☑ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Cayman Islands | 98-1420784 | |||||||||||||||||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
1345 Avenue of the Americas, 45th Floor | New York | NY | 10105 | |||||||||||||||||
(Address of principal executive offices) | (Zip Code) |
Securities registered pursuant to Section 12(b) of the Act: | ||||||||||||||
Title of each class: | Trading Symbol: | Name of exchange on which registered: | ||||||||||||
Ordinary shares, $0.01 par value per share | FTAI | The Nasdaq Global Select Market | ||||||||||||
8.25% Fixed-to-Floating Rate Series A Cumulative Perpetual Redeemable Preferred Shares | FTAIP | The Nasdaq Global Select Market | ||||||||||||
8.00% Fixed-to-Floating Rate Series B Cumulative Perpetual Redeemable Preferred Shares | FTAIO | The Nasdaq Global Select Market | ||||||||||||
8.25% Fixed-Rate Reset Series C Cumulative Perpetual Redeemable Preferred Shares | FTAIN | The Nasdaq Global Select Market | ||||||||||||
9.50% Fixed-Rate Reset Series D Cumulative Perpetual Redeemable Preferred Shares | FTAIM | The Nasdaq Global Select Market |
Large accelerated filer | Accelerated filer | ||||||||||||||||
Non-accelerated filer | Smaller reporting company | ☐ | |||||||||||||||
Emerging growth company | ☐ |
PART I - FINANCIAL INFORMATION | ||||||||
Item 1. | ||||||||
Item 2. | ||||||||
Item 3. | ||||||||
Item 4. | ||||||||
PART II - OTHER INFORMATION | ||||||||
Item 1. | ||||||||
Item 1A. | ||||||||
Item 2. | ||||||||
Item 3. | ||||||||
Item 4. | ||||||||
Item 5. | ||||||||
Item 6. |
(Unaudited) | |||||||||||||||||
Notes | September 30, 2023 | December 31, 2022 | |||||||||||||||
Assets | |||||||||||||||||
Cash and cash equivalents | 2 | $ | 52,879 | $ | 33,565 | ||||||||||||
Restricted cash | 2 | — | 19,500 | ||||||||||||||
Accounts receivable, net | 107,825 | 99,443 | |||||||||||||||
Leasing equipment, net | 4 | 1,924,198 | 1,913,553 | ||||||||||||||
Property, plant, and equipment, net | 13,454 | 10,014 | |||||||||||||||
Investments | 5 | 39,868 | 22,037 | ||||||||||||||
Intangible assets, net | 6 | 41,471 | 41,955 | ||||||||||||||
Inventory, net | 2 | 274,832 | 163,676 | ||||||||||||||
Other assets | 2 | 179,259 | 125,834 | ||||||||||||||
Total assets | $ | 2,633,786 | $ | 2,429,577 | |||||||||||||
Liabilities | |||||||||||||||||
Accounts payable and accrued liabilities | $ | 108,579 | $ | 86,452 | |||||||||||||
Debt, net | 7 | 2,279,330 | 2,175,727 | ||||||||||||||
Maintenance deposits | 2 | 61,497 | 78,686 | ||||||||||||||
Security deposits | 2 | 39,901 | 32,842 | ||||||||||||||
Other liabilities | 49,417 | 36,468 | |||||||||||||||
Total liabilities | $ | 2,538,724 | $ | 2,410,175 | |||||||||||||
Commitments and contingencies | 14 | ||||||||||||||||
Equity | |||||||||||||||||
Ordinary shares ($0.01 par value per share; 2,000,000,000 shares authorized; 100,238,075 and 99,716,621 shares issued and outstanding as of September 30, 2023 and December 31, 2022, respectively) | $ | 1,002 | $ | 997 | |||||||||||||
Preferred shares ($0.01 par value per share; 200,000,000 shares authorized; 15,920,000 and 13,320,000 shares issued and outstanding as of September 30, 2023 and December 31, 2022, respectively) | 159 | 133 | |||||||||||||||
Additional paid in capital | 293,512 | 343,350 | |||||||||||||||
Accumulated deficit | (200,145) | (325,602) | |||||||||||||||
Shareholders' equity | 94,528 | 18,878 | |||||||||||||||
Non-controlling interest in equity of consolidated subsidiaries | 534 | 524 | |||||||||||||||
Total equity | 95,062 | 19,402 | |||||||||||||||
Total liabilities and equity | $ | 2,633,786 | $ | 2,429,577 | |||||||||||||
(Unaudited) September 30, | December 31, | ||||||||||
Notes | 2022 | 2021 | |||||||||
Assets | |||||||||||
Cash and cash equivalents | 2 | $ | 15,597 | $ | 2,158 | ||||||
Accounts receivable, net | 2 | 82,877 | 121,257 | ||||||||
Leasing equipment, net | 3 | 1,559,575 | 1,714,136 | ||||||||
Finance leases, net | 4 | 7,094 | 7,583 | ||||||||
Investments | 5 | 22,280 | 22,917 | ||||||||
Intangible assets, net | 6 | 29,416 | 30,962 | ||||||||
Inventory, net | 2 | 160,019 | 100,308 | ||||||||
Other assets | 2 | 141,294 | 97,531 | ||||||||
Total assets | $ | 2,018,152 | $ | 2,096,852 | |||||||
Liabilities | |||||||||||
Accounts payable and accrued liabilities | $ | 26,982 | $ | 32,058 | |||||||
Management fees payable to affiliate | 11 | 46,095 | 43,477 | ||||||||
Loans payable to affiliate | 7 | 27,090 | 25,181 | ||||||||
Maintenance deposits | 2 | 51,430 | 106,164 | ||||||||
Security deposits | 2 | 25,905 | 38,639 | ||||||||
Other liabilities | 47,383 | 31,274 | |||||||||
Total liabilities | $ | 224,885 | $ | 276,793 | |||||||
Commitments and contingencies | 14 | ||||||||||
Equity | |||||||||||
Ordinary shares ($1.00 par value per share; 50,000 shares authorized; 105.2 and 100.0 shares issued and outstanding as of September 30, 2022 and December 31, 2021, respectively) | — | — | |||||||||
Additional paid in capital | 1,087,534 | 1,139,628 | |||||||||
Retained earnings | 705,733 | 680,431 | |||||||||
Total equity | 1,793,267 | 1,820,059 | |||||||||
Total liabilities and equity | $ | 2,018,152 | $ | 2,096,852 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||
Notes | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||||
Revenues | |||||||||||||||||||||||||||||
Lease income | $ | 45,622 | $ | 50,198 | $ | 161,141 | $ | 129,163 | |||||||||||||||||||||
Maintenance revenue | 63,925 | 35,507 | 141,131 | 112,171 | |||||||||||||||||||||||||
Asset sales revenue | 72,990 | 85,488 | 283,167 | 85,488 | |||||||||||||||||||||||||
Aerospace products revenue | 107,085 | 53,401 | 260,273 | 94,211 | |||||||||||||||||||||||||
Other revenue | 1,474 | 5,771 | 12,447 | 13,087 | |||||||||||||||||||||||||
Total revenues | 291,096 | 230,365 | 858,159 | 434,120 | |||||||||||||||||||||||||
Expenses | |||||||||||||||||||||||||||||
Cost of sales | 116,707 | 95,948 | 366,909 | 120,139 | |||||||||||||||||||||||||
Operating expenses | 2 | 33,887 | 27,393 | 81,218 | 108,197 | ||||||||||||||||||||||||
General and administrative | 3,015 | 3,354 | 10,270 | 11,821 | |||||||||||||||||||||||||
Acquisition and transaction expenses | 4,261 | 2,848 | 10,195 | 8,340 | |||||||||||||||||||||||||
Management fees and incentive allocation to affiliate | 11 | 4,577 | 4 | 13,137 | 4 | ||||||||||||||||||||||||
Depreciation and amortization | 4, 6 | 43,959 | 34,853 | 123,399 | 115,461 | ||||||||||||||||||||||||
Asset impairment | — | 4,495 | 1,220 | 128,171 | |||||||||||||||||||||||||
Interest expense | 40,185 | 40,171 | 117,976 | 132,197 | |||||||||||||||||||||||||
Total expenses | 246,591 | 209,066 | 724,324 | 624,330 | |||||||||||||||||||||||||
Other income (expense) | |||||||||||||||||||||||||||||
Equity in earnings (losses) of unconsolidated entities | 5 | 46 | (358) | (1,669) | (125) | ||||||||||||||||||||||||
Gain on sale of assets, net | — | — | — | 79,933 | |||||||||||||||||||||||||
Loss on extinguishment of debt | — | (19,861) | — | (19,861) | |||||||||||||||||||||||||
Other income (expense) | 461 | (1,038) | 877 | 208 | |||||||||||||||||||||||||
Total other income (expense) | 507 | (21,257) | (792) | 60,155 | |||||||||||||||||||||||||
Income (loss) from continuing operations before income taxes | 45,012 | 42 | 133,043 | (130,055) | |||||||||||||||||||||||||
Provision for income taxes | 10 | 3,705 | 4,189 | 7,586 | 7,357 | ||||||||||||||||||||||||
Net income (loss) from continuing operations | 41,307 | (4,147) | 125,457 | (137,412) | |||||||||||||||||||||||||
Net loss from discontinued operations, net of income taxes | 3 | — | (14,782) | — | (101,416) | ||||||||||||||||||||||||
Net income (loss) | 41,307 | (18,929) | 125,457 | (238,828) | |||||||||||||||||||||||||
Less: Net loss attributable to non-controlling interests in consolidated subsidiaries: | |||||||||||||||||||||||||||||
Continuing operations | — | — | — | — | |||||||||||||||||||||||||
Discontinued operations | — | (2,871) | — | (18,817) | |||||||||||||||||||||||||
Less: Dividends on preferred shares | 8,334 | 6,791 | 23,460 | 20,373 | |||||||||||||||||||||||||
Net income (loss) attributable to shareholders | $ | 32,973 | $ | (22,849) | $ | 101,997 | $ | (240,384) | |||||||||||||||||||||
Earnings (loss) per share: | 13 | ||||||||||||||||||||||||||||
Basic | |||||||||||||||||||||||||||||
Continuing operations | $ | 0.33 | $ | (0.11) | $ | 1.02 | $ | (1.59) | |||||||||||||||||||||
Discontinued operations | $ | — | $ | (0.12) | $ | — | $ | (0.83) | |||||||||||||||||||||
Diluted | |||||||||||||||||||||||||||||
Continuing operations | $ | 0.33 | $ | (0.11) | $ | 1.02 | $ | (1.59) | |||||||||||||||||||||
Discontinued operations | $ | — | $ | (0.12) | $ | — | $ | (0.83) | |||||||||||||||||||||
Weighted average shares outstanding: | |||||||||||||||||||||||||||||
Basic | 99,927,594 | 99,378,771 | 99,796,736 | 99,372,016 | |||||||||||||||||||||||||
Diluted | 100,482,309 | 99,378,771 | 100,269,203 | 99,372,016 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Net income (loss) | $ | 41,307 | $ | (18,929) | $ | 125,457 | $ | (238,828) | |||||||||||||||
Other comprehensive loss: | |||||||||||||||||||||||
Other comprehensive loss related to equity method investees, net in discontinued operations | — | (40,470) | — | (182,963) | |||||||||||||||||||
Comprehensive income (loss) | 41,307 | (59,399) | 125,457 | (421,791) | |||||||||||||||||||
Comprehensive loss attributable to non-controlling interest: | |||||||||||||||||||||||
Continuing operations | — | — | — | — | |||||||||||||||||||
Discontinued operations | — | (2,871) | — | (18,817) | |||||||||||||||||||
Comprehensive income (loss) attributable to shareholders | $ | 41,307 | $ | (56,528) | $ | 125,457 | $ | (402,974) |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||
Notes | 2022 | 2021 | 2022 | 2021 | |||||||||||||||
Revenues | 9 | $ | 218,249 | $ | 93,938 | $ | 412,205 | $ | 228,482 | ||||||||||
Expenses | |||||||||||||||||||
Operating expenses | 2 | 14,612 | 10,130 | 83,651 | 20,641 | ||||||||||||||
Cost of sales | 2 | 95,948 | 5,367 | 120,139 | 8,577 | ||||||||||||||
General and administrative | 3,354 | 2,862 | 9,125 | 7,166 | |||||||||||||||
Acquisition and transaction expenses | 2,848 | 1,132 | 5,449 | 3,710 | |||||||||||||||
Management fees and incentive allocation to affiliate | 11 | 539 | 2,116 | 4,692 | 7,027 | ||||||||||||||
Depreciation and amortization | 3 | 32,877 | 34,825 | 106,567 | 102,194 | ||||||||||||||
Asset impairment | 3 | 4,495 | 859 | 128,171 | 3,048 | ||||||||||||||
Interest expense | 644 | 584 | 1,910 | 1,734 | |||||||||||||||
Total expenses | 155,317 | 57,875 | 459,704 | 154,097 | |||||||||||||||
Other income (expense) | |||||||||||||||||||
Equity in losses of unconsolidated entities | 5 | (358 | ) | (369 | ) | (125 | ) | (1,050 | ) | ||||||||||
Gain on sale of assets, net | — | 12,685 | 79,933 | 17,467 | |||||||||||||||
Other income (expense) | 42 | (1,341 | ) | 245 | (717 | ) | |||||||||||||
Total other income (expense) | (316 | ) | 10,975 | 80,053 | 15,700 | ||||||||||||||
Income before income taxes | 62,616 | 47,038 | 32,554 | 90,085 | |||||||||||||||
Provision for income taxes | 10 | 3,818 | 500 | 7,252 | 1,037 | ||||||||||||||
Net income attributable to shareholders | $ | 58,798 | $ | 46,538 | $ | 25,302 | $ | 89,048 | |||||||||||
Earnings per share: | 13 | ||||||||||||||||||
Basic | $ | 558.92 | $ | 465.38 | $ | 244.46 | $ | 890.48 | |||||||||||
Diluted | $ | 558.92 | $ | 465.38 | $ | 244.46 | $ | 890.48 | |||||||||||
Weighted average shares outstanding: | |||||||||||||||||||
Basic | 105.2 | 100.0 | 103.5 | 100.0 | |||||||||||||||
Diluted | 105.2 | 100.0 | 103.5 | 100.0 |
Three and Nine Months Ended September 30,2022 | ||||||||||||
Additional Paid In Capital | Retained Earnings | Total Equity | ||||||||||
Equity - December 31, 2021 | $ | 1,139,628 | $ | 680,431 | $ | 1,820,059 | ||||||
Net loss | — | (33,496 | ) | (33,496 | ) | |||||||
Capital contributions | 230,766 | — | 230,766 | |||||||||
Capital distributions | (104,821 | ) | — | (104,821 | ) | |||||||
Equity - June 30, 2022 | $ | 1,265,573 | $ | 646,935 | $ | 1,912,508 | ||||||
Net income | — | 58,798 | 58,798 | |||||||||
Capital contributions | 11,365 | — | 11,365 | |||||||||
Capital distributions | (189,404 | ) | — | (189,404 | ) | |||||||
Equity - September 30, 2022 | $ | 1,087,534 | $ | 705,733 | $ | 1,793,267 |
Three and Nine Months Ended September 30, 2023 | |||||||||||||||||||||||||||||||||||
Ordinary Shares | Preferred Shares | Additional Paid In Capital | Accumulated Deficit | Non-Controlling Interest in Equity of Consolidated Subsidiaries | Total Equity | ||||||||||||||||||||||||||||||
Equity - December 31, 2022 | $ | 997 | $ | 133 | $ | 343,350 | $ | (325,602) | $ | 524 | $ | 19,402 | |||||||||||||||||||||||
Net income | 84,150 | — | 84,150 | ||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | ||||||||||||||||||||||||||||||||
Total comprehensive income | — | — | — | 84,150 | — | 84,150 | |||||||||||||||||||||||||||||
Contributions from non-controlling interest | 10 | 10 | |||||||||||||||||||||||||||||||||
Issuance of ordinary shares | 389 | 389 | |||||||||||||||||||||||||||||||||
Dividends declared - ordinary shares | (59,854) | (59,854) | |||||||||||||||||||||||||||||||||
Issuance of preferred shares | 26 | 61,703 | 61,729 | ||||||||||||||||||||||||||||||||
Dividends declared - preferred shares | (15,126) | (15,126) | |||||||||||||||||||||||||||||||||
Equity-based compensation | 618 | 618 | |||||||||||||||||||||||||||||||||
Equity - June 30, 2023 | $ | 997 | $ | 159 | $ | 331,080 | $ | (241,452) | $ | 534 | $ | 91,318 | |||||||||||||||||||||||
Net income | 41,307 | — | 41,307 | ||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | ||||||||||||||||||||||||||||||||
Total comprehensive income | — | — | — | 41,307 | — | 41,307 | |||||||||||||||||||||||||||||
Issuance of ordinary shares | 5 | 178 | 183 | ||||||||||||||||||||||||||||||||
Dividends declared - ordinary shares | (29,922) | (29,922) | |||||||||||||||||||||||||||||||||
Dividends declared - preferred shares | (8,334) | (8,334) | |||||||||||||||||||||||||||||||||
Equity-based compensation | 510 | 510 | |||||||||||||||||||||||||||||||||
Equity - September 30, 2023 | $ | 1,002 | $ | 159 | $ | 293,512 | $ | (200,145) | $ | 534 | $ | 95,062 |
Three and Nine Months Ended September 30,2021 | ||||||||||||
Additional Paid In Capital | Retained Earnings | Total Equity | ||||||||||
