Ftai Aviation Ltd. · NASDAQ:FTAI
Ftai Aviation — Q1 2023 Earnings Presentation
26 slides from Ftai Aviation's earnings presentation, Apr 27, 2023
Slide 1: Power for the Aftermarket: FTAI Aviation Q1 2023 Supplemental Information
POWER FOR THE AFTERMARKET INNOVATING CFM56 POWER FTAI Aviation Supplemental Information First 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 declined from 4.3x in prior quarter to 4.0x in Q1 2023(1,2) $225 million of Corporate Revolver facility available as of March 31, 2023 Q4 2023 Net Debt / Adj. EBITDA projected to decline to range of 3x – 4x(3) Capital Structure Overvie
Slide 4: Portfolio Concentration on CFM56 Platform
Portfolio Concentration on CFM56 Platform Portfolio of 93 aircraft and 241 standalone engines as of March 31, 2023 336 CFM56 engines in portfolio including standalone engines, engines on-wing and engines at The Module FactoryTM: o 152 standalone engines o 119x engines on Airbus A320 and 14x engi
Slide 5: Consolidated Financial Results
Consolidated Financial Results 1 Q1’23 Financial Results 2 Q1’23 Balance Sheet • Net Income attributable to Shareholders of $22.6 million • Total Assets of $2.4 billion • Quarterly Net Income growth of 13.0% versus Q4’22 • Total Debt of $2.1 billion(2) • Adjusted EBITDA of $127.7 million(1) • Issued
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 March 31, 2023 Engines Aircraft Total • Acquired $127.8mm of equipment (22 Engines & 5 Aircraft) • $108.7mm Asset Sales for 15% NBV gain of $16.5mm # Assets(2) 241 93 334 Net Leasing Equipment $743.7 $935.3 $1,679.0 (3 Engines & 22 Aircraft / Airframes
Slide 8: Aerospace Products
Aerospace Products Highlights & Key Metrics Aerospace Products Margin Q3’22 Q4’22 Q1’23 • $85.1mm Revenue generating $27.4mm Adj. EBITDA in Q1’23 ($s in millions) • 39 modules sold in Q1’23 to 10 unique customers Revenue $53.4 $59.4 $85.1 • CFM56 engine parts inventory of $192.8mm as of 03/31 Adj. E
Slide 9: Corporate & Other
Corporate & Other Highlights & Key Metrics Corporate Debt Corporate & Other is primarily comprised of: ($s in millions) Q4’22 Q1’23 Corporate Revolver $150.0 $75.0 • Debt, unallocated corporate G&A expenses, and management fees Corporate Bonds $2,050.0 $2,050.0 • Offshore energy related vessels and
Slide 10: Q1 2023 Free Cashflow
Q1 2023 Free Cashflow • Generated $195.1 million positive free cashflow position for asset acquisition & investment activity • Acquired 22 CFM56 Engines & 5 narrowbody Aircraft during Q1 2023 for $127.8 million • Invested $19.5 million for 50% equity stake in QuickTurn Engine Center LLC(1) Free Cash
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 ~$10 billion and burdens t
Slide 12: Appendix
Appendix: ▪ Statement of Operations by Segment ▪ Comparative Statements of Operations ▪ Condensed Balance Sheets ▪ Reconciliation of Non-GAAP Measures ▪ Glossary 12
Slide 13: Statement of Operations by Segment
Statement of Operations by Segment 13
Slide 14: Statement of Operations by Segment (unaudited) - Q1 2023
Statement of Operations by Segment (unaudited) For the Three Months Ended March 31, 2023 Aerospace Corporate and Aviation Leasing Total ($s in thousands) Products Other Revenues $ 199,040 $ 85,113 $ 8,565 $ 292,718 Expenses Cost of sales 92,234 53,436 — 145,670 Operating expenses 7,088 3,655 11,791
