AerSale(ASLE)2025-05-08 20:08Revenue Performance - Total revenue for the three months ended March 31, 2025, decreased by $24.8 million, or 27.4%, compared to the same period in 2024, driven by a decrease of $20.0 million, or 33.8%, in Asset Management Solutions and a decrease of $4.7 million, or 15.1%, in TechOps[105]. - Revenue from the Asset Management Solutions segment decreased by $20.0 million, or 33.8%, to $39.2 million, with a $11.1 million, or 25.8%, decrease in Engine revenue and a $9.0 million, or 55.0%, decrease in Aircraft revenue[106]. - TechOps revenue decreased by $4.7 million, or 15.1%, to $26.6 million, primarily due to lower sales volume in the Goodyear, Arizona facility[109]. Profitability - Gross profit for the Asset Management Solutions segment decreased by $10.6 million, or 46.8%, to $12.0 million for the three months ended March 31, 2025[107]. - Gross profit margin for Aircraft decreased to 21.4% for the three months ended March 31, 2025, from 29.6% in the prior year, while Engine gross profit margin decreased to 32.9% from 41.5%[108]. Expenses - Selling, general and administrative expenses increased by $0.5 million, or 2.0%, to $24.6 million for the three months ended March 31, 2025[111]. - Interest expense increased to $1.2 million for the three months ended March 31, 2025, compared to $0.9 million in the prior year period[113]. Cash Flow and Liquidity - The company used cash in operations of $45.2 million for the three months ended March 31, 2025[117]. - Net cash used in operating activities increased to $45.2 million for the three months ended March 31, 2025, compared to $21.5 million for the same period in 2024, reflecting an increase of $23.7 million[121]. - Net cash used in investing activities was $3.5 million for the three months ended March 31, 2025, compared to cash provided of $0.2 million in the same period for 2024[122]. - Net cash provided by financing activities was $48.8 million for the three months ended March 31, 2025, compared to $18.0 million for the same period in 2024[123]. - As of March 31, 2025, the company had $4.7 million in cash and cash equivalents and $133.1 million outstanding under the Revolving Credit Agreement[115][117]. - As of March 31, 2025, the company had $133.1 million outstanding under the Revolving Credit Agreement and $44.2 million of availability[127]. Shareholder Actions - The company repurchased 6,428,571 shares of common stock at a price of $7.00 per share for a total consideration of $45.0 million on March 18, 2025[120]. Debt and Compliance - The company had $1.9 million outstanding under the CIBC Equipment Loan as of March 31, 2025[129]. - The company was in compliance with its debt covenants for both the Revolving Credit Agreement and the CIBC Equipment Loan as of March 31, 2025[127][129]. - A ten percent increase in the average interest rate affecting the company's variable rate debt would increase annual interest expense by $0.5 million[134]. Taxation - The effective tax rate for the three months ended March 31, 2025, was 12.0%, compared to (6.8%) for the same period in 2024[114]. Commitments and Estimates - The company entered into a purchase commitment valued at $19.8 million for the acquisition of technical equipment for manufacturing the AerAwareTM product, expected to be satisfied in 2026[131]. - There were no material changes in the company's critical accounting estimates and policies during the three months ended March 31, 2025[132].