Our investment in expanding our worldwide footprint with people and facilities is paying off.
Wichita, Kan. (Vocus) August 5, 2008 -
Hawker Beechcraft Acquisition Company, LLC (HBAC) reported increased orders, improved sales and higher earnings during the three months ending June 29, 2008 as compared to the same period in 2007.
Net bookings for the three months ending June 29, 2008 totaled $1.7 billion. The continued strength in new order activity resulted in a new record backlog of $7.4 billion at the end of the second quarter of 2008.
Net sales for the three months ending June 29, 2008 were $1,028.7 million. During the quarter, the Company delivered 129 business and general aviation aircraft consisting of 50 jet, 50 turbo-prop and 29 piston aircraft. On June 18, 2008, HBAC delivered the first Hawker 4000, its flagship aircraft; a super-midsize business jet utilizing advanced composite construction. Second quarter 2008 sales increased by $327.6 million, compared to the second quarter of 2007, primarily due to the increase in aircraft deliveries.
During the three months ending June 29, 2008, the Company recorded operating income of $86.4 million, compared to an operating loss of $36.6 million during the second quarter of 2007. The increase in business and general aviation aircraft deliveries, sales growth in the customer support segment and $59.9 million in non-cash and non-recurring charges incurred during the second quarter of 2007 in accordance with purchase accounting as a result of the acquisition of the business from Raytheon Company, all contributed to the improvement in operating income performance. Partially offsetting these impacts was a $16.3 million charge associated with specific early-production Hawker 4000 units recorded during the second quarter of 2008. This charge resulted from an increase in the cost to conform the early aircraft to the final type design and higher than expected initial production costs.
Operating cash flow consumed during the six months ending June 29, 2008 was $59.2 million. The ramp-up in production rates along with the typical timing difference between aircraft deliveries and a more linear aircraft production schedule throughout the year, resulted in the operating cash consumption during this period.
"The strong global demand for Hawker Beechcraft aircraft and services is evidenced by our fifth consecutive quarter of record setting backlog," said Jim Schuster, chairman and CEO of Hawker Beechcraft Corporation. "Our investment in expanding our worldwide footprint with people and facilities is paying off."
Financial and other information for the three months ending June 29, 2008 is available on the Company's Web site at http://www.hawkerbeechcraft.com. An earnings call will be held on Wednesday, August 13, 2008 at 9:00 am CDT.
Earnings Conference Call:
HBAC's earnings results conference call for the three months ending June 29, 2008 will be held Wednesday, August 13, 2008 at 9:00 a.m. CDT. To attend, please register at https://cossprereg.btci.com/prereg/key.process?key=PRVYWCFBD.
Once you have registered, you will be provided with the information you need to join the conference call, including dial-in numbers and pass codes. A recording of the earnings call will be posted to the Company's Web site on the afternoon of August 13, 2008 and will remain 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 http://www.hawkerbeechcraft.com.
This release may contain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical fact, including statements that address activities, events or developments that we or our management intend, expect, project, believe or anticipate will or may occur in the future are forward-looking statements. Forward-looking statements are based on management's assumptions and assessments in light of past experience and trends, current conditions, expected future developments and other relevant factors. They are not guarantees of future performance, and actual results may differ significantly from those envisaged by our forward-looking statements. Among the factors that could cause actual results to differ materially from those described or implied in the forward-looking statements are general business and economic conditions, production delays resulting from lack of regulatory certifications and other factors, competition in our existing and future markets, lack of market acceptance of our products and services, the substantial leverage and debt service resulting from our indebtedness, loss or retirement of key executives and other risks disclosed in our filings with the Securities and Exchange Commission.
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