Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil Hydroworld Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries FTAI Aviation Ltd. Reports Third Quarter 2023 Results, Declares Dividend of $0.30 per Ordinary Share By: FTAI Aviation Ltd. via GlobeNewswire October 25, 2023 at 16:15 PM EDT NEW YORK, Oct. 25, 2023 (GLOBE NEWSWIRE) -- FTAI Aviation Ltd. (NASDAQ: FTAI) (the “Company” or “FTAI”) today reported financial results for the third 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 ResultsQ3’23Net Income Attributable to Shareholders$32,973Basic Earnings per Ordinary Share from Continuing Operations$0.33Diluted Earnings per Ordinary Share from Continuing Operations$0.33Adjusted EBITDA(1)$154,218 _______________________________(1) For definitions and reconciliations of non-GAAP measures, please refer to the exhibit to this press release.Third Quarter 2023 Dividends On October 25, 2023, the Company’s Board of Directors (the “Board”) declared a cash dividend on FTAI’s ordinary shares of $0.30 per share for the quarter ended September 30, 2023, payable on November 28, 2023 to the holders of record on November 14, 2023. Additionally, on October 25, 2023, the Board declared cash dividends on FTAI’s 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 September 30, 2023, payable on December 15, 2023 to the holders of record on December 1, 2023. Business Highlights $107.1 million Aerospace Products revenue in Q3 2023 generating $40.6 million of Adjusted EBITDA(1) at a 38% margin.41 modules sold in Q3’23 to 11 unique customers including 2 new customers and 9 repeat customers.Generated $492 million year to date positive free cashflow available for asset acquisition & investment activity.Closed on 23 Engines & 10 Aircraft at attractive prices to help generate future growth in Aviation Leasing Adjusted EBITDA(1).(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 Thursday, October 26, 2023 at 8:00 A.M. Eastern Time. The conference call may be accessed by registering via the following link https://register.vevent.com/register/BIc75f7efaa03d41108edf9a7cf4d4ec2f. 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, October 26, 2023 through 11:30 A.M. on Thursday, November 2, 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 AndreiniInvestor RelationsFTAI Aviation Ltd.(646) 734-9414aandreini@fortress.com Exhibit - Financial StatementsFTAI AVIATION LTD.CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)(Dollar amounts in thousands, except share and per share data) Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Revenues Lease income$45,622 $50,198 $161,141 $129,163 Maintenance revenue 63,925 35,507 141,131 112,171 Asset sales revenue 72,990 85,488 283,167 85,488 Aerospace products revenue 107,085 53,401 260,273 94,211 Other revenue 1,474 5,771 12,447 13,087 Total revenues 291,096 230,365 858,159 434,120 Expenses Cost of sales 116,707 95,948 366,909 120,139 Operating expenses 33,887 27,393 81,218 108,197 General and administrative 3,015 3,354 10,270 11,821 Acquisition and transaction expenses 4,261 2,848 10,195 8,340 Management fees and incentive allocation to affiliate 4,577 4 13,137 4 Depreciation and amortization 43,959 34,853 123,399 115,461 Asset impairment — 4,495 1,220 128,171 Interest expense 40,185 40,171 117,976 132,197 Total expenses 246,591 209,066 724,324 624,330 Other income (expense) Equity in earnings (losses) of unconsolidated entities 46 (358) (1,669) (125)Gain on sale of assets, net — — — 79,933 Loss on extinguishment of debt — (19,861) — (19,861)Other income (expense) 461 (1,038) 877 208 Total other income (expense) 507 (21,257) (792) 60,155 Income (loss) from continuing operations before income taxes 45,012 42 133,043 (130,055)Provision for income taxes 3,705 4,189 7,586 7,357 Net income (loss) from continuing operations 41,307 (4,147) 125,457 (137,412)Net loss from discontinued operations, net of income taxes — (14,782) — (101,416)Net income (loss) 41,307 (18,929) 125,457 (238,828)Less: Net loss attributable to non-controlling interests in consolidated subsidiaries: Continuing operations — — — — Discontinued operations — (2,871) — (18,817)Less: Dividends on preferred shares 8,334 6,791 23,460 20,373 Net income (loss) attributable to shareholders$32,973 $(22,849) $101,997 $(240,384) Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Earnings (loss) per share: Basic Continuing operations$0.33 $(0.11) $1.02 $(1.59)Discontinued