NASDAQ$ASLE

AerSale Corporation · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

AerSale's Q2 2023 results were reported, revealing a decrease in revenue and a net loss compared to the prior-year period, primarily due to the pacing of flight equipment sales and soft demand in the freight market.

AerSale reported a decrease in revenue to $69.3 million compared to $139.6 million in the prior year period. GAAP net loss was $2.7 million, a significant shift from the $26.5 million net income in the prior year period. The company updated its 2023 guidance, expecting revenue in the range of $400 - $440 million and adjusted EBITDA in the range of $40 - $55 million.

  • Revenue decreased to $69.3 million from $139.6 million in the prior year period.
  • GAAP net loss was $2.7 million, compared to a net income of $26.5 million in the prior year period.
  • Adjusted Net Loss was $0.6 million versus Adjusted Net Income of $31.7 million in the prior year period.
  • Company expects revenue in the range of $400 - $440 million and adjusted EBITDA in the range of $40 - $55 million for 2023.

Headline financials

Total Revenue

$69.3M

Previous: $140M-50.3%
EPS (adj)

-$0.03

Previous: $0.56-105.4%
Adjusted EBITDA

-$500K

Previous: $41.1M-101.2%
Capital Expenditures

-$4.81M

Previous: -$3.74M-28.7%
Free Cash Flow

-$7.5M

Previous: $22.7M-133.0%
Net Income

-$2.69M

Previous: $26.5M-110.2%
Operating Income

-$6.96M

Previous: $31.5M-122.1%
Gross Profit

$20.1M

Previous: $55M-63.4%
Cash & Equivalents

$34.6M

Previous: $197M-82.4%
Total Assets

$550M

Previous: $518M+6.2%
Stock-Based Comp

$3.03M

Previous: $3.92M-22.7%

Revenue & EPS history

AerSale · Revenue · Quarterly

$69.3M

Q2 2023-50.3%vs Q2 2022
Beat estimate in 3 of 15 quarters(20%)
ActualEstimate

Revenue by segment

AerSale · $49.4M total across 2 segments · Q4 2020

  • Technical Operations
    $32M
  • Asset Management Solutions
    $17.4M-82.3%

Forward guidance

AerSale now expects to generate revenue of $400 - $440 million and adjusted EBITDA of $40 - $55 million in 2023.

Tailwinds

  • Robust feedstock already purchased or in the pipeline exceeding $200 million year-to-date
  • Monetization of post-conversion 757s
  • FAA Supplemental Type Certification (“STC”) of AerAware, our Enhanced Flight Vision System for the Boeing 737NG series of aircraft
  • Strong commercial demand.
  • Core business has continued to grow with greater demand for used serviceable material (“USM”) and MRO offerings.

Headwinds

  • Reducing full-year expectations for our 757 program
  • Freight market has softened in response to higher interest rates and tightening economic conditions, which have eased demand for consumer products
  • Adds some uncertainty to the timing and type of monetization of these assets
  • Second quarter volume was meaningfully lower than the second quarter of 2022
  • Decline in adjusted EBITDA is largely attributable to lower flight equipment sales, and no aircraft sales during the period.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

-4.0%

Avg return

Earnings day

-3.0%

Avg return

5 days after

-2.1%

Avg return

30 days after

43%

12 / 28 earnings

Positive

+16.5%

Q4 2024

Best reaction

-24.5%

Q2 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-10.9%-12.0%-13.5%
Q4 2025-11.7%-12.0%-15.7%
Q3 2025-11.9%-14.4%-5.2%
Q1 2025-12.7%-13.4%-17.2%
Q4 2024+16.5%+15.6%-4.0%
Q3 2024-7.7%-5.4%+4.0%
Q2 2024-9.7%-12.5%-14.9%
Q1 2024+10.0%+4.7%-6.4%
Q4 2023-24.0%-22.0%-23.0%
Q3 2023-13.1%-12.4%-3.4%
Q2 2023-24.5%-24.1%+7.7%
Q1 2023-4.0%-4.4%-7.4%
Q4 2022-15.1%-19.7%-19.2%
Q3 2022-7.3%-4.8%-15.0%
Q2 2022+11.2%+13.0%+18.9%
Q1 2022-2.0%-1.4%+4.6%
Q4 2021+2.5%+11.0%+6.2%
Q3 2021-19.2%-17.6%-16.8%
Q2 2021+4.1%+18.8%+22.7%
Q1 2021-2.0%-3.5%-2.3%
Q4 2020+16.3%+25.5%+25.4%
Q3 2020+2.1%+8.2%+17.9%
Q2 2020+0.7%-0.3%-0.6%
Q1 2020+0.0%+0.0%+1.4%
Q4 2019+0.2%+0.0%-1.0%
Q4 2018+0.2%+0.0%-1.0%
Q2 2019-0.7%-1.0%-1.4%
Q1 2019+0.0%+0.2%+0.3%

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