AerSale(ASLE) - 2023 Q4 - Annual Results

Financial Performance - Full year 2023 revenue was $334.5 million, a decrease of 18.1% from $408.5 million in 2022[12] - GAAP net loss for 2023 was $5.6 million compared to a net income of $43.9 million in 2022[15] - Adjusted EBITDA for 2023 was $12.3 million, or 3.6% of sales, down from $87.4 million, or 21.4% of sales in 2022[15] - Fourth quarter 2023 revenue was $94.4 million, including $47.4 million from flight equipment sales, compared to $95.1 million in Q4 2022[7] - Total revenue for Q4 2023 was $94,422 thousand, a slight decrease of 0.7% from $95,131 thousand in Q4 2022[25] - Gross profit decreased to $24,416 thousand in Q4 2023, down 28.5% from $34,222 thousand in Q4 2022[25] - Net loss for Q4 2023 was $2,732 thousand compared to a net income of $9,193 thousand in Q4 2022[25] - Basic earnings per share for Q4 2023 was $(0.05), a decline from $0.18 in Q4 2022[25] - The company reported a net loss of $5,563,000 for the year ended December 31, 2023, compared to a net income of $43,861,000 for the previous year[29] - Adjusted EBITDA for the twelve months ended December 31, 2023, was $12,279,000, representing 3.6% of total revenue, down from $87,436,000 or 21.4% in the previous year[32] - The company reported a basic loss per share of $(0.11) for the twelve months ended December 31, 2023, compared to earnings of $0.85 in the previous year[32] Revenue Sources - Asset Management revenue for 2023 was $215.2 million, down 22.5% from $277.6 million in 2022[13] - Technical Operations revenue increased by 10.0% year-over-year in Q4 2023, reaching $29.8 million[8] - The company reported a total cost of sales of $70,006 thousand in Q4 2023, an increase of 15.0% from $60,909 thousand in Q4 2022[25] Cash Flow and Assets - Cash used in operating activities was $174,150,000 for the year ended December 31, 2023, a significant increase from $113,000 in the prior year[29] - The company experienced a decrease in cash and cash equivalents, ending the period with $5,873,000 compared to $147,188,000 at the beginning of the period[29] - Total current assets decreased to $264,774 thousand as of December 31, 2023, down from $333,556 thousand as of December 31, 2022[27] - Total liabilities increased to $108,923 thousand as of December 31, 2023, compared to $86,599 thousand as of December 31, 2022[27] - Accounts receivable increased to $31,239 thousand as of December 31, 2023, up from $28,273 thousand as of December 31, 2022[27] - The company had a significant increase in accounts payable, which rose to $8,768,000 from $1,164,000 in the previous year[29] Operational Developments - AerAware™ received FAA certification, marking a significant advancement in flight safety technology[3] - The company anticipates delayed flight equipment sales to occur in the first half of 2024, which will positively impact future performance[2] - AerSale has ceased providing numerical full-year guidance due to the volatility in flight equipment sales but maintains a positive outlook for 2024[17] - AerSale anticipates closing remaining flight equipment sales in 2024, indicating a positive outlook for future revenue generation[33] - The company expects increased demand for Used Serviceable Material (USM) parts, positioning itself favorably within the market[33] - AerSale projects enhanced operating capacity at its MRO facilities, particularly at the Goodyear, Arizona location, which is expected to increase third-party work and revenue[33] - The company believes that the AerAware™ technology will see broad adoption and significantly contribute to long-term performance[33] - The company is focused on integrated aftermarket services, including Aircraft & Component MRO and Engineered Solutions, to enhance operational efficiency for clients[35] Market Outlook - AerSale expresses a bullish outlook for 2024 and beyond, driven by an improving commercial aerospace market[33]