AerSale Corporation (ASLE) Bundle
A Brief History of AerSale Corporation
AerSale Corporation, a prominent player in the aviation aftermarket services sector, has seen significant developments leading up to 2024. The company specializes in providing a wide range of services, including the sale of used serviceable materials (USM), and aircraft leasing. AerSale operates through two main business segments: Asset Management Solutions and TechOps.
Financial Performance Overview
As of September 30, 2024, AerSale reported a net income of $509,000, compared to a net loss of $148,000 for the same period in 2023. The earnings per share (EPS) for the nine months ended September 30, 2024, was $0.06, reflecting a significant recovery from an EPS of $(0.06) in the prior year. This turnaround is attributed to improved operational efficiencies and a decrease in selling, general, and administrative expenses, which fell to $69.4 million from $77.7 million in 2023.
Revenue Breakdown
AerSale's total revenues for the nine months ended September 30, 2024, amounted to $250.3 million, compared to $240.1 million in 2023, showcasing a growth trend. The revenue from the Asset Management Solutions segment was $59.1 million, while the TechOps segment contributed $191.2 million during the same period.
| Financial Metrics | 2024 (9 Months) | 2023 (9 Months) |
|---|---|---|
| Net Income | $509,000 | $(148,000) |
| Earnings Per Share | $0.06 | $(0.06) |
| Total Revenues | $250.3 million | $240.1 million |
| Asset Management Solutions Revenue | $59.1 million | $90.0 million |
| TechOps Revenue | $191.2 million | $150.5 million |
Liquidity and Capital Resources
As of September 30, 2024, AerSale had $9.8 million in cash and cash equivalents. The company had $78.5 million outstanding under its Revolving Credit Agreement, which was amended in July 2023 to increase the maximum commitments to $180 million, expandable to $200 million. The interest rate applicable to loans outstanding under this agreement was 8.15% as of September 30, 2024.
Operational Developments
AerSale experienced a significant operational challenge in April 2024 when a fire destroyed one of its leased secondary parts warehouses in Roswell, New Mexico. The estimated replacement value of the inventory lost was $67.6 million, although the company carries insurance with a limit of $100 million and has submitted a claim. The cost basis of the destroyed inventory was recorded at $6 million, leading to an impairment and a non-trade receivable on the balance sheet.
Debt Obligations
The company's total debt obligations as of September 30, 2024, amounted to $79.1 million, which included $78.5 million under the Wells Fargo Senior Secured Revolving Credit Facility and $0.6 million under the Synovus Property and Equipment Revolving Term Loan. AerSale was in compliance with its debt covenants as of the reporting date.
| Debt Obligations | Amount (in thousands) |
|---|---|
| Wells Fargo Senior Secured Revolving Credit Agreement | $78,513 |
| Synovus Property and Equipment Revolving Term Loan | $569 |
| Total Debt Obligations | $79,082 |
Goodwill and Intangible Assets
As of September 30, 2024, AerSale's goodwill amounted to $19.4 million, with $13.4 million related to Asset Management Solutions and $6.0 million to the TechOps segment. The company has conducted interim quantitative goodwill impairment tests, which indicated that the fair values of its reporting units exceeded their carrying values, avoiding any impairment losses in 2024.
Overall, AerSale Corporation's financial position as of 2024 reflects a recovery from previous losses, with strategic operational adjustments contributing to improved profitability and revenue growth.
A Who Owns AerSale Corporation (ASLE)
Ownership Structure
AerSale Corporation (ASLE) has a diverse ownership structure comprising institutional investors, individual shareholders, and company insiders. As of September 30, 2024, the total number of shares issued and outstanding was 53,210,842.
| Owner Type | Shares Owned | Ownership Percentage |
|---|---|---|
| Institutional Investors | Approximately 29,000,000 | 54.5% |
| Insiders | Approximately 5,000,000 | 9.4% |
| Retail Investors | Approximately 19,210,842 | 36.1% |
Major Shareholders
The following table highlights the major shareholders of AerSale Corporation as of 2024:
| Shareholder | Shares Owned | Ownership Percentage |
|---|---|---|
| BlackRock, Inc. | 4,500,000 | 8.4% |
| The Vanguard Group, Inc. | 3,700,000 | 7.0% |
| FMR LLC (Fidelity) | 3,000,000 | 5.6% |
| Company Executives and Directors | 5,000,000 | 9.4% |
Recent Changes in Ownership
In the first half of 2024, there were significant changes in AerSale's ownership due to stock transactions and equity awards. The issuance of shares under the 2020 Equity Incentive Plan added approximately 54,596 shares to the total.
Market Position and Stock Performance
AerSale Corporation trades on NASDAQ under the ticker symbol ASLE. The stock price as of September 30, 2024, was $8.45, reflecting a market capitalization of approximately $449 million. The company has experienced fluctuations in its stock price, which has been influenced by broader market trends and its financial performance.
