AerSale (ASLE) 8 Nov 232023 Q3 Earnings call transcript

Good day, and welcome to the AerSale, Inc.

Third Quarter 2023 Earnings Conference Call. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Jacquie Carlon, Vice President of Marketing and Communications. Please go ahead.

afternoon. Good welcome Third to Call. XXXX to everyone like Quarter AerSale's Earnings I'd the Finazzo, Financial Garmendia, Nick today Officer. Executive Conducting are Martin Chief call Officer; and Chief

results I'll important on filings and involve that Securities call the section Before performance considered the promises found nor differ and our year do securities statements regarding forward-looking and to on Nick guarantees, and materials materially company's filings not business. the achievements the to also financial refer to the the the by from statements available filed forward-looking with our call. We'll matters the could with assessing of the and indicated be its metric on uncertainties in the to non-GAAP Exchange SEC. ir.aersale.com. With to view XXXX, we website, Commission, our statements of we federal fact to laws, GAAP XX, on at of within earnings other in to discussed can performance in are statements Form relate could measures this quarter's actual results. Important that reconciliation our Investors should results, factors SEC, but the presentation that, to the are Risk historical for that cause of be AerSale annual cause These differ important XXXX, actual non-GAAP for nearest turn made known ended March that statements of we other other you may made the statements uncertainties Finazzo. materially These December future over current A all address X, XX-K Factors want call unknown this materially the those metrics on risks results of as and and section discuss different that and this forward-looking any identify risks, from including events from those that be business report remind the performance. expectations or neither results, important factors actual cause meaning

thank provide Thank our before of and updates review I'll you call turning for afternoon, to overview begin you, greater to the the Jacquie. a numbers with today. operational quarter brief the detail. Martin Good call and in joining over

included quarter prior million. past flight aircraft we included third levels Our sales. Sequentially, in acquired flight months, million sales of we to equipment against the year. the feedstock the over monetize notably reported an consolidated during sales second of million, and increased third engine XX which was $XX.X sales of sales of period. as both engine $XX.X results the This In result which XXXX the quarter total, improved strong period, of sales $XX increase equipment largely were the increase over XX% able quarter of the and

While for the we're fourth results now additional pleased volume, in flight the third our sales third to close the expected several quarter. increased expectations, are quarter trailed forecast slated equipment to as quarter see internal

our quarterly performance are rates that tend because flight both each of the and sequential would results of time tools investors assessing year Therefore, timing like to feedstock better do year-over-year patterns. sales. to be we As to analytical I acquisition full remind revenue or our periods quarter, lumpy equipment than

revenues to lower during increased was feedstock prior compared with ago performance EBITDA X the The improvement the million EBITDA aircraft period, year's sold the and we the third Asset PXF-converted the adjusted portfolio. period in beginning segment higher period. in prior X acquisitions, $XX.X profitability, third and engines compared better equipment Management, $XX.X and million, with level flight year, to the result USM was leasing In of flight of in a $X.X quarter sales XXXX XXX the and just volume. At were loss equipment current aircraft to year the in USM of to quarter Turning year. $X.X by million, in sales during the compared the million X partially stemming the engines monetization from our sales and from offset compared prior no reflected sales part growth Higher quarter. -- with quarter the in

third X the highly a in PXF-converted the we to in are fourth XXX quarter, sales in aircraft, quarter a be In delivered to third addition expected equipment now to XXX-XXX deliver aircraft, and flight the modified there the expected delivered quarter. that are

a year in anticipate additional forward, Looking pipeline the flight delivery in solid before the with XX sales, planned for quarter, to close equipment the an engines expected fourth for the we year-end. finish to and aircraft with

business, be doubled third the success is of will the USM $XX X under feedstock. XXXX, of first sales. on on update date, be and Elevated feedstock current million program and drove in have and place $XXX result which the the additional conversion just of direct we've aircraft of inventory air Year-to-date, is the at contract. converting to we've XX million immediately market. which the levels to we This continue airframe PXF X the acquisition into last total feedstock following year, unfavorable mix XXXX. the sales to sales different our Turning aircraft $XXX the sold compared To interest quarter, goods leased year parts higher XXX a lower waiting Consistent to aircraft rates a as and conditions, create to which market quarter, during our of a our in continue under what than higher cargo the included million of dramatically originally forecasted these of part fourth when currently instead of feedstock, months compares to than an to physical expect closed engine demand cargo prior program anticipate quarter sold. In conversion. of longer nearly or expected or acquired Conditions we end with take approximately backdrop for peaked. delivery consumer given for demand and experienced higher pandemic, our communication an and in the with start will

fourth equipment, of and leasing we at several facilities. This aircraft opportunistically gear had fewer we at period. million and compared we the use third larger X programs large to in has $XX.X resulted on in landing program XX and no period, sold $XX.X continuously our quarter. some into our flight facility. our continuing highest million, profile aircraft storage aircraft of during new aerostructures building, the portfolio, our to which shop, Because began best lease sales replaced ago completion and assets, and year from is our higher the fill in At gear our with that Lower been we're these return segment, shop major a work onboarding a made of customers of the of Finally, landing the the sales airline long-term we're a triple our to almost engines to aerostructure new the current our in additional quarter monitoring by which XXXX. of than customer TechOps X since U.S. in after moving provided the compared size lease. In reported available engines capacity

