Wesco Aircraft Holdings Inc left bondholders scratching their heads when the struggling aerospace supplier added about $100 million of cash to its balance sheet, seemingly overnight and without much explanation.
They’re trying to parse what happened after the company, which is backed by billionaire Tom Gores’ Platinum Equity, privately informed investors about a set of transactions that depleted and then refilled Wesco’s coffers, even as it reported that third-quarter profit had shrunk.
Wesco, which operates as Incora out of Fort Worth, Texas, reported third-quarter results that showed $117.3 million of cash for the period ending on September 30, according to private results seen by Bloomberg.
The boost is notable for a supply-chain company that has struggled amid Covid-related pressure on the airline industry, with its chief financial officer resigning in the middle of prior quarter’s call. Wesco’s presentation showed adjusted earnings fell to $16.6 million for third quarter from $17.3 million a year earlier.