2022 Highlights
- Full year 2022 revenue of $408.5 million, up 20.0%
year-over-year.
- Full year 2022 GAAP net income of $43.9 million, or 10.7% of
sales, up 21.4% year-over-year.
- Full Year 2022 Adjusted Net Income of $63.6 million, or 15.5%
of sales.
- Adjusted EBITDA of $87.4 million or 21.4% of sales for the full
year 2022.
- Flight equipment sales included 12 aircraft, two airframes, and
15 engines during 2022.
- Up to 12 additional aircraft to be converted to freighters by
third parties, of which 9 are scheduled to become available for
sale or lease in 2023.
- Provides 2023 guidance: expects revenue in the range of $460 -
$490 million and adjusted EBITDA in the range of $70 - $80 million,
which excludes any potential AerAware sales1.
AerSale Corporation (Nasdaq: ASLE) (the “Company”) today
reported results for the fourth quarter and full year ended
December 31, 2022.
The Company’s revenue for the fourth quarter of 2022 was $95.1
million compared to $116.8 million in the fourth quarter of 2021.
Revenue for the fourth quarter of 2022 included $51.4 million of
flight equipment sales compared to $73.1 million of flight
equipment sales in the prior year period. Flight equipment sales in
the fourth quarter of 2022 consisted of six engines and three
aircraft, which included one AerSale converted passenger to
freighter (P2F) aircraft versus three aircraft and four engines in
the fourth quarter of 2021. The decline in sales was largely a
result of the pacing of flight equipment sales, which tend to occur
at irregular intervals throughout the year. As a reminder to
investors and as evidenced by the fluctuations that saw record
first and second quarters in 2022, the Company’s revenues will
fluctuate from quarter-to-quarter and year-to-year based on flight
equipment sales and therefore, progress should be monitored based
on asset purchases and related sales.
Asset Management Solutions (“Asset Management") revenue
decreased to $67.9 million during the fourth quarter of 2022
compared to $93.6 million in the fourth quarter of 2021, primarily
due to the pacing of flight equipment sales as mentioned above.
Excluding flight equipment sales, Asset Management revenue would
have been $16.5 million in the fourth quarter of 2022 compared to
$20.5 million in the prior year period. Lower Asset Management
revenue was partially offset by improved results from TechOps,
fueled by better performance from landing gear and aerostructure
maintenance, repair and overhaul (MRO), as well as increased
revenue from AerSale’s Goodyear on-airport MRO facility due to
additional capacity dedicated to customer aircraft.
AerSale continues to benefit from an ongoing recovery in the
commercial aerospace end markets which generated higher revenue
from MRO activities at AerSale’s Goodyear facility, which was
partially offset by lower revenue at the Company’s Roswell facility
due to fewer customer aircraft in storage programs compared to
prior periods. As previously mentioned, the Company sub-contracted
third-party providers at the beginning of the fourth quarter of
2022 to perform 12 757 P2F conversions initially planned to be
completed at AerSale’s Goodyear facility, enabling the Company to
increase capacity for third-party services.
Fourth quarter 2022 GAAP net income was $9.2 million versus
$11.2 million in the prior year period, mainly due to lower flight
equipment sales, which tend to have better margins.
AerSale recognized mark-to-market adjustment income of $1.4
million related to private warrant liability, $4.5 million of
stock-based compensation expenses within payroll expenses, $0.6
million in secondary offering costs, $0.8 million in facility
relocation costs, and a $1.7M gain on an aircraft insurance claim
during the fourth quarter of 2022. In the fourth quarter of 2021,
AerSale recognized an unrealized loss on investment of $5.4
million, a mark-to-market adjustment expense to warrant liability
of $0.2 million, $3.8 million of non-cash stock-based compensation
expense within payroll expenses, and $1.6 million in non-cash
inventory write-down recorded in the cost of products line.
Excluding these non-cash and unusual items adjusted for tax,
Adjusted Net Income was $12.3 million in the fourth quarter of 2022
versus Adjusted Net Income of $22.3 million in the fourth quarter
of 2021.