Equity - December 31, 2020 | $ | 897,089 | $ | 550,560 | $ | 1,447,649 | ||||||
Net income | — | 42,510 | 42,510 | |||||||||
Capital contributions | 140,273 | — | 140,273 | |||||||||
Capital distributions | (88,159 | ) | — | (88,159 | ) | |||||||
Equity - June 30, 2021 | $ | 949,203 | $ | 593,070 | $ | 1,542,273 | ||||||
Net income | — | 46,538 | 46,538 | |||||||||
Capital contributions | 109,191 | — | 109,191 | |||||||||
Capital distributions | (56,803 | ) | — | (56,803 | ) | |||||||
Equity - September 30, 2021 | $ | 1,001,591 | $ | 639,608 | $ | 1,641,199 |
Three and Nine Months Ended September 30, 2022 | |||||||||||||||||||||||||||||||||||||||||
Common Shares(1) | Preferred Shares(1) | Additional Paid In Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss | Non-Controlling Interest in Equity of Consolidated Subsidiaries | Total Equity | |||||||||||||||||||||||||||||||||||
Equity - December 31, 2021 | $ | 992 | $ | 133 | $ | 1,411,940 | $ | (132,392) | $ | (156,381) | $ | (192) | $ | 1,124,100 | |||||||||||||||||||||||||||
Net loss | (203,953) | (15,946) | (219,899) | ||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | (142,493) | — | (142,493) | |||||||||||||||||||||||||||||||||||||
Total comprehensive loss | — | — | — | (203,953) | (142,493) | (15,946) | (362,392) | ||||||||||||||||||||||||||||||||||
Acquisition of consolidated subsidiary | 3,054 | 3,054 | |||||||||||||||||||||||||||||||||||||||
Contributions from non-controlling interest | 1,187 | 1,187 | |||||||||||||||||||||||||||||||||||||||
Issuance of ordinary shares | 399 | 399 | |||||||||||||||||||||||||||||||||||||||
Dividends declared - ordinary shares | (65,789) | (65,789) | |||||||||||||||||||||||||||||||||||||||
Dividends declared - preferred shares | (13,582) | (13,582) | |||||||||||||||||||||||||||||||||||||||
Equity-based compensation | 2,294 | 2,294 | |||||||||||||||||||||||||||||||||||||||
Equity - June 30, 2022 | $ | 992 | $ | 133 | $ | 1,332,968 | $ | (336,345) | $ | (298,874) | $ | (9,603) | $ | 689,271 | |||||||||||||||||||||||||||
Net loss | (16,058) | (2,871) | (18,929) | ||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | (40,470) | — | (40,470) | |||||||||||||||||||||||||||||||||||||
Total comprehensive loss | — | — | — | (16,058) | (40,470) | (2,871) | (59,399) | ||||||||||||||||||||||||||||||||||
Spin-off of FTAI Infrastructure, Inc., net of distributions | (916,582) | 339,344 | 12,817 | (564,421) | |||||||||||||||||||||||||||||||||||||
Settlement of equity-based compensation | (148) | (148) | |||||||||||||||||||||||||||||||||||||||
Issuance of ordinary shares | 2 | 2 | |||||||||||||||||||||||||||||||||||||||
Dividends declared - ordinary shares | (32,795) | (32,795) | |||||||||||||||||||||||||||||||||||||||
Dividends declared - preferred shares | (6,791) | (6,791) | |||||||||||||||||||||||||||||||||||||||
Equity-based compensation | 329 | 329 | |||||||||||||||||||||||||||||||||||||||
Equity - September 30, 2022 | $ | 994 | $ | 133 | $ | 376,800 | $ | (352,403) | $ | — | $ | 524 | $ | 26,048 |
Nine Months Ended September 30, | ||||||||
2022 | 2021 | |||||||
Cash flows from operating activities: | ||||||||
Net income | $ | 25,302 | $ | 89,048 | ||||
Adjustments to reconcile net income to cash provided by operating activities: | ||||||||
Equity in losses of unconsolidated entities | 125 | 1,050 | ||||||
Gain on sale of assets, net | (106,169 | ) | (17,467 | ) | ||||
Security deposits and maintenance claims included in earnings | (31,558 | ) | (30,866 | ) | ||||
Depreciation and amortization | 106,567 | 102,194 | ||||||
Payment-in-kind interest | 1,910 | 1,734 | ||||||
Asset impairment | 128,171 | 3,048 | ||||||
Change in deferred income taxes | 6,614 | (23 | ) | |||||
Amortization of lease intangibles and incentives | 30,315 | 21,348 | ||||||
Provision for credit losses | 47,128 | 821 | ||||||
Change in: | ||||||||
Accounts receivable, net | (25,933 | ) | (38,575 | ) | ||||
Inventory, net | (11,041 | ) | (11,918 | ) | ||||
Other assets | (1,211 | ) | 972 | |||||
Accounts payable and accrued liabilities | (19,659 | ) | (3,677 | ) | ||||
Management fees payable to affiliate | 2,618 | 15,692 | ||||||
Other liabilities | (1,875 | ) | (1,553 | ) | ||||
Net cash provided by operating activities | 151,304 | 131,828 | ||||||
Cash flows from investing activities: | ||||||||
Distribution from unconsolidated entities | 512 | — | ||||||
Principal collections on finance leases | 2,165 | 1,707 | ||||||
Acquisition of leasing equipment | (360,642 | ) | (298,912 | ) | ||||
Acquisition of property, plant and equipment | (949 | ) | (1,121 | ) | ||||
Acquisition of lease intangibles | (6,542 | ) | (7,403 | ) | ||||
Purchase deposits for aircraft and engines | (28,621 | ) | (13,790 | ) | ||||
Proceeds from sale of leasing equipment | 262,096 | 78,463 | ||||||
Proceeds from deposit of sale of aircraft and engines | 7,801 | 600 | ||||||
Return of purchase deposits | — | 1,010 | ||||||
Net cash used in investing activities | $ | (124,180 | ) | $ | (239,446 | ) |
Nine Months Ended September 30, | |||||||||||
2023 | 2022 | ||||||||||
Cash flows from operating activities: | |||||||||||
Net income (loss) | $ | 125,457 | $ | (238,828) | |||||||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||||||||||
Equity in losses of unconsolidated entities | 1,669 | 46,727 | |||||||||
Gain on sale of assets, net | (110,511) | (106,427) | |||||||||
Security deposits and maintenance claims included in earnings | (34,458) | (31,558) | |||||||||
Loss on extinguishment of debt | — | 19,861 | |||||||||
Equity-based compensation | 1,128 | 2,623 | |||||||||
Depreciation and amortization | 123,399 | 155,780 | |||||||||
Asset impairment | 1,220 | 128,171 | |||||||||
Change in deferred income taxes | 5,974 | 14,923 | |||||||||
Change in fair value of non-hedge derivative | — | (1,567) | |||||||||
Change in fair value of guarantees | (1,677) | — | |||||||||
Amortization of lease intangibles and incentives | 33,685 | 30,315 | |||||||||
Amortization of deferred financing costs | 6,429 | 17,142 | |||||||||
Provision for credit losses | 6,583 | 47,226 | |||||||||
Other | (995) | (693) | |||||||||
Change in: | |||||||||||
Accounts receivable | (34,358) | (61,892) | |||||||||
Inventory | (4,845) | (13,370) | |||||||||
Other assets | (3,727) | (23,576) | |||||||||
Accounts payable and accrued liabilities | 321 | 4,329 | |||||||||
Management fees payable to affiliate | 824 | (2,530) | |||||||||
Other liabilities | 648 | (7,955) | |||||||||
Net cash provided by (used in) operating activities | 116,766 | (21,299) | |||||||||
Cash flows from investing activities: | |||||||||||
Investment in unconsolidated entities | (19,500) | (7,344) | |||||||||
Principal collections on notes receivable | 2,438 | — | |||||||||
Principal collections on finance leases | 3,624 | 2,165 | |||||||||
Acquisition of business, net of cash acquired | — | (3,819) | |||||||||
Acquisition of leasing equipment | (506,923) | (360,642) | |||||||||
Acquisition of property, plant and equipment | (3,906) | (138,750) | |||||||||
Acquisition of lease intangibles | (10,474) | (6,542) | |||||||||
Investment in promissory notes | (11,500) | — | |||||||||
Purchase deposits for acquisitions | (10,533) | (28,621) | |||||||||
Proceeds from sale of leasing equipment | 366,065 | 262,096 | |||||||||
Proceeds from sale of property, plant and equipment | — | 5,289 | |||||||||
(Refunds) proceeds for deposit on sale of aircraft and engine | (683) | 7,801 | |||||||||
Return of purchase deposits | 300 | — | |||||||||
Net cash used in investing activities | $ | (191,092) | $ | (268,367) |
Nine Months Ended September 30, | ||||||||
2022 | 2021 | |||||||
Cash flows from financing activities: | ||||||||
Receipt of security deposits | 2,636 | 1,390 | ||||||
Return of security deposits | (935 | ) | (1,034 | ) | ||||
Receipt of maintenance deposits | 37,586 | 23,075 | ||||||
Release of maintenance deposits | (878 | ) | (19,615 | ) | ||||
Capital contributions from Parent | 242,131 | 249,464 | ||||||
Capital distributions to Parent | (294,225 | ) | (144,962 | ) | ||||
Net cash (used in) provided by financing activities | (13,685 | ) | 108,318 | |||||
Net increase in cash and cash equivalents | 13,439 | 700 | ||||||
Cash and cash equivalents, beginning of period | 2,158 | 1,388 | ||||||
Cash and cash equivalents, end of period | $ | 15,597 | $ | 2,088 | ||||
Supplemental disclosure of non-cash investing and financing activities: | ||||||||
Acquisition and transfers of leasing equipment | $ | 124,932 | $ | 66,988 | ||||
Assumed and settled security deposits | (12,161 | ) | (1,909 | ) | ||||
Assumed and settled maintenance deposits | (73,136 | ) | (30,302 | ) |
Nine Months Ended September 30, | |||||||||||
2023 | 2022 | ||||||||||
Cash flows from financing activities: | |||||||||||
Proceeds from debt | $ | 430,000 | $ | 503,980 | |||||||
Repayment of debt | (330,000) | (984,529) | |||||||||
Payment of deferred financing costs | (1,805) | (18,151) | |||||||||
Receipt of security deposits | 7,355 | 2,636 | |||||||||
Return of security deposits | (2,385) | (941) | |||||||||
Receipt of maintenance deposits | 22,747 | 37,586 | |||||||||
Release of maintenance deposits | (275) | (878) | |||||||||
Capital contributions from non-controlling interests | 10 | 1,187 | |||||||||
Settlement of equity-based compensation | — | (148) | |||||||||
Proceeds from issuance of preferred shares, net of underwriter's discount and issuance costs | 61,729 | — | |||||||||
Dividend from spin-off of FTAI Infrastructure, net of cash transferred | — | 500,562 | |||||||||
Cash dividends - ordinary shares | (89,776) | (98,584) | |||||||||
Cash dividends - preferred shares | (23,460) | (20,373) | |||||||||
Net cash provided by (used in) financing activities | 74,140 | (77,653) | |||||||||
Net decrease in cash and cash equivalents and restricted cash | (186) | (367,319) | |||||||||
Cash and cash equivalents and restricted cash, beginning of period | 53,065 | 440,061 | |||||||||
Cash and cash equivalents and restricted cash, end of period | $ | 52,879 | $ | 72,742 | |||||||
Supplemental disclosure of non-cash investing and financing activities: | |||||||||||
Acquisition of leasing equipment | $ | 96,510 | $ | 124,932 | |||||||
Acquisition of property, plant and equipment | (199) | (762) | |||||||||
Security deposits, maintenance deposits, other assets and other liabilities settled in the sale of leasing equipment | 20,127 | — | |||||||||
Settled and assumed security deposits | 2,270 | (12,161) | |||||||||
Billed, assumed and settled maintenance deposits | (15,854) | (73,808) | |||||||||
Non-cash change in equity method investment | — | (182,963) | |||||||||
Conversion of interests in unconsolidated entities | — | (21,302) | |||||||||
Issuance of ordinary shares | 567 | 399 |
Three Months Ended | Nine Months Ended | ||||||||||
September 30, 2022 | September 30, 2022 | ||||||||||
Revenues | |||||||||||
Total revenues | $ | 27,993 | $ | 140,009 | |||||||
Expenses | |||||||||||
Cost of sales | 4,920 | 12,732 | |||||||||
Operating expenses | 12,365 | 92,478 | |||||||||
General and administrative expenses | 466 | 2,694 | |||||||||
Acquisition and transaction expenses | 3,813 | 13,971 | |||||||||
Management fees and incentive allocation to affiliate | 908 | 8,134 | |||||||||
Depreciation and amortization | 6,004 | 40,319 | |||||||||
Interest expense | 2,160 | 15,105 | |||||||||
Other expense | 7,641 | 47,765 | |||||||||
Total expenses | 38,277 | 233,198 | |||||||||
Loss before income taxes | (10,284) | (93,189) | |||||||||
Provision for income taxes | 4,498 | 8,227 | |||||||||
Net loss from discontinued operations, net of income taxes | (14,782) | (101,416) | |||||||||
Less: Net loss attributable to non-controlling interests in consolidated subsidiaries | (2,871) | (18,817) | |||||||||
Net loss attributable to shareholders | $ | (11,911) | $ | (82,599) |
Nine Months Ended | |||||
September 30, 2022 | |||||
Operating activities: | |||||
Equity in losses of unconsolidated entities | $ | 46,601 | |||
Depreciation and amortization | 40,319 | ||||
Equity-based compensation | 2,623 | ||||
Investing activities: | |||||
Acquisition of property, plant and equipment | $ | (129,920) | |||
Acquisition of business, net of cash acquired | (3,819) | ||||
Investment in unconsolidated entities | (7,954) | ||||
Proceeds from sale of property, plant and equipment | 5,289 | ||||
Non-cash change in equity method investment | (182,963) | ||||
Non-cash conversion of interest in unconsolidated entities | (21,302) |
Three Months Ended | Nine Months Ended | ||||||||||||||||
Income Statement | September 30, 2022 | September 30, 2022 | |||||||||||||||
Total revenues | $ | 156 | $ | 15,199 | |||||||||||||
Expenses | |||||||||||||||||
Operating expenses | 4,337 | 36,693 | |||||||||||||||
Depreciation and amortization | 4,383 | 29,381 | |||||||||||||||
Interest expense | 4,580 | 30,622 | |||||||||||||||
Total expenses | 13,300 | 96,696 | |||||||||||||||
Other expense | (21) | (234) | |||||||||||||||
Net loss | $ | (13,165) | $ | (81,731) |
September 30, | December 31, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | September 30, 2023 | December 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Leasing equipment | 1,990,115 | $ | 2,122,428 | Leasing equipment | $ | 2,448,274 | $ | 2,413,230 | |||||||||||||||||||||||||||||||||||||||||||||||
Less: Accumulated depreciation | (430,540 | ) | (408,292 | ) | Less: Accumulated depreciation | (524,076) | (499,677) | ||||||||||||||||||||||||||||||||||||||||||||||||
Leasing equipment, net | $ | 1,559,575 | $ | 1,714,136 | Leasing equipment, net | $ | 1,924,198 | $ | 1,913,553 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
Depreciation expense for leasing equipment | $ | 32,728 | $ | 34,718 | $ | 106,180 | $ | 101,992 |
September 30, | December 31, | |||||||
2022 | 2021 | |||||||
Finance leases | $ | 7,697 | $ | 8,358 | ||||
Unearned revenue | (603 | ) | (775 | ) | ||||
Finance leases, net | $ | 7,094 | $ | 7,583 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Depreciation expense for leasing equipment | $ | 43,765 | $ | 34,704 | $ | 122,867 | $ | 115,074 |
Carrying Value | Carrying Value | |||||||||||||||||||||||||||||||||||
Investment | Ownership Percentage | September 30, 2022 | December 31, 2021 | Investment | Ownership Percentage | September 30, 2023 | December 31, 2022 | |||||||||||||||||||||||||||||
