Third Quarter 2024 Highlights
- Revenue of $82.7 million versus $92.5 million in the prior year
period.
- GAAP net income of $0.5 million versus GAAP net loss of $0.1
million in the prior year period.
- Adjusted Net Income of $1.8 million versus Adjusted Net Income
of $0.9 million in the prior year period.
- Adjusted EBITDA1 of $8.2 million versus $1.9 million in the
prior year period.
- Flight equipment sales consisted of five engines and no
aircraft compared to seven engines and a passenger-to-freighter
(P2F”) converted Boeing 757 aircraft in the prior year period.
- Feedstock acquisitions of $42 million and additional $45
million under contract as of September 30, 2024.
- Flight Equipment inventory of $413.6 million as of September
30, 2024.
AerSale Corporation (Nasdaq: ASLE) (the “Company”) today
reported results for the third quarter ended September 30, 2024.
The Company’s revenue for the third quarter of 2024 was $82.7
million compared to $92.5 million in the third quarter of 2023. In
the current period, the Company sold $22.6 million of flight
equipment, compared to $44.8 million in the prior-year. Flight
equipment sales in the third quarter of 2024 consisted of five
engines and no aircraft compared to seven engines and a P2F
converted Boeing 757 aircraft in the prior year period. Excluding
flight equipment sales, revenue increased 26.0% year over year to
$60.1 million, driven by strong commercial demand, improved
feedstock and a supportive MRO environment which continued to drive
volume. As a reminder to investors, the Company revenue is likely
to fluctuate from quarter-to-quarter and year-to-year based on
flight equipment sales and therefore, progress should be monitored
based on MRO activity, asset purchases and related sales.
Nick Finazzo, AerSale’s Chief Executive Officer, commented, “Our
base business continued to grow in the third quarter and was up 26%
year-over-year excluding whole asset sales. This is reflective of
stronger feedstock availability and a robust commercial backdrop
for USM and MRO.
As we look to the balance of the year and into 2025, we are
positioned for significant cash generation as we focus on
monetizing feedstock and our 757 conversion program, along with
driving incremental revenue through our MRO facilities as our
expansion projects come on line.”
Asset Management Solutions (“Asset Management") revenue
decreased to $50.4 million during the third quarter of 2024
compared to $65.1 million in the third quarter of 2023, entirely
the result of higher whole asset sales in the prior-year which
included the delivery of a 757 P2F conversion. Excluding whole
assets which are volatile, sales were up 36.9% year-over-year,
driven by higher leasing and USM volume. The Company had 4
additional engines on lease in 2024 compared to 2023. There were no
aircraft on lease in either period.
TechOps revenue increased 17.6% to $32.3 million in the third
quarter of 2024 from $27.4 million in the third quarter of 2023
primarily due to higher revenues from the Company’s component and
landing gear MRO’s. On airport MRO services saw weaker demand
during the quarter specifically in AerSale’s Goodyear facility,
which was partially offset by stronger demand in the Company’s
Roswell on-airport MRO facility.
Gross margin was 28.6% versus 25.4% in the same period last year
as a result of the sales mix that comprised of higher margin whole
engines and airframe USM.
Selling, general, and administrative expenses were $21.7 million
in the third quarter of 2024 versus $25.4 million in the third
quarter of 2023. AerSale incurred $1.2 million of share-based
compensation expense in the third quarter of 2024, versus $3.2
million in the third quarter of 2023.
Income from operations was $2.0 million in the third quarter of
2024 compared to a loss from operations of $1.9 million in the
third quarter of 2023.
Income tax expense was $0.1 million in the third quarter of
2024, compared to income tax benefit of $2.0 million in the third
quarter of 2023.
GAAP net income for the third quarter of 2024 was $0.5 million,
compared to GAAP net loss of $0.1 million in the prior year period.
AerSale recognized a mark-to-market adjustment benefit of $0.2
million related to the private warrant liability, $1.2 million of
share-based compensation expenses within payroll expenses, and $0.3
million in facility relocation costs during the third quarter of
2024. Excluding these non-cash and unusual items adjusted for tax,
Adjusted Net Income was $1.8 million in the third quarter of 2024,
compared to Adjusted Net Income of $0.9 million in the third
quarter of 2023.
Diluted earnings per share was $0.01 for the third quarter of
2024 and diluted loss per was $0.00 in the third quarter of 2023.
