WOOD DALE, Ill., July 10, 2019 /PRNewswire/ -- AAR CORP.
(NYSE: AIR) today reported fourth quarter fiscal year 2019
consolidated sales of $562.7 million
and income from continuing operations of $26.6 million, or $0.76 per diluted share. For the
fourth quarter of the prior year, the Company reported sales of
$473.5 million and income from
continuing operations of $18.1
million, or $0.52 per diluted
share. Reported results include tax benefits which reduced
income tax expense by $5.1 million,
or $0.15 per diluted share, in the
current quarter. Reported results in the prior year's quarter
included tax benefits of $3.2
million, or $0.09 per diluted
share. Our adjusted diluted earnings per share from
continuing operations, which excludes these tax benefits and other
items, increased 33% to $0.64 in the
current quarter from $0.48 last
year.
Consolidated sales increased 19% over the prior year period from
continued growth in our programs and parts supply activities.
Our Aviation Services segment experienced significant growth of 18%
driven by strong demand for both new and aftermarket parts as well
as successful execution on the WASS program and other government
programs. In our Expeditionary Services segment, sales
increased 37% as we began executing against recent contract
awards.
"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," said John M. Holmes, President and Chief Executive
Officer of AAR CORP.
During the quarter, we announced a five-year extension of our
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, Inc. 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. Also during the
quarter, the Company paid cash dividends of $2.6 million, or $0.075 per share, and repurchased approximately
291,000 shares for $9.5
million. Average diluted share count for both this
quarter and the prior year quarter was 34.6 million
shares.
Cash flow from operating activities from continuing operations
was $44.1 million during the current
quarter. The impact of our accounts receivable financing
program resulted in a net reduction of $13.3
million in cash flows during the quarter.
Fiscal Year 2019 Results
Full Fiscal Year 2019 income from continuing operations was
$84.1 million, or $2.40 per diluted share. In Fiscal Year
2018, income from continuing operations was $73.7 million, or $2.11 per share. Tax benefits reduced
income tax expense by $11.6 million,
or $0.34 per diluted share, in the
current year, and $16.2 million, or
$0.47 per diluted share, in the prior
year. Our adjusted diluted earnings per share from continuing
operations, which excludes these tax benefits and other items,
increased 36% to $2.36 in the current
year from $1.73 last year.
Full Fiscal Year 2019 consolidated sales were $2.05 billion, an increase of 17.4% over Fiscal
Year 2018. Aviation Services sales grew by 17.4% as a result
of strong performance in our parts supply activities and our
successful execution of recent contract awards. Expeditionary
Services sales increased 16.6% in Fiscal Year 2019 reflecting
higher volumes in our mobility products activities.
Sales to government and defense customers were 33% of
consolidated sales compared to 25% in the prior year reflecting
growth from the WASS program and other government programs.
Sales to commercial customers, which also increased over the prior
year, represented 67% of consolidated sales compared to 75% of
consolidated sales last year.
Net interest expense for Fiscal Year 2019 was $8.5 million compared to $7.9 million last year. During the year,
the Company paid cash dividends of $10.5
million, or $0.30 per share,
and repurchased approximately 313,000 shares for $10.3 million.
Net debt at May 31, 2019 was
$121.6 million compared to
$147.8 million at May 31, 2018. Cash flow from operating
activities from continuing operations was $60.5 million in Fiscal Year 2019 compared to
$55.8 million in Fiscal Year
2018. Our accounts receivable financing program provided a
benefit to cash flows of $14.5
million in Fiscal Year 2019 compared to a benefit of
$71.7 million in the prior year.
Outlook
We are announcing financial guidance for Fiscal Year 2020 of
sales in the range of $2.1 to
$2.2 billion and adjusted diluted
earnings per share from continuing operations of $2.45 to $2.65. At the midpoint of the ranges, this
represents sales growth of 5% and adjusted earnings per share
growth of 8%. We expect selling, general and administrative
expenses to be approximately 10.5% of sales and anticipate an
effective tax rate of 24% in Fiscal Year 2020. In Fiscal Year
2019, we had an adjusted effective tax rate of 18.5%.
