Hawker Beechcraft Acquisition Company, LLC (HBAC) reported lower sales and operating income during the three months ended June 28, 2009, as compared to the same period in 2008, primarily due to adverse market conditions which caused sharply reduced business and general aviation deliveries.
Net sales for the three months ended June 28, 2009, were $816.3 million, a decrease of $212.4 million compared to the second quarter of 2008. The deterioration in the global economy significantly impacted aircraft deliveries. During the quarter, the Company delivered 78 business and general aviation aircraft consisting of 24 jet, 41 turboprop and 13 piston aircraft, as compared to 129 aircraft during the same period in 2008.
During the three months ended June 28, 2009, the Company recorded operating income of $39.4 million, compared to an operating income of $86.4 million during the second quarter of 2008. The reduced aircraft delivery volumes accounted for a significant majority of the reduced operating income. The Company also recorded charges related to its continued work force reductions and as a result of the exit of a leased facility.
Despite the decreased operating income, the Company recorded net after-tax income for the three months ended June 28, 2009, of $172.2 million, compared to net after-tax income of $24.9 million for the same period in 2008. During the second quarter of 2009, the Company recorded a $175.0 million net gain on the repurchase, at a significant discount, of $274.5 million of its debt securities. For the six months ended June 28, 2009, the Company has recorded gains of $352.1 million on the repurchase of $496.6 million of its debt securities.
Operating cash flow consumed during the six months ended June 28, 2009, was $141.7 million. Among other uses of cash, customer deposits declined as a result of a decline in new orders.
Backlog was $6.8 billion on June 28, 2009, compared to $7.6 billion on December 31, 2008, and $7.4 billion on June 29, 2008.
Earnings Conference Call:HBAC’s earnings results conference call for the three months ended June 28, 2009, will be held Thursday, Aug. 13, 2009, at 3 p.m. CDT. To attend, register at https://cossprereg.btci.com/prereg/key.process?key=PLCPEJKTY
Once you register, you will be provided with dial-in numbers and pass codes needed to join the conference call. A recording of the earnings call will be posted to the Company’s Web site after the call and will be available for 45 days.
Hawker Beechcraft Corporation is a world-leading manufacturer of business, special-mission and trainer aircraft – designing, marketing and supporting aviation products and services for businesses, governments and individuals worldwide. The company’s headquarters and major facilities are located in Wichita, Kan., with operations in Salina, Kan.; Little Rock, Ark.; Chester, England, U.K.; and Chihuahua, Mexico. The company leads the industry with a global network of more than 100 factory-owned and authorized service centers. For more information, visit www.hawkerbeechcraft.com.