2009 Financial Results Track Much Of The Rest Of The
Hawker Beechcraft Acquisition Company, LLC released its 2009
financial results Tuesday. The company reported sales of $3.2
billion and an operating loss of $712.0 million for the 12 months
ended Dec. 31, 2009, compared to sales of $3.5 billion and an
operating income of $140.3 million for the same period in 2008. In
addition to lower sales, the Company’s 2009 operating income
was impacted by significant non-cash impairment and other charges
totaling $726.4 million recorded during the third quarter 2009.
Despite the lower operating income, cash flow from operations for
2009 was $177.1 million compared to cash consumed in operations of
$69.0 million in 2008.
2009 sales were affected by lower volume in the Company’s
Business & General Aviation (B&GA) segment as a result of
weakness in the general aviation market throughout the year.
B&GA sales for 2009 were $2.3 billion, compared to $2.8 billion
in 2008. The Company delivered 309 business and general aviation
aircraft during 2009, consisting of 98 jet, 155 turboprop and 56
piston aircraft. This compares to 441 deliveries during 2008.
Trainer Aircraft segment sales were $531.3 million for 2009,
compared to $338.2 million in 2008. The $193.1 million increase was
the result of increased production volume in support of higher
trainer aircraft deliveries. Volume in 2008 was impacted by the
previously disclosed June 2008 suspension of deliveries, pending
resolution of quality issues with a supplier’s component.
Deliveries resumed in January 2009.
Sales in the Company’s Customer Support segment for 2009
were $438.3 million, compared to $522.8 million in 2008. In
addition to lower general aviation aircraft usage as a result of
recent economic conditions, Customer Support segment sales were
also impacted by the sale of the Company’s fuel and line
operations during 2008. 2008 sales included $48.5 million related
to the fuel and line operations subsequently sold.
The $712.0 million operating loss for 2009 was heavily impacted
by $726.4 million of impairment and other charges recorded during
the third quarter. Excluding these charges, operating income was
$14.4 million for 2009. The decline, compared to the prior year
operating income of $140.3 million, is primarily due to the
downturn in the B&GA segment as a result of the overall
On Dec. 14, 2009, the Company provided 2009 earnings guidance of
an operating loss range of $725.0 million to $740.0 million and
Adjusted EBITDA range, determined on the same basis as presented in
the Appendix, of $95.0 million to $110.0 million. The
Company’s 2009 net operating loss and Adjusted EBITDA were
better than the prior guidance due primarily to better than
expected performance in a number of areas, including final aircraft
Cash flow from operations was $177.1 million for the full year
2009, compared to cash consumed of $69.0 million in 2008. The
favorable cash performance was despite lower overall earnings and
reflects sharply reduced inventory on-hand as a result of aircraft
delivered during the year, as well as lower material receipts. In
addition, improved inventory management and ongoing cost reduction
efforts throughout the Company favorably impacted operating cash
Beechcraft King Air 350
The Company’s cash balance at Dec. 31, 2009, was $568.8
million. Subsequent to year end, the Company used a portion of its
cash balance to fully repay the $235.0 million previously borrowed
under its revolving credit facility. The revolving credit facility
remains available for future borrowings as needed.
Backlog at Dec. 31, 2009, was $3.4 billion, compared to $6.6
billion at Sept. 27, 2009, and $7.6 billion at Dec. 31, 2008, and
reflects the previously disclosed cancellations received from Net
Jets, Inc. during the fourth quarter of 2009.