Advanced Engine Repair JV | Equity method | 25% | $ | 20,439 | $ | 21,317 | Advanced Engine Repair JV | Equity method | 25% | $ | 21,543 | $ | 20,207 | |||||||||||||||||||||||
Falcon MSN 177 LLC | Equity method | 50% | 1,841 | 1,600 | Falcon MSN 177 LLC | Equity method | 50% | 1,588 | 1,830 | |||||||||||||||||||||||||||
Quick Turn Engine Center LLC | Quick Turn Engine Center LLC | Equity method | 50% | 16,737 | — | |||||||||||||||||||||||||||||||
$ | 22,280 | $ | 22,917 | $ | 39,868 | $ | 22,037 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Advanced Engine Repair JV | $ | 1,063 | $ | (314) | $ | 1,336 | $ | (879) | |||||||||||||||
Falcon MSN 177 LLC | (108) | (44) | (242) | 754 | |||||||||||||||||||
Quick Turn Engine Center LLC | (909) | — | (2,763) | — | |||||||||||||||||||
Total | $ | 46 | $ | (358) | $ | (1,669) | $ | (125) |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
Advanced Engine Repair JV | $ | (314 | ) | $ | (369 | ) | $ | (879 | ) | $ | (1,050 | ) | ||||
Falcon MSN 177 LLC | (44 | ) | — | 754 | — | |||||||||||
Total | $ | (358 | ) | $ | (369 | ) | $ | (125 | ) | $ | (1,050 | ) |
September 30, 2022 | December 31, 2021 | |||||||
Intangible assets | ||||||||
Acquired favorable lease intangibles | $ | 59,789 | $ | 67,013 | ||||
Less: Accumulated amortization | (30,373 | ) | (36,051 | ) | ||||
Total intangible assets, net | $ | 29,416 | $ | 30,962 | ||||
Intangible liabilities | ||||||||
Acquired unfavorable lease intangibles | $ | 13,114 | $ | 14,795 | ||||
Less: Accumulated amortization | (2,216 | ) | (6,068 | ) | ||||
Acquired unfavorable lease intangibles, net | $ | 10,898 | $ | 8,727 |
September 30, 2023 | December 31, 2022 | ||||||||||
Intangible assets | |||||||||||
Acquired favorable lease intangibles | $ | 60,963 | $ | 64,202 | |||||||
Less: Accumulated amortization | (19,492) | (22,247) | |||||||||
Acquired favorable lease intangibles, net | $ | 41,471 | $ | 41,955 | |||||||
Intangible liabilities | |||||||||||
Acquired unfavorable lease intangibles | $ | 2,918 | $ | 13,152 | |||||||
Less: Accumulated amortization | (1,232) | (2,607) | |||||||||
Acquired unfavorable lease intangibles, net | $ | 1,686 | $ | 10,545 |
| Classification in Consolidated Statements of Operations | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||
Lease intangibles | Revenues | $ | 3,291 | $ | 1,266 | $ | 10,259 | $ | 3,216 |
Classification in Consolidated Statements of Operations | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||||
Lease intangibles | Lease income | $ | 3,726 | $ | 3,291 | $ | 11,325 | $ | 10,259 | ||||||||||||||||||||
Remainder of 2022 | 3,323 | ||||||||
2023 | 8,398 | ||||||||
Remainder of 2023 | Remainder of 2023 | 3,189 | |||||||
2024 | 4,848 | 2024 | 12,583 | ||||||
2025 | 1,962 | 2025 | 9,049 | ||||||
2026 | 519 | 2026 | 6,504 | ||||||
2027 | 2027 | 3,388 | |||||||
2028 | 2028 | 3,132 | |||||||
Thereafter | (532 | ) | Thereafter | 1,940 | |||||
Total | $ | 18,518 | Total | $ | 39,785 |
September 30, 2023 | December 31, 2022 | ||||||||||||||||||||||
Outstanding Borrowings | Stated Interest Rate | Maturity Date | Outstanding Borrowings | ||||||||||||||||||||
Loans payable | |||||||||||||||||||||||
Revolving Credit Facility (1) | $ | 250,000 | (i) Base Rate + 1.75%; or (ii) Adjusted Term SOFR Rate + 2.75% | 9/20/25 | $ | 150,000 | |||||||||||||||||
Total loans payable | 250,000 | 150,000 | |||||||||||||||||||||
Bonds payable | |||||||||||||||||||||||
Senior Notes due 2025 (2) | 652,297 | 6.50% | 10/1/25 | 653,036 | |||||||||||||||||||
Senior Notes due 2027 | 400,000 | 9.75% | 8/1/27 | 400,000 | |||||||||||||||||||
Senior Notes due 2028 (3) | 1,001,834 | 5.50% | 5/1/28 | 1,002,091 | |||||||||||||||||||
Total bonds payable | 2,054,131 | 2,055,127 | |||||||||||||||||||||
Debt | 2,304,131 | 2,205,127 | |||||||||||||||||||||
Less: Debt issuance costs | (24,801) | (29,400) | |||||||||||||||||||||
Total debt, net | $ | 2,279,330 | $ | 2,175,727 | |||||||||||||||||||
Total debt due within one year | $ | — | $ | — |
September 30, 2023 | December 31, 2022 | ||||||||||
Senior Notes due 2025 | 639,633 | 613,152 | |||||||||
Senior Notes due 2027 | 413,836 | 402,032 | |||||||||
Senior Notes due 2028 | 907,380 | 853,490 |
Three Months Ended September 30, | Nine Months Ended September 30, | Remaining Expense To Be Recognized, If All Vesting Conditions Are Met | Weighted Average Remaining Contractual Term (in years) | |||||||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||||||||
Restricted Shares | $ | 510 | $ | — | $ | 1,128 | $ | — | $ | 7,643 | 3.3 years | |||||||||||||||||||||
Three Months Ended September 30, 2022 | ||||||||||||
Aviation Leasing | Aerospace Products | Total | ||||||||||
Revenues | ||||||||||||
Lease income | $ | 40,273 | $ | — | $ | 40,273 | ||||||
Maintenance revenue | 35,507 | — | 35,507 | |||||||||
Finance lease income | 119 | — | 119 | |||||||||
Asset sales revenue | 85,488 | — | 85,488 | |||||||||
Aerospace products revenue | — | 53,401 | 53,401 | |||||||||
Other revenue | 3,461 | — | 3,461 | |||||||||
Total revenues | $ | 164,848 | $ | 53,401 | $ | 218,249 |
Three Months Ended September 30, 2021 | ||||||||||||
Aviation Leasing | Aerospace Products | Total | ||||||||||
Revenues | ||||||||||||
Lease income | $ | 40,392 | $ | — | $ | 40,392 | ||||||
Maintenance revenue | 40,252 | — | 40,252 | |||||||||
Finance lease income | 439 | — | 439 | |||||||||
Aerospace products revenue | — | 7,730 | 7,730 | |||||||||
Other revenue | 5,125 | — | 5,125 | |||||||||
Total revenues | $ | 86,208 | $ | 7,730 | $ | 93,938 |
Nine Months Ended September 30, 2022 | ||||||||||||
Aviation Leasing | Aerospace Products | Total | ||||||||||
Revenues | ||||||||||||
Lease income | $ | 111,316 | $ | — | $ | 111,316 | ||||||
Maintenance revenue | 112,171 | — | 112,171 | |||||||||
Finance lease income | 332 | — | 332 | |||||||||
Asset sales revenue | 85,488 | — | 85,488 | |||||||||
Aerospace products revenue | — | 94,211 | 94,211 | |||||||||
Other revenue | 8,687 | — | 8,687 | |||||||||
Total revenues | $ | 317,994 | $ | 94,211 | $ | 412,205 |
Nine Months Ended September 30, 2021 | ||||||||||||
Aviation Leasing | Aerospace Products | Total | ||||||||||
Revenues | ||||||||||||
Lease income | $ | 120,389 | $ | — | $ | 120,389 | ||||||
Maintenance revenue | 87,763 | — | 87,763 | |||||||||
Finance lease income | 1,285 | — | 1,285 | |||||||||
Aerospace products revenue | — | 13,284 | 13,284 | |||||||||
Other revenue | 5,761 | — | 5,761 | |||||||||
Total revenues | $ | 215,198 | $ | 13,284 | $ | 228,482 |
September 30, 2022 | ||||
Remainder of 2022 | $ | 32,414 | ||
2023 | 104,995 | |||
2024 | 70,428 | |||
2025 | 43,890 | |||
2026 | 24,835 | |||
Thereafter | 65,820 | |||
Total | $ | 342,382 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
Current: | ||||||||||||||||
Cayman Islands | $ | — | $ | — | $ | — | $ | — | ||||||||
United States: | ||||||||||||||||
Federal | 247 | 336 | 581 | 793 | ||||||||||||
State and local | (437 | ) | 54 | 69 | 218 | |||||||||||
Non-U.S. | 3 | 32 | (12 | ) | 49 | |||||||||||
Total current (benefit) provision | (187 | ) | 422 | 638 | 1,060 | |||||||||||
Deferred: | ||||||||||||||||
Cayman Islands | $ | — | $ | — | $ | — | $ | — | ||||||||
United States: | ||||||||||||||||
Federal | 3,029 | 45 | 4,560 | 45 | ||||||||||||
State and local | 346 | 14 | 608 | 14 | ||||||||||||
Non-U.S. | 630 | 19 | 1,446 | (82 | ) | |||||||||||
Total deferred provision (benefit) | 4,005 | 78 | 6,614 | (23 | ) | |||||||||||
Total | $ | 3,818 | $ | 500 | $ | 7,252 | $ | 1,037 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Current: | |||||||||||||||||||||||
Cayman Islands | $ | — | $ | — | $ | — | — | ||||||||||||||||
United States: | — | — | — | — | |||||||||||||||||||
Federal | (32) | 247 | (77) | 582 | |||||||||||||||||||
State and local | 39 | (442) | 20 | 69 | |||||||||||||||||||
Non-U.S. | 851 | 106 | 1,669 | 174 | |||||||||||||||||||
Total current provision (benefit) | 858 | (89) | 1,612 | 825 | |||||||||||||||||||
Deferred: | |||||||||||||||||||||||
Cayman Islands | — | — | — | — | |||||||||||||||||||
United States: | — | — | — | — | |||||||||||||||||||
Federal | 1,521 | 2,915 | 2,344 | 4,517 | |||||||||||||||||||
State and local | (430) | 304 | 68 | 610 | |||||||||||||||||||
Non-U.S. | 1,756 | 1,059 | 3,562 | 1,405 | |||||||||||||||||||
Total deferred provision | 2,847 | 4,278 | 5,974 | 6,532 | |||||||||||||||||||
Provision for income taxes: | |||||||||||||||||||||||
Continuing operations | 3,705 | 4,189 | 7,586 | 7,357 | |||||||||||||||||||
Discontinued operations | — | — | — | — | |||||||||||||||||||
Total | $ | 3,705 | $ | 4,189 | $ | 7,586 | $ | 7,357 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Management fees | $ | 303 | $ | 4 | $ | 597 | $ | 4 | |||||||||||||||
Income incentive allocation | 4,274 | — | 12,540 | — | |||||||||||||||||||
Capital gains incentive allocation | — | — | — | — | |||||||||||||||||||
Total | $ | 4,577 | $ | 4 | $ | 13,137 | $ | 4 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
Management fees | $ | 539 | 2,116 | $ | 4,692 | 7,027 | ||||||||||
Income incentive allocation | — | — | — | — | ||||||||||||
Capital gains incentive allocation | — | — | — | — | ||||||||||||
Total | $ | 539 | $ | 2,116 | $ | 4,692 | $ | 7,027 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Classification in the Consolidated Statements of Operations: | |||||||||||||||||||||||
General and administrative | $ | 1,592 | $ | 1,466 | $ | 5,096 | $ | 4,933 | |||||||||||||||
Acquisition and transaction expenses | 172 | 154 | 381 | 883 | |||||||||||||||||||
Total | $ | 1,764 | $ | 1,620 | $ | 5,477 | $ | 5,816 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
Classification in the Consolidated Statements of Operations: | ||||||||||||||||
General and administrative expenses | $ | 1,466 | $ | 1,195 | $ | 4,160 | $ | 3,584 | ||||||||
Acquisition and transaction expenses | 1,025 | 273 | 1,677 | 820 | ||||||||||||
Total | $ | 2,491 | $ | 1,468 | $ | 5,837 | $ | 4,404 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
Classification in the Consolidated Statements of Operations: | ||||||||||||||||
General and administrative expenses | $ | 1,888 | $ | 1,667 | $ | 4,965 | $ | 3,582 |
September 30, 2022 | December 31, 2021 | |||||||
Management fees payable to affiliate | $ | 46,095 | $ | 43,477 |
September 30, 2023 | December 31, 2022 | ||||||||||
Accrued management fees | $ | 210 | $ | 53 | |||||||
Other payables | 5,354 | 4,688 |
Three Months Ended September 30, 2022 | Three Months Ended September 30, 2023 | ||||||||||||||||||||||||||||||||||||||
Aviation Leasing | Aerospace Products | Corporate and Other | Total | Aviation Leasing | Aerospace Products | Corporate and Other | Total | ||||||||||||||||||||||||||||||||
Revenues | $ | 164,848 | $ | 53,401 | $ | — | $ | 218,249 | Revenues | ||||||||||||||||||||||||||||||
Lease income | Lease income | $ | 35,981 | $ | — | $ | 9,641 | $ | 45,622 | ||||||||||||||||||||||||||||||
Maintenance revenue | Maintenance revenue | 63,925 | — | — | 63,925 | ||||||||||||||||||||||||||||||||||
Asset sales revenue | Asset sales revenue | 72,990 | — | — | 72,990 | ||||||||||||||||||||||||||||||||||
Aerospace products revenue | Aerospace products revenue | — | 107,085 | — | 107,085 | ||||||||||||||||||||||||||||||||||
Other revenue | Other revenue | 82 | — | 1,392 | 1,474 | ||||||||||||||||||||||||||||||||||
Total revenues | Total revenues | 172,978 | 107,085 | 11,033 | 291,096 | ||||||||||||||||||||||||||||||||||
Expenses | Expenses | ||||||||||||||||||||||||||||||||||||||
Cost of sales | Cost of sales | 55,398 | 61,309 | — | 116,707 | ||||||||||||||||||||||||||||||||||
Operating expenses | 10,533 | 3,491 | 588 | 14,612 | Operating expenses | 13,944 | 5,947 | 13,996 | 33,887 | ||||||||||||||||||||||||||||||
Cost of sales | 64,855 | 31,093 | — | 95,948 | |||||||||||||||||||||||||||||||||||
General and administrative | — | — | 3,354 | 3,354 | General and administrative | — | — | 3,015 | 3,015 | ||||||||||||||||||||||||||||||
Acquisition and transaction expenses | 247 | 15 | 2,586 | 2,848 | Acquisition and transaction expenses | 2,329 | 110 | 1,822 | 4,261 | ||||||||||||||||||||||||||||||
Management fees and incentive allocation to affiliate | — | — | 539 | 539 | Management fees and incentive allocation to affiliate | — | — | 4,577 | 4,577 | ||||||||||||||||||||||||||||||
Depreciation and amortization | 32,728 | 77 | 72 | 32,877 | Depreciation and amortization | 41,141 | 115 | 2,703 | 43,959 | ||||||||||||||||||||||||||||||
Asset impairment | 4,495 | — | — | 4,495 | |||||||||||||||||||||||||||||||||||
Interest expense | — | — | 644 | 644 | Interest expense | — | — | 40,185 | 40,185 | ||||||||||||||||||||||||||||||
Total expenses | 112,858 | 34,676 | 7,783 | 155,317 | Total expenses | 112,812 | 67,481 | 66,298 | 246,591 | ||||||||||||||||||||||||||||||
Other expense | |||||||||||||||||||||||||||||||||||||||
Equity in losses of unconsolidated entities | (45 | ) | (313 | ) | — | (358 | ) | ||||||||||||||||||||||||||||||||
Other income | 42 | — | — | 42 | Other income | ||||||||||||||||||||||||||||||||||
Total other expense | (3 | ) | (313 | ) | — | (316 | ) | ||||||||||||||||||||||||||||||||
Income (loss) before income taxes | 51,987 | 18,412 | (7,783 | ) | 62,616 | ||||||||||||||||||||||||||||||||||
Equity in (losses) income of unconsolidated entities | Equity in (losses) income of unconsolidated entities | (108) | 154 | — | 46 | ||||||||||||||||||||||||||||||||||
Other income | Other income | 444 | — | 17 | 461 | ||||||||||||||||||||||||||||||||||
Total other income | Total other income | 336 | 154 | 17 | 507 | ||||||||||||||||||||||||||||||||||
Income (loss) from continuing operations before income taxes | Income (loss) from continuing operations before income taxes | 60,502 | 39,758 | (55,248) | 45,012 | ||||||||||||||||||||||||||||||||||
Provision for income taxes | 1,232 | 2,586 | — | 3,818 | Provision for income taxes | 2,332 | 1,131 | 242 | 3,705 | ||||||||||||||||||||||||||||||
Net income (loss) attributable to shareholders | $ | 50,755 | $ | 15,826 | $ | (7,783 | ) | $ | 58,798 | ||||||||||||||||||||||||||||||
Net income (loss) from continuing operations | Net income (loss) from continuing operations | 58,170 | 38,627 | (55,490) | 41,307 | ||||||||||||||||||||||||||||||||||
