AAR Corp.

“The Trax acquisition adds established, higher-margin aviation aftermarket software offerings with recurring revenue to our portfolio and provides opportunities to cross-sell products and services.”

“During the fourth quarter of fiscal 2023, we acquired Trax USA Corp. (“Trax”), a leading independent provider of aircraft MRO and fleet management software which was founded in 1999.”

“expected to complete the transition of the facility’s operations to other component repair facilities in fiscal 2026”

“Our acquisition strategy is affected by, and poses a number of challenges and risks as a result of certain factors, including the availability of suitable acquisition candidates, incurrence of expenses, availability of capital, the cost of capital, compliance with debt covenants, consummation of acquisitions on satisfactory terms, obtaining applicable domestic and/or foreign governmental approvals such as antitrust and foreign investment related authorizations, difficulties in integrating the operations and personnel, the effects of amortization of and potential impairments of any acquired intangible assets and the potential impairment of goodwill, and the potential loss of key employees of the acquired business.”

“To mitigate the impact of COVID-19, we implemented a number of actions since the onset of the COVID-19 pandemic to align our costs with the anticipated lower levels of demand. These actions included facility consolidations, exiting or restructuring several underperforming contracts, and eliminating discretionary spending.”