AAR Corp. (NYSE:AIR) Q4 2019 Earnings Conference Call - Final Transcript
Jul 10, 2019 • 04:45 pm ET
Good afternoon, ladies and gentlemen, and welcome to AAR's Fiscal 2019 Fourth Quarter Earnings Call. We are joined today by John Holmes, President and Chief Executive Officer; Sean Gillen, Chief Financial Officer.
Before we begin, I would like to remind you that the comments made during the call may include forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995 as noted in our news release and the Risk Factors section of the Company's Form 10-K for the fiscal year ended May 31, 2018. In providing any forward looking statements, the Company assumes no obligation to provide updates to reflect future circumstances for anticipated or unanticipated events.
At this time, I would like to turn the call over to AAR's, President and CEO, John Holmes.
John M. Holmes
Thank you very much and good afternoon, everybody. Thank you for joining us. We are pleased to be here to discuss our Q4 and full year 2019 results. Our sales for the full year were up 17% from $1.75 billion to $2.05 billion. Adjusted diluted earnings per share from continuing operations increased 36% from $1.73 per share to $2.36 per share.
In Q4, consolidated sales grew significantly, up 19% to a record of $563 million. Our growth in adjusted diluted earnings per share from continuing operations was even stronger, up 33% from $0.48 a share to $0.64 per share. Additionally, we had solid cash generation again this quarter as we delivered $44 million of operating cash flow from continuing operations.
We continue to see outstanding performance from our parts supply and government programs activities. In MRO, we saw another quarter of sequential improvement. This improvement was driven by actions we have taken throughout FY '19 to address the site tight labor supply, such as enhancing our recruiting efforts, partnering with various schools and repositioning elements of our workforce across our network. Our customers have also continued to work with us to increase pricing, which has partially offset higher labor costs.
During FY '19, we focused on implementing a number of new programs, as well as executing on certain strategic initiatives. Our government programs team successfully implemented both our US Air Force landing gear PBL contract, as well as the WASS INL program. Both programs were extremely large and complex implementations, involving almost a 1,000 new employees and contractors. We are very pleased with the results of these implementations and more importantly, so are our customers.
As part of our previously communicated strategy to shift to an asset like GOCO business model, we entered into a definitive agreement to sell certain assets in our GOCO business. In addition to executing on these and other prior awards, we announced several new business wins throughout the year. Most recently in the fourth quarter, we announced the extension of our engine support contract with MTU. We also received certification from the Japan Civil Aviation Bureau, the JCAB, that will expand our Japanese customer base and further strengthen the Company's position in Asia. Subsequent to the quarter end,