Ftai Aviation Ltd. · NASDAQ:FTAI
Ftai Aviation — Q3 2023 Earnings Presentation
30 slides from Ftai Aviation's earnings presentation, Oct 26, 2023
Slide 1: Power for the Aftermarket: Supplemental Information Third Quarter 2023
POWER FOR THE AFTERMARKET INNOVATING CFM56 POWER FTAI Aviation Supplemental Information Third Quarter 2023
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: Capital Structure
Capital Structure Run-Rate Net Debt / Adj. EBITDA multiple of 3.6x in Q3 2023(1,2) $50 million of Corporate Revolver facility available as of September 30, 2023 Q4 2023 Run-Rate Net Debt / Adj. EBITDA projected to stay within mid-range of 3x – 4x(3) Capital Structure Overview ($s in millions)
Slide 4: Portfolio Concentration on CFM56 Platform
Portfolio Concentration on CFM56 Platform Portfolio of 92 aircraft and 259 standalone engines as of September 30, 2023 377 CFM56 engines in portfolio including standalone engines, engines on-wing and engines at The Module FactoryTM: o 170 standalone engines o 121 engines on Airbus A320 and 28 en
Slide 5: Consolidated Financial Results
Consolidated Financial Results 1 Q3’23 Financial Results 2 Q3’23 Balance Sheet • Net Income attributable to Shareholders of $33.0 million • Total Assets of $2.6 billion • Adjusted EBITDA of $154.2 million(1) • Total Debt of $2.3 billion(2) • Adjusted EBITDA growth of 41.6% versus Q3 2022(1) • Total
Slide 6: FTAI Segments and Financial Results
FTAI Segments and Financial Results 1 Aviation Leasing 2 Aerospace Products • Experienced in delivering fleet management solutions • Innovative maintenance solutions of the CFM56 engine • Provide affordable & flexible power to airline customers • Maximize time on-wing and create the lowest cost-per-
Slide 7: Aviation Leasing
Aviation Leasing Highlights & Key Metrics As of September 30, 2023 Engines Aircraft Total • Acquired 23 Engines & 10 Aircraft during Q3 2023 • $73.0mm Asset Sales for 24% NBV gain of $17.6mm # Assets(2) 259 92 351 Net Leasing Equipment $812.1 $946.5 $1,758.6 (8 Engines & 17 Aircraft / Airframes) Rem
Slide 8: Aerospace Products
Aerospace Products Highlights & Key Metrics Aerospace Products Margin Q4’22 Q1’23 Q2’23 Q3’23 • $107.1mm Revenue generating $40.6mm Adj. EBITDA in Q3’23 ($s in millions) • 41 modules sold in Q3’23 to 11 unique customers (2 new / 9 repeat) Revenue $59.4 $85.1 $68.1 $107.1 • CFM56 engine parts invento
Slide 9: Corporate & Other
Corporate & Other Highlights & Key Metrics Corporate Debt Corporate & Other is primarily comprised of: ($s in millions) Q2’23 Q3’23 Corporate Revolver $145.0 $250.0 • Debt, unallocated corporate G&A expenses, and management fees Corporate Bonds $2,050.0 $2,050.0 • Offshore energy related vessels and
Slide 10: YTD 2023 Free Cashflow
YTD 2023 Free Cashflow • Generated $492 million positive free cashflow position in 2023 YTD for asset acquisition and investment activity • Acquired 23 Standalone Engines & 10 narrowbody Aircraft during Q3 2023 • $50 million cash available from corporate revolver facility as of September 30, 2023 Fr
Slide 11: FTAI ESG Initiatives
FTAI ESG Initiatives Environmental Dilemma: Jet Engine Maintenance Our Commitment and Program: FTAI ESG • We are committed to minimizing our carbon footprint • On an annual basis CFM56 engine maintenance through sustainable jet engine maintenance. Below are our alone costs ~$10 billion and burdens t
Slide 12: Appendix
Appendix: ▪ Statement of Operations by Segment ▪ Comparative Statements of Operations ▪ Condensed Balance Sheets ▪ Reconciliation of Non-GAAP Measures ▪ Glossary 12
Slide 13: Statement of Operations by Segment
Statement of Operations by Segment 13
Slide 14: Statement of Operations by Segment: Three Months Ended Sept 30, 2023
Statement of Operations by Segment (unaudited) For the Three Months Ended September 30, 2023 Aerospace Corporate and Aviation Leasing Total ($s in thousands) Products Other Revenues $ 172,978 $ 107,085 $ 11,033 $ 291,096 Expenses Cost of sales 55,398 61,309 — 116,707 Operating expenses 13,944 5,947
Slide 15: Statement of Operations by Segment: Three Months Ended Sept 30, 2022
Statement of Operations by Segment (unaudited) For the Three Months Ended September 30, 2022 Aerospace Corporate and Aviation Leasing Total ($s in thousands) Products Other Revenues $ 164,848 $ 53,401 $ 12,116 $ 230,365 Expenses Cost of sales 64,855 31,093 — 95,948 Operating expenses 10,533 3,491 13
