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 Fourth Quarter 2022 Results, Declares Dividend of $0.30 per Ordinary Share By: FTAI Aviation Ltd. via GlobeNewswire February 23, 2023 at 16:15 PM EST NEW YORK, Feb. 23, 2023 (GLOBE NEWSWIRE) -- FTAI Aviation Ltd. (NASDAQ: FTAI) (the “Company” or “FTAI”) today reported financial results for the fourth quarter and full year 2022. 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 ResultsQ4’22Net Income Attributable to Shareholders$20,010 Basic Earnings per Ordinary Share for Continuing Operations$0.20 Diluted Earnings per Ordinary Share for Continuing Operations$0.20 Adjusted EBITDA(1)$123,539 _______________________________(1) For definitions and reconciliations of non-GAAP measures, please refer to the exhibit to this press release. Fourth Quarter 2022 Dividends On February 23, 2023, the Company’s Board of Directors (the “Board”) declared a cash dividend on its ordinary shares of $0.30 per share for the quarter ended December 31, 2022, payable on March 22, 2023 to the holders of record on March 10, 2023. Additionally, on February 23, 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”) and Fixed-Rate Reset Series C Cumulative Perpetual Redeemable Preferred Shares (“Series C Preferred Shares”) of $0.51563, $0.50000 and $0.51563 per share, respectively, for the quarter ended December 31, 2022, payable on March 15, 2023 to the holders of record on March 7, 2023. Business Highlights FTAI purchased $298mm of assets in Q4 comprised of 16 aircraft and 19 engines. In addition, FTAI sold non-core aviation assets, comprised of 8 aircraft/airframes and 18 engines, generating net proceeds of $123mm. “With green time severely depleted and the supply chain unable to service engines on a timely basis, airlines are struggling to find power,” said Joe Adams, FTAI’s CEO. “New aircraft delivery delays are driving airlines to extend the lives of their 737NG and A320ceo fleets, which further increases CFM56 flight hours.” “With airlines experiencing record high CASM (cost per available seat mile), maintenance cost-saving products and practices are in high demand. We believe our suite of propriety products is allowing us to add and retain customers across the entire ecosystem of users, owners, and maintenance providers.” 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, www.ir.ftaiaviation.com, and the Company’s Annual Report on Form 10-K, when available on the Company’s website. Nothing on the Company’s website is included or incorporated by reference herein. Conference Call The Company will host a conference call on Friday, February 24, 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/BI68b0c783afb44b589fdfbb0fe47182a5. 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 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 Friday, February 24, 2023 through 11:30 A.M. on Friday, March 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 JV to manufacture engine PMA, enables it to provide cost savings and flexibility to our airline, lessor, and MRO 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 Statements FTAI AVIATION LTD.CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)(Dollar amounts in thousands, except share and per share data) Three Months Ended December 31 Year Ended December 31, 2022 2021 2022 2021Revenues$274,291 $98,231 $708,411 $335,583 Expenses Cost of sales 128,246 5,731 248,385 14,308 Operating expenses 24,067 25,424 132,264 59,615 General and administrative 2,343 3,831 14,164 13,448 Acquisition and transaction expenses 4,867 5,285 13,207 17,911 Management fees and incentive allocation to affiliate 3,558 (21) 3,562 684 Depreciation and amortization 37,456 41,366 152,917 147,740 Asset impairment 9,048 7,415 137,219 10,463 Interest expense 36,997 39,419 169,194 155,017 Total expenses 246,582 128,450 870,912 419,186 Other income (expense) Equity in losses of unconsolidated entities (244) (353) (369) (1,403)(Loss) gain on sale of assets, net (2,722) 31,548 77,211 49,015 Gain (loss) on extinguishment of debt 2 — (19,859) (3,254)Other (expense) income (1) 227 207 (490)Total other (expense) income (2,965) 31,422 57,190 43,868 Income (loss) from continuing operations before income taxes 24,744 1,203 (105,311) (39,735)(Benefit from) provision for income taxes (2,057) 2,302 5,300 3,126 Net income (loss) from continuing operations 26,801 (1,099) (110,611) (42,861)Net loss from discontinued operations, net of income taxes — (18,680) (101,416) (87,845)Net income (loss) 26,801 (19,779) (212,027) (130,706)Less: Net income (loss) attributable to non-controlling interests in consolidated subsidiaries: Continuing operations — — — — Discontinued operations — (7,523) (18,817) (26,472)Less: Dividends on preferred shares 6,791 6,791 27,164 24,758 Net income (loss) attributable to shareholders$20,010 $(19,047) $(220,374) $(128,992) Earnings (loss) per share: Basic Continuing operations$0.20 $(0.08) $(1.39) $(0.75)Discontinued operations$— $(0.11) $(0.83) $(0.68)Diluted Continuing operations$0.20 $(0.08) $(1.39) $(0.75)Discontinued operations$— $(0.11) $(0.83) $(0.68)Weighted average shares outstanding: Basic 99,566,387 99,224,907 99,421,008 89,922,088 Diluted 100,180,524 99,224,907 99,421,008 89,922,088 FTAI AVIATION LTD.CONSOLIDATED BALANCE SHEETS (Unaudited)(Dollar amounts in thousands, except share and per share data) December 31, 2022 2021Assets Cash and cash equivalents$33,565 $138,206 Restricted cash 19,500 — Accounts receivable, net 99,443 124,924 Leasing equipment, net 1,913,553 1,855,637 Property, plant, and equipment, net 10,014 38,263 Investments 22,037 22,917 Intangible assets, net 41,955 30,962 Inventory, net 163,676 100,307 Other assets 125,834 110,337 Assets of discontinued operations — 2,442,301 Total assets$2,429,577 $4,863,854 Liabilities Accounts payable and accrued liabilities$86,452 $87,035 Debt, net 2,175,727 2,501,587 Maintenance deposits 78,686 106,836 Security deposits 32,842 40,149 Other liabilities 36,468 23,892 Liabilities of discontinued operations — 980,255 Total liabilities$2,410,175 $3,739,754 Commitments and contingencies Equity Ordinary shares ($0.01 par value per share; 2,000,000,000 shares authorized; 99,716,621 and 99,180,385 shares issued and outstanding as of December 31, 2022 and 2021, respectively)$997 $992 Preferred shares ($0.01 par value per share; 200,000,000 shares authorized; 13,320,000 and 13,320,000 shares issued and outstanding as of December 31, 2022 and 2021, respectively) 133 133 Additional paid in capital 343,350 1,411,940 Accumulated deficit (325,602) (132,392)Accumulated other comprehensive loss — (156,381)Shareholders' equity 18,878 1,124,292 Non-controlling interest in equity of consolidated subsidiaries 524 (192)Total equity$19,402 $1,124,100 Total liabilities and equity$2,429,577 $4,863,854 FTAI AVIATION LTD.CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)(Dollar amounts in thousands, unless otherwise noted) Year Ended December 31, 2022 2021Cash flows from operating activities: Net loss$(212,027) $(130,706)Adjustments to reconcile net loss to net cash (used in) provided by operating activities: Equity in losses of unconsolidated entities 46,971 12,734 Gain on sale of assets, net (141,677) (49,031)Security deposits and maintenance claims included in earnings (41,845) (39,067)Loss on extinguishment of debt 19,859 3,254 Equity-based compensation 2,623 4,038 Depreciation and amortization 193,236 201,756 Asset impairment 137,219 10,463 Change in deferred income taxes 2,161 (2,057)Change in fair value of non-hedge derivatives (1,567) (2,220)Amortization of lease intangibles and incentives 37,135 27,978 Amortization of deferred financing costs 19,018 21,723 Provision for credit losses 47,975 12,953 Other (1,010) (440)Change in: Accounts receivable (65,969) (88,872)Other assets (23,037) (30,789)Inventory (23,267) — Accounts payable and accrued liabilities (19,599) 25,079 Management fees payable to affiliate 804 1,042 Other liabilities 2,340 118 Net cash used in operating activities (20,657) (22,044) Cash flows from investing activities: Investment in unconsolidated entities (7,344) (54,655)Principal collections on finance leases 2,227 7,387 Acquisition of business, net of cash acquired (3,819) (627,090)Acquisition of leasing equipment (638,329) (572,624)Acquisition of property, plant and equipment (144,196) (157,332)Acquisition of lease intangibles (31,127) (24,017)Investment in convertible promissory notes — (10,000)Purchase deposit for acquisitions (6,671) (13,658)Proceeds from sale of leasing equipment 408,937 158,927 Proceeds from sale of property, plant and equipment 5,289 4,494 Proceeds for deposit on sale of aircraft and engine 3,780 600 Return of purchase deposits — 1,010 Net cash used in investing activities$(411,253) $(1,286,958) Year Ended December 31, 2022 2021Cash flows from financing activities: Proceeds from debt$813,980 $2,894,127 Repayment of debt (1,144,529) (1,553,231)Payment of deferred financing costs (18,607) (52,739)Receipt of security deposits 3,882 8,770 Return of security deposits (2,141) (1,201)Receipt of maintenance deposits 47,846 31,507 Release of maintenance deposits (1,471) (20,724)Proceeds from issuance of ordinary shares, net of underwriter's discount — 323,124 Proceeds from issuance of preferred shares, net of underwriter's discount and issuance costs — 101,200 Capital contributions from non-controlling interests 1,187 — Dividend from spin-off of FTAI Infrastructure, net of cash transferred 500,562 — Settlement of equity-based compensation (148) (421)Cash dividends - ordinary shares (128,483) (118,009)Cash dividends - preferred shares (27,164) (24,758)Net cash provided by financing activities 44,914 1,587,645 Net (decrease) increase in cash and cash equivalents and restricted cash (386,996) 278,643 Cash and cash equivalents and restricted cash, beginning of period 440,061 161,418 Cash and cash equivalents and restricted cash, end of period$53,065 $440,061 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 loss attributable to shareholders to Adjusted EBITDA for the three and twelve months ended December 31, 2022 and 2021: Three Months Ended December 31 Year Ended December 31,(in thousands)2022 2021 2022 2021Net income (loss) attributable to shareholders from continuing operations$20,010 $(7,890) $(137,775) $(67,619)Add: Provision for (benefit from) income taxes (2,057) 2,302 5,300 3,126 Add: Equity-based compensation expense — — — — Add: Acquisition and transaction expenses 4,867 5,285 13,207 17,911 Add: Losses on the modification or extinguishment of debt and capital lease obligations (2) — 19,859 3,254 Add: Changes in fair value of non-hedge derivative instruments — — — — Add: Asset impairment charges 9,048 7,415 137,219 10,463 Add: Incentive allocations 3,489 — 3,489 — Add: Depreciation & amortization expense(1) 44,277 47,995 190,031 175,718 Add: Interest expense and dividends on preferred shares 43,788 46,210 196,358 179,775 Add: Pro-rata share of Adjusted EBITDA from unconsolidated entities(2) (125) (297) 40 (1,203)Less: Equity in losses of unconsolidated entities 244 353 369 1,403 Less: Non-controlling share of Adjusted EBITDA — — — — Adjusted EBITDA (non-GAAP)$123,539 $101,373 $428,097 $322,828 __________________________________________________ (1)Includes the following items for the three months ended December 31, 2022 and 2021: (i) depreciation and amortization expense of $37,456 and $41,366, (ii) lease intangible amortization of $3,654 and $1,777 and (iii) amortization for lease incentives of $3,167 and $4,852, respectively. Includes the following items for the years ended December 31, 2022 and 2021: (i) depreciation and amortization expense of $152,917 and $147,740, (ii) lease intangible amortization of $13,913 and $4,993 and (iii) amortization for lease incentives of $23,201 and $22,985, respectively.(2)Includes the following items for the three months ended December 31, 2022 and 2021: (i) net loss of $(244) and $(353), (ii) depreciation and amortization expense of $119 and $56, respectively. Includes the following items for the years ended December 31, 2022 and 2021: (i) net loss of $(369) and $(1,403), (ii) depreciation and amortization expense of $409 and $200, respectively. Data & News supplied by www.cloudquote.io Stock quotes supplied by Barchart Quotes delayed at least 20 minutes. By accessing this page, you agree to the following Privacy Policy and Terms and Conditions.
FTAI Aviation Ltd. Reports Fourth Quarter 2022 Results, Declares Dividend of $0.30 per Ordinary Share By: FTAI Aviation Ltd. via GlobeNewswire February 23, 2023 at 16:15 PM EST NEW YORK, Feb. 23, 2023 (GLOBE NEWSWIRE) -- FTAI Aviation Ltd. (NASDAQ: FTAI) (the “Company” or “FTAI”) today reported financial results for the fourth quarter and full year 2022. 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 ResultsQ4’22Net Income Attributable to Shareholders$20,010 Basic Earnings per Ordinary Share for Continuing Operations$0.20 Diluted Earnings per Ordinary Share for Continuing Operations$0.20 Adjusted EBITDA(1)$123,539 _______________________________(1) For definitions and reconciliations of non-GAAP measures, please refer to the exhibit to this press release. Fourth Quarter 2022 Dividends On February 23, 2023, the Company’s Board of Directors (the “Board”) declared a cash dividend on its ordinary shares of $0.30 per share for the quarter ended December 31, 2022, payable on March 22, 2023 to the holders of record on March 10, 2023. Additionally, on February 23, 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”) and Fixed-Rate Reset Series C Cumulative Perpetual Redeemable Preferred Shares (“Series C Preferred Shares”) of $0.51563, $0.50000 and $0.51563 per share, respectively, for the quarter ended December 31, 2022, payable on March 15, 2023 to the holders of record on March 7, 2023. Business Highlights FTAI purchased $298mm of assets in Q4 comprised of 16 aircraft and 19 engines. In addition, FTAI sold non-core aviation assets, comprised of 8 aircraft/airframes and 18 engines, generating net proceeds of $123mm. “With green time severely depleted and the supply chain unable to service engines on a timely basis, airlines are struggling to find power,” said Joe Adams, FTAI’s CEO. “New aircraft delivery delays are driving airlines to extend the lives of their 737NG and A320ceo fleets, which further increases CFM56 flight hours.” “With airlines experiencing record high CASM (cost per available seat mile), maintenance cost-saving products and practices are in high demand. We believe our suite of propriety products is allowing us to add and retain customers across the entire ecosystem of users, owners, and maintenance providers.” 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, www.ir.ftaiaviation.com, and the Company’s Annual Report on Form 10-K, when available on the Company’s website. Nothing on the Company’s website is included or incorporated by reference herein. Conference Call The Company will host a conference call on Friday, February 24, 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/BI68b0c783afb44b589fdfbb0fe47182a5. 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 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 Friday, February 24, 2023 through 11:30 A.M. on Friday, March 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 JV to manufacture engine PMA, enables it to provide cost savings and flexibility to our airline, lessor, and MRO 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 Statements FTAI AVIATION LTD.CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)(Dollar amounts in thousands, except share and per share data) Three Months Ended December 31 Year Ended December 31, 2022 2021 2022 2021Revenues$274,291 $98,231 $708,411 $335,583 Expenses Cost of sales 128,246 5,731 248,385 14,308 Operating expenses 24,067 25,424 132,264 59,615 General and administrative 2,343 3,831 14,164 13,448 Acquisition and transaction expenses 4,867 5,285 13,207 17,911 Management fees and incentive allocation to affiliate 3,558 (21) 3,562 684 Depreciation and amortization 37,456 41,366 152,917 147,740 Asset impairment 9,048 7,415 137,219 10,463 Interest expense 36,997 39,419 169,194 155,017 Total expenses 246,582 128,450 870,912 419,186 Other income (expense) Equity in losses of unconsolidated entities (244) (353) (369) (1,403)(Loss) gain on sale of assets, net (2,722) 31,548 77,211 49,015 Gain (loss) on extinguishment of debt 2 — (19,859) (3,254)Other (expense) income (1) 227 207 (490)Total other (expense) income (2,965) 31,422 57,190 43,868 Income (loss) from continuing operations before income taxes 24,744 1,203 (105,311) (39,735)(Benefit from) provision for income taxes (2,057) 2,302 5,300 3,126 Net income (loss) from continuing operations 26,801 (1,099) (110,611) (42,861)Net loss from discontinued operations, net of income taxes — (18,680) (101,416) (87,845)Net income (loss) 26,801 (19,779) (212,027) (130,706)Less: Net income (loss) attributable to non-controlling interests in consolidated subsidiaries: Continuing operations — — — — Discontinued operations — (7,523) (18,817) (26,472)Less: Dividends on preferred shares 6,791 6,791 27,164 24,758 Net income (loss) attributable to shareholders$20,010 $(19,047) $(220,374) $(128,992) Earnings (loss) per share: Basic Continuing operations$0.20 $(0.08) $(1.39) $(0.75)Discontinued operations$— $(0.11) $(0.83) $(0.68)Diluted Continuing operations$0.20 $(0.08) $(1.39) $(0.75)Discontinued operations$— $(0.11) $(0.83) $(0.68)Weighted average shares outstanding: Basic 99,566,387 99,224,907 99,421,008 89,922,088 Diluted 100,180,524 99,224,907 99,421,008 89,922,088 FTAI AVIATION LTD.CONSOLIDATED BALANCE SHEETS (Unaudited)(Dollar amounts in thousands, except share and per share data) December 31, 2022 2021Assets Cash and cash equivalents$33,565 $138,206 Restricted cash 19,500 — Accounts receivable, net 99,443 124,924 Leasing equipment, net 1,913,553 1,855,637 Property, plant, and equipment, net 10,014 38,263 Investments 22,037 22,917 Intangible assets, net 41,955 30,962 Inventory, net 163,676 100,307 Other assets 125,834 110,337 Assets of discontinued operations — 2,442,301 Total assets$2,429,577 $4,863,854 Liabilities Accounts payable and accrued liabilities$86,452 $87,035 Debt, net 2,175,727 2,501,587 Maintenance deposits 78,686 106,836 Security deposits 32,842 40,149 Other liabilities 36,468 23,892 Liabilities of discontinued operations — 980,255 Total liabilities$2,410,175 $3,739,754 Commitments and contingencies Equity Ordinary shares ($0.01 par value per share; 2,000,000,000 shares authorized; 99,716,621 and 99,180,385 shares issued and outstanding as of December 31, 2022 and 2021, respectively)$997 $992 Preferred shares ($0.01 par value per share; 200,000,000 shares authorized; 13,320,000 and 13,320,000 shares issued and outstanding as of December 31, 2022 and 2021, respectively) 133 133 Additional paid in capital 343,350 1,411,940 Accumulated deficit (325,602) (132,392)Accumulated other comprehensive loss — (156,381)Shareholders' equity 18,878 1,124,292 Non-controlling interest in equity of consolidated subsidiaries 524 (192)Total equity$19,402 $1,124,100 Total liabilities and equity$2,429,577 $4,863,854 FTAI AVIATION LTD.CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)(Dollar amounts in thousands, unless otherwise noted) Year Ended December 31, 2022 2021Cash flows from operating activities: Net loss$(212,027) $(130,706)Adjustments to reconcile net loss to net cash (used in) provided by operating activities: Equity in losses of unconsolidated entities 46,971 12,734 Gain on sale of assets, net (141,677) (49,031)Security deposits and maintenance claims included in earnings (41,845) (39,067)Loss on extinguishment of debt 19,859 3,254 Equity-based compensation 2,623 4,038 Depreciation and amortization 193,236 201,756 Asset impairment 137,219 10,463 Change in deferred income taxes 2,161 (2,057)Change in fair value of non-hedge derivatives (1,567) (2,220)Amortization of lease intangibles and incentives 37,135 27,978 Amortization of deferred financing costs 19,018 21,723 Provision for credit losses 47,975 12,953 Other (1,010) (440)Change in: Accounts receivable (65,969) (88,872)Other assets (23,037) (30,789)Inventory (23,267) — Accounts payable and accrued liabilities (19,599) 25,079 Management fees payable to affiliate 804 1,042 Other liabilities 2,340 118 Net cash used in operating activities (20,657) (22,044) Cash flows from investing activities: Investment in unconsolidated entities (7,344) (54,655)Principal collections on finance leases 2,227 7,387 Acquisition of business, net of cash acquired (3,819) (627,090)Acquisition of leasing equipment (638,329) (572,624)Acquisition of property, plant and equipment (144,196) (157,332)Acquisition of lease intangibles (31,127) (24,017)Investment in convertible promissory notes — (10,000)Purchase deposit for acquisitions (6,671) (13,658)Proceeds from sale of leasing equipment 408,937 158,927 Proceeds from sale of property, plant and equipment 5,289 4,494 Proceeds for deposit on sale of aircraft and engine 3,780 600 Return of purchase deposits — 1,010 Net cash used in investing activities$(411,253) $(1,286,958) Year Ended December 31, 2022 2021Cash flows from financing activities: Proceeds from debt$813,980 $2,894,127 Repayment of debt (1,144,529) (1,553,231)Payment of deferred financing costs (18,607) (52,739)Receipt of security deposits 3,882 8,770 Return of security deposits (2,141) (1,201)Receipt of maintenance deposits 47,846 31,507 Release of maintenance deposits (1,471) (20,724)Proceeds from issuance of ordinary shares, net of underwriter's discount — 323,124 Proceeds from issuance of preferred shares, net of underwriter's discount and issuance costs — 101,200 Capital contributions from non-controlling interests 1,187 — Dividend from spin-off of FTAI Infrastructure, net of cash transferred 500,562 — Settlement of equity-based compensation (148) (421)Cash dividends - ordinary shares (128,483) (118,009)Cash dividends - preferred shares (27,164) (24,758)Net cash provided by financing activities 44,914 1,587,645 Net (decrease) increase in cash and cash equivalents and restricted cash (386,996) 278,643 Cash and cash equivalents and restricted cash, beginning of period 440,061 161,418 Cash and cash equivalents and restricted cash, end of period$53,065 $440,061 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 loss attributable to shareholders to Adjusted EBITDA for the three and twelve months ended December 31, 2022 and 2021: Three Months Ended December 31 Year Ended December 31,(in thousands)2022 2021 2022 2021Net income (loss) attributable to shareholders from continuing operations$20,010 $(7,890) $(137,775) $(67,619)Add: Provision for (benefit from) income taxes (2,057) 2,302 5,300 3,126 Add: Equity-based compensation expense — — — — Add: Acquisition and transaction expenses 4,867 5,285 13,207 