AAR CORP. (NYSE:AIR) Files An 8-K Regulation FD Disclosure

ME Staff 8-k
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AAR CORP. (NYSE:AIR) Files An 8-K Regulation FD Disclosure
Item 7.01. Regulation FD Disclosure.

As disclosed in its earnings press release for the Fiscal 2018 second quarter, AAR CORP. (the “Company”) announced a non-cash asset impairment of $54.2 million in its Expeditionary Services segment, which was comprised of $51.6 million included in cost of sales and $2.6 million included in selling, general and administrative (“SG&A”) expenses. The Company further disclosed adjusted earnings per diluted share (a non-GAAP financial measure) of $0.35, which excludes the $1.01 impact of the impairment charges discussed above. A reconciliation of this non-GAAP financial measure to the reported earnings per diluted share is included in the Company’s earnings press release filed on a Current Report on Form8-K dated December21, 2017.

During the quarterly earnings conference held by the Company on December21, 2017, the Company was asked what the adjusted earnings per diluted share of $0.35 would be if it were further adjusted to exclude the following items:

· The $1.0 million or $0.02 per diluted share impact of SG&A expenses for legal costs associated with the defense of our INL/A WASS contract; and

· The $0.4 million or $0.01 per diluted share impact of deal-related costs during the quarter.

The Company responded that these further adjustments of $0.06 per diluted share, when excluded from the adjusted earnings per diluted share of $0.35, would result in a total of $0.41 per diluted share.

The Company is filing this Form8-K to clarify its response to questions raised during the earnings conference call.


About AAR CORP. (NYSE:AIR)

AAR CORP. (AAR) is a provider of services and products to the commercial aviation and government and defense markets. The Company operates in two segments: Aviation Services, which consists of supply chain and maintenance, repair and overhaul (MRO) activities, and Expeditionary Services, which includes airlift and mobility activities. Its services and products include aviation supply chain and parts support programs; MRO of aircraft and landing gear; design and manufacture of specialized pallets, shelters and containers; expeditionary airlift services; aircraft modifications, and aircraft and engine sales and leasing. It serves commercial, defense and governmental aircraft fleet operators, original equipment manufacturers and independent service providers around the world. Its landing gear overhaul facility is in Miami, Florida, where it repairs and overhauls landing gear, brakes and actuators for various types of commercial and military aircraft.