10-QPeriod: Q2 FY2015

FTAI Aviation Ltd. Quarterly Report for Q2 Ended Jun 30, 2015

Filed August 13, 2015For Securities:FTAIFTAIMFTAIN

Summary

FTAI Aviation Ltd. (FTAI) reported its financial results for the second quarter and first half of 2015, showing significant growth driven by recent acquisitions and an ongoing expansion of its asset portfolio. The company's total revenues more than tripled year-over-year for the first six months, reaching $67.5 million compared to $18.4 million in the prior year period. This surge was primarily fueled by the integration of the Jefferson Terminal and CMQR railroad operations acquired in 2014, alongside increased leasing activities in the Aviation and Offshore Energy segments. Despite the revenue growth, FTAI reported a net loss attributable to shareholders of $837,000 for the three months ended June 30, 2015, and a net income of $4.6 million for the six months ended June 30, 2015. The results for the quarter were impacted by various expenses, including operating expenses, management fees, and depreciation, which increased due to business expansion. The company also completed its Initial Public Offering (IPO) in May 2015, raising significant capital which is intended for further asset acquisitions and strategic growth initiatives.

Financial Highlights

45 data points
Beta

Revenue

$33.56M

Net Income

-$837K

-2.5% Net Margin

EPS (Diluted)

$-0.01

Total Assets

$2.01B

Cash & Equivalents

$448.30M

Free Cash Flow

-$17.92M

Financial Statements
Beta
Revenue$33.56M
Operating Expenses$40.19M
Interest Expense$4.76M
Net Income-$837K
EPS (Basic)$-0.01
EPS (Diluted)$-0.01
Shares Outstanding (Basic)62.88M
Shares Outstanding (Diluted)62.88M

Key Highlights

  • 1Total revenues for the six months ended June 30, 2015, increased to $67.5 million from $18.4 million in the comparable prior year period, a more than 266% increase.
  • 2The company completed its Initial Public Offering (IPO) on May 20, 2015, issuing 20 million common shares at $17.00 per share, raising substantial capital.
  • 3Net loss attributable to shareholders for the three months ended June 30, 2015, was $0.8 million, an improvement from a net loss of $1.4 million in the prior year period.
  • 4Net income attributable to shareholders for the six months ended June 30, 2015, was $4.6 million, compared to a net income of $74,000 in the prior year period.
  • 5Operating expenses, depreciation, and management fees increased significantly, reflecting the expansion and integration of newly acquired businesses (Jefferson Terminal and CMQR).
  • 6Cash provided by operating activities improved to $14.6 million for the six months ended June 30, 2015, from $6.6 million in the prior year period.
  • 7The company ended the period with $571.3 million in cash and cash equivalents, a substantial increase from $22.1 million at the end of 2014, largely due to IPO proceeds.

Frequently Asked Questions

FTAI Aviation's total revenues significantly increased to $67.5 million for the six months ended June 30, 2015, compared to $18.4 million in the same period of 2014. This growth was primarily driven by the revenue contributions from the Jefferson Terminal and CMQR railroad operations acquired in 2014, as well as increased leasing activities across its Aviation and Offshore Energy segments.

For the six months ended June 30, 2015, FTAI Aviation reported a net income attributable to shareholders of $4.6 million, a substantial improvement from a net income of $74,000 in the first half of 2014. While the three-month period showed a net loss attributable to shareholders of $0.8 million, this was an improvement from a net loss of $1.4 million in the comparable prior year period. The increased expenses related to business expansion and new acquisitions impacted short-term profitability.

The IPO in May 2015 was a significant event for FTAI Aviation, as it allowed the company to raise substantial capital by issuing 20 million common shares at $17.00 per share. The proceeds from the IPO are intended to fund future asset acquisitions and support the company's strategic growth initiatives, enhancing its financial flexibility.

The increase in operating expenses, depreciation, and management fees is primarily attributed to the company's recent acquisitions and overall business expansion. The inclusion of newly acquired entities like Jefferson Terminal and CMQR, along with the growth in the Aviation Leasing and Offshore Energy segments, naturally leads to higher operational costs, depreciation on acquired assets, and increased management fees reflecting the expanded scope of operations.