Holmes concluded, "Overall, we are pleased with the performance
in Fiscal Year 2019. Our cash flow generation of $102 million in the second half of the year
further improved our balance sheet providing us additional
flexibility to deploy capital to execute our growth strategy and
drive shareholder return. We are well-positioned for
continued success in Fiscal Year 2020 given the strength we see
across our global commercial and government
markets."
Conference Call
Information
AAR will hold its quarterly conference call at 3:45 p.m. CT on July 10,
2019. The conference call can be accessed by calling
866-802-4322 from inside the U.S. or +1-703-639-1319 from outside
the U.S. A replay of the conference call will also be
available by calling 855-859-2056 from inside the U.S. or
404-537-3406 from outside the U.S. (access code 5488863). The
replay will be available from 7:15 p.m.
CT on July 10, 2019 until
10:59 p.m. CT on July 17, 2019.
Investor Day
Information
AAR will hold an Investor Day on Wednesday, July 17, 2019 at 8:30 a.m. ET in New
York City. AAR's senior leadership team will provide an
overview of the company's strategy and key opportunities. For
those not attending the event, an audio webcast of the
presentations and accompanying slides will be available in the
investor relations section of our website.
About AAR
AAR is a global aerospace and defense aftermarket solutions
company that employs more than 6,000 people in over 20 countries.
Headquartered in the Chicago area,
AAR supports commercial and government customers through two
operating segments: Aviation Services and Expeditionary Services.
AAR's Aviation Services include parts supply; OEM solutions;
integrated solutions; maintenance, repair, overhaul; and
engineering. AAR's Expeditionary Services include mobility systems
and composite manufacturing operations. Additional 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,
including those factors discussed under Item 1A, entitled "Risk
Factors", included in the Company's Form 10-K for the fiscal year
ended May 31, 2018. 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 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. For
additional information, see the comments included in AAR's filings
with the Securities and Exchange Commission.
|
AAR CORP. and
Subsidiaries
|
|
|
Consolidated
Statements of Income
|
Three Months
Ended
|
|
Twelve Months
Ended
|
(In millions
except per share data - unaudited)
|
May
31,
|
|
May
31,
|
|
2019
|
2018
|
|
2019
|
2018
|
|
|
|
|
Sales
|
$
562.7
|
|
$ 473.5
|
|
$
2,051.8
|
|
$ 1,748.3
|
Cost and
expenses:
|
|
|
|
|
|
|
|
Cost of
sales
|
468.0
|
|
388.8
|
|
1,722.3
|
|
1,453.7
|
Provision for doubtful
accounts (a)
|
2.1
|
|
0.1
|
|
15.8
|
|
0.5
|
Selling, general and
administrative
|
63.3
|
|
61.8
|
|
215.4
|
|
208.1
|
|
|
|
|
|
|
|
|
Operating
income
|
29.3
|
|
22.8
|
|
98.3
|
|
86.0
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
(2.1)
|
|
(2.2)
|
|
(8.5)
|
|
(7.9)
|
Other expense,
net
|
(0.4)
|
|
(0.4)
|
|
(0.8)
|
|
(0.9)
|
|
|
|
|
|
|
|
|
Income from
continuing operations before income tax expense
|
26.8
|
|
20.2
|
|
89.0
|
|
77.2
|
Income tax
expense
|
0.2
|
|
2.1
|
|
4.9
|
|
3.5
|
Income from
continuing operations
|
26.6
|
|
18.1
|
|
84.1
|
|
73.7
|
Loss from
discontinued operations
|
(3.8)
|
|
(6.1)
|
|
(76.6)
|
|
(58.1)
|
Net
income
|
$
22.8
|
|
$
12.0
|
|
$
7.5
|
|
$
15.6
|
|
|
|
|
|
|
|
|
Earnings per share
– Basic:
|
|
|
|
|
|
|
|
Earnings from continuing
operations
|
$
0.77
|
|
$ 0.53
|
|
$
2.42
|
|
$ 2.14
|
Loss from discontinued
operations
|
(0.11)
|
|
(0.18)
|
|
(2.22)
|
|
(1.70)
|
Earnings per share –
Basic
|
$
0.66
|
|
$ 0.35
|
|
$
0.20
|
|
$ 0.44
|
|
|
|
|
|
|
|
|
Earnings per share
– Diluted:
|
|
|
|
|
|
|
|
Earnings from continuing
operations
|
$
0.76
|
|
$
0.52
|
|
$
2.40
|
|
$ 2.11
|
Loss from discontinued
operations
|
(0.11)
|
|
(0.18)
|
|
(2.19)
|
|
(1.70)
|
Earnings per share –
Diluted
|
$
0.65
|
|
$
0.34
|
|
$
0.21
|
|
$ 0.41
|
|
|
|
|
|
|
|
|
Share
Data:
|
|
|
|
|
|
|
|
Weighted average
shares outstanding – Basic
|
34.3
|
|
34.0
|
|
34.5
|
|
34.2
|
Weighted average
shares outstanding – Diluted
|
34.6
|
|
34.6
|
|
34.9
|
|
34.6
|
|
|
(a)
|
The twelve months
ended May 31, 2019 includes a provision for doubtful accounts of
$12.4 million related to the bankruptcy of a European airline
customer.
|
AAR CORP. and
Subsidiaries
|
|
|
Consolidated
Balance Sheets
|
May
31,
|
|
May
31,
|
(In
millions)
|
2019
|
|
2018
|
|
(unaudited)
|
|
|
ASSETS
|
|
|
|
Cash and cash
equivalents
|
$
21.3
|
|
$ 31.1
|
Restricted
cash
|
19.8
|
|
10.5
|
Accounts
receivable, net
|
197.8
|
|
202.0
|
Contract
assets
|
59.2
|
|
––
|
Inventories,
net
|
523.7
|
|
460.7
|
Rotable assets and
equipment on or available for lease
|
65.3
|
|
87.2
|
Assets of
discontinued operations
|
29.2
|
|
125.0
|
Other current
assets
|
36.2
|
|
26.2
|
Total current
assets
|
952.5
|
|
942.7
|
Property, plant,
and equipment, net
|
132.8
|
|
133.2
|
Goodwill and
intangible assets, net
|
138.4
|
|
146.5
|
Rotable assets
supporting long-term programs
|
216.0
|
|
183.4
|
Other non-current
assets
|
77.5
|
|
118.9
|
Total
assets
|
$
1,517.2
|
|
$ 1,524.7
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
Accounts payable
and accrued liabilities
|
$
328.3
|
|
$ 308.3
|
Liabilities of
discontinued operations
|
29.2
|
|
25.0
|
Total current
liabilities
|
357.5
|
|
333.3
|
Long-term
debt
|
141.7
|
|
177.2
|
Other liabilities
and deferred income
|
112.1
|
|
77.9
|
Total
liabilities
|
611.3
|
|
588.4
|
Equity
|
905.9
|
|
936.3
|
Total liabilities and
equity
|
$
1,517.2
|
|
$1,524.7
|
|
AAR CORP. and
Subsidiaries
|
|
|
Consolidated
Statements of Cash Flows
|
Three Months
Ended
|
|
Twelve Months
Ended
|
(In millions –
unaudited)
|
May
31,
|
|
May
31,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Cash flows
provided from operating activities:
|
|
|
|
|
|
|
|