Diluted earnings per share was $0.17 for the fourth quarter of
2022 and $0.21 for the fourth quarter of 2021. Adjusted for the
non-cash and unusual items noted above, adjusted diluted earnings
per share was $0.23 for the fourth quarter of 2022 compared to
$0.41 for the fourth quarter of 2021. Please see the non-GAAP
reconciliation table at the end of this press release for
additional details on adjusted Net Income and adjusted diluted
earnings per share.
Fourth quarter 2022 adjusted EBITDA was $17.7 million, compared
to $28.6 million in the prior-year period. The drop in adjusted
EBITDA and margins reflected lower flight equipment sales, which
generally have higher margins. Please see the non-GAAP
reconciliation table at the end of this press release for
additional details on these amounts.
Cash used in operating activities was $0.1 million, primarily
due to the application of $18.0 million in customer deposits
associated with the sale of a 747 freighter aircraft that closed
during 2022, for which the sale proceeds are reflected under
investment activities. AerSale continued its investment in the 757
P2F conversion program, which is largely the driver of the $13.3
million increase in advance vendor payments, as well as investing
an additional $37.6 million to increase inventory available for
sale. AerSale ended the year with $147.2 million of cash and has an
undrawn $150 million credit facility.
Nicolas Finazzo, AerSale’s Chief Executive Officer, commented,
“We delivered another year of excellent performance driven by
strong execution and the broad success of our 757 P2F freighter
conversion program. While our results were unevenly distributed
throughout the year, our full-year results came in within our
expected range and marked a record result for the Company. As we
look forward to 2023, we anticipate the 757 P2F program to again be
a strong contributor, and we will continue to benefit from an
improving backdrop in commercial aerospace.”
Finazzo added, “We are also in the final stages of obtaining a
Supplemental Type Certificate (“STC”) from the FAA for our Enhanced
Flight Vision System “AerAware” with FAA certification flight
testing already in progress. This marks a significant milestone in
a multi-year period of product development, and we expect this
technology to become a meaningful contributor to our long-term
performance. AerAware offers substantial safety and efficiency
benefits to airline operators with an attractive ROI, and we
believe these attributes will lead this innovative enhanced flight
vision technology to be broadly adopted over the long-term.”
Update on AerAware Depending on the complexity of the
modification, the FAA requires that it observe flight testing of
new products incorporated into FAA type certificated aircraft. In
the case of AerAware, the FAA has scheduled five different sets of
demonstration flight tests that began in February and will continue
into April. AerSale has successfully completed the first two sets
of flight tests, with the third and fourth sets scheduled in March,
and the fifth set expected in April. All flight tests are subject
to changes due to FAA staffing and weather. Upon successful
completion of flight testing, it is typical to receive an STC
within 30 days.
Fourth Quarter 2022 Results of Operations AerSale
reported revenue of $95.1 million in the fourth quarter of 2022,
which included $51.4 million of flight equipment sales consisting
of six engines and three aircraft, which included one 757 P2F
converted aircraft. The Company’s revenue for the fourth quarter of
2021 was $116.8 million and included $73.1 million of flight
equipment sales consisting of three aircraft and four engines.
Excluding flight equipment sales, revenue would have been $43.7
million in the fourth quarter of 2022 and 2021. The delivery of one
757 P2F AerSale converted aircraft, which was initially forecasted
to close during the third quarter of 2022, was delivered at the
beginning of the fourth quarter. Again, flight equipment sales may
significantly vary quarter-to-quarter, and AerSale believes
full-year analysis, rather than year-over-year quarterly
comparisons is a more appropriate measurement of the Company’s
progress.
Asset Management revenue fell 27.4% to $67.9 million in the
fourth quarter of 2022 on account of lower flight equipment sales.
Leasing revenue for the fourth quarter of 2022 decreased as a
result of expected reductions in the number of aircraft in the
leasing portfolio. Fourth quarter 2022 Used Serviceable Material
(“USM”) parts sales were similar to the year ago quarter levels.
