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Mar 31, 2024
AerSale Q1 2024 Earnings Report
AerSale's Q1 2024 financial performance was marked by increased revenue and net income compared to the prior-year period.
Key Takeaways
AerSale Corporation reported a strong start to 2024 with increased revenue, driven by flight equipment sales, USM sales, and robust MRO revenue. Net income also saw a significant rise compared to the first quarter of 2023.
Revenue increased to $90.5 million, up from $78.3 million in the prior year period.
GAAP net income was $6.3 million, a substantial increase from $5 thousand in the prior year period.
Asset Management Solutions revenue increased to $59.3 million, compared to $48.4 million in the prior year period.
TechOps revenue increased by 4.8% to $31.3 million, driven by strong demand for MRO services.
AerSale
AerSale
AerSale Revenue by Segment
Revenue by Segment
Asset Management Solutions Revenue
CapyFin.comTechOps Revenue
CapyFin.com Forward Guidance
AerSale anticipates continued strong commercial demand due to a favorable operating environment and is actively acquiring feedstock to support future sales. The company has acquired $30.6 million of feedstock year-to-date and has letters of intent on an additional $51.7 million of inventory expected during the year.
Positive Outlook
- Commercial demand is expected to remain strong.
- Company acquired $30.6 million of feedstock year-to-date.
- Letters of intent on an additional $51.7 million of inventory expected during the year.
- MRO facilities are benefiting from robust demand as airlines are operating at elevated capacity levels.
- Positioned in the market to drive returns from available aircraft due to purpose-built end-to-end solution.
Challenges Ahead
- Feedstock availability remains pressured due to OEM delivery issues.
- Cash used in operating activities was $21.5 million, mainly due to continued investment in inventory.
- Revenues are likely to fluctuate from quarter-to-quarter and year-to-year based on flight equipment sales.
- Company recognized a mark-to-market adjustment benefit of $2.0 million related to the private warrant liability.
- Company incurred $0.8 million of stock-based compensation expenses within payroll expenses, and $0.5 million in facility relocation costs
Revenue & Expenses
Visualization of income flow from segment revenue to net income