FTAI Aviation Ltd. (NASDAQ: FTAI) (the “Company” or “FTAI”) today
reported financial results for the second quarter 2024. The
Company’s consolidated comparative financial statements and key
performance measures are attached as an exhibit to this press
release.
Financial Overview
(in thousands, except per share data) |
|
|
|
|
Selected Financial
Results |
|
Q2’24 |
Net Loss Attributable to
Shareholders |
|
$ |
(228,205 |
) |
Basic Earnings per Ordinary
Share |
|
$ |
(2.26 |
) |
Diluted Earnings per Ordinary
Share |
|
$ |
(2.26 |
) |
Adjusted EBITDA(1) |
|
$ |
213,904 |
|
_______________________________(1) For definitions and
reconciliations of non-GAAP measures, please refer to the exhibit
to this press release. |
|
|
|
|
Second Quarter 2024
Dividends
On July 23, 2024, the Company’s Board of
Directors (the “Board”) declared a cash dividend on our ordinary
shares of $0.30 per share for the quarter ended June 30, 2024,
payable on August 20, 2024 to the holders of record on August 12,
2024.
Additionally, on July 23, 2024, the Board
declared cash dividends on its Fixed-to-Floating Rate Series A
Cumulative Perpetual Redeemable Preferred Shares (“Series A
Preferred Shares”), Fixed-to-Floating Rate Series B Cumulative
Perpetual Redeemable Preferred Shares (“Series B Preferred
Shares”), Fixed-Rate Reset Series C Cumulative Perpetual Redeemable
Preferred Shares (“Series C Preferred Shares”) and Fixed-Rate Reset
Series D Cumulative Perpetual Redeemable Preferred Shares (“Series
D Preferred Shares”) of $0.51563, $0.50000, $0.51563 and $0.59375
per share, respectively, for the quarter ended June 30, 2024,
payable on September 16, 2024 to the holders of record on September
6, 2024.
Business Highlights
- Aerospace Products reaches new Adjusted EBITDA high of $91.2mm
for Q2. (1)
- FTAI has inducted 20 V2500 engines year to date and expects to
induct an additional 30 by year end.
- FTAI’s Module Factory™ now has over 50 active customers
worldwide.
(1) For definitions and
reconciliations of non-GAAP measures, please refer to the exhibit
to this press release.
Additional Information
For additional information that management
believes to be useful for investors, please refer to the
presentation posted on the Investor Center section of the Company’s
website, https://www.ftaiaviation.com, and the Company’s Quarterly
Report on Form 10-Q, when available on the Company’s website.
Nothing on the Company’s website is included or incorporated by
reference herein.
Conference Call
In addition, management will host a conference
call on Wednesday, July 24, 2024, at 8:00 A.M. Eastern Time. The
conference call may be accessed by registering via the following
link
https://register.vevent.com/register/BIdca77333acf741569740cfda9a5d8b1a/.
Once registered, participants will receive a dial-in and unique pin
to access the call.
A simultaneous webcast of the conference call
will be available to the public on a listen-only basis at
https://www.ftaiaviation.com/. Please allow extra time prior to the
call to visit the site and download the necessary software required
to listen to the internet broadcast.
A replay of the conference call will be
available after 11:30 A.M. on Wednesday, July 24, 2024 through
11:30 A.M. on Wednesday, July 31, 2024 on
https://ir.ftaiaviation.com/news-events/presentations/.
The information contained on, or accessible
through, any websites included in this press release is not
incorporated by reference into, and should not be considered a part
of, this press release.
About FTAI Aviation Ltd.
FTAI owns and maintains commercial jet engines
with a focus on CFM56 and V2500 engines. FTAI’s propriety portfolio
of products, including the Module Factory and a joint venture to
manufacture engine PMA, enables it to provide cost savings and
flexibility to our airline, lessor, and maintenance, repair, and
operations customer base. Additionally, FTAI owns and leases jet
aircraft which often facilitates the acquisition of engines at
attractive prices. FTAI invests in aviation assets and aerospace
products that generate strong and stable cash flows with the
potential for earnings growth and asset appreciation.
