Ftai Aviation Ltd. · NASDAQ:FTAI
Ftai Aviation — Q2 2023 Earnings Presentation
30 slides from Ftai Aviation's earnings presentation, Jul 27, 2023
Slide 1: Power for the Aftermarket: Supplemental Information Second Quarter 2023
POWER FOR THE AFTERMARKET INNOVATING CFM56 POWER FTAI Aviation Supplemental Information Second 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 4.0x in prior quarter to 3.5x in Q2 2023(1,2) $155 million of Corporate Revolver facility available as of June 30, 2023 Net Debt / Adj. EBITDA by Q4 2023 projected to stay within range of 3x – 4x(3) Capital Structure Over
Slide 4: Portfolio Concentration on CFM56 Platform
Portfolio Concentration on CFM56 Platform Portfolio of 97 aircraft and 247 standalone engines as of June 30, 2023 377 CFM56 engines in portfolio including standalone engines, engines on-wing and engines at The Module FactoryTM: o 161 standalone engines o 119x engines on Airbus A320 and 32x engin
Slide 5: Consolidated Financial Results
Consolidated Financial Results 1 Q2’23 Financial Results 2 Q2’23 Balance Sheet • Net Income attributable to Shareholders of $46.4 million • Total Assets of $2.5 billion • Quarterly Net Income growth of 105.3% versus Q1’23 • Total Debt of $2.2 billion(2) • Adjusted EBITDA of $153.1 million(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 June 30, 2023 Engines Aircraft Total • Acquired 23 Engines & 15 Aircraft during Q2 2023 • $101.5mm Asset Sales for 31% NBV gain of $31.9mm # Assets(2) 247 97 344 Net Leasing Equipment $771.7 $951.5 $1,723.2 (17 Engines & 17 Aircraft / Airframes) Remain
Slide 8: Aerospace Products
Aerospace Products Highlights & Key Metrics Aerospace Products Margin Q4’22 Q1’23 Q2’23 • $68.1mm Revenue generating $30.1mm Adj. EBITDA in Q2’23 ($s in millions) • 37 modules sold in Q2’23 to 9 unique customers (3 new / 6 repeat) Revenue $59.4 $85.1 $68.1 • CFM56 engine parts inventory of $232.0mm
Slide 9: Corporate & Other
Corporate & Other Highlights & Key Metrics Corporate Debt Corporate & Other is primarily comprised of: ($s in millions) Q1’23 Q2’23 Corporate Revolver $75.0 $145.0 • Debt, unallocated corporate G&A expenses, and management fees Corporate Bonds $2,050.0 $2,050.0 • Offshore energy related vessels and
Slide 10: 1H 2023 Free Cashflow
1H 2023 Free Cashflow • Generated $344.4 million positive free cashflow position in 1H 2023 for asset acquisition & investment activity • Acquired 23 Standalone Engines & 15 narrowbody Aircraft during Q2 2023 • $155 million cash available from corporate revolver facility as of June 30, 2023 Free Cas
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 ~$10 billion and burdens t
Slide 12: Appendix
Appendix: ▪ Statement of Operations by Segment ▪ Comparative Statements of Operations ▪ Condensed Balance Sheets ▪ Reconciliation of Non-GAAP Measures ▪ Glossary 12
Slide 13: Statement of Operations by Segment
Statement of Operations by Segment 13
Slide 14: Statement of Operations by Segment, Three Months Ended June 30, 2023
Statement of Operations by Segment (unaudited) For the Three Months Ended June 30, 2023 Aerospace Corporate and Aviation Leasing Total ($s in thousands) Products Other Revenues $ 192,031 $ 68,075 $ 14,239 $ 274,345 Expenses Cost of sales 69,558 34,974 — 104,532 Operating expenses 7,578 3,236 13,983
Slide 15: Statement of Operations by Segment, Three Months Ended June 30, 2022
Statement of Operations by Segment (unaudited) For the Three Months Ended June 30, 2022 Aerospace Corporate and Aviation Leasing Total ($s in thousands) Products Other Revenues $ 82,434 $ 26,497 $ 3,133 $ 112,064 Expenses Cost of sales — 15,141 — 15,141 Operating expenses 7,130 2,980 8,890 19,000 Ge
Slide 16: Statement of Operations by Segment, Six Months Ended June 30, 2023
