AAR Corp. (NYSE:AIR) Q1 2023 Earnings Conference Call September 22, 2022 4:45 PM ET
Company Participants
John Holmes - President and CEO
Sean Gillen - Chief Financial Officer
Conference Call Participants
Mike Ciarmoli - Truist
Josh Sullivan - Benchmark Company
Steve Strackhouse - RBC Capital Markets
Operator
Good day. And welcome to AAR Corp.’s Q1 2023 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question-and-answer session. [Operator Instructions]
Please be advised that today’s conference is being recorded. I would now like to turn the conference over to AAR management for opening remarks. Please go ahead.
Unidentified Company Representative
Good afternoon, everyone. And welcome to AAR’s fiscal 2023 first quarter earnings call. We are joined today by John Holmes, President and Chief Executive Officer; and 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. These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements.
Accordingly, these statements are no guarantee of future performance. These risks and uncertainties are discussed in the company’s earnings release and the Risk Factors section of the company’s Form 10-K for the fiscal year ended May 31, 2022. In providing the forward-looking statements, the company assumes no obligation to provide updates to reflect future circumstances or anticipated or unanticipated events.
Certain non-GAAP financial information we discuss on the call today. A reconciliation of these non-GAAP measures to the most comparable GAAP measures is set forth in the company’s earnings release.
At this time, I would like to turn the call over to AAR’s President and CEO, John Holmes.
John Holmes
Great. Thank you, and good afternoon, everyone. I appreciate you joining us today to discuss our first quarter fiscal year 2023 results. Sales for the quarter were down 2% from $455 million in the prior year quarter to $446 million and adjusted diluted earnings per share from continuing operations were up 17% from $0.52 per share to $0.61 per share. Our sales to Commercial customers increased to 10% and our sales to Government and Defense customers decreased 19%.
In our Commercial business, we remain encouraged by the continued recovery in air travel. As we indicated last quarter, the recovery has been strongest domestically, while Europe and Asia have lagged behind, leading to global USMs that are still about 30% below 2019 levels. This is most relevant for our parts activities, which are our most international.