operations$— $(0.12) $— $(0.83)Diluted Continuing operations$0.33 $(0.11) $1.02 $(1.59)Discontinued operations$— $(0.12) $— $(0.83)Weighted average shares outstanding: Basic 99,927,594 99,378,771 99,796,736 99,372,016 Diluted 100,482,309 99,378,771 100,269,203 99,372,016 FTAI AVIATION LTD.CONSOLIDATED BALANCE SHEETS (Unaudited)(Dollar amounts in thousands, except share and per share data) (Unaudited) September 30, 2023 December 31, 2022 Assets Cash and cash equivalents$52,879 $33,565 Restricted cash — 19,500 Accounts receivable, net 107,825 99,443 Leasing equipment, net 1,924,198 1,913,553 Property, plant, and equipment, net 13,454 10,014 Investments 39,868 22,037 Intangible assets, net 41,471 41,955 Inventory, net 274,832 163,676 Other assets 179,259 125,834 Total assets$2,633,786 $2,429,577 Liabilities Accounts payable and accrued liabilities$108,579 $86,452 Debt, net 2,279,330 2,175,727 Maintenance deposits 61,497 78,686 Security deposits 39,901 32,842 Other liabilities 49,417 36,468 Total liabilities$2,538,724 $2,410,175 Commitments and contingencies Equity Common shares ($0.01 par value per share; 2,000,000,000 shares authorized; 100,238,075 and 99,716,621 shares issued and outstanding as of September 30, 2023 and December 31, 2022, respectively)$1,002 $997 Preferred shares ($0.01 par value per share; 200,000,000 shares authorized; 15,920,000 and 13,320,000 shares issued and outstanding as of September 30, 2023 and December 31, 2022, respectively) 159 133 Additional paid in capital 293,512 343,350 Accumulated deficit (200,145) (325,602) Shareholders' equity 94,528 18,878 Non-controlling interest in equity of consolidated subsidiaries 534 524 Total equity 95,062 19,402 Total liabilities and equity$2,633,786 $2,429,577 FTAI AVIATION LTD.CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)(Dollar amounts in thousands, unless otherwise noted) Nine Months Ended September 30, 2023 2022 Cash flows from operating activities: Net income (loss)$125,457 $(238,828)Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Equity in losses of unconsolidated entities 1,669 46,727 Gain on sale of assets, net (110,511) (106,427)Security deposits and maintenance claims included in earnings (34,458) (31,558)Loss on extinguishment of debt — 19,861 Equity-based compensation 1,128 2,623 Depreciation and amortization 123,399 155,780 Asset impairment 1,220 128,171 Change in deferred income taxes 5,974 14,923 Change in fair value of non-hedge derivative — (1,567)Change in fair value of guarantees (1,677) — Amortization of lease intangibles and incentives 33,685 30,315 Amortization of deferred financing costs 6,429 17,142 Provision for credit losses 6,583 47,226 Other (995) (693)Change in: Accounts receivable (34,358) (61,892)Inventory (4,845) (13,370)Other assets (3,727) (23,576)Accounts payable and accrued liabilities 321 4,329 Management fees payable to affiliate 824 (2,530)Other liabilities 648 (7,955)Net cash provided by (used in) operating activities 116,766 (21,299) Cash flows from investing activities: Investment in unconsolidated entities (19,500) (7,344)Principal collections on notes receivable 2,438 — Principal collections on finance leases 3,624 2,165 Acquisition of business, net of cash acquired — (3,819)Acquisition of leasing equipment (506,923) (360,642)Acquisition of property, plant and equipment (3,906) (138,750)Acquisition of lease intangibles (10,474) (6,542)Investment in promissory notes (11,500) — Purchase deposits for acquisitions (10,533) (28,621)Proceeds from sale of leasing equipment 366,065 262,096 Proceeds from sale of property, plant and equipment — 5,289 (Refunds) proceeds for deposit on sale of aircraft and engine (683) 7,801 Return of purchase deposits 300 — Net cash used in investing activities$(191,092) $(268,367) Cash flows from financing activities: Proceeds from debt$430,000 $503,980 Repayment of debt (330,000) (984,529)Payment of deferred financing costs (1,805) (18,151)Receipt of security deposits 7,355 2,636 Return of security deposits (2,385) (941)Receipt of maintenance deposits 22,747 37,586 Release of maintenance deposits (275) (878)Capital contributions from non-controlling interests 10 1,187 Settlement of equity-based compensation — (148)Proceeds from issuance of preferred shares, net of underwriter's discount and issuance costs 61,729 — Dividend from spin-off of FTAI Infrastructure, net of cash transferred — 500,562 Cash dividends - ordinary shares (89,776) (98,584)Cash