Cautionary Note Regarding
Forward-Looking Statements
Certain statements in this press release may
constitute forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995, including, but
not limited to, expectations for inducting an additional 30 V2500
engines by year end. These statements are based on management's
current expectations and beliefs and are subject to a number of
trends and uncertainties that could cause actual results to differ
materially from those described in the forward-looking statements,
many of which are beyond the Company’s control. The Company can
give no assurance that its expectations will be attained and such
differences may be material. Accordingly, you should not place
undue reliance on any forward-looking statements contained in this
press release. For a discussion of some of the risks and important
factors that could affect such forward-looking statements, see the
sections entitled “Risk Factors” and “Management’s Discussion and
Analysis of Financial Condition and Results of Operations” in the
Company’s most recent Annual Report on Form 10-K and Quarterly
Reports on Form 10-Q, which are available on the Company’s website
(www.ftaiaviation.com). In addition, new risks and uncertainties
emerge from time to time, and it is not possible for the Company to
predict or assess the impact of every factor that may cause its
actual results to differ from those contained in any
forward-looking statements. Such forward-looking statements speak
only as of the date of this press release. The Company expressly
disclaims any obligation to release publicly any updates or
revisions to any forward-looking statements contained herein to
reflect any change in the Company's expectations with regard
thereto or change in events, conditions, or circumstances on which
any statement is based. This release shall not constitute an offer
to sell or the solicitation of an offer to buy any securities.
For further information, please
contact:
Alan AndreiniInvestor RelationsFTAI Aviation
Ltd.(646) 734-9414aandreini@fortress.com
Exhibit – Financial
Statements
|
FTAI AVIATION LTD. |
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited) |
(Dollar amounts in thousands, except share and per share data) |
|
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Revenues |
|
|
|
|
|
|
|
|
Lease income |
|
$ |
70,754 |
|
|
$ |
59,541 |
|
|
$ |
123,915 |
|
|
$ |
115,519 |
|
Maintenance revenue |
|
|
51,187 |
|
|
|
42,065 |
|
|
|
96,977 |
|
|
|
77,206 |
|
Asset sales revenue |
|
|
72,433 |
|
|
|
76,836 |
|
|
|
111,040 |
|
|
|
185,527 |
|
Aerospace products
revenue |
|
|
245,200 |
|
|
|
92,725 |
|
|
|
434,257 |
|
|
|
177,838 |
|
Other revenue |
|
|
4,020 |
|
|
|
3,178 |
|
|
|
4,099 |
|
|
|
10,973 |
|
Total revenues |
|
|