Statement of Operations by Segment (unaudited) For the Six Months Ended June 30, 2023 Aerospace Corporate and Aviation Leasing Total ($s in thousands) Products Other Revenues $ 391,071 $ 153,188 $ 22,804 $ 567,063 Expenses Cost of sales 161,792 88,410 — 250,202 Operating expenses 14,666 6,891 25,774
Slide 17: Statement of Operations by Segment, Six Months Ended June 30, 2022
Statement of Operations by Segment (unaudited) For the Six Months Ended June 30, 2022 Aerospace Corporate and Aviation Leasing Total ($s in thousands) Products Other Revenues $ 153,146 $ 40,810 $ 9,799 $ 203,755 Expenses Cost of sales — 24,191 — 24,191 Operating expenses 61,602 4,603 14,595 80,800 G
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) 6/30/2022 9/30/2022 12/31/2022 3/31/2023 6/30/2023 Revenues Lease Income $ 39,640 $ 50,198 $ 50,152 $ 55,978 $ 59,541 Maintenance revenue 39,932 35,507 36,675 35,141 42,065 Asset sales revenue — 85,4
Slide 20: Aviation Leasing - Comparative Statements of Operations
Aviation Leasing - Comparative Statements of Operations (unaudited) Three Months Ended ($s in thousands) 6/30/2022 9/30/2022 12/31/2022 3/31/2023 6/30/2023 Revenues Lease income $ 37,298 $ 40,392 $ 47,420 $ 48,830 $ 48,167 Maintenance revenue 39,932 35,507 36,675 35,141 42,065 Asset sales revenue —
Slide 21: Aerospace Products - Comparative Statements of Operations
Aerospace Products - Comparative Statements of Operations (unaudited) Three Months Ended ($s in thousands) 6/30/2022 9/30/2022 12/31/2022 3/31/2023 6/30/2023 Revenues Aerospace products revenue $ 26,497 $ 53,401 $ 59,339 $ 85,113 $ 68,075 Total revenues $ 26,497 $ 53,401 $ 59,339 $ 85,113 $ 68,075 E
Slide 22: Corporate and Other - Comparative Statements of Operations
Corporate and Other - Comparative Statements of Operations (unaudited) Three Months Ended ($s in thousands) 6/30/2022 9/30/2022 12/31/2022 3/31/2023 6/30/2023 Revenues Lease income $ 2,342 $ 9,806 $ 2,732 $ 7,148 $ 11,374 Other revenue 791 2,310 2,301 1,417 2,865 Total revenues $ 3,133 $ 12,116 $ 5,
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) June 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 $ 12,123 $ 10,014 Gross Leasing Equipment 2,396,594 2,413,230 Accumulated Depreciation on Leasin
Slide 25: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures 25
Slide 26: Adjusted EBITDA Reconciliation by Segment, Three Months
Adjusted EBITDA Reconciliation by Segment (unaudited)1 For the Three Months Ended June 30, 2023 Aviation Aerospace Corporate and ($s in thousands) Total Leasing Products Other Net income (loss) attributable to shareholders from continuing operations $ 77,299 $ 28,567 $ (59,448) $ 46,418 Add: Provisi
Slide 27: Adjusted EBITDA Reconciliation by Segment, Six Months
Adjusted EBITDA Reconciliation by Segment (unaudited) For the Six Months Ended June 30, 2023 Aviation Aerospace Corporate and ($s in thousands) Total Leasing Products Other Net income (loss) attributable to shareholders from continuing operations $ 135,109 $ 53,596 $ (119,681) $ 69,024 Add: Provisio
Slide 28: Notes to Non-GAAP reconciliations - Adjusted EBITDA
Notes to Non-GAAP reconciliations - Adjusted EBITDA ($s in thousands) (1) Refer to the FTAI Aviation Ltd. Q3'22 Earnings Supplement for Adjusted EBITDA Reconciliation by Segment for the three months ended September 30, 2022, the FTAI Aviation Ltd. Q4'22 Earnings Supplement for Adjusted EBITDA Reconc
Slide 29: Notes to Non-GAAP reconciliations - Adjusted EBITDA
Notes to Non-GAAP reconciliations - Adjusted EBITDA ($s in thousands) (3) Total Includes the following items for the three months ended June 30, 2023 and 2022: (i) net (loss) income of $(380) and $35, (ii) depreciation and amortization expense of $435 and $117 and (iii) acquisition and transaction e
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