for the tax effect of the pension settlement charge, which includes income taxes previously recognized in accumulated other comprehensive loss. \n\n\n\n\n\n\n\n\nAdjusted diluted earnings per share from continuing operations (unaudited) \nThree months  ended February 29/28, \n\nNine months ended February 29/28, \n\n\n\n2024 \n2023 \n\n2024 \n2023 \n\n\nDiluted earnings per share from continuing operations  \n$ 0.39 \n$ 0.62 \n\n$ 1.04 \n$ 1.88 \n\n\nAcquisition and amortization expenses \n0.52 \n0.06 \n\n0.69 \n0.06 \n\n\nInvestigation and remediation compliance costs \n0.06 \n0.04 \n\n0.16 \n0.09 \n\n\nLosses related to sale and exit of business \n0.02 \n0.01 \n\n0.07 \n0.01 \n\n\nRussian bankruptcy court judgment \n–– \n0.05 \n\n0.32 \n0.05 \n\n\nPension settlement charge \n–– \n–– \n\n0.76 \n–– \n\n\nContract termination/restructuring costs and loss provisions, net \n–– \n–– \n\n–– \n0.06 \n\n\nCustomer bankruptcy and credit recoveries \n–– \n0.05 \n\n–– \n0.04 \n\n\nGains on equity investments \n–– \n–– \n\n–– \n(0.02) \n\n\nGovernment COVID-related subsidies \n–– \n(0.03) \n\n–– \n(0.05) \n\n\nTax effect on adjustments (a) \n(0.14) \n(0.05) \n\n(0.58) \n(0.07) \n\n\nAdjusted diluted earnings per share from continuing operations \n$ 0.85 \n$ 0.75 \n\n$ 2.46 \n$ 2.05 \n\n\n\n\n\n\n\n\n\n\n\n(b)       Calculation uses estimated statutory tax rates on non-GAAP adjustments except for the tax effect of the pension settlement charge, which includes income taxes previously recognized in accumulated other comprehensive loss. \n\n\n\n\n\n\n\n\nAdjusted operating margin (In millions - unaudited) \n Three months ended  \n\n\n\nFebruary 29, 2024 \nNovember 30, 2023 \nFebruary 28,  2023 \n\n\nSales \n$ 567.3 \n$ 545.4 \n$ 521.1 \n\n\n\n\n\n\n\n\nOperating income \n$ 33.0 \n$ 38.3 \n$34.0 \n\n\nAcquisition and amortization expenses \n12.2 \n3.1 \n1.9 \n\n\nInvestigation and remediation costs \n2.0 \n2.6 \n1.2 \n\n\nRussian bankruptcy court judgment \n–– \n–– \n1.8 \n\n\nCustomer bankruptcy and credit recoveries \n–– \n–– \n1.8 \n\n\nGovernment COVID-related subsidies \n–– \n–– \n(0.9) \n\n\nAdjusted operating income \n$ 47.2 \n$ 44.0 \n$ 39.8 \n\n\n\n\n\n\n\n\nAdjusted operating margin \n8.3 % \n8.1 % \n7.6 % \n\n\n\n\n\n\n\n\nAdjusted cash provided by (used in) operating activities from continuing operations (In millions - unaudited) \nThree months  ended February 29/28, \n\nNine months ended February 29/28, \n\n\n\n2024 \n2023 \n\n2024 \n2023 \n\n\nCash provided by (used in) operating activities from    continuing operations \n $ 20.4 \n $ 17.4 \n\n $ 19.3 \n $ (21.5) \n\n\nAmounts outstanding on accounts receivable financing program: \n\n\n\n\n\n\n\n     Beginning of period \n13.7 \n16.1 \n\n12.8 \n15.0 \n\n\n     End of period \n(13.7) \n(16.3) \n\n(13.7) \n(16.3) \n\n\nAdjusted