Aersale reported quarterly revenue of $78.3 million, down on the $122.8 million in the first quarter of 2022.
The company reported net income of $5,000 compared to the $17.2 million for the prior-year period, with adjusted net income of $3.3 million versus $22.2 million.
Earnings per share were flat at 0.00, down on the 32 cents a share for Q1 2022. Earnings, or adjusted EBITDA, came to $5million, down almost $25 million year-on-year.
Cash used in operating activities was $62.4 million, which Aersale said was “mainly due to continued investment in the 757 passenger to freighter conversion programme”.
The company closed Q1 2023 with $87.7 million in cash and an undrawn $150 million credit facility.
During the quarter, the company’s flight equipment sales came to two aircraft, one airframe, and one engine, while it was “on track” to convert 11 757 aircraft to freighters. It said eight converted aircraft are “anticipated”, meaning expected, to become available for sale or lease in 2023.
“Lower sales were mainly on account of the pacing of flight equipment sales, which tend to occur at irregular intervals throughout the year”, the company said, reminding investors that “revenues are likely to fluctuate from quarter-to-quarter and year-to-year based on flight equipment sales and therefore, progress should be monitored based on asset purchases and related sales”.
Aersale said it expects revenue in the range of $460 – $490 million and adjusted EBITDA in the range of $70 – $80 million for the year.
“Our first quarter results were in-line with our internal forecast and expectations for the year,” said chief executive Nicolas Finazzo.
