Revenue Performance - Fourth quarter 2024 revenue was $94.7 million, a slight increase of 0.3% from $94.4 million in the same quarter of 2023[3] - Excluding flight equipment sales, fourth-quarter 2024 revenue rose 35.5% year-over-year to $63.7 million, driven by improved feedstock levels and strong commercial demand[3] - Full year 2024 revenue was $345.1 million, a 3.2% increase from $334.5 million in 2023[13] - TechOps revenue for 2024 grew by 8.6% to $129.6 million, driven by increased revenues from accessory and landing gear MRO facilities[14] - Total revenue for Q4 2024 was $94,741, slightly up from $94,422 in Q4 2023, representing a year-over-year increase of 0.3%[27] Profitability - GAAP net income for Q4 2024 was $2.7 million, compared to a net loss of $2.7 million in Q4 2023[10] - Adjusted EBITDA for Q4 2024 was $13.0 million, up from $6.0 million in Q4 2023, reflecting higher sales volume and lower expenses[12] - GAAP net income for 2024 was $5.9 million, compared to a net loss of $5.6 million in 2023[17] - Earnings per share (EPS) for Q4 2024 was $0.05, compared to a loss of $0.05 in Q4 2023, indicating a recovery in profitability[27] - Reported net income for Q4 2024 was $2,702 million, a significant improvement from a net loss of $2,732 million in Q4 2023, representing a 2.9% of total revenue[33] - Adjusted net income for Q4 2024 was $4,775 million, compared to a loss of $144 million in Q4 2023, indicating a strong recovery in profitability[33] - Adjusted EBITDA for the year ended December 31, 2024, reached $33,386 million, up from $12,278 million in 2023, reflecting a 9.7% margin[33] Assets and Liabilities - Total current assets increased to $284,030 in 2024 from $264,774 in 2023, reflecting a growth of 7.3%[29] - Total liabilities rose to $149,103 in 2024, up from $108,923 in 2023, indicating an increase of 37%[29] - Cash and cash equivalents decreased to $4,698 in 2024 from $5,873 in 2023, a decline of 20%[29] - The company reported a significant increase in aircraft and engines held for lease, with net assets rising to $67,847 in 2024 from $26,475 in 2023[29] - The company’s total stockholders' equity increased to $455,620 in 2024 from $445,015 in 2023, reflecting a growth of 2.4%[29] Cash Flow - Operating cash flow for the year was $11,184, a substantial improvement compared to a cash outflow of $174,150 in 2023[31] Future Outlook - AerSale anticipates greater demand for its USM business and expects to benefit from an improving backdrop in commercial aerospace[34] - The company is well positioned to take advantage of asset availability and improving lease pool demand[34] - The company plans to continue monitoring risks and uncertainties that could impact future performance, as outlined in its SEC filings[34] Product Development - AerSale's offerings include integrated aftermarket services designed to help aircraft owners realize significant savings in operation and maintenance[36] - The company is focused on expanding its market presence through new product developments like AerSafe™, AerTrak™, and AerAware™[36] Interest Expense - Interest expense for the year ended December 31, 2024, was $5,703 million, compared to a negligible amount in 2023, indicating increased financing costs[33]

Group 1 - The core viewpoint is that AerSale Corporation (NASDAQ: ASLE) has faced challenges leading to a price target reduction of over 30% due to unclear commercialization prospects for AerAware and subpar business performance [2] - The company operates within the aerospace, defense, and airline industry, which has significant growth potential [2] - The analysis provided is data-driven, focusing on investment opportunities and contextual developments affecting investment theses [2] Group 2 - The investing group associated with the analysis offers direct access to data analytics monitors, enhancing the research capabilities for investors [2] - There is no current stock or derivative position held by the analyst in any mentioned companies, indicating an unbiased perspective [2]