Adjusted for the non-cash and unusual items noted above, adjusted
diluted loss per share was $0.04 for the third quarter of 2024
while adjusted diluted earnings per share of $0.03 in the third
quarter of 2023.
Adjusted EBITDA in the third quarter of 2024 was $8.2 million
versus $1.9 million in the third quarter of 2023. Higher adjusted
EBITDA was primarily due higher sales volume during the period and
lower period expenses.
AerSale ended the quarter with $103.5 million of liquidity
consisting of $9.8 million of cash and available capacity of $93.7
million on our $180 million revolving credit facility, expandable
to $200 million. Cash used in operating activities year to date was
$26.4 million, mainly due to continued investment in inventory.
Conference Call Information
The Company will host a conference call today, November 7, 2024,
at 4:30 pm Eastern Time to discuss these results. A live webcast
will also be available at
https://ir.aersale.com/news-events/events. Participants may access
the call at 1-800-225-9448, international callers may use
1-203-518-9708, and request to join the AerSale Corporation
earnings call.
A telephonic replay will be available shortly after the
conclusion of the call and until February 7, 2025. Participants may
access the replay at 1-844-512-2921, international callers may use
1-412-317-6671, and enter access code 11157096. An archived replay
of the call will also be available on the Investors portion of the
AerSale website at https://ir.aersale.com/.
Non-GAAP Financial Measures
This press release includes non-GAAP financial measures,
including adjusted EBITDA, adjusted Net Income, and adjusted
diluted Earnings per Share. AerSale defines adjusted EBITDA as net
income (loss) after giving effect to interest expense, depreciation
and amortization, income tax expense (benefit), and other
non-recurring or unusual items. Adjusted Net Income is defined as
net income (loss) after giving effect to mark-to-market adjustments
relating to our Private Warrants, share-based compensation expense
and other non-recurring or unusual items as well as the tax effect
of such items. Adjusted diluted earnings per share also exclude
these material non-recurring or unusual items.
AerSale believes these non-GAAP measures of financial results
provide useful information to management and investors regarding
certain financial and business trends relating to AerSale’s
financial condition and results of operations. AerSale’s management
uses certain of these non-GAAP measures to compare AerSale’s
performance to that of prior periods for trend analyses and for
budgeting and planning purposes. These non- GAAP measures should
not be construed as an alternative to net income or net income
margin as an indicator of operating performance or as an
alternative to cash flow provided by operating activities as a
measure of liquidity (each as determined in accordance with
GAAP).
You should review AerSale’s audited financial statements, and
not rely on any single financial measure to evaluate AerSale’s
business. Other companies may calculate adjusted EBITDA, adjusted
Net Income, or Adjusted diluted earnings per share differently, and
therefore AerSale’s adjusted EBITDA, adjusted Net Income, or
adjusted diluted earnings per share measures may not be directly
comparable to similarly titled measures of other companies.
Reconciliations of Net Income, the Company’s closest GAAP
measure, to adjusted EBITDA, adjusted Net Income, and adjusted
diluted earnings per share, are outlined in the tables below
following the Company’s condensed consolidated financial
statements.
