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 First Quarter 2024 Results, Declares Dividend of $0.30 per Ordinary Share By: FTAI Aviation Ltd. via GlobeNewswire April 25, 2024 at 16:15 PM EDT NEW YORK, April 25, 2024 (GLOBE NEWSWIRE) -- FTAI Aviation Ltd. (NASDAQ: FTAI) (the “Company” or “FTAI”) today reported financial results for the first quarter 2024. The Company’s consolidated comparative financial statements and key performance measures are attached as an exhibit to this press release. Financial Overview (in thousands, except per share data)Selected Financial ResultsQ1’24Net Income Attributable to Shareholders$ 31,287Basic Earnings per Ordinary Share$0.31Diluted Earnings per Ordinary Share$0.31Adjusted EBITDA(1)$164,101 _______________________________(1) For definitions and reconciliations of non-GAAP measures, please refer to the exhibit to this press release.First Quarter 2024 Dividends On April 25, 2024, the Company’s Board of Directors (the “Board”) declared a cash dividend on our ordinary shares of $0.30 per share for the quarter ended March 31, 2024, payable on May 21, 2024 to the holders of record on May 10, 2024. Additionally, on April 25, 2024, the Board declared cash dividends on its Fixed-to-Floating Rate Series A Cumulative Perpetual Redeemable Preferred Shares (“Series A Preferred Shares”), Fixed-to-Floating Rate Series B Cumulative Perpetual Redeemable Preferred Shares (“Series B Preferred Shares”), Fixed-Rate Reset Series C Cumulative Perpetual Redeemable Preferred Shares (“Series C Preferred Shares”) and Fixed-Rate Reset Series D Cumulative Perpetual Redeemable Preferred Shares (“Series D Preferred Shares”) of $0.51563, $0.50000, $0.51563 and $0.59375 per share, respectively, for the quarter ended March 31, 2024, payable on June 14, 2024 to the holders of record on June 3, 2024. Business Highlights FTAI Aviation Ltd. and LATAM Airlines Group S.A. enter into a Perpetual Power Program covering over 60 engines.Aerospace Products Adj. EBITDA reached $70 million, a 28.7% quarterly growth versus Q4 2023 and 156.7% growth vs Q1 2023. (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 Friday, April 26, 2024 at 8:00 A.M. Eastern Time. The conference call may be accessed by registering via the following link https://register.vevent.com/register/BId3fa86dd156541f2888a619e6966f685/. 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 Friday, April 26, 2024 through 11:30 A.M. on Friday, May 3, 2024 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 and V2500 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 Statements FTAI AVIATION LTD.CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)(Dollar amounts in thousands, except share and per share data) Three Months Ended March 31, 2024 2023 Revenues Lease income$53,161 $55,978 Maintenance revenue 45,790 35,141 Asset sales revenue 38,607 108,691 Aerospace products revenue 189,057 85,113 Other revenue 79 7,795 Total revenues 326,694 292,718 Expenses Cost of sales 142,804 145,670 Operating expenses 25,317 22,534 General and administrative 3,683 4,067 Acquisition and transaction expenses 6,179 3,262 Management fees and incentive allocation to affiliate 4,895 2,997 Depreciation and amortization 49,920 40,926 Asset impairment 962 1,220 Interest expense 47,707 39,292 Total expenses 281,467 259,968 Other (expense) income Equity in losses of unconsolidated entities (667) (1,335)Other income 634 8 Total other expense (33) (1,327)Income before income taxes 45,194 31,423 Provision for income taxes 5,572 2,026 Net income 39,622 29,397 Less: Dividends on preferred shares 8,335 6,791 Net income attributable to shareholders$31,287 $22,606 Earnings per share: Basic$0.31 $0.23 Diluted$0.31 $0.22 Weighted average shares outstanding: Basic 100,245,905 99,728,245 Diluted 100,960,065 100,974,100 FTAI AVIATION LTD.CONSOLIDATED BALANCE SHEETS (Dollar amounts in thousands, except share and per share data) (Unaudited) March 31, 2024 December 31, 2023Assets Cash and cash equivalents$65,224 $90,756 Restricted cash 150 150 Accounts receivable, net 137,399 115,156 Leasing equipment, net 2,187,716 2,032,413 Property, plant, and equipment, net 44,114 45,175 Investments 