dividends - preferred shares (23,460) (20,373)Net cash provided by (used in) financing activities$74,140 $(77,653) Net decrease in cash and cash equivalents and restricted cash (186) (367,319)Cash and cash equivalents and restricted cash, beginning of period 53,065 440,061 Cash and cash equivalents and restricted cash, end of period$52,879 $72,742 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, (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 income (loss) attributable to shareholders from continuing operations to Adjusted EBITDA for the three and nine months ended September 30, 2023 and 2022: Three Months Ended September 30, Change Nine Months EndedSeptember 30, Change(in thousands) 2023 2022 2023 2022 Net income (loss) attributable to shareholders from continuing operations$32,973 $(10,938) $43,911 $101,997 $(157,785) $259,782 Add: Provision for income taxes 3,705 4,189 (484) 7,586 7,357 229 Add: Equity-based compensation expense 510 — 510 1,128 — 1,128 Add: Acquisition and transaction expenses 4,261 2,848 1,413 10,195 8,340 1,855 Add: Losses on the modification or extinguishment of debt and capital lease obligations — 19,861 (19,861) — 19,861 (19,861)Add: Changes in fair value of non-hedge derivative instruments — — — — — — Add: Asset impairment charges — 4,495 (4,495) 1,220 128,171 (126,951)Add: Incentive allocations 4,274 — 4,274 12,540 — 12,540 Add: Depreciation and amortization expense(1) 59,380 41,329 18,051 157,084 145,754 11,330 Add: Interest expense and dividends on preferred shares 48,519 46,962 1,557 141,436 152,570 (11,134)Add: Pro-rata share of Adjusted EBITDA from unconsolidated entities(2) 642 (241) 883 96 165 (69)Less: Equity in (earnings) losses of unconsolidated entities (46) 358 (404) 1,669 125 1,544 Less: Non-controlling share of Adjusted EBITDA — — — — — — Adjusted EBITDA (non-GAAP)$154,218 $108,863 $45,355 $434,951 $304,558 $130,393 ___________________________________________________ (1) Includes the following items for the three months ended September 30, 2023 and 2022: (i) depreciation and amortization expense of $43,959 and $34,853, (ii) lease intangible amortization of $3,726 and $3,291 and (iii) amortization for lease incentives of $11,695 and $3,185, respectively. Includes the following items for the nine months ended September 30, 2023 and 2022: (i) depreciation and amortization expense of $123,399 and $115,461, (ii) lease intangible amortization of $11,325 and $10,259 and (iii) amortization for lease incentives of $22,360 and $20,034, respectively. (2) Includes the following items for the three months ended September 30, 2023 and 2022: (i) net income (loss) of $46 and $(358), (ii) depreciation and amortization expense of $367 and $117 and (iii) acquisition and transaction expense of $229 and $0, respectively. Includes the following items for the nine months ended September 30, 2023 and 2022: (i) net loss of $1,669 and $125, (ii) depreciation and amortization expense of $1,202 and $290 and (iii) acquisition and transaction expense of $563 and $0, respectively. Data & News supplied by www.cloudquote.io Stock quotes supplied by Barchart Quotes delayed at least 20 minutes. 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FTAI Aviation Ltd. Reports Third Quarter 2023 Results, Declares Dividend of $0.30 per Ordinary Share By: FTAI Aviation Ltd. via GlobeNewswire October 25, 2023 at 16:15 PM EDT NEW YORK, Oct. 25, 2023 (GLOBE NEWSWIRE) -- FTAI Aviation Ltd. (NASDAQ: FTAI) (the “Company” or “FTAI”) today reported financial results for the third 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 ResultsQ3’23Net Income Attributable to Shareholders$32,973Basic Earnings per Ordinary Share from Continuing Operations$0.33Diluted Earnings per Ordinary Share from Continuing Operations$0.33Adjusted EBITDA(1)$154,218 _______________________________(1) For definitions and reconciliations of non-GAAP measures, please refer to the exhibit to this press release.Third Quarter 2023 Dividends On October 25, 2023, the Company’s Board of Directors (the “Board”) declared a cash dividend on FTAI’s ordinary shares of $0.30 per share for the quarter ended September 30, 2023, payable on November 28, 2023 to the holders of record on November 14, 2023. Additionally, on October 25, 2023, the Board declared cash dividends on FTAI’s 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 September 30, 2023, payable on December 15, 2023 to the holders of record on December 1, 2023. Business Highlights $107.1 million Aerospace Products revenue in Q3 2023 generating $40.6 million of Adjusted EBITDA(1) at a 38% margin.41 modules sold in Q3’23 to 11 unique customers including 2 new customers and 9 repeat customers.Generated $492 million year to date positive free cashflow available for asset acquisition & investment activity.Closed on 23 Engines & 10 Aircraft at attractive prices to help generate future growth in Aviation Leasing Adjusted EBITDA(1).