Financial Performance - For the three months ended June 30, 2023, total revenues increased by 145% to $274.3 million compared to $112.1 million in the same period of 2022[145]. - Net income attributable to shareholders from continuing operations for the three months ended June 30, 2023, was $46.4 million, compared to $11.4 million in the same period of 2022, reflecting a significant increase of 307%[145]. - Total revenues increased by $162.3 million for the three months ended June 30, 2023, primarily due to an increase in asset sales revenue, aerospace products revenue, and lease income[148]. - Net income from continuing operations increased by $9.1 million for the three months ended June 30, 2023, and by $217.4 million for the six months ended June 30, 2023[163]. - Adjusted EBITDA increased by $2.3 million and $85.0 million for the three and six months ended June 30, 2023, respectively[165]. - Net income attributable to shareholders from continuing operations was $28.6 million for the three months ended June 30, 2023, compared to $15.1 million for the same period in 2022, reflecting a $13.5 million increase[182]. Revenue Breakdown - Lease income for the three months ended June 30, 2023, was $59.5 million, up from $39.6 million in the same period of 2022, representing a 50% increase[145]. - Aerospace products revenue surged by 157% to $68.1 million for the three months ended June 30, 2023, compared to $26.5 million in the same period of 2022[145]. - Asset sales revenue increased by $101.5 million, driven by higher sales of commercial aircraft and engines in the Aviation Leasing segment[148]. - Aerospace products revenue rose by $41.6 million, mainly from increased sales of CFM56-7B and CFM56-5B engines and related components[149]. - Lease income increased by $19.9 million, attributed to a higher number of aircraft placed on lease and increased activity in the Offshore Energy business[149]. Expenses and Costs - Total expenses increased by $88.4 million, primarily due to higher cost of sales, operating expenses, and management fees[154]. - Cost of sales rose by $89.4 million, reflecting increased asset sales and aerospace products sales[154]. - Total expenses for the three months ended June 30, 2023, increased by $68.6 million to $114.0 million compared to $45.4 million in the same period of 2022[173]. - Operating expenses decreased by $46.9 million primarily due to reductions in provision for credit losses and other expenses related to sanctions on Russian airlines[179]. - Total expenses rose by $20.4 million (approximately 112.3%) for the three months ended June 30, 2023, primarily due to a $19.8 million increase in cost of sales[184]. Asset and Equity Information - Total consolidated assets as of June 30, 2023, were $2.5 billion, with total equity of $91.3 million[131]. - As of June 30, 2023, the Aviation Leasing segment owned and managed 344 aviation assets, including 97 commercial aircraft and 247 engines[166]. - As of June 30, 2023, the insured value of aircraft and engines remaining in Ukraine and Russia is approximately $243.0 million[133]. Cash Flow and Liquidity - Cash flows provided by operating activities increased by $115.8 million, primarily due to a net income increase of $304.0 million and changes in working capital of $50.9 million[202]. - Cash used for investments was $380.8 million during the six months ended June 30, 2023, compared to $457.9 million in the same period of 2022[201]. - The company expects to meet future short-term liquidity requirements through cash on hand, unused borrowing capacity, or future financings[209]. Interest and Debt Management - As of June 30, 2023, the company had outstanding principal and interest payment obligations of $2.2 billion and $0.6 billion, respectively[206]. - Interest expense decreased by $9.4 million, attributed to a reduction in average outstanding debt of approximately $581.0 million[194]. - A hypothetical 100-basis point increase/decrease in the variable interest rate on borrowings would result in an increase or decrease of approximately $1.5 million in interest expense over the next 12 months[217]. Corporate Actions - The company completed a spin-off of FTAI Infrastructure on August 1, 2022, which resulted in a dividend of $730.3 million used to repay outstanding borrowings[136]. - The merger with FTAI LLC on November 10, 2022, resulted in FTAI Aviation Ltd. becoming a Cayman Islands exempted company[138].
FTAI AVIATION(FTAIM) - 2023 Q2 - Quarterly Report