10-QPeriod: Q2 FY2016

FTAI Aviation Ltd. Quarterly Report for Q2 Ended Jun 30, 2016

Filed August 4, 2016For Securities:FTAIFTAIMFTAIN

Summary

FTAI Aviation Ltd. (FTAI) reported its financial results for the quarter and six months ended June 30, 2016. The company experienced a significant net loss attributable to shareholders of $11.2 million for the quarter and $17.0 million for the six-month period. This performance was largely impacted by an asset impairment charge of $7.45 million related to an offshore energy vessel project and a decrease in revenues, particularly in the Offshore Energy segment, due to a vessel coming off lease. Despite the reported losses, the company's total assets slightly decreased to $1.57 billion from $1.64 billion, while total liabilities saw a modest increase. Debt levels remain substantial at $262.9 million. The company also announced a cash dividend of $0.33 per share for the quarter, demonstrating a commitment to returning capital to shareholders even amidst operational challenges. Key financial activities during the period included the repayment of several debt facilities and the issuance of Series 2016 Bonds.

Financial Highlights

44 data points
Beta

Revenue

$33.20M

Net Income

-$11.19M

-33.7% Net Margin

EPS (Diluted)

$-0.15

Total Assets

$1.57B

Cash & Equivalents

$276.21M

Free Cash Flow

$130K

Financial Statements
Beta
Revenue$33.20M
Operating Expenses$46.84M
Interest Expense$5.12M
Net Income-$11.19M
EPS (Basic)$-0.15
EPS (Diluted)$-0.15
Shares Outstanding (Basic)75.73M
Shares Outstanding (Diluted)75.73M

Key Highlights

  • 1Reported a net loss attributable to shareholders of $11.2 million for the three months ended June 30, 2016, compared to a loss of $0.8 million in the prior year period.
  • 2Net loss attributable to shareholders for the six months ended June 30, 2016, was $17.0 million, a significant increase from a net income of $4.6 million in the prior year period.
  • 3Recorded an asset impairment charge of $7.45 million related to an offshore energy project (MT6015 vessel).
  • 4Total revenues decreased to $33.2 million from $33.6 million for the quarter and to $64.6 million from $67.5 million for the six-month period, primarily driven by lower revenues in Offshore Energy and Jefferson Terminal segments.
  • 5The company's total assets decreased to $1.57 billion from $1.64 billion at the end of the previous year.
  • 6Total debt remained substantial at $262.9 million, with a decrease in short-term debt obligations.
  • 7Declared a cash dividend of $0.33 per share for the quarter ended June 30, 2016.

Frequently Asked Questions

FTAI Aviation reported a net loss attributable to shareholders of $11.2 million for the three months ended June 30, 2016, and a net loss of $17.0 million for the six months ended June 30, 2016.

The primary drivers for the decline in performance were a significant asset impairment charge of $7.45 million related to an offshore energy project and a decrease in total revenues, particularly from the Offshore Energy and Jefferson Terminal segments, due to the expiration of lease arrangements and vessels coming off charter.

Total assets decreased slightly to $1.57 billion from $1.64 billion at December 31, 2015. This was influenced by acquisitions in the Aviation Leasing segment, offset by decreases in other segments and the previously mentioned asset impairment.

The company repaid several debt facilities, including Container Loan #1, Container Loan #2, and the Jefferson Terminal Credit Agreement. Additionally, it issued $144.2 million in Series 2016 Bonds to finance certain terminal facilities.