Asset Management revenue would have been $16.5 million in the
fourth quarter of 2022 compared to $20.5 million in the prior year
period excluding flight equipment sales.
Technical Operations (“TechOps”) revenue was $27.1 million in
the fourth quarter of 2022, an improvement of 17.2% compared to the
fourth quarter of 2021, which was largely due to better performance
from our landing gear facility and the AerSale’s Goodyear MRO.
Revenue growth from the Goodyear facility was offset by lower
revenue at the Company’s Roswell facility due to fewer customer
aircraft in storage as compared to prior periods.
Gross margin was 36.0% in the fourth quarter of 2022 compared to
37.8% in the year ago period on account of the sales mix across
both the operating segments of AerSale.
Selling, general and administrative expenses were $25.1 million
in the fourth quarter of 2022 compared to $24.4 million in the
fourth quarter of 2021. Payroll expenses were higher and AerSale
incurred $4.5 million of stock-based compensation expenses in the
fourth quarter of 2022, compared to $3.8 million in the fourth
quarter of 2021.
Income from operations was $9.1 million in the fourth quarter of
2022 and $19.8 million in the fourth quarter of 2021.
Income tax expense was $4.1 million in the fourth quarter of
2022 and $2.9 million in the fourth quarter of 2021.
GAAP net income was $9.2 million in the fourth quarter of 2022
compared to $11.2 million in fourth quarter of 2021.
Adjusted for stock-based compensation, inventory write-down,
mark-to-market adjustment to the private warrant liability, gain an
aircraft insurance claim, secondary offering and facility
relocation costs, Adjusted Net Income was $12.3 million in the
fourth quarter of 2022 versus $22.3 million in the fourth quarter
of 2021. Diluted earnings per share was $0.17 for the fourth
quarter of 2022 and $0.21 in the fourth quarter of 2021. Adjusted
for the above-mentioned non-cash and unusual items, adjusted
diluted earnings per share was $0.23 for the fourth quarter of 2022
and $0.41 for the fourth quarter of 2022.
Adjusted EBITDA in the fourth quarter of 2022 was $17.7 million,
compared to $28.6 million in the fourth quarter of 2021. The
decline in adjusted EBITDA and related margins was mainly on
account of lower flight equipment sales, which generally produce
higher margins. AerSale did not receive Payroll Support Program
proceeds during the fourth quarter of 2021 or 2022.
Full Year 2022 Results of Operations For the full year
2022, AerSale reported consolidated revenue of $408.5 million, an
increase of 20.0% from $340.4 million for full year 2021. Full year
2022 included flight equipment sales of $222.5 million consisting
of 12 aircraft, two airframes, and 15 engines. Flight equipment
sales were $156.9 million in the full year 2021 consisting of nine
aircraft, two airframes, and 10 engines.
AerSale has contracted for 12 additional 757 P2F conversions
from multiple providers, resulting in the 757 P2F program being
extended into 2024.
Asset Management revenue was $277.6 million in full year 2022,
up 19.7% from $232.0 million in full year 2021 largely due to
higher flight equipment sales, partially offset by lower leasing
volume. Asset Management parts business benefitted from growing
demand for airframe and engine parts as airlines expand their USM
parts consumption. AerSale expects USM sales to improve as the
availability of feedstock improves.
Revenue from TechOps was 20.8% higher at $130.9 million in 2022
and was led by the Engineered Solutions’ sale of the AerAware
dedicated 737NG aircraft, which was partially offset by lower heavy
MRO activities due to reduced storage related maintenance activity
in Roswell. The Company expects to benefit from a pickup in MRO
volume due to the ongoing recommissioning of commercial aircraft
and greater demand for USM parts consumption for overhaul
activity.
Gross margin was 37.1% in 2022 compared to 35.1% in 2021, which
was primarily driven by higher flight equipment sales.