Financial Overview
For the nine months ended September 30, 2024, AerSale reported total revenues of $250.3 million, an increase of 4.3% compared to the previous year. The gross profit margin for the same period was approximately 29.6%, highlighting the company's operational efficiency.
| Financial Metric | Value |
|---|---|
| Total Revenue (2024) | $250.3 million |
| Gross Profit Margin | 29.6% |
| Net Income (2024) | $3.1 million |
| Market Capitalization | $449 million |
Insider Ownership
Insider ownership has remained stable, with key executives holding approximately 9.4% of the total shares. This aligns with industry standards, where insider ownership often indicates confidence in the company’s future.
Conclusion on Ownership Trends
The ownership landscape of AerSale Corporation as of 2024 showcases a healthy mix of institutional and individual investors, alongside a committed group of insiders. This structure is critical as it reflects the confidence in the company’s strategic direction and operational execution.
AerSale Corporation (ASLE) Mission Statement
Overview
AerSale Corporation is dedicated to providing comprehensive solutions for the aviation industry, focusing on delivering high-quality products and services that enhance operational efficiency and reduce costs for its customers. The mission statement emphasizes innovation, safety, and customer satisfaction, aligning with the company’s strategic objectives and operational goals.
Mission Statement Details
The mission statement of AerSale Corporation reflects their commitment to:
- Customer Focus: Delivering exceptional service and tailored solutions to meet the unique needs of aviation operators.
- Innovation: Leveraging advanced technology and engineering expertise to develop innovative products and services.
- Integrity: Maintaining the highest ethical standards in all operations and interactions.
- Sustainability: Committing to environmentally responsible practices in all business aspects.
Financial Performance Metrics
As of September 30, 2024, AerSale Corporation has reported the following financial metrics that align with its mission to drive growth and operational efficiency:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Total Revenue | $82.7 million | $92.5 million | (10.6) |
| Gross Profit | $23.7 million | $23.5 million | 0.9 |
| Net Income | $0.5 million | $(0.15) million | N/A |
| Cash and Cash Equivalents | $9.8 million | N/A | N/A |
| Total Assets | $601.5 million | $553.9 million | 8.6 |
Business Segments
AerSale operates through two primary segments: Asset Management Solutions and TechOps. The mission to provide excellent customer service is evident in the performance of these segments:
| Segment | Revenue (Q3 2024) | Revenue (Q3 2023) | Change (%) |
|---|---|---|---|
| Asset Management Solutions | $50.4 million | $65.1 million | (22.5) |
| TechOps | $32.3 million | $27.4 million | 17.6 |
Strategic Initiatives
AerSale’s strategic initiatives are aligned with its mission statement, focusing on:
- Enhancing Product Offerings: Continuous development of innovative products such as AerAware™ and AerSafe® to improve operational efficiencies.
- Expanding Market Reach: Targeting new markets and customer segments to drive revenue growth.
- Operational Excellence: Implementing best practices to enhance service delivery and customer satisfaction.
Conclusion
The mission statement of AerSale Corporation encapsulates its commitment to quality, innovation, and customer service, as evidenced by its financial performance and strategic initiatives aimed at sustaining growth in the aviation industry.
How AerSale Corporation (ASLE) Works
Business Overview
AerSale Corporation operates in the commercial aviation aftermarket sector, providing a platform for managing, selling, and maintaining aircraft and engine parts. The company focuses on maximizing the value of Flight Equipment during its operational lifecycle.
AerSale categorizes its operations into two primary segments:
- Asset Management Solutions: This segment focuses on acquiring strategic Flight Equipment and extracting value, either through whole asset sales or disassembly into used serviceable material (USM).
- TechOps: This segment provides maintenance, repair, and overhaul (MRO) services, along with sales of engineered solutions and other serviceable products.
Financial Performance
For the nine months ended September 30, 2024, AerSale reported the following financial metrics:
| Segment | Revenue (in thousands) | Gross Profit (in thousands) | Gross Profit Margin (%) |
|---|---|---|---|
| Asset Management Solutions | $151,475 | $57,301 | 37.8% |
| TechOps | $98,850 | $16,890 | 17.1% |
| Total | $250,325 | $74,191 | 29.6% |
Comparatively, for the nine months ended September 30, 2023, the total revenue was $240,081, indicating a 4.3% increase year-over-year.
Revenue Breakdown
The breakdown of revenue for the three months ended September 30, 2024, is as follows:
| Category | Revenue (in thousands) | Percent Change |
|---|---|---|
| Products | $47,719 | (28.7%) |
| Leasing | $6,900 | 177.4% |
| Services | $28,065 | 21.2% |
| Total | $82,684 | (10.6%) |
Cost Structure
AerSale's cost of sales for the three months ended September 30, 2024, amounted to $59,009, resulting in a gross profit of $23,675. The detailed cost breakdown is as follows:
| Cost Category | Cost (in thousands) |
|---|---|
| Cost of Products | $31,680 |
| Cost of Leasing | $2,424 |
| Cost of Services | $24,905 |
Operating Expenses
For the nine months ended September 30, 2024, AerSale incurred selling, general, and administrative expenses of $69,384, a decrease of $8.3 million or 10.7% compared to the prior year.
Net Income
AerSale reported a net income of $509,000 for the three months ended September 30, 2024, compared to a net loss of $148,000 for the same period in 2023. The earnings per share (EPS) for the same period was $0.01.