22,055 22,722 Intangible assets, net 46,583 50,590 Goodwill 4,630 4,630 Inventory, net 345,470 316,637 Other assets 322,565 286,456 Total assets$3,175,906 $2,964,685 Liabilities Accounts payable and accrued liabilities$139,250 $112,907 Debt, net 2,693,754 2,517,343 Maintenance deposits 62,722 65,387 Security deposits 42,431 41,065 Other liabilities 60,143 52,100 Total liabilities$2,998,300 $2,788,802 Commitments and contingencies Equity Ordinary shares ($0.01 par value per share; 2,000,000,000 shares authorized; 100,245,905 and 100,245,905 shares issued and outstanding as of March 31, 2024 and December 31, 2023, respectively)$1,002 $1,002 Preferred shares ($0.01 par value per share; 200,000,000 shares authorized; 15,920,000 and 15,920,000 shares issued and outstanding as of March 31, 2024 and December 31, 2023, respectively) 159 159 Additional paid in capital 218,074 255,973 Accumulated deficit (42,163) (81,785)Shareholders' equity 177,072 175,349 Non-controlling interest in equity of consolidated subsidiaries 534 534 Total equity 177,606 175,883 Total liabilities and equity$3,175,906 $2,964,685 FTAI AVIATION LTD.CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)(Dollar amounts in thousands, unless otherwise noted) Three Months Ended March 31, 2024 2023 Cash flows from operating activities: Net income$39,622 $29,397 Adjustments to reconcile net income to net cash (used in) provided by operating activities: Equity in losses of unconsolidated entities 667 1,335 Gain on sale of leasing equipment, net (58,061) (31,657)Security deposits and maintenance claims included in earnings (2,437) (9,842)Equity-based compensation 510 108 Depreciation and amortization 49,920 40,926 Asset impairment 962 1,220 Change in deferred income taxes 4,548 1,692 Change in fair value of guarantees (259) (1,769)Amortization of lease intangibles and incentives 9,202 7,844 Amortization of deferred financing costs 2,638 2,017 Provision for credit losses — 475 Other (259) (326)Change in: Accounts receivable (27,945) (14,840)Inventory (6,877) 6,984 Other assets (1,845) (2,013)Accounts payable and accrued liabilities (10,252) 6,088 Management fees payable to affiliate 238 (386)Other liabilities (717) 1,444 Net cash (used in) provided by operating activities (345) 38,697 Cash flows from investing activities: Investment in unconsolidated entities — (19,500)Principal collections on finance leases 786 — Principal collections on notes receivable 1,964 — Acquisition of leasing equipment (276,990) (127,513)Acquisition of property, plant and equipment (1,312) (1,451)Acquisition of lease intangibles 862 (8,640)Purchase deposits for acquisitions (25,535) (9,940)Proceeds from sale of leasing equipment 128,384 153,679 Proceeds for deposit on sale of aircraft and engine 2,098 1,042 Return of purchase deposits 530 — Net cash used in investing activities$(169,213) $(12,323) Three Months Ended March 31, 2024 2023 Cash flows from financing activities: Proceeds from debt$210,000 $145,000 Repayment of debt (35,000) (220,000)Payment of deferred financing costs (292) — Receipt of security deposits 1,856 1,459 Return of security deposits — (65)Receipt of maintenance deposits 8,927 10,142 Release of maintenance deposits (3,056) — Proceeds from issuance of preferred shares, net of underwriter's discount and issuance costs — 61,729 Cash dividends - ordinary shares (30,074) (29,919)Cash dividends - preferred shares (8,335) (6,791)Net cash provided by (used in) financing activities$144,026 $(38,445) Net decrease in cash and cash equivalents and restricted cash (25,532) (12,071)Cash and cash equivalents and restricted cash, beginning of period 90,906 53,065 Cash and cash equivalents and restricted cash, end of period$65,374 $40,994 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 attributable to shareholders to Adjusted EBITDA for the three months ended March 31, 2024 and 2023: Three Months Ended March 31, Change(in thousands) 2024 2023 Net income attributable to shareholders$31,287 $22,606 $8,681 Add: Provision for income taxes 5,572 2,026 3,546 Add: Equity-based compensation expense 510 108 402 Add: Acquisition and transaction expenses 6,179 3,262 2,917 Add: Losses