(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 Thursday, October 26, 2023 at 8:00 A.M. Eastern Time. The conference call may be accessed by registering via the following link https://register.vevent.com/register/BIc75f7efaa03d41108edf9a7cf4d4ec2f. 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, October 26, 2023 through 11:30 A.M. on Thursday, November 2, 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 AndreiniInvestor RelationsFTAI Aviation Ltd.(646) 734-9414aandreini@fortress.com Exhibit - Financial StatementsFTAI AVIATION LTD.CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)(Dollar amounts in thousands, except share and per share data) Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Revenues Lease income$45,622 $50,198 $161,141 $129,163 Maintenance revenue 63,925 35,507 141,131 112,171 Asset sales revenue 72,990 85,488 283,167 85,488 Aerospace products revenue 107,085 53,401 260,273 94,211 Other revenue 1,474 5,771 12,447 13,087 Total revenues 291,096 230,365 858,159 434,120 Expenses Cost of sales 116,707 95,948 366,909 120,139 Operating expenses 33,887 27,393 81,218 108,197 General and administrative 3,015 3,354 10,270 11,821 Acquisition and transaction expenses 4,261 2,848 10,195 8,340 Management fees and incentive allocation to affiliate 4,577 4 13,137 4 Depreciation and amortization 43,959 34,853 123,399 115,461 Asset impairment — 4,495 1,220 128,171 Interest expense 40,185 40,171 117,976 132,197 Total expenses 246,591 209,066 724,324 624,330 Other income (expense) Equity in earnings (losses) of unconsolidated entities 46 (358) (1,669) (125)Gain on sale of assets, net — — — 79,933 Loss on extinguishment of debt — (19,861) — (19,861)Other income (expense) 461 (1,038) 877 208 Total other income (expense) 507 (21,257) (792) 60,155 Income (loss) from continuing operations before income taxes 45,012 42 133,043 (130,055)Provision for income taxes 3,705 4,189 7,586 7,357 Net income (loss) from continuing operations 41,307 (4,147) 125,457 (137,412)Net loss from discontinued operations, net of income taxes — (14,782) — (101,416)Net income (loss) 41,307 (18,929) 125,457 (238,828)Less: Net loss attributable to non-controlling interests in consolidated subsidiaries: Continuing operations — — — — Discontinued operations — (2,871) — (18,817)Less: Dividends on preferred shares 8,334 6,791 23,460 20,373 Net income (loss) attributable to shareholders$32,973 $(22,849) $101,997 $(240,384) Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Earnings (loss) per share: Basic Continuing operations$0.33 $(0.11) $1.02 $(1.59)Discontinued operations$— $(0.12) $— $(0.83)Diluted Continuing operations$0.33 $(0.11) $1.02 $(1.59)Discontinued operations$— $(0.12) $— $(0.83)Weighted average shares outstanding: Basic 99,927,594 99,378,771 99,796,736 99,372,016 Diluted 100,482,309 99,378,771 100,269,203 99,372,016 FTAI AVIATION LTD.CONSOLIDATED BALANCE SHEETS (Unaudited)(Dollar amounts in thousands, except share and per share data) (Unaudited) September 30, 2023 December 31, 2022 Assets Cash and cash equivalents$52,879 $33,565 Restricted cash — 19,500 Accounts receivable, net 107,825 99,443 Leasing equipment, net 1,924,198 1,913,553 Property, plant, and equipment, net 13,454 10,014 Investments 39,868 22,037 Intangible assets, net 41,471 41,955 Inventory, net 274,832 163,676 Other assets 179,259 125,834 Total assets$2,633,786 $2,429,577 Liabilities Accounts payable and accrued liabilities$108,579 $86,452 Debt, net 2,279,330 2,175,727 Maintenance deposits 61,497 78,686 Security deposits 39,901 32,842 Other liabilities 49,417 36,468 Total liabilities$2,538,724 $2,410,175 Commitments and contingencies Equity Common shares ($0.01 par value per share; 2,000,000,000 shares authorized; 100,238,075 and 99,716,621 shares issued and outstanding as of September 30, 2023 and December 31, 2022, respectively)$1,002 $997 Preferred shares ($0.01 par value per share; 200,000,000 shares authorized; 15,920,000 and 