AAR Corp. (NYSE:AIR) Q1 2024 Earnings Conference Call September 26, 2023 4:45 PM ET
Company Participants
John Holmes - Chairman, President and CEO
Sean Gillen - CFO
Conference Call Participants
Robert Spingarn - Melius Research
Michael Ciarmoli - Truist Securities
Joshua Sullivan - The Benchmark Company
Operator
Good afternoon, everyone, and welcome to AAR's Fiscal 2024 First Quarter Earnings Call. We are joined today by John Holmes, Chairman, 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 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 Annual Report on Form 10-K for the fiscal year ended May 31, 2023.
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 will be discussed 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. A replay of this conference call will be available for on-demand listening shortly after the completion of the call on AAR's website.
At this time, I would like to turn the call over to AAR's Chairman, President and CEO, John Holmes.
John Holmes
Thank you and good afternoon, everyone. I appreciate you joining us today to discuss our first quarter fiscal year 2024 results. This was a very strong start to the year and I’m both encouraged by our sustained momentum and proud of our team for continuing to deliver.
Specifically, sales for the quarter were up 23% year-over-year from $446 million to $559 million. Sales to commercial customers increased 34% and sales to government customers increased 3%. Within Parts Supply, sales were up 40% over the prior year quarter as we monetize USM investments that we made over the last year and as recent distribution wins continued to mature.
Regarding USM, even though supply remains tight, our global sourcing team continues to secure high demand material. New parts distribution saw continued growth in our commercial product line which more than offsets lower parts sales to the U.S government.