10-QPeriod: Q1 FY2015

FTAI Aviation Ltd. Quarterly Report for Q1 Ended Mar 31, 2015

Filed June 3, 2015For Securities:FTAIFTAIMFTAIN

Summary

FTAI Aviation Ltd.'s (FTAI) Form 10-Q for the period ended March 31, 2015, reveals a significant increase in revenues and net income compared to the prior year period. Total revenues surged by 26,277% to $33,973 thousand, primarily driven by the inclusion of the newly acquired Jefferson Terminal and CMQR railroad operations, as well as strong performance in the Aviation Leasing segment. Net income attributable to members grew substantially to $5,448 thousand from $1,426 thousand in the prior year. The company's balance sheet shows total assets of $1,438,619 thousand as of March 31, 2015, up from $1,404,201 thousand at the end of 2014. Debt levels remained relatively stable. The company also highlighted its successful Initial Public Offering (IPO) in May 2015, which raised substantial capital intended for future asset acquisitions and general corporate purposes. Investors should note the company's significant investments in infrastructure and equipment leasing, with notable contributions from its Aviation Leasing, Offshore Energy, Shipping Containers, Jefferson Terminal, and Railroad segments.

Financial Highlights

38 data points
Beta

Revenue

$33.97M

Net Income

$5.45M

16.0% Net Margin

EPS (Diluted)

$0.10

Total Assets

$1.44B

Cash & Equivalents

$37.29M

Free Cash Flow

-$38.07M

Financial Statements
Beta
Revenue$33.97M
Operating Expenses$33.23M
Interest Expense$4.82M
Net Income$5.45M
EPS (Basic)$0.10
EPS (Diluted)$0.10
Shares Outstanding (Basic)53.50M
Shares Outstanding (Diluted)53.50M

Key Highlights

  • 1Total revenues increased significantly to $33,973 thousand for the three months ended March 31, 2015, up from $7,696 thousand in the same period of 2014, driven by new segment contributions and increased lease income.
  • 2Net income attributable to members grew substantially to $5,448 thousand for the three months ended March 31, 2015, compared to $1,426 thousand for the prior year period.
  • 3The company completed an Initial Public Offering (IPO) in May 2015, raising capital to fund future growth and acquisitions.
  • 4Total assets increased to $1,438,619 thousand as of March 31, 2015, from $1,404,201 thousand as of December 31, 2014, indicating continued investment in its asset base.
  • 5The Jefferson Terminal and Railroad segments, acquired in 2014, are now contributing to revenues and expenses.
  • 6The Aviation Leasing segment showed strong revenue growth, with lease income up significantly due to newly acquired aircraft and engines.
  • 7The company maintained compliance with debt covenants across its various credit agreements as of March 31, 2015.

Frequently Asked Questions

The substantial increase in revenue is primarily driven by the inclusion of two new reporting segments: Jefferson Terminal and Railroad, which were acquired in 2014. Additionally, the Aviation Leasing segment experienced strong growth in lease income due to new asset acquisitions.

The company's operations and acquisitions were funded through a combination of operating revenues, borrowings, capital contributions from members, and proceeds from its recent Initial Public Offering (IPO) in May 2015.

Following the IPO, the company intends to use the net proceeds, along with other sources of capital, for the acquisition of new assets in its current sectors, opportunistic acquisitions across the transportation and infrastructure market, follow-on investments in existing assets, working capital, and other general corporate purposes.

Debt levels remained relatively stable quarter-over-quarter. The most significant equity-related event was the completion of the company's Initial Public Offering in May 2015, which is detailed in the subsequent events note. The balance sheet as of March 31, 2015, reflects common shares, additional paid-in capital, and non-controlling interests.