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
[email protected]

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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