Ftai Aviation Ltd. · NASDAQ:FTAI
Ftai Aviation — Q1 2024 Earnings Presentation
25 slides from Ftai Aviation's earnings presentation, Apr 26, 2024
Slide 1: Power for the Aftermarket
POWER FOR THE AFTERMARKET INNOVATING CFM56 AND V2500 POWER FTAI Aviation Supplemental Information First Quarter 2024 Leading in Maintenance, Repair and Exchange (MRE) Q1 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 Q1 2024
Key Highlights Q1 2024 Key Business Updates: – Signed Perpetual Power Agreement with LATAM Airlines Group S.A. commencing Q2 2024 o Comprehensive engine power solution through FTAI’s Aerospace Products ‘MRE’(1) program o Offers LATAM flexibility and cost savings on over 30x V2500 & CFM56 powered A
Slide 4: Capital Structure
Capital Structure Net Debt / Run-Rate Adj. EBITDA multiple of 4.0x in Q1 2024(1,2) $125 million of Corporate Revolver facility available as of March 31, 2024 FY2024 Net Debt / Adj. EBITDA targeted to be within mid-range of 3x – 4x(3) Capital Structure Overview ($s in millions) Q1 2024 Adj. EBI
Slide 5: Portfolio Concentration on CFM56 & V2500 Platforms
Portfolio Concentration on CFM56 & V2500 Platforms 425 CFM56 Engines in portfolio including Standalone Engines, Engines On-Wing and Engines at The Module FactoryTM o 114x Engines on Airbus A320 and 53x Engines on Boeing 737 (167 CFM56 Engines) o 226 modules at The Module FactoryTM (~75 Aerospace C
Slide 6: Consolidated Financial Results
Consolidated Financial Results 1 Q1’24 Financial Results 2 Q1’24 Balance Sheet • Net Income Attributable to Shareholders of $31.3mm • Total Assets of $3.2b • Adjusted EBITDA of $164.1mm(1) • Total Debt of $2.7b(2) • Adjusted EBITDA growth of 28.5% versus Q1 2023(1) • Total Cash of $65.4mm Consolidat
Slide 7: Aviation Leasing
Aviation Leasing Highlights & Key Metrics As of March 31, 2024 Engines Aircraft Total • Acquired 25 Engines & 17 Aircraft during Q1 2024 • $38.6mm Asset Sales for 17% NBV gain of $6.7mm # Assets(2) 277 103 380 Net Leasing Equipment $875.8 $1,149.2 $2,025.0 (4 Engines & 11 Aircraft / Airframes) Remai
Slide 8: Aerospace Products
Aerospace Products Highlights & Key Metrics Aerospace Products Margin Q3’23 Q4’23 Q1’24 • Q1’24 Total Revenue growth of 122.1% versus Q1 2023 ($s in millions) • 72 modules sold in Q1’24 to 16 unique customers (9 new / 7 repeat) Total Revenue $118.7 $158.5 $189.1 • Average V2500 gain of $1.9mm per En
Slide 9: Corporate & Other
Corporate & Other Highlights & Key Metrics Corporate Debt Corporate & Other is primarily comprised of: ($s in millions) Q4’23 Q1’24 Corporate Revolver $0.0 $175.0 • Debt, unallocated corporate G&A expenses, and management fees Corporate Bonds $2,550.0 $2,550.0 • Offshore energy related vessels and e
Slide 10: Q1 2024 Coverage Ratios
Q1 2024 Coverage Ratios • Net income Attributable to shareholders of $31 million in Q1 2024 • Generated $157 million in Adj. EBITDA(1) net of Aviation Leasing Gains on Asset Sales • Stable earnings stream to support interest and preferred dividend coverage of 2.6x • Excess cashflows reinvested for a
Slide 11: Appendix
Appendix: ▪ Statement of Operations by Segment ▪ Comparative Statements of Operations ▪ Condensed Balance Sheets ▪ Reconciliation of Non-GAAP Measures ▪ Glossary 11
Slide 12: Statement of Operations by Segment