Solutions. to Engineered Turning

anticipation and of flight items FAA. the this AerAware. conclusion been we're the of of vision We and in tests issuance have the At STC all are documentation completion time, the system, FAA final working completed, by process our checklist near of review of approval enhanced through

of In addition, available eye, visual October for advantage. received advantage only we this the late we a over visual in with naked approval make will announced product FAA AerAware that level the XX% and which first

value are provides lowering proposition We it the award, the proud of delays of by system our a to customers, as and minimizing benefit weather-related this environmental lowers enhances benefits costs emissions. primary safety, offering associated consumption as carbon fuel compelling operating validates and AerAware, by

Turning to capital allocation.

to healthy, To $XXX additional programs sheet, the conclusion, period sustain cash quarter feedstock capacity. Further, of unlevered the an We on net continued quarter sheet enabling shown acquired, feedstock almost have of and previous third revolver a the purchases. In liquidity, free million generation, last our the year. ended of we roughly and our our monetize funding quarter improvement continue of date, as remaining of over flow have any increase with significant anticipate feedstock and in growth. we $XXX results we've to already balance same cash business million approximately balance consisting acquisition acquired

feedstock availability better driving quarterly flight Our performance is growing and equipment sales.

strong flight as stakeholders. we thank efforts to year, positive and resulting our their finish to AerSale their to their our continue we Given XXXX, the of in currently a in volume success continue future. significant anticipate of this foreseeable the anticipate have acquisition sales, quarter employees inventory with in we the to commitments equipment to sales into for on program dedication feedstock all our momentum. I to We convert trend the available delivering like would fourth to expected

Now the to look a I'll closer for over Martin? the turn at call Martin numbers.

an updated with quarter overview start our financial our performance XXXX. guidance will for I of and third Nick. end Thanks, with

revenue Our of consisting a $XX.X was $XX equipment was aircraft. engines Boeing of and million, X PXF-converted sales, Revenue and included consisting third quarter of flight in and XXXX in $X.X aircraft. million third flight of XXX no million which $XX.X engines quarter the included million equipment only sales, X

multiple long significantly during progress. more sales asset measure equipment purchases of based vary term our monitoring have sales a over we As may calls, is quarter-to-quarter, we flight the progress believe earnings and out from pointed on appropriate and

just of mentioned. the $XX.X increase demand Third part sales USM from quarter year were Asset I in Management flight third the because to ago revenue was of lower sales revenue because up X.X% to equipment of higher XXXX. rose the in revenue quarter of million third was quarter, offset $XX.X the and quarter feedstock, which in million from $XX.X availability down by leasing. TechOps partially from million

storage aircraft, landing fewer This XXX weaker was TechOps PXF contributions the greater our facilities. by and on-airport offset business our conversions customer of prior impacted customer which from enabled by was by partially aerostructures revenue adversely aircraft. compared associated as increased with outsourcing and periods MRO dedicated in to to capacity was aircraft gear Our

of XX.X% $X.X The and costs in margin facility AerAware expenses general and primarily XXXX included of Selling, noncash primarily and sales. Selling, million administrative the mix administrative quarter to quarter in noncash driven the gross expenses of general XXXX, XXXX, higher expansions. and Third which were selling, XX.X%, quarter were by compensation expenses. were and of the million general third compared expenses. million equity-based equipment of compensation development in in third third $XX.X was by increase quarter million administrative to the equity-based related driven flight $X.X expenses of included $XX

third the adjustment compensation, loss $X.X items, issuance inventory to quarter loss compared in $X was quarter the Net 'XX million secondary million same the in warrant of $X.X of from adjusted private the third adjusted and $X.X of XXXX. $X.X noncash equity-based third XXXX. Adjusted net the million quarter, was loss mark-to-market Adjusted had of in million, reserves third for to quarter of Third the in income quarter third costs, operations quarter liability, net an relocation was and for XXXX. facility costs, million. million these $X.X

diluted quarter XXXX. diluted share X, the compared per to loss per share earnings of of quarter was $X.XX third Third in

share in compared greater of quarter flight loss sales. sales diluted was loss the growth adjusted in of diluted result was a USM Excluding above, $X.XX, number per million year quarter and the prior period. third EBITDA for share adjustments a adjusted XXXX, to in the a XXXX. Adjusted third EBITDA earnings adjusted was of quarter mentioned to higher The of the of $X.X third equipment $X.XX compared million per of $X.X

a the $XXX cash capacity inventory earnings, available cash substantial operating going over in which in forward. We revenue million with our of used with which of feedstock $XXX.X from for million our $XXX in sheet, gross of resulting revolving costs cash quarter expanded sale, consisting Next, a metrics, liquidity, activities to flow to make-ready terms investment credit of drive should million. $X.X $XXX.X facility, can on prepare in $XXX.X million was newly be our million acquired and $XXX of and and balance ended million, million

expect and updated Finally, to We for adjusted generate EBITDