10-KPeriod: FY2021

FTAI Aviation Ltd. Annual Report, Year Ended Dec 31, 2021

Filed February 28, 2022For Securities:FTAIFTAIMFTAIN

Summary

FTAI Aviation Ltd. reported a net loss of $130.7 million for the year ended December 31, 2021, a significant increase from the prior year's net loss of $103.7 million. Total revenues for 2021 saw a substantial increase of $89.3 million to $455.8 million, primarily driven by the acquisition of Transtar and growth in the Aviation Leasing and Ports and Terminals segments. However, total expenses also rose significantly by $150.7 million to $611.4 million, largely due to increased interest expense, operating expenses, and depreciation and amortization. The company's Adjusted EBITDA (a non-GAAP measure) increased to $336.3 million in 2021 from $243.3 million in 2020. This growth was mainly attributed to the Transtar acquisition and improved performance in Aviation Leasing, despite a decline in Adjusted EBITDA for the Jefferson Terminal segment. FTAI Aviation is actively pursuing a spin-off of its infrastructure business, expected in the second quarter of 2022, which will leave FTAI retaining the aviation business. This strategic move is intended to unlock value and provide greater focus for each business segment.

Financial Highlights

47 data points
Beta

Revenue

$335.58M

95.7% Gross Margin

Net Income

-$128.99M

-38.4% Net Margin

Total Assets

$4.86B

Cash & Equivalents

$138.21M

Free Cash Flow

-$179.38M

Financial Statements
Beta
Revenue$335.58M
Cost of Revenue$14.31M
Gross Profit$321.27M
Operating Expenses$419.19M
Operating Income-$67.62M
Interest Expense$155.02M
Net Income-$128.99M
Shares Outstanding (Basic)89.92M
Shares Outstanding (Diluted)89.92M

Key Highlights

  • 1FTAI Aviation Ltd. reported a net loss of $130.7 million for the year ended December 31, 2021, compared to a net loss of $103.7 million in the prior year.
  • 2Total revenues increased by $89.3 million to $455.8 million in 2021, largely driven by the acquisition of Transtar and strong performance in Aviation Leasing and Ports and Terminals.
  • 3Total expenses increased significantly by $150.7 million to $611.4 million in 2021, primarily due to higher interest expense, operating expenses, and depreciation and amortization.
  • 4Adjusted EBITDA (non-GAAP) rose to $336.3 million in 2021 from $243.3 million in 2020, reflecting the positive impact of the Transtar acquisition and aviation segment growth.
  • 5The company intends to spin off its infrastructure business in Q2 2022, retaining the aviation business, a strategic move to enhance focus and unlock value.
  • 6The Aviation Leasing segment showed resilience with total revenues increasing by $40.2 million, driven by higher maintenance revenue and engine parts sales, despite a decrease in lease income due to redeliveries.
  • 7The company's balance sheet shows total assets of $4.86 billion and total equity of $1.12 billion as of December 31, 2021.

Frequently Asked Questions

FTAI Aviation Ltd. experienced a net loss of $130.7 million in 2021, an increase from the $103.7 million net loss in 2020. Total revenues grew to $455.8 million, driven by acquisitions and segment growth, but expenses also increased significantly, particularly interest, operating, and depreciation costs. However, Adjusted EBITDA showed improvement, reaching $336.3 million, up from $243.3 million in 2020.

The company's primary strategic initiative is the planned spin-off of its infrastructure business in the second quarter of 2022. This will allow FTAI to focus exclusively on its aviation leasing segment. Additionally, the company continues to manage its asset portfolio and debt levels.

The acquisition of Transtar in July 2021 significantly boosted total revenues by $56.8 million in the Infrastructure segment and contributed positively to Adjusted EBITDA. However, it also led to an increase in operating expenses, depreciation and amortization, and interest expense, which impacted the overall net income.

The Aviation Leasing segment showed revenue growth in 2021, driven by increased maintenance revenue and engine parts sales. While lease income decreased due to aircraft redeliveries, the segment's overall performance, reflected in a $51.9 million increase in Adjusted EBITDA, demonstrates resilience. The company owns 315 aviation assets, with 91 aircraft and 207 engines currently leased out.