FORTRESS TRSP(FTAIN) - 2023 Q2 - Quarterly Report

Financial Performance - For the three months ended June 30, 2023, total revenues increased by 145% to $274.3 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 $46.4 million, compared to$11.4 million in the same period of 2022, a significant increase of 305%[145]. - Total revenues for the six months ended June 30, 2023, increased by $237.9 million to$391.1 million compared to $153.1 million in the same period of 2022[171]. - Net income attributable to shareholders from continuing operations was$28.6 million for the three months ended June 30, 2023, compared to $15.1 million for the same period in 2022, reflecting a$13.5 million increase (approximately 89.5%)[182]. Revenue Breakdown - Lease income for the three months ended June 30, 2023, was $59.5 million, up from$39.6 million in the same period of 2022, representing a 50% increase[145]. - Aerospace products revenue surged by 157% to $68.1 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 $101.5 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]. - Total revenues increased by $162.3 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]. Expenses and Costs - The company reported total expenses of$217.8 million for the three months ended June 30, 2023, compared to $129.3 million in the same period of 2022, an increase of 68$88.4 million, primarily due to higher cost of sales, operating expenses, and management fees[154]. - Cost of sales rose by $89.4 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 $114.0 million compared to$45.4 million in the same period of 2022[173]. Adjusted EBITDA - Adjusted EBITDA for the three months ended June 30, 2023, was $56.6 million, compared to$47.5 million in the same period of 2022, reflecting a 23% increase[145]. - Adjusted EBITDA increased by $2.3 million and$85.0 million for the three and six months ended June 30, 2023, respectively[165]. - Adjusted EBITDA increased by $13.0 million (approximately 76.2$27.3 million (approximately 90.5%) for the three and six months ended June 30, 2023, respectively[187]. Impairment and Charges - The company recognized an impairment charge of $120.0 million related to leasing equipment assets due to the impact of sanctions on Russian airlines[132]. - Asset impairment decreased by$122.5 million primarily due to the write-down in 2022 of aircraft and engines located in Ukraine and Russia[179]. Cash Flow and Investments - Cash flows provided by operating activities increased by $115.8 million, primarily due to an increase in net income of$304.0 million and changes in working capital of $50.9 million[202]. - Cash used for investments was$380.8 million during the six months ended June 30, 2023, compared to $457.9 million in the same period of 2022[201]. - Proceeds from the sale of assets were$273.2 million during the six months ended June 30, 2023, compared to $142.3 million in 2022[201]. Dividends and Shareholder Returns - The spin-off of FTAI Infrastructure resulted in a dividend payment of$730.3 million to the company, which was used to repay outstanding borrowings[136]. - The company declared cash dividends of $122.5 million and$28.7 million on ordinary and preferred shares, respectively, over the last twelve months[208]. Debt and Liquidity - The company had outstanding principal and interest payment obligations of $2.2 billion and$0.6 billion, respectively, as of June 30, 2023[206]. - The company expects to meet future short-term liquidity requirements through cash on hand, unused borrowing capacity, or future financings[209]. Interest Rate Sensitivity - As of June 30, 2023, 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]. - The sensitivity analysis regarding interest rate changes is based on a single point in time and does not account for complex market reactions[216]. - The analysis does not include the impact on interest rate derivatives or other potential factors affecting the business due to interest rate changes[216].