“Having developed our 145 maintenance and exchange capabilities over the past few years, we have become the partner of choice for airlines looking to avoid or outsource maintenance risk,” said
“The Company performed well in the first quarter of 2024 and is benefiting from the continued maturation of our strategy,” said
First Quarter 2024 Highlights (at or for the period ended
- Lease rent revenue of
$52.9 million in the first quarter of 2024 was in-line with lease rent revenue of$53.2 million in the first quarter of 2023. During the three months endedMarch 31, 2024 , we purchased equipment (including capitalized costs) totaling$62.8 million , which consisted of two aircraft and four engines and other parts and equipment purchased for our lease portfolio. During the three months endedMarch 31, 2023 , we purchased equipment (including capitalized costs) totaling$55.7 million , which consisted of five engines and other parts and equipment purchased for our lease portfolio. - Maintenance reserve revenue was
$43.9 million in the first quarter of 2024, an increase of 86.7%, compared to$23.5 million in the same quarter of 2023, reflecting the high level of usage of our assets by our customer base. Engines on lease with “non-reimbursable” usage fees generated$37.6 million of short-term maintenance revenues in 2024, compared to$23.5 million in the prior year. There was$6.3 million of long-term maintenance revenue recognized in the three months endedMarch 31, 2024 , compared to no long-term maintenance revenue recognized for the three months endedMarch 31, 2023 . As ofMarch 31, 2024 andMarch 31, 2023 , there were$26.7 million and$13.7 million , respectively, of deferred in-substance fixed payment use fees included in Unearned revenue associated with engines on short-term leases. These deferred in-substance fixed payment use fees represent portfolio utilization beyond the maintenance reserve revenues reflected in our Unaudited Consolidated Statements of Income. - Spare parts and equipment sales decreased to
$3.3 million in the first quarter of 2024, compared to$5.1 million in the first quarter of 2023. The decrease in spare parts sales for the three months endedMarch 31, 2024 reflects variations in the timing of sales. - Gain on sale of leased equipment was
$9.2 million in the first quarter of 2024, reflecting the sale of eight engines. Loss on sale of leased equipment was$0.1 million in the first quarter of 2023, reflecting the sale of two engines. The Company is experiencing a strong market for engine sales. - The Company generated a quarterly record of
$29.9 million of pre-tax income in the first quarter of 2024, compared to the pre-tax income of$6.8 million in the first quarter of 2023. - The book value of lease assets directly owned or through our joint ventures, inclusive of our notes receivable, maintenance rights, and investments in sales-type leases, was
$2,530.7 million as ofMarch 31, 2024 . - Diluted weighted average income per common share was
$3.00 for the first quarter 2024, compared to diluted weighted average income per common share of$0.55 in the first quarter of 2023. - Book value per diluted weighted average common share outstanding increased to
$69.35 atMarch 31, 2024 , compared to$67.73 atDecember 31, 2023 .
Balance Sheet
As of
Except for historical information, the matters discussed in this press release contain forward-looking statements that involve risks and uncertainties. Do not unduly rely on forward-looking statements, which give only expectations about the future and are not guarantees. Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update them. Our actual results may differ materially from the results discussed in forward-looking statements. Factors that might cause such a difference include, but are not limited to: the effects on the airline industry and the global economy of events such as war, terrorist activity and pandemics; changes in oil prices, rising inflation and other disruptions to world markets; trends in the airline industry and our ability to capitalize on those trends, including growth rates of markets and other economic factors; risks associated with owning and leasing jet engines and aircraft; our ability to successfully negotiate equipment purchases, sales and leases, to collect outstanding amounts due and to control costs and expenses; changes in interest rates and availability of capital, both to us and our customers; our ability to continue to meet changing customer demands; regulatory changes affecting airline operations, aircraft maintenance, accounting standards and taxes; the market value of engines and other assets in our portfolio; and risks detailed in the Company’s Annual Report on Form 10-K and other continuing reports filed with the
