AAR paid dividends and repurchased bonds, stock in fiscal Q2

By Lisa Kerner

Charlotte, N.C., Dec. 18 - AAR Corp. generated $27.1 million in cash flow from operations and had capital expenditures of $8.1 million in the second quarter of its 2013 fiscal year.

During the quarter, AAR declared and paid dividends of $3 million and also repurchased $9.9 million face value of its convertible bonds at an effective yield to maturity of 4.1%, a company news release said.

Interest expense in the second quarter increased $3 million over the prior-year period, due mainly due to the issuance of $175 million of 7.25% senior notes in January 2012.

Total number of shares of common stock purchased year-to-date under AAR's share repurchase program was 620,000, for $8.4 million, or an average of $13.61 per share.

Operating income in the second quarter was $37.8 million, a margin of 7.4%, compared to $34.3 million, or 7.1% of sales in the prior year.

The Wood Dale, Ill.-based aerospace and defense contractor also reported consolidated sales of $512.8 million and net income of $17.8 million, or $0.44 per diluted share, for the period. For the same period last year, AAR reported sales of $482 million and net income of $17.6 million, or $0.43 per diluted share.

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