on the modification or extinguishment of debt and capital lease obligations — — — Add: Changes in fair value of non-hedge derivative instruments — — — Add: Asset impairment charges 962 1,220 (258)Add: Incentive allocations 4,308 2,942 1,366 Add: Depreciation and amortization expense (1) 59,122 48,770 10,352 Add: Interest expense and dividends on preferred shares 56,042 46,083 9,959 Add: Pro-rata share of Adjusted EBITDA from unconsolidated entities (2) (548) (696) 148 Less: Equity in losses of unconsolidated entities 667 1,335 (668)Less: Non-controlling share of Adjusted EBITDA — — — Adjusted EBITDA (non-GAAP)$164,101 $127,656 $36,445 ________________________________________________________ (1) Includes the following items for the three months ended March 31, 2024 and 2023: (i) depreciation and amortization expense of $49,920 and $40,926, (ii) lease intangible amortization of $3,976 and $3,983 and (iii) amortization for lease incentives of $5,226 and $3,861, respectively. (2) Includes the following items for the three months ended March 31, 2024 and 2023: (i) net loss of $667 and $1,335, (ii) depreciation and amortization expense of $119 and $400, and (iii) acquisition and transaction expenses of $0 and $239, respectively. For a reconciliation of net income attributable to shareholders to Adjusted EBITDA for the three months ended December 31, 2023, refer to the appendix of the FTAI Aviation Ltd. Earnings Supplement for the period Q4’23. 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 First Quarter 2024 Results, Declares Dividend of $0.30 per Ordinary Share By: FTAI Aviation Ltd. via GlobeNewswire April 25, 2024 at 16:15 PM EDT NEW YORK, April 25, 2024 (GLOBE NEWSWIRE) -- FTAI Aviation Ltd. (NASDAQ: FTAI) (the “Company” or “FTAI”) today reported financial results for the first quarter 2024. The Company’s consolidated comparative financial statements and key performance measures are attached as an exhibit to this press release. Financial Overview (in thousands, except per share data)Selected Financial ResultsQ1’24Net Income Attributable to Shareholders$ 31,287Basic Earnings per Ordinary Share$0.31Diluted Earnings per Ordinary Share$0.31Adjusted EBITDA(1)$164,101 _______________________________(1) For definitions and reconciliations of non-GAAP measures, please refer to the exhibit to this press release.First Quarter 2024 Dividends On April 25, 2024, the Company’s Board of Directors (the “Board”) declared a cash dividend on our ordinary shares of $0.30 per share for the quarter ended March 31, 2024, payable on May 21, 2024 to the holders of record on May 10, 2024. Additionally, on April 25, 2024, the Board declared cash dividends on its Fixed-to-Floating Rate Series A Cumulative Perpetual Redeemable Preferred Shares (“Series A Preferred Shares”), Fixed-to-Floating Rate Series B Cumulative Perpetual Redeemable Preferred Shares (“Series B Preferred Shares”), Fixed-Rate Reset Series C Cumulative Perpetual Redeemable Preferred Shares (“Series C Preferred Shares”) and Fixed-Rate Reset Series D Cumulative Perpetual Redeemable Preferred Shares (“Series D Preferred Shares”) of $0.51563, $0.50000, $0.51563 and $0.59375 per share, respectively, for the quarter ended March 31, 2024, payable on June 14, 2024 to the holders of record on June 3, 2024. Business Highlights FTAI Aviation Ltd. and LATAM Airlines Group S.A. enter into a Perpetual Power Program covering over 60 engines.Aerospace Products Adj. EBITDA reached $70 million, a 28.7% quarterly growth versus Q4 2023 and 156.7% growth vs Q1 2023. (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 Friday, April 26, 2024 at 8:00 A.M. Eastern Time. The conference call may be accessed by registering via the following link https://register.vevent.com/register/BId3fa86dd156541f2888a619e6966f685/. 