UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
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For the Quarterly Period Ended August 31, 2004 |
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from to
Commission File No. 1-6263
AAR CORP.
(Exact name of registrant as specified in its charter)
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Delaware |
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36-2334820 |
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(State or other
jurisdiction of incorporation |
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(I.R.S. Employer Identification No.) |
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One AAR
Place, 1100 N. Wood Dale Road |
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60191 |
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(Address of principal executive offices) |
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(Zip Code) |
(630) 227-2000
(Registrant’s telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Yes ý No o
Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act). Yes ý No o
As of September 24, 2004, there were 32,246,173 shares of the registrant’s Common Stock, $1.00 par value per share, outstanding.
AAR CORP. and
Subsidiaries
Quarterly Report on Form 10-Q
For the Quarter Ended August 31, 2004
Table of Contents
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Management’s Discussion and Analysis of Financial Condition and Results of Operations |
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2
PART I, ITEM 1 – FINANCIAL STATEMENTS
AAR CORP. and Subsidiaries
Condensed Consolidated Balance
Sheets
As of August 31, 2004 and May 31, 2004
(In thousands)
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August 31, |
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May 31, |
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(Unaudited) |
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(Audited) |
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Assets: |
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Current assets: |
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Cash and cash equivalents |
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$ |
26,802 |
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$ |
41,010 |
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Accounts receivable, less allowances of $6,082 and $6,310, respectively |
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97,306 |
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104,661 |
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Inventories |
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209,052 |
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206,899 |
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Equipment on or available for short-term lease |
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39,611 |
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40,346 |
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Deposits, prepaids and other |
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14,858 |
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11,714 |
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Deferred tax assets |
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27,574 |
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27,574 |
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Total current assets |
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415,203 |
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432,204 |
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Property, plant and equipment, net |
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81,473 |
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81,866 |
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Other assets: |
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Investments in leveraged leases |
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9,193 |
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9,541 |
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Goodwill, net |
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44,408 |
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44,421 |
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Equipment on long-term lease |
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89,515 |
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84,271 |
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Other |
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59,512 |
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56,989 |
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202,628 |
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195,222 |
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$ |
699,304 |
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$ |
709,292 |
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The accompanying
Notes to Condensed Consolidated Financial
Statements are an integral part of these statements.
3
AAR CORP. and
Subsidiaries
Condensed Consolidated Balance Sheets
As of August 31, 2004 and May 31, 2004
(In thousands)
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August 31, |
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May 31, |
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(Unaudited) |
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(Audited) |
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Liabilities and stockholders’ equity: |
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Current liabilities: |
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Short-term debt |
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$ |
1,896 |
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$ |
1,896 |
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Current maturities of long-term debt |
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1,872 |
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760 |
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Current maturities of non-recourse long-term debt |
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31,834 |
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736 |
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Accounts payable |
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59,078 |
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57,582 |
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Accrued liabilities |
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63,795 |
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70,287 |
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Total current liabilities |
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158,475 |
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131,261 |
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Long-term debt, less current maturities |
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207,708 |
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217,434 |
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Non-recourse debt |
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— |
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31,232 |
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Deferred tax liabilities |
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17,331 |
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17,628 |
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Retirement benefit obligation |
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683 |
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683 |
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Deferred income and other |
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11,905 |
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9,370 |
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237,627 |
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276,347 |
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Stockholders’ equity: |
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Preferred stock, $1.00 par value, authorized 250
shares; |
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— |
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— |
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Common stock, $1.00 par value, authorized 100,000
shares; |
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34,528 |
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34,525 |
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Capital surplus |
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172,674 |
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172,681 |
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Retained earnings |
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149,063 |
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146,776 |
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Treasury stock, 2,285 and 2,280 shares at cost, respectively |
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(36,087 |
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(36,030 |
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Unearned restricted stock awards |
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(1,230 |
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(1,376 |
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Accumulated other comprehensive income (loss) - |
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Cumulative translation adjustments |
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(2,501 |
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(1,647 |
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Minimum pension liability |
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(13,245 |
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(13,245 |
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303,202 |
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301,684 |
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$ |
699,304 |
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$ |
709,292 |
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The accompanying
Notes to Condensed Consolidated Financial
Statements are an integral part of these statements.
4
AAR CORP. and Subsidiaries
Condensed Consolidated Statements
of Operations
For the Three Months Ended August 31, 2004 and 2003
(Unaudited)
(In thousands except per share data)
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Three Months Ended |
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2004 |
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2003 |
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Sales: |
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Sales from products and leasing |
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$ |
146,094 |
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$ |
131,038 |
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Sales from services |
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19,959 |
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21,076 |
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166,053 |
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152,114 |
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Cost and operating expenses: |
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Cost of products and leasing |
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123,849 |
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113,003 |
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Cost of services |
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15,589 |
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17,995 |
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Selling, general and administrative and other |
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20,447 |
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19,648 |
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159,885 |
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150,646 |
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