Selling, general and administrative expenses were $96.3 million
in 2022 compared to $77.5 million in 2021. While payroll expenses
increased in 2022, selling, general and administrative expenses in
2021 reflects the benefit of $14.8 million in Payroll Support
Program proceeds. There was no such corresponding benefit in 2022.
The Company incurred $16.5 million of non-cash stock-based
compensation within payroll expenses in 2022, compared to $12.7
million in 2021.
Income from operations was $55.0 million in 2022, up from $56.7
million in 2021.
Income tax expense was $14.0 million in 2022 compared to $11.7
million in 2021.
GAAP net income was $43.9 million in 2022 compared to $36.1
million in 2021. Adjusted for stock-based compensation, inventory
write-down, impairment of flight equipment, mark-to-market
adjustment to the private warrant liability, and secondary offering
and facility relocation costs as well as the gain on an aircraft
insurance claim, Adjusted Net Income was $63.6 million in 2022 and
in 2021.
Adjusted EBITDA for 2022 was $87.4 million, or 21.4% of sales,
compared to adjusted EBITDA of $89.3 million, or 26.1% of sales, in
2021. Adjusted EBITDA benefitted from $14.8 million in Payroll
Support Program proceeds during 2021, while there was no such
corresponding benefit in 2022.
Martin Garmendia, AerSale’s Chief Financial Officer, said:
“Aside from the variability in the timing of flight equipment
sales, the business has continued to gain strong traction and the
underlying momentum remains on a robust growth trajectory. With a
strong balance sheet and liquidity, we are well positioned to
capitalize on increasing flight equipment feedstock availability,
as well as other internal and external opportunities in order to
continue generating high returns going forward.”
2023 Guidance AerSale expects revenue of $460 to $490
million and adjusted EBITDA of $70 - $80 million in 2023. This
guidance reflects the Company’s expected whole asset sales during
the year and anticipated volume in its ongoing operations. Guidance
for 2023 does not reflect potential sales of AerAware as the
product is in its final stages of approval and will be updated once
the STC is issued and the Company can assess initial order and
delivery schedules.
Conference Call Information The Company will host a
conference call today, March 6, 2023 at 4:30 pm Eastern Time to
discuss these results. A live webcast will also be available at
https://ir.aersale.com/news-events/events. Participants may access
the call at 1-877-407-3982, international callers may use
1-201-493-6780, and request to join the AerSale Corporation
earnings call.
A telephonic replay will be available shortly after the
conclusion of the call and until March 20, 2023. Participants may
access the replay at 1-844-512-2921, international callers may use
1-412-317-6671, and enter access code 13735594. An archived replay
of the call will also be available on the Investors portion of the
AerSale website at https://ir.aersale.com/.
Non-GAAP Financial Measures This press release includes
non-GAAP financial measures, including adjusted EBITDA, adjusted
Net Income, and adjusted diluted Earnings per Share. AerSale
defines adjusted EBITDA as net income (loss) after giving effect to
interest expense, depreciation and amortization, income tax expense
(benefit), and other non-recurring or unusual items. Adjusted Net
Income is defined as net income (loss) after giving effect to
mark-to-market adjustments relating to our Private Warrants,
stock-based compensation expense and other non-recurring or unusual
items. Adjusted diluted earnings per share also exclude these
material non-recurring or unusual items.
AerSale believes these non-GAAP measures of financial results
provide useful information to management and investors regarding
certain financial and business trends relating to AerSale’s
financial condition and results of operations. AerSale’s management
uses certain of these non-GAAP measures to compare AerSale’s
performance to that of prior periods for trend analyses and for
budgeting and planning purposes. These non- GAAP measures should
not be construed as an alternative to net income or net income
margin as an indicator of operating performance or as an
alternative to cash flow provided by operating activities as a
measure of liquidity (each as determined in accordance with
GAAP).
You should review AerSale’s audited financial statements, and
not rely on any single financial measure to evaluate AerSale’s
business. Other companies may calculate adjusted EBITDA, adjusted
Net Income, or Adjusted diluted earnings per share differently, and
therefore AerSale’s adjusted EBITDA, adjusted Net Income, or
adjusted diluted earnings per share measures may not be directly
comparable to similarly titled measures of other companies.
