AAR Corp Parts Supply and Engineering Initiatives slide image

AAR Corp Parts Supply and Engineering Initiatives

Non-GAAP financial measures Adjusted EBITDA ($ in millions) Net income (loss). FY17 FY18 FY19 FY20 FY21 FY22 FY23 Q1 FY20 Q2 FY20 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 12 Months Ended Q1 FY20 Q2 FY20 Q3 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q1 FY23 Q2 FY23 Q3 FY23 $56.5 $15.6 $7.5 (Income) loss from discontinued operations (4.5) 58.1 76.6 $4.4 20.4 10.5 $35.8 $78.7 $90.2 $4.4 $14.2 $2.3 ($16.5) ($14.5) $8.2 $28.1 $14.0 $11.5 $20.8 $22.5 $23.9 $22.7 $22.5 $21.8 $23.2 ($3.2) $4.0 $43.7 ($14.5) ($20.5) $5.3 $61.8 $74.4 (0.2) (0.4) 12.7 5.9 0.3 1.5 0.6 Income tax expense (benefit) 25.1 3.5 4.9 5.6 18.2 26.6 31.4 3.4 6.0 0.2 (4.0) (3.8) 6.2 3.0 5.2 12.0 0.7 (0.3) 0.1 (0.4) 4.8 3.9 7.9 8.2 6.6 8.1 8.3 8.0 7.0 6.0 85.5 87.2 22.7 9.0 8.3 8.6 11.3 9.6 Other (income) expense, net 0.9 0.8 2.1 (4.3) (2.2) 0.8 0.2 0.2 0.2 1.5 (0.2) 0.7 (4.4) (0.4) (0.7) (0.3) (1.1) (0.1) (0.2) (0.5) 0.3 1.2 1.4 1.4 1.0 1.7 2.2 $68.8 $89.9 $91.6 $90.9 0.5 (0.3) (0.3) (0.4) 9.8 (1.6) (2.4) 9.4 25.9 28.6 24.8 30.8 31.2 31.0 (2.4) (4.8) (5.8) (2.5) (1.7) (1.9) (0.5) 3.4 Interest expense, net Depreciation and intangible amortization 5.2 7.9 8.5 8.8 4.8 2.3 11.2 2.1 1.8 2.3 2.6 1.6 1.3 1.0 0.9 0.7 0.4 0.6 0.6 1.0 2.0 3.5 4.7 9.0 8.4 8.3 8.3 7.8 6.5 3.9 3.0 2.6 2.6 4.2 7.1 35.7 40.5 42.8 43.7 36.3 33.1 27.9 10.8 11.0 11.0 10.9 9.0 9.2 8.9 9.2 8.9 8.9 7.7 7.6 6.8 6.5 6.9 7.7 43.5 44.1 44.3 41.9 40.1 38.0 36.2 35.9 34.7 31.0 28.6 27.8 Investigation and remediation costs Losses related to sale and exit of business Trax acquisition and amortization expenses Asset impairment and exit charges Contract termination/restructuring & loss provision, net Facility consolidation and repositioning costs Severance and furlough costs Customer bankruptcy and credit charges Government subsidies Russian bankruptcy court clawback judgement Costs related to strategic projects Stock-based compensation 3.5 10.1 4.4 3.7 4.7 3.1 2.4 2.7 1.8 1.3 2.8 0.3 - 0.2 0.8 1.6 1.1 0.8 1.1 1.2 1.6 6.6 8.8 10.5 8.3 8.7 6.2 3.3 1.3 2.6 4.3 4.6 4.2 (2.6) 20.2 1.7 0.7 19.5 - 0.7 - 1.3 0.4 - 0.1 0.4 0.2 19.5 19.5 19.5 0.7 2.0 2.0 1.7 0.5 0.9 - 7.0 1.9 5.1 - 1.9 11.0 7.0 3.5 11.0 5.8 1.2 2.3 0.6 0.5 0.1 - 16.8 18.0 18.0 3.5 2.9 3.4 1.2 0.6 0.1 7.1 31.3 9.3 0.9 2.0 24.7 6.6 2.2 4.5 4.0 (1.4) 6.7 (4.4) (1.1) (0.3) (0.3) 2.3 24.7 33.5 38.0 17.3 13.8 4.9 (0.2) (6.1) 0.6 1.7 - 0.9 4.9 4.5 0.2 4.9 2.0 0.4 2.1 0.1 0.1 0.9 0.9 0.9 6.9 7.3 7.3 2.6 2.3 2.3 0.1 0.8 4.5 0.2 7.1 9.0 2.0 0.1 0.7 0.9 0.5 5.0 6.0 2.2 0.1 0.7 0.9 0.8 0.2 0.1 0.1 1.0 1.9 2.2 12.4 13.7 13.3 3.9 2.5 2.6 1.2 0.4 0.2 12.4 1.6 4.9 1.0 1.5 1.6 0.2 1.3 1.0 2.4 1.0 (0.3) 1.8 12.4 1.8 3.1 4.1 4.7 4.4 3.4 1.0 (0.3) 1.5 (2.8) (56.2) (4.9) (1.6) (2.8) (11.1) (18.7) (24.6) (1.8) (0.3) (2.5) (1.0) (1.1) (0.7) 1.8 (0.9) 1.8 (13.9) (32.6) (57.2) (45.4) (29.2) (5.6) (5.3) (2.8) (2.7) 1.8 0.4 11.0 15.3 13.5 7.3 1.0 9.2 1.8 (0.2) 8.2 13.5 0.4 0.3 0.7 $127.2 $153.4 $171.6 $155.9 $114.6 $156.4 $190.6 4.3 2.8 $41.7 $45.2 3.2 $47.4 (3.0) 2.7 $21.5 $21.6 $27.0 $31.7 $34.3 1.8 2.3 2.4 1.8 (0.2) 3.1 1.6 1.1 2.4 4.1 2.8 3.5 $37.0 $37.0 $39.3 $43.1 $41.8 $44.8 $50.2 $53.8 0.7 1.4 1.4 3.1 5.7 4.7 13.8 15.4 15.0 $176.9 $181.1 $183.1 $135.8 $117.6 $101.8 $130.0 $140.0 $147.6 $161.2 $169.0 3.8 0.7 9.6 - 1.6 1.6 1.6 9.4 8.2 9.2 10.4 12.8 $179.9 Adjusted EBITDA Pro forma for Trax acquisition: Trax adjusted EBITDA for the twelve months ended February 28, 2023 Adjusted EBITDA pro forma for Trax acquisition AAR $8.6 $188.5 © 2023 AAR CORP. All rights reserved worldwide. 00 90
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