Slide 16: Statement of Operations by Segment: Nine Months Ended Sept 30, 2023
Statement of Operations by Segment (unaudited) For the Nine Months Ended September 30, 2023 Aerospace Corporate and Aviation Leasing Total ($s in thousands) Products Other Revenues $ 564,049 $ 260,273 $ 33,837 $ 858,159 Expenses Cost of sales 217,190 149,719 — 366,909 Operating expenses 28,610 12,83
Slide 17: Statement of Operations by Segment: Nine Months Ended Sept 30, 2022
Statement of Operations by Segment (unaudited) For the Nine Months Ended September 30, 2022 Aerospace Corporate and Aviation Leasing Total ($s in thousands) Products Other Revenues $ 317,994 $ 94,211 $ 21,915 $ 434,120 Expenses Cost of sales 64,855 55,284 — 120,139 Operating expenses 72,135 8,094 27
Slide 18: Comparative Statements of Operations
Comparative Statements of Operations 18
Slide 19: Consolidated - Comparative Statements of Operations
Consolidated - Comparative Statements of Operations (unaudited) Three Months Ended ($s in thousands) 9/30/2022 12/31/2022 3/31/2023 6/30/2023 9/30/2023 Revenues Lease Income $ 50,198 $ 50,152 $ 55,978 $ 59,541 $ 45,622 Maintenance revenue 35,507 36,675 35,141 42,065 63,925 Asset sales revenue 85,488
Slide 20: Aviation Leasing - Comparative Statements of Operations
Aviation Leasing - Comparative Statements of Operations (unaudited) Three Months Ended ($s in thousands) 9/30/2022 12/31/2022 3/31/2023 6/30/2023 9/30/2023 Revenues Lease income $ 40,392 $ 47,420 $ 48,830 $ 48,167 $ 35,981 Maintenance revenue 35,507 36,675 35,141 42,065 63,925 Asset sales revenue 85
Slide 21: Aerospace Products - Comparative Statements of Operations
Aerospace Products - Comparative Statements of Operations (unaudited) Three Months Ended ($s in thousands) 9/30/2022 12/31/2022 3/31/2023 6/30/2023 9/30/2023 Revenues Aerospace products revenue $ 53,401 $ 59,339 $ 85,113 $ 68,075 $ 107,085 Total revenues $ 53,401 $ 59,339 $ 85,113 $ 68,075 $ 107,085
Slide 22: Corporate and Other - Comparative Statements of Operations
Corporate and Other - Comparative Statements of Operations (unaudited) Three Months Ended ($s in thousands) 9/30/2022 12/31/2022 3/31/2023 6/30/2023 9/30/2023 Revenues Lease income $ 9,806 $ 2,732 $ 7,148 $ 11,374 $ 9,641 Other revenue 2,310 2,301 1,417 2,865 1,392 Total revenues $ 12,116 $ 5,033 $
Slide 23: Condensed Balance Sheets by Segment
Condensed Balance Sheets by Segment 23
Slide 24: Condensed Balance Sheets
Condensed Balance Sheets (unaudited) ($s in thousands) September 30, 2023 December 31, 2022 Gross Property, Plant and Equipment (PP&E) $ 13,420 $ 10,974 Accumulated Depreciation on PP&E (1,297) (960) Net PP&E $ 13,454 $ 10,014 Gross Leasing Equipment 2,448,274 2,413,230 Accumulated Depreciation on L
Slide 25: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures 25
Slide 26: Adjusted EBITDA Reconciliation by Segment: Three Months Ended Sept 30, 2023
Adjusted EBITDA Reconciliation by Segment (unaudited)1 For the Three Months Ended September 30, 2023 Aviation Aerospace Corporate and ($s in thousands) Total Leasing Products Other Net income (loss) attributable to shareholders from continuing operations $ 58,170 $ 38,627 $ (63,824) $ 32,973 Add: Pr
Slide 27: Adjusted EBITDA Reconciliation by Segment: Nine Months Ended Sept 30, 2023
Adjusted EBITDA Reconciliation by Segment (unaudited) For the Nine Months Ended September 30, 2023 Aviation Aerospace Corporate and ($s in thousands) Total Leasing Products Other Net income (loss) attributable to shareholders from continuing operations $ 193,279 $ 92,223 $ (183,505) $ 101,997 Add: P
Slide 28: Notes to Non-GAAP reconciliations - Adjusted EBITDA
Notes to Non-GAAP reconciliations - Adjusted EBITDA ($s in thousands) (1) Refer to the FTAI Aviation Ltd. Q4'22 Earnings Supplement for Adjusted EBITDA Reconciliation by Segment for the three months ended December 31, 2022, the FTAI Aviation Ltd. Q1'23 Earnings Supplement for Adjusted EBITDA Reconci
Slide 29: Notes to Non-GAAP reconciliations - Adjusted EBITDA
Notes to Non-GAAP reconciliations - Adjusted EBITDA ($s in thousands) (3) Total Includes the following items for the three months ended September 30, 2023 and 2022: (i) net income (loss) of $46 and $(358), (ii) depreciation and amortization expense of $367 and $117 and (iii) acquisition and transact
Slide 30: 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