•
Sep 30, 2022

AerSale Q3 2022 Earnings Report

Reports lower quarterly revenue and earnings due to timing of flight equipment sales.

Key Takeaways

AerSale Corporation reported a decrease in revenue for Q3 2022 to $51.0 million compared to $73.3 million in Q3 2021, with a GAAP net loss of $9.0 million versus a net loss of $1.6 million in the prior year period. The company reaffirmed its full-year guidance for revenue between $420 - $450 million and adjusted EBITDA between $80 - $90 million.

Third quarter revenue was $51.0 million, compared to $73.3 million in the prior year period.

Third-quarter GAAP net loss was $9.0 million versus GAAP net loss of $1.6 million in prior year period.

Adjusted Net Loss was $1.9 million in the third quarter, versus Adjusted Net Income of $9.2 million in prior year period.

Third quarter Adjusted EBITDA was $(0.5) million compared to Adjusted EBITDA of $13.9 million in the prior year period.

Total Revenue
$51M
Previous year: $73.3M
-30.4%
EPS
-$0.03
Previous year: $0.22
-113.6%
Adjusted EBITDA
-$496K
Previous year: $13.9M
-103.6%
Gross Profit
$15.5M
Previous year: $24.6M
-37.1%
Cash and Equivalents
$151M
Previous year: $61.9M
+144.7%
Free Cash Flow
-$46.8M
Previous year: $17.5M
-366.9%
Total Assets
$510M
Previous year: $440M
+15.9%

AerSale

AerSale

Forward Guidance

AerSale reaffirmed its guidance for revenue of $420 - $450 million and adjusted EBITDA of $80 - $90 million in 2022.

Positive Outlook

  • Expectations of revenue in the range of $420 - $450 million
  • Expectations of adjusted EBITDA in the range of $80 - $90 million
  • Anticipated receipt from the FAA of an STC for our AerAware product and expectation of sales
  • Expectations that the AerAware technology may prove to be mandatory equipment with airline partners
  • Belief that our AerAware product will reduce costs and greenhouse gas emissions caused by flight delays and diversions caused by weather

Challenges Ahead

  • Impact of the COVID-19 pandemic
  • Factors adversely impacting the commercial aviation industry
  • Events related to the war in Ukraine including economic and trade sanctions
  • Fluctuating market value of our products
  • Shortage of skilled personnel, including as a result of work stoppages