Less: Net income (loss) from continuing operations attributable to non-controlling interests in consolidated subsidiaries | Less: Net income (loss) from continuing operations attributable to non-controlling interests in consolidated subsidiaries | — | — | — | — | ||||||||||||||||||||||||||||||||||
Less: Dividends on preferred shares | Less: Dividends on preferred shares | — | — | 8,334 | 8,334 | ||||||||||||||||||||||||||||||||||
Net income (loss) attributable to shareholders from continuing operations | Net income (loss) attributable to shareholders from continuing operations | $ | 58,170 | $ | 38,627 | $ | (63,824) | $ | 32,973 |
Three Months Ended September 30, 2022 | ||||||||||||||||
Aviation Leasing | Aerospace Products | Corporate and Other | Total | |||||||||||||
Adjusted EBITDA | $ | 95,994 | $ | 18,560 | $ | (4,481 | ) | $ | 110,073 | |||||||
Add: Equity in losses of unconsolidated entities | (358 | ) | ||||||||||||||
Less: Pro-rata share of Adjusted EBITDA from unconsolidated entities | 241 | |||||||||||||||
Less: Interest expense | (644 | ) | ||||||||||||||
Less: Depreciation and amortization expense | (39,353 | ) | ||||||||||||||
Less: Asset impairment charges | (4,495 | ) | ||||||||||||||
Less: Acquisition and transaction expenses | (2,848 | ) | ||||||||||||||
Less: Provision for income taxes | (3,818 | ) | ||||||||||||||
Net income attributable to shareholders | $ | 58,798 |
Three Months Ended September 30, 2023 | |||||||||||||||||||||||
Aviation Leasing | Aerospace Products | Corporate and Other | Total | ||||||||||||||||||||
Adjusted EBITDA | $ | 119,561 | $ | 40,586 | $ | (5,929) | $ | 154,218 | |||||||||||||||
Add: Non-controlling share of Adjusted EBITDA | — | ||||||||||||||||||||||
Add: Equity in earnings of unconsolidated entities | 46 | ||||||||||||||||||||||
Less: Pro-rata share of Adjusted EBITDA from unconsolidated entities | (642) | ||||||||||||||||||||||
Less: Interest expense and dividends on preferred shares | (48,519) | ||||||||||||||||||||||
Less: Depreciation and amortization expense | (59,380) | ||||||||||||||||||||||
Less: Incentive allocations | (4,274) | ||||||||||||||||||||||
Less: Asset impairment charges | — | ||||||||||||||||||||||
Less: Changes in fair value of non-hedge derivative instruments | — | ||||||||||||||||||||||
Less: Losses on the modification or extinguishment of debt and capital lease obligations | — | ||||||||||||||||||||||
Less: Acquisition and transaction expenses | (4,261) | ||||||||||||||||||||||
Less: Equity-based compensation expense | (510) | ||||||||||||||||||||||
Less: Provision for income taxes | (3,705) | ||||||||||||||||||||||
Net income attributable to shareholders from continuing operations | $ | 32,973 |
Three Months Ended September 30, 2022 | ||||||||||||||||
Aviation Leasing | Aerospace Products | Corporate and Other | Total | |||||||||||||
Revenues | ||||||||||||||||
Africa | $ | 250 | $ | — | $ | — | $ | 250 | ||||||||
Asia | 23,496 | 1,200 | 24,696 | |||||||||||||
Europe | 41,869 | 15,511 | — | 57,380 | ||||||||||||
North America | 90,183 | 36,690 | 126,873 | |||||||||||||
South America | 9,050 | — | — | 9,050 | ||||||||||||
Total revenues | $ | 164,848 | $ | 53,401 | $ | — | $ | 218,249 |
Three Months Ended September 30, 2023 | |||||||||||||||||||||||
Aviation Leasing | Aerospace Products | Corporate and Other | Total | ||||||||||||||||||||
Revenues | |||||||||||||||||||||||
Africa | $ | 154 | $ | — | $ | — | $ | 154 | |||||||||||||||
Asia | 48,267 | 952 | 11,033 | 60,252 | |||||||||||||||||||
Europe | 56,679 | 34,961 | — | 91,640 | |||||||||||||||||||
North America | 55,959 | 65,623 | — | 121,582 | |||||||||||||||||||
South America | 11,919 | 5,549 | — | 17,468 | |||||||||||||||||||
Total | $ | 172,978 | $ | 107,085 | $ | 11,033 | $ | 291,096 |
Nine Months Ended September 30, 2023 | |||||||||||||||||||||||
Aviation Leasing | Aerospace Products | Corporate and Other | Total | ||||||||||||||||||||
Revenues | |||||||||||||||||||||||
Lease income | $ | 132,978 | $ | — | $ | 28,163 | $ | 161,141 | |||||||||||||||
Maintenance revenue | 141,131 | — | — | 141,131 | |||||||||||||||||||
Asset sales revenue | 283,167 | — | — | 283,167 | |||||||||||||||||||
Aerospace products revenue | — | 260,273 | — | 260,273 | |||||||||||||||||||
Other revenue | 6,773 | — | 5,674 | 12,447 | |||||||||||||||||||
Total revenues | 564,049 | 260,273 | 33,837 | 858,159 | |||||||||||||||||||
Expenses | |||||||||||||||||||||||
Cost of sales | 217,190 | 149,719 | — | 366,909 | |||||||||||||||||||
Operating expenses | 28,610 | 12,838 | 39,770 | 81,218 | |||||||||||||||||||
General and administrative | — | — | 10,270 | 10,270 | |||||||||||||||||||
Acquisition and transaction expenses | 4,960 | 1,137 | 4,098 | 10,195 | |||||||||||||||||||
Management fees and incentive allocation to affiliate | — | — | 13,137 | 13,137 | |||||||||||||||||||
Depreciation and amortization | 114,994 | 298 | 8,107 | 123,399 | |||||||||||||||||||
Asset impairment | 1,220 | — | — | 1,220 | |||||||||||||||||||
Interest expense | — | — | 117,976 | 117,976 | |||||||||||||||||||
Total expenses | 366,974 | 163,992 | 193,358 | 724,324 | |||||||||||||||||||
Other income (expense) | |||||||||||||||||||||||
Equity in losses of unconsolidated entities | (242) | (1,427) | — | (1,669) | |||||||||||||||||||
Other income | 860 | — | 17 | 877 | |||||||||||||||||||
Total other income (expense) | 618 | (1,427) | 17 | (792) | |||||||||||||||||||
Income (loss) before income taxes | 197,693 | 94,854 | (159,504) | 133,043 | |||||||||||||||||||
Provision for income taxes | 4,414 | 2,631 | 541 | 7,586 | |||||||||||||||||||
Net income (loss) | 193,279 | 92,223 | (160,045) | 125,457 | |||||||||||||||||||
Less: Net income (loss) attributable to non-controlling interests in consolidated subsidiaries | — | — | — | — | |||||||||||||||||||
Less: Dividends on preferred shares | — | — | 23,460 | 23,460 | |||||||||||||||||||
Net income (loss) attributable to shareholders from continuing operations | $ | 193,279 | $ | 92,223 | $ | (183,505) | $ | 101,997 |
Nine Months Ended September 30, 2022 | ||||||||||||||||
Aviation Leasing | Aerospace Products | Corporate and Other | Total | |||||||||||||
Revenues | $ | 317,994 | $ | 94,211 | $ | — | $ | 412,205 | ||||||||
Expenses | ||||||||||||||||
Operating expenses | 72,135 | 8,094 | 3,422 | 83,651 | ||||||||||||
Cost of sales | 64,855 | 55,284 | — | 120,139 | ||||||||||||
General and administrative | — | — | 9,125 | 9,125 | ||||||||||||
Acquisition and transaction expenses | 624 | 15 | 4,810 | 5,449 | ||||||||||||
Management fees and incentive allocation to affiliate | — | — | 4,692 | 4,692 | ||||||||||||
Depreciation and amortization | 106,180 | 178 | 209 | 106,567 | ||||||||||||
Asset impairment | 128,171 | — | — | 128,171 | ||||||||||||
Interest expense | — | — | 1,910 | 1,910 | ||||||||||||
Total expenses | 371,965 | 63,571 | 24,168 | 459,704 | ||||||||||||
Other expense | ||||||||||||||||
Equity in earnings (losses) of unconsolidated entities | 753 | (878 | ) | — | (125 | ) | ||||||||||
Gain on sale of assets, net | 61,371 | 18,562 | — | 79,933 | ||||||||||||
Other income | 245 | — | — | 245 | ||||||||||||
Total other income | 62,369 | 17,684 | — | 80,053 | ||||||||||||
Income (loss) before income taxes | 8,398 | 48,324 | (24,168 | ) | 32,554 | |||||||||||
Provision for income taxes | 2,197 | 5,055 | — | 7,252 | ||||||||||||
Net income (loss) attributable to shareholders | $ | 6,201 | $ | 43,269 | $ | (24,168 | ) | $ | 25,302 |
Nine Months Ended September 30, 2023 | |||||||||||||||||||||||
Aviation Leasing | Aerospace Products | Corporate and Other | Total | ||||||||||||||||||||
Adjusted EBITDA | $ | 352,973 | $ | 98,020 | $ | (16,042) | $ | 434,951 | |||||||||||||||
Add: Non-controlling share of Adjusted EBITDA | — | ||||||||||||||||||||||
Add: Equity in losses of unconsolidated entities | (1,669) | ||||||||||||||||||||||
Less: Pro-rata share of Adjusted EBITDA from unconsolidated entities | (96) | ||||||||||||||||||||||
Less: Interest expense and dividends on preferred shares | (141,436) | ||||||||||||||||||||||
Less: Depreciation and amortization expense | (157,084) | ||||||||||||||||||||||
Less: Incentive allocations | (12,540) | ||||||||||||||||||||||
Less: Asset impairment charges | (1,220) | ||||||||||||||||||||||
Less: Changes in fair value of non-hedge derivative instruments | — | ||||||||||||||||||||||
Less: Losses on the modification or extinguishment of debt and capital lease obligations | — | ||||||||||||||||||||||
Less: Acquisition and transaction expenses | (10,195) | ||||||||||||||||||||||
Less: Equity-based compensation expense | (1,128) | ||||||||||||||||||||||
Less: Provision for income taxes | (7,586) | ||||||||||||||||||||||
Net loss attributable to shareholders from continuing operations | $ | 101,997 |
Nine Months Ended September 30, 2023 | |||||||||||||||||||||||
Aviation Leasing | Aerospace Products | Corporate and Other | Total | ||||||||||||||||||||
Revenues | |||||||||||||||||||||||
Africa | $ | 154 | $ | 875 | $ | — | $ | 1,029 | |||||||||||||||
Asia | 81,285 | 2,737 | 33,837 | 117,859 | |||||||||||||||||||
Europe | 192,498 | 80,847 | — | 273,345 | |||||||||||||||||||
North America | 258,009 | 165,819 | — | 423,828 | |||||||||||||||||||
South America | 32,103 | 9,995 | — | 42,098 | |||||||||||||||||||
Total | $ | 564,049 | $ | 260,273 | $ | 33,837 | $ | 858,159 |
Nine Months Ended September 30, 2022 | ||||||||||||||||
Aviation Leasing | Aerospace Products | Corporate and Other | Total | |||||||||||||
Adjusted EBITDA | $ | 273,788 | $ | 48,685 | $ | (17,239 | ) | $ | 305,234 | |||||||
Add: Equity in losses of unconsolidated entities | (125 | ) | ||||||||||||||
Less: Pro-rata share of Adjusted EBITDA from unconsolidated entities | (165 | ) | ||||||||||||||
Less: Interest expense | (1,910 | ) | ||||||||||||||
Less: Depreciation and amortization expense | (136,860 | ) | ||||||||||||||
Less: Asset impairment charges | (128,171 | ) | ||||||||||||||
Less: Acquisition and transaction expenses | (5,449 | ) | ||||||||||||||
Less: Provision for income taxes | (7,252 | ) | ||||||||||||||
Net income attributable to shareholders | $ | 25,302 |
Operating Leases | |||||||||||
Remainder of 2023 | $ | 45,510 | |||||||||
2024 | 143,742 | ||||||||||
2025 | 103,809 | ||||||||||
2026 | 76,541 | ||||||||||
2027 | 59,066 | ||||||||||
Thereafter | 83,674 | ||||||||||
Total | $ | 512,342 |
Three Months Ended September 30, 2022 | |||||||||||||||||||||||
Aviation Leasing | Aerospace Products | Corporate and Other | Total | ||||||||||||||||||||
Revenues | |||||||||||||||||||||||
Lease income | $ | 40,392 | $ | — | $ | 9,806 | $ | 50,198 | |||||||||||||||
Maintenance revenue | 35,507 | — | — | 35,507 | |||||||||||||||||||
Asset sales revenue | 85,488 | — | — | 85,488 | |||||||||||||||||||
Aerospace products revenue | — | 53,401 | — | 53,401 | |||||||||||||||||||
Other revenue | 3,461 | — | 2,310 | 5,771 | |||||||||||||||||||
Total revenues | 164,848 | 53,401 | 12,116 | 230,365 | |||||||||||||||||||
Expenses | |||||||||||||||||||||||
Cost of sales | 64,855 | 31,093 | — | 95,948 | |||||||||||||||||||
Operating expenses | 10,533 | 3,491 | 13,369 | 27,393 | |||||||||||||||||||
General and administrative | — | — | 3,354 | 3,354 | |||||||||||||||||||
Acquisition and transaction expenses | 247 | 15 | 2,586 | 2,848 | |||||||||||||||||||
Management fees and incentive allocation to affiliate | — | — | 4 | 4 | |||||||||||||||||||
Depreciation and amortization | 32,728 | 77 | 2,048 | 34,853 | |||||||||||||||||||
Asset impairment | 4,495 | — | — | 4,495 | |||||||||||||||||||
Interest expense | — | — | 40,171 | 40,171 | |||||||||||||||||||
Total expenses | 112,858 | 34,676 | 61,532 | 209,066 | |||||||||||||||||||
Other expense | |||||||||||||||||||||||
Equity in losses of unconsolidated entities | (45) | (313) | — | (358) | |||||||||||||||||||
Loss on extinguishment of debt | — | — | (19,861) | (19,861) | |||||||||||||||||||
Other income (expense) | 42 | — | (1,080) | (1,038) | |||||||||||||||||||
Total other expenses | (3) | (313) | (20,941) | (21,257) | |||||||||||||||||||
Income (loss) from continuing operations before income taxes | 51,987 | 18,412 | (70,357) | 42 | |||||||||||||||||||
Provision for income taxes | 926 | 2,586 | 677 | 4,189 | |||||||||||||||||||
Net income (loss) from continuing operations | 51,061 | 15,826 | (71,034) | (4,147) | |||||||||||||||||||
Less: Net income (loss) from continuing operations attributable to non-controlling interests in consolidated subsidiaries | — | — | — | — | |||||||||||||||||||
Less: Dividends on preferred shares | — | — | 6,791 | 6,791 | |||||||||||||||||||
Net income (loss) attributable to shareholders from continuing operations | $ | 51,061 | $ | 15,826 | $ | (77,825) | $ | (10,938) |
Three Months Ended September 30, 2022 | |||||||||||||||||||||||
Aviation Leasing | Aerospace Products | Corporate and Other | Total | ||||||||||||||||||||
Adjusted EBITDA | $ | 95,994 | $ | 18,560 | $ | (5,691) | $ | 108,863 | |||||||||||||||
Add: Non-controlling share of Adjusted EBITDA | — | ||||||||||||||||||||||
Add: Equity in losses of unconsolidated entities | (358) | ||||||||||||||||||||||
Less: Pro-rata share of Adjusted EBITDA from unconsolidated entities | 241 | ||||||||||||||||||||||
Less: Interest expense and dividends on preferred shares | (46,962) | ||||||||||||||||||||||
Less: Depreciation and amortization expense | (41,329) | ||||||||||||||||||||||
Less: Incentive allocations | — | ||||||||||||||||||||||
Less: Asset impairment charges | (4,495) | ||||||||||||||||||||||
Less: Changes in fair value of non-hedge derivative instruments | — | ||||||||||||||||||||||
Less: Losses on the modification or extinguishment of debt and capital lease obligations | (19,861) | ||||||||||||||||||||||
Less: Acquisition and transaction expenses | (2,848) | ||||||||||||||||||||||
Less: Equity-based compensation expense | — | ||||||||||||||||||||||
Less: Provision for income taxes | (4,189) | ||||||||||||||||||||||
Net loss attributable to shareholders from continuing operations | $ | (10,938) |
Nine Months Ended September 30, 2022 | Three Months Ended September 30, 2022 | ||||||||||||||||||||||||||||||||||||||
Aviation Leasing | Aerospace Products | Corporate and Other | Total | Aviation Leasing | Aerospace Products | Corporate and Other | Total | ||||||||||||||||||||||||||||||||
Revenues | Revenues | ||||||||||||||||||||||||||||||||||||||
Africa | $ | 250 | $ | 850 | $ | — | $ | 1,100 | Africa | $ | 250 | $ | — | $ | — | $ | 250 | ||||||||||||||||||||||
