Ftai Aviation Ltd. · NASDAQ:FTAI
Ftai Aviation — Q3 2024 Earnings Presentation
28 slides from Ftai Aviation's earnings presentation, Oct 31, 2024
Slide 1: Power for the Aftermarket
POWER FOR THE AFTERMARKET INNOVATING CFM56 AND V2500 POWER FTAI Aviation Supplemental Information Third Quarter 2024 Leading in Maintenance, Repair and Exchange (MRE) Q3 2024
Slide 2: Disclaimers
Disclaimers IN GENERAL. This disclaimer applies to this document and the verbal or written comments of any person presenting it. This document, taken together with any such verbal or written comments, is referred to herein as the “Presentation.” The information contained on, or accessible through, a
Slide 3: Key Highlights Q3 2024
Key Highlights Q3 2024 Business Updates: Closed acquisition on September 9, 2024, of Lockheed Martin Commercial Engine Services (LMCES) for $170 million – Agreement signed May 30, 2024, was subject to customary regulatory approval Notice issued to Preferred Equity Series A shareholders for redem
Slide 4: Capital Structure
Capital Structure Net Debt / Run-Rate Adj. EBITDA multiple of 3.3x in Q3 2024(1,2) $250 million of Corporate Revolver facility available as of September 30, 2024 Q4 2024 Net Debt / Run-Rate Adj. EBITDA targeted to be within 3.0x – 3.5x range(3) Capital Structure Overview ($s in millions) Q3 20
Slide 5: Portfolio Concentration on CFM56 & V2500 Platforms
Portfolio Concentration on CFM56 & V2500 Platforms 442 CFM56 Engines in portfolio including Standalone Engines, Engines On-Wing and Engines at the Module Factory o 109x Engines on Airbus A320 and 51x Engines on Boeing 737 (160 CFM56 Engines) o 274 modules at the Module Factory (~91 Aerospace CFM56
Slide 6: Consolidated Financial Results
Consolidated Financial Results 1 Q3’24 Financial Results 2 Q3’24 Balance Sheet • Net Income Attributable to Shareholders of $78.1mm • Total Assets of $3.7b • Adjusted EBITDA of $232.0mm(1) • Total Debt of $3.2b(2) • Adjusted EBITDA growth of 50.5% versus Q3 2023(1) • Total Cash of $112.0mm Consolida
Slide 7: Aviation Leasing
Aviation Leasing Highlights & Key Metrics As of September 30, 2024 Engines Aircraft Total • Acquired 39 Engines & 3 Aircraft during Q3 ‘24 # Assets(1) 297 96 393 • $35.0mm Asset Sales for 41% NBV gain of $14.2mm Net Leasing Equipment $959.5 $1,058.1 $2,017.6 • W.A. Utilization of 79% Remaining Lease
Slide 8: Aerospace Products
Aerospace Products Highlights & Key Metrics Aerospace Products Margin Q3’23 Q2’24 Q3’24 • Q3’24 Total Revenue growth of 155.7% versus Q3 2023 ($s in millions) • Annual Shop Visit Capacity for 1,350 CFM56 Modules Total Revenue $118.7 $245.2 $303.5 • Consistently generating Adj. EBITDA margins of betw
Slide 9: Corporate & Other
Corporate & Other Highlights & Key Metrics Corporate Debt Corporate & Other is primarily comprised of: ($s in millions) Q2’24 Q3’24 Corporate Revolver $0.0 $150.0 • Debt, unallocated corporate G&A expenses and management fees before Corporate Bonds $3,130.9 $3,130.5 internalization Other(1) $(53.3)
Slide 10: Q3 2024 Coverage Ratios
Q3 2024 Coverage Ratios • Net Income Attributable to Shareholders of $78 million in Q3 2024 • Generated $218 million in Adj. EBITDA(1) net of Aviation Leasing Gains on Asset Sales • Stable earnings stream to support interest and preferred dividend coverage of 2.8x • Excess cashflows reinvested for a
Slide 11: Appendix
Appendix: ▪ Statement of Operations by Segment ▪ Comparative Statements of Operations ▪ Condensed Balance Sheets ▪ Reconciliation of Non-GAAP Measures ▪ Glossary 11
Slide 12: Statement of Operations by Segment
Statement of Operations by Segment 12
Slide 13: Statement of Operations by Segment (unaudited) - Q3 2024
Statement of Operations by Segment (unaudited) For the Three Months Ended September 30, 2024 Aerospace Corporate and ($s in thousands) Aviation Leasing Total Products Other Revenues $ 152,266 $ 303,469 $ 10,059 $ 465,794 Expenses Cost of sales 20,684 198,812 — 219,496 Operating expenses 9,995 2,617
Slide 14: Statement of Operations by Segment (unaudited) - Q3 2023
Statement of Operations by Segment (unaudited) For the Three Months Ended September 30, 2023 Aerospace Corporate and ($s in thousands) Aviation Leasing Total Products Other Revenues $ 161,388 $ 118,675 $ 11,033 $ 291,096 Expenses Cost of sales 46,511 70,196 — 116,707 Operating expenses 13,944 5,947
