AerSale(US:ASLE)2024-11-07 21:06Revenue 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]