AerSale Corporation has reported its results for the first quarter ended March 31, 2021, which demonstrated the aviation specialists had overall revenues of $58.4 million. This includes $13.8 million of flight equipment sales consisting of one B737-800 airframe and two Pratt & Whitney PW4000 engines sold to three different freighter operators, and one Pratt & Whitney PW4000 sold for parts.
AerSale serves airlines operating large jets manufactured by Boeing, Airbus and McDonnell Douglas and is dedicated to providing integrated aftermarket services and products designed to help aircraft owners and operators to realize significant savings in the operation, maintenance and monetization of their aircraft, engines, and components.
Revenue performance continued to improve during the period, with near capacity MRO maintenance schedules, at capacity storage facilities, and contributions from select engine sales. Offsetting this strength was softer demand for USM parts from the continued effect of COVID-19 on AerSale’s commercial customers and the conclusion of three B747 lease programs that contributed to the prior-year results.
First Quarter 2021 Highlights
- Revenue of $58.4 million.
- GAAP net income of $10.0 million, or 17.1% of sales.
- Adjusted EBITDA of $16.5 million, or 28.3% of sales.
- Continued strong demand for freighters and improving commercial activity.
- AerAware flight testing by FAA in progress.
- Finalizing the sale/lease of 18 Boeing 757s.
- 2021 guidance unchanged: revenue of $340 - $360 million and adjusted EBITDA of $60 - $70 million
Nicolas Finazzo, AerSale’s Chief Executive Officer, commented, “We are performing well and as expected in our first full quarter as a public company. The gradual recovery in commercial markets continues to materialize, with our aircraft MRO services operating at near capacity as airlines recommission parked aircraft. We are also making meaningful progress on our 24 aircraft B757 fleet acquisition with 18 aircraft contracted or under letters of intent for sale or lease, including four Passenger-to-Freighter conversions that we expect to complete in 2021 at our Goodyear facility. We believe that this positions us well for accelerating performance throughout the balance of 2021, particularly in the second half.”
Finazzo added, “We are proud of the demonstrated resilience of our business model in a dynamic and rapidly changing environment. Our multidimensional and fully integrated business model was purpose built for consistent performance throughout the cycle. These effects are evident in our ability to service all aspects of customer needs throughout the cycle and our ability to quickly pivot to higher demand categories. We are grateful for the dedication of our employees and remain committed to driving value to all of our stakeholders.”
First Quarter 2021 Financial Results |
| |
AERSALE CORPORATION |
CONSOLIDATED BALANCE SHEET |
(in thousands, except per share data) |
| | | | | | |
| | March 31, | | December 31, |
Assets | | 2021 | | 2020 |
| | | (Unaudited) | | | |
Current assets: | | | | | | |
Cash and cash equivalents | | $ | 19,609 | | $ | 29,317 |
Accounts receivable, net of allowance for doubtful accounts of $1,442 and $1,652 as of March 31, 2021 and December 31, 2020 | | | 48,510 | | | 50,215 |
Inventory: | | | | | | |
Aircraft, airframes, engines, and parts, net | | | 99,299 | | | 85,192 |
Advance vendor payments | | | 10,719 | | | 6,205 |
Due from related party | | | — | | | 474 |
Deposits, prepaid expenses, and other current assets | | | 5,609 | | | 7,560 |
Total current assets | | | 183,746 | | | 178,963 |
Fixed assets: | | | | | | |
Aircraft and engines held for lease, net | | | 82,332 | | | 86,844 |
Property and equipment, net | | | 7,771 | | | 7,839 |
Inventory: | | | | | | |
Aircraft, airframes, engines, and parts | | | 65,943 | | | 55,463 |
Deferred income taxes | | | 5,992 | | | 5,708 |
Deferred financing costs, net | | | 1,268 | | | 367 |
Deferred customer incentives and other assets, net | | | 271 | | | 271 |
Due from related party | | | 5,421 | | | 5,450 |
Goodwill | | | 19,860 | | | 19,860 |
Other intangible assets, net | | | 27,839 | | | 28,364 |
Total assets | | $ | 400,443 | | $ | 389,129 |
| | | | | | |
Current liabilities: | | | | | | |
Accounts payable | | $ | 19,221 | | $ | 16,364 |
Accrued expenses | | | 8,207 | | | 8,576 |
Income tax payable | | | 1,329 | | | 1,324 |
Lessee and customer purchase deposits | | | 1,480 | | | 2,820 |
Deferred revenue | | | 818 | | | 2,595 |
Total current liabilities | | | 31,055 | | | 31,679 |
| | | | | | |
Long-term lease deposits | | | 2,485 | | | 1,145 |
Maintenance deposit payments and other liabilities | | | 3,744 | | | 3,664 |
Warrant Liability | | | 1,410 | | | 1,186 |
Total liabilities | | $ | 38,694 | | $ | 37,674 |
Commitments and contingencies | | | | | | |
Stockholders’ equity: | | | | | | |
Common stock, $0.0001 par value. Authorized 200,000,000 shares; issued and outstanding 42,949,261 shares | | | 4 | | | 4 |
Additional paid-in capital | | | 292,869 | | | 292,593 |
Retained earnings | | | 68,876 | | | 58,858 |
Total equity | | | 361,749 | | | 351,455 |
Total liabilities and stockholders’ equity | | $ | 400,443 | | $ | 389,129 |
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