Financial Data and Key Metrics Changes - Third quarter revenue was $82.7 million, down from $92.5 million in the prior year, primarily due to lower flight equipment sales [9][31] - Adjusted EBITDA improved to $8.2 million compared to $1.9 million in the prior year, driven by stronger gross margin and lower operating expenses [12][36] - Net income was $0.5 million in the third quarter compared to a net loss of $0.1 million in the prior year [34] Business Line Data and Key Metrics Changes - The Asset Management segment reported sales of $50.4 million, down from $65.1 million in the prior year, with a 36.9% increase in sales excluding flight equipment [19][20] - The TechOps segment revenue increased 17.6% to $32.3 million compared to the prior year, driven by strong commercial demand [23] - The MRO business saw an 18% year-over-year growth, contributing significantly to overall performance [8] Market Data and Key Metrics Changes - The company faced challenges in acquiring feedstock due to OEM production delays, leading to higher asset pricing and a decrease in overall acquisition rates [21][22] - Year-to-date feedstock acquisitions totaled $42 million, below the annual target of $150 million, but sufficient inventory levels are maintained for the next 12 months [20][76] Company Strategy and Development Direction - The company is focused on expanding its lease pool and MRO facilities, with expectations of increased revenue and improved margins as expansion projects conclude [8][14] - The company is pursuing monetization opportunities for its 757 P2F conversion program, with enhanced customer interest noted [18][29] - The strategic approach emphasizes disciplined bidding for feedstock to avoid overpaying and ensure long-term profitability [55][79] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the underlying growth in the core business, driven by better feedstock availability and robust demand in the commercial aerospace sector [28][86] - The company anticipates significant near-term cash flow from monetizing existing feedstock inventory and increased contributions from MROs [41][86] - Management acknowledged the competitive landscape for feedstock acquisitions and the need for a disciplined approach to maintain profitability [79][80] Other Important Information - The company reported a substantial liquidity position of $103.5 million, including $9.8 million in cash and $93.7 million available on its revolving credit facility [38] - Insurance claims related to a fire at a facility are expected to be resolved before year-end, with claims totaling over $70 million [39][40] Q&A Session Summary Question: Status of AerAware customer onboarding - Management indicated that complexities in implementation for larger carriers are causing delays, but discussions are ongoing with multiple customers [42][43][44] Question: Competitive landscape for feedstock bids - Management noted competition from airlines, leasing companies, and new entrants like private equity, emphasizing the need for disciplined bidding [48][49][50] Question: Fourth quarter revenue expectations - Management stated that there is no expected seasonality in the fourth quarter, with revenue dependent on prior feedstock purchases [58][60] Question: MRO business revenue run rate - Management expects an increase of about $50 million in run rate from MRO expansion projects, with current EBITDA contribution estimated at $8 million to $10 million [61][64] Question: Timeline for new MRO projects - Management is actively soliciting customers for new MRO facilities and expects to ramp up business as customers become familiar with the new locations [66][70]

Revenue Performance - Total revenue for the three months ended September 30, 2024 decreased by $9.8 million or 10.6% compared to the same period in 2023, driven by a decrease of $14.6 million or 22.5% in Asset Management Solutions revenues, offset by an increase of $4.8 million or 17.6% in TechOps revenues [97]. - Revenue from the Asset Management Solutions segment decreased to $50.4 million for the three months ended September 30, 2024, due to a $11.9 million or 57.2% decrease in Aircraft revenue and a $2.7 million or 6.1% decrease in Engine revenue [99]. - TechOps revenue increased by $4.8 million or 17.6% to $32.3 million for the three months ended September 30, 2024, driven by higher contributions from component and landing gear repair activities [102]. - For the nine months ended September 30, 2024, total revenue increased by 4.3% to $250.3 million compared to $240.1 million in the same period in 2023 [108]. - Total revenue for the nine months ended September 30, 2024, increased by $10.2 million or 4.3% compared to the same period in 2023, driven by a $0.9 million increase in Asset Management Solutions and a $9.3 million increase in TechOps [109]. - Asset Management Solutions segment sales increased by $0.9 million or 0.6% to $151.5 million, with a $24.4 million increase in Engine revenue offset by a $23.4 million decrease in Aircraft revenue [110]. - TechOps revenue increased by $9.3 million or 10.4% to $98.9 million, primarily driven by higher MRO product sales [114]. Profitability - Gross profit for the Asset Management Solutions segment increased by $0.8 million or 4.1% to $19.3 million for the three months ended September 30, 2024, primarily due to higher margins on Flight Equipment sales [100]. - The gross profit margin for Engines improved to 39.3% for the three months ended September 30, 2024, up from 26.9% in the prior year, attributed to higher margins on Flight Equipment sales and leasing revenues [101]. - Gross profit in the Asset Management Solutions segment increased by $9.3 million or 19.5% to $57.3 million for the nine months ended September 30, 2024 [112]. Expenses - Selling, general and administrative expenses decreased by $3.7 million or 14.7% to $21.7 million for the three months ended September 30, 2024, mainly due to lower repair and maintenance and payroll-related costs [104]. - Selling, general and administrative expenses decreased by $8.3 million or 10.7% to $69.4 million for the nine months ended September 30, 2024 [116]. Interest and Tax - Interest expense, net increased to $1.8 million for the three months ended September 30, 2024, compared to $0.3 million in the prior year, primarily due to higher borrowings to support feedstock acquisitions [106]. - The effective tax rate for the three months ended September 30, 2024, was 13.0%, a significant decrease from 93.0% in the same period in 2023, primarily due to state income taxes and stock-based compensation impacts [107]. - The effective tax rate for the nine months ended September 30, 2024, was 5.2%, a significant decrease from 59.8% for the same period in 2023 [119]. Cash Flow - Net cash used in operating activities was $26.4 million for the nine months ended September 30, 2024, a decrease of $141.7 million compared to the same period in 2023 [125]. - Net cash used in investing activities was $11.5 million for the nine months ended September 30, 2024, compared to cash provided of $6.7 million in the same period for 2023 [126]. - Net cash provided by financing activities was $41.7 million for the nine months ended September 30, 2024, compared to $17.3 million in the same period for 2023 [127]. Financial Position - As of September 30, 2024, the company had $9.8 million in cash and cash equivalents and $78.5 million outstanding under the Revolving Credit Agreement [121]. - As of September 30, 2024, the Company had $78.5 million in outstanding variable rate borrowings under the Revolving Credit Agreement [142]. - A 10% increase in the average interest rate affecting the variable rate debt would raise the annual interest expense by $0.6 million [142]. - The Company primarily uses the U.S. dollar as its functional currency to mitigate foreign currency market risk [143]. - A hypothetical 10% devaluation of the U.S. dollar against foreign currencies would not have materially impacted the Company's financial position as of September 30, 2024 [143]. Valuation Estimates - The fair value determination of the Company's reporting units and goodwill relies on estimates such as revenue growth rates, profit margins, and discount rates, which are subject to change [140].