Statement of Operations by Segment 12
Slide 13: Statement of Operations by Segment (unaudited) Q1 2024
Statement of Operations by Segment (unaudited) For the Three Months Ended March 31, 2024 Aerospace Corporate and ($s in thousands) Aviation Leasing Total Products Other Revenues $ 135,310 $ 189,057 $ 2,327 $ 326,694 Expenses Cost of sales 31,889 110,915 — 142,804 Operating expenses 8,207 7,470 9,640
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 ($s in thousands) Aviation Leasing Total 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: Comparative Statements of Operations
Comparative Statements of Operations 15
Slide 16: Consolidated - Comparative Statements of Operations (unaudited)
Consolidated - Comparative Statements of Operations (unaudited) Three Months Ended ($s in thousands) 3/31/2023 6/30/2023 9/30/2023 12/31/2023 3/31/2024 Revenues Lease Income $ 55,978 $ 59,541 $ 45,622 $ 46,795 $ 53,161 Maintenance revenue 35,141 42,065 63,925 50,216 45,790 Asset sales revenue 108,69
Slide 17: Aviation Leasing - Comparative Statements of Operations (unaudited)
Aviation Leasing - Comparative Statements of Operations (unaudited) Three Months Ended ($s in thousands) 3/31/2023 6/30/2023 9/30/2023 12/31/2023 3/31/2024 Revenues Lease income $ 48,830 $ 48,167 $ 35,981 $ 46,726 $ 50,846 Maintenance revenue 35,141 42,065 63,925 50,216 45,790 Asset sales revenue 10
Slide 18: Aerospace Products - Comparative Statements of Operations (unaudited)
Aerospace Products - Comparative Statements of Operations (unaudited) Three Months Ended ($s in thousands) 3/31/2023 6/30/2023 9/30/2023 12/31/2023 3/31/2024 Revenues Aerospace products revenue $ 85,113 $ 92,725 $ 118,675 $ 158,457 189,057 Total revenues $ 85,113 $ 92,725 $ 118,675 $ 158,457 $ 189,0
Slide 19: Corporate and Other - Comparative Statements of Operations (unaudited)
Corporate and Other - Comparative Statements of Operations (unaudited) Three Months Ended ($s in thousands) 3/31/2023 6/30/2023 9/30/2023 12/31/2023 3/31/2024 Revenues Lease income $ 7,148 $ 11,374 $ 9,641 $ 69 $ 2,315 Other revenue 1,417 2,865 1,392 409 12 Total revenues $ 8,565 $ 14,239 $ 11,033 $
Slide 20: Condensed Balance Sheets
Condensed Balance Sheets Vv = FTAI AVIATION MM 20
Slide 21: Condensed Balance Sheets
Condensed Balance Sheets (unaudited) ($s in thousands) March 31, 2024 December 31, 2023 Gross Property, Plant and Equipment (PP&E) $ 46,901 $ 47,089 Accumulated Depreciation on PP&E (2,787) (1,914) Net PP&E $ 44,114 $ 45,175 Gross Leasing Equipment 2,758,346 2,574,394 Accumulated Depreciation on Lea
Slide 22: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures 22
Slide 23: Adjusted EBITDA Reconciliation by Segment (unaudited)
Adjusted EBITDA Reconciliation by Segment (unaudited) For the Three Months Ended March 31, 2024 Aviation Aerospace Corporate and Total ($s in thousands) Leasing Products Other Net income (loss) attributable to shareholders from continuing operations $ 42,597 $ 66,433 $ (77,743) $ 31,287 Add: Provisi
Slide 24: 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 March 31, 2024 and 2023: (i) depreciation and amortization expense of $49,920 and $40,926, (ii) lease intangible amortization of $3,976 and $3,983 and (iii) amortiz
Slide 25: 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