Third Quarter 2024 Financial Results
AERSALE CORPORATION
CONDENSED CONSOLIDATED STATEMENTS
OF OPERATIONS
(in thousands, except per share
data)
(Unaudited)
Three Months Ended September
30,
Nine Months Ended September
30,
2024
2023
2024
2023
Revenue:
Products
$
47,719
$
66,842
$
152,627
$
149,960
Leasing
6,900
2,488
14,268
11,396
Services
28,065
23,154
83,430
78,725
Total revenue
82,684
92,484
250,325
240,081
Cost of sales and operating expenses:
Cost of products
31,680
48,697
99,830
107,176
Cost of leasing
2,424
1,051
5,511
3,253
Cost of services
24,905
19,262
70,793
61,647
Total cost of sales
59,009
69,010
176,134
172,076
Gross profit
23,675
23,474
74,191
68,005
Selling, general, and administrative
expenses
21,679
25,403
69,384
77,724
Income (loss) from operations
1,996
(1,929
)
4,807
(9,719
)
Other (expenses) income:
Interest (expense) income, net
(1,768
)
(250
)
(4,231
)
1,178
Other income, net
128
127
399
498
Change in fair value of warrant
liability
231
(55
)
2,348
1,004
Total other (expenses) income
(1,409
)
(178
)
(1,484
)
2,680
Income (loss) before income tax
provision
587
(2,107
)
3,323
(7,039
)
Income tax (expense) benefit
(78
)
1,959
(174
)
4,208
Net income (loss)
$
509
$
(148
)
$
3,149
$
(2,831
)
Earnings (loss) per share:
Basic
$
0.01
$
(0.00
)
$
0.06
$
(0.06
)
Diluted
$
0.01
$
(0.00
)
$
0.06
$
(0.07
)
Weighted average shares outstanding:
Basic
53,208,538
51,321,026
53,076,733
51,252,581
Diluted
53,385,111
51,321,026
53,272,973
51,430,205
AERSALE CORPORATION
CONDENSED CONSOLIDATED BALANCE
SHEET
(in thousands, except share
data)
(Unaudited)
September 30,
December 31,
2024
2023
Current assets:
Cash and cash equivalents
$
9,787
$
5,873
Accounts receivable, net of allowance for
credit losses of $1,173 and $978 as of September 30, 2024 and
December 31, 2023, respectively
33,745
31,239
Income tax receivable
2,039
1,628
Inventory:
Aircraft, airframes, engines, and parts,
net
263,728
177,770
Advance vendor payments
12,257
35,757
Deposits, prepaid expenses, and other
current assets
18,180
12,507
Total current assets
339,736
264,774
Fixed assets:
Aircraft and engines held for lease,
net
40,163
26,475
Property and equipment, net
32,710
27,692
Inventory:
Aircraft, airframes, engines, and parts,
net
109,706
151,398
Operating lease right-of-use assets
24,796
27,519
Deferred income taxes
11,736
12,203
Deferred financing costs, net
1,259
1,506
Other assets
525
525
Goodwill
19,860
19,860
Other intangible assets, net
20,965
21,986
Total assets
$
601,456
$
553,938
Current liabilities:
Accounts payable
$
34,870
$
29,899
Accrued expenses
6,221
5,478
Lessee and customer purchase deposits
914
1,467
Current operating lease liabilities
4,062
4,593
Current portion of long-term debt
193
1,278
Deferred revenue
854
2,998
Total current liabilities
47,114
45,713
Revolving credit facility
78,513
29,000
Long-term debt
376
7,281
Long-term lease deposits
1,537
102
Long-term operating lease liabilities
22,297
24,377
Maintenance deposit payments and other
liabilities
57
64
Warrant liability
38
2,386
Total liabilities
149,932
108,923
Stockholders’ equity:
Common stock, $0.0001 par value.
Authorized 200,000,000 shares; issued and outstanding 53,210,842
and 52,954,430 shares as of September 30, 2024 and December 31,
2023
5
5
Additional paid-in capital
315,099
311,739
Retained earnings
136,420
133,271
Total stockholders' equity
451,524
445,015
Total liabilities and stockholders’
equity
$
601,456
$
553,938
AERSALE CORPORATION
CONDENSED CONSOLIDATED STATEMENTS
OF CASH FLOWS
(in thousands)
(Unaudited)
Nine Months Ended September
30,
2024
2023
Cash flows from operating activities:
Net income (loss)
$
3,149
$
(2,831
)
Adjustments to reconcile net income (loss)
to net cash used in operating activities:
Depreciation and amortization
10,945
7,585
Amortization of debt issuance costs
248
316
Amortization of operating lease assets
111
286
Inventory reserve
1,809
1,255
Provision for doubtful accounts
195
-
Deferred income taxes
467
(2,331
)
Change in fair value of warrant
liability
(2,348
)
(1,004
)
Share-based compensation
3,159
8,939
Changes in operating assets and
liabilities:
Deferred financing costs
-
(1,361
)
Accounts receivable
