Hawker Beechcraft acquisition company reports 2010 financials

Hawker Beechcraft Acquisition Company reported
net sales for the twelve months that ended 31 December 2010 of $2.8 billion, a
decrease of $393.8 million compared to the same period of 2009. The decrease
was largely attributable to lower aircraft deliveries in the company’s business
and general aviation (B&GA) segment as a result of depressed demand across
the general aviation market. During 2010 Hawker Beechcraft delivered 238
business and general aviation aircraft compared to 309 during the same period
in 2009.

Included in the 2009 results were 29 special
mission King Air aircraft delivered under the US Government’s Project Liberty
Phase I program. Project Liberty
deliveries are reported as part of the B&GA segment. Partially offsetting
the decline in the B&GA segment was increased revenue in the Trainer/Attack
Aircraft and Customer Support segments.

During the twelve months that ended 31 December
2010 Hawker Beechcraft recorded an operating loss of $173.9 million, compared
to an operating loss of $712.0 million during the comparable period of 2009.
The smaller operating loss versus the prior period was primarily due to charges
of $25.6 million related to asset impairments recorded during 2010 as compared
to charges of $522.8 million recorded during the twelve months that ended 31
December 2009. The majority of the charges that occurred during 2009 and 2010
were recorded in the B&GA operating segment.

The company generated $297.8 million of cash
from operations during the twelve months that ended 31 December 2010, as
compared to $177.1 million of cash generated by operations in the same period
of 2009. On 31 December 2010, the Company’s cash and cash equivalents balance
was $422.8 million.

Hawker Beechcraft aircraft backlog was valued
at $1.4 billion on 31 December 2010 as compared to $1.9 billion on 30 September
2010.  Approximately 28.2% of the backlog on 31 December 2010 represented
orders that are not expected to be delivered in 2011. The backlog also includes
significant orders from the U.S. Government.