Asia | 60,111 | 2,601 | — | 62,712 | Asia | 23,496 | 1,200 | 12,116 | 36,812 | ||||||||||||||||||||||||||||||
Europe | 94,751 | 26,410 | — | 121,161 | Europe | 41,869 | 15,511 | — | 57,380 | ||||||||||||||||||||||||||||||
North America | 130,362 | 64,350 | — | 194,712 | North America | 90,183 | 36,690 | — | 126,873 | ||||||||||||||||||||||||||||||
South America | 32,520 | — | — | 32,520 | South America | 9,050 | — | — | 9,050 | ||||||||||||||||||||||||||||||
Total revenues | $ | 317,994 | $ | 94,211 | $ | — | $ | 412,205 | |||||||||||||||||||||||||||||||
Total | Total | $ | 164,848 | $ | 53,401 | $ | 12,116 | $ | 230,365 |
Nine Months Ended September 30, 2022 | |||||||||||||||||||||||
Aviation Leasing | Aerospace Products | Corporate and Other | Total | ||||||||||||||||||||
Revenues | |||||||||||||||||||||||
Lease income | $ | 111,648 | $ | — | $ | 17,515 | $ | 129,163 | |||||||||||||||
Maintenance revenue | 112,171 | — | — | 112,171 | |||||||||||||||||||
Asset sales revenue | 85,488 | — | — | 85,488 | |||||||||||||||||||
Aerospace products revenue | — | 94,211 | — | 94,211 | |||||||||||||||||||
Other revenue | 8,687 | — | 4,400 | 13,087 | |||||||||||||||||||
Total revenues | 317,994 | 94,211 | 21,915 | 434,120 | |||||||||||||||||||
Expenses | |||||||||||||||||||||||
Cost of sales | 64,855 | 55,284 | — | 120,139 | |||||||||||||||||||
Operating expenses | 72,135 | 8,094 | 27,968 | 108,197 | |||||||||||||||||||
General and administrative | — | — | 11,821 | 11,821 | |||||||||||||||||||
Acquisition and transaction expenses | 624 | 15 | 7,701 | 8,340 | |||||||||||||||||||
Management fees and incentive allocation to affiliate | — | — | 4 | 4 | |||||||||||||||||||
Depreciation and amortization | 109,147 | 178 | 6,136 | 115,461 | |||||||||||||||||||
Asset impairment | 128,171 | — | — | 128,171 | |||||||||||||||||||
Interest expense | — | — | 132,197 | 132,197 | |||||||||||||||||||
Total expenses | 374,932 | 63,571 | 185,827 | 624,330 | |||||||||||||||||||
Other income (expense) | |||||||||||||||||||||||
Equity in income (losses) of unconsolidated entities | 753 | (878) | — | (125) | |||||||||||||||||||
Gain on sale of assets, net | 61,371 | 18,562 | — | 79,933 | |||||||||||||||||||
Loss on extinguishment of debt | — | — | (19,861) | (19,861) | |||||||||||||||||||
Other income (expense) | 245 | — | (37) | 208 | |||||||||||||||||||
Total other income (expense) | 62,369 | 17,684 | (19,898) | 60,155 | |||||||||||||||||||
Income (loss) before income taxes | 5,431 | 48,324 | (183,810) | (130,055) | |||||||||||||||||||
Provision for income taxes | 2,116 | 5,055 | 186 | 7,357 | |||||||||||||||||||
Net income (loss) | 3,315 | 43,269 | (183,996) | (137,412) | |||||||||||||||||||
Less: Net income (loss) attributable to non-controlling interests in consolidated subsidiaries | — | — | — | — | |||||||||||||||||||
Less: Dividends on preferred shares | — | — | 20,373 | 20,373 | |||||||||||||||||||
Net income (loss) attributable to shareholders from continuing operations | $ | 3,315 | $ | 43,269 | $ | (204,369) | $ | (157,785) |
Three Months Ended September 30, 2021 | ||||||||||||||||
Aviation Leasing | Aerospace Products | Corporate and Other | Total | |||||||||||||
Revenues | $ | 86,208 | $ | 7,730 | $ | — | $ | 93,938 | ||||||||
Expenses | ||||||||||||||||
Operating expenses | 7,282 | 1,774 | 1,074 | 10,130 | ||||||||||||
Cost of sales | — | 5,367 | — | 5,367 | ||||||||||||
General and administrative | — | — | 2,862 | 2,862 | ||||||||||||
Acquisition and transaction expenses | 234 | — | 898 | 1,132 | ||||||||||||
Management fees and incentive allocation to affiliate | — | — | 2,116 | 2,116 | ||||||||||||
Depreciation and amortization | 34,718 | 40 | 67 | 34,825 | ||||||||||||
Asset impairment | 859 | — | — | 859 | ||||||||||||
Interest expense | — | — | 584 | 584 | ||||||||||||
Total expenses | 43,093 | 7,181 | 7,601 | 57,875 | ||||||||||||
Other income (expense) | ||||||||||||||||
Equity in losses of unconsolidated entities | — | (369 | ) | — | (369 | ) | ||||||||||
Gain on sale of assets, net | 10,961 | 1,724 | — | 12,685 | ||||||||||||
Other expense | (1,341 | ) | — | — | (1,341 | ) | ||||||||||
Total other income | 9,620 | 1,355 | — | 10,975 | ||||||||||||
Income (loss) before income taxes | 52,735 | 1,904 | (7,601 | ) | 47,038 | |||||||||||
Provision for (benefit from) income taxes | 610 | (110 | ) | — | 500 | |||||||||||
Net income (loss) | $ | 52,125 | $ | 2,014 | $ | (7,601 | ) | $ | 46,538 |
Nine Months Ended September 30, 2022 | |||||||||||||||||||||||
Aviation Leasing | Aerospace Products | Corporate and Other | Total | ||||||||||||||||||||
Adjusted EBITDA | $ | 273,788 | $ | 48,685 | $ | (17,915) | $ | 304,558 | |||||||||||||||
Add: Non-controlling share of Adjusted EBITDA | — | ||||||||||||||||||||||
Add: Equity in losses of unconsolidated entities | (125) | ||||||||||||||||||||||
Less: Pro-rata share of Adjusted EBITDA from unconsolidated entities | (165) | ||||||||||||||||||||||
Less: Interest expense and dividends on preferred shares | (152,570) | ||||||||||||||||||||||
Less: Depreciation and amortization expense | (145,754) | ||||||||||||||||||||||
Less: Incentive allocations | — | ||||||||||||||||||||||
Less: Asset impairment charges | (128,171) | ||||||||||||||||||||||
Less: Changes in fair value of non-hedge derivative instruments | — | ||||||||||||||||||||||
Less: Losses on the modification or extinguishment of debt and capital lease obligations | (19,861) | ||||||||||||||||||||||
Less: Acquisition and transaction expenses | (8,340) | ||||||||||||||||||||||
Less: Equity-based compensation expense | — | ||||||||||||||||||||||
Less: Provision for income taxes | (7,357) | ||||||||||||||||||||||
Net loss attributable to shareholders from continuing operations | $ | (157,785) |
Three Months Ended September 30, 2021 | ||||||||||||||||
Aviation Leasing | Aerospace Products | Corporate and Other | Total | |||||||||||||
Adjusted EBITDA | $ | 94,990 | $ | 2,001 | $ | (6,052 | ) | $ | 90,939 | |||||||
Add: Equity in losses of unconsolidated entities | (369 | ) | ||||||||||||||
Less: Pro-rata share of Adjusted EBITDA from unconsolidated entities | 312 | |||||||||||||||
Less: Interest expense | (584 | ) | ||||||||||||||
Less: Depreciation and amortization expense | (41,269 | ) | ||||||||||||||
Less: Asset impairment charges | (859 | ) | ||||||||||||||
Less: Acquisition and transaction expenses | (1,132 | ) | ||||||||||||||
Less: Provision for income taxes | (500 | ) | ||||||||||||||
Net income attributable to shareholders | $ | 46,538 |
Three Months Ended September 30, 2021 | ||||||||||||||||
Aviation Leasing | Aerospace Products | Corporate and Other | Total | |||||||||||||
Revenues | ||||||||||||||||
Asia | $ | 36,420 | $ | — | $ | — | $ | 36,420 | ||||||||
Europe | 35,709 | — | — | 35,709 | ||||||||||||
North America | 10,422 | 7,730 | — | 18,152 | ||||||||||||
South America | 3,657 | — | — | 3,657 | ||||||||||||
Total revenues | $ | 86,208 | $ | 7,730 | $ | — | $ | 93,938 |
Nine Months Ended September 30, 2021 | ||||||||||||||||
Aviation Leasing | Aerospace Products | Corporate and Other | Total | |||||||||||||
Revenues | $ | 215,198 | $ | 13,284 | $ | — | $ | 228,482 | ||||||||
Expenses | ||||||||||||||||
Operating expenses | 14,177 | 3,519 | 2,945 | �� | 20,641 | |||||||||||
Cost of sales | — | 8,577 | — | 8,577 | ||||||||||||
General and administrative | — | — | 7,166 | 7,166 | ||||||||||||
Acquisition and transaction expenses | 804 | — | 2,906 | 3,710 | ||||||||||||
Management fees and incentive allocation to affiliate | — | — | 7,027 | 7,027 | ||||||||||||
Depreciation and amortization | 101,992 | 40 | 162 | 102,194 | ||||||||||||
Asset impairment | 3,048 | — | — | 3,048 | ||||||||||||
Interest expense | — | — | 1,734 | 1,734 | ||||||||||||
Total expenses | 120,021 | 12,136 | 21,940 | 154,097 | ||||||||||||
Other (expense) income | ||||||||||||||||
Equity in losses of unconsolidated entities | — | (1,050 | ) | — | (1,050 | ) | ||||||||||
Gain on sale of assets, net | 15,751 | 1,716 | — | 17,467 | ||||||||||||
Other expense | (717 | ) | — | — | (717 | ) | ||||||||||
Total other income | 15,034 | 666 | — | 15,700 | ||||||||||||
Income (loss) before income taxes | 110,211 | 1,814 | (21,940 | ) | 90,085 | |||||||||||
Provision (benefit from) for income taxes | 1,048 | (11 | ) | — | 1,037 | |||||||||||
Net income (loss) attributable to shareholders | $ | 109,163 | $ | 1,825 | $ | (21,940 | ) | $ | 89,048 |
Nine Months Ended September 30, 2021 | ||||||||||||||||
Aviation Leasing | Aerospace Products | Corporate and Other | Total | |||||||||||||
Adjusted EBITDA | $ | 237,404 | $ | 1,998 | $ | (17,138 | ) | $ | 222,264 | |||||||
Add: Equity in losses of unconsolidated entities | (1,050 | ) | ||||||||||||||
Less: Pro-rata share of Adjusted EBITDA from unconsolidated entities | 906 | |||||||||||||||
Less: Interest expense | (1,734 | ) | ||||||||||||||
Less: Depreciation and amortization expense | (123,543 | ) | ||||||||||||||
Less: Asset impairment charges | (3,048 | ) | ||||||||||||||
Less: Acquisition and transaction expenses | (3,710 | ) | ||||||||||||||
Less: Provision for income taxes | (1,037 | ) | ||||||||||||||
Net income attributable to shareholders | $ | 89,048 |
Nine Months Ended September 30, 2021 | ||||||||||||||||
Aviation Leasing | Aerospace Products | Corporate and Other | Total | |||||||||||||
Revenues | ||||||||||||||||
Africa | $ | 235 | $ | — | $ | — | $ | 235 | ||||||||
Asia | 93,925 | — | — | 93,925 | ||||||||||||
Europe | 88,296 | 812 | — | 89,108 | ||||||||||||
North America | 26,630 | 12,472 | — | 39,102 | ||||||||||||
South America | 6,112 | — | — | 6,112 | ||||||||||||
Total revenues | $ | 215,198 | $ | 13,284 | $ | — | $ | 228,482 |
Nine Months Ended September 30, 2022 | |||||||||||||||||||||||
Aviation Leasing | Aerospace Products | Corporate and Other | Total | ||||||||||||||||||||
Revenues | |||||||||||||||||||||||
Africa | $ | 250 | $ | 850 | $ | — | $ | 1,100 | |||||||||||||||
Asia | 60,111 | 2,601 | 21,915 | 84,627 | |||||||||||||||||||
Europe | 94,751 | 26,410 | — | 121,161 | |||||||||||||||||||
North America | 130,362 | 64,350 | — | 194,712 | |||||||||||||||||||
South America | 32,520 | — | — | 32,520 | |||||||||||||||||||
Total | $ | 317,994 | $ | 94,211 | $ | 21,915 | $ | 434,120 |
September 30, 2022 | ||||
Total | ||||
Leasing equipment, net | ||||
Africa | $ | 17,776 | ||
Asia | 222,830 | |||
Europe | 602,833 | |||
North America | 391,219 | |||
South America | 324,917 | |||
Total leasing equipment, net | $ | 1,559,575 |
December 31, 2021 | ||||
Total | ||||
Leasing equipment, net | ||||
Asia | $ | 365,331 | ||
Europe | 839,555 | |||
North America | 263,718 | |||
South America | 245,532 | |||
Total leasing equipment, net | $ | 1,714,136 |
September 30, 2023 | December 31, 2022 | ||||||||||
Property, plant and equipment and leasing equipment, net | |||||||||||
Africa | $ | 12,565 | $ | 7,952 | |||||||
Asia | 441,186 | 383,378 | |||||||||
Europe | 844,603 | 821,840 | |||||||||
North America | 418,268 | 424,617 | |||||||||
South America | 221,030 | 285,780 | |||||||||
Total | $ | 1,937,652 | $ | 1,923,567 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
(in thousands, except share data) | 2022 | 2021 | 2022 | 2021 | ||||||||||||
Net income attributable to shareholders | $ | 58,798 | $ | 46,538 | $ | 25,302 | $ | 89,048 | ||||||||
Weighted average shares outstanding: | ||||||||||||||||
Basic | 105.2 | 100.0 | 103.5 | 100.0 | ||||||||||||
Diluted | 105.2 | 100.0 | 103.5 | 100.0 | ||||||||||||
Basic and Diluted Net earnings per share | $ | 558.92 | $ | 465.38 | $ | 244.46 | $ | 890.48 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
(in thousands, except share and per share data) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
Net income (loss) from continuing operations | $ | 41,307 | $ | (4,147) | $ | 125,457 | $ | (137,412) | |||||||||||||||
Net loss from discontinued operations, net of income taxes | — | (14,782) | — | (101,416) | |||||||||||||||||||
Net income (loss) | $ | 41,307 | $ | (18,929) | 125,457 | (238,828) | |||||||||||||||||
Less: Net loss attributable to non-controlling interests in consolidated subsidiaries: | |||||||||||||||||||||||
Continuing operations | — | — | — | — | |||||||||||||||||||
Discontinued operations | — | (2,871) | — | (18,817) | |||||||||||||||||||
Less: Dividends on preferred shares | 8,334 | 6,791 | 23,460 | 20,373 | |||||||||||||||||||
Net income (loss) attributable to shareholders | $ | 32,973 | $ | (22,849) | $ | 101,997 | $ | (240,384) | |||||||||||||||
Weighted Average Common Shares Outstanding - Basic (1) | 99,927,594 | 99,378,771 | 99,796,736 | 99,372,016 | |||||||||||||||||||
Weighted Average Common Shares Outstanding - Diluted (1) | 100,482,309 | 99,378,771 | 100,269,203 | 99,372,016 | |||||||||||||||||||
Earnings (loss) per share: | |||||||||||||||||||||||
Basic | |||||||||||||||||||||||
Continuing operations | $ | 0.33 | $ | (0.11) | $ | 1.02 | $ | (1.59) | |||||||||||||||
Discontinued operations | $ | — | $ | (0.12) | $ | — | $ | (0.83) | |||||||||||||||
Diluted | |||||||||||||||||||||||
Continuing operations | $ | 0.33 | $ | (0.11) | $ | 1.02 | $ | (1.59) | |||||||||||||||
Discontinued operations | $ | — | $ | (0.12) | $ | — | $ | (0.83) |
September 30, 2022 | ||||
2022 | $ | 203 | ||
2023 | 831 | |||
2024 | 858 | |||
2025 | 864 | |||
2026 | 321 | |||
Thereafter | — | |||
Total | $ | 3,077 |
Three Months Ended September 30, | Change | Nine Months Ended September 30, | Change | ||||||||||||||||||||||||||||||||
(in thousands) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||||||||||
Revenues | |||||||||||||||||||||||||||||||||||
Lease income | $ | 45,622 | $ | 50,198 | $ | (4,576) | $ | 161,141 | $ | 129,163 | $ | 31,978 | |||||||||||||||||||||||
Maintenance revenue | 63,925 | 35,507 | 28,418 | 141,131 | 112,171 | 28,960 | |||||||||||||||||||||||||||||
Asset sales revenue | 72,990 | 85,488 | (12,498) | 283,167 | 85,488 | 197,679 | |||||||||||||||||||||||||||||
Aerospace products revenue | 107,085 | 53,401 | 53,684 | 260,273 | 94,211 | 166,062 | |||||||||||||||||||||||||||||
Other revenue | 1,474 | 5,771 | (4,297) | 12,447 | 13,087 | (640) | |||||||||||||||||||||||||||||
Total revenues | 291,096 | 230,365 | 60,731 | 858,159 | 434,120 | 424,039 | |||||||||||||||||||||||||||||
Expenses | |||||||||||||||||||||||||||||||||||
