Aar Corp (AIR) SEC Filing 10-K Annual Report for the fiscal year ending Tuesday, May 31, 2022

Exhibit 99.1

AAR reports fourth quarter and fiscal year 2022 results

Wood Dale, Illinois, July 21, 2022 — AAR CORP. (NYSE: AIR), a leading provider of aviation services to commercial and government operators, MROs, and OEMs, today reported fourth quarter fiscal year 2022 consolidated sales of $476.1 million and income from continuing operations of $23.9 million, or $0.66 per diluted share. For the fourth quarter of the prior year, the Company reported sales of $437.6 million and income from continuing operations of $14.7 million, or $0.41 per diluted share. Our adjusted diluted earnings per share from continuing operations in the fourth quarter of fiscal year 2022 were $0.72, compared to $0.47 in the fourth quarter of the prior year.

Consolidated fourth quarter sales increased 9% over the prior year’s quarter. Our consolidated sales to commercial customers increased 28% over the prior year’s quarter, primarily due to further recovery in the commercial market from the impact of COVID-19. Our consolidated sales to government customers decreased 13%, due to the wind down of our activities in Afghanistan, and natural completion of other government programs.

Sales to commercial customers were 62% of consolidated sales, compared to 52% in the prior year’s quarter, primarily reflecting the recovery in the commercial market from the impact of COVID-19.

Gross profit margins were 18.9% in the current quarter, compared to 16.4% in the prior year quarter. Adjusted gross profit margin increased from 16.5% to 18.6%, primarily due to the favorable impact from our actions to reduce costs and improve our operating efficiency.

Selling, general, and administrative expenses were $56.9 million in the quarter which included increased investments in our digital initiatives, as well as $2.9 million related to investigation, remediation, and strategic project costs.