Aar Corp (AIR) SEC Filing 10-Q Quarterly report for the period ending Sunday, February 28, 2021

Exhibit 99.1

AAR REPORTS THIRD QUARTER FISCAL YEAR 2021 RESULTS

WOOD DALE, ILLINOIS (March 23, 2021) — AAR CORP. (NYSE: AIR) today reported third quarter Fiscal Year 2021 consolidated sales of $410.3 million and income from continuing operations of $31.1 million, or $0.87 per diluted share. For the third quarter of the prior year, the Company reported sales of $553.1 million and income from continuing operations of $2.6 million, or $0.07 per diluted share. Our adjusted diluted earnings per share from continuing operations in the third quarter of Fiscal Year 2021 were $0.37 compared to $0.67 in the third quarter of the prior year. Current quarter results included net pretax adjustments of $23.4 million, or $0.50 per share, primarily related to the exclusion of CARES Act payroll support.

Consolidated third quarter sales decreased 26% from the prior year quarter. Our consolidated sales to commercial customers decreased 42% from the prior year quarter primarily due to the continued impact of COVID-19. Our consolidated sales to government customers increased 4% as a result of continued strong performance across our global government contracts.

Sales to government and defense customers were 49% of consolidated sales compared to 35% in the prior year’s quarter reflecting the growth in our government business as well as the continued impact of COVID-19 on commercial volumes.

Gross profit margins increased from 11.8% in the prior year quarter to 21.0% in the current quarter due primarily to the CARES Act payroll support. Adjusted gross profit margin, which excludes the CARES Act payroll support and other items, increased from 16.0% in the prior year quarter to 16.1% in the current quarter despite a 27% decrease in adjusted sales. Sequentially, our adjusted gross profit margin increased from 13.9% in the second quarter to 16.1% in the current quarter.