Aar Corp. · NYSE:AIR
Aar — Investor Day (October 2010)
90 slides from Aar's investor day presentation, Oct 6, 2010
Slide 1: Forward-Looking Statements
This presentation includes certain statements relating to future results, which are forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on beliefs of Company management, as well as assumptions and esti
Slide 2: Agenda
Agenda Time Topic Presenter 7:30 AM Breakfast 8:00 AM AAR CORP. Overview David Storch Chairman and Chief Executive Officer 8:20 AM Aviation Supply Chain John Holmes Vice President, Aviation Supply Chain 8:40 AM Maintenance, Repair & Overhaul Dany Kleiman Group Vice President 9:00 AM - 9:20 AM BREAK
Slide 3: AAR CORP. Overview
AAR CORP. Overview David Storch Chairman and Chief Executive Officer
Slide 4: Introduction
Diversified and balanced portfolio of Aerospace & Defense businesses Commercial and Government & Defense end markets split approximately 50/50 Government & Defense portfolio split approximately 55/45 between manufacturing and services Commercial business split approximately 45/55 between products an
Slide 5: Diversified Business Mix
Diversified Business Mix May 31, 2001 August 31, 2010 TTM Business transformation has improved portfolio balance, strength and consistency Commercial 49% Government 51% Commercial 83% Government 17% Aftermarket & Support Services 70% Manufacturing 30% Manufacturing 11% Aftermarket & Support Services
Slide 6: Balanced Portfolio
Balanced Portfolio 48% 27% 25% Commercial Parts Supply Component Repair Supply Logistics Programs Aircraft Maintenance Landing Gear Repairs Commercial Services Government & Defense Services Structures & Systems Aviation Supply Chain Maintenance, Repair & Overhaul Mobility Systems Cargo Systems Preci
Slide 7: Broad Array of Commercial Aftermarket Support Solutions
Services 55% Four U.S. MRO facilities IND, MIA, OKC, HOT Primarily narrow body and regional capability; also wide-body Component Repair Broad technical capability for commercial and defense platforms Landing Gear Repair Miami and Malaysia Engineering Services Structural Repair Airframe and Engine Pa
Slide 8: Balance in Our Defense Portfolio Between Manufacturing and Services
Services 45% Supply Chain Management and Logistics Support UK AWACS J-STARS KC-10 OEM Parts Distribution Aircraft Maintenance and Modification Expeditionary Airlift Services Mobility Products Used as in-theatre command and control centers, briefing rooms, kitchens, dorms Transportation Devices Palle
Slide 9: Commercial Market Poised for Recovery
Int’l passenger traffic (left bar) continued to increase in July to +9% y/y after +12% growth in May and June Trend of 10 straight months of positive month-to-month growth since Aug ’09 (excluding the one-off drop in Apr ’10) Capacity grew 6%; since April 1, over 250 aircraft have returned to servic
Slide 10: Government & Defense Will See Growth in Select Areas
Government & Defense Will See Growth in Select Areas Continued demand for cost effective supplemental airlift services to U.S. DOD, DOS, UN, foreign governments and large contractors Cost reductions and efficiency gains a central strategy in future budgets (do more for less) Will benefit companies s
Slide 11: Path to 10% Operating Margins
12 Path to 10% Operating Margins Commercial market recovery New capabilities and platforms Leverage SG&A Commercial Market Growth Growth in Government & Defense Services Operational Efficiencies New platforms and higher margin contract awards New markets Cost management Improved operational reliabil
Slide 12: Deep Management Team
Rick Poulton Chief Financial Officer and Treasurer 4 years with AAR 20 years in Industry An accomplished and experienced leadership team dedicated to integrity, fiscal responsibility, operational excellence, customer satisfaction and stockholder value Randy Martinez Group Vice President, Government
Slide 13: Aviation Supply Chain
Aviation Supply Chain John Holmes Vice President, Aviation Supply Chain
Slide 14: John Holmes, Vice President, Aviation Supply Chain
15 Leads AAR's Aircraft Component Services and Allen Asset Management Joined AAR CORP. in 2001 Held various senior level positions Vice President, Aviation Supply Chain General Manager, Allen Aircraft Director of Mergers and Acquisitions, AAR CORP. Bank of America Capital Investors William Blair & C
Slide 15: Leading Provider of Airframe & Engine Parts
