Revenue Performance - Revenue for Q3 2024 increased 13.2% year-over-year to $1,244.6 million, driven by strong performance in commercial aerospace and business aviation markets[2] - Year-to-date revenue for the nine months ended September 30, 2024, was $3,827.5 million, a 12.4% increase compared to the prior year[11] - Revenue for the three months ended September 30, 2024, was $1,244,627, an increase of 13.2% compared to $1,099,441 for the same period in 2023[29] - Revenue from external customers in Engine Services for the three months ended September 30, 2024, was $1,109,804 thousand, compared to $976,896 thousand in the same period of 2023, indicating a growth of approximately 13.5%[34] - Total segment revenue for the nine months ended September 30, 2024, reached $3,827,548 thousand, compared to $3,827,548 thousand in the same period of 2023[33] Net Income and Profitability - Net income for Q3 2024 was $16.4 million, with a net income margin of 1.3%, an increase of 3.0 percentage points from the prior year[5] - Net income for the three months ended September 30, 2024, was $16,436, compared to a net loss of $17,933 for the same period in 2023[29] - Net income for the nine months ended September 30, 2024, was $25,027 thousand, a significant improvement from a net loss of $30,502 thousand in the same period of 2023[30] - The company reported a net loss of $30.5 million for the nine months ended September 30, 2023, compared to a net income of $25.0 million for the same period in 2024[37] Adjusted EBITDA - Adjusted EBITDA rose 26.0% year-over-year to $168.4 million, with an adjusted EBITDA margin of 13.5%, up 137 basis points compared to the previous year[6] - Adjusted EBITDA is defined as net income before interest, taxes, depreciation, and amortization, adjusted for non-cash and non-recurring items, providing a clearer view of operational performance[26] - Segment Adjusted EBITDA for the nine months ended September 30, 2024, was $562,164 thousand, reflecting a strong operational performance[33] - Adjusted EBITDA margin for the nine months ended September 30, 2023, was 12.5%, an increase from 12.2% in the previous year[37] Capital Expenditures and Investments - Capital expenditures for Q3 2024 were $25.3 million, reflecting continued investment in growth initiatives, including the LEAP-1A/-1B program[6] - The company incurred capital expenditures of $(70,422) thousand for the nine months ended September 30, 2024, compared to $(35,367) thousand in the same period of 2023, reflecting increased investment in growth initiatives[30] Assets and Liabilities - Total assets increased to $6,059,146 as of September 30, 2024, compared to $5,759,402 as of December 31, 2023, reflecting a growth of 5.2%[27] - Total liabilities rose to $4,895,284 as of September 30, 2024, up from $4,612,690 as of December 31, 2023, indicating an increase of 6.1%[27] - Cash decreased to $51,265 as of September 30, 2024, from $57,982 as of December 31, 2023, a decline of 11.8%[27] - Accounts receivable increased to $621,298 as of September 30, 2024, compared to $518,334 as of December 31, 2023, representing a growth of 19.9%[27] Corporate Actions and Strategic Initiatives - The company completed a $1.7 billion IPO, generating net proceeds of approximately $1.2 billion, which were used to pay down debt[3] - The acquisition of Aero Turbine Inc. was completed for a total purchase price of up to $141.0 million, expected to contribute $25 million of adjusted EBITDA in 2025[14][15] - The company expects annual interest savings of over $130 million following the refinancing of its capital structure post-IPO[17] - The company is focusing on the business transformation of the LEAP 1A/1B engine line and expanding CFM56 capabilities, indicating a strategic push towards innovation and market expansion[32] - The company is expanding its CFM56 capabilities into Dallas, Texas, as part of its new product industrialization efforts[35] Expenses - Selling, general, and administrative expenses increased to $62,895 for the three months ended September 30, 2024, compared to $53,020 for the same period in 2023, an increase of 18.5%[29] - Corporate costs, including executive and staff functions, amounted to $57,797 thousand, impacting overall profitability[33] - The company incurred business transformation costs of $5.4 million related to the LEAP and CFM projects during the nine months ended September 30, 2023[36] - Integration costs and severance for the nine months ended September 30, 2023, totaled $2.6 million[37] - Interest expense for the nine months ended September 30, 2023, was $230.5 million, reflecting ongoing debt obligations[36]
StandardAero, Inc.(SARO) - 2024 Q3 - Quarterly Results