AAR entered into a $620 million unsecured revolving credit facility. The credit facility is a $20 million increase from the prior facility and extends the maturity of the agreement from September 2024 to December 2027.
Dylan Wolin, Vice President, Strategic & Corporate Development and Treasurer of AAR, said: “We are pleased to have both increased and extended our unsecured revolving credit facility, which recognizes the strength of our credit profile and provides us with significant liquidity and certainty. We would like to thank our lenders for their continued support.”
Meanwhile, AAR reported consolidated sales of $469.8 million and income from continuing operations of $22.5 million for the second quarter fiscal year 2023.
John M. Holmes, President and Chief Executive Officer of AAR, said: “During the quarter, we drove double-digit sales growth in our commercial business as demand for our new parts distribution activities and our maintenance, repair and overhaul services remained strong. We believe the demand for our aftermarket services will continue to increase due to a number of favorable trends such as strong leisure and business travel demand, removal of international travel restrictions, and OEM production challenges that are extending the existing fleet.”
The group reported gross profit margins to be 18.3% in the current quarter as compared to 18.0% in the same time last year. There was also an increase in the adjusted gross profit margin from 16.7% to 18.8%, primarily due to the efforts to reduce costs and improve operating efficiency.
For continuing operations, AAR used $45.9 million cash flow in the current quarter including investments in used serviceable material and in new distribution agreements. Excluding the accounts receivable financing program, cash flow used in operating activities from continuing operations was $47.1 million in the current quarter. As of November 30, 2022, AAR reported a net debt was $149.0 million.