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Dec 31, 2021

AerSale Q4 2021 Earnings Report

AerSale reported increased revenue and net income driven by strong AMS contributions and flight equipment sales.

Key Takeaways

AerSale Corporation reported a significant increase in revenue and net income for Q4 2021. Revenue reached $116.8 million, including $73.1 million from flight equipment sales, compared to $49.4 million in the prior-year period. GAAP net income was $11.2 million, up from $0.3 million in the prior year. The company's performance was driven by strong contributions from Asset Management Solutions (AMS) and a favorable sales mix.

Q4 2021 revenue increased to $116.8 million, including $73.1 million from flight equipment sales.

GAAP net income for Q4 2021 was $11.2 million, compared to $0.3 million in the prior-year period.

Adjusted Net Income for Q4 2021 was $22.3 million, compared to $0.2 million in the prior-year period.

Adjusted EBITDA for Q4 2021 was $28.6 million, compared to $3.0 million in the prior-year period.

Total Revenue
$117M
Previous year: $49.4M
+136.5%
EPS
$0.31
Previous year: -$0.01
-3200.0%
Gross Profit
$44.2M
Previous year: $13.1M
+236.5%
Cash and Equivalents
$130M
Previous year: $29.3M
+344.1%
Free Cash Flow
$52.2M
Previous year: -$12M
-535.2%
Total Assets
$487M
Previous year: $389M
+25.3%

AerSale

AerSale

Forward Guidance

AerSale expects revenue between $420 - $450 million and adjusted EBITDA between $80 - $90 million in 2022.

Positive Outlook

  • Improvement in the Company’s AMS segment
  • Ongoing demand for its on-airport MRO services
  • Accelerating demand in cargo and E-Commerce markets
  • Continued requests for passenger-to-freighter conversions
  • Continued requests for TechOps products and services

Challenges Ahead

  • Recent geopolitical events related to the Russian invasion of Ukraine may impact the global commercial aerospace industry
  • Supply chain disruptions
  • Escalating sanctions
  • Impact on flight activity due to higher fuel prices
  • Labor constraints have impacted the timely completion of software validation needed for certification until the second quarter of 2022