Slide 15: Statement of Operations by Segment (unaudited) - Q1 2022
Statement of Operations by Segment (unaudited) For the Three Months Ended March 31, 2022 Aerospace Corporate and Aviation Leasing Total ($s in thousands) Products Other Revenues $ 70,712 $ 14,313 $ 6,666 $ 91,691 Expenses Cost of sales — 9,050 — 9,050 Operating expenses 54,472 1,623 5,704 61,799 Gen
Slide 16: Comparative Statements of Operations
Comparative Statements of Operations 16
Slide 17: Consolidated - Comparative Statements of Operations (unaudited)
Consolidated - Comparative Statements of Operations (unaudited) Three Months Ended ($s in thousands) 3/31/2022 6/30/2022 9/30/2022 12/31/2022 03/31/2023 Revenues Lease income $ 39,325 $ 39,639 $ 50,198 $ 50,152 $ 55,978 Maintenance revenue 36,732 39,932 35,507 36,675 35,141 Asset sales revenue — — 8
Slide 18: Aviation Leasing - Comparative Statements of Operations (unaudited)
Aviation Leasing - Comparative Statements of Operations (unaudited) Three Months Ended ($s in thousands) 03/31/2022 6/30/2022 9/30/2022 12/31/2022 03/31/2023 Revenues Lease income $ 33,958 $ 37,298 $ 40,392 $ 47,420 $ 48,830 Maintenance revenue 36,732 39,932 35,507 36,675 35,141 Asset sales revenue
Slide 19: Aerospace Products - Comparative Statements of Operations (unaudited)
Aerospace Products - Comparative Statements of Operations (unaudited) Three Months Ended ($s in thousands) 03/31/2022 6/30/2022 9/30/2022 12/31/2022 03/31/2023 Revenues Aerospace products revenue $ 14,313 $ 26,497 $ 53,401 $ 59,339 $ 85,113 Total revenues $ 14,313 $ 26,497 $ 53,401 $ 59,339 $ 85,113
Slide 20: Corporate and Other - Comparative Statements of Operations (unaudited)
Corporate and Other - Comparative Statements of Operations (unaudited) Three Months Ended ($s in thousands) 03/31/2022 6/30/2022 9/30/2022 12/31/2022 03/31/2023 Revenues Equipment leasing revenues Lease income $ 5,367 $ 2,341 $ 9,806 $ 2,732 $ 7,148 Other revenue 1,299 792 2,310 2,301 1,417 Total re
Slide 21: Condensed Balance Sheets
Condensed Balance Sheets Vv = FTAI AVIATION MM 21
Slide 22: Condensed Balance Sheets
Condensed Balance Sheets (unaudited) ($s in thousands) March 31, 2023 December 31, 2022 Gross Property, Plant and Equipment (PP&E) $ 12,558 $ 10,974 Accumulated Depreciation on PP&E (1,120) (960) Net PP&E $ 11,438 $ 10,014 Gross Leasing Equipment 2,346,078 2,413,230 Accumulated Depreciation on Leasi
Slide 23: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures 23
Slide 24: Adjusted EBITDA Reconciliation by Segment (unaudited)
Adjusted EBITDA Reconciliation by Segment (unaudited)1 For the Three Months Ended March 31, 2023 Aviation Aerospace Corporate and Total ($s in thousands) Leasing Products Other Net income (loss) attributable to shareholders from continuing operations $ 57,810 $ 25,029 $ (60,233) $ 22,606 Add: Provis
Slide 25: Notes to Non-GAAP Reconciliations - Adjusted EBITDA
Notes to Non-GAAP Reconciliations - Adjusted EBITDA ($s in thousands) (1) Refer to the FTAI Aviation Ltd. Q3’22 Earnings Supplement for Adjusted EBITDA Reconciliation by Segment for the three months ended June 30, 2022 and September 30, 2022 and the FTAI Aviation Ltd. Q4’22 Earnings Supplement for A
Slide 26: 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