Slide 15: Statement of Operations by Segment (unaudited) - Nine Months 2024
Statement of Operations by Segment (unaudited) For the Nine Months Ended September 30, 2024 Aerospace Corporate and ($s in thousands) Aviation Leasing Total Products Other Revenues $ 472,013 $ 737,726 $ 26,343 $ 1,236,082 Expenses Cost of sales 111,542 456,615 — 568,157 Operating expenses 26,984 16,
Slide 16: Statement of Operations by Segment (unaudited) - Nine Months 2023
Statement of Operations by Segment (unaudited) For the Nine Months Ended September 30, 2023 Aerospace Corporate and ($s in thousands) Aviation Leasing Total Products Other Revenues $ 527,809 $ 296,513 $ 33,837 $ 858,159 Expenses Cost of sales 188,343 178,566 — 366,909 Operating expenses 28,610 12,83
Slide 17: Comparative Statements of Operations
Comparative Statements of Operations 17
Slide 18: Consolidated - Comparative Statements of Operations
Consolidated - Comparative Statements of Operations (unaudited) Three Months Ended ($s in thousands) 9/30/2023 12/31/2023 3/31/2024 6/30/2024 9/30/2024 Revenues Lease Income $ 45,622 $ 46,795 $ 53,161 $ 70,754 $ 65,450 Maintenance revenue 63,925 50,216 45,790 51,187 59,917 Asset sales revenue 61,400
Slide 19: Aviation Leasing - Comparative Statements of Operations
Aviation Leasing - Comparative Statements of Operations (unaudited) Three Months Ended ($s in thousands) 9/30/2023 12/31/2023 3/31/2024 6/30/2024 9/30/2024 Revenues Lease income $ 35,981 $ 46,726 $ 50,846 $ 60,759 $ 57,322 Maintenance revenue 63,925 50,216 45,790 51,187 59,917 Asset sales revenue 61
Slide 20: Aerospace Products - Comparative Statements of Operations
Aerospace Products - Comparative Statements of Operations (unaudited) Three Months Ended ($s in thousands) 9/30/2023 12/31/2023 3/31/2024 6/30/2024 9/30/2024 Revenues Aerospace products revenue $ 118,675 $ 158,457 $ 189,057 $ 245,200 303,469 Total revenues $ 118,675 $ 158,457 $ 189,057 $ 245,200 $ 3
Slide 21: Corporate and Other - Comparative Statements of Operations
Corporate and Other - Comparative Statements of Operations (unaudited) Three Months Ended ($s in thousands) 9/30/2023 12/31/2023 3/31/2024 6/30/2024 9/30/2024 Revenues Lease income $ 9,641 $ 69 $ 2,315 $ 9,995 $ 8,128 Other revenue 1,392 409 12 3,962 1,931 Total revenues $ 11,033 $ 478 $ 2,327 $ 13,
Slide 22: Condensed Balance Sheets
Condensed Balance Sheets Vv = FTAI AVIATION MM 22
Slide 23: Condensed Balance Sheets
Condensed Balance Sheets (unaudited) ($s in thousands) September 30, 2024 December 31, 2023 Gross property, plant and equipment (PP&E) $ 108,579 $ 47,089 Accumulated depreciation on PP&E (4,974) (1,914) Net PP&E $ 103,605 $ 45,175 Gross leasing equipment 2,621,016 2,574,394 Accumulated depreciation
Slide 24: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures 24
Slide 25: Adjusted EBITDA Reconciliation by Segment - Q3 2024
Adjusted EBITDA Reconciliation by Segment (unaudited) For the Three Months Ended September 30, 2024 Aviation Aerospace Corporate and Total ($s in thousands) Leasing Products Other Net income (loss) attributable to shareholders $ 59,596 $ 93,788 $ (75,237) $ 78,147 Add: Provision for (benefit from) i
Slide 26: Adjusted EBITDA Reconciliation by Segment - Nine Months 2024
Adjusted EBITDA Reconciliation by Segment (unaudited) For the Nine Months Ended September 30, 2024 Aviation Aerospace Corporate and Total ($s in thousands) Leasing Products Other Net income (loss) attributable to shareholders $ 154,973 $ 245,096 $ (518,840) $ (118,771) Add: Provision for (benefit fr
Slide 27: Notes to Non-GAAP Reconciliations - Adjusted EBITDA
Notes to Non-GAAP Reconciliations - Adjusted EBITDA ($s in thousands) (1) Total Includes the following items for the three months ended September 30, 2024 and 2023: (i) depreciation and amortization expense of $56,775 and $43,959, (ii) lease intangible amortization of $3,720 and $3,726 and (iii) amo
Slide 28: Glossary
Glossary Adjusted EBITDA The Chief Operating Decision Maker (“CODM”) utilizes Adjusted EBITDA as the key performance measure. Adjusted EBITDA is not a financial measure in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”). This performance measure provides the CODM with the