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FTAI Aviation Ltd. Reports Second Quarter 2024 Results, Declares Dividend of $0.30 per Ordinary Share

NEW YORK, July 23, 2024 (GLOBE NEWSWIRE) -- FTAI Aviation Ltd. (NASDAQ: FTAI) (the “Company” or “FTAI”) today reported financial results for the second 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 Results Q2’24
Net Loss Attributable to Shareholders $(228,205)
Basic Earnings per Ordinary Share $(2.26)
Diluted Earnings per Ordinary Share $(2.26)
Adjusted EBITDA(1) $213,904 
_______________________________
(1) For definitions and reconciliations of non-GAAP measures, please refer to the exhibit to this press release.

    

Second Quarter 2024 Dividends

On July 23, 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 June 30, 2024, payable on August 20, 2024 to the holders of record on August 12, 2024.

Additionally, on July 23, 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 June 30, 2024, payable on September 16, 2024 to the holders of record on September 6, 2024.

Business Highlights

  • Aerospace Products reaches new Adjusted EBITDA high of $91.2mm for Q2. (1)
  • FTAI has inducted 20 V2500 engines year to date and expects to induct an additional 30 by year end.
  • FTAI’s Module Factory™ now has over 50 active customers worldwide.

(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 Wednesday, July 24, 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/BIdca77333acf741569740cfda9a5d8b1a/. 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 Wednesday, July 24, 2024 through 11:30 A.M. on Wednesday, July 31, 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, including, but not limited to, expectations for inducting an additional 30 V2500 engines by year end. 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 Andreini
Investor Relations
FTAI Aviation Ltd.
(646) 734-9414
aandreini@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 June 30, Six Months Ended June 30,
   2024   2023   2024   2023 
Revenues        
Lease income $70,754  $59,541  $123,915  $115,519 
Maintenance revenue  51,187   42,065   96,977   77,206 
Asset sales revenue  72,433   76,836   111,040   185,527 
Aerospace products revenue  245,200   92,725   434,257   177,838 
Other revenue  4,020   3,178   4,099   10,973 
Total revenues  443,594   274,345   770,288   567,063 
         
Expenses        
Cost of sales  205,857   104,532   348,661   250,202 
Operating expenses  29,099   24,797   54,416   47,331 
General and administrative  2,969   3,188   6,652   7,255 
Acquisition and transaction expenses  8,019   2,672   14,198   5,934 
Management fees and incentive allocation to affiliate  3,554   5,563   8,449   8,560 
Internalization fee to affiliate  300,000      300,000    
Depreciation and amortization  56,691   38,514   106,611   79,440 
Asset impairment        962   1,220 
Interest expense  55,196   38,499   102,903   77,791 
Total expenses  661,385   217,765   942,852   477,733 
         
Other (expense) income        
Equity in losses of unconsolidated entities  (694)  (380)  (1,361)  (1,715)
Loss on extinguishment of debt  (13,920)     (13,920)   
Other (expense) income  (498)  408   136   416 
Total other (expense) income  (15,112)  28   (15,145)  (1,299)
(Loss) income before income taxes  (232,903)  56,608   (187,709)  88,031 
(Benefit from) provision for income taxes  (13,033)  1,855   (7,461)  3,881 
Net (loss) income  (219,870)  54,753   (180,248)  84,150 
Less: Dividends on preferred shares  8,335   8,335   16,670   15,126 
Net (loss) income attributable to shareholders $(228,205) $46,418  $(196,918) $69,024 
         
(Loss) Earnings per share:        
Basic $(2.26) $0.47  $(1.96) $0.69 
Diluted $(2.26) $0.46  $(1.96) $0.69 
         
Weighted average shares outstanding:        
Basic  100,958,524   99,732,179   100,602,214   99,730,223 
Diluted  100,958,524   100,462,277   100,602,214   100,314,508 


FTAI AVIATION LTD.
CONSOLIDATED BALANCE SHEETS
(Dollar amounts in thousands, except share and per share data)
 
