Wellington, Fla., B/E Aerospace (Nasdaq: BEAV), the manufacturer of
aircraft cabin interior products and the distributor of
aerospace fasteners and consumables, today announced record first
quarter 2012 financial results. Revenues, operating earnings, net
earnings, net earnings per diluted share, bookings and backlog were all
records for any quarter.

FIRST QUARTER 2012 HIGHLIGHTS VERSUS FIRST
QUARTER PRIOR YEAR

  • Revenues of $747.3 million increased 24.5 percent.
  • Operating earnings of $129.8 million increased 29.7 percent and
    operating margin of 17.4 percent expanded by 70 basis points.
  • Net earnings and earnings per diluted share were $68.8 million and
    $0.67 per share, respectively, increases of 36.8 percent and 36.7
    percent, respectively.
  • Record bookings were approximately $850 million (book-to-bill ratio of
    1.1 to 1). Record backlog increased approximately 16 percent and
    record total backlog, including both booked and awarded but unbooked,
    increased 35 percent as compared to March 31, 2011.
  • The Company is guiding to a substantially improved 2012 earnings
    outlook of approximately $2.75 per diluted share including
    approximately $0.13 per share interest expense drag on earnings from
    undeployed capital due to the Company's recent issuance of $500
    million of 5.25 percent senior unsecured notes due 2022.

FIRST QUARTER CONSOLIDATED RESULTS

First quarter 2012 revenues of $747.3 million were a record for any
quarter, and increased $147.1 million, or 24.5 percent, as compared with
the same period of the prior year. Pro forma revenue growth, giving
effect to all 2011 and 2012 acquisitions as if they had occurred on
January 1, 2011, was 16.9 percent.

First quarter 2012 operating earnings of $129.8 million were also a
record and increased 29.7 percent on the aforementioned 24.5 percent
increase in revenues. Operating margin was 17.4 percent and expanded 70
basis points as compared with the prior year period. Operating earnings,
adjusted to exclude acquisition, integration and transition (AIT) costs,
were $134.1 million, an increase of 34.0 percent, and adjusted operating
margin of 17.9 percent expanded 120 basis points. Operating earnings
growth and operating margin expansion were driven by the higher sales
volume, improved revenue mix and ongoing operational efficiency
initiatives.

First quarter 2012 net earnings and net earnings per diluted share were
$68.8 million and $0.67 per share, increases of 36.8 percent and 36.7
percent, respectively, as compared with the first quarter of 2011.
Adjusted net earnings per diluted share, exclusive of AIT costs, were
approximately $0.70 per share, an increase of 43 percent as compared to
the prior year period.

First quarter 2012 free cash flow of $24.4 million reflects a $66.7
million investment in inventories, exclusive of acquired inventories, to
support the Company's expected revenue growth. Full year 2012 free cash
flow conversion ratio is expected to be approximately 80 to 85 percent
of net earnings.

Commenting on the Company's first quarter 2012 performance, Amin J.
Khoury, Chairman and Chief Executive Officer of B/E Aerospace said, "Our
first quarter 2012 results included record revenues up 25 percent,
record operating earnings up 30 percent, operating margin expanded 70
basis points to 17.4 percent (17.9 percent adjusted), record earnings
per share up 37 percent, and record total backlog up 35 percent. The
substantial margin expansion was driven by our commercial aircraft and
business jet segments which more than offset the margin drag from the
consumables management segment acquisitions. Market share gains driven
by our successful R&D innovations, together with accretive strategic
acquisitions and successful operational efficiency initiatives drove
both the 37 percent earnings growth and the $8.1 billion backlog."

"Based on our record backlog, both booked and awarded but unbooked, of
approximately $8.1 billion, our expectation for continued growth in
global passenger travel, attendant increases in capacity and our
expectation of significantly higher levels of wide-body aircraft
deliveries, we are guiding to a substantially improved 2012 earnings
outlook of approximately $2.75 per diluted share, including
approximately $0.13 per share interest expense drag on earnings from
undeployed capital due to the Company's recent issuance of $500 million
of 5.25 percent senior unsecured notes due 2022," concluded Mr. Khoury.

FIRST QUARTER SEGMENT RESULTS

The following is a tabular summary and commentary of revenues and
operating earnings by segment:

REVENUES Three Months Ended March 31, ($ in millions)

Segment % Change
Commercial aircraft 374.7 310.3 20.8
Consumables management 286.8 230.8 24.3
Business jet 85.8 59.1 45.2
Total 747.3 600.2 24.5

OPERATING EARNINGS Three Months Ended March 31, ($ in millions)

Segment % Change
Commercial aircraft 65.5 49.3 32.9
Consumables management 51.8 44.6 16.1
Business jet 12.5 6.2 101.6
Total 129.8 100.1 29.7

First quarter 2012 commercial aircraft segment (CAS) operating earnings
of $65.5 million increased 32.9 percent as compared with the prior year
period. Operating margin of 17.5 percent expanded 160 basis points as
compared with the prior year period, due to an improved revenue mix and
ongoing operational efficiency initiatives.

