Hawker Beechcraft Acquisition Company, LLC Reports its Second Quarter 2008 Results

Hawker Beechcraft Acquisition Company, LLC Reports its Second Quarter 2008
Results

WICHITA, Kan., Aug. 5 /PRNewswire/ -- Hawker Beechcraft Acquisition
Company, LLC (HBAC) reported increased orders, improved sales and higher
earnings during the three months ending June 29, 2008 as compared to the same
period in 2007.
(Logo: http://www.newscom.com/cgi-bin/prnh/20070322/HBLOGO )
Net bookings for the three months ending June 29, 2008 totaled $1.7
billion. The continued strength in new order activity resulted in a new record
backlog of $7.4 billion at the end of the second quarter of 2008.
Net sales for the three months ending June 29, 2008 were $1,028.7 million.
During the quarter, the Company delivered 129 business and general aviation
aircraft consisting of 50 jet, 50 turbo-prop and 29 piston aircraft. On June
18, 2008, HBAC delivered the first Hawker 4000, its flagship aircraft; a
super-midsize business jet utilizing advanced composite construction. Second
quarter 2008 sales increased by $327.6 million, compared to the second quarter
of 2007, primarily due to the increase in aircraft deliveries.
During the three months ending June 29, 2008, the Company recorded
operating income of $86.4 million, compared to an operating loss of $36.6
million during the second quarter of 2007. The increase in business and
general aviation aircraft deliveries, sales growth in the customer support
segment and $59.9 million in non-cash and non-recurring charges incurred
during the second quarter of 2007 in accordance with purchase accounting as a
result of the acquisition of the business from Raytheon Company, all
contributed to the improvement in operating income performance. Partially
offsetting these impacts was a $16.3 million charge associated with specific
early-production Hawker 4000 units recorded during the second quarter of 2008.
This charge resulted from an increase in the cost to conform the early
aircraft to the final type design and higher than expected initial production
costs.
Operating cash flow consumed during the six months ending June 29, 2008
was $59.2 million. The ramp-up in production rates along with the typical
timing difference between aircraft deliveries and a more linear aircraft
production schedule throughout the year, resulted in the operating cash
consumption during this period.
"The strong global demand for Hawker Beechcraft aircraft and services is
evidenced by our fifth consecutive quarter of record setting backlog," said
Jim Schuster, chairman and CEO of Hawker Beechcraft Corporation. "Our
investment in expanding our worldwide footprint with people and facilities is
paying off."
Financial and other information for the three months ending June 29, 2008
is available on the Company's Web site at www.hawkerbeechcraft.com. An
earnings call will be held on Wednesday, August 13, 2008 at 9:00 am CDT.
Earnings Conference Call:
HBAC's earnings results conference call for the three months ending June
29, 2008 will be held Wednesday, August 13, 2008 at 9:00 a.m. CDT. To attend,
please register at
https://cossprereg.btci.com/prereg/key.process?key=PRVYWCFBD .
Once you have registered, you will be provided with the information you
need to join the conference call, including dial-in numbers and pass codes. A
recording of the earnings call will be posted to the Company's Web site on the
afternoon of August 13, 2008 and will remain available for 45 days.
Hawker Beechcraft Corporation is a world-leading manufacturer of business,
special-mission and trainer aircraft -- designing, marketing and supporting
aviation products and services for businesses, governments and individuals
worldwide. The company's headquarters and major facilities are located in
Wichita, Kan., with operations in Salina, Kan.; Little Rock, Ark.; Chester,
England, U.K.; and Chihuahua, Mexico. The company leads the industry with a
global network of more than 100 factory-owned and authorized service centers.
For more information, visit www.hawkerbeechcraft.com.
This release may contain "forward-looking statements" within the meaning
of Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. All statements, other than statements of historical
fact, including statements that address activities, events or developments
that we or our management intend, expect, project, believe or anticipate will
or may occur in the future are forward-looking statements. Forward-looking
statements are based on management's assumptions and assessments in light of
past experience and trends, current conditions, expected future developments
and other relevant factors. They are not guarantees of future performance, and
actual results may differ significantly from those envisaged by our forward-
looking statements. Among the factors that could cause actual results to
differ materially from those described or implied in the forward-looking
statements are general business and economic conditions, production delays
resulting from lack of regulatory certifications and other factors,
competition in our existing and future markets, lack of market acceptance of
our products and services, the substantial leverage and debt service resulting
from our indebtedness, loss or retirement of key executives and other risks
disclosed in our filings with the Securities and Exchange Commission.
SOURCE Hawker Beechcraft Acquisition Company, LLC

Press, Andrew Broom +1-316-676-8674, or Investor Relations, Jim Sanders,
+1-316-676-3050, both of Hawker Beechcraft Acquisition Company, LLC