Net
income
|
$
22.8
|
|
$ 12.0
|
|
$
7.5
|
|
$ 15.6
|
Less: Loss
from discontinued operations
|
3.8
|
|
6.1
|
|
76.6
|
|
58.1
|
Income from
continuing operations
|
26.6
|
|
18.1
|
|
84.1
|
|
73.7
|
Adjustments
to reconcile income from continuing operations to net
cash provided from
operating activities
|
|
|
|
|
|
|
|
Depreciation and intangible amortization
|
11.5
|
|
9.1
|
|
42.8
|
|
40.5
|
Amortization of stock-based compensation
|
4.7
|
|
6.6
|
|
13.5
|
|
15.3
|
Provision for doubtful accounts
|
2.1
|
|
0.1
|
|
15.8
|
|
0.5
|
Changes in certain assets and liabilities:
|
|
|
|
|
|
|
|
Accounts
receivable
|
38.9
|
|
0.6
|
|
(34.4)
|
|
35.4
|
Contract
assets
|
(4.5)
|
|
––
|
|
(9.7)
|
|
––
|
Inventories
|
(9.1)
|
|
10.9
|
|
(80.9)
|
|
(25.8)
|
Rotable assets
supporting long-term programs
|
(11.0)
|
|
(2.8)
|
|
(49.2)
|
|
(38.5)
|
Accounts payable
and accrued liabilities
|
(10.1)
|
|
13.3
|
|
40.4
|
|
9.8
|
Other
|
(5.0)
|
|
(15.7)
|
|
38.1
|
|
(55.1)
|
Net cash
provided from operating activities – continuing
operations
|
44.1
|
|
40.2
|
|
60.5
|
|
55.8
|
Net cash
provided from (used in) operating activities – discontinued
operations
|
(1.2)
|
|
(8.8)
|
|
6.9
|
|
8.5
|
Net cash
provided from operating activities
|
42.9
|
|
31.4
|
|
67.4
|
|
64.3
|
|
|
|
|
|
|
|
|
Cash flows used in
investing activities:
|
|
|
|
|
|
|
|
Property,
plant and equipment expenditures
|
(5.1)
|
|
(3.6)
|
|
(17.4)
|
|
(22.0)
|
Payments
for acquisitions
|
––
|
|
––
|
|
(2.3)
|
|
(22.9)
|
Other
|
(0.1)
|
|
(2.7)
|
|
1.2
|
|
6.3
|
Net cash
used in investing activities – continuing operations
|
(5.2)
|
|
(6.3)
|
|
(18.5)
|
|
(38.6)
|
Net cash
provided from (used in) investing activities – discontinued
operations
|
––
|
|
0.4
|
|
(0.5)
|
|
(4.3)
|
Net cash
used in investing activities
|
(5.2)
|
|
(5.9)
|
|
(19.0)
|
|
(42.9)
|
|
|
|
|
|
|
|
|
Cash flows
provided from financing activities:
|
|
|
|
|
|
|
|
Proceeds
from (repayments on) borrowings, net
|
(35.0)
|
|
(17.0)
|
|
(35.0)
|
|
23.8
|
Cash
dividends
|
(2.6)
|
|
(2.6)
|
|
(10.5)
|
|
(10.3)
|
Purchase of
treasury stock
|
(9.5)
|
|
––
|
|
(10.3)
|
|
(13.1)
|
Other
|
0.2
|
|
1.6
|
|
8.5
|
|
11.3
|
Net cash provided
from (used in) financing activities – continuing
operations
|
(46.9)
|
|
(18.0)
|
|
(47.3)
|
|
11.7
|
Net cash used in
financing activities – discontinued operations
|
––
|
|
(0.4)
|
|
(1.4)
|
|
(1.7)
|
Net cash provided
from (used in) financing activities
|
(46.9)
|
|
(18.4)
|
|
(48.7)
|
|
10.0
|
Effect of exchange
rate changes on cash
|
(0.1)
|
|
(0.1)
|
|
(0.2)
|
|
(0.1)
|
Increase
(Decrease) in cash and cash equivalents
|
(9.3)
|
|
7.0
|
|
(0.5)
|
|
31.3
|
Cash, cash
equivalents, and restricted cash at beginning of
period
|
50.4
|
|
34.6
|
|
41.6
|
|
10.3
|
Cash, cash
equivalents, and restricted cash at end of period
|
$
41.1
|
|
$ 41.6
|
|
$
41.1
|
|
$ 41.6
|
|
AAR CORP. and
Subsidiaries
|
|
|
Sales By Business
Segment (a)
|
Three Months
Ended
|