443,594 |
|
|
|
274,345 |
|
|
|
770,288 |
|
|
|
567,063 |
|
|
|
|
|
|
|
|
|
|
Expenses |
|
|
|
|
|
|
|
|
Cost of sales |
|
|
205,857 |
|
|
|
104,532 |
|
|
|
348,661 |
|
|
|
250,202 |
|
Operating expenses |
|
|
29,099 |
|
|
|
24,797 |
|
|
|
54,416 |
|
|
|
47,331 |
|
General and
administrative |
|
|
2,969 |
|
|
|
3,188 |
|
|
|
6,652 |
|
|
|
7,255 |
|
Acquisition and transaction
expenses |
|
|
8,019 |
|
|
|
2,672 |
|
|
|
14,198 |
|
|
|
5,934 |
|
Management fees and incentive
allocation to affiliate |
|
|
3,554 |
|
|
|
5,563 |
|
|
|
8,449 |
|
|
|
8,560 |
|
Internalization fee to
affiliate |
|
|
300,000 |
|
|
|
— |
|
|
|
300,000 |
|
|
|
— |
|
Depreciation and
amortization |
|
|
56,691 |
|
|
|
38,514 |
|
|
|
106,611 |
|
|
|
79,440 |
|
Asset impairment |
|
|
— |
|
|
|
— |
|
|
|
962 |
|
|
|
1,220 |
|
Interest expense |
|
|
55,196 |
|
|
|
38,499 |
|
|
|
102,903 |
|
|
|
77,791 |
|
Total expenses |
|
|
661,385 |
|
|
|
217,765 |
|
|
|
942,852 |
|
|
|
477,733 |
|
|
|
|
|
|
|
|
|
|
Other (expense)
income |
|
|
|
|
|
|
|
|
Equity in losses of
unconsolidated entities |
|
|
(694 |
) |
|
|
(380 |
) |
|
|
(1,361 |
) |
|
|
(1,715 |
) |
Loss on extinguishment of
debt |
|
|
(13,920 |
) |
|
|
— |
|
|
|
(13,920 |
) |
|
|
— |
|
Other (expense) income |
|
|
(498 |
) |
|
|
408 |
|
|
|
136 |
|
|
|
416 |
|
Total other (expense)
income |
|
|
(15,112 |
) |
|
|
28 |
|
|
|
(15,145 |
) |
|
|
(1,299 |
) |
(Loss) income before
income taxes |
|
|
(232,903 |
) |
|
|
56,608 |
|
|
|
(187,709 |
) |
|
|
88,031 |
|
(Benefit from) provision for
income taxes |
|
|
(13,033 |
) |
|
|
1,855 |
|
|
|
(7,461 |
) |
|
|
3,881 |
|
Net (loss)
income |
|
|
(219,870 |
) |
|
|
54,753 |
|
|
|
(180,248 |
) |
|
|
84,150 |
|
Less: Dividends on preferred
shares |
|
|
8,335 |
|
|
|
8,335 |
|
|
|
16,670 |
|
|
|
15,126 |
|
Net (loss) income
attributable to shareholders |
|
$ |
(228,205 |
) |
|
$ |
46,418 |
|
|
$ |
(196,918 |
) |
|
$ |
69,024 |
|
|
|
|
|
|
|
|
|
|
(Loss) Earnings per
share: |
|
|
|
|
|
|
|
|
Basic |
|
$ |
(2.26 |
) |
|
$ |
0.47 |
|
|
$ |
(1.96 |
) |
|
$ |
0.69 |
|
Diluted |
|
$ |
(2.26 |
) |
|
$ |
0.46 |
|
|
$ |
(1.96 |
) |
|
$ |
0.69 |
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding: |
|
|
|
|
|
|
|
|
Basic |
|
|
100,958,524 |
|
|
|
99,732,179 |
|
|
|
100,602,214 |
|
|
|
99,730,223 |
|
Diluted |
|
|
100,958,524 |
|
|
|
100,462,277 |
|
|
|
100,602,214 |
|
|
|
100,314,508 |
|
FTAI AVIATION LTD. |
CONSOLIDATED BALANCE SHEETS |
(Dollar amounts in thousands, except share and per share data) |
|
|
|
(Unaudited) |
|
|
|
|
June 30, 2024 |
|
December 31, 2023 |
Assets |
|
|
|
|
Cash and cash equivalents |
|
$ |
169,485 |
|
|
$ |
90,756 |
|
Restricted cash |
|
|
150 |
|
|
|
150 |
|
Accounts receivable, net |
|
|
154,051 |
|
|
|
115,156 |
|
Leasing equipment, net |