(2,700
)
(1,447
)
Income tax receivable
(411
)
(1,313
)
Inventory
(62,587
)
(168,313
)
Deposits, prepaid expenses, and other
current assets
(5,673
)
(2,313
)
Other assets
(575
)
93
Advance vendor payments
23,500
(8,212
)
Accounts payable
4,973
17,824
Accrued expenses
657
(5,015
)
Deferred revenue
(2,144
)
1,038
Lessee and customer purchase deposits
882
(10,641
)
Other liabilities
(11
)
(606
)
Net cash used in operating activities
(26,354
)
(168,051
)
Cash flows from investing activities:
Proceeds from sale of assets
3,800
14,450
Acquisition of aircraft and engines held
for lease, including capitalized cost
(6,488
)
-
Purchase of property and equipment
(8,768
)
(7,766
)
Net cash (used in) provided by investing
activities
(11,456
)
6,684
Cash flows from financing activities:
Proceeds from long-term debt
615
8,559
Repayments of long-term debt
(8,605
)
-
Proceeds from revolving credit
facility
132,294
26,100
Repayments of revolving credit
facility
(82,781
)
(17,500
)
Taxes paid related to net share settlement
of equity awards
(124
)
(104
)
Proceeds from the issuance of Employee
Stock Purchase Plan shares
325
278
Net cash provided by financing
activities
41,724
17,333
Increase (decrease) in cash and cash
equivalents
3,914
(144,034
)
Cash and cash equivalents, beginning of
period
5,873
147,188
Cash and cash equivalents, end of
period
$
9,787
$
3,154
Supplemental disclosure of cash
activities
Income tax payments, net
$
(20
)
$
1,306
Interest paid
$
4,173
$
575
Supplemental disclosure of noncash
investing activities
Reclassification of aircraft and aircraft
engines inventory to (from) aircraft and engine held for lease,
net
$
12,711
$
9,312
Adjusted EBITDA, Net Income and
Diluted EPS
Reconciliation Table (In
thousands, except per share data)
(Unaudited)
Three months ended September
30,
Nine months ended September
30,
% of Total
% of Total
% of Total
% of Total
2024
Revenue
2023
Revenue
2024
Revenue
2023
Revenue
Reported Net Income (Loss)
$ 509
0.6%
$ (148)
(0.2)%
$ 3,149
1.3%
$ (2,831)
(1.2)%
Addbacks:
Change in FV of Warrant Liability
(231)
(0.3)%
55
0.1%
(2,348)
(0.9)%
(1,004)
(0.4)%
Stock Compensation
1,216
1.5%
3,180
3.4%
3,159
1.3%
8,939
3.7%
Payroll taxes related to stock-based
compensation
66
0.1%
-
0.0%
102
0.0%
-
0.0%
Inventory Write-Off
-
0.0%
(2,670)
(2.9)%
(237)
(0.1)%
(2,670)
(1.1)%
Secondary Offering Costs
-
0.0%
315
0.3%
55
0.0%
624
0.3%
Facility Relocation Costs
332
0.4%
327
0.4%
1,156
0.5%
1,049
0.4%
Income Tax Effect of Adjusting Items
(1)
(80)
(0.1)%
(174)
(0.2)%
(291)
(0.1)%
(670)
(0.3)%
Adjusted Net Income
1,812
2.2%
885
0.9%
4,745
2.0%
3,437
1.4%
Interest Expense
1,768
2.1%
250
0.3%
4,231
1.7%
(1,178)
(0.5)%
Income Tax Expense (Benefit)
78
0.1%
(1,959)
(2.1)%
174
0.1%
(4,208)
(1.8)%
Depreciation and Amortization
4,511
5.5%
2,516
2.7%
10,945
4.4%
7,585
3.2%
Reversal of Income Tax Effect of Adjusting
Items (1)
80
0.1%
174
0.2%
291
0.1%
670
0.3%
Adjusted EBITDA
$ 8,249
10.0%
$ 1,866
2.0%
$ 20,386
8.3%
$ 6,306
2.6%
Reported Basic earnings (loss) per
share
$ 0.01
$ (0.00)
$ 0.06
$ (0.06)
Addbacks:
Change in fair value of warrant
liability
(0.00)
0.00
(0.04)
(0.02)
Stock-based compensation
0.02
0.06
0.06
0.17
Payroll taxes related to stock-based compensation
0.00
-
0.00
-
Inventory Write-Off
-
(0.05)
(0.00)
(0.05)
Secondary Offering Costs
-
0.01
0.00
0.01
Facility Relocation Costs
0.01
0.01
0.02
0.02
Income Tax Effect of Adjusting Items
-
(0.00)
(0.01)
(0.01)
Adjusted Basic earnings per share
$ 0.04
$ 0.03
$ 0.09
$ 0.06
Reported Diluted earnings (loss) per
share
0.01
(0.00)
0.06
(0.07)
Addbacks:
Change in FV of warrant liability
(0.00)
0.00
(0.04)
(0.02)
Stock-based compensation
0.02
0.06
0.06
0.17
Payroll taxes related to stock-based compensation
0.00
-
0.00
-
Inventory Write-Off
-
(0.05)
(0.00)
(0.05)
Secondary Offering Costs
-
0.01
0.00
0.01
Facility Relocation Costs
0.01
0.01
0.02
0.02
Income Tax Effect of Adjusting Items
(0.00)
-
(0.01)
(0.01)
Adjusted Diluted earnings per share
$ 0.04
$ 0.03
$ 0.09
$ 0.05
(1) The income tax effect of current
period adjusting items is calculated at the Company's applicable
statutory rate of 24% after considering federal and state tax
rates.
