AIR - AAR up 9% after FQ1 results beat

AAR ([[AIR]] +9.4%) reported FQ1 sales decline of 26% Y/Y to $400.1M, reflecting commercial customers decrease of 48% Y/Y due to the continued impact of COVID-19. Adj. EPS from continuing operations decreased 70% Y/Y to $0.17 per share.Aviation Services sales $363.6M (-28.9% Y/Y); and Expeditionary Services $37.2M (+25.3% Y/Y). Sales to government and defense customers increased 10% Y/Y.Q1 Gross profit margins decreased to 12.1% from 15.1% a year ago; and operating margin declined by 340 bps to 0.8%.Adj. EBITDA decreased by 48.2% Y/Y to $21.6M; and margin declined by 230 bps to 5.4%. Net debt to Adjusted EBITDA of 1.10.Cash flow provided by operating activities from continuing operations was $39.8M for the quarter (includes $48.5M related to receipt of funding from the CARES Act).“AAR Corp. has a strong balance sheet that would enable it to withstand market disruptions while its competitors exit the market, allowing the company to increase market share,” mentions SA contributor Bashar

For further details see:

AAR up 9% after FQ1 results beat