Cost of sales | 116,707 | 95,948 | 20,759 | 366,909 | 120,139 | 246,770 | |||||||||||||||||||||||||||||
Operating expenses | 33,887 | 27,393 | 6,494 | 81,218 | 108,197 | (26,979) | |||||||||||||||||||||||||||||
General and administrative | 3,015 | 3,354 | (339) | 10,270 | 11,821 | (1,551) | |||||||||||||||||||||||||||||
Acquisition and transaction expenses | 4,261 | 2,848 | 1,413 | 10,195 | 8,340 | 1,855 | |||||||||||||||||||||||||||||
Management fees and incentive allocation to affiliate | 4,577 | 4 | 4,573 | 13,137 | 4 | 13,133 | |||||||||||||||||||||||||||||
Depreciation and amortization | 43,959 | 34,853 | 9,106 | 123,399 | 115,461 | 7,938 | |||||||||||||||||||||||||||||
Asset impairment | — | 4,495 | (4,495) | 1,220 | 128,171 | (126,951) | |||||||||||||||||||||||||||||
Interest expense | 40,185 | 40,171 | 14 | 117,976 | 132,197 | (14,221) | |||||||||||||||||||||||||||||
Total expenses | 246,591 | 209,066 | 37,525 | 724,324 | 624,330 | 99,994 | |||||||||||||||||||||||||||||
Other income (expense) | |||||||||||||||||||||||||||||||||||
Equity in earnings (losses) of unconsolidated entities | 46 | (358) | 404 | (1,669) | (125) | (1,544) | |||||||||||||||||||||||||||||
Gain on sale of assets, net | — | — | — | — | 79,933 | (79,933) | |||||||||||||||||||||||||||||
Loss on extinguishment of debt | — | (19,861) | 19,861 | — | (19,861) | 19,861 | |||||||||||||||||||||||||||||
Other income (expense) | 461 | (1,038) | 1,499 | 877 | 208 | 669 | |||||||||||||||||||||||||||||
Total other income (expense) | 507 | (21,257) | 21,764 | (792) | 60,155 | (60,947) | |||||||||||||||||||||||||||||
Income (loss) before income taxes | 45,012 | 42 | 44,970 | 133,043 | (130,055) | 263,098 | |||||||||||||||||||||||||||||
Provision for income taxes | 3,705 | 4,189 | (484) | 7,586 | 7,357 | 229 | |||||||||||||||||||||||||||||
Net income (loss) from continued operations | 41,307 | (4,147) | 45,454 | 125,457 | (137,412) | 262,869 | |||||||||||||||||||||||||||||
Net loss from discontinued operations, net of income taxes | — | (14,782) | 14,782 | — | (101,416) | 101,416 | |||||||||||||||||||||||||||||
Net income (loss) | 41,307 | (18,929) | 60,236 | 125,457 | (238,828) | 364,285 | |||||||||||||||||||||||||||||
Less: Net loss attributable to non-controlling interest in consolidated subsidiaries: | |||||||||||||||||||||||||||||||||||
Continued operations | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Discontinued operations | — | (2,871) | 2,871 | — | (18,817) | 18,817 | |||||||||||||||||||||||||||||
Less: Dividends on preferred shares | 8,334 | 6,791 | 1,543 | 23,460 | 20,373 | 3,087 | |||||||||||||||||||||||||||||
Net income (loss) attributable to shareholders from continuing operations | $ | 32,973 | $ | (22,849) | $ | 55,822 | $ | 101,997 | $ | (240,384) | $ | 342,381 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||
(in thousands) | 2022 | 2021 | Change | 2022 | 2021 | Change | ||||||||||||||||||
Revenues | ||||||||||||||||||||||||
Lease income | $ | 40,273 | $ | 40,392 | $ | (119 | ) | $ | 111,316 | $ | 120,389 | $ | (9,073 | ) | ||||||||||
Maintenance revenue | 35,507 | 40,252 | (4,745 | ) | 112,171 | 87,763 | 24,408 | |||||||||||||||||
Finance lease income | 119 | 439 | (320 | ) | 332 | 1,285 | (953 | ) | ||||||||||||||||
Aerospace products revenue | 53,401 | 7,730 | 45,671 | 94,211 | 13,284 | 80,927 | ||||||||||||||||||
Asset sales revenue | 85,488 | — | 85,488 | 85,488 | — | 85,488 | ||||||||||||||||||
Other revenue | 3,461 | 5,125 | (1,664 | ) | 8,687 | 5,761 | 2,926 | |||||||||||||||||
Total revenues | 218,249 | 93,938 | 124,311 | 412,205 | 228,482 | 183,723 | ||||||||||||||||||
Expenses | ||||||||||||||||||||||||
Operating expenses | 14,612 | 10,130 | 4,482 | 83,651 | 20,641 | 63,010 | ||||||||||||||||||
Cost of sales | 95,948 | 5,367 | 90,581 | 120,139 | 8,577 | 111,562 | ||||||||||||||||||
General and administrative | 3,354 | 2,862 | 492 | 9,125 | 7,166 | 1,959 | ||||||||||||||||||
Acquisition and transaction expenses | 2,848 | 1,132 | 1,716 | 5,449 | 3,710 | 1,739 | ||||||||||||||||||
Management fees and incentive allocation to affiliate | 539 | 2,116 | (1,577 | ) | 4,692 | 7,027 | (2,335 | ) | ||||||||||||||||
Depreciation and amortization | 32,877 | 34,825 | (1,948 | ) | 106,567 | 102,194 | 4,373 | |||||||||||||||||
Asset impairment | 4,495 | 859 | 3,636 | 128,171 | 3,048 | 125,123 | ||||||||||||||||||
Interest expense | 644 | 584 | 60 | 1,910 | 1,734 | 176 | ||||||||||||||||||
Total expenses | 155,317 | 57,875 | 97,442 | 459,704 | 154,097 | 305,607 | ||||||||||||||||||
Other (expense) income | ||||||||||||||||||||||||
Equity in losses of unconsolidated entities | (358 | ) | (369 | ) | 11 | (125 | ) | (1,050 | ) | 925 | ||||||||||||||
Gain on sale of assets, net | — | 12,685 | (12,685 | ) | 79,933 | 17,467 | 62,466 | |||||||||||||||||
Other income (expense) | 42 | (1,341 | ) | 1,383 | 245 | (717 | ) | 962 | ||||||||||||||||
Total other (expense) income | (316 | ) | 10,975 | (11,291 | ) | 80,053 | 15,700 | 64,353 | ||||||||||||||||
Income before income taxes | 62,616 | 47,038 | 15,578 | 32,554 | 90,085 | (57,531 | ) | |||||||||||||||||
Provision for income taxes | 3,818 | 500 | 3,318 | 7,252 | 1,037 | 6,215 | ||||||||||||||||||
Net income attributable to shareholders | 58,798 | 46,538 | 12,260 | 25,302 | 89,048 | (63,746 | ) |
Three Months Ended September 30, | Change | Nine Months Ended September 30, | Change | ||||||||||||||||||||||||||||||||
(in thousands) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||||||||||
Net income (loss) attributable to shareholders from continuing operations | $ | 32,973 | $ | (10,938) | $ | 43,911 | $ | 101,997 | $ | (157,785) | $ | 259,782 | |||||||||||||||||||||||
Add: Provision for income taxes | 3,705 | 4,189 | (484) | 7,586 | 7,357 | 229 | |||||||||||||||||||||||||||||
Add: Equity-based compensation expense | 510 | — | 510 | 1,128 | — | 1,128 | |||||||||||||||||||||||||||||
Add: Acquisition and transaction expenses | 4,261 | 2,848 | 1,413 | 10,195 | 8,340 | 1,855 | |||||||||||||||||||||||||||||
Add: Losses on the modification or extinguishment of debt and capital lease obligations | — | 19,861 | (19,861) | — | 19,861 | (19,861) | |||||||||||||||||||||||||||||
Add: Changes in fair value of non-hedge derivative instruments | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Add: Asset impairment charges | — | 4,495 | (4,495) | 1,220 | 128,171 | (126,951) | |||||||||||||||||||||||||||||
Add: Incentive allocations | 4,274 | — | 4,274 | 12,540 | — | 12,540 | |||||||||||||||||||||||||||||
Add: Depreciation and amortization expense (1) | 59,380 | 41,329 | 18,051 | 157,084 | 145,754 | 11,330 | |||||||||||||||||||||||||||||
Add: Interest expense and dividends on preferred shares | 48,519 | 46,962 | 1,557 | 141,436 | 152,570 | (11,134) | |||||||||||||||||||||||||||||
Add: Pro-rata share of Adjusted EBITDA from unconsolidated entities (2) | 642 | (241) | 883 | 96 | 165 | (69) | |||||||||||||||||||||||||||||
Less: Equity in (earnings) losses of unconsolidated entities | (46) | 358 | (404) | 1,669 | 125 | 1,544 | |||||||||||||||||||||||||||||
Less: Non-controlling share of Adjusted EBITDA | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Adjusted EBITDA (non-GAAP) | $ | 154,218 | $ | 108,863 | $ | 45,355 | $ | 434,951 | $ | 304,558 | $ | 130,393 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||
(in thousands) | 2022 | 2021 | Change | 2022 | 2021 | Change | ||||||||||||||||||
Net income attributable to shareholders | $ | 58,798 | $ | 46,538 | $ | 12,260 | $ | 25,302 | $ | 89,048 | $ | (63,746 | ) | |||||||||||
Add: Provision for income taxes | 3,818 | 500 | 3,318 | 7,252 | 1,037 | 6,215 | ||||||||||||||||||
Add: Acquisition and transaction expenses | 2,848 | 1,132 | 1,716 | 5,449 | 3,710 | 1,739 | ||||||||||||||||||
Add: Asset impairment charges | 4,495 | 859 | 3,636 | 128,171 | 3,048 | 125,123 | ||||||||||||||||||
Add: Depreciation and amortization expense (1) | 39,353 | 41,269 | (1,916 | ) | 136,860 | 123,543 | 13,317 | |||||||||||||||||
Add: Interest expense | 644 | 584 | 60 | 1,910 | 1,734 | 176 | ||||||||||||||||||
Add: Pro-rata share of Adjusted EBITDA from unconsolidated entities (2) | (241 | ) | (312 | ) | 71 | 165 | (906 | ) | 1,071 | |||||||||||||||
Less: Equity in losses of unconsolidated entities | 358 | 369 | (11 | ) | 125 | 1,050 | (925 | ) | ||||||||||||||||
Adjusted EBITDA (non-GAAP) | $ | 110,073 | $ | 90,939 | $ | 19,134 | $ | 305,234 | $ | 222,264 | $ | 82,970 |
Aviation Assets | Widebody | Narrowbody | Total | ||||||||||||||
Aircraft | |||||||||||||||||
Assets at January 1, 2023 | 8 | 98 | 106 | ||||||||||||||
Purchases | — | 30 | 30 | ||||||||||||||
Sales | (2) | (9) | (11) | ||||||||||||||
Transfers | (1) | (32) | (33) | ||||||||||||||
Assets at September 30, 2023 | 5 | 87 | 92 | ||||||||||||||
Engines | |||||||||||||||||
Assets at January 1, 2023 | 40 | 184 | 224 | ||||||||||||||
Purchases | 4 | 64 | 68 | ||||||||||||||
Sales | (10) | (18) | (28) | ||||||||||||||
Transfers | 2 | (7) | (5) | ||||||||||||||
Assets at September 30, 2023 | 36 | 223 | 259 |
Aviation Leasing Assets | Widebody | Narrowbody | Total | |||||||||
Aircraft | ||||||||||||
Assets at January 1, 2022 | 13 | 95 | 108 | |||||||||
Purchases | 1 | 22 | 23 | |||||||||
Sales | (3 | ) | (2 | ) | (5 | ) | ||||||
Transfers | (2 | ) | (28 | ) | (30 | ) | ||||||
Assets at September 30, 2022 | 9 | 87 | 96 | |||||||||
Engines | ||||||||||||
Assets at January 1, 2022 | 68 | 139 | 207 | |||||||||
Purchases | 2 | 43 | 45 | |||||||||
Sales | (26 | ) | (24 | ) | (50 | ) | ||||||
Transfers | 5 | 22 | 27 | |||||||||
Assets at September 30, 2022 | 49 | 180 | 229 |
Three Months Ended September 30, | Change | Nine Months Ended September 30, | Change | ||||||||||||||||||||||||||||||||
(in thousands) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||||||||||
Revenues | |||||||||||||||||||||||||||||||||||
Lease income | $ | 35,981 | $ | 40,392 | $ | (4,411) | $ | 132,978 | $ | 111,648 | $ | 21,330 | |||||||||||||||||||||||
Maintenance revenue | 63,925 | 35,507 | 28,418 | 141,131 | 112,171 | 28,960 | |||||||||||||||||||||||||||||
Asset sales revenue | 72,990 | 85,488 | (12,498) | 283,167 | 85,488 | 197,679 | |||||||||||||||||||||||||||||
Other revenue | 82 | 3,461 | (3,379) | 6,773 | 8,687 | (1,914) | |||||||||||||||||||||||||||||
Total revenues | 172,978 | 164,848 | 8,130 | 564,049 | 317,994 | 246,055 | |||||||||||||||||||||||||||||
Expenses | |||||||||||||||||||||||||||||||||||
Cost of sales | 55,398 | 64,855 | (9,457) | 217,190 | 64,855 | 152,335 | |||||||||||||||||||||||||||||
Operating expenses | 13,944 | 10,533 | 3,411 | 28,610 | 72,135 | (43,525) | |||||||||||||||||||||||||||||
Acquisition and transaction expenses | 2,329 | 247 | 2,082 | 4,960 | 624 | 4,336 | |||||||||||||||||||||||||||||
Depreciation and amortization | 41,141 | 32,728 | 8,413 | 114,994 | 109,147 | 5,847 | |||||||||||||||||||||||||||||
Asset impairment | — | 4,495 | (4,495) | 1,220 | 128,171 | (126,951) | |||||||||||||||||||||||||||||
Total expenses | 112,812 | 112,858 | (46) | 366,974 | 374,932 | (7,958) | |||||||||||||||||||||||||||||
Other income (expense) | |||||||||||||||||||||||||||||||||||
Equity in (losses) earnings of unconsolidated entities | (108) | (45) | (63) | (242) | 753 | (995) | |||||||||||||||||||||||||||||
Gain on sale of assets, net | — | — | — | — | 61,371 | (61,371) | |||||||||||||||||||||||||||||
Other income | 444 | 42 | 402 | 860 | 245 | 615 | |||||||||||||||||||||||||||||
Total other income (expense) | 336 | (3) | 339 | 618 | 62,369 | (61,751) | |||||||||||||||||||||||||||||
Income before income taxes | 60,502 | 51,987 | 8,515 | 197,693 | 5,431 | 192,262 | |||||||||||||||||||||||||||||
Provision for income taxes | 2,332 | 926 | 1,406 | 4,414 | 2,116 | 2,298 | |||||||||||||||||||||||||||||
Net income | 58,170 | 51,061 | 7,109 | 193,279 | 3,315 | 189,964 | |||||||||||||||||||||||||||||
Less: Net loss attributable to non-controlling interest in consolidated subsidiaries | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Net income attributable to shareholders from continuing operations | $ | 58,170 | $ | 51,061 | $ | 7,109 | $ | 193,279 | $ | 3,315 | $ | 189,964 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||
(in thousands) | 2022 | 2021 | Change | 2022 | 2021 | Change | ||||||||||||||||||
Revenues | ||||||||||||||||||||||||
Lease income | $ | 40,273 | $ | 40,392 | $ | (119 | ) | $ | 111,316 | $ | 120,389 | $ | (9,073 | ) | ||||||||||
Maintenance revenue | 35,507 | 40,252 | (4,745 | ) | 112,171 | 87,763 | 24,408 | |||||||||||||||||
Finance lease income | 119 | 439 | (320 | ) | 332 | 1,285 | (953 | ) | ||||||||||||||||
Asset sales revenue | 85,488 | — | 85,488 | 85,488 | — | 85,488 | ||||||||||||||||||
Other revenue | 3,461 | 5,125 | (1,664 | ) | 8,687 | 5,761 | 2,926 | |||||||||||||||||
Total revenues | 164,848 | 86,208 | 78,640 | 317,994 | 215,198 | 102,796 | ||||||||||||||||||
Expenses | ||||||||||||||||||||||||
Operating expenses | 10,533 | 7,282 | 3,251 | 72,135 | 14,177 | 57,958 | ||||||||||||||||||
Cost of sales | 64,855 | — | 64,855 | 64,855 | — | 64,855 | ||||||||||||||||||
Acquisition and transaction expenses | 247 | 234 | 13 | 624 | 804 | (180 | ) | |||||||||||||||||
Depreciation and amortization | 32,728 | 34,718 | (1,990 | ) | 106,180 | 101,992 | 4,188 | |||||||||||||||||
Asset impairment | 4,495 | 859 | 3,636 | 128,171 | 3,048 | 125,123 | ||||||||||||||||||
Total expenses | 112,858 | 43,093 | 69,765 | 371,965 | 120,021 | 251,944 | ||||||||||||||||||
Other (expense) income | ||||||||||||||||||||||||
Equity in (losses) earnings of unconsolidated entities | (45 | ) | — | (45 | ) | 753 | — | 753 | ||||||||||||||||
Gain on sale of assets, net | — | 10,961 | (10,961 | ) | 61,371 | 15,751 | 45,620 | |||||||||||||||||
Other income (expense) | 42 | (1,341 | ) | 1,383 | 245 | (717 | ) | 962 | ||||||||||||||||
Total other (expense) income | (3 | ) | 9,620 | (9,623 | ) | 62,369 | 15,034 | 47,335 | ||||||||||||||||
Income before income taxes | 51,987 | 52,735 | (748 | ) | 8,398 | 110,211 | (101,813 | ) | ||||||||||||||||
Provision for income taxes | 1,232 | 610 | 622 | 2,197 | 1,048 | 1,149 | ||||||||||||||||||
Net income attributable to shareholders | 50,755 | 52,125 | (1,370 | ) | 6,201 | 109,163 | (102,962 | ) |
Three Months Ended September 30, | Change | Nine Months Ended September 30, | Change | ||||||||||||||||||||||||||||||||