Leading Provider of Airframe & Engine Parts Boeing, Airbus and Regional aircraft and engine coverage Sales, leasing and programmatic supply Offices in 12 countries Airframe and Engine Parts Supply Broad technical capability for commercial and defense platforms Reliability and configuration managemen
Slide 16: Market Overview and Current Trends
Market Overview and Current Trends Engine $15.4B Mods $3.0B Heavy $6.4B Component $9.4B Line $8.5B Global MRO Market of $42.7B $5B addressable market 3.2% ten-year CAGR Current Market Trends Airlines: Continued cash focus MROs: Easing maintenance deferrals OEMs: Aftermarket focus Long-Term Market Tr
Slide 17: Financial Trends
Financial Trends 18 Capacity reductions and short-term maintenance deferrals impacted top line in FY09 and FY2010 Signs of improved business activity FY08 – FY10 FY10Q3 – FY11Q1 18.6% 16.6% 17.3% % Margin $420 – $440 % Margin 23.8% 18.0% 17.4% 18% - 20% Commercial Services $574 $468 $406 $136 $84 $7
Slide 18: ASM Trends Point to a Recovery
Improved airline profitability and the return of the business traveler are other positive trends that should over time lead to an improvement in the commercial aftermarket ASM Trends Point to a Recovery Trough less severe given increase in programmatic business Lag between trough in ASMs and trough
Slide 19: Strategy – Summary
Strategy – Summary Increase strategic relationships with OEMs Expand geographic capabilities Align trading and repair businesses to support programmatic business Capability rationalization Invest to support key platforms Programs fuel the parts supply business Programs fund capability development Pr
Slide 20: Strategy – Commercial Parts Supply
Strategy – Commercial Parts Supply New Gen Products | New Sources Establish market position in newer generation platforms Focus on structured supplier relationships Consignment aircraft and engines for teardown Alignment with major lessors Improve inventory turns Commercial Services 21
Slide 21: Strategy – Repair
Strategy – Repair Capability rationalization – NY and Amsterdam Investment in new generation platforms (large and growing fleets) Cooperation with OEMs Infrastructure built for multiple program customers Focused Capability Development Commercial Services 22
Slide 22: Strategy – Fleet Management
Strategy – Fleet Management Air Canada Jazz: Full support for 70 regional jets Leverage existing inventory pool Foundation for growth with Air Canada Gulf Air: Inventory management – 33 Airbus and EJet First Airbus and EJet support program IT enhancements Gulf Region footprint Fleet Management Progr
Slide 23: Summary
Continue to build program baseload Capitalize on market investment opportunities Build relationship networks and enhance geographic positioning to expand market share Foster innovation and technical advancement Deliver operational excellence Summary Commercial Services 24
Slide 24: Maintenance, Repair & Overhaul
Maintenance, Repair & Overhaul Dany Kleiman Group Vice President
Slide 25: MRO Overview
27 Provide full range of airframe heavy maintenance service at four MRO facilities across the U.S. Landing Gear Services facilities in Miami & Malaysia PMA, Engineering & Backshops Portal for other AAR businesses ONE OF THE LARGEST PROVIDERS OF OUTSOURCED MRO SERVICES IN NORTH AMERICA Commercial Ser
Slide 26: MRO Operations
MRO Operations Miami Hot Springs Indianapolis Miami Oklahoma City Airframe Component Services Engineering Services Landing Gear Services 130K sq. ft. 600 legs per year Airframe MRO 1.6M sq. ft. 3.5M man hours per year Additional Services PMA Parts Development Commercial Services 28
Slide 27: Airframe MRO Industry Perspective
Decrease consumer and business travel spending Airlines focused on reducing costs, deferring maintenance and reducing inventory levels Airlines parked aircraft that required heaviest checks Reduced fleet size in North America 20% - 30% reduction in outsourced MRO since 2008 FY 2010 FY 2011 & beyond
Slide 28: Focus on Customer Relationships
Key Customers Recent Wins Commercial Services Focus on Customer Relationships 30
Slide 29: Landing Gear Services
One of the largest independent providers for LG repair and overhaul Customer base includes most of the major U.S. carriers Wheels and Brakes - supporting commercial and military customers 100 percent in-house capabilities Improve execution and business practices Maintain and enhance technology Focus
