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FTAI AVIATION(FTAIM) - 2023 Q2 - Quarterly Report
FTAIMFTAI AVIATION(FTAIM)2023-07-27 20:16

Financial Performance - For the three months ended June 30, 2023, total revenues increased by 145% to 274.3millioncomparedto274.3 million compared to 112.1 million in the same period of 2022[145]. - Net income attributable to shareholders from continuing operations for the three months ended June 30, 2023, was 46.4million,comparedto46.4 million, compared to 11.4 million in the same period of 2022, reflecting a significant increase of 307%[145]. - Total revenues increased by 162.3millionforthethreemonthsendedJune30,2023,primarilyduetoanincreaseinassetsalesrevenue,aerospaceproductsrevenue,andleaseincome[148].−Netincomefromcontinuingoperationsincreasedby162.3 million for the three months ended June 30, 2023, primarily due to an increase in asset sales revenue, aerospace products revenue, and lease income[148]. - Net income from continuing operations increased by 9.1 million for the three months ended June 30, 2023, and by 217.4millionforthesixmonthsendedJune30,2023[163].−AdjustedEBITDAincreasedby217.4 million for the six months ended June 30, 2023[163]. - Adjusted EBITDA increased by 2.3 million and 85.0millionforthethreeandsixmonthsendedJune30,2023,respectively[165].−Netincomeattributabletoshareholdersfromcontinuingoperationswas85.0 million for the three and six months ended June 30, 2023, respectively[165]. - Net income attributable to shareholders from continuing operations was 28.6 million for the three months ended June 30, 2023, compared to 15.1millionforthesameperiodin2022,reflectinga15.1 million for the same period in 2022, reflecting a 13.5 million increase[182]. Revenue Breakdown - Lease income for the three months ended June 30, 2023, was 59.5million,upfrom59.5 million, up from 39.6 million in the same period of 2022, representing a 50% increase[145]. - Aerospace products revenue surged by 157% to 68.1millionforthethreemonthsendedJune30,2023,comparedto68.1 million for the three months ended June 30, 2023, compared to 26.5 million in the same period of 2022[145]. - Asset sales revenue increased by 101.5million,drivenbyhighersalesofcommercialaircraftandenginesintheAviationLeasingsegment[148].−Aerospaceproductsrevenueroseby101.5 million, driven by higher sales of commercial aircraft and engines in the Aviation Leasing segment[148]. - Aerospace products revenue rose by 41.6 million, mainly from increased sales of CFM56-7B and CFM56-5B engines and related components[149]. - Lease income increased by 19.9million,attributedtoahighernumberofaircraftplacedonleaseandincreasedactivityintheOffshoreEnergybusiness[149].ExpensesandCosts−Totalexpensesincreasedby19.9 million, attributed to a higher number of aircraft placed on lease and increased activity in the Offshore Energy business[149]. Expenses and Costs - Total expenses increased by 88.4 million, primarily due to higher cost of sales, operating expenses, and management fees[154]. - Cost of sales rose by 89.4million,reflectingincreasedassetsalesandaerospaceproductssales[154].−TotalexpensesforthethreemonthsendedJune30,2023,increasedby89.4 million, reflecting increased asset sales and aerospace products sales[154]. - Total expenses for the three months ended June 30, 2023, increased by 68.6 million to 114.0millioncomparedto114.0 million compared to 45.4 million in the same period of 2022[173]. - Operating expenses decreased by 46.9millionprimarilyduetoreductionsinprovisionforcreditlossesandotherexpensesrelatedtosanctionsonRussianairlines[179].−Totalexpensesroseby46.9 million primarily due to reductions in provision for credit losses and other expenses related to sanctions on Russian airlines[179]. - Total expenses rose by 20.4 million (approximately 112.3%) for the three months ended June 30, 2023, primarily due to a 19.8millionincreaseincostofsales[184].AssetandEquityInformation−TotalconsolidatedassetsasofJune30,2023,were19.8 million increase in cost of sales[184]. Asset and Equity Information - Total consolidated assets as of June 30, 2023, were 2.5 billion, with total equity of 91.3million[131].−AsofJune30,2023,theAviationLeasingsegmentownedandmanaged344aviationassets,including97commercialaircraftand247engines[166].−AsofJune30,2023,theinsuredvalueofaircraftandenginesremaininginUkraineandRussiaisapproximately91.3 million[131]. - As of June 30, 2023, the Aviation Leasing segment owned and managed 344 aviation assets, including 97 commercial aircraft and 247 engines[166]. - As of June 30, 2023, the insured value of aircraft and engines remaining in Ukraine and Russia is approximately 243.0 million[133]. Cash Flow and Liquidity - Cash flows provided by operating activities increased by 115.8million,primarilyduetoanetincomeincreaseof115.8 million, primarily due to a net income increase of 304.0 million and changes in working capital of 50.9million[202].−Cashusedforinvestmentswas50.9 million[202]. - Cash used for investments was 380.8 million during the six months ended June 30, 2023, compared to 457.9millioninthesameperiodof2022[201].−Thecompanyexpectstomeetfutureshort−termliquidityrequirementsthroughcashonhand,unusedborrowingcapacity,orfuturefinancings[209].InterestandDebtManagement−AsofJune30,2023,thecompanyhadoutstandingprincipalandinterestpaymentobligationsof457.9 million in the same period of 2022[201]. - The company expects to meet future short-term liquidity requirements through cash on hand, unused borrowing capacity, or future financings[209]. Interest and Debt Management - As of June 30, 2023, the company had outstanding principal and interest payment obligations of 2.2 billion and 0.6billion,respectively[206].−Interestexpensedecreasedby0.6 billion, respectively[206]. - Interest expense decreased by 9.4 million, attributed to a reduction in average outstanding debt of approximately 581.0million[194].−Ahypothetical100−basispointincrease/decreaseinthevariableinterestrateonborrowingswouldresultinanincreaseordecreaseofapproximately581.0 million[194]. - A hypothetical 100-basis point increase/decrease in the variable interest rate on borrowings would result in an increase or decrease of approximately 1.5 million in interest expense over the next 12 months[217]. Corporate Actions - The company completed a spin-off of FTAI Infrastructure on August 1, 2022, which resulted in a dividend of $730.3 million used to repay outstanding borrowings[136]. - The merger with FTAI LLC on November 10, 2022, resulted in FTAI Aviation Ltd. becoming a Cayman Islands exempted company[138].