  (Unaudited)  
  June 30, 2024 December 31, 2023
Assets    
Cash and cash equivalents $169,485  $90,756 
Restricted cash  150   150 
Accounts receivable, net  154,051   115,156 
Leasing equipment, net  2,202,866   2,032,413 
Property, plant, and equipment, net  33,078   45,175 
Investments  19,886   22,722 
Intangible assets, net  42,138   50,590 
Goodwill  4,630   4,630 
Inventory, net  373,282   316,637 
Other assets  449,686   286,456 
Total assets $3,449,252  $2,964,685 
     
Liabilities    
Accounts payable and accrued liabilities $128,708  $112,907 
Debt, net  3,077,596   2,517,343 
Maintenance deposits  75,939   65,387 
Security deposits  41,536   41,065 
Other liabilities  55,906   52,100 
Total liabilities $3,379,685  $2,788,802 
     
Commitments and contingencies    
     
Equity    
Ordinary shares ($0.01 par value per share; 2,000,000,000 shares authorized; 102,211,402 and 100,245,905 shares issued and outstanding as of June 30, 2024 and December 31, 2023, respectively) $1,022  $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 June 30, 2024 and December 31, 2023, respectively)  159   159 
Additional paid in capital  330,419   255,973 
Accumulated deficit  (262,033)  (81,785)
Shareholders' equity  69,567   175,349 
Non-controlling interest in equity of consolidated subsidiaries     534 
Total equity  69,567   175,883 
Total liabilities and equity $3,449,252  $2,964,685 
         

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, internalization fee to affiliate, (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 (loss) income attributable to shareholders to Adjusted EBITDA for the three and six months ended June 30, 2024 and 2023:

  Three Months Ended June 30, Change
 Six Months Ended
June 30,
 Change
(in thousands)  2024   2023    2024   2023  
Net (loss) income attributable to shareholders $(228,205) $46,418  $(274,623) $(196,918) $69,024  $(265,942)
Add: (Benefit from) provision for income taxes  (13,033)  1,855   (14,888)  (7,461)  3,881   (11,342)
Add: Equity-based compensation expense  638   510   128   1,148   618   530 
Add: Acquisition and transaction expenses  8,019   2,672   5,347   14,198   5,934   8,264 
Add: Losses on the modification or extinguishment of debt and capital lease obligations  13,920      13,920   13,920      13,920 
Add: Changes in fair value of non-hedge derivative instruments                  
Add: Asset impairment charges           962   1,220   (258)
Add: Incentive allocations  3,148   5,324   (2,176)  7,456   8,266   (810)
Add: Depreciation and amortization expense (1)  65,809   48,934   16,875   124,931   97,704   27,227 
Add: Interest expense and dividends on preferred shares  63,531   46,834   16,697   119,573   92,917   26,656 
Add: Internalization fee to affiliate  300,000      300,000   300,000      300,000 
Add: Pro-rata share of Adjusted EBITDA from unconsolidated entities (2)  (617)  150   (767)  (1,165)  (546)  (619)
Less: Equity in losses of unconsolidated entities  694   380   314   1,361   1,715   (354)
Less: Non-controlling share of Adjusted EBITDA                  
Adjusted EBITDA (non-GAAP) $213,904  $153,077  $60,827  $378,005  $280,733  $97,272 
_______________________________
(1) Includes the following items for the three months ended June 30, 2024 and 2023: (i) depreciation and amortization expense of $56,691 and $38,514, (ii) lease intangible amortization of $3,786 and $3,616 and (iii) amortization for lease incentives of $5,332 and $6,804, respectively. Includes the following items for the six months ended June 30, 2024 and 2023: (i) depreciation and amortization expense of $106,611 and $79,440, (ii) lease intangible amortization of $7,762 and $7,762 and (iii) amortization for lease incentives of $10,558 and $10,665, respectively.
(2) Includes the following items for the three months ended June 30, 2024 and 2023: (i) net loss of $694 and $380, (ii) depreciation and amortization expense of $77 and $435, and (iii) acquisition and transaction expenses of $0 and $95, respectively. Includes the following items for the six months ended June 30, 2024 and 2023: (i) net loss of $1,361 and $1,715, (ii) depreciation and amortization expense of $196 and $835, and (iii) acquisition and transaction expenses of $0 and $334, respectively.

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