Slide 30: Engineering and Technical Services
Expend and grow existing product lines Grow cabin interior modifications in the global markets Capture OEM market Enhance business and execution practices to enable growth Grow revenues through internal AAR business Package airframe components offering to external customers Substantially grow AAR KC
Slide 31: Commercial Services Financial Trends
34 Capacity reductions and maintenance deferrals impacted 2010 top line Proactive business and operations approach supported Gross Margins Focus on growing the business, improving margins and generating cash Highlights Financial Results 13% - 15% 12.7% 14.7% 14.6% % Margin $320 – $340 Commercial Ser
Slide 32: Outlook & Summary
“Top Quality Fully Integrated Service Provider” Increase market share Innovative product line offering Improve execution Drive efficiencies Enhance profitability and cash generation Commercial Services Outlook & Summary 35
Slide 33: Structures & Systems
Structures & Systems Terry Stinson Group Vice President
Slide 34: Terry Stinson, Group Vice President, Structures & Systems
37 Leads AAR’s Mobility Systems, Precision Systems and Cargo Systems businesses Joined AAR CORP. in 2007 An Aerospace industry veteran Chairman and Chief Executive Officer of Bell Helicopter Textron Inc. President and Chief Executive Officer of Hamilton Standard, a UTC division Fully qualified fixed
Slide 35: Key Supplier to Aerospace & Defense Industry
Three major businesses Mobility Systems, Precision Systems and Cargo Systems Key supplier to government and defense industry 89% Government and 11% Commercial 11 facilities in 7 States Solid backlog Strong future growth opportunities Key Supplier to Aerospace & Defense Industry 38 Mobility Systems C
Slide 36: FY2011 Key Strategic Initiatives
FY2011 Continue to Focus on 6 Key Strategic Initiatives 1. Build balance across business units 2. Develop closer relationships with customers and win larger program work 3. Road towards Tier I Supplier with more proprietary content & “end to end” solutions 4. Drive cost reductions through operationa
Slide 37: Building Balance Across Structures & Systems
Building Balance Across Structures & Systems Future sales growth driven by positioning businesses on key platforms 40 Cargo Systems A400M C-X KC-390 KC-45 Repl. Precision Systems S-92 C-Series F-35 G-650 737, 747, 767, 777, 787 Key Platforms Mobility Systems Services & Integration New Products Struc
Slide 38: Cargo Systems
Cargo Systems
Slide 39: Cargo Systems Overview
Cargo handling systems for main deck of military & commercial aircraft Well positioned on major programs Airbus A400M Japanese C-X Military Transport Embraer KC-390 Military Transport EADS KC-45 Tanker Program A400M program highlights Tier I contract with Airbus 1st revenue ship sets in FY2011 192 a
Slide 40: Precision Systems
Precision Systems
Slide 41: Precision Systems – Machining & Composites
Common Customers Across Markets Significant changes made in FY2010 Combined SUMMA Technologies & Composites into Precision Systems Consolidated leadership team GM Business Development & Program Management Operations Finance & HR Leveraged synergies across business Focused on core customers Customer
Slide 42: Precision Systems Key Platforms for Future Growth
Precision Systems Key Platforms for Future Growth G-650 – Composite Interiors & Machined Comp. C-Series – Composite Flap Track Fairings F-35 – Composite & Machined Components S-92 – Composite Interiors & Machined Flooring 46 737, 747, 767, 777, 787 Composite & Machined Components 787 747 767 777 737
Slide 43: Precision Systems Excellence in Engineering & Manufacturing Technology
Leverage customer relationships to win new business Continue transitioning to Tier I supplier Design responsibility - not just build to print Grow sub-assembly work - not just part producer Realize additional cost reductions with business synergies Invest in engineering & manufacturing technology ca
Slide 44: Mobility Systems
Mobility Systems
Slide 45: Mobility Systems
49 Standard Automotive Tool Set (SATS) 20’ Expandable ISO Shelter with Optional EMI Shielding Rapid deployment equipment to aid the mobilization of troops, gear and specialized workspaces Shelters, pallets, containers and services Strong market position across product lines Excellent financial perfo
Slide 46: Mobility Systems DOD Budget Impacts Current & Future Market
