Financially troubled Hawker Beechcraft posted a $90 million net loss in May, including $33 million in operating losses, the company said this week in a filing with the U.S. Bankruptcy Court, Southern District of New York.
The income statement was filed to comply with Chapter 11 reporting requirements, the document said.
In May, the company posted $144.8 million in sales of aircraft, parts and services and $148.1 million in costs related to those sales.
Hawker Beechcraft posted $43.8 million in interest expenses, $4.2 million in restructuring charges, $4.8 million in reorganization items, $5.8 million in research and development costs and $19.7 million in selling, general and administrative expenses, its filing said.
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The financial information is preliminary, unaudited and subject to future adjustment, it said.
Hawker Beechcraft filed for a pre-arranged Chapter 11 bankruptcy restructuring agreement on May 3.
The company said at the time that the plan is supported by the majority of its senior secured lenders and senior bondholders.
Its May losses are in line with expectations, said an analyst who didn’t want his name used because he is not authorized to speak publicly for his company.
“I think most people’s view is that Hawker Beechcraft is kind of in a holding pattern right now,” he said.
When a company first files for bankruptcy, there is a lot of uncertainty, the analyst said.
“After a few months, people get more comfortable with what’s happening and understand that the company isn’t going to liquidate and go away,” he said.
As they do, they get more confident and come back to resume business.
Hawker Beechcraft is selling and delivering airplanes, he said.
The key item analysts and investors are looking at on the company’s income statement is cash on the balance sheet, the analyst said. They look at whether the company has the liquidity to survive.
“The cash looks fine,” he said.
Hawker Beechcraft began May with $25.1 million in cash and ended the month with $145.0 million in cash, not counting foreign cash or cash collateralizing letter of credit accounts, it said in the filing.
The company’s assets totaled $2.75 billion at the end of May, while liabilities totaled $3.96 billion.
Hawker Beechcraft’s goal in the bankruptcy is to reorganize and eliminate about $2.5 billion in debt and about $125 million of annual cash interest expense, the company said at the time it filed.
To fund ongoing operations, Hawker Beechcraft has secured a commitment for $400 million in “Debtor in Possession” financing.
Hawker Beechcraft filed for Chapter 11 bankruptcy restructuring following a prolonged downturn in the business jet industry and a heavy debt load undertaken when Goldman Sachs and Onex Partners bought the company in 2007 from Raytheon Inc.