17,911 Add: Losses on the modification or extinguishment of debt and capital lease obligations (2) — 19,859 3,254 Add: Changes in fair value of non-hedge derivative instruments — — — — Add: Asset impairment charges 9,048 7,415 137,219 10,463 Add: Incentive allocations 3,489 — 3,489 — Add: Depreciation & amortization expense(1) 44,277 47,995 190,031 175,718 Add: Interest expense and dividends on preferred shares 43,788 46,210 196,358 179,775 Add: Pro-rata share of Adjusted EBITDA from unconsolidated entities(2) (125) (297) 40 (1,203)Less: Equity in losses of unconsolidated entities 244 353 369 1,403 Less: Non-controlling share of Adjusted EBITDA — — — — Adjusted EBITDA (non-GAAP)$123,539 $101,373 $428,097 $322,828 __________________________________________________ (1)Includes the following items for the three months ended December 31, 2022 and 2021: (i) depreciation and amortization expense of $37,456 and $41,366, (ii) lease intangible amortization of $3,654 and $1,777 and (iii) amortization for lease incentives of $3,167 and $4,852, respectively. Includes the following items for the years ended December 31, 2022 and 2021: (i) depreciation and amortization expense of $152,917 and $147,740, (ii) lease intangible amortization of $13,913 and $4,993 and (iii) amortization for lease incentives of $23,201 and $22,985, respectively.(2)Includes the following items for the three months ended December 31, 2022 and 2021: (i) net loss of $(244) and $(353), (ii) depreciation and amortization expense of $119 and $56, respectively. Includes the following items for the years ended December 31, 2022 and 2021: (i) net loss of $(369) and $(1,403), (ii) depreciation and amortization expense of $409 and $200, respectively.
NEW YORK, Feb. 23, 2023 (GLOBE NEWSWIRE) -- FTAI Aviation Ltd. (NASDAQ: FTAI) (the “Company” or “FTAI”) today reported financial results for the fourth quarter and full year 2022. 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 ResultsQ4’22Net Income Attributable to Shareholders$20,010 Basic Earnings per Ordinary Share for Continuing Operations$0.20 Diluted Earnings per Ordinary Share for Continuing Operations$0.20 Adjusted EBITDA(1)$123,539 _______________________________(1) For definitions and reconciliations of non-GAAP measures, please refer to the exhibit to this press release. Fourth Quarter 2022 Dividends On February 23, 2023, the Company’s Board of Directors (the “Board”) declared a cash dividend on its ordinary shares of $0.30 per share for the quarter ended December 31, 2022, payable on March 22, 2023 to the holders of record on March 10, 2023. Additionally, on February 23, 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”) and Fixed-Rate Reset Series C Cumulative Perpetual Redeemable Preferred Shares (“Series C Preferred Shares”) of $0.51563, $0.50000 and $0.51563 per share, respectively, for the quarter ended December 31, 2022, payable on March 15, 2023 to the holders of record on March 7, 2023. Business Highlights FTAI purchased $298mm of assets in Q4 comprised of 16 aircraft and 19 engines. In addition, FTAI sold non-core aviation assets, comprised of 8 aircraft/airframes and 18 engines, generating net proceeds of $123mm. “With green time severely depleted and the supply chain unable to service engines on a timely basis, airlines are struggling to find power,” said Joe Adams, FTAI’s CEO. “New aircraft delivery delays are driving airlines to extend the lives of their 737NG and A320ceo fleets, which further increases CFM56 flight hours.” “With airlines experiencing record high CASM (cost per available seat mile), maintenance cost-saving products and practices are in high demand. We believe our suite of propriety products is allowing us to add and retain customers across the entire ecosystem of users, owners, and maintenance providers.” 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, www.ir.ftaiaviation.com, and the Company’s Annual Report on Form 10-K, when available on the Company’s website. Nothing on the Company’s website is included or incorporated by reference herein. Conference Call The Company will host a conference call on Friday, February 24, 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/BI68b0c783afb44b589fdfbb0fe47182a5. 