Financial Performance - For the year ended December 31, 2023, total revenues increased to $1,170.9 million, a 65.2% increase from $708.4 million in 2022[202]. - Net income attributable to shareholders for 2023 was $212.0 million, compared to a net loss of $220.4 million in 2022[202]. - Net income attributable to shareholders from continuing operations for 2023 was $212.0 million, a significant increase of $349.8 million compared to a loss of $137.8 million in 2022[203]. - The aviation leasing segment reported a net income attributable to shareholders of $291.6 million for 2023, a significant increase from $56.9 million in 2022[237]. - Net income attributable to shareholders surged to $180.18 million in 2023, up from $70.66 million in 2022, marking a $109.52 million increase[254]. Revenue Breakdown - Lease income for 2023 was $207.9 million, up 16.0% from $179.3 million in 2022[202]. - Maintenance revenue rose to $191.3 million, a 28.5% increase from $148.8 million in 2022[202]. - Aerospace products revenue surged to $455.0 million, a 153.8% increase from $178.5 million in 2022[202]. - Total revenues for the Aviation Leasing segment increased by $178.7 million to $681.6 million in 2023, driven by increases in asset sales revenue, maintenance revenue, and lease income[239]. - Asset sales revenue rose by $119.6 million primarily due to increased sales of commercial aircraft and engines[241]. Expenses and Costs - Total expenses increased by $122.0 million, mainly due to higher cost of sales, management fees, and depreciation and amortization[210]. - Cost of sales rose by $253.7 million, attributed to increased asset sales and Aerospace Product sales[210]. - Total expenses rose by $181.2 million to $303.12 million in 2023, primarily due to increased costs of sales and operating expenses[256]. - Operating expenses rose by $48.5 million, largely due to increased provisions for credit losses and other operational costs[253]. Adjusted EBITDA - The company reported Adjusted EBITDA as a key performance measure, reflecting operational performance[200]. - Adjusted EBITDA for 2023 rose to $597.3 million, reflecting an increase of $169.2 million from $428.1 million in 2022[217]. - Adjusted EBITDA increased by $87.2 million to $467.4 million, reflecting improved operational performance[244]. - Adjusted EBITDA increased by $85.7 million to $160.01 million in 2023, compared to $74.35 million in 2022[259]. Tax and Impairment - The benefit from income taxes increased by $65.1 million, largely due to the establishment of a deferred tax asset of $72.2 million in Bermuda[214]. - The company established a deferred tax asset of $46.6 million in Bermuda, contributing to a $38.7 million increase in the benefit from income taxes[243]. - The company recognized an impairment charge of $120.0 million for leasing equipment assets related to the impact of Russia's invasion of Ukraine[189]. Cash Flow and Financing - Net cash used in operating activities decreased by $149.6 million, primarily due to a reduction in net loss by $455.8 million[290]. - Net cash provided by financing activities increased by $237.3 million, driven by a decrease in debt repayment and an increase in proceeds from debt and preferred shares[292]. - Cash flows from operating activities, plus principal collections on finance leases, totaled $163.0 million in 2023, up from $29.4 million in 2022[293]. - The company issued $500 million in Senior Notes due 2030, using part of the proceeds to repay $250 million of outstanding borrowings[280]. Assets and Utilization - Total consolidated assets as of December 31, 2023, were $3.0 billion, with total equity of $175.9 million[188]. - As of December 31, 2023, the Aviation Leasing segment owned and managed 363 aviation assets, including 96 commercial aircraft and 267 engines[234]. - As of December 31, 2023, the aviation equipment utilization rate was approximately 77%, with a weighted average remaining lease term of 47 months for aircraft and 16 months for engines[235]. Dividends and Liquidity - The company declared cash dividends of $119.8 million on ordinary shares and $31.8 million on preferred shares during 2023[299]. - The company expects to meet future short-term liquidity requirements through cash on hand, unused borrowing capacity, and net cash provided by current operations[300]. Risk Management - The company is exposed to interest rate risk, particularly related to term loan arrangements, and may manage this exposure through interest rate derivatives[315][317]. - A hypothetical 100-basis point increase or decrease in the variable interest rate on borrowings would not have affected interest expense over the next 12 months as of December 31, 2023[319].
FORTRESS TRSP(FTAIN) - 2023 Q4 - Annual Report