Reconciliations of Net Income, the Company’s closest GAAP
measure, to adjusted EBITDA, adjusted Net Income, and adjusted
diluted earnings per share, are outlined in the tables below
following the Company’s condensed consolidated financial
statements.
Fourth Quarter and Full Year 2022 Financial Results
AERSALE CORPORATION
CONSOLIDATED BALANCE SHEET
(in thousands, except per share
data)
December 31,
December 31,
2022
2021
Current assets:
Cash and cash equivalents
$
147,188
$
130,188
Accounts receivable, net of allowance for
doubtful accounts of $1,074 and $1,692 as of December 31, 2022 and
December 31, 2021
28,273
29,350
Inventory:
Aircraft, airframes, engines, and parts,
net
117,488
81,759
Advance vendor payments
27,585
14,287
Deposits, prepaid expenses, and other
current assets
13,022
15,945
Total current assets
333,556
271,529
Fixed assets:
Aircraft and engines held for lease,
net
31,288
73,364
Property and equipment, net
12,638
7,350
Inventory:
Aircraft, airframes, engines, and parts,
net
66,042
77,534
Operating lease right-of-use assets
31,624
-
Deferred income taxes
11,287
10,013
Deferred financing costs, net
544
999
Deferred customer incentives and other
assets, net
628
598
Goodwill
19,860
19,860
Other intangible assets, net
24,112
26,238
Total assets
$
531,579
$
487,485
Current liabilities:
Accounts payable
$
21,131
$
19,967
Accrued expenses
8,843
8,424
Income tax payable
-
3,443
Lessee and customer purchase deposits
17,085
33,212
Current operating lease liabilities
4,426
-
Deferred revenue
1,355
2,860
Total current liabilities
52,840
67,906
Long-term lease deposits
152
2,053
Long-term operating lease liabilities
28,283
-
Maintenance deposit payments and other
liabilities
668
3,403
Deferred income taxes, net
-
1,113
Warrant liability
4,656
4,131
Total liabilities
86,599
78,606
Commitments and contingencies
Stockholders’ equity:
Common stock, $0.0001 par value.
Authorized 200,000,000 shares; issued and outstanding 51,189,461
and 51,673,099 shares as of December 31, 2022 and 2021,
respectively
5
5
Additional paid-in capital
306,141
313,901
Retained earnings
138,834
94,973
Total stockholders' equity
444,980
408,879
Total liabilities and stockholders’
equity
$
531,579
$
487,485
AERSALE CORPORATION
CONSOLIDATED STATEMENTS OF
OPERATIONS
(in thousands, except per share
data)
(Unaudited)
Years ended December
31,
2022
2021
2020
Revenue:
Products
$
284,554
$
209,881
$
49,390
Leasing
28,732
30,657
55,649
Services
95,258
99,899
103,899
Total revenue
408,544
340,437
208,938
Cost of sales and operating expenses:
Cost of products
176,074
139,475
49,890
Cost of leasing
6,929
9,804
24,244
Cost of services
74,147
71,766
82,015
Total cost of sales
257,150
221,045
156,149
Gross profit
151,394
119,392
52,789
Selling, general, and administrative
expenses
96,348
77,498
55,635
Payroll support program proceeds
-
(14,768
)
(12,693
)
Transaction costs recovered
-
-
(1,436
)
Income from operations
55,046
56,662
11,283
Other income (expenses):
Interest income (expense), net
1,093
(980
)
(1,645
)
Other income, net
2,268
458
494
Unrealized loss on investment
-
(5,421
)
-
Change in fair value of warrant
liability
(525
)
(2,945
)
(388
)
Total other income (expenses)
2,836
(8,888
)
(1,539
)
Income before income tax provision
57,882
47,774
9,744
Income tax expense
(14,021
)
(11,659
)
(1,650
)
Net income
43,861
36,115
8,094
Earnings per share - basic
$
0.85
$
0.84
$
7.85
Earnings per share - diluted
$
0.83
$
0.76
$
7.39
AERSALE CORPORATION
CONSOLIDATED STATEMENTS OF CASH
FLOWS
(in thousands)
(Unaudited)
Years ended December
31,
2022
2021
2020
Cash flows from operating activities:
Net income
