Fortress Transportation and Infrastructure Investors LLC (NASDAQ:FTAI) Q1 2023 Earnings Call Transcript
Fortress Transportation and Infrastructure Investors LLC (NASDAQ:FTAI) Q1 2023 Earnings Call Transcript April 27, 2023
Operator: Good day and thank you for standing by. And welcome to the Q1 2023 FTAI Aviation Earnings Conference Call. Please be advised that today's conference is being recorded. I would now like to introduce your host for today’s call, Alan Andreini, Head of Investor Relations. Please go ahead.
Alan Andreini: Thank you, Justine. I would like to welcome you all to the FTAI first quarter 2023 earnings call. Joining me here today are Joe Adams, our Chief Executive Officer; and Angela Nam, our Chief Financial Officer. We have posted an investor presentation and our press release on our website, which we encourage you to download if you have not already done so. Also, please note that this call is open to the public in listen-only-mode and is being webcast. In addition, we will be discussing some non-GAAP financial measures during the call today, including EBITDA. The reconciliation of those measures to the most directly comparable GAAP measures can be found in the earnings supplement. Before I turn the call over to Joe, I would like to point out that certain statements made today will be forward-looking statements, including regarding future earnings.
These statements by their nature are uncertain and may differ materially from actual results. We encourage you to review the disclaimers in our press release and investor presentation regarding non-GAAP financial measures and forward-looking statements and to review the risk factors contained in our quarterly report filed with the SEC. Now I would like to turn the call over to Joe.
Joseph Adams: Thank you, Alan. To start today, I'm pleased to announce our 32nd dividend as a public company and our 47th consecutive dividend since inception. The dividend of $0.30 per share will be paid on May 23, based on a shareholder record date of May 12. Now let's turn to the numbers. The key metrics for us are adjusted EBITDA. We began the year well with adjusted EBITDA of $127.7 million in Q1, 2023, which is up 3% compared to $123.5 million in Q4 2022 and up 184% compared to $45 million in Q1, 2022, which had been adversely affected by Russia's invasion of Ukraine. During the first quarter, the $127.7 million EBITDA number was comprised of $107.6 million from our leasing segment, $27.4 million from our aerospace products segment, and negative $7.3 million from corporate and other.
Turning out to leasing. Leasing had a good quarter, posting approximately $108 million of EBITDA. The pure leasing component of $108 million came in at $91 million for Q1, up from $85 million in Q4. With strong demand for assets and the commencement of the Northern Hemisphere summer season, we expect Q2 will continue to grow. We remain very confident in leasing EBITDA of $350 million to $400 million for the year, excluding gains on asset sales. Part of the $108 million in EBITDA for leasing came from gains on asset sales. We sold $92.2 million book value of assets for a gain of $16.5 million, slightly below our expectations, but we have more asset sales coming in Q2 and the rest of the year and are comfortable assuming gains on asset sales of approximately $25 million per quarter, or $100 million for all of 2023.
Aerospace products had another excellent quarter with $27 million of EBITDA. We started these activities at the end of 2020, and in the last six quarters have booked approximately $120 million of EBITDA without any contribution from PMA. We see tremendous potential and continue to feel good about generating $20 million to $30 million in quarterly EBITDA and think $100 million plus in 2023 EBITDA remains very doable. We feel confident about this number because we're seeing a rapidly expanding backlog of aerospace products business with other leasing companies, maintenance and repair organizations, and airlines. With that, let me turn the call back over to Alan.
Alan Andreini: Thank you, Joe. Justin, you may now open the call to Q&A.
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