Hawker Beechcraft CFO: Liquidity solid with $253 million cash, $235 million revolver availability

By Jennifer Lanning Drey

Savannah, Ga., Nov. 12 - Hawker Beechcraft Acquisition Co., LLC maintained solid liquidity in the third quarter, despite difficult market conditions, Sidney Anderson, the company's chief financial officer, said Friday during its quarterly earnings conference call.

Hawker Beechcraft had $253 million of cash on the balance sheet and revolver availability of $235 million at the Sept. 30 end of the third quarter.

The company's liquidity declined by $34 million versus the prior quarter due in part to its decision to move its accounting close from the last Friday of the month to a calendar month-end close, Anderson said.

"Our cash and liquidity position remain stable in a down market, and the benefits of diversification continue," he said.

The company consumed $26.8 million of cash in operations during the three months ended Sept. 30, compared to $58.5 million generated by operations in the same period of 2009, according to its earnings release.

Hawker Beechcraft reported net sales of $594.7 million for the third quarter, a decrease of $163.0 million compared to the third quarter of 2009.

The company said the decrease was largely attributable to lower aircraft deliveries in its business and general aviation segment as a result of depressed demand across the general aviation market.

"The business and general aviation segment continues to operate in a very challenged market," W.W. (Bill) Boisture Jr., Hawker Beechcraft's chief executive officer, said during the call.

The company delivered 49 aircraft in the third quarter versus 64 in the third quarter of 2009. The decline was mostly seen in its jet products, Boisture said.

Hawker Beechcraft reported an operating loss of $81.4 million for the third quarter, compared to an operating loss of $721.1 million in the comparable period in 2009.

The company said the improved operating loss was primarily due to $581.5 million in charges related to asset impairments recorded in the 2009 period.

Hawker Beechcraft is a Wichita, Kan., maker of business, general aviation, training and special mission aircraft.

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