10-QPeriod: Q1 FY2017

FTAI Aviation Ltd. Quarterly Report for Q1 Ended Mar 31, 2017

Filed May 5, 2017For Securities:FTAIFTAIMFTAIN

Summary

FTAI Aviation Ltd. reported a net loss of $4.4 million for the first quarter of 2017, an improvement from the $5.8 million loss in the same period last year. Total revenues increased significantly by 42% to $44.7 million, driven by strong performance in the Aviation Leasing and Infrastructure segments, particularly higher lease income and maintenance revenue. The company's total assets grew to $1.8 billion, with a notable increase in 'Investments' to $58.2 million, primarily due to available-for-sale securities and equity method investments. Debt also increased substantially to $495.5 million, largely due to the issuance of Senior Notes in March 2017. The company's liquidity was bolstered by significant financing activities, including the issuance of Senior Notes and increased borrowings, although investing activities showed a net cash outflow as the company continued to acquire assets.

Financial Highlights

44 data points
Beta

Revenue

$44.67M

Net Income

-$4.41M

-9.9% Net Margin

EPS (Diluted)

$-0.06

Total Assets

$1.76B

Cash & Equivalents

$277.25M

Free Cash Flow

$2.88M

Financial Statements
Beta
Revenue$44.67M
Operating Expenses$52.26M
Interest Expense$4.69M
Net Income-$4.41M
EPS (Basic)$-0.06
EPS (Diluted)$-0.06
Shares Outstanding (Basic)75.76M
Shares Outstanding (Diluted)75.76M

Key Highlights

  • 1Total revenues increased by 42% year-over-year to $44.7 million, primarily driven by growth in Aviation Leasing and Infrastructure segments.
  • 2Net loss attributable to shareholders improved to $4.4 million from $5.8 million in the prior year's quarter.
  • 3Total assets grew to $1.8 billion, with a substantial increase in 'Investments' to $58.2 million.
  • 4Debt increased significantly to $495.5 million, largely due to the issuance of $250 million in Senior Notes.
  • 5The company raised substantial capital through financing activities, with net cash provided by financing activities of $214.3 million.
  • 6Adjusted EBITDA (a non-GAAP measure) increased by 80% to $22.1 million, indicating improved operational performance.
  • 7The Aviation Leasing segment showed strong revenue growth, with lease income up and significant increase in maintenance revenue.

Frequently Asked Questions

FTAI Aviation reported a net loss attributable to shareholders of $4.4 million for the first quarter of 2017, an improvement from a net loss of $5.8 million in the same period of 2016. Total revenues increased significantly to $44.7 million from $31.5 million in Q1 2016, driven by strong performance across several segments, particularly Aviation Leasing.

Total assets increased to $1.8 billion as of March 31, 2017, from $1.5 billion as of December 31, 2016. This growth was largely driven by an increase in 'Investments' to $58.2 million and 'Leasing equipment, net' to $829.3 million. Total liabilities also increased, primarily due to a significant rise in debt to $495.5 million, driven by the issuance of Senior Notes.

The increase in total revenues was primarily fueled by the Aviation Leasing segment, which saw higher lease income and a substantial increase in maintenance revenue due to more aircraft and engines on lease. The Infrastructure segment also contributed to revenue growth through increased rail revenues and terminal services revenues.

The company generated $17.7 million in net cash from operating activities, a significant improvement from a negative $3.8 million in the prior year's quarter. However, investing activities used $78.8 million in cash, primarily for acquisitions of leasing equipment and other assets. Financing activities provided $214.3 million in cash, mainly from debt issuances, including Senior Notes.