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 Friday, April 26, 2024 through 11:30 A.M. on Friday, May 3, 2024 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 and V2500 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 Statements FTAI AVIATION LTD.CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)(Dollar amounts in thousands, except share and per share data) Three Months Ended March 31, 2024 2023 Revenues Lease income$53,161 $55,978 Maintenance revenue 45,790 35,141 Asset sales revenue 38,607 108,691 Aerospace products revenue 189,057 85,113 Other revenue 79 7,795 Total revenues 326,694 292,718 Expenses Cost of sales 142,804 145,670 Operating expenses 25,317 22,534 General and administrative 3,683 4,067 Acquisition and transaction expenses 6,179 3,262 Management fees and incentive allocation to affiliate 4,895 2,997 Depreciation and amortization 49,920 40,926 Asset impairment 962 1,220 Interest expense 47,707 39,292 Total expenses 281,467 259,968 Other (expense) income Equity in losses of unconsolidated entities (667) (1,335)Other income 634 8 Total other expense (33) (1,327)Income before income taxes 45,194 31,423 Provision for income taxes 5,572 2,026 Net income 39,622 29,397 Less: Dividends on preferred shares 8,335 6,791 Net income attributable to shareholders$31,287 $22,606 Earnings per share: Basic$0.31 $0.23 Diluted$0.31 $0.22 Weighted average shares outstanding: Basic 100,245,905 99,728,245 Diluted 100,960,065 100,974,100 FTAI AVIATION LTD.CONSOLIDATED BALANCE SHEETS (Dollar amounts in thousands, except share and per share data) (Unaudited) March 31, 2024 December 31, 2023Assets Cash and cash equivalents$65,224 $90,756 Restricted cash 150 150 Accounts receivable, net 137,399 115,156 Leasing equipment, net 2,187,716 2,032,413 Property, plant, and equipment, net 44,114 45,175 Investments 22,055 22,722 Intangible assets, net 46,583 50,590 Goodwill 4,630 4,630 Inventory, net 345,470 316,637 Other assets 322,565 286,456 Total assets$3,175,906 $2,964,685 Liabilities Accounts payable and accrued liabilities$139,250 $112,907 Debt, net 2,693,754 2,517,343 Maintenance deposits 62,722 65,387 Security deposits 42,431 41,065 Other liabilities 60,143 52,100 Total liabilities$2,998,300 $2,788,802 Commitments and contingencies Equity Ordinary shares ($0.01 par value per share; 2,000,000,000 shares authorized; 100,245,905 and 100,245,905 shares issued and outstanding as of March 31, 2024 and December 31, 2023, respectively)$1,002 $1,002 Preferred shares ($0.01 par value per share; 200,000,000 shares authorized; 15,920,000 and 15,920,000 shares issued and outstanding as of March 31, 2024 and December 31, 2023, respectively) 159 159 Additional paid in capital 218,074 255,973 Accumulated deficit (42,163) (81,785)Shareholders' equity 177,072 175,349 Non-controlling interest in equity of consolidated subsidiaries 534 534 Total equity 177,606 175,883 Total liabilities and equity$3,175,906 $2,964,685 FTAI AVIATION LTD.CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)(Dollar amounts in thousands, unless otherwise noted) Three Months Ended March 31, 2024 2023 Cash flows from operating activities: Net income$39,622 $29,397 Adjustments to reconcile net income to net cash (used in) provided by operating activities: Equity in losses of unconsolidated entities 667 1,335 Gain on sale of leasing equipment, net (58,061) (31,657)Security deposits and maintenance claims included in earnings (2,437) (9,842)Equity-based compensation 510 108 Depreciation and amortization 49,920 40,926 Asset impairment 962 1,220 Change in deferred income taxes 4,548 1,692 Change in fair value of guarantees (259) (1,769)Amortization of lease intangibles and incentives 9,202 7,844 Amortization of deferred financing costs 2,638 2,017 Provision for credit losses — 475 Other (259) (326)Change in: Accounts receivable (27,945) (14,840)Inventory (6,877) 6,984 Other assets (1,845) (2,013)Accounts payable and accrued liabilities (10,252) 6,088 Management fees payable to affiliate 238 (386)Other liabilities (717) 1,444 Net cash (used in) provided by operating activities (345) 38,697 Cash flows from investing activities: Investment in unconsolidated entities — (19,500)Principal collections on finance leases 786 — Principal collections on notes receivable 1,964 — Acquisition of leasing equipment (276,990) (127,513)Acquisition of property, plant and equipment (1,312) (1,451)Acquisition of lease intangibles 862 (8,640)Purchase deposits for acquisitions (25,535) (9,940)Proceeds from sale of leasing equipment 128,384 153,679 