13,320,000 shares issued and outstanding as of September 30, 2023 and December 31, 2022, respectively) 159 133 Additional paid in capital 293,512 343,350 Accumulated deficit (200,145) (325,602) Shareholders' equity 94,528 18,878 Non-controlling interest in equity of consolidated subsidiaries 534 524 Total equity 95,062 19,402 Total liabilities and equity$2,633,786 $2,429,577 FTAI AVIATION LTD.CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)(Dollar amounts in thousands, unless otherwise noted) Nine Months Ended September 30, 2023 2022 Cash flows from operating activities: Net income (loss)$125,457 $(238,828)Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Equity in losses of unconsolidated entities 1,669 46,727 Gain on sale of assets, net (110,511) (106,427)Security deposits and maintenance claims included in earnings (34,458) (31,558)Loss on extinguishment of debt — 19,861 Equity-based compensation 1,128 2,623 Depreciation and amortization 123,399 155,780 Asset impairment 1,220 128,171 Change in deferred income taxes 5,974 14,923 Change in fair value of non-hedge derivative — (1,567)Change in fair value of guarantees (1,677) — Amortization of lease intangibles and incentives 33,685 30,315 Amortization of deferred financing costs 6,429 17,142 Provision for credit losses 6,583 47,226 Other (995) (693)Change in: Accounts receivable (34,358) (61,892)Inventory (4,845) (13,370)Other assets (3,727) (23,576)Accounts payable and accrued liabilities 321 4,329 Management fees payable to affiliate 824 (2,530)Other liabilities 648 (7,955)Net cash provided by (used in) operating activities 116,766 (21,299) Cash flows from investing activities: Investment in unconsolidated entities (19,500) (7,344)Principal collections on notes receivable 2,438 — Principal collections on finance leases 3,624 2,165 Acquisition of business, net of cash acquired — (3,819)Acquisition of leasing equipment (506,923) (360,642)Acquisition of property, plant and equipment (3,906) (138,750)Acquisition of lease intangibles (10,474) (6,542)Investment in promissory notes (11,500) — Purchase deposits for acquisitions (10,533) (28,621)Proceeds from sale of leasing equipment 366,065 262,096 Proceeds from sale of property, plant and equipment — 5,289 (Refunds) proceeds for deposit on sale of aircraft and engine (683) 7,801 Return of purchase deposits 300 — Net cash used in investing activities$(191,092) $(268,367) Cash flows from financing activities: Proceeds from debt$430,000 $503,980 Repayment of debt (330,000) (984,529)Payment of deferred financing costs (1,805) (18,151)Receipt of security deposits 7,355 2,636 Return of security deposits (2,385) (941)Receipt of maintenance deposits 22,747 37,586 Release of maintenance deposits (275) (878)Capital contributions from non-controlling interests 10 1,187 Settlement of equity-based compensation — (148)Proceeds from issuance of preferred shares, net of underwriter's discount and issuance costs 61,729 — Dividend from spin-off of FTAI Infrastructure, net of cash transferred — 500,562 Cash dividends - ordinary shares (89,776) (98,584)Cash dividends - preferred shares (23,460) (20,373)Net cash provided by (used in) financing activities$74,140 $(77,653) Net decrease in cash and cash equivalents and restricted cash (186) (367,319)Cash and cash equivalents and restricted cash, beginning of period 53,065 440,061 Cash and cash equivalents and restricted cash, end of period$52,879 $72,742 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, (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 income (loss) attributable to shareholders from continuing operations to Adjusted EBITDA for the three and nine months ended September 30, 2023 and 2022: Three Months Ended September 30, Change Nine Months EndedSeptember 30, Change(in thousands) 2023 2022 2023 2022 Net income (loss) attributable to shareholders from continuing operations$32,973 $(10,938) $43,911 $101,997 $(157,785) $259,782 Add: Provision for income taxes 3,705 4,189 (484) 7,586 7,357 229 Add: Equity-based compensation expense 510 — 510 1,128 — 1,128 Add: Acquisition and transaction expenses 4,261 2,848 1,413 10,195 8,340 1,855 Add: Losses on the modification or extinguishment of debt and capital lease obligations — 19,861 (19,861) — 19,861 (19,861)Add: Changes in fair value of non-hedge derivative instruments — — — — — — Add: Asset impairment charges — 4,495 (4,495) 1,220 128,171 (126,951)Add: Incentive allocations 