Financial Performance - Lease income for the three months ended September 30, 2024, was $65.45 million, an increase of 43.5% from $45.62 million in the same period of 2023[158]. - Aerospace products revenue surged to $303.47 million for the three months ended September 30, 2024, compared to $118.68 million in 2023, reflecting a growth of 155.6%[158]. - Total revenues for the nine months ended September 30, 2024, reached $1.236 billion, up 44% from $858.16 million in 2023[158]. - Net income attributable to shareholders for the three months ended September 30, 2024, was $78.15 million, a significant increase from $32.97 million in 2023[158]. - Net income attributable to shareholders increased by $45.2 million for the three months ended September 30, 2024, and decreased by $219.2 million for the nine months ended September 30, 2024 compared to the prior year[164]. - Total revenues increased by $174.7 million for the three months ended September 30, 2024, driven by a $184.8 million increase in aerospace products revenue[160]. - Adjusted EBITDA increased by $77.8 million for the three months ended September 30, 2024, and by $175.1 million for the nine months ended September 30, 2024[165]. - Aerospace products revenue increased by $441.2 million for the nine months ended September 30, 2024, primarily due to a $387.2 million increase in engine and module sales[161]. - Net income attributable to shareholders increased by $52.5 million (approximately 127.0%) for the three months ended September 30, 2024, compared to the same period in 2023[183]. - Adjusted EBITDA increased by $58.5 million (approximately 135.2%) for the three months ended September 30, 2024, compared to the prior year[184]. Expenses and Costs - Total expenses for the three months ended September 30, 2024, were $316.52 million, an increase of 53.4% from $206.41 million in 2023[158]. - Total expenses increased by $110.1 million for the three months ended September 30, 2024, with a significant increase in costs associated with aerospace products[161]. - Total expenses increased by $128.5 million (approximately 168.3%) for the three months ended September 30, 2024, largely due to a $128.6 million rise in cost of sales[181]. - Depreciation and amortization expense increased by $11.3 million in Q3 2024, driven by a higher number of assets owned and on lease[171]. - Acquisition and transaction expenses increased by $13.3 million, primarily due to higher professional fees related to strategic transactions[166]. - Acquisition and transaction expenses rose by $2.4 million, primarily due to increased legal fees related to strategic transactions[171]. - Interest expense increased by $17.8 million, reflecting an increase in average debt outstanding of approximately $913.0 million[166]. - The provision for income taxes increased by $3.6 million during the three months ended September 30, 2024, primarily due to increased income from leasing and aerospace activities[162]. - The provision for income taxes rose by $3.3 million (approximately 291.2%) for the three months ended September 30, 2024, due to increased income from aerospace activities[182]. Asset Management - Total consolidated assets as of September 30, 2024, were $3.7 billion, with total equity of $118.5 million[148]. - The company owns and manages 393 aviation assets, including 96 commercial aircraft and 297 engines, as of September 30, 2024[167]. - As of September 30, 2024, the company had 86 commercial aircraft and 184 engines leased, with an aviation equipment utilization rate of approximately 79%[168]. - The insured value of aircraft and engines remaining in Russia is approximately $210.7 million, with uncertain recovery timing[152]. - The company acquired LMCES in September 2024 and QuickTurn in December 2023 to enhance its aerospace products segment and establish permanent manufacturing capabilities[176]. - The company holds a 25% interest in the Advanced Engine Repair JV, focusing on developing cost-saving programs for engine repairs[176]. Cash Flow and Liquidity - Cash used for investments was $1.0 billion in the nine months ended September 30, 2024, compared to $562.8 million in the same period of 2023[1]. - Net cash used in operating activities increased by $262.9 million, reflecting a net loss of $219.2 million and adjustments including a gain on sale of assets of $133.8 million[1]. - Net cash used in investing activities rose by $251.6 million, primarily due to business acquisitions totaling $143.6 million and deposits for aircraft acquisitions of $152.2 million[2]. - Net cash provided by financing activities increased by $535.9 million, driven by $1.6 billion in proceeds from debt[3]. - The company has sufficient liquidity to meet cash needs and is taking actions to preserve adequate liquidity[195]. - Principal sources of liquidity include revenues from aviation assets, proceeds from borrowings, and asset sales[197]. - The company expects to meet future short-term liquidity requirements through cash on hand and unused borrowing capacity[4]. - A hypothetical 100-basis point increase in variable interest rates would result in an increase of approximately $1.5 million in interest expense over the next 12 months[4]. - Distributions to shareholders, including cash dividends, increased to $115.8 million in 2024 from $113.2 million in 2023[1]. Impairments and Charges - The company recognized an impairment charge of $120 million due to the impact of sanctions related to Russia's invasion of Ukraine[151]. - Net loss increased by $11.4 million in Q3 2024 and $333.8 million for the nine months, primarily due to the changes noted above[193]. - The Internalization fee to affiliate increased by $300.0 million, which is expected to lead to savings in operational costs[190].
FTAI AVIATION(FTAIM) - 2024 Q3 - Quarterly Report