Proceeds for deposit on sale of aircraft and engine 2,098 1,042 Return of purchase deposits 530 — Net cash used in investing activities$(169,213) $(12,323) Three Months Ended March 31, 2024 2023 Cash flows from financing activities: Proceeds from debt$210,000 $145,000 Repayment of debt (35,000) (220,000)Payment of deferred financing costs (292) — Receipt of security deposits 1,856 1,459 Return of security deposits — (65)Receipt of maintenance deposits 8,927 10,142 Release of maintenance deposits (3,056) — Proceeds from issuance of preferred shares, net of underwriter's discount and issuance costs — 61,729 Cash dividends - ordinary shares (30,074) (29,919)Cash dividends - preferred shares (8,335) (6,791)Net cash provided by (used in) financing activities$144,026 $(38,445) Net decrease in cash and cash equivalents and restricted cash (25,532) (12,071)Cash and cash equivalents and restricted cash, beginning of period 90,906 53,065 Cash and cash equivalents and restricted cash, end of period$65,374 $40,994 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 attributable to shareholders to Adjusted EBITDA for the three months ended March 31, 2024 and 2023: Three Months Ended March 31, Change(in thousands) 2024 2023 Net income attributable to shareholders$31,287 $22,606 $8,681 Add: Provision for income taxes 5,572 2,026 3,546 Add: Equity-based compensation expense 510 108 402 Add: Acquisition and transaction expenses 6,179 3,262 2,917 Add: Losses on the modification or extinguishment of debt and capital lease obligations — — — Add: Changes in fair value of non-hedge derivative instruments — — — Add: Asset impairment charges 962 1,220 (258)Add: Incentive allocations 4,308 2,942 1,366 Add: Depreciation and amortization expense (1) 59,122 48,770 10,352 Add: Interest expense and dividends on preferred shares 56,042 46,083 9,959 Add: Pro-rata share of Adjusted EBITDA from unconsolidated entities (2) (548) (696) 148 Less: Equity in losses of unconsolidated entities 667 1,335 (668)Less: Non-controlling share of Adjusted EBITDA — — — Adjusted EBITDA (non-GAAP)$164,101 $127,656 $36,445 ________________________________________________________ (1) Includes the following items for the three months ended March 31, 2024 and 2023: (i) depreciation and amortization expense of $49,920 and $40,926, (ii) lease intangible amortization of $3,976 and $3,983 and (iii) amortization for lease incentives of $5,226 and $3,861, respectively. (2) Includes the following items for the three months ended March 31, 2024 and 2023: (i) net loss of $667 and $1,335, (ii) depreciation and amortization expense of $119 and $400, and (iii) acquisition and transaction expenses of $0 and $239, respectively. For a reconciliation of net income attributable to shareholders to Adjusted EBITDA for the three months ended December 31, 2023, refer to the appendix of the FTAI Aviation Ltd. Earnings Supplement for the period Q4’23.
NEW YORK, April 25, 2024 (GLOBE NEWSWIRE) -- FTAI Aviation Ltd. (NASDAQ: FTAI) (the “Company” or “FTAI”) today reported financial results for the first quarter 2024. The Company’s consolidated comparative financial statements and key performance measures are attached as an exhibit to this press release. Financial Overview (in thousands, except per share data)Selected Financial ResultsQ1’24Net Income Attributable to Shareholders$ 31,287Basic Earnings per Ordinary Share$0.31Diluted Earnings per Ordinary Share$0.31Adjusted EBITDA(1)$164,101 _______________________________(1) For definitions and reconciliations of non-GAAP measures, please refer to the exhibit to this press release.First Quarter 2024 Dividends On April 25, 2024, the Company’s Board of Directors (the “Board”) declared a cash dividend on our ordinary shares of $0.30 per share for the quarter ended March 31, 2024, payable on May 21, 2024 to the holders of record on May 10, 2024. Additionally, on April 25, 2024, the Board declared cash dividends on its Fixed-to-Floating Rate Series A Cumulative Perpetual Redeemable Preferred Shares (“Series A Preferred Shares”), Fixed-to-Floating Rate Series B Cumulative Perpetual Redeemable Preferred Shares (“Series B Preferred Shares”), Fixed-Rate