WICHITA, Kan. (Feb. 17, 2011) – Hawker Beechcraft Acquisition Company, LLC (HBAC) reported net sales for the twelve months ended Dec. 31, 2010 of $2,804.7 million, a decrease of $393.8 million compared to the same period of 2009. The decrease was largely attributable to lower aircraft deliveries in the Company’s Business and General Aviation (B&GA) segment as a result of depressed demand across the general aviation market. During 2010, the Company delivered 238 business and general aviation aircraft compared to 309 during the same period in 2009. Included in the 2009 results were 29 special mission King Air aircraft delivered under the U.S. Government’s Project Liberty Phase I program. Project Liberty deliveries are reported as part of the B&GA segment. Partially offsetting the decline in the B&GA segment was increased revenue in the Trainer/Attack Aircraft and Customer Support segments.
During the twelve months ended Dec. 31, 2010, the Company recorded an operating loss of $173.9 million, compared to an operating loss of $712.0 million during the comparable period of 2009. The smaller operating loss versus the prior period was primarily due to charges of $25.6 million related to asset impairments recorded during 2010 as compared to charges of $522.8 million recorded during the twelve months ended Dec. 31, 2009. The majority of the charges that occurred during 2009 and 2010 were recorded in the B&GA operating segment.
The Company generated $297.8 million of cash from operations during the twelve months ended Dec. 31, 2010, as compared to $177.1 million of cash generated by operations in the same period of 2009. On Dec. 31, 2010, the Company’s cash and cash equivalents balance was $422.8 million.
Backlog was $1.4 billion on Dec. 31, 2010 as compared to $1.9 billion on Sept. 30, 2010. Approximately 28.2% of the backlog on Dec. 31, 2010 represented orders that are not expected to be delivered in 2011. The backlog also includes significant orders from the U.S. Government.
Form 10-K and Earnings Conference Call:
Additional financial information is included in the attached tables and in the Company’s 2010 Annual Report on Form 10-K, which the Company intends to file with the Securities and Exchange Commission on Feb. 25, 2011. HBAC’s earnings results conference call for the twelve months ended Dec. 31, 2010, will be held Friday, Feb. 18, 2011, at 9 a.m. CST. To attend, register at https://cossprereg.btci.com/prereg/key.process?key=P637EH3M3.
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 the largest number of factory-owned service centers and a global network of more than 100 factory-owned and authorized service centers. For more information, visit 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.