10-QPeriod: Q3 FY2016

FTAI Aviation Ltd. Quarterly Report for Q3 Ended Sep 30, 2016

Filed November 4, 2016For Securities:FTAIFTAIMFTAIN

Summary

FTAI Aviation Ltd. (FTAI) reported its third-quarter 2016 financial results, showcasing a diversified portfolio across Aviation Leasing, Offshore Energy, Shipping Containers, Jefferson Terminal, and Railroad segments. The company experienced mixed revenue trends, with notable growth in Aviation Leasing driven by asset acquisitions and placement, alongside increased rail revenues. However, this was partially offset by declines in Offshore Energy and Shipping Containers due to market conditions and asset sales, respectively. Overall revenue for the nine months ended September 30, 2016, saw a modest increase compared to the prior year. Financially, FTAI reported a net loss attributable to shareholders of $1.28 million for the three months ended September 30, 2016, and $18.25 million for the nine months ended September 30, 2016. These losses were influenced by factors including asset impairment charges, increased depreciation, and higher interest expenses, particularly from new bond issuances. Despite the net losses, the company's cash flow from operations remained positive, with Funds Available for Distribution (FAD) showing an increase year-over-year, indicating underlying operational cash generation capabilities. The company highlighted its strategic asset acquisition and management strategy, aiming for long-lived infrastructure and equipment. The balance sheet reflects significant investments in property, plant, and equipment, alongside leasing equipment, totaling over $1.5 billion in assets. FTAI's debt obligations were managed, with the company noting compliance with covenants. Looking ahead, the company is actively evaluating further investment opportunities across its segments.

Financial Statements
Beta
Revenue$41.73M
Operating Expenses$46.86M
Interest Expense$5.42M
Net Income-$1.28M
EPS (Basic)$-0.02
EPS (Diluted)$-0.02
Shares Outstanding (Basic)75.75M
Shares Outstanding (Diluted)75.75M

Key Highlights

  • 1Total revenues for the nine months ended September 30, 2016, increased to $106.37 million from $102.77 million in the same period of 2015.
  • 2The Aviation Leasing segment showed strong revenue growth, with lease income up significantly due to new aircraft and engine leases.
  • 3The Railroad segment also saw revenue improvements, driven by increased traffic and expanded service offerings.
  • 4FTAI reported a net loss attributable to shareholders of $1.28 million for the third quarter of 2016, compared to a net loss of $11.74 million in the prior year's third quarter.
  • 5For the nine months ended September 30, 2016, the net loss attributable to shareholders was $18.25 million, an increase from $7.13 million in the same period of 2015.
  • 6Funds Available for Distribution (FAD) increased to $56.3 million for the nine months ended September 30, 2016, from $38.0 million in the same period of 2015.
  • 7The company made significant investments in property, plant, and equipment and leasing equipment, with total assets amounting to $1.55 billion as of September 30, 2016.

Frequently Asked Questions

FTAI Aviation reported total revenues of $106.37 million for the nine months ended September 30, 2016, an increase from $102.77 million in the same period of 2015. This growth was primarily driven by higher revenues in the Aviation Leasing and Railroad segments.

For the three months ended September 30, 2016, FTAI Aviation reported a net loss attributable to shareholders of $1.28 million. This represents an improvement compared to the net loss of $11.74 million reported in the third quarter of 2015.

The Aviation Leasing segment showed strong revenue growth, primarily from increased lease income and maintenance revenue. The Railroad segment also experienced revenue increases due to higher traffic and expanded services. Conversely, the Offshore Energy and Shipping Containers segments saw revenue declines, influenced by market conditions and the sale of assets, respectively.

Funds Available for Distribution (FAD) increased significantly to $56.3 million for the nine months ended September 30, 2016, up from $38.0 million in the comparable period of 2015, indicating improved cash generation from operations after accounting for debt payments and other adjustments.