Wesco Aircraft Announces CFO Retirement, 2014 Sales

Gregory Hann will continue to serve as Wesco Aircraft’s CFO until a replacement can be found, and will remain an employee of the company until March 31, 2015.

Id 494 Wesco Aircraft

VALENCIA, Calif. — Wesco Aircraft Holdings, Inc., a provider of comprehensive supply chain management services to the global aerospace industry, announced Thursday that Gregory A. Hann, executive vice president and chief financial officer, has informed the company’s board of directors of his intention to retire, effective March 31, 2015.

To ensure an orderly transition, Mr. Hann will continue to serve as Wesco Aircraft’s chief financial officer until a replacement can be found, and will remain an employee of the company until March 31, 2015. Thereafter, Mr. Hann will serve as a consultant to the company for one year. Wesco Aircraft has retained a leading executive search firm to conduct a nationwide search to assist with the placement of a new chief financial officer.

Mr. Hann has served as executive vice president and chief financial officer since joining Wesco Aircraft in 2009. During his tenure as chief financial officer, net sales more than doubled to $1.4 billion. Wesco Aircraft also completed the acquisition of Haas Group in fiscal 2014, the largest acquisition in the company’s history.

Randy Snyder, chairman and chief executive officer, said, “On behalf of the board and myself, I want to thank Greg for his years of outstanding service to Wesco Aircraft. He has provided financial leadership through our initial public offering, several debt refinancing transactions and strategic acquisitions, including our recent acquisition of Haas Group. Greg has been a valuable member of the Wesco Aircraft leadership team and leaves the company in a strong financial position. We wish Greg and his family all the best as he transitions into retirement.”

Also on Thursday, Wesco Aircraft announced the results of its fiscal fourth quarter and year ended Sept. 30.

Net sales in the fiscal 2014 fourth quarter were $408.2 million, an increase of 74 percent compared Q4 2013. External sales in the North America segment increased 72 percent, while Rest of World external sales increased 83 percent, in each case, compared to Q4 2013. The external sales increase in both segments was driven mainly by the Haas acquisition, as well as growth across the company’s customer base resulting from the continued ramp-up of recently awarded contracts, scope expansion on existing contracts, and new contract wins.

Wesco Aircraft’s organic sales (excluding the February 2014 acquisition of Haas Group) increased approximately 10 percent in the fiscal 2014 fourth quarter compared to the prior year period. Organic sales in the North America and Rest of World segments increased 11 percent and seven percent, respectively, over the same periods.

Net income in the fiscal 2014 fourth quarter was $24.6 million, or $0.25 per diluted share. Adjusted net income was $29.7 million, or $0.30 per diluted share, compared to $31.7 million, or $0.33 per diluted share in the same period last year. The decrease was primarily due to lower operating margins and higher interest expense as a result of the Haas acquisition financing, partially offset by growth in sales. 

Net sales in fiscal 2014 were $1.356 billion, an increase of 50 percent compared to $901.6 million in fiscal 2013. Ad hoc and contract sales as a percentage of total net sales represented 28 percent and 72 percent, respectively. This compares to 40 percent and 60 percent, respectively, in fiscal 2013.

Net income in fiscal 2014 was $102.1 million, or $1.05 per diluted share. Adjusted net income was $120.7 million, or $1.24 per diluted share. This compares to adjusted net income of $116.5 million, or $1.22 per diluted share in fiscal 2013. Adjusted EBITDA in fiscal 2014 was $220.2 million compared to $197.9 million in fiscal 2013.

Wesco Aircraft is one of the world’s largest distributors and providers of comprehensive supply chain management services to the global aerospace industry. The company’s services range from traditional distribution to the management of supplier relationships, quality assurance, kitting, just-in-time delivery and point-of-use inventory management. 

To learn more about Wesco Aircraft, visit www.wescoair.com.

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