In This Article:
-
Revenue: $82.7 million in Q3 2024, down from $92.5 million in Q3 2023.
-
Flight Equipment Sales: $22.6 million in Q3 2024, compared to $44.8 million in Q3 2023.
-
Adjusted EBITDA: $8.2 million in Q3 2024, up from $1.9 million in Q3 2023.
-
Gross Margin: 28.6% in Q3 2024, compared to 25.4% in Q3 2023.
-
Net Income: $0.5 million in Q3 2024, compared to a net loss of $0.1 million in Q3 2023.
-
Adjusted Net Income: $1.8 million in Q3 2024, compared to $0.9 million in Q3 2023.
-
Diluted Earnings Per Share: $0.01 in Q3 2024, compared to $0.00 in Q3 2023.
-
Adjusted Diluted Earnings Per Share: $0.04 in Q3 2024, compared to $0.03 in Q3 2023.
-
Cash Used in Operating Activities: $26.4 million year-to-date.
-
Liquidity: $103.5 million, including $9.8 million in cash and $93.7 million available on the credit facility.
Release Date: November 07, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
-
AerSale Corp (NASDAQ:ASLE) expanded its lease pool, leading to a significant increase in leasing revenue, which is expected to continue throughout the lease terms.
-
The company's MRO business showed an 18% year-over-year growth, driven by strong commercial demand.
-
AerSale Corp (NASDAQ:ASLE) is on track with its expansion projects, which are expected to incrementally increase revenue and improve margins in 2025.
-
Adjusted EBITDA improved significantly to $8.2 million from $1.9 million in the previous year, due to stronger gross margins and lower operating expenses.
-
The company has a substantial balance sheet with $103.5 million in liquidity, providing a strong financial position to support future growth.
Negative Points
-
Third-quarter revenue decreased to $82.7 million from $92.5 million in the previous year, primarily due to lower flight equipment sales.
-
The competitive market for feedstock acquisitions remains challenging, with a success rate of only 3.1% for awarded deals, compared to a historical win rate of approximately 10%.
-
The Millington facility, although operational, contributed negatively to EBITDA due to initial ramp-up costs and low volume.
-
The commercialization phase for the Airware system is taking longer than expected, with no confirmed launch customer yet.
-
The company is facing challenges in acquiring feedstock due to OEM production delays and increased competition, impacting its ability to meet its annual target.
Q & A Highlights
Q: How close is AerSale to securing a customer for Airware, and what are the challenges in getting customers on board? A: Nick Finazzo, CEO, explained that while they are in advanced discussions with multiple customers, the complexity of implementation, especially for larger carriers, is a challenge. This includes pilot training, updating manuals, and budgetary considerations. The commercialization phase is taking longer than expected, but there is ongoing interest from potential customers.