Twelve Months
Ended
|
(In millions -
unaudited)
|
May
31,
|
May
31,
|
|
2019
|
2018
|
2019
|
2018
|
Aviation
Services
|
$
522.0
|
$ 443.8
|
$
1,920.6
|
$ 1,635.8
|
Expeditionary
Services
|
40.7
|
29.7
|
131.2
|
112.5
|
|
$ 562.7
|
$
473.5
|
$ 2,051.8
|
$
1,748.3
|
|
Gross Profit by
Business Segment (a)
|
Three Months
Ended
|
Twelve Months
Ended
|
(In millions-
unaudited)
|
May
31,
|
May
31,
|
|
2019
|
2018
|
2019
|
2018
|
Aviation
Services
|
$
89.6
|
$ 79.4
|
$
313.3
|
$ 275.3
|
Expeditionary
Services
|
5.1
|
5.3
|
16.2
|
19.3
|
|
$ 94.7
|
$
84.7
|
$ 329.5
|
$
294.6
|
|
|
(a)
|
In the first quarter
of fiscal 2019, we re-aligned the composition of our operating
segments to leverage the full breadth of our operational expertise
in Aviation Services. Our government-owned,
contractor-operated business, which includes the INL/A WASS
program, was previously included in our Expeditionary Services
segment and is now reported within our Aviation Services segment
for all periods presented.
|
|
Adjusted income from continuing operations, adjusted diluted
earnings per share from continuing operations, adjusted selling,
general, and administrative expenses, adjusted EBITDA, net debt,
and our adjusted effective income tax rate 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 provide a better understanding of our actual operating
performance unaffected by the impact of certain items. 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
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. Adjusted EBITDA
is income from continuing operations before interest income
(expense), other income (expense), income taxes, depreciation and
amortization, stock-based compensation and other items of an
unusual nature including but not limited to severance, facility
repositioning costs and significant customer
bankruptcies.
Pursuant 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:
Adjusted Income
from Continuing Operations
(In millions -
unaudited)
|
Three Months
Ended
May
31,
|
Twelve Months
Ended
May
31,
|
|
2019
|
2018
|
2019
|
2018
|
Income from
continuing operations
|
$
26.6
|
$ 18.1
|
$
84.1
|
$ 73.7
|
Deferred tax
re-measurement from the Tax Cuts and Jobs Act
|
––
|
(1.1)
|
––
|
(14.1)
|
State income tax
benefit (b)
|
(5.1)
|
(2.1)
|
(5.1)
|
(2.1)
|
Recognition of
previously reserved income tax benefits
(b)
|
––
|
––
|
(6.5)
|
––
|
Customer
bankruptcy charge, net of tax
|
––
|
––
|
9.6
|
––
|
Facility
repositioning costs, net of tax
|
0.7
|
––
|
0.7
|
––
|
Severance and
pension settlement charges, net of tax
|
0.1
|
1.8
|
0.3
|
3.1
|
Adjusted income
from continuing operations
|
$ 22.3
|
$
16.7
|
$ 83.1
|
$
60.6
|
|
|
(b)
|
Effective with the
three months ended May 31, 2019, our adjusted results exclude tax
benefits or expenses associated with significant changes in our
income tax valuation allowances or income tax reserves. Prior
periods have been restated to conform to the current period
presentation.