分组1 - AerSale Corporation (ASLE) reported quarterly earnings of $0.04 per share, missing the Zacks Consensus Estimate of $0.05 per share, and showing an earnings surprise of -20% [1] - The company posted revenues of $82.68 million for the quarter ended September 2024, missing the Zacks Consensus Estimate by 7.62%, and down from $92.48 million year-over-year [2] - AerSale shares have declined approximately 53.1% since the beginning of the year, contrasting with the S&P 500's gain of 24.3% [3] 分组2 - The current consensus EPS estimate for the coming quarter is $0.07 on revenues of $92.53 million, and for the current fiscal year, it is $0.20 on revenues of $349.67 million [7] - The Zacks Industry Rank for Aerospace - Defense Equipment is currently in the bottom 31% of over 250 Zacks industries, indicating potential underperformance compared to higher-ranked industries [8]

Revenue Performance - Revenue for Q3 2024 was $82.7 million, down from $92.5 million in Q3 2023, representing a decrease of 10.0% year-over-year[2] - Flight equipment sales totaled $22.6 million in Q3 2024, down from $44.8 million in the prior year, a decline of 49.6%[2] - Excluding flight equipment sales, revenue increased by 26.0% year-over-year to $60.1 million, driven by strong commercial demand[2] - Asset Management Solutions revenue decreased to $50.4 million in Q3 2024 from $65.1 million in Q3 2023, a decline of 22.7%[4] - TechOps revenue increased by 17.6% to $32.3 million in Q3 2024 from $27.4 million in Q3 2023[5] Profitability Metrics - Adjusted Net Income increased to $1.8 million in Q3 2024, compared to $0.9 million in Q3 2023, reflecting a growth of 100.0%[9] - Adjusted EBITDA rose to $8.2 million in Q3 2024, up from $1.9 million in Q3 2023, indicating a significant increase of 331.6%[11] - Reported Net Income for Q3 2024 was $509,000, representing 0.6% of total revenue, compared to a loss of $148,000 in Q3 2023[22] - Adjusted EBITDA for Q3 2024 reached $8,249,000, accounting for 10.0% of total revenue, significantly up from $1,866,000 or 2.0% in Q3 2023[22] - Adjusted Net Income for the nine months ended September 2024 was $4,745,000, or 2.0% of total revenue, compared to $3,437,000 or 1.4% in the same period of 2023[22] Liquidity and Financial Position - The company ended the quarter with $103.5 million in liquidity, including $9.8 million in cash and $93.7 million available on its revolving credit facility[12] - Total current assets increased to $339,736,000 as of September 30, 2024, up from $264,774,000 at December 31, 2023, representing a 28.3% increase[20] - Cash and cash equivalents rose to $9,787,000 at the end of the period, compared to $5,873,000 at the beginning of the period, marking a 66.5% increase[21] - Total liabilities increased to $149,932,000 as of September 30, 2024, compared to $108,923,000 at December 31, 2023, a rise of 37.7%[20] - Total stockholders' equity increased to $451,524,000 as of September 30, 2024, from $445,015,000 at December 31, 2023, a slight increase of 1.1%[20] Operational Efficiency - Gross margin improved to 28.6% in Q3 2024, compared to 25.4% in the same period last year[6] - Income from operations was $2.0 million in Q3 2024, compared to a loss of $1.9 million in Q3 2023[7] - Net cash used in operating activities was $26,354,000 for the nine months ended September 30, 2024, compared to $168,051,000 for the same period in 2023, showing a significant reduction in cash outflow[21] - The company reported a depreciation and amortization expense of $10,945,000 for the nine months ended September 30, 2024, compared to $7,585,000 for the same period in 2023, indicating a 44.5% increase[21] Inventory and Demand Outlook - Inventory of aircraft, airframes, engines, and parts decreased to $109,706,000 as of September 30, 2024, from $151,398,000 at December 31, 2023, a decline of 27.6%[20] - The company anticipates an additional $45 million in inventory from letters of intent during the year, indicating strong demand for its USM business[23] - AerSale is well positioned to capitalize on current market dynamics and asset availability, suggesting a positive growth trajectory[23] - The expected operating capacity of MRO facilities is anticipated to meet increasing demand for services, reflecting confidence in future performance[23] Shareholder Returns and Compensation - The company reported a basic earnings per share of $0.01 for Q3 2024, compared to a loss per share of $0.00 in Q3 2023[22] - The company has experienced a significant increase in stock-based compensation, with Q3 2024 figures at $1,216,000, or 1.5% of total revenue[22] Risk Factors - AerSale's forward-looking statements highlight potential risks and uncertainties that could impact actual results, emphasizing the need for cautious interpretation of projections[24]