Mobility Systems DOD Budget Impacts Current & Future Market Mobility Products Continue to Support Military Personnel World Wide Infrastructure re-build in Iraq Afghanistan war Maintenance & Overhaul of Government equipment Operational budgets remain strong out to 2015 New requirements / solutions Gr
Slide 47: Mobility Systems – New Products
Encampment 51 Shower Unit Latrine Unit Workshop Structures & Systems Mobility Systems – New Products
Slide 48: Mobility Systems – New Products
Hardsided Expandable Small Air Mobile Shelter (HESAMS) 52 Lightweight Multi-purpose Shelter (LMS) Structures & Systems Mobility Systems – New Products
Slide 49: Excellence in Manufacturing & Services
Leverage strong market position & manufacturing capabilities Expand into new areas – Service Business (repair, maintenance & integration) New customers & expand global presence – e.g., Middle East Drive bottom line results through continuous improvements Develop innovative new products & solutions E
Slide 50: Structures & Systems Financial Trends
54 FY2010 financial performance 4% Sales growth 39% Gross Profit growth Consistent year over year margin improvement FY2010 – 20.6% FY2011 – margins to return to historical trend levels Strong Q1 FY2011 performance Continued investment in businesses Capex of $15M to $20M per year Highlights Financia
Slide 51: Structures & Systems Summary
Build Balance Focus on Customer Relationships Transition to a Tier 1 Supplier Operational Improvements & Leverage Synergies Invest in New Technologies & Products Acquire Companies Synergistic to the Business 55 Re-establishing the Growth Trajectory Structures & Systems Summary
Slide 52: Government & Defense Services
Government & Defense Services Randy Martinez Group Vice President
Slide 53: Randy Martinez, Group Vice President, Government and Defense Services
Leads AAR’s Defense Systems and Logistics, Integrated Technologies and Aviation Worldwide Services businesses Joined AAR CORP. in 2009 Formerly served as CEO and board member of World Air Holdings, Inc. Publicly traded $950M global enterprise with 2,200 employees Distinguished 21-year career with th
Slide 54: Government & Defense Services
Three major businesses Defense Systems and Logistics (DSL) Integrated Technologies (InTech) Aviation Worldwide Services (AWS) Provider of critical services and products to government and defense customers 94% Domestic and 6% International Over 1,100 employees (40% overseas) Strong future growth oppo
Slide 55: Key Strengths and Business Highlights
Formation of Government and Defense Services group Highest annual revenue, gross margin and operating profit in DSL history KC-10 supply chain award InTech (formerly Brown International) repositioned strategy and streamlined operations Aviation Worldwide Services acquisition Expanded global presence
Slide 56: Government/Defense Budget Trends
Sources: Department of Defense, White House OMB 2011 Budget Requests, Congressional Research Service Government/Defense Budget Trends DoS and DHS budget increases will provide an offset to expected declines in future DoD supplemental spending Well positioned within programs of budgetary priority Air
Slide 57: Quadrennial Defense Review (QDR)
Quadrennial Defense Review (QDR) The QDR proposes four DoD tenants Focus on sustaining the fight against insurgent forces in Afghanistan and Iraq Emphasizes the need to increase selected military capabilities and to increase the capacity of the Afghan and Iraqi governments Prevail in Today’s Wars Em
Slide 58: Well Positioned within Areas of QDR Priority
Well Positioned within Areas of QDR Priority GDS possesses direct or adjacent capability in 5 of 6 areas of QDR priority Government & Defense Services Enhance capabilities for domain awareness Next-generation over the horizon radar Increase availability of rotary wing assets Expand manned/unmanned I
Slide 59: Defense Systems and Logistics
Defense Systems and Logistics
Slide 60: Defense Systems and Logistics
Comprehensive maintenance, supply and logistics support Department of Defense (DoD) Major defense integrators Allied military services Supply Chain Management (~70%) Complete inventory management Information systems integration with DoD legacy systems Distribution (~30%) Strong past performance Bala
Slide 61: DSL - Growth Opportunities
