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Sep 30, 2023
AerSale Q3 2023 Earnings Report
AerSale's Q3 2023 earnings were released, revealing a significant increase in revenue driven by flight equipment sales, though the company still reported a net loss.
Key Takeaways
AerSale Corporation reported a revenue increase to $92.5 million compared to $51.0 million in the prior year period, driven by flight equipment sales. However, the company experienced a GAAP net loss of $0.1 million, although this was an improvement from the $9.0 million loss in the prior year. Adjusted net income was $0.9 million, compared to an adjusted net loss of $1.9 million in the prior year.
Revenue increased to $92.5 million from $51.0 million year-over-year.
GAAP net loss improved to $0.1 million from $9.0 million year-over-year.
Adjusted net income reached $0.9 million, compared to an adjusted net loss of $1.9 million year-over-year.
Asset Management Solutions revenue more than tripled due to flight equipment sales.
Forward Guidance
AerSale updated its 2023 guidance, expecting revenue in the range of $400 to $420 million and adjusted EBITDA in the range of $40 to $45 million.
Positive Outlook
- The freight market is expected to recover.
- USM availability is expected to increase.
- Flight equipment sales are scheduled to close by the end of the year.
- AerAware is in its final stages of FAA approval.
- AerSale's purpose-built model and execution capabilities will enable them to drive and generate value for all stakeholders.
Challenges Ahead
- Softer demand in the freight market is expected to spread out the sales cycle of P2F converted Boeing 757 aircraft.
- Continued supply chain issues have delayed the availability of USM and flight equipment available for sale or lease.
- Flight equipment sales that are scheduled to close by the end of the year could shift into the first quarter of 2024 due to the volume of transactions and tight time frame to close.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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