|
|
2,202,866 |
|
|
|
2,032,413 |
|
Property, plant, and
equipment, net |
|
|
33,078 |
|
|
|
45,175 |
|
Investments |
|
|
19,886 |
|
|
|
22,722 |
|
Intangible assets, net |
|
|
42,138 |
|
|
|
50,590 |
|
Goodwill |
|
|
4,630 |
|
|
|
4,630 |
|
Inventory, net |
|
|
373,282 |
|
|
|
316,637 |
|
Other assets |
|
|
449,686 |
|
|
|
286,456 |
|
Total assets |
|
$ |
3,449,252 |
|
|
$ |
2,964,685 |
|
|
|
|
|
|
Liabilities |
|
|
|
|
Accounts payable and accrued
liabilities |
|
$ |
128,708 |
|
|
$ |
112,907 |
|
Debt, net |
|
|
3,077,596 |
|
|
|
2,517,343 |
|
Maintenance deposits |
|
|
75,939 |
|
|
|
65,387 |
|
Security deposits |
|
|
41,536 |
|
|
|
41,065 |
|
Other liabilities |
|
|
55,906 |
|
|
|
52,100 |
|
Total liabilities |
|
$ |
3,379,685 |
|
|
$ |
2,788,802 |
|
|
|
|
|
|
Commitments and
contingencies |
|
|
|
|
|
|
|
|
|
Equity |
|
|
|
|
Ordinary shares ($0.01 par
value per share; 2,000,000,000 shares authorized; 102,211,402 and
100,245,905 shares issued and outstanding as of June 30, 2024
and December 31, 2023, respectively) |
|
$ |
1,022 |
|
|
$ |
1,002 |
|
Preferred shares ($0.01 par
value per share; 200,000,000 shares authorized; 15,920,000 and
15,920,000 shares issued and outstanding as of June 30, 2024
and December 31, 2023, respectively) |
|
|
159 |
|
|
|
159 |
|
Additional paid in
capital |
|
|
330,419 |
|
|
|
255,973 |
|
Accumulated deficit |
|
|
(262,033 |
) |
|
|
(81,785 |
) |
Shareholders' equity |
|
|
69,567 |
|
|
|
175,349 |
|
Non-controlling interest in
equity of consolidated subsidiaries |
|
|
— |
|
|
|
534 |
|
Total equity |
|
|
69,567 |
|
|
|
175,883 |
|
Total liabilities and
equity |
|
$ |
3,449,252 |
|
|
$ |
2,964,685 |
|
|
|
|
|
|
|
|
|
|
Key Performance Measures
The Chief Operating Decision Maker (“CODM”)
utilizes Adjusted EBITDA as our key performance measure.
Adjusted EBITDA provides the CODM with the
information necessary to assess operational performance, as well as
make resource and allocation decisions. Adjusted EBITDA is defined
as net income (loss) attributable to shareholders from continuing
operations, adjusted (a) to exclude the impact of provision for
income taxes, equity-based compensation expense, acquisition and
transaction expenses, losses on the modification or extinguishment
of debt and capital lease obligations, changes in fair value of
non-hedge derivative instruments, asset impairment charges,
incentive allocations, depreciation and amortization expense,
dividends on preferred shares, and interest expense,
internalization fee to affiliate, (b) to include the impact of our
pro-rata share of Adjusted EBITDA from unconsolidated entities, and
(c) to exclude the impact of equity in earnings (losses) of
unconsolidated entities and the non-controlling share of Adjusted
EBITDA.