$
43,861
$
36,115
$
8,094
Adjustments to reconcile net income to net
cash (used in) provided by operating activities:
Depreciation and amortization
10,984
12,998
24,223
Amortization of debt issuance costs
455
494
740
Amortization of operating lease assets
873
-
-
Inventory reserve
2,376
6,942
13,651
Impairment of aircraft held for lease
857
-
3,036
Provision for doubtful accounts
(395
)
212
212
Deferred income taxes
(2,387
)
(3,192
)
22
Change in fair value of warrant
liability
525
2,945
388
Share-based compensation
16,498
12,721
1,042
Loss on related party investment
-
5,421
-
Gain on legal settlement
(1,695
)
-
-
Changes in operating assets and
liabilities:
Accounts receivable
(1,029
)
(3,342
)
9,919
Inventory
(37,637
)
(35,672
)
(55,275
)
Deposits, prepaid expenses, and other
current assets
2,923
12,685
(9,132
)
Deferred customer incentives and other
assets
893
(333
)
56
Advance vendor payments
(13,298
)
(8,090
)
(2,958
)
Accounts payable
1,164
3,603
(801
)
Income tax payable
(3,443
)
2,157
1,324
Accrued expenses
417
(1,280
)
(1,697
)
Deferred revenue
(1,505
)
265
(5,894
)
Lessee and customer purchase deposits
(18,027
)
34,690
1,776
Other liabilities
(2,523
)
(260
)
(957
)
Net cash (used in) provided by operating
activities
(113
)
79,079
(12,231
)
Cash flows from investing activities:
Business acquisition
-
-
(16,976
)
Proceeds from sale of assets
52,771
17,095
3,100
Proceeds from legal settlement, net
4,195
-
-
Acquisition of aircraft and engines held
for lease, including capitalized cost
(7,133
)
(2,383
)
(5,128
)
Purchase of property and equipment
(8,462
)
(1,508
)
(2,137
)
Net cash provided by (used in) investing
activities
41,371
13,204
(21,141
)
Cash flows from financing activities:
Repayments of 8% Senior Secured Notes
-
-
(3,424
)
Proceeds from Revolving Credit
Facility
-
-
96,726
Repayments of Revolving Credit
Facility
-
-
(96,726
)
Purchase of treasury stock
(22,204
)
-
-
Cash paid for employee taxes on
withholding shares
-
(694
)
-
Taxes paid related to net share settlement
of equity awards
(2,592
)
-
-
Proceeds from exercise of warrants
-
9,282
-
Proceeds from the issuance of Employee
Stock Purchase Plan shares
538
-
-
Proceeds from Merger
-
-
48,608
Net cash (used in) provided by financing
activities
(24,258
)
8,588
45,184
Increase in cash and cash equivalents
17,000
100,871
11,812
Cash and cash equivalents, beginning of
period
130,188
29,317
17,505
Cash and cash equivalents, end of
period
$
147,188
$
130,188
$
29,317
Supplemental disclosure of cash
activities
Income taxes paid
21,489
8,340
2,650
Interest paid
573
595
855
Supplemental disclosure of noncash
investing activities
Reclassification of aircraft and aircraft
engines inventory (from) to aircraft and engine held for lease,
net
(25,803
)
(7,002
)
6,228
Reclassification of customer purchase
deposits to sale of assets
12,500
-
-
Reclassification of amounts due from
related party to investments
-
5,421
-
AERSALE CORPORATION
Adjusted EBITDA, Net Income and
Diluted EPS Reconciliation Table (In ‘000s)
(Unaudited)
Three months ended December
31,
Twelve months ended December
31,
2022
% of Total Revenue
2021
% of Total Revenue
2022
% of Total Revenue
2021
% of Total Revenue
Reported Net Income
9,193
9.7
%
11,185
9.6
%
43,861
10.7
%
36,115
10.6
%
Addbacks:
Change in FV of Warrant Liability
(1,356
)
(1.4
%)
210
0.2
%
525
0.00
2,945
0.9
%
Stock-based Compensation
4,470
4.7
%
3,822
3.3
%
16,498
0.04
12,721
3.7
%
Payroll taxes related to stock-based
compensation
250
0.3
%
-
0.0
%
250
0.00
-
0.0
%
Inventory Write-down
-
0.0
%
1,640
1.4
%
1,845
0.00
6,416
1.9
%
Unrealized loss on investment
-
0.0
%
5,421
