8-KEarnings & Results

FTAI Aviation Ltd. 8-K Report, Financial Results (Jul 21, 2020)

Filed July 21, 2020For Securities:FTAIFTAIMFTAIN

Summary

FTAI Aviation Ltd. (FTAI) released preliminary financial results for the second quarter and first six months of 2020. For the quarter ended June 30, 2020, the company anticipates revenue between $92.2 million and $96.5 million, with an estimated net loss attributable to shareholders from continuing operations ranging from $(17.8) million to $(13.5) million. Adjusted EBITDA is projected to be between $64.3 million and $68.6 million. For the first six months of 2020, FTAI estimates revenue between $205.0 million and $209.3 million. The net loss attributable to shareholders from continuing operations is expected to be in the range of $(22.0) million to $(17.7) million, and Adjusted EBITDA is projected to fall between $136.3 million and $140.6 million. These figures are preliminary and subject to change as closing procedures are completed. Investors should note that Adjusted EBITDA is a non-GAAP measure used by management for operational assessment.

Key Highlights

  • 1Preliminary Q2 2020 revenue estimated between $92.2M - $96.5M.
  • 2Preliminary Q2 2020 net loss from continuing operations estimated between $(17.8)M - $(13.5)M.
  • 3Preliminary Q2 2020 Adjusted EBITDA estimated between $64.3M - $68.6M.
  • 4Preliminary six-month 2020 revenue estimated between $205.0M - $209.3M.
  • 5Preliminary six-month 2020 net loss from continuing operations estimated between $(22.0)M - $(17.7)M.
  • 6Preliminary six-month 2020 Adjusted EBITDA estimated between $136.3M - $140.6M.
  • 7All figures are preliminary estimates and subject to completion of closing procedures.

Frequently Asked Questions

For the quarter ended June 30, 2020, FTAI Aviation Ltd. estimates revenue in the range of $92.2 million to $96.5 million. They anticipate a net loss from continuing operations between $(17.8) million and $(13.5) million, with Adjusted EBITDA projected to be between $64.3 million and $68.6 million.

No, these are preliminary financial results. The company states that their closing procedures for the quarter and six months ended June 30, 2020, are not yet complete. The final results may vary from these preliminary estimates, and there's no obligation to update this information.

Adjusted EBITDA is a non-GAAP financial measure used by FTAI's management to evaluate operational performance and make resource allocation decisions. It is calculated by adjusting net income (loss) from continuing operations for various items like taxes, equity-based compensation, acquisition expenses, debt modifications, changes in fair value of derivatives, impairment charges, incentive allocations, depreciation, amortization, and interest expense, while also including their pro-rata share of Adjusted EBITDA from unconsolidated entities and excluding equity in losses and non-controlling shares. Management believes it provides useful comparisons of results over time.

The significant adjustments from Net Loss to arrive at Adjusted EBITDA include substantial add-backs for Depreciation and amortization expense ($48.3M - $48.3M for Q2 and $97.4M - $97.4M for six months), Interest expense ($21.8M - $21.8M for Q2 and $44.7M - $44.7M for six months), and Asset impairment charges ($10.5M - $10.5M for both periods). Other adjustments like acquisition/transaction expenses and losses on debt extinguishment also contribute.