The following table sets forth a reconciliation
of net (loss) income attributable to shareholders to Adjusted
EBITDA for the three and six months ended June 30, 2024 and
2023:
|
|
Three Months Ended June 30, |
|
Change |
|
Six Months EndedJune 30, |
|
Change |
(in thousands) |
|
|
2024 |
|
|
|
2023 |
|
|
|
|
2024 |
|
|
|
2023 |
|
|
Net (loss) income attributable to
shareholders |
|
$ |
(228,205 |
) |
|
$ |
46,418 |
|
|
$ |
(274,623 |
) |
|
$ |
(196,918 |
) |
|
$ |
69,024 |
|
|
$ |
(265,942 |
) |
Add: (Benefit from) provision
for income taxes |
|
|
(13,033 |
) |
|
|
1,855 |
|
|
|
(14,888 |
) |
|
|
(7,461 |
) |
|
|
3,881 |
|
|
|
(11,342 |
) |
Add: Equity-based compensation
expense |
|
|
638 |
|
|
|
510 |
|
|
|
128 |
|
|
|
1,148 |
|
|
|
618 |
|
|
|
530 |
|
Add: Acquisition and
transaction expenses |
|
|
8,019 |
|
|
|
2,672 |
|
|
|
5,347 |
|
|
|
14,198 |
|
|
|
5,934 |
|
|
|
8,264 |
|
Add: Losses on the
modification or extinguishment of debt and capital lease
obligations |
|
|
13,920 |
|
|
|
— |
|
|
|
13,920 |
|
|
|
13,920 |
|
|
|
— |
|
|
|
13,920 |
|
Add: Changes in fair value of
non-hedge derivative instruments |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Add: Asset impairment
charges |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
962 |
|
|
|
1,220 |
|
|
|
(258 |
) |
Add: Incentive
allocations |
|
|
3,148 |
|
|
|
5,324 |
|
|
|
(2,176 |
) |
|
|
7,456 |
|
|
|
8,266 |
|
|
|
(810 |
) |
Add: Depreciation and
amortization expense (1) |
|
|
65,809 |
|
|
|
48,934 |
|
|
|
16,875 |
|
|
|
124,931 |
|
|
|
97,704 |
|
|
|
27,227 |
|
Add: Interest expense and
dividends on preferred shares |
|
|
63,531 |
|
|
|
46,834 |
|
|
|
16,697 |
|
|
|
119,573 |
|
|
|
92,917 |
|
|
|
26,656 |
|
Add: Internalization fee to
affiliate |
|
|
300,000 |
|
|
|
— |
|
|
|
300,000 |
|
|
|
300,000 |
|
|
|
— |
|
|
|
300,000 |
|
Add: Pro-rata share of
Adjusted EBITDA from unconsolidated entities (2) |
|
|
(617 |
) |
|
|
150 |
|
|
|
(767 |
) |
|
|
(1,165 |
) |
|
|
(546 |
) |
|
|
(619 |
) |
Less: Equity in losses of
unconsolidated entities |
|
|
694 |
|
|
|
380 |
|
|
|
314 |
|
|
|
1,361 |
|
|
|
1,715 |
|
|
|
(354 |
) |
Less: Non-controlling share of
Adjusted EBITDA |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Adjusted EBITDA
(non-GAAP) |
|
$ |
213,904 |
|
|
$ |
153,077 |
|
|
$ |
60,827 |
|
|
$ |
378,005 |
|
|
$ |
280,733 |
|
|
$ |
97,272 |
|
_______________________________(1) Includes the following items for
the three months ended June 30, 2024 and 2023: (i)
depreciation and amortization expense of $56,691 and $38,514, (ii)
lease intangible amortization of $3,786 and $3,616 and (iii)
amortization for lease incentives of $5,332 and $6,804,
respectively. Includes the following items for the six months ended
June 30, 2024 and 2023: (i) depreciation and amortization
expense of $106,611 and $79,440, (ii) lease intangible amortization
of $7,762 and $7,762 and (iii) amortization for lease incentives of
$10,558 and $10,665, respectively.(2) Includes the following items
for the three months ended June 30, 2024 and 2023: (i) net
loss of $694 and $380, (ii) depreciation and amortization
expense of $77 and $435, and (iii) acquisition and transaction
expenses of $0 and $95, respectively. Includes the following items
for the six months ended June 30, 2024 and 2023: (i) net loss
of $1,361 and $1,715, (ii) depreciation and amortization
expense of $196 and $835, and (iii) acquisition and transaction
expenses of $0 and $334, respectively. |
Grafico Azioni FTAI Aviation (NASDAQ:FTAI)
Storico
Da Nov 2024 a Dic 2024
Grafico Azioni FTAI Aviation (NASDAQ:FTAI)
Storico
Da Dic 2023 a Dic 2024