DSL - Growth Opportunities 17% 5 Year CAGR 2005-2010 DSL programs increasing every year $600M Contract $385M Contract $20M Contract $215M Contract $6M Contract DoD increasing outsourcing of supply chain management Well positioned to provide OEMs greater value added services (3PL to 4PL) More opportu
Slide 62: Integrated Technologies
© AAR Integrated Technologies
Slide 63: Integrated Technologies
State of the art C4I design, development, deployment and support Fixed and mobile tactile operation centers Next generation architectures for mounted and dismounted personnel Technical service teams and support services Rapid response CONUS and OCONUS Hired new leadership Optimized processes OEM con
Slide 64: InTech - Growth Opportunities
Advancing beyond prototyping and developing proprietary products and services Next Generation Command and Control and Contingency Response Communication Systems (CRCS) Bidding opportunities Automatic Fire Extinguishing System (AFES) Blast Resistant Shelters InTech - Growth Opportunities New Products
Slide 65: Aviation Worldwide Services
Aviation Worldwide Services
Slide 66: Aviation Worldwide Services
Turnkey solutions including flight operations, maintenance, modifications, logistical support and training Unique collection of assets and capabilities; operating fleet of 44 aircraft Proven capability operating in austere environments Leading provider of expeditionary, highly-sensitive and mission-
Slide 67: AWS Post Acquisition Highlights
Aviation Worldwide Services Post Acquisition Highlights Task Accomplishments Upgrade Leadership Team Reorganized and simplified reporting structure Hired outstanding leaders Safety and Compliance Focus on relationship with the FAA and key customers Top to bottom compliance review Relentless focus on
Slide 68: AWS – Continued Demand
AWS – Continued Demand Global unrest and instability will continue to drive demand for AWS’ services = Global Hot Zones Regional Tensions DoD TRANSCOM AFRICOM Military Sealift Command DoS INL USAID United Nations NGOs NATO DHS Foreign Governments AWS Market Opportunities Narcotics Trade Piracy Terro
Slide 69: TRANSCOM Contract Award
Selected by U.S. Transportation Command to provide additional airlift in Afghanistan Accepted on $4.9B 5-year ID/IQ award for all three lift categories (super-heavy, heavy and medium) Represents AWS entry into the super-heavy airlift category Initial Task Order to AWS for 6 of the 18 awarded aircraf
Slide 70: Government & Defense Services Financial Trends
Highlights Financial Results % Margin 21.2% 22.7% 21.7% 18% - 20% AWS acquisition KC-10 program impact on DSL Continued investment in businesses Significant increase expected in FY2011 revenue and gross profit $480 – $500 Government & Defense Services Financial Trends $174 $195 $168 42.3 39.5 35.6 $
Slide 71: Government & Defense Services Summary
Move up the value chain into higher margin products and services Continue to diversify customer base Utilize cross-GDS synergies and better enable opportunity outflow to other AAR business units Build sustainable pipeline of new business Continue to upgrade leadership teams Government & Defense Serv
Slide 72: Operational Review
Operational Review Tim Romenesko President and Chief Operating Officer
Slide 73: Timothy Romenesko, President and Chief Operating Officer
77 Timothy Romenesko President and Chief Operating Officer Responsible for maximizing the performance of AAR’s operating units and implementing the Company’s strategies for growth Joined AAR CORP. in 1981 Named Vice President and Chief Financial Officer in 1994 Named President and Chief Operating Of
Slide 74: Operational Focus
Operational Focus Activities are becoming an embedded part of AAR’s management system Cost Cash Margin Expansion Quality Capture Dependable service and reduced cycle times, allowing customers to lower total cost Leverage relationships across AAR and expand customer base Strong balance sheet and liqu
Slide 75: Operational Focus – Quality
Drive Quality in Everything We Do Goal is to be our customers’ highest quality supplier Operational Focus – Quality Cost Cash Margin Quality Capture Process Improvements and Lean Initiatives Training and Technology Focus on Safety Lower span times in maintenance shops Higher throughput in manufactur
Slide 76: Operational Focus – Capture
Driving business development across the company Operational Focus – Capture Cost Cash Margin Quality Capture Leverage Existing Relationships Develop New Customers Develop New Products and Capabilities Enter New Markets 80
