AerSale Corporation Reports Second Quarter 2024 Financial Results
Intellectia.AI2024-08-08
AerSale Corporation Reports Second Quarter 2024 Financial Results
AerSale Corporation (NASDAQ: ASLE) has announced its financial results for the second quarter ended June 30, 2024.
Key Financial Metrics
| Metric | Q2 2024 | Q2 2023 | Year-over-Year Change (%) | Consensus Estimate | Q1 2024 | Quarter-over-Quarter Change (%) |
|---|---|---|---|---|---|---|
| Revenue | $77.1M | $69.3M | +11.3% | $87.13M | $92.5M | -16.6% |
| GAAP Net Loss | $3.6M | $2.7M | +33.3% | - | $1.9M | +89.5% |
| Adjusted Net Loss | $2.6M | $0.6M | +333.3% | - | $1.2M | +116.7% |
| Diluted Loss Per Share | $0.07 | $0.08 | -12.5% | $0.10 | $0.05 | +40.0% |
| Adjusted EBITDA | $3.2M | $(0.5)M | N/A | - | $1.8M | +77.8% |
The financial performance of AerSale Corporation in the second quarter of 2024 shows an improvement in year-over-year revenue despite falling short of the consensus estimate. Although GAAP net loss increased compared to the previous year, Adjusted EBITDA turned positive, demonstrating operational progress.
Revenue Performance Across Major Segments
| Segment | Q2 2024 | Q2 2023 | Year-over-Year Change (%) |
|---|---|---|---|
| Asset Management | $41.8M | $37.1M | +12.6% |
| TechOps | $35.3M | $32.3M | +9.4% |
Asset Management revenue was boosted by a 19.2% increase in Used Serviceable Material (USM) sales. TechOps saw a rise in demand for MRO services and improvements in AerSafe™ sales. However, gross margins fell due to lower margins at component MROs.
Key Operational Data
| Data Point | Amount/Details |
|---|---|
| Flight Equipment Inventory | $378.8M |
| Feedstock Acquisitions | $36M + $71M under contract |
| Liquidity | $101.8M ($4.3M cash + $97.5M revolving credit) |
| Flight Equipment Sales | Five engines (Q2 2024) vs. four engines and two airframes (Q2 2023) |
Officer Comments
Nick Finazzo, AerSale's CEO, highlighted the company's robust MRO demand and strategic initiatives aimed at long-term growth. He pointed out the recent expansion of MRO facilities and the potential boost from AerAware™.
CFO Martin Garmendia emphasized the firm's solid liquidity and strategic feedstock acquisitions as key drivers for sustained upward momentum.
Stock Price Movement
Following the earnings release, AerSale's stock price saw a decline of approximately 3.6%.
In summary, AerSale Corporation has demonstrated significant progress in increasing revenues and Adjusted EBITDA, supported by robust MRO and USM sales. However, the company has faced increasing GAAP net losses and some shortfalls in consensus estimates. The outlook remains cautiously optimistic, upheld by strategic investments and operational enhancements.
For further details, interested parties can access the company’s earnings conference call replay.
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