AAR releases Q4 2019 financial results

Darren Wood
By Darren Wood July 11, 2019 10:38

AAR releases Q4 2019 financial results

AAR has reported that it completed consolidated sales of $562.7 million in its fourth quarter 2019 results, up from $473.5 million reported during the same period last year.

Reported results include tax benefits which reduced income tax expense by $5.1 million in the current quarter. Reported results in the prior year’s quarter included tax benefits of $3.2 million. 

John Holmes, president and chief executive officer of AAR, said: “We are exceptionally pleased with our strong performance in the fourth quarter.  Our double-digit organic sales growth and solid cash flow generation were driven by the continued strength in our parts supply and programs activities.”

During the quarter the firm also announced a five-year extension of its engine support contract with MTU Maintenance. 

We will continue to provide reliable, on-time engine parts to MTU via our Hannover, Germany facility. Subsequent to the end of the quarter, we also announced a new distribution agreement with Woodward to distribute spare piece parts in support of U.S. Government fleets across multiple engine platforms.

Sales to government and defense customers were 35% of consolidated sales compared to 26% in the prior year’s quarter reflecting growth from the WASS program and other government programs. 

Fourth quarter sales to commercial customers, which also increased during the period, represented 65% of consolidated sales compared to 74% of consolidated sales in the fourth quarter of last year.

Gross profit margin in the current quarter was 16.8% compared to 17.9% in the prior year quarter due primarily to the mix of products and services sold. 

Selling, general and administrative expenses as a percentage of sales were 11.2% for the quarter, compared to 13.1% last year, reflecting continued leverage of our cost structure to support our double-digit sales growth. 

Net interest expense for the quarter was $2.1 million compared to $2.2 million last year. 

Darren Wood
By Darren Wood July 11, 2019 10:38