Slide 77: Capture – Sample Integrated Offering
Engineering Services / PMA Distribution Airframe Heavy Maintenance Component Repair Landing Gear Engine Parts Supply Support for 777 and 767 fleet 737 and MD-90 support at Indianapolis and Miami OEM parts distribution Material management support for engine shops Repair of rotable material Crew rest
Slide 78: Operational Focus – Cost
Working towards SG&A target of <10% of sales Driving Productivity Gains Leveraging Technology to Improve Efficiency Integration of AWS Strategic Sourcing Staffing Levels Operational Focus – Cost Cost Cash Margin Quality Capture Quarterly SG&A $20M $25M $30M $35M $40M $45M Nov-08 Feb-09 May-09 Aug-09
Slide 79: Operational Focus – Cash
83 Reduced inventory by $50 million in FY10, excluding the impact of AWS Invested in inventory during Q1 to support new contracts and operational reliability at AWS Continue to focus businesses on converting assets to cash Generate operating cash flow for new investments and growth $153 million in o
Slide 80: Operational Focus – Margin Expansion
84 Every 10 basis points of margin expansion adds ~$0.02 in annual earnings per share Operational Focus – Margin Expansion Cost Cash Margin Quality Capture Commercial Market Growth Growth in supply chain business as commercial markets recover Higher throughput at MRO centers New capability developme
Slide 81: Operational Focus
Operational Focus Through solid execution, we entered Fiscal 2011 with optimism and momentum Cost Cash Margin Expansion Quality Capture 85
Slide 82: Financial Highlights
Financial Highlights Rick Poulton Vice President, Chief Financial Officer and Treasurer
Slide 83: Rick Poulton, Chief Financial Officer and Treasurer
87 Appointed Chief Financial Officer and Treasurer in June 2007 Joined AAR CORP. in 2006 Responsible for strategic development Previous 12 years with UAL Corp. and United Airlines Senior Vice President Business Development Senior Vice President Strategic Sourcing President and Chief Financial Office
Slide 84: Key Financial Highlights
Diversified revenue stream with momentum Strong balance sheet with low leverage Modest debt maturities for next few years Financially strong position to support business and enable growth Key Financial Highlights 88
Slide 85: AWS – New Contract Award Announced
AWS – New Contract Award Announced Deal Impact from 1st Quarter business awards 1st Quarter Revised Guidance FY2011 Impact of New IDIQ Current Guidance Sales $180M $50M - $60M $230M - $240M $40M $270M - $280M EBITDA $40M - $45M $10M $50M -$55M $10M $60M - $65M New award for an additional six helicop
Slide 86: Diversified Revenue Stream
Aviation Supply Chain Maintenance, Repair & Overhaul Structures & Systems Government & Defense Services Increasing range of revenue guidance (up 18 - 26% from FY10) $1,061M $1,385M $1,424M $1,352M Diversified Revenue Stream $1.5B - $1.6B $1.6B - $1.7B $0M $200M $400M $600M $800M $1,000M $1,200M $1,4
Slide 87: Diluted Earnings Per Share From Continuing Operations
Diluted Earnings Per Share From Continuing Operations Aircraft Sales & Leasing Segment Increasing range of EPS guidance (up 16 - 29% from FY10) $1.40 $1.50 $0.56 $0.91 $1.25 $1.39 $1.34 $1.16 $0.01 $0.05 $0.33 $1.35 $1.25 $0.17 $0.16 $0 $0.25 $0.50 $0.75 $1.00 $1.25 $1.50 $1.75 $2.00 FY 2005 FY 2006
Slide 88: Modest Debt Maturities for Next Few Years
Modest Debt Maturities for Next Few Years Includes $120M that converts at approximately $29.43 per share; Conversion shares already in EPS calculation (1) Excludes revolver which will be rolled over. As of 8/31/2010 ($ millions) $0 $20 $40 $60 $80 $100 $120 $140 $160 $52 $14 $143 $94 $28 $75 $25 FY
Slide 89: Valued Near Historical Lows
Valued Near Historical Lows 2009 EBITDA excludes $31.1M of impairment charges. EBITDA for 5/31/2010 and 8/31/2010 TTM includes pro forma 12 month results for AWS. Enterprise value for TTM is based on the close on October 1, 2010. (1) (2,3) (2) 95
Slide 90: Non-GAAP Disclosure Reconciliation
Non-GAAP Disclosure Reconciliation Pursuant to SEC Regulation G, the Company has included the following reconciliation of operating income reported on the basis of Generally Accepted Accounting Principles (“GAAP”) to EBITDA on a non-GAAP basis. The Company believes the non-GAAP EBITDA and ratios usi