Core Viewpoint - AerSale's stock remains a buy despite disappointing progress on the AerAware rollout, with the company's future growth heavily reliant on this product [1][10][11] Financial Performance - In Q2, AerSale reported a year-on-year revenue increase, recovering from a decline in Q1, with total revenues reaching $77.1 million, up from $69.4 million [2][3][11] - Asset management solutions revenue increased by 12.8%, driven by higher flight equipment sales and lease revenues, while TechOps revenue grew by 9.4% [3][6] - Gross profit rose by 7.8%, but this was below the revenue growth rate, indicating margin contraction primarily due to lower demand for heavy MRO services [4][11] Segment Analysis - USM (used serviceable parts) sales increased by 19.5% year-on-year, while whole asset sales remained stable [6] - Engineering solutions sales surged from $211,000 to $1.7 million, attributed to increased AerSafe kit deliveries [6] - Leasing revenues decreased by 23% due to a shrinking lease portfolio, while product revenues grew by 15.1% and services revenues increased by 3.9% [6] AerAware Product Rollout - The AerAware product has faced significant delays, with no clear timeline for customer shipments despite receiving certification in December 2023 [8][9] - Management anticipates that deliveries could start in six months or longer, but there is no established rollout plan, which raises concerns about future revenue contributions [9][10] Market Outlook - The price target for AerSale stock has been significantly reduced from $18.70 to $6.70, reflecting a more cautious outlook on the company's performance without AerAware [10] - EBITDA estimates for 2024 have been cut by 15%, with expectations of cash burn this year, although there is potential for upside in subsequent years if MRO capacity expands and AerAware is successfully launched [10][11]

Core Viewpoint - AerSale's quarterly results significantly underperformed expectations, leading to a 10% drop in share price as investors reacted negatively to the news [1] Financial Performance - AerSale reported a loss of $0.07 per share on revenue of $77.1 million, falling short of Wall Street's expectations of a $0.10 profit on sales of $87 million [2] - The revenue shortfall was attributed to fewer asset sales and increased investment in maintenance facilities [2] Product Development - AerSale's AerAware technology, aimed at enhancing pilot vision in older cockpits, has not yet secured initial orders, although discussions are ongoing with four potential airline customers [2] - AerAware received FAA certification in December 2023, which investors had hoped would lead to a new source of higher-margin revenue [2] Market Conditions - The current market for used airplanes, engines, and aerospace parts is challenging for both buyers and sellers, impacting AerSale's performance [2] - The company is taking a disciplined approach to purchasing in a tight market, which has contributed to the revenue shortfall [3] Future Outlook - Despite the recent disappointments, AerSale's core business is showing signs of recovery, particularly with strong engine work reported in July [4] - The demand for aircraft maintenance and spare parts is expected to remain robust, providing a positive outlook for the company moving forward [4] - AerSale has 150 completed AerAware kits ready for shipment, indicating potential future revenue once deals are finalized [3]

AERSALE CORPORATION Investor Presentation Important notices and disclaimers Forward-Looking Statements This presentation includes "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. AerSale's actual results may differ from its expectations, estimates and projections and consequently, you should not rely on these forward-looking statements as predictions of future events. Words such as "expect," "estimate," "project," "budge ...

AerSale Corporation. (NASDAQ:ASLE) Q2 2024 Earnings Conference Call August 7, 2024 4:30 PM ET Company Participants Kristen Gallagher - HR Director Nicolas Finazzo - Chairman and Chief Executive Officer Martin Garmendia - Chief Financial Officer Conference Call Participants Bert Subin - Stifel Ken Herbert - RBC Capital Markets Pete Osterland - Truist Securities Operator Good day and welcome to the Aerosol Second Quarter 2024 Earnings Conference Call. All participants will be in a listen-only mode. [Operator ...