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