Reset Series C Cumulative Perpetual Redeemable Preferred Shares (“Series C Preferred Shares”) and Fixed-Rate Reset Series D Cumulative Perpetual Redeemable Preferred Shares (“Series D Preferred Shares”) of $0.51563, $0.50000, $0.51563 and $0.59375 per share, respectively, for the quarter ended March 31, 2024, payable on June 14, 2024 to the holders of record on June 3, 2024. Business Highlights FTAI Aviation Ltd. and LATAM Airlines Group S.A. enter into a Perpetual Power Program covering over 60 engines.Aerospace Products Adj. EBITDA reached $70 million, a 28.7% quarterly growth versus Q4 2023 and 156.7% growth vs Q1 2023. (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 Friday, April 26, 2024 at 8:00 A.M. Eastern Time. The conference call may be accessed by registering via the following link https://register.vevent.com/register/BId3fa86dd156541f2888a619e6966f685/. 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 Friday, April 26, 2024 through 11:30 A.M. on Friday, May 3, 2024 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 and V2500 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 Statements FTAI AVIATION LTD.CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)(Dollar amounts in thousands, except share and per share data) Three Months Ended March 31, 2024 2023 Revenues Lease income$53,161 $55,978 Maintenance revenue 45,790 35,141 Asset sales revenue 38,607 108,691 Aerospace products revenue 189,057 85,113 Other revenue 79 7,795 Total revenues 326,694 292,718 Expenses Cost of sales 142,804 145,670 Operating expenses 25,317 22,534 General and administrative 3,683 4,067 Acquisition and transaction expenses 6,179 3,262 Management fees and incentive allocation to affiliate 4,895 2,997 Depreciation and amortization 49,920 40,926 Asset impairment 962 1,220 Interest expense 47,707 39,292 Total expenses 281,467 259,968 Other (expense) income Equity in losses of unconsolidated entities (667) (1,335)Other income 634 8 Total other expense (33) (1,327)Income before income taxes 45,194 31,423 Provision for income taxes 5,572 2,026 Net income 39,622 29,397 Less: Dividends on preferred shares 8,335 6,791 Net income attributable to shareholders$31,287 $22,606 Earnings per share: Basic$0.31 $0.23 Diluted$0.31 $0.22 Weighted average shares outstanding: Basic 100,245,905 99,728,245 Diluted 100,960,065 100,974,100 FTAI AVIATION LTD.CONSOLIDATED BALANCE SHEETS (Dollar amounts in thousands, except share and per share data) (Unaudited) March 31, 2024 December 31, 2023Assets Cash and cash equivalents$65,224 $90,756 Restricted cash 150 150 Accounts receivable, net 137,399 115,156 Leasing equipment, net 2,187,716 2,032,413 Property, plant, and equipment, net 44,114 45,175 Investments 22,055 22,722 Intangible assets, net 46,583 50,590 Goodwill 4,630 4,630 Inventory, net 345,470 316,637 Other assets 322,565 286,456 Total assets$3,175,906 $2,964,685 Liabilities Accounts payable and accrued liabilities$139,250 $112,907 Debt, net 2,693,754 2,517,343 Maintenance deposits 62,722 65,387 Security deposits 42,431 41,065 Other liabilities 60,143 52,100 Total liabilities$2,998,300 $2,788,802 Commitments and contingencies Equity Ordinary shares ($0.01 par value per share; 2,000,000,000 shares authorized; 100,245,905 and 100,245,905 shares issued and outstanding as of March 31, 2024 and December 31, 2023, respectively)$1,002 $1,002 Preferred shares ($0.01 par value per share; 200,000,000 shares authorized; 15,920,000 and 15,920,000 shares issued and outstanding as of March 31, 2024 and December 31, 2023, respectively) 159 159 Additional paid in capital 218,074 255,973 Accumulated deficit (42,163) (81,785)Shareholders' equity 177,072 175,349 Non-controlling interest in equity of consolidated subsidiaries 534 534 Total equity 177,606 175,883 Total liabilities and equity$3,175,906 $2,964,685 FTAI AVIATION LTD.CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)(Dollar amounts in thousands, unless otherwise noted) Three Months Ended March 31, 2024 2023 Cash flows from operating activities: Net income$39,622 $29,397 Adjustments to reconcile net income to net cash (used in) provided by operating activities: Equity in losses of