On March 7, 2024, AerSale Corp (ASLE, Financial) released its 8-K filing, disclosing its financial results for the fourth quarter and full year ended December 31, 2023. The company, a global leader in aviation aftermarket products and services, faced challenges in the fourth quarter as anticipated flight equipment sales were postponed to 2024, significantly impacting financial outcomes. Despite these challenges, AerSale's CEO Nicolas Finazzo remains optimistic about the robust demand for the company's products and services and expects improved results in the upcoming year.
AerSale's performance in the fourth quarter was marked by a slight decrease in revenue to $94.4 million, down from $95.1 million in the same quarter of the previous year. The company experienced a GAAP net loss of $2.7 million, a stark contrast to the net income of $9.2 million reported in the fourth quarter of 2022. Adjusted EBITDA also saw a decline, dropping to $6.0 million from $17.7 million year-over-year (YOY).
The company's Asset Management Solutions segment saw a 4.9% decline in revenue due to lower flight equipment sales, while the Technical Operations segment improved by 10.0% compared to the fourth quarter of 2022, driven by strong demand for MRO services. Gross margin decreased to 25.9% in the fourth quarter of 2023 from 36.0% in the prior-year period, primarily due to a lower mix of higher-margin flight equipment sales.
Despite the operational challenges, AerSale achieved a significant milestone with the FAA's issuance of a Supplemental Type Certificate for AerAware™, the company's revolutionary Enhanced Flight Vision System for the Boeing B737NG product line. This certification marks the world's first commercial EFVS to achieve a 50% visual advantage and is expected to be transformative for the industry.
Looking at the balance sheet, AerSale ended the year with $136.9 million in liquidity, including $5.9 million in cash and available capacity of $131.0 million on its $180 million revolving credit facility. The company's continued investment in feedstock opportunities utilized most of the available cash as of December 31, 2023.
For the full year 2023, AerSale reported consolidated revenue of $334.5 million, a decrease of 18.1% from $408.5 million for the full year 2022. The full-year results were also impacted by lower flight equipment sales, with the company reporting a loss from operations of $10.8 million, down from an income from operations of $55.0 million in 2022.
Chief Financial Officer Martin Garmendia noted the impact of lower flight equipment sales on the fourth-quarter and full-year results but expressed confidence in the underlying business's resilience and momentum. AerSale is adjusting its approach to guidance due to the volatility in flight equipment sales and will no longer provide numerical full-year guidance, focusing instead on qualitative details about future opportunities and outcomes.
The company's strategic developments, particularly the certification and launch of AerAware™, are expected to contribute significantly to AerSale's future performance. With a diversified platform and a bullish outlook for 2024 and beyond, AerSale is poised to capitalize on the current market dynamics and drive growth from its integrated aftermarket services and products.
For more detailed information on AerSale's financial results and future prospects, investors and interested parties are encouraged to join the earnings call or access the webcast available on the company's investor relations website.
Explore the complete 8-K earnings release (here) from AerSale Corp for further details.
