Hawker Beechcraft Acquisition Co., LLC reports its 2007 results
Feb. 13, 2008, Wichita, KS - Hawker Beechcraft Acquisition Co., LLC reported $2,793.4 million in sales and $148.3 million in operating income for nine months ending Dec. 31, 2007.
February 13, 2008 By Carey Fredericks
Feb. 13, 2008, Wichita, KS – Hawker Beechcraft Acquisition Co., LLC (HBAC) reported sales of $2,793.4 million and operating income of $148.3 million for the nine months ending December 31, 2007. During this time period, the company delivered 351 business and general aviation aircraft.
Included in the operating results were non-recurring, non-cash charges of $105.2 million resulting from the step-up in the cost basis of finished goods and work in process inventory in accordance with purchase accounting related to the acquisition of the business from Raytheon Company and $48.1 million in increased depreciation and amortization expense, also non-cash, due to the purchase accounting step-up in the cost basis of long term assets.
Operating cash flow has totaled $579.2 million since the acquisition of the business in March 2007 and reflects the Company’s operating income, increase in customer deposits, reduction in the level of used aircraft inventory, and other working capital initiatives implemented throughout the period. Cash flow was adversely affected by the delay in the shipment of T-6A Texan II aircraft due to issues relating to verification of a supplier’s compliance with parts specifications. Deliveries are expected to resume later this month.
The Company, including its predecessor Raytheon Aircraft, delivered 430 business and general aviation aircraft in 2007, comprised of 162 jet, 157 turbo-prop and 111 piston aircraft, as compared to 400 in 2006. The company obtained FAA type certification for three of its newest King Air models during the fourth quarter and delivered four King Air 350ER’s, 24 King Air B200GT’s and 10 King Air C90GTi’s.
The Company recorded net bookings of $5.1 billion for the nine months ending December 31, 2007, resulting in a record backlog of $6.3 billion.
“Hawker Beechcraft has had a terrific first nine months with tremendous customer response to our new product introductions, as is evident by our unprecedented growth in bookings and record backlog,” said Jim Schuster, chief executive officer, HBAC. “International markets continue to expand, with approximately 60 percent of our backlog coming from international customers.”
Financial and other information for the nine months ending December 31, 2007 is available on the Company’s Web site at www.hawkerbeechcraft.com.