unconsolidated entities 667 1,335 Gain on sale of leasing equipment, net (58,061) (31,657)Security deposits and maintenance claims included in earnings (2,437) (9,842)Equity-based compensation 510 108 Depreciation and amortization 49,920 40,926 Asset impairment 962 1,220 Change in deferred income taxes 4,548 1,692 Change in fair value of guarantees (259) (1,769)Amortization of lease intangibles and incentives 9,202 7,844 Amortization of deferred financing costs 2,638 2,017 Provision for credit losses — 475 Other (259) (326)Change in: Accounts receivable (27,945) (14,840)Inventory (6,877) 6,984 Other assets (1,845) (2,013)Accounts payable and accrued liabilities (10,252) 6,088 Management fees payable to affiliate 238 (386)Other liabilities (717) 1,444 Net cash (used in) provided by operating activities (345) 38,697 Cash flows from investing activities: Investment in unconsolidated entities — (19,500)Principal collections on finance leases 786 — Principal collections on notes receivable 1,964 — Acquisition of leasing equipment (276,990) (127,513)Acquisition of property, plant and equipment (1,312) (1,451)Acquisition of lease intangibles 862 (8,640)Purchase deposits for acquisitions (25,535) (9,940)Proceeds from sale of leasing equipment 128,384 153,679 Proceeds for deposit on sale of aircraft and engine 2,098 1,042 Return of purchase deposits 530 — Net cash used in investing activities$(169,213) $(12,323) Three Months Ended March 31, 2024 2023 Cash flows from financing activities: Proceeds from debt$210,000 $145,000 Repayment of debt (35,000) (220,000)Payment of deferred financing costs (292) — Receipt of security deposits 1,856 1,459 Return of security deposits — (65)Receipt of maintenance deposits 8,927 10,142 Release of maintenance deposits (3,056) — Proceeds from issuance of preferred shares, net of underwriter's discount and issuance costs — 61,729 Cash dividends - ordinary shares (30,074) (29,919)Cash dividends - preferred shares (8,335) (6,791)Net cash provided by (used in) financing activities$144,026 $(38,445) Net decrease in cash and cash equivalents and restricted cash (25,532) (12,071)Cash and cash equivalents and restricted cash, beginning of period 90,906 53,065 Cash and cash equivalents and restricted cash, end of period$65,374 $40,994 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 attributable to shareholders to Adjusted EBITDA for the three months ended March 31, 2024 and 2023: Three Months Ended March 31, Change(in thousands) 2024 2023 Net income attributable to shareholders$31,287 $22,606 $8,681 Add: Provision for income taxes 5,572 2,026 3,546 Add: Equity-based compensation expense 510 108 402 Add: Acquisition and transaction expenses 6,179 3,262 2,917 Add: Losses on the modification or extinguishment of debt and capital lease obligations — — — Add: Changes in fair value of non-hedge derivative instruments — — — Add: Asset impairment charges 962 1,220 (258)Add: Incentive allocations 4,308 2,942 1,366 Add: Depreciation and amortization expense (1) 59,122 48,770 10,352 Add: Interest expense and dividends on preferred shares 56,042 46,083 9,959 Add: Pro-rata share of Adjusted EBITDA from unconsolidated entities (2) (548) (696) 148 Less: Equity in losses of unconsolidated entities 667 1,335 (668)Less: Non-controlling share of Adjusted EBITDA — — — Adjusted EBITDA (non-GAAP)$164,101 $127,656 $36,445 ________________________________________________________ (1) Includes the following items for the three months ended March 31, 2024 and 2023: (i) depreciation and amortization expense of $49,920 and $40,926, (ii) lease intangible amortization of $3,976 and $3,983 and (iii) amortization for lease incentives of $5,226 and $3,861, respectively. (2) Includes the following items for the three months ended March 31, 2024 and 2023: (i) net loss of $667 and $1,335, (ii) depreciation and amortization expense of $119 and $400, and (iii) acquisition and transaction expenses of $0 and $239, respectively. For a reconciliation of net income attributable to shareholders to Adjusted EBITDA for the three months ended December 31, 2023, refer to the appendix of the FTAI Aviation Ltd. Earnings Supplement for the period Q4’23.