AAR Corp. (NYSE:AIR) Q1 2021 Earnings Conference Call - Final Transcript
Sep 24, 2020 • 04:45 pm ET
balance as a precautionary measure.
Our net debt at quarter-end was $149.3 million and unrestricted cash was $107.7 million. Our balance sheet remains strong with net leverage of 1.1 times and availability under our revolver of approximately $355 million and we have no near-term maturities.
Thank you for your attention and I will now turn the call back over to John.
John M. Holmes
Great. Thank you, Sean. In light of the current macro environment, we are pleased with our Q1 performance. Our Government business continues to be healthy, our cargo end markets continue to generate demand and our balance sheet remains strong.
As discussed on the Q4 call, given the uncertainty in the market, at this stage, we are not providing guidance for the rest of the year. Having said that, looking forward more generally, although, the trajectory of the recovery remains uncertain, we expect the aftermarket to recover faster than the OEM market.
Within the aftermarket, we expect used serviceable material, in which AAR is the global leader, to be prioritized by operators over higher cost alternatives. We also expect to see more material become available to support this demand as aircrafts are permanently retired and parted out. This, along with the maintenance deferrals occurring for both airframe and engine, should drive an increased need for services out of our Trading, Distribution and MRO businesses as the commercial market recovers.
While the timing of the recovery is unknown, we believe that the actions we have taken and are continuing to take to adjust our cost structure and reposition our portfolio, combined with the strength of our team, the airlines' need for lower cost solutions and our balance sheet, uniquely position us to benefit from an eventual return of demand and to emerge an even stronger and more profitable company.
With that, I'd like to turn it back over to the operator for questions.