AAR Corp Parts Supply and Engineering Initiatives
Capital allocation framework
Maintain flexible
balance sheet
Organic
investment to drive
growth
Opportunistic
acquisitions
Return to
shareholders
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Current leverage of 1.1x net debt / Adjusted EBITDA; S&P BB credit rating
Maintain conservative balance sheet; target net leverage ratio of 1.0x - 2.0x EBITDA
Max leverage ratio of 3.5x EBITDA
Support new business wins in Parts Supply via inventory in USM and Distribution
Select airframe maintenance expansion and new component repair capabilities
Development of proprietary PMA parts
Adherence to strategic filters and financial criteria
Focused on expanding in core Parts Supply, R&E, and Integrated Solutions
Increase intellectual property in portfolio
Initiated $150M Share Repurchase Program in December 2021
Repurchased $92.4M to-date with remaining authorization of $57.6M
Will evaluate further usage and expansion based on alternative opportunities
See Appendix for reconciliation of non-GAAP financial measures
AAR
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