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 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 Friday, February 24, 2023 through 11:30 A.M. on Friday, March 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 JV to manufacture engine PMA, enables it to provide cost savings and flexibility to our airline, lessor, and MRO 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 Statements FTAI AVIATION LTD.CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)(Dollar amounts in thousands, except share and per share data) Three Months Ended December 31 Year Ended December 31, 2022 2021 2022 2021Revenues$274,291 $98,231 $708,411 $335,583 Expenses Cost of sales 128,246 5,731 248,385 14,308 Operating expenses 24,067 25,424 132,264 59,615 General and administrative 2,343 3,831 14,164 13,448 Acquisition and transaction expenses 4,867 5,285 13,207 17,911 Management fees and incentive allocation to affiliate 3,558 (21) 3,562 684 Depreciation and amortization 37,456 41,366 152,917 147,740 Asset impairment 9,048 7,415 137,219 10,463 Interest expense 36,997 39,419 169,194 155,017 Total expenses 246,582 128,450 870,912 419,186 Other income (expense) Equity in losses of unconsolidated entities (244) (353) (369) (1,403)(Loss) gain on sale of assets, net (2,722) 31,548 77,211 49,015 Gain (loss) on extinguishment of debt 2 — (19,859) (3,254)Other (expense) income (1) 227 207 (490)Total other (expense) income (2,965) 31,422 57,190 43,868 Income (loss) from continuing operations before income taxes 24,744 1,203 (105,311) (39,735)(Benefit from) provision for income taxes (2,057) 2,302 5,300 3,126 Net income (loss) from continuing operations 26,801 (1,099) (110,611) (42,861)Net loss from discontinued operations, net of income taxes — (18,680) (101,416) (87,845)Net income (loss) 26,801 (19,779) (212,027) (130,706)Less: Net income (loss) attributable to non-controlling interests in consolidated subsidiaries: Continuing operations — — — — Discontinued operations — (7,523) (18,817) (26,472)Less: Dividends on preferred shares 6,791 6,791 27,164 24,758 Net income (loss) attributable to shareholders$20,010 $(19,047) $(220,374) $(128,992) Earnings (loss) per share: Basic Continuing operations$0.20 $(0.08) $(1.39) $(0.75)Discontinued operations$— $(0.11) $(0.83) $(0.68)Diluted Continuing operations$0.20 $(0.08) $(1.39) $(0.75)Discontinued operations$— $(0.11) $(0.83) $(0.68)Weighted average shares outstanding: Basic 99,566,387 99,224,907 99,421,008 89,922,088 Diluted 100,180,524 99,224,907 99,421,008 89,922,088 FTAI AVIATION LTD.CONSOLIDATED BALANCE SHEETS (Unaudited)(Dollar amounts in thousands, except share and per share data) December 31, 2022 2021Assets Cash and cash equivalents$33,565 $138,206 Restricted cash 19,500 — Accounts receivable, net 99,443 124,924 Leasing equipment, net 1,913,553 1,855,637 Property, plant, and equipment, net 10,014 38,263 Investments 22,037 22,917 Intangible assets, net 41,955 30,962 Inventory, net 163,676 100,307 Other assets 125,834 110,337 Assets of discontinued operations — 2,442,301 Total assets$2,429,577 $4,863,854 Liabilities Accounts payable and accrued liabilities$86,452 $87,035 Debt, net 2,175,727 2,501,587 Maintenance deposits 78,686 106,836 Security deposits 32,842 40,149 Other liabilities 36,468 23,892 Liabilities of discontinued operations — 980,255 Total liabilities$2,410,175 $3,739,754 Commitments and contingencies Equity Ordinary shares ($0.01 par value per share; 2,000,000,000 shares authorized; 99,716,621 and 99,180,385 shares issued and outstanding as of December 31, 2022 and 2021, respectively)$997 $992 Preferred shares ($0.01 par value per share; 200,000,000 shares authorized; 13,320,000 and 13,320,000 shares issued and outstanding as of December 31, 2022 and 2021, respectively) 133 133 Additional paid in capital 343,350 1,411,940 Accumulated deficit (325,602) (132,392)Accumulated other comprehensive loss — (156,381)Shareholders' equity 18,878 1,124,292 Non-controlling interest in equity of consolidated subsidiaries 524 (192)Total equity$19,402 $1,124,100 Total liabilities and equity$2,429,577 $4,863,854 FTAI AVIATION LTD.CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)(Dollar amounts in thousands, unless otherwise noted) Year Ended December 31, 2022 2021Cash flows from operating activities: Net loss$(212,027) $(130,706)Adjustments to reconcile net loss to net cash (used in) provided by operating activities: Equity in losses of unconsolidated entities 46,971 12,734 Gain on sale of assets, net (141,677) (49,031)Security deposits and maintenance claims included in earnings (41,845) (39,067)Loss on extinguishment of debt 19,859 3,254 Equity-based compensation 2,623 4,038 Depreciation and amortization 193,236 201,756 Asset impairment 137,219 10,463 Change in deferred income taxes 2,161 (2,057)Change in fair value of non-hedge derivatives (1,567) (2,220)Amortization of lease intangibles and incentives 37,135 27,978 Amortization