4,274 — 4,274 12,540 — 12,540 Add: Depreciation and amortization expense(1) 59,380 41,329 18,051 157,084 145,754 11,330 Add: Interest expense and dividends on preferred shares 48,519 46,962 1,557 141,436 152,570 (11,134)Add: Pro-rata share of Adjusted EBITDA from unconsolidated entities(2) 642 (241) 883 96 165 (69)Less: Equity in (earnings) losses of unconsolidated entities (46) 358 (404) 1,669 125 1,544 Less: Non-controlling share of Adjusted EBITDA — — — — — — Adjusted EBITDA (non-GAAP)$154,218 $108,863 $45,355 $434,951 $304,558 $130,393 ___________________________________________________ (1) Includes the following items for the three months ended September 30, 2023 and 2022: (i) depreciation and amortization expense of $43,959 and $34,853, (ii) lease intangible amortization of $3,726 and $3,291 and (iii) amortization for lease incentives of $11,695 and $3,185, respectively. Includes the following items for the nine months ended September 30, 2023 and 2022: (i) depreciation and amortization expense of $123,399 and $115,461, (ii) lease intangible amortization of $11,325 and $10,259 and (iii) amortization for lease incentives of $22,360 and $20,034, respectively. (2) Includes the following items for the three months ended September 30, 2023 and 2022: (i) net income (loss) of $46 and $(358), (ii) depreciation and amortization expense of $367 and $117 and (iii) acquisition and transaction expense of $229 and $0, respectively. Includes the following items for the nine months ended September 30, 2023 and 2022: (i) net loss of $1,669 and $125, (ii) depreciation and amortization expense of $1,202 and $290 and (iii) acquisition and transaction expense of $563 and $0, respectively.
NEW YORK, Oct. 25, 2023 (GLOBE NEWSWIRE) -- FTAI Aviation Ltd. (NASDAQ: FTAI) (the “Company” or “FTAI”) today reported financial results for the third 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 ResultsQ3’23Net Income Attributable to Shareholders$32,973Basic Earnings per Ordinary Share from Continuing Operations$0.33Diluted Earnings per Ordinary Share from Continuing Operations$0.33Adjusted EBITDA(1)$154,218 _______________________________(1) For definitions and reconciliations of non-GAAP measures, please refer to the exhibit to this press release.Third Quarter 2023 Dividends On October 25, 2023, the Company’s Board of Directors (the “Board”) declared a cash dividend on FTAI’s ordinary shares of $0.30 per share for the quarter ended September 30, 2023, payable on November 28, 2023 to the holders of record on November 14, 2023. Additionally, on October 25, 2023, the Board declared cash dividends on FTAI’s 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 September 30, 2023, payable on December 15, 2023 to the holders of record on December 1, 2023. Business Highlights $107.1 million Aerospace Products revenue in Q3 2023 generating $40.6 million of Adjusted EBITDA(1) at a 38% margin.41 modules sold in Q3’23 to 11 unique customers including 2 new customers and 9 repeat customers.Generated $492 million year to date positive free cashflow available for asset acquisition & investment activity.Closed on 23 Engines & 10 Aircraft at attractive prices to help generate future growth in Aviation Leasing Adjusted EBITDA(1).(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 Thursday, October 26, 2023 at 8:00 A.M. Eastern Time. The conference call may be accessed by registering via the following link https://register.vevent.com/register/BIc75f7efaa03d41108edf9a7cf4d4ec2f. 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, October 26, 2023 through 11:30 A.M. on Thursday, November 2, 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 AndreiniInvestor RelationsFTAI Aviation Ltd.(646) 734-9414aandreini@fortress.com Exhibit - Financial StatementsFTAI AVIATION LTD.CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)(Dollar amounts in thousands, except share and per share data) Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Revenues Lease income$45,622 $50,198 $161,141 $129,163 Maintenance revenue 63,925 35,507 141,131 112,171 Asset sales revenue 72,990 85,488 283,167 85,488 Aerospace products revenue 107,085 53,401 260,273 94,211 Other revenue 1,474 5,771 12,447 13,087 Total revenues 291,096 230,365 858,159 434,120 Expenses Cost of sales 116,707 95,948 366,909 120,139 Operating expenses 33,887 27,393 81,218 108,197 General and administrative 3,015 3,354 10,270 11,821 Acquisition and transaction