cash provided by (used in) operating activities from    continuing operations \n $ 20.4 \n $ 17.2 \n\n $ 18.4 \n $ (22.8) \n\n\n\n\n\n\n\n\nAdjusted EBITDA (In millions - unaudited) \nThree months  ended February 29/28, \n\nNine months  ended February 29/28, \n\nYear ended May 31,  \n\n\n\n2024 \n2023 \n\n2024 \n2023 \n\n2023 \n\n\nNet income \n$14.0 \n$21.8 \n\n$  37.2 \n$  67.0 \n\n$  90.2 \n\n\nIncome from discontinued operations \n–– \n–– \n\n–– \n(0.4) \n\n(0.4) \n\n\nIncome tax expense \n6.5 \n8.0 \n\n7.5 \n24.4 \n\n31.4 \n\n\nOther expense (income), net \n0.2 \n0.3 \n\n0.3 \n(0.4) \n\n0.8 \n\n\nInterest expense, net \n11.3 \n3.5 \n\n22.3 \n6.5 \n\n11.2 \n\n\nDepreciation and amortization \n8.8 \n6.9 \n\n25.9 \n20.2 \n\n27.9 \n\n\nAcquisition-related expenses \n11.2 \n1.9 \n\n15.1 \n1.9 \n\n6.2 \n\n\nInvestigation and remediation costs \n2.0 \n1.2 \n\n5.7 \n3.1 \n\n4.7 \n\n\nLosses related to sale and exit of business \n1.0 \n0.4 \n\n2.6 \n0.5 \n\n0.7 \n\n\nPension settlement charge \n–– \n–– \n\n26.7 \n–– \n\n–– \n\n\nRussian bankruptcy court judgment \n–– \n1.8 \n\n11.2 \n1.8 \n\n1.8 \n\n\nCustomer bankruptcy and credit charges \n–– \n1.8 \n\n–– \n1.5 \n\n1.5 \n\n\nGovernment COVID-related subsidies \n–– \n(0.9) \n\n–– \n(1.6) \n\n(1.6) \n\n\nContract termination/restructuring costs and loss     provisions, net \n –– \n –– \n\n –– \n 2.0 \n\n 2.0 \n\n\nCosts (Reversals) related to strategic projects \n–– \n–– \n\n–– \n(0.2) \n\n(0.2) \n\n\nSeverance charges \n–– \n–– \n\n–– \n0.1 \n\n0.1 \n\n\nStock-based compensation \n3.6 \n3.5 \n\n11.5 \n10.4 \n\n13.5 \n\n\nAdjusted EBITDA \n$ 58.6 \n$ 50.2 \n\n$ 166.0 \n$ 136.8 \n\n$ 189.8 \n\n\n\n\n\n\n\n\nNet debt (In millions - unaudited) \nFebruary 29, 2024 \n\nFebruary 28, 2023 \n\n\nTotal debt \n$277.0 \n\n$188.0 \n\n\nLess: Cash and cash equivalents \n(69.2) \n\n(52.7) \n\n\nNet debt \n$207.8 \n\n$135.3 \n\n\n\n\n\n\n\n\nNet debt to adjusted EBITDA (In millions - unaudited) \n\n\n\nAdjusted EBITDA for the year ended May 31, 2023 \n$ 189.8 \n\n\nLess:  Adjusted EBITDA for the nine months ended February 28, 2023 \n(136.8) \n\n\nPlus:  Adjusted EBITDA for the nine months ended February 29, 2024 \n166.0 \n\n\nAdjusted EBITDA for the twelve months ended February 29, 2024 \n$ 219.0 \n\n\nNet debt at February 29, 2024 \n$ 207.8 \n\n\nNet debt to Adjusted EBITDA \n0.95 \n\n\n\n\n\n\n\n\n\n View original content to download multimedia:https://www.prnewswire.com/news-releases/aar-reports-third-quarter-fiscal-year-2024-results-302096396.html\nSOURCE AAR CORP.","kind":null,"is_publish_news":null,"is_publish_highlight":null,"is_publish_live":null,"is_publish_wemedia":null,"editions":null,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.22.4","shortVersion":"4.22.4","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2421071029"}