(in thousands) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||||||||||
Net income attributable to shareholders from continuing operations | $ | 58,170 | $ | 51,061 | $ | 7,109 | $ | 193,279 | $ | 3,315 | $ | 189,964 | |||||||||||||||||||||||
Add: Provision for income taxes | 2,332 | 926 | 1,406 | 4,414 | 2,116 | 2,298 | |||||||||||||||||||||||||||||
Add: Equity-based compensation expense | 105 | — | 105 | 232 | — | 232 | |||||||||||||||||||||||||||||
Add: Acquisition and transaction expenses | 2,329 | 247 | 2,082 | 4,960 | 624 | 4,336 | |||||||||||||||||||||||||||||
Add: Losses on the modification or extinguishment of debt and capital lease obligations | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Add: Changes in fair value of non-hedge derivative instruments | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Add: Asset impairment charges | — | 4,495 | (4,495) | 1,220 | 128,171 | (126,951) | |||||||||||||||||||||||||||||
Add: Incentive allocations | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Add: Depreciation and amortization expense (1) | 56,562 | 39,204 | 17,358 | 148,679 | 139,440 | 9,239 | |||||||||||||||||||||||||||||
Add: Interest expense and dividends on preferred shares | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Add: Pro-rata share of Adjusted EBITDA from unconsolidated entities (2) | (45) | 16 | (61) | (53) | 875 | (928) | |||||||||||||||||||||||||||||
Less: Equity in losses (earnings) of unconsolidated entities | 108 | 45 | 63 | 242 | (753) | 995 | |||||||||||||||||||||||||||||
Less: Non-controlling share of Adjusted EBITDA | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Adjusted EBITDA (non-GAAP) | $ | 119,561 | $ | 95,994 | $ | 23,567 | $ | 352,973 | $ | 273,788 | $ | 79,185 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||
(in thousands) | 2022 | 2021 | Change | 2022 | 2021 | Change | ||||||||||||||||||
Net income attributable to shareholders | $ | 50,755 | $ | 52,125 | $ | (1,370 | ) | $ | 6,201 | $ | 109,163 | $ | (102,962 | ) | ||||||||||
Add: Provision for income taxes | 1,232 | 610 | 622 | 2,197 | 1,048 | 1,149 | ||||||||||||||||||
Add: Acquisition and transaction expenses | 247 | 234 | 13 | 624 | 804 | (180 | ) | |||||||||||||||||
Add: Asset impairment charges | 4,495 | 859 | 3,636 | 128,171 | 3,048 | 125,123 | ||||||||||||||||||
Add: Depreciation and amortization expense (1) | 39,204 | 41,162 | (1,958 | ) | 136,473 | 123,341 | 13,132 | |||||||||||||||||
Add: Pro-rata share of Adjusted EBITDA from unconsolidated entities (2) | 16 | — | 16 | 875 | — | 875 | ||||||||||||||||||
Less: Equity in (earnings) losses of unconsolidated entities | 45 | — | 45 | (753 | ) | — | (753 | ) | ||||||||||||||||
Adjusted EBITDA (non-GAAP) | $ | 95,994 | $ | 94,990 | $ | 1,004 | $ | 273,788 | $ | 237,404 | $ | 36,384 |
Three Months Ended September 30, | Change | Nine Months Ended September 30, | Change | ||||||||||||||||||||||||||||||||
(in thousands) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||||||||||
Aerospace products revenue | $ | 107,085 | $ | 53,401 | $ | 53,684 | $ | 260,273 | $ | 94,211 | $ | 166,062 | |||||||||||||||||||||||
Expenses | |||||||||||||||||||||||||||||||||||
Cost of sales | 61,309 | 31,093 | 30,216 | 149,719 | 55,284 | 94,435 | |||||||||||||||||||||||||||||
Operating expenses | 5,947 | 3,491 | 2,456 | 12,838 | 8,094 | 4,744 | |||||||||||||||||||||||||||||
Acquisition and transaction expenses | 110 | 15 | 95 | 1,137 | 15 | 1,122 | |||||||||||||||||||||||||||||
Depreciation and amortization | 115 | 77 | 38 | 298 | 178 | 120 | |||||||||||||||||||||||||||||
Total expenses | 67,481 | 34,676 | 32,805 | 163,992 | 63,571 | 100,421 | |||||||||||||||||||||||||||||
Other income (expense) | |||||||||||||||||||||||||||||||||||
Equity in earnings (losses) of unconsolidated entities | 154 | (313) | 467 | (1,427) | (878) | (549) | |||||||||||||||||||||||||||||
Gain on sale of assets, net | — | — | — | — | 18,562 | (18,562) | |||||||||||||||||||||||||||||
Total other income (expense) | 154 | (313) | 467 | (1,427) | 17,684 | (19,111) | |||||||||||||||||||||||||||||
Income before income taxes | 39,758 | 18,412 | 21,346 | 94,854 | 48,324 | 46,530 | |||||||||||||||||||||||||||||
Provision for income taxes | 1,131 | 2,586 | (1,455) | 2,631 | 5,055 | (2,424) | |||||||||||||||||||||||||||||
Net income | 38,627 | 15,826 | 22,801 | 92,223 | 43,269 | 48,954 | |||||||||||||||||||||||||||||
Less: Net loss attributable to non-controlling interest in consolidated subsidiaries | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Net income attributable to shareholders from continuing operations | $ | 38,627 | $ | 15,826 | $ | 22,801 | $ | 92,223 | $ | 43,269 | $ | 48,954 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||
(in thousands) | 2022 | 2021 | Change | 2022 | 2021 | Change | ||||||||||||||||||
Aerospace products revenue | $ | 53,401 | $ | 7,730 | $ | 45,671 | $ | 94,211 | $ | 13,284 | $ | 80,927 | ||||||||||||
Expenses | ||||||||||||||||||||||||
Operating expenses | 3,491 | 1,774 | 1,717 | 8,094 | 3,519 | 4,575 | ||||||||||||||||||
Cost of sales | 31,093 | 5,367 | 25,726 | 55,284 | 8,577 | 46,707 | ||||||||||||||||||
Acquisition and transaction expenses | 15 | — | 15 | 15 | — | 15 | ||||||||||||||||||
Depreciation and amortization | 77 | 40 | 37 | 178 | 40 | 138 | ||||||||||||||||||
Total expenses | 34,676 | 7,181 | 27,495 | 63,571 | 12,136 | 51,435 | ||||||||||||||||||
Other (expense) income | ||||||||||||||||||||||||
Equity in losses of unconsolidated entities | (313 | ) | (369 | ) | 56 | (878 | ) | (1,050 | ) | 172 | ||||||||||||||
Gain on sale of assets, net | — | 1,724 | (1,724 | ) | 18,562 | 1,716 | 16,846 | |||||||||||||||||
Total other (expense) income | (313 | ) | 1,355 | (1,668 | ) | 17,684 | 666 | 17,018 | ||||||||||||||||
Income before income taxes | 18,412 | 1,904 | 16,508 | 48,324 | 1,814 | 46,510 | ||||||||||||||||||
Provision for (benefit from) income taxes | 2,586 | (110 | ) | 2,696 | 5,055 | (11 | ) | 5,066 | ||||||||||||||||
Net income attributable to shareholders | 15,826 | 2,014 | 13,812 | 43,269 | 1,825 | 41,444 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||
(in thousands) | 2022 | 2021 | Change | 2022 | 2021 | Change | ||||||||||||||||||
Net income attributable to shareholders | $ | 15,826 | $ | 2,014 | $ | 13,812 | $ | 43,269 | $ | 1,825 | $ | 41,444 | ||||||||||||
Add: Provision for (benefit from) income taxes | 2,586 | (110 | ) | 2,696 | 5,055 | (11 | ) | 5,066 | ||||||||||||||||
Add: Acquisition and transaction expenses | 15 | — | 15 | 15 | — | 15 | ||||||||||||||||||
Add: Depreciation and amortization expense | 77 | 40 | 37 | 178 | 40 | 138 | ||||||||||||||||||
Add: Pro-rata share of Adjusted EBITDA from unconsolidated entities (1) | (257 | ) | (312 | ) | 55 | (710 | ) | (906 | ) | 196 | ||||||||||||||
Less: Equity in losses of unconsolidated entities | 313 | 369 | (56 | ) | 878 | 1,050 | (172 | ) | ||||||||||||||||
Adjusted EBITDA (non-GAAP) | $ | 18,560 | $ | 2,001 | $ | 16,559 | $ | 48,685 | $ | 1,998 | $ | 46,687 |
Three Months Ended September 30, | Change | Nine Months Ended September 30, | Change | ||||||||||||||||||||||||||||||||
(in thousands) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||||||||||
Net income attributable to shareholders from continuing operations | $ | 38,627 | $ | 15,826 | $ | 22,801 | $ | 92,223 | $ | 43,269 | $ | 48,954 | |||||||||||||||||||||||
Add: Provision for income taxes | 1,131 | 2,586 | (1,455) | 2,631 | 5,055 | (2,424) | |||||||||||||||||||||||||||||
Add: Equity-based compensation expense | 70 | — | 70 | 155 | — | 155 | |||||||||||||||||||||||||||||
Add: Acquisition and transaction expenses | 110 | 15 | 95 | 1,137 | 15 | 1,122 | |||||||||||||||||||||||||||||
Add: Losses on the modification or extinguishment of debt and capital lease obligations | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Add: Changes in fair value of non-hedge derivative instruments | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Add: Asset impairment charges | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Add: Incentive allocations | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Add: Depreciation and amortization expense | 115 | 77 | 38 | 298 | 178 | 120 | |||||||||||||||||||||||||||||
Add: Interest expense and dividends on preferred shares | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Add: Pro-rata share of Adjusted EBITDA from unconsolidated entities (1) | 687 | (257) | 944 | 149 | (710) | 859 | |||||||||||||||||||||||||||||
Less: Equity in (earnings) losses of unconsolidated entities | (154) | 313 | (467) | 1,427 | 878 | 549 | |||||||||||||||||||||||||||||
Less: Non-controlling share of Adjusted EBITDA | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Adjusted EBITDA (non-GAAP) | $ | 40,586 | $ | 18,560 | $ | 22,026 | $ | 98,020 | $ | 48,685 | $ | 49,335 |
Three Months Ended September 30, | Change | Nine Months Ended September 30, | Change | ||||||||||||||||||||||||||||||||
(in thousands) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||||||||||
Revenues | |||||||||||||||||||||||||||||||||||
Lease income | $ | 9,641 | $ | 9,806 | $ | (165) | $ | 28,163 | $ | 17,515 | $ | 10,648 | |||||||||||||||||||||||
Other revenue | 1,392 | 2,310 | (918) | 5,674 | 4,400 | 1,274 | |||||||||||||||||||||||||||||
Total revenues | 11,033 | 12,116 | (1,083) | 33,837 | 21,915 | 11,922 | |||||||||||||||||||||||||||||
Expenses | |||||||||||||||||||||||||||||||||||
Operating expenses | 13,996 | 13,369 | 627 | 39,770 | 27,968 | 11,802 | |||||||||||||||||||||||||||||
General and administrative | 3,015 | 3,354 | (339) | 10,270 | 11,821 | (1,551) | |||||||||||||||||||||||||||||
Acquisition and transaction expenses | 1,822 | 2,586 | (764) | 4,098 | 7,701 | (3,603) | |||||||||||||||||||||||||||||
Management fees and incentive allocation to affiliate | 4,577 | 4 | 4,573 | 13,137 | 4 | 13,133 | |||||||||||||||||||||||||||||
Depreciation and amortization | 2,703 | 2,048 | 655 | 8,107 | 6,136 | 1,971 | |||||||||||||||||||||||||||||
Interest expense | 40,185 | 40,171 | 14 | 117,976 | 132,197 | (14,221) | |||||||||||||||||||||||||||||
Total expenses | 66,298 | 61,532 | 4,766 | 193,358 | 185,827 | 7,531 | |||||||||||||||||||||||||||||
Other income (expense) | |||||||||||||||||||||||||||||||||||
Loss on extinguishment of debt | — | (19,861) | 19,861 | — | (19,861) | 19,861 | |||||||||||||||||||||||||||||
Other income (expense) | 17 | (1,080) | 1,097 | 17 | (37) | 54 | |||||||||||||||||||||||||||||
Total other income (expense) | 17 | (20,941) | 20,958 | 17 | (19,898) | 19,915 | |||||||||||||||||||||||||||||
Loss before income taxes | (55,248) | (70,357) | 15,109 | (159,504) | (183,810) | 24,306 | |||||||||||||||||||||||||||||
Provision for income taxes | 242 | 677 | (435) | 541 | 186 | 355 | |||||||||||||||||||||||||||||
Net loss | (55,490) | (71,034) | 15,544 | (160,045) | (183,996) | 23,951 | |||||||||||||||||||||||||||||
Less: Net loss attributable to non-controlling interest in consolidated subsidiaries | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Less: Dividends on preferred shares | 8,334 | 6,791 | 1,543 | 23,460 | 20,373 | 3,087 | |||||||||||||||||||||||||||||
Net loss attributable to shareholders from continuing operations | $ | (63,824) | $ | (77,825) | $ | 14,001 | $ | (183,505) | $ | (204,369) | $ | 20,864 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||
(in thousands) | 2022 | 2021 | Change | 2022 | 2021 | Change | ||||||||||||||||||
Revenues | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||
Expenses | ||||||||||||||||||||||||
Operating expenses | 588 | 1,074 | (486 | ) | 3,422 | 2,945 | 477 | |||||||||||||||||
General and administrative | 3,354 | 2,862 | 492 | 9,125 | 7,166 | 1,959 | ||||||||||||||||||
Acquisition and transaction expenses | 2,586 | 898 | 1,688 | 4,810 | 2,906 | 1,904 | ||||||||||||||||||
Management fees and incentive allocation to affiliate | 539 | 2,116 | (1,577 | ) | 4,692 | 7,027 | (2,335 | ) | ||||||||||||||||
Depreciation and amortization | 72 | 67 | 5 | 209 | 162 | 47 | ||||||||||||||||||
Interest expense | 644 | 584 | 60 | 1,910 | 1,734 | 176 | ||||||||||||||||||
Total expenses | 7,783 | 7,601 | 182 | 24,168 | 21,940 | 2,228 | ||||||||||||||||||
Loss before income taxes | (7,783 | ) | (7,601 | ) | (182 | ) | (24,168 | ) | (21,940 | ) | (2,228 | ) | ||||||||||||
Provision for (benefit from) income taxes | — | — | — | — | — | — | ||||||||||||||||||
Net loss attributable to shareholders | (7,783 | ) | (7,601 | ) | (182 | ) | (24,168 | ) | (21,940 | ) | (2,228 | ) |
Three Months Ended September 30, | Change | Nine Months Ended September 30, | Change | ||||||||||||||||||||||||||||||||
(in thousands) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||||||||||
Net loss attributable to shareholders from continuing operations | $ | (63,824) | $ | (77,825) | $ | 14,001 | $ | (183,505) | $ | (204,369) | $ | 20,864 | |||||||||||||||||||||||
Add: Provision for income taxes | 242 | 677 | (435) | 541 | 186 | 355 | |||||||||||||||||||||||||||||
Add: Equity-based compensation expense | 335 | — | 335 | 741 | — | 741 | |||||||||||||||||||||||||||||
Add: Acquisition and transaction expenses | 1,822 | 2,586 | (764) | 4,098 | 7,701 | (3,603) | |||||||||||||||||||||||||||||
Add: Losses on the modification or extinguishment of debt and capital lease obligations | — | 19,861 | (19,861) | — | 19,861 | (19,861) | |||||||||||||||||||||||||||||
Add: Changes in fair value of non-hedge derivative instruments | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Add: Asset impairment charges | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Add: Incentive allocations | 4,274 | — | 4,274 | 12,540 | — | 12,540 | |||||||||||||||||||||||||||||
Add: Depreciation and amortization expense | 2,703 | 2,048 | 655 | 8,107 | 6,136 | 1,971 | |||||||||||||||||||||||||||||
Add: Interest expense and dividends on preferred shares | 48,519 | 46,962 | 1,557 | 141,436 | 152,570 | (11,134) | |||||||||||||||||||||||||||||
Add: Pro-rata share of Adjusted EBITDA from unconsolidated entities | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Less: Equity in (earnings) losses of unconsolidated entities | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Less: Non-controlling share of Adjusted EBITDA | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Adjusted EBITDA (non-GAAP) | $ | (5,929) | $ | (5,691) | $ | (238) | $ | (16,042) | $ | (17,915) | $ | 1,873 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||