expenses 4,261 2,848 10,195 8,340 Management fees and incentive allocation to affiliate 4,577 4 13,137 4 Depreciation and amortization 43,959 34,853 123,399 115,461 Asset impairment — 4,495 1,220 128,171 Interest expense 40,185 40,171 117,976 132,197 Total expenses 246,591 209,066 724,324 624,330 Other income (expense) Equity in earnings (losses) of unconsolidated entities 46 (358) (1,669) (125)Gain on sale of assets, net — — — 79,933 Loss on extinguishment of debt — (19,861) — (19,861)Other income (expense) 461 (1,038) 877 208 Total other income (expense) 507 (21,257) (792) 60,155 Income (loss) from continuing operations before income taxes 45,012 42 133,043 (130,055)Provision for income taxes 3,705 4,189 7,586 7,357 Net income (loss) from continuing operations 41,307 (4,147) 125,457 (137,412)Net loss from discontinued operations, net of income taxes — (14,782) — (101,416)Net income (loss) 41,307 (18,929) 125,457 (238,828)Less: Net loss attributable to non-controlling interests in consolidated subsidiaries: Continuing operations — — — — Discontinued operations — (2,871) — (18,817)Less: Dividends on preferred shares 8,334 6,791 23,460 20,373 Net income (loss) attributable to shareholders$32,973 $(22,849) $101,997 $(240,384) Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Earnings (loss) per share: Basic Continuing operations$0.33 $(0.11) $1.02 $(1.59)Discontinued operations$— $(0.12) $— $(0.83)Diluted Continuing operations$0.33 $(0.11) $1.02 $(1.59)Discontinued operations$— $(0.12) $— $(0.83)Weighted average shares outstanding: Basic 99,927,594 99,378,771 99,796,736 99,372,016 Diluted 100,482,309 99,378,771 100,269,203 99,372,016 FTAI AVIATION LTD.CONSOLIDATED BALANCE SHEETS (Unaudited)(Dollar amounts in thousands, except share and per share data) (Unaudited) September 30, 2023 December 31, 2022 Assets Cash and cash equivalents$52,879 $33,565 Restricted cash — 19,500 Accounts receivable, net 107,825 99,443 Leasing equipment, net 1,924,198 1,913,553 Property, plant, and equipment, net 13,454 10,014 Investments 39,868 22,037 Intangible assets, net 41,471 41,955 Inventory, net 274,832 163,676 Other assets 179,259 125,834 Total assets$2,633,786 $2,429,577 Liabilities Accounts payable and accrued liabilities$108,579 $86,452 Debt, net 2,279,330 2,175,727 Maintenance deposits 61,497 78,686 Security deposits 39,901 32,842 Other liabilities 49,417 36,468 Total liabilities$2,538,724 $2,410,175 Commitments and contingencies Equity Common shares ($0.01 par value per share; 2,000,000,000 shares authorized; 100,238,075 and 99,716,621 shares issued and outstanding as of September 30, 2023 and December 31, 2022, respectively)$1,002 $997 Preferred shares ($0.01 par value per share; 200,000,000 shares authorized; 15,920,000 and 13,320,000 shares issued and outstanding as of September 30, 2023 and December 31, 2022, respectively) 159 133 Additional paid in capital 293,512 343,350 Accumulated deficit (200,145) (325,602) Shareholders' equity 94,528 18,878 Non-controlling interest in equity of consolidated subsidiaries 534 524 Total equity 95,062 19,402 Total liabilities and equity$2,633,786 $2,429,577 FTAI AVIATION LTD.CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)(Dollar amounts in thousands, unless otherwise noted) Nine Months Ended September 30, 2023 2022 Cash flows from operating activities: Net income (loss)$125,457 $(238,828)Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Equity in losses of unconsolidated entities 1,669 46,727 Gain on sale of assets, net (110,511) (106,427)Security deposits and maintenance claims included in earnings (34,458) (31,558)Loss on extinguishment of debt — 19,861 Equity-based compensation 1,128 2,623 Depreciation and amortization 123,399 155,780 Asset impairment 1,220 128,171 Change in deferred income taxes 5,974 14,923 Change in fair value of non-hedge derivative — (1,567)Change in fair value of guarantees (1,677) — Amortization of lease intangibles and incentives 33,685 30,315 Amortization of deferred financing costs 6,429 17,142 Provision for credit losses 6,583 47,226 Other (995) (693)Change in: Accounts receivable (34,358) (61,892)Inventory (4,845) (13,370)Other assets (3,727) (23,576)Accounts payable and accrued liabilities 321 4,329 Management fees payable to affiliate 824 (2,530)Other liabilities 648 (7,955)Net cash provided by (used in) operating activities 116,766 (21,299) Cash flows from investing activities: Investment in unconsolidated