of deferred financing costs 19,018 21,723 Provision for credit losses 47,975 12,953 Other (1,010) (440)Change in: Accounts receivable (65,969) (88,872)Other assets (23,037) (30,789)Inventory (23,267) — Accounts payable and accrued liabilities (19,599) 25,079 Management fees payable to affiliate 804 1,042 Other liabilities 2,340 118 Net cash used in operating activities (20,657) (22,044) Cash flows from investing activities: Investment in unconsolidated entities (7,344) (54,655)Principal collections on finance leases 2,227 7,387 Acquisition of business, net of cash acquired (3,819) (627,090)Acquisition of leasing equipment (638,329) (572,624)Acquisition of property, plant and equipment (144,196) (157,332)Acquisition of lease intangibles (31,127) (24,017)Investment in convertible promissory notes — (10,000)Purchase deposit for acquisitions (6,671) (13,658)Proceeds from sale of leasing equipment 408,937 158,927 Proceeds from sale of property, plant and equipment 5,289 4,494 Proceeds for deposit on sale of aircraft and engine 3,780 600 Return of purchase deposits — 1,010 Net cash used in investing activities$(411,253) $(1,286,958) Year Ended December 31, 2022 2021Cash flows from financing activities: Proceeds from debt$813,980 $2,894,127 Repayment of debt (1,144,529) (1,553,231)Payment of deferred financing costs (18,607) (52,739)Receipt of security deposits 3,882 8,770 Return of security deposits (2,141) (1,201)Receipt of maintenance deposits 47,846 31,507 Release of maintenance deposits (1,471) (20,724)Proceeds from issuance of ordinary shares, net of underwriter's discount — 323,124 Proceeds from issuance of preferred shares, net of underwriter's discount and issuance costs — 101,200 Capital contributions from non-controlling interests 1,187 — Dividend from spin-off of FTAI Infrastructure, net of cash transferred 500,562 — Settlement of equity-based compensation (148) (421)Cash dividends - ordinary shares (128,483) (118,009)Cash dividends - preferred shares (27,164) (24,758)Net cash provided by financing activities 44,914 1,587,645 Net (decrease) increase in cash and cash equivalents and restricted cash (386,996) 278,643 Cash and cash equivalents and restricted cash, beginning of period 440,061 161,418 Cash and cash equivalents and restricted cash, end of period$53,065 $440,061 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 loss attributable to shareholders to Adjusted EBITDA for the three and twelve months ended December 31, 2022 and 2021: Three Months Ended December 31 Year Ended December 31,(in thousands)2022 2021 2022 2021Net income (loss) attributable to shareholders from continuing operations$20,010 $(7,890) $(137,775) $(67,619)Add: Provision for (benefit from) income taxes (2,057) 2,302 5,300 3,126 Add: Equity-based compensation expense — — — — Add: Acquisition and transaction expenses 4,867 5,285 13,207 17,911 Add: Losses on the modification or extinguishment of debt and capital lease obligations (2) — 19,859 3,254 Add: Changes in fair value of non-hedge derivative instruments — — — — Add: Asset impairment charges 9,048 7,415 137,219 10,463 Add: Incentive allocations 3,489 — 3,489 — Add: Depreciation & amortization expense(1) 44,277 47,995 190,031 175,718 Add: Interest expense and dividends on preferred shares 43,788 46,210 196,358 179,775 Add: Pro-rata share of Adjusted EBITDA from unconsolidated entities(2) (125) (297) 40 (1,203)Less: Equity in losses of unconsolidated entities 244 353 369 1,403 Less: Non-controlling share of Adjusted EBITDA — — — — Adjusted EBITDA (non-GAAP)$123,539 $101,373 $428,097 $322,828 __________________________________________________ (1)Includes the following items for the three months ended December 31, 2022 and 2021: (i) depreciation and amortization expense of $37,456 and $41,366, (ii) lease intangible amortization of $3,654 and $1,777 and (iii) amortization for lease incentives of $3,167 and $4,852, respectively. Includes the following items for the years ended December 31, 2022 and 2021: (i) depreciation and amortization expense of $152,917 and $147,740, (ii) lease intangible amortization of $13,913 and $4,993 and (iii) amortization for lease incentives of $23,201 and $22,985, respectively.(2)Includes the following items for the three months ended December 31, 2022 and 2021: (i) net loss of $(244) and $(353), (ii) depreciation and amortization expense of $119 and $56, respectively. Includes the following items for the years ended December 31, 2022 and 2021: (i) net loss of $(369) and $(1,403), (ii) depreciation and amortization expense of $409 and $200, respectively.