(in thousands) | 2022 | 2021 | Change | 2022 | 2021 | Change | ||||||||||||||||||
Net loss attributable to shareholders | $ | (7,783 | ) | $ | (7,601 | ) | $ | (182 | ) | $ | (24,168 | ) | $ | (21,940 | ) | $ | (2,228 | ) | ||||||
Add: Acquisition and transaction expenses | 2,586 | 898 | 1,688 | 4,810 | 2,906 | 1,904 | ||||||||||||||||||
Add: Depreciation and amortization expense | 72 | 67 | 5 | 209 | 162 | 47 | ||||||||||||||||||
Add: Interest expense | 644 | 584 | 60 | 1,910 | 1,734 | 176 | ||||||||||||||||||
Adjusted EBITDA (non-GAAP) | $ | (4,481 | ) | $ | (6,052 | ) | $ | 1,571 | $ | (17,239 | ) | $ | (17,138 | ) | $ | (101 | ) |
Nine Months Ended September 30, | ||||||||
(in thousands) | 2022 | 2021 | ||||||
Cash Flow Data: | ||||||||
Net cash provided by operating activities | $ | 151,304 | $ | 131,828 | ||||
Net cash used in investing activities | (124,180 | ) | (239,446 | ) | ||||
Net cash (used in) provided by financing activities | (13,685 | ) | 108,318 |
Nine Months Ended September 30, | |||||||||||
(in thousands) | 2023 | 2022 | |||||||||
Cash Flow Data: | |||||||||||
Net cash provided by (used in) operating activities | $ | 116,766 | $ | (21,299) | |||||||
Net cash used in investing activities | (191,092) | (268,367) | |||||||||
Net cash provided by (used in) financing activities | 74,140 | (77,653) |
Item 3. Quantitative and Qualitative Disclosures About Market Risk |
Interest rate risk is the exposure to loss resulting from changes in the level of interest rates and the spread between different interest rates. Interest rate risk is highly sensitive to many factors, including the U.S. government’s monetary and tax policies, global economic factors and other factors beyond our control. We are exposed to changes in the level of interest rates and to changes in the relationship or spread between interest rates. Our primary interest rate exposure relates to our term loan arrangements. LIBOR and other indices which are deemed “benchmarks” are the subject of recent national, international, and other regulatory guidance and proposals for reform. The ICE Benchmark Administration ceased publication of one-week and two-month USD LIBOR settings after December 31, 2021 and the remaining USD LIBOR settings after June 30, 2023, other than certain USD LIBOR settings that are expected to continue to be published under a synthetic methodology until September 2024. In anticipation of LIBOR’s phase out, we amended our revolving credit facility to incorporate SOFR as the successor rate to LIBOR. We continue to monitor related reform proposals and evaluate the related risks; however, it is not possible to predict the effects of any of these developments, and any future initiatives to regulate, reform or change the manner of administration of LIBOR, SOFR or other benchmark indices could result in adverse consequences to the rate of interest payable and receivable on, market value of and market liquidity for financial instruments tied to variable interest rate indices. Our borrowing agreements generally require payments based on a variable interest rate index, such as SOFR. Therefore, to the extent our borrowing costs are not fixed, increases in interest rates may reduce our net income by increasing the cost of our debt without any corresponding increase in rents or cash flow from our leases. We may elect to manage our exposure to interest rate movements through the use of interest rate derivatives (interest rate swaps and caps). The following discussion about the potential effects of changes in interest rates is based on a sensitivity analysis, which models the effects of hypothetical interest rate shifts on our financial condition and results of operations. Although we believe a sensitivity analysis provides the most meaningful analysis permitted by the rules and regulations of the SEC, it is constrained by several factors, including the necessity to conduct the analysis based on a single point in time and by the inability to include the extraordinarily complex market reactions that normally would arise from the market shifts modeled. Although the following results of a sensitivity analysis for changes in interest rates may have some limited use as a benchmark, they should not be viewed as a forecast. This forward-looking disclosure also is selective in nature and addresses only the potential interest expense impacts on our financial instruments and, in particular, does not address the mark-to-market impact on our interest rate derivatives, if any. It also does not include a variety of other potential factors that could affect our business as a result of changes in interest rates. In addition, the following discussion does not take into account our Series A and Series B preferred shares, on which distributions currently accrue interest at a fixed rate but will accrue interest at a floating rate based on a certain variable interest rate index plus a spread from and after September 15, 2024. As of September 30, 2023, assuming we do not hedge our exposure to interest rate fluctuations related to our outstanding floating rate debt, a hypothetical 100-basis point increase/decrease in our variable interest rate on our borrowings would result in an increase of approximately $2.5 million or a decrease of approximately $2.5 million in interest expense over the next 12 months. Item 4. Controls and Procedures |
Item 1. Legal Proceedings |
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds |
Item 3. Defaults Upon Senior Securities |
Item 4. Mine Safety Disclosures |
Item 5. Other Information |
Exhibit No. | Description | ||||||||||
Agreement and Plan of Merger, dated as of August 12, 2022, by and among, FTAI, the Company and FTAI Aviation Merger Sub LLC (incorporated by reference to Annex A to FTAI’s Registration Statement on Form S-4, filed on October 11, 2022). | |||||||||||
Separation and Distribution Agreement, dated as of August 1, 2022, between FTAI Infrastructure Inc. and | |||||||||||
Amended and Restated Memorandum and Articles of Association of the Company (incorporated by reference to Exhibit 3.1 of the Company’s Current Report on Form 8-K, filed on November 14, 2022). | |||||||||||
Share Designation with respect to the 8.25% Fixed-to-Floating Series A Cumulative Perpetual Redeemable Preferred Shares (included as part of Exhibit 3.1 hereto). | |||||||||||
Share Designation with respect to the 8.00% Fixed-to-Floating Series B Cumulative Perpetual Redeemable Preferred Shares (included as part of Exhibit 3.1 hereto). | |||||||||||
Share Designation with respect to the 8.25% Fixed-Rate Reset Series C Cumulative Perpetual Redeemable Preferred Shares (included as part of Exhibit 3.1 hereto). | |||||||||||
Share Designation with respect to the 9.500% Fixed-Rate Reset Series D Cumulative Perpetual Redeemable Preferred Shares of FTAI Aviation Ltd. (incorporated by reference to Exhibit 4.1 of the Company’s Registration Statement on Form 8-A, filed on March 15, 2023). | |||||||||||
Form of Certificate representing the 8.25% Fixed-to-Floating Rate Series A Cumulative Perpetual Redeemable Preferred Shares of FTAI Aviation Ltd. (included as part of Exhibit 3.1 hereto). | |||||||||||
Form of Certificate representing the 8.00% Fixed-to-Floating Rate Series B Cumulative Perpetual Redeemable Preferred Shares of FTAI Aviation Ltd. (included as part of Exhibit 3.1 hereto). | |||||||||||
Form of Certificate representing the 8.25% Fixed-Rate Reset Series C Cumulative Perpetual Redeemable Preferred Shares of FTAI Aviation Ltd. (included as part of Exhibit 3.1 hereto). | |||||||||||
Form of certificate representing the 9.500% Fixed-Rate Reset Series D Cumulative Perpetual Redeemable Preferred Shares of FTAI Aviation Ltd. (incorporated by reference to Exhibit 4.2 of the Company’s Registration Statement on Form 8-A, filed on March 15, 2023). | |||||||||||
Indenture, dated September 18, 2018, between the Company and U.S. Bank National Association, as trustee, relating to the Company’s 6.50% senior unsecured notes due 2025 (incorporated by reference to Exhibit 4.1 of the Company’s Current Report on Form 8-K, filed on September 18, 2018). | |||||||||||
Form of global note representing the Company’s 6.50% senior unsecured notes due 2025 (included in Exhibit 4.1). | |||||||||||
First Supplemental Indenture, dated May 21, 2019, between the Company and U.S. Bank National Association, as trustee, relating to the Company’s 6.50% senior unsecured notes due 2025 (incorporated by reference to Exhibit 4.1 of the Company’s Current Report on Form 8-K, filed on May 21, 2019). | |||||||||||
Second Supplemental Indenture, dated December 23, 2020, between the Company and U.S. Bank National Association, as trustee, relating to the Company’s 6.50% senior unsecured notes due 2025 (incorporated by reference to Exhibit 4.1 of the Company’s Current Report on Form 8-K, filed on December 23, 2020). | |||||||||||
2025 Notes Guarantee, dated November 10, 2022 (incorporated by reference to Exhibit 4.1 of the Company’s Current Report on Form 8-K, filed on November 14, 2022). | |||||||||||
Indenture, dated April 12, 2021, between the Company and U.S. Bank National Association, as trustee, relating to the Company’s 5.50% senior unsecured notes due 2028 (incorporated by reference to Exhibit 4.1 to the Company’s Form 8-K, filed April 12, 2021). | |||||||||||
Form of global note representing the Company’s 5.50% senior unsecured notes due 2028 (included in Exhibit 4.6). | |||||||||||
First Supplemental Indenture, dated as of September 24, 2021, between the Company and U.S. Bank National Association, as trustee, relating to the Company’s 5.50% senior unsecured notes due 2028 (incorporated by reference to Exhibit 4.1 of the Company’s Current Report on Form 8-K, filed on September 24, 2021). | |||||||||||
2028 Notes Guarantee, dated November 10, 2022 (incorporated by reference to Exhibit 4.3 of the Company’s Current Report on Form 8-K, filed on November 14, 2022). | |||||||||||
Indenture, dated July 28, 2020, between the Company and U.S. Bank National Association, as trustee, relating to the Company’s 9.75% senior unsecured notes due 2027 (incorporated by reference to Exhibit 4.1 of the Company’s Current Report on Form 8-K, filed on July 28, 2020). | |||||||||||
Form of global note representing the Company’s 9.75% senior unsecured notes due 2027 (included in Exhibit 4.10). | |||||||||||
2027 Notes Guarantee, dated November 10, 2022 (incorporated by reference to Exhibit 4.2 of the Company’s Current Report on Form 8-K, filed on November 14, 2022). | |||||||||||
Revolver Guarantee, dated November 10, 2022 (incorporated by reference to Exhibit 4.4 of the Company’s Current Report on Form 8-K, filed on November 14, 2022). | |||||||||||
Description of Securities Registered under Section 12 of the Exchange Act. | |||||||||||
† | Management and Advisory Agreement, dated as of July 31, 2022, between the Company, FTAI Aviation Ltd., the Subsidiaries that are party thereto and FIG LLC (incorporated by reference to Exhibit 10.1 of the Company’s Current Report on Form 8-K, filed on August 1, 2022). | ||||||||||
Services and Profit Sharing Agreement, dated November 10, 2022, by and among FTAI Aviation Holdco Ltd., | |||||||||||
† | |||||||||||
Amended and Restated Registration Rights Agreement, dated November 10, 2022, by and among FTAI Aviation Ltd., | |||||||||||
† | FTAI Aviation Ltd. Nonqualified Stock Option and Incentive Award Plan, |
Exhibit No. | Description | ||||||||||
† | Form of FTAI Aviation Ltd. Director and Officer Indemnification Agreement (incorporated by reference to Exhibit 10.6 to the Company’s Registration Statement on Form S-4, filed on October 4, 2022). | ||||||||||
† | Form of Director Award Agreement pursuant to the FTAI Aviation Ltd. Nonqualified Stock Option and Incentive Plan (incorporated by reference to Exhibit 10.7 to the Company’s Registration Statement on Form S-4, filed on October 4, 2022). | ||||||||||
† | Form of Award Agreement under the FTAI Aviation Ltd. Nonqualified Stock Option and Incentive Award Plan (incorporated by reference to Exhibit 10.8 to the Company’s Registration Statement on Form S-4, filed on October 4, 2022). | ||||||||||
Trademark License Agreement, dated as of August 1, 2022, between Fortress Transportation and Infrastructure Investors LLC and FTAI Infrastructure Inc. (incorporated by reference to Exhibit 10.3 of the Company’s Current Report on Form 8-K, filed August 1, 2022). | |||||||||||
Second Amended and Restated Credit Agreement, dated as of September 20, 2022, between the Company, the lenders and issuing banks from time to time party thereto and JPMorgan Chase Bank, N.A., as administrative agent (incorporated by reference to Exhibit 10.1 of the Company's Current Report on Form 8-K, filed September 21, 2022). | |||||||||||
Amendment No. 1 to the Second Amended and Restated Credit Agreement, dated as of November 22, 2022, between the Company, the lenders and issuing banks from time to time party thereto and JPMorgan Chase Bank, N.A., as administrative agent (incorporated by reference to Exhibit 10.10 of the Company’s Annual Report on Form 10-K, filed February 27, 2023). | |||||||||||
Amendment No. 2 to the Second Amended and Restated Credit Agreement, dated as of April 10, 2023, between the Company, the lenders and issuing banks from time to time party thereto and JPMorgan Chase Bank, N.A., as administrative agent. | |||||||||||
Certification of Chief Executive Officer pursuant to Rule 13a-14(a)/15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |||||||||||
Certification of Chief Financial Officer pursuant to Rule 13a-14(a)/15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |||||||||||
Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |||||||||||
Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |||||||||||
101 | The following financial information from the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, | ||||||||||
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) | ||||||||||
† | Management contracts and compensatory plans or arrangements. |
By: | /s/ Joseph P. Adams, Jr. | Date: | ||||||||||||
Joseph P. Adams, Jr. | ||||||||||||||
Chairman and Chief Executive Officer |
By: | /s/ Eun (Angela) Nam | Date: | |||||||||||||
Eun (Angela) Nam | |||||||||||||||
Chief Financial Officer and Chief Accounting Officer |