|
Adjusted Diluted Earnings per Share from
Continuing Operations
(unaudited)
|
Three Months
Ended
May
31,
|
Twelve Months
Ended
May
31,
|
|
2019
|
2018
|
2019
|
2018
|
Diluted earnings
per share from continuing operations
|
$
0.76
|
$ 0.52
|
$
2.40
|
$ 2.11
|
Deferred tax
re-measurement from the Tax Cuts and Jobs Act
|
––
|
(0.03)
|
––
|
(0.41)
|
State income tax
benefit (b)
|
(0.15)
|
(0.06)
|
(0.15)
|
(0.06)
|
Recognition of
previously reserved income tax benefits
(b)
|
––
|
––
|
(0.19)
|
––
|
Customer
bankruptcy charge, net of tax
|
––
|
––
|
0.27
|
––
|
Facility
repositioning costs, net of tax
|
0.02
|
––
|
0.02
|
––
|
Severance and
pension settlement charges, net of tax
|
0.01
|
0.05
|
0.01
|
0.09
|
Adjusted diluted
earnings per share from continuing operations
|
$ 0.64
|
$
0.48
|
$ 2.36
|
$
1.73
|
|
|
(b)
|
Effective with the
three months ended May 31, 2019, our adjusted results exclude tax
benefits or expenses associated with significant changes in our
income tax valuation allowances or income tax reserves. Prior
periods have been restated to conform to the current period
presentation.
|
Adjusted Selling,
General and Administrative Expenses
(In millions -
unaudited)
|
Three Months
Ended
May
31,
|
Twelve Months
Ended
May
31,
|
|
2019
|
2018
|
2019
|
2018
|
Selling, general
and administrative expenses
|
$
63.3
|
$ 61.8
|
$
215.4
|
$208.1
|
Severance
charges
|
(0.1)
|
(2.5)
|
(0.2)
|
(4.4)
|
Stock-based
compensation
|
(4.7)
|
(6.6)
|
(13.5)
|
(15.3)
|
Adjusted selling,
general and administrative expenses
|
$ 58.5
|
$
52.7
|
$ 201.7
|
$
188.4
|
|
|
|
Adjusted
EBITDA
(In millions -
unaudited)
|
Three Months
Ended
May
31,
|
Twelve Months
Ended
May
31,
|
|
2019
|
2018
|
2019
|
2018
|
Net
income
|
$
22.8
|
$ 12.0
|
$
7.5
|
$ 15.6
|
Loss from
discontinued operations
|
3.8
|
6.1
|
76.6
|
58.1
|
Income tax
expense
|
0.2
|
2.1
|
4.9
|
3.5
|
Other expense,
net
|
0.4
|
0.4
|
0.8
|
0.9
|
Interest expense,
net
|
2.1
|
2.2
|
8.5
|
7.9
|
Depreciation and
intangible amortization
|
11.5
|
9.1
|
42.8
|
40.5
|
Customer
bankruptcy charge
|
––
|
––
|
12.4
|
––
|
Severance
charges
|
0.1
|
2.6
|
0.2
|
4.5
|
Facility
repositioning costs
|
0.9
|
––
|
0.9
|
––
|
Stock-based
compensation
|
4.7
|
6.6
|
13.5
|
15.3
|
Adjusted
EBITDA
|
$ 46.5
|
$
41.1
|
$ 168.1
|
$
146.3
|
Net
Debt
(In millions-
unaudited)
|
May 31,
2019
|
|
May 31,
2018
|
Total
debt
|
$
142.9
|
|
$178.9
|
Less: Cash and
cash equivalents
|
(21.3)
|
|
(31.1)
|
Net
debt
|
$
121.6
|
|
$147.8
|
|
Net Debt to
Adjusted EBITDA
(In millions -
unaudited)
|
May 31,
2019
|
|
May 31,
2018
|
Adjusted EBITDA
for the twelve months ended
|
$
168.1
|
|
$
146.3
|
Net debt at period
end
|
121.6
|
|
147.8
|
Net debt to
Adjusted EBITDA
|
0.72
|
|
1.01
|
Adjusted Effective
Income Tax Rate
(unaudited)
|
Year
ended
May 31,
2019
|
Income from
continuing operations before income tax expense (in
millions)
|
$
89.0
|
Income tax expense
(in millions)
|
4.9
|
Effective tax
rate
|
5.5%
|
Impact
of:
|
|
State
income tax benefit of $5.1 million
|
5.7%
|
Recognition of previously reserved income tax benefit of $6.5
million
|
7.3%
|
Adjusted effective
tax rate
|
18.5%
|
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SOURCE AAR