4.6
%
-
-
5,421
1.6
%
Impairment in Flight Equipment
-
0.0
%
-
0.0
%
857
0.00
-
0.0
%
Secondary Offering Costs
579
0.6
%
-
0.0
%
579
0.1
%
-
0.0
%
Relocation Costs
804
0.8
%
-
0.0
%
804
0.2
%
-
0.0
%
Gain on legal settlement
(1,695
)
(1.8
%)
-
0.0
%
(1,695
)
(0.4
%)
-
0.0
%
Income Tax Effect of Adjusting Items
(1)
96
0.1
%
-
0.0
%
76
0.0
%
-
0.0
%
Adjusted Net Income
12,341
12.9
%
22,278
19.1
%
63,600
15.5
%
63,618
18.6
%
Interest Expense
(1,078
)
(1.1
%)
230
0.2
%
(1,093
)
(0.3
%)
980
0.3
%
Income Tax Expense (Benefit)
4,108
4.3
%
2,922
2.5
%
14,021
3.4
%
11,659
3.4
%
Depreciation and Amortization
2,395
2.5
%
3,130
2.7
%
10,984
2.7
%
12,998
3.8
%
Reversal of Income Tax Effect of Adjusting
Items (1)
(96
)
(0.1
%)
-
0.0
%
(76
)
(0.0
%)
-
0.0
%
Adjusted EBITDA
17,670
18.6
%
28,561
24.5
%
87,436
21.4
%
89,255
26.1
%
Reported Basic earnings per
share
0.18
0.24
0.85
0.84
Addbacks:
Change in fair value of warrant
liability
(0.03
)
0.00
0.01
0.07
Stock-based compensation
0.09
0.08
0.32
0.29
Inventory Write-down
-
0.04
0.04
0.15
Unrealized loss on investment
-
0.12
-
0.13
Secondary Offering Costs
0.01
-
0.01
-
Relocation Costs
0.02
-
0.02
-
Gain on legal settlement
(0.03
)
Income Tax Effect of Adjusting Items
0.00
-
0.00
-
Adjusted Basic earnings per
share
0.24
0.49
1.24
1.48
Reported Diluted earnings per
share
0.17
0.21
0.83
0.76
Addbacks:
Change in FV of warrant liability
(0.03
)
0.00
0.01
0.06
Stock-based compensation
0.08
0.07
0.31
0.27
Inventory Write-down
-
0.03
0.03
0.14
Impairment in Flight Equipment
-
0.10
-
0.11
Secondary Offering Costs
0.01
-
0.01
-
Relocation Costs
0.02
-
0.02
-
Gain on legal settlement
(0.03
)
Income Tax Effect of Adjusting Items
0.00
-
0.00
-
Adjusted Diluted earnings per
share
0.23
0.41
1.20
1.34
Forward Looking Statements
This press release includes “forward-looking statements”. We
intend such forward-looking statements to be covered by the safe
harbor provisions for forward-looking statements contained in
Section 27A of the Securities Act of 1933, as amended (the
“Securities Act”), and Section 21E of the Securities Exchange Act
of 1934, as amended (the “Exchange Act”). All statements other than
statements of historical facts contained in this press release may
constitute forward-looking statements, and include, but are not
limited to, statements regarding our anticipated financial
performance, including all statements set forth in the “2023
Guidance” section above such as expectations of revenue in the
range of $460 - $490 million and adjusted EBITDA in the range of
$70 - $80 million; our expectations that up to twelve additional
aircraft will be converted to freighters by third parties; the
anticipation that the 757 P2F conversion program is expected to be
a strong contributor to the Company; anticipations regarding an
increasingly favorable market for feedstock availability within
AerSale’s USM business and greater demand for USM parts;
expectations regarding feedstock, and our belief that we are
extremely well positioned to take advantage of the current market
dynamic; our belief that we are well positioned to take advantage
of asset availability; our growth trajectory; the expected
operating capacity of our MRO facilities and demand for such
services; expectations of increased capacity for third party work
and revenue at our Goodyear, AZ facility; the anticipated receipt
and typical timeline of receipt from the FAA of an STC for our
AerAware product; expectation that AerAware is a technology that
will be broadly adopted and that sales of AerAware will be a
meaningful contributor to long-term performance; and expected