Unaudited Consolidated Statements of Income
(In thousands, except per share data)
Three Months Ended | ||||||||||||
2024 | 2023 | % Change | ||||||||||
REVENUE | ||||||||||||
Lease rent revenue | $ | 52,881 | $ | 53,220 | (0.6 | )% | ||||||
Maintenance reserve revenue | 43,870 | 23,498 | 86.7 | % | ||||||||
Spare parts and equipment sales | 3,288 | 5,052 | (34.9 | )% | ||||||||
Interest revenue | 2,269 | 2,046 | 10.9 | % | ||||||||
Gain (loss) on sale of leased equipment | 9,201 | (133 | ) | nm | ||||||||
Maintenance services revenue | 5,227 | 4,659 | 12.2 | % | ||||||||
Other revenue | 2,347 | 1,193 | 96.7 | % | ||||||||
Total revenue | 119,083 | 89,535 | 33.0 | % | ||||||||
EXPENSES | ||||||||||||
Depreciation and amortization expense | 22,486 | 22,549 | (0.3 | )% | ||||||||
Cost of spare parts and equipment sales | 2,705 | 4,499 | (39.9 | )% | ||||||||
Cost of maintenance services | 5,574 | 3,927 | 41.9 | % | ||||||||
Write-down of equipment | 261 | — | nm | |||||||||
General and administrative | 29,581 | 27,831 | 6.3 | % | ||||||||
Technical expense | 8,255 | 4,342 | 90.1 | % | ||||||||
Net finance costs: | ||||||||||||
Interest expense | 23,003 | 18,389 | 25.1 | % | ||||||||
Total net finance costs | 23,003 | 18,389 | 25.1 | % | ||||||||
Total expenses | 91,865 | 81,537 | 12.7 | % | ||||||||
Income from operations | 27,218 | 7,998 | 240.3 | % | ||||||||
Income (loss) from joint ventures | 2,674 | (1,161 | ) | nm | ||||||||
Income before income taxes | 29,892 | 6,837 | 337.2 | % | ||||||||
Income tax expense | 9,023 | 2,443 | 269.3 | % | ||||||||
Net income | 20,869 | 4,394 | 374.9 | % | ||||||||
Preferred stock dividends | 900 | 801 | 12.4 | % | ||||||||
Accretion of preferred stock issuance costs | 12 | 21 | (42.9 | )% | ||||||||
Net income attributable to common shareholders | $ | 19,957 | $ | 3,572 | 458.7 | % | ||||||
Basic weighted average income per common share | $ | 3.12 | $ | 0.58 | ||||||||
Diluted weighted average income per common share | $ | 3.00 | $ | 0.55 | ||||||||
Basic weighted average common shares outstanding | 6,387 | 6,123 | ||||||||||
Diluted weighted average common shares outstanding | 6,659 | 6,456 | ||||||||||
Unaudited Consolidated Balance Sheets
(In thousands, except per share data)
ASSETS | ||||||||
Cash and cash equivalents | $ | 7,622 | $ | 7,071 | ||||
Restricted cash | 86,620 | 160,958 | ||||||
Equipment held for operating lease, less accumulated depreciation | 2,130,327 | 2,112,837 | ||||||
Maintenance rights | 9,180 | 9,180 | ||||||
Equipment held for sale | 2,856 | 805 | ||||||
Receivables, net | 61,881 | 58,485 | ||||||
Spare parts inventory | 85,165 | 40,954 | ||||||
Investments | 60,299 | 58,044 | ||||||
Property, equipment & furnishings, less accumulated depreciation | 35,531 | 37,160 | ||||||
Intangible assets, net | 1,034 | 1,040 | ||||||
Notes receivable, net | 97,859 | 92,621 | ||||||
Investments in sales-type leases, net | 33,013 | 8,759 | ||||||
Other assets | 63,075 | 64,430 | ||||||
Total assets | $ | 2,674,462 | $ | 2,652,344 | ||||
LIABILITIES, REDEEMABLE PREFERRED STOCK AND SHAREHOLDERS’ EQUITY | ||||||||
Liabilities: | ||||||||
Accounts payable and accrued expenses | $ | 103,348 | $ | 52,937 | ||||
Deferred income taxes | 156,030 | 147,779 | ||||||
Debt obligations | 1,735,570 | 1,802,881 | ||||||
Maintenance reserves | 99,529 | 92,497 | ||||||
Security deposits | 26,525 | 23,790 | ||||||
Unearned revenue | 41,687 | 43,533 | ||||||
Total liabilities | 2,162,689 | 2,163,417 | ||||||
Redeemable preferred stock ( | 49,976 | 49,964 | ||||||
Shareholders’ equity: | ||||||||
Common stock ( | 69 | 68 | ||||||
Paid-in capital in excess of par | 33,657 | 29,667 | ||||||
Retained earnings | 417,738 | 397,781 | ||||||
Accumulated other comprehensive income, net of tax | 10,333 | 11,447 | ||||||
Total shareholders’ equity | 461,797 | 438,963 | ||||||
Total liabilities, redeemable preferred stock and shareholders’ equity | $ | 2,674,462 | $ | 2,652,344 | ||||
CONTACT: | |
Chief Financial Officer | |
(561) 349-9989 |
Source:
2024 GlobeNewswire, Inc., source