NASDAQ$ASLE

AerSale Corporation · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

AerSale's Q3 2023 earnings were released, revealing a significant increase in revenue driven by flight equipment sales, though the company still reported a net loss.

AerSale Corporation reported a revenue increase to $92.5 million compared to $51.0 million in the prior year period, driven by flight equipment sales. However, the company experienced a GAAP net loss of $0.1 million, although this was an improvement from the $9.0 million loss in the prior year. Adjusted net income was $0.9 million, compared to an adjusted net loss of $1.9 million in the prior year.

  • Revenue increased to $92.5 million from $51.0 million year-over-year.
  • GAAP net loss improved to $0.1 million from $9.0 million year-over-year.
  • Adjusted net income reached $0.9 million, compared to an adjusted net loss of $1.9 million year-over-year.
  • Asset Management Solutions revenue more than tripled due to flight equipment sales.

Headline financials

Total Revenue

$92.5M

Previous: $51M+81.3%
EPS (adj)

$0.03

Previous: -$0.03+200.0%
Adjusted EBITDA

$1.9M

Previous: -$496K+483.1%
Capital Expenditures

-$7.77M

Previous: -$6.94M-12.0%
Free Cash Flow

-$7.91M

Previous: -$15.9M+50.4%
Net Income

-$148K

Previous: -$9.01M+98.4%
Operating Income

-$1.93M

Previous: -$8.49M+77.3%
Gross Profit

$23.5M

Previous: $15.5M+51.6%
Cash & Equivalents

$3.15M

Previous: $151M-97.9%
Total Assets

$554M

Previous: $510M+8.7%
Stock-Based Comp

$3.18M

Previous: $4.36M-27.0%

Revenue & EPS history

AerSale · Revenue · Quarterly

$92.5M

Q3 2023+81.3%vs Q3 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 updated its 2023 guidance, expecting revenue in the range of $400 to $420 million and adjusted EBITDA in the range of $40 to $45 million.

Tailwinds

  • The freight market is expected to recover.
  • USM availability is expected to increase.
  • Flight equipment sales are scheduled to close by the end of the year.
  • AerAware is in its final stages of FAA approval.
  • AerSale's purpose-built model and execution capabilities will enable them to drive and generate value for all stakeholders.

Headwinds

  • Softer demand in the freight market is expected to spread out the sales cycle of P2F converted Boeing 757 aircraft.
  • Continued supply chain issues have delayed the availability of USM and flight equipment available for sale or lease.
  • Flight equipment sales that are scheduled to close by the end of the year could shift into the first quarter of 2024 due to the volume of transactions and tight time frame to close.
  • The company's Q3 results were below internal projections as several flight equipment sales shifted into the fourth quarter, including the sale of a P2F converted Boeing 757 aircraft.
  • Weaker freight market has prolonged the sales cycle of remaining P2F converted Boeing 757s

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 Q3 2023

Historical avgQ3 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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