entities (19,500) (7,344)Principal collections on notes receivable 2,438 — Principal collections on finance leases 3,624 2,165 Acquisition of business, net of cash acquired — (3,819)Acquisition of leasing equipment (506,923) (360,642)Acquisition of property, plant and equipment (3,906) (138,750)Acquisition of lease intangibles (10,474) (6,542)Investment in promissory notes (11,500) — Purchase deposits for acquisitions (10,533) (28,621)Proceeds from sale of leasing equipment 366,065 262,096 Proceeds from sale of property, plant and equipment — 5,289 (Refunds) proceeds for deposit on sale of aircraft and engine (683) 7,801 Return of purchase deposits 300 — Net cash used in investing activities$(191,092) $(268,367) Cash flows from financing activities: Proceeds from debt$430,000 $503,980 Repayment of debt (330,000) (984,529)Payment of deferred financing costs (1,805) (18,151)Receipt of security deposits 7,355 2,636 Return of security deposits (2,385) (941)Receipt of maintenance deposits 22,747 37,586 Release of maintenance deposits (275) (878)Capital contributions from non-controlling interests 10 1,187 Settlement of equity-based compensation — (148)Proceeds from issuance of preferred shares, net of underwriter's discount and issuance costs 61,729 — Dividend from spin-off of FTAI Infrastructure, net of cash transferred — 500,562 Cash dividends - ordinary shares (89,776) (98,584)Cash dividends - preferred shares (23,460) (20,373)Net cash provided by (used in) financing activities$74,140 $(77,653) Net decrease in cash and cash equivalents and restricted cash (186) (367,319)Cash and cash equivalents and restricted cash, beginning of period 53,065 440,061 Cash and cash equivalents and restricted cash, end of period$52,879 $72,742 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, (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 income (loss) attributable to shareholders from continuing operations to Adjusted EBITDA for the three and nine months ended September 30, 2023 and 2022: Three Months Ended September 30, Change Nine Months EndedSeptember 30, Change(in thousands) 2023 2022 2023 2022 Net income (loss) attributable to shareholders from continuing operations$32,973 $(10,938) $43,911 $101,997 $(157,785) $259,782 Add: Provision for income taxes 3,705 4,189 (484) 7,586 7,357 229 Add: Equity-based compensation expense 510 — 510 1,128 — 1,128 Add: Acquisition and transaction expenses 4,261 2,848 1,413 10,195 8,340 1,855 Add: Losses on the modification or extinguishment of debt and capital lease obligations — 19,861 (19,861) — 19,861 (19,861)Add: Changes in fair value of non-hedge derivative instruments — — — — — — Add: Asset impairment charges — 4,495 (4,495) 1,220 128,171 (126,951)Add: Incentive allocations 4,274 — 4,274 12,540 — 12,540 Add: Depreciation and amortization expense(1) 59,380 41,329 18,051 157,084 145,754 11,330 Add: Interest expense and dividends on preferred shares 48,519 46,962 1,557 141,436 152,570 (11,134)Add: Pro-rata share of Adjusted EBITDA from unconsolidated entities(2) 642 (241) 883 96 165 (69)Less: Equity in (earnings) losses of unconsolidated entities (46) 358 (404) 1,669 125 1,544 Less: Non-controlling share of Adjusted EBITDA — — — — — — Adjusted EBITDA (non-GAAP)$154,218 $108,863 $45,355 $434,951 $304,558 $130,393 ___________________________________________________ (1) Includes the following items for the three months ended September 30, 2023 and 2022: (i) depreciation and amortization expense of $43,959 and $34,853, (ii) lease intangible amortization of $3,726 and $3,291 and (iii) amortization for lease incentives of $11,695 and $3,185, respectively. Includes the following items for the nine months ended September 30, 2023 and 2022: (i) depreciation and amortization expense of $123,399 and $115,461, (ii) lease intangible amortization of $11,325 and $10,259 and (iii) amortization for lease incentives of $22,360 and $20,034, respectively. (2) Includes the following items for the three months ended September 30, 2023 and 2022: (i) net income (loss) of $46 and $(358), (ii) depreciation and amortization expense of $367 and $117 and (iii) acquisition and transaction expense of $229 and $0, respectively. Includes the following items for the nine months ended September 30, 2023 and 2022: (i) net loss of $1,669 and $125, (ii) depreciation and amortization expense of $1,202 and $290 and (iii) acquisition and transaction expense of $563 and $0, respectively.