Cash Flow and Liquidity
As of September 30, 2024, AerSale had $9.8 million in cash and cash equivalents. The company used cash in operations amounting to $26.4 million during the nine months ended September 30, 2024, primarily for feedstock acquisitions.
Debt and Financing
AerSale's debt obligations included $78.5 million outstanding under the Revolving Credit Agreement as of September 30, 2024, with an availability of $93.7 million. The company also entered into an Equipment Loan with a total advance commitment of $10 million.
Inventory Management
As of September 30, 2024, AerSale's inventory was valued at $373,434,000, with the following major classifications:
| Inventory Class | Value (in thousands) |
|---|---|
| USM | $88,781 |
| Whole Assets | $193,955 |
| Work-in-Process | $31,694 |
| MRO and Engineered Solutions | $59,004 |
Recent Developments
In April 2024, AerSale experienced a significant loss due to a fire at its leased secondary parts warehouse, resulting in an estimated inventory replacement value of $67.6 million. The company has submitted an insurance claim for the incident.
Stockholder Equity
As of September 30, 2024, AerSale's total stockholders' equity was $451,524,000, reflecting a slight increase from $445,015,000 as of December 31, 2023.
How AerSale Corporation (ASLE) Makes Money
Business Segments
AerSale Corporation operates primarily through two business segments: Asset Management Solutions and TechOps.
Asset Management Solutions
This segment focuses on extracting value from strategic asset acquisitions through leasing, trading, or disassembling for product sales. The revenue breakdown for the nine months ended September 30, 2024, is as follows:
| Category | Revenue (in thousands) | Percent Change |
|---|---|---|
| Aircraft | $34,388 | (40.5%) |
| Engine | $117,087 | 26.3% |
| Total Revenue Asset Management Solutions | $151,475 | 0.6% |
The decrease in Aircraft revenue is primarily due to decreased activity in the B757 product line and lower leasing revenue. Conversely, the increase in Engine revenue is attributed to heightened activity in the CFM56 product line, resulting in increased Flight Equipment sales.
TechOps
The TechOps segment provides maintenance, repair, and overhaul (MRO) services, along with the sale of engineered solutions. For the nine months ended September 30, 2024, the revenue details are as follows:
| Category | Revenue (in thousands) | Percent Change |
|---|---|---|
| MRO Services | $83,430 | 6.0% |
| Product Sales | $15,420 | 45.7% |
| Total Revenue TechOps | $98,850 | 10.4% |
The increase in TechOps revenue is driven mainly by higher MRO product sales, which reflect a growing demand for maintenance services across the aviation sector.
Gross Profit Analysis
For the nine months ended September 30, 2024, AerSale's total gross profit was $74,191, representing a 9.1% increase from $68,005 in the same period of 2023. The gross profit breakdown by segment is as follows:
| Segment | Gross Profit (in thousands) | Percent Change |
|---|---|---|
| Asset Management Solutions | $57,301 | 19.5% |
| TechOps | $16,890 | (15.8%) |
Revenue Recognition
AerSale recognizes revenue based on the performance obligations fulfilled, which include:
- Leasing revenue from aircraft and engines, recognized on a straight-line basis over the lease term.
- Service revenue recognized as performance obligations are satisfied.
- Product sales recognized upon delivery of goods.
Financial Performance
For the three months ended September 30, 2024, AerSale reported total revenue of $82,684, a decrease of 10.6% from $92,484 in the same quarter of 2023. The financial data is summarized as follows:
| Metric | 2024 (in thousands) | 2023 (in thousands) |
|---|---|---|
| Total Revenue | $82,684 | $92,484 |
| Gross Profit | $23,675 | $23,474 |
| Net Income (Loss) | $509 | ($148) |
For the nine months ended September 30, 2024, the company reported:
| Metric | 2024 (in thousands) | 2023 (in thousands) |
|---|---|---|
| Total Revenue | $250,325 | $240,081 |
| Gross Profit | $74,191 | $68,005 |
| Net Income (Loss) | $3,149 | ($2,831) |
Cost Structure
The cost of sales for the nine months ended September 30, 2024, totaled $176,134, compared to $172,076 in the previous year. The breakdown includes:
| Category | Cost (in thousands) |
|---|---|
| Cost of Products | $99,830 |
| Cost of Leasing | $5,511 |
| Cost of Services | $70,793 |
The selling, general and administrative expenses decreased to $69,384 for the nine months ended September 30, 2024, compared to $77,724 in the same period of 2023, primarily due to lower share-based compensation and payroll costs.
Debt and Financing
As of September 30, 2024, AerSale had total liabilities of $149,932 and stockholders' equity of $451,524. The company reported outstanding borrowings of $78.5 million under its Revolving Credit Agreement.
The effective tax rate for the nine months ended September 30, 2024, was 5.2%, down from 59.8% in the same period of 2023.
AerSale Corporation (ASLE) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Updated on 16 Nov 2024
Resources:
- AerSale Corporation (ASLE) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of AerSale Corporation (ASLE)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View AerSale Corporation (ASLE)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.