benefits from an improving backdrop in commercial aerospace, and
end markets; AerSale’s actual results may differ from their
expectations, estimates and projections and consequently, you
should not rely on these forward-looking statements as predictions
of future events. Words such as “expect,” “estimate,” “project,”
“budget,” “forecast,” “anticipate,” “intend,” “plan,” “may,”
“will,” “could,” “should,” “believes,” “predicts,” “potential,”
“continue,” or the negative of these or other similar expressions
are intended to identify such forward-looking statements. The
forward-looking statements in this press release are only
predictions. We have based these forward-looking statements largely
on our current expectations and projections about future events and
financial trends that we believe may affect our business, financial
condition and results of operations. You should carefully consider
the foregoing factors and the other risks and uncertainties
described in the Risk Factors, Management’s Discussion and Analysis
of Financial Condition and Results of Operations sections of the
Company's most recent Annual Report on Form 10-K filed with the
Securities and Exchange Commission ("SEC"), and its other filings
with the SEC, including its subsequent quarterly reports on Form
10-Q. These filings identify and address other important risks and
uncertainties that could cause actual events and results to differ
materially from those contained in the forward-looking statements.
Moreover, we operate in an evolving environment. New risk factors
and uncertainties may emerge from time to time, and it is not
possible for management to predict all risk factors and
uncertainties.
Forward-looking statements speak only as of the date they are
made. Readers are cautioned not to put undue reliance on
forward-looking statements and we qualify all of our
forward-looking statements by these cautionary statements. Except
as required by applicable law, we do not plan to publicly update or
revise any forward-looking statements contained herein, whether as
a result of any new information, future events, changed
circumstances or otherwise.
About AerSale AerSale serves airlines operating large
jets manufactured by Boeing, Airbus and McDonnell Douglas and is
dedicated to providing integrated aftermarket services and products
designed to help aircraft owners and operators to realize
significant savings in the operation, maintenance and monetization
of their aircraft, engines, and components. AerSale’s offerings
include: Aircraft & Component MRO, Aircraft and Engine Sales
and Leasing, Used Serviceable Material sales, and internally
developed ‘Engineered Solutions’ to enhance aircraft performance
and operating economics (e.g. AerSafe™, AerTrak™, and now
AerAware™).
For more information about AerSale, please visit our website:
www.AerSale.com. Follow us on: LinkedIn | Twitter | Facebook |
Instagram
____________________________ 1 A reconciliation of non-GAAP
adjusted EBITDA guidance to net (loss) income, the most directly
comparable GAAP (Generally Accepted Accounting Principles) measure,
has not been provided due to the lack of predictability regarding
the various reconciling items such as the provision for income
taxes and depreciation and amortization, which are expected to have
a material impact on these measures and cannot be reasonably
predicted without unreasonable efforts.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230306005749/en/
Media: AerSale: Jackie Carlon (305) 764-3200
media.relations@aersale.com
Investors: AerSale: AersaleIR@icrinc.com
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