AAR Q4 Profit Down - Quick Facts

(RTTNews) - AAR Corp. (AIR) reported that its net income attributable to the company for the fourth quarter fiscal year 2015 decreased to $15.1 million or $0.36 per share from $17.1 million or $0.43 per share in the fourth quarter of the prior fiscal year. The results in the fourth quarter Fiscal Year 2015 were impacted by costs incurred to streamline operations and convert underperforming assets to cash.

The Company reported a loss from continuing operations of $82.1 million in the fourth quarter, or $2.12 per share reflecting the impact of the actions. Income from continuing operations was $14.9 million or $0.37 per share in the prior year period.

Sales in the Aviation Services segment increased 17.1% to $360.2 million in the quarter largely due to higher sales at the Company's supply chain business. Sales in the Expeditionary Services segment declined 50.8% to $55.6 million, due to fewer aircraft flying positions at airlift, as well as lower volumes of mobility systems.

Quarterly sales declined to $415.8 million from $420.6 million in the previous year.

Analysts polled by Thomson Reuters expected the company to report earnings of $0.20 per share and revenues of $421.70 million for the quarter. Analysts' estimates typically exclude special items.

Upon completing the Company's annual strategic review process and assessing its markets, AAR entered fiscal 2015 with a mission to narrow its focus and excel as an independent services provider to the global commercial aviation, government and defense markets. AAR said it is executing this strategy by selling manufacturing businesses and taking actions to strengthen the long-term growth potential of its industry-leading services businesses.

"It was a very pivotal year for AAR," said David P. Storch, Chairman and Chief Executive Officer of AAR CORP. "In the first phase of our transformation, we sold the Telair Cargo Group and placed our Precision Systems Manufacturing up for sale. In phase two, we used a portion of the proceeds from the sale to redeem our High-Yield notes and return capital to shareholders by repurchasing shares. In phase three, we took actions to streamline our remaining businesses, including realigning the Company's corporate office and reducing expenses. In phase four, we will be using our strengthened balance sheet to grow our remaining industry-leading services businesses."

AAR recently announced the closure of its MRO facility in Hot Springs, Ark. in August and the transfer of its regional aircraft maintenance operations to the Company's Oklahoma City facility to optimize its 1MRO network capacity and improve operating margins. The consolidation should contribute to improved performance at the Company's MRO business in Fiscal 2016. Growth in supply chain is expected to continue.

Airlift will experience lower results over the next several quarters as it looks to add flying positions and incurs startup costs on new programs, which are expected to begin generating revenues in the Company's fiscal fourth quarter. Once implementation of new contract wins materialize in the airlift business, the Company expects overall improvement in financial and operating leverage.

AAR also announced that its Board of Directors at its regularly scheduled meeting declared a quarterly cash dividend of $0.075 per share to its stockholders. The dividend will be payable on or before August 12, 2015, to stockholders of record as of the close of business on July 28, 2015.