First quarter 2012 consumables management segment (CMS) operating
earnings of $51.8 million increased 16.1 percent as compared with the
prior year period. CMS pro forma revenues increased 9.5 percent, pro
forma operating earnings, adjusted to exclude AIT costs, were $58.7
million and pro forma adjusted operating margin was 19.4 percent.

First quarter 2012 business jet segment operating earnings of $12.5
million increased $6.3 million, or 101.6 percent, as compared with the
prior year period, and operating margin of 14.6 percent expanded by 410
basis points, reflecting the increase in revenues, improved mix of
revenues and ongoing operational improvements.

LIQUIDITY AND BALANCE SHEET METRICS

First quarter 2012 free cash flow of $24.4 million represents a free
cash flow conversion ratio of 35.5 percent. Free cash flow in the
current period reflects a higher level of inventory investment to
support expected revenue growth. As of March 31, 2012, cash was $420
million, net debt, which represents total debt of $1.745 billion less
cash, was $1.326 billion and the Company's net debt-to-net capital ratio
was 40.3 percent. As of March 31, 2012, the Company had no borrowings
outstanding on its $750 million revolving credit facility and has no
debt maturities until July 2018.

BOOKINGS/BACKLOG

Bookings during the first quarter of 2012 of approximately $850 million
were a record and reflect a book-to-bill ratio of 1.1 to 1. Backlog at
the end of the quarter was approximately $3.7 billion, an increase of
approximately 16 percent as compared with the Company's March 31, 2011
backlog. Total backlog, both booked and awarded but unbooked, stands at
a record $8.1 billion, an increase of 35 percent as compared with March
31, 2011. SFE backlog of approximately $4.4 billion represents an
increase of approximately 57 percent as compared to March 31, 2011.

OUTLOOK

Commenting on the Company's outlook, Mr. Khoury stated, "Based on our
record backlog, both booked and awarded but unbooked, of approximately
$8.1 billion, our expectation for continued growth in global passenger
travel, attendant increases in capacity and our expectation of
significantly higher levels of wide-body aircraft deliveries, we are
guiding to a substantially improved 2012 earnings outlook of
approximately $2.75 per diluted share, including the $0.13 per share
interest expense drag as a result of our recent opportunistic senior
notes offering. This represents earnings per share growth of
approximately 23 percent (38 percent on a comparable interest expense
and comparable tax rate basis)."

The Company's 2012 financial guidance is as follows:

  • The Company expects continued strong orders in 2012 driven by the
    robust wide-body aircraft delivery outlook and solid aftermarket
    demand. In addition, the Company expects continued growth in
    consumables demand driven primarily by the expected continuing growth
    in global passenger traffic and capacity.
  • 2012 revenues are expected to be approximately $2.95 billion or
    approximately 18 percent higher than 2011 revenues.
  • The Company's full-year 2012 guidance is approximately $2.75 per
    diluted share, representing an increase of approximately 23 percent
    (38 percent on a comparable interest expense and comparable tax rate
    basis).
  • 2012 free cash flow conversion ratio is expected to be approximately
    80 to 85 percent of net earnings. Free cash flow is expected to be
    weaker in the first half of 2012 and significantly stronger in the
    second half of the year.

Adjusted operating earnings, adjusted operating margin, CMS pro forma
adjusted operating earnings, CMS pro forma adjusted operating margin,
adjusted net earnings per diluted share, free cash flow and free cash
flow conversion ratio are presented in this press release; these are
non-GAAP financial measures. For more information see "Reconciliation of
Non-GAAP Financial Measures."

This news release contains forward-looking statements within the meaning
of Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities Exchange Act of 1934, as amended. Such
forward-looking statements involve risks and uncertainties. The
Company's actual experience and results may differ materially from the
experience and results anticipated in such statements. Factors that
might cause such a difference include those discussed in the Company's
filings with the Securities and Exchange Commission, which include its
Proxy Statement, Annual Report on Form 10-K, Quarterly Reports on Form
10-Q and Current Reports on Form 8-K. For more information, see the
section entitled "Forward-Looking Statements" contained in the Company's
Annual Report on Form 10-K and in other filings. The forward-looking
statements included in this news release are made only as of the date of
this news release and, except as required by federal securities laws,
the Company does not intend to publicly update or revise any
forward-looking statements to reflect subsequent events or circumstances.