FTAI AVIATION(FTAIM) - 2024 Q1 - Quarterly Report

Financial Performance - Total revenues for the three months ended March 31, 2024, increased by $34.0 million to$326.7 million compared to $292.7 million in the same period of 2023 [129]. - Net income attributable to shareholders for the three months ended March 31, 2024, was$31.3 million, an increase of $8.7 million from$22.6 million in 2023 [127]. - Adjusted EBITDA for the same period increased by $36.4 million to$164.1 million compared to $127.7 million in 2023 [140]. - Total revenues for the Aviation Leasing segment decreased by$63.7 million to $135.3 million, primarily due to a$70.1 million decrease in asset sales revenue [143][146]. - Net income attributable to shareholders for the Aviation Leasing segment decreased by $15.2 million to$42.6 million [149]. - Adjusted EBITDA for the Aviation Leasing segment decreased by $2.7 million to$104.8 million [152]. - Aerospace Products segment revenue increased by $103.9 million to$189.1 million, primarily due to increased sales of CFM56-7B, CFM56-5B, and V2500 engines [154][156]. - Net income attributable to shareholders for the Aerospace Products segment increased by $41.4 million to$66.4 million [159]. - Adjusted EBITDA for the Aerospace Products segment increased by $42.9 million to$70.3 million [160]. - Total revenues decreased by $6.2 million to$2.3 million in Q1 2024, primarily due to a decrease in the Offshore Energy business [164]. - Net loss attributable to shareholders increased by $17.5 million to$77.7 million in Q1 2024 [167]. - Adjusted EBITDA decreased by $3.7 million to$(10.98) million, reflecting the changes in revenues and expenses [168]. Asset Management - Total consolidated assets as of March 31, 2024, were $3.2 billion, with total equity of$177.6 million [118]. - As of March 31, 2024, the Aviation Leasing segment managed 380 aviation assets, including 103 commercial aircraft and 277 engines [141]. - The aviation equipment utilization rate was approximately 78% as of March 31, 2024 [142]. - An impairment charge of $120.0 million was recognized due to the inability to recover aircraft and engines from Russia [119]. Expenses and Liabilities - Total expenses for the Aerospace Products segment increased by$61.6 million, mainly due to higher costs of sales and operating expenses [157]. - Total expenses increased by $10.1 million to$72.0 million, driven by higher interest expense, acquisition and transaction expenses, and management fees [165]. - Interest expense increased by $8.4 million, reflecting an increase in average debt outstanding of approximately$417.1 million [134]. - The company had outstanding principal and interest payment obligations of $2.7 billion and$0.7 billion, respectively, as of March 31, 2024 [178]. Cash Flow and Liquidity - Cash used in investing activities increased by $156.9 million to$169.2 million, primarily due to higher acquisitions of leasing equipment [176]. - Cash flows from operating activities decreased by $39.0 million to$(0.3) million, impacted by changes in net working capital and other adjustments [175]. - The company expects to meet future short-term liquidity requirements through cash on hand, unused borrowing capacity, or future financings [181]. - A hypothetical 100-basis point increase in variable interest rates would result in an increase of approximately $1.8 million in interest expense over the next 12 months [189]. Taxation - The provision for income taxes increased by$2.0 million due to a reduction in a deferred tax asset related to a tax law change in Bermuda [151].