NEW YORK, July 26, 2023 (GLOBE NEWSWIRE) -- FTAI Aviation Ltd. ( FTAI) (the “Company” or “FTAI”) today reported financial results for the second quarter 2023. 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 | Q2’23 | |||
| Net Income Attributable to Shareholders | $ | 46,418 | ||
| Basic Earnings per Ordinary Share from Continuing Operations | $ | 0.47 | ||
| Diluted Earnings per Ordinary Share from Continuing Operations | $ | 0.46 | ||
| Adjusted EBITDA(1) | $ | 153,077 | ||
| ____________________________ | ||||
| (1) For definitions and reconciliations of non-GAAP measures, please refer to the exhibit to this press release. | ||||
Second Quarter 2023 Dividends
On July 25, 2023, 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, 2023, payable on August 29, 2023 to the holders of record on August 14, 2023.
Additionally, on July 25, 2023, 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, 2023, payable on September 15, 2023 to the holders of record on September 1, 2023.
Business Highlights
- Q2 2023 Net Income attributable to Shareholders of $46.4 million
- $30.1 million Aerospace Products Adj. EBITDA at 44% overall margin
- Generated $148.0 million positive cashflow for asset acquisition & investment activity
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 Thursday, July 27, 2023 at 8:00 A.M. Eastern Time. The conference call may be accessed by registering at https://register.vevent.com/register/BI7cde64c0dac24e88bb4ba97051465bde. 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 Thursday, July 27, 2023 through 11:30 A.M. on Thursday, August 3, 2023 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 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. 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 Andreini
Investor Relations
FTAI Aviation Ltd.
(646) 734-9414
[email protected]
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, | ||||||||||||||
| 2023 | 2022 | 2023 | 2022 | ||||||||||||
| Revenues | |||||||||||||||
| Lease income | $ | 59,541 | $ | 39,640 | $ | 115,519 | $ | 78,965 | |||||||
| Maintenance revenue | 42,065 | 39,932 | 77,206 | 76,664 | |||||||||||
| Asset sales revenue | 101,486 | — | 210,177 | — | |||||||||||
| Aerospace products revenue | 68,075 | 26,497 | 153,188 | 40,810 | |||||||||||
| Other revenue | 3,178 | 5,995 | 10,973 | 7,316 | |||||||||||
| Total revenues | 274,345 | 112,064 | 567,063 | 203,755 | |||||||||||
| Expenses | |||||||||||||||
| Cost of sales | 104,532 | 15,141 | 250,202 | 24,191 | |||||||||||
| Operating expenses | 24,797 | 19,000 | 47,331 | 80,800 | |||||||||||
| General and administrative | 3,188 | 3,906 | 7,255 | 8,467 | |||||||||||
| Acquisition and transaction expenses | 2,672 | 3,219 | 5,934 | 5,492 | |||||||||||
| Management fees and incentive allocation to affiliate | 5,563 | — | 8,560 | — | |||||||||||
| Depreciation and amortization | 38,514 | 39,303 | 79,440 | 80,608 | |||||||||||
| Asset impairment | — | 886 | 1,220 | 123,676 | |||||||||||
| Interest expense | 38,499 | 47,889 | 77,791 | 92,030 | |||||||||||
| Total expenses | 217,765 | 129,344 | 477,733 | 415,264 | |||||||||||
| Other (expense) income | |||||||||||||||
| Equity in (losses) earnings of unconsolidated entities | (380 | ) | 35 | (1,715 | ) | 233 | |||||||||
| Gain on sale of assets, net | — | 63,645 | — | 79,933 | |||||||||||
| Other income | 408 | 1,118 | 416 | 1,246 | |||||||||||
| Total other income (expense) | 28 | 64,798 | (1,299 | ) | 81,412 | ||||||||||
| Income (loss) from continuing operations before income taxes | 56,608 | 47,518 | 88,031 | (130,097 | ) | ||||||||||
| Provision for income taxes | 1,855 | 1,829 | 3,881 | 3,168 | |||||||||||
| Net income (loss) from continuing operations | 54,753 | 45,689 | 84,150 | (133,265 | ) | ||||||||||
| Net loss from discontinued operations, net of income taxes | — | (35,929 | ) | — | (86,634 | ) | |||||||||
| Net income (loss) | 54,753 | 9,760 | 84,150 | (219,899 | ) | ||||||||||
| Less: Net loss attributable to non-controlling interests in consolidated subsidiaries: | |||||||||||||||
| Continuing operations | — | — | — | — | |||||||||||
| Discontinued operations | — | (8,480 | ) | — | (15,946 | ) | |||||||||
| Less: Dividends on preferred shares | 8,335 | 6,791 | 15,126 | 13,582 | |||||||||||
| Net income (loss) attributable to shareholders | $ | 46,418 | $ | 11,449 | $ | 69,024 | $ | (217,535 | ) | ||||||
| Earnings (loss) per share: | |||||||||||||||
| Basic | |||||||||||||||
| Continuing operations | $ | 0.47 | $ | 0.40 | $ | 0.69 | $ | (1.48 | ) | ||||||
| Discontinued operations | $ | — | $ | (0.28 | ) | $ | — | $ | (0.71 | ) | |||||
| Diluted | |||||||||||||||
| Continuing operations | $ | 0.46 | $ | 0.39 | $ | 0.69 | $ | (1.48 | ) | ||||||
| Discontinued operations | $ | — | $ | (0.28 | ) | $ | — | $ | (0.71 | ) | |||||
| Weighted average shares outstanding: | |||||||||||||||
| Basic | 99,732,179 | 99,370,301 | 99,730,223 | 99,367,597 | |||||||||||
| Diluted | 100,462,277 | 99,805,455 | 100,314,508 | 99,367,597 | |||||||||||
| FTAI AVIATION LTD. | ||||||||
| CONSOLIDATED BALANCE SHEETS (Unaudited) | ||||||||
| (Dollar amounts in thousands, except share and per share data) | ||||||||
| (Unaudited) | ||||||||