Forward Looking Statements This press release includes
“forward-looking statements”. We intend such forward-looking
statements to be covered by the safe harbor provisions for
forward-looking statements contained in Section 27A of the
Securities Act of 1933, as amended (the “Securities Act”), and
Section 21E of the Securities Exchange Act of 1934, as amended (the
“Exchange Act”). All statements other than statements of historical
facts contained in this press release may constitute
forward-looking statements, and include, but are not limited to,
statements regarding our anticipated financial performance,
including anticipations regarding greater demand for AerSale’s USM
business; expectations regarding feedstock and commercial demand;
expectations from letters of intent on an additional $45 million in
inventory during the year; our belief that we are well positioned
to take advantage of the current market dynamic; our belief that we
are well positioned to take advantage of asset availability; our
growth trajectory; the expected operating capacity of our MRO
facilities and demand for such services; the sufficiency of our
liquidity; and expected benefits from an improving backdrop in
commercial aerospace, and end markets; AerSale’s actual results may
differ from their expectations, estimates and projections and
consequently, you should not rely on these forward-looking
statements as predictions of future events. Words such as “expect,”
“estimate,” “project,” “budget,” “forecast,” “anticipate,”
“intend,” “plan,” “may,” “will,” “could,” “should,” “believes,”
“predicts,” “potential,” “continue,” or the negative of these or
other similar expressions are intended to identify such
forward-looking statements. The forward-looking statements in this
press release are only predictions. We have based these
forward-looking statements largely on our current expectations and
projections about future events and financial trends that we
believe may affect our business, financial condition and results of
operations. You should carefully consider the foregoing factors and
the other risks and uncertainties described in the Risk Factors,
Management’s Discussion and Analysis of Financial Condition and
Results of Operations sections of the Company's most recent Annual
Report on Form 10-K filed with the Securities and Exchange
Commission ("SEC"), and its other filings with the SEC, including
its subsequent quarterly reports on Form 10-Q. These filings
identify and address other important risks and uncertainties that
could cause actual events and results to differ materially from
those contained in the forward-looking statements. Moreover, we
operate in an evolving environment. New risk factors and
uncertainties may emerge from time to time, and it is not possible
for management to predict all risk factors and uncertainties.
Forward-looking statements speak only as of the date they are
made. Readers are cautioned not to put undue reliance on
forward-looking statements and we qualify all of our
forward-looking statements by these cautionary statements. Except
as required by applicable law, we do not plan to publicly update or
revise any forward-looking statements contained herein, whether as
a result of any new information, future events, changed
circumstances or otherwise.
About AerSale AerSale serves airlines operating large
jets manufactured by Boeing, Airbus and McDonnell Douglas and is
dedicated to providing integrated aftermarket services and products
designed to help aircraft owners and operators to realize
significant savings in the operation, maintenance and monetization
of their aircraft, engines, and components. AerSale’s offerings
include: Aircraft & Component MRO, Aircraft and Engine Sales
and Leasing, Used Serviceable Material sales, and internally
developed ‘Engineered Solutions’ to enhance aircraft performance
and operating economics (e.g. AerSafe™, AerTrak™, and now
AerAware™).
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241107766769/en/
Media Contacts: For more information about AerSale,
please visit our website: www.AerSale.com. Follow us on: LinkedIn |
Twitter | Facebook | Instagram
AerSale: Jackie Carlon Telephone: (305) 764-3200 Email:
media.relations@aersale.com
Investor Contact: AerSale: AersaleIR@icrinc.com
AerSale (NASDAQ:ASLE)
過去 株価チャート
から 12 2024 まで 1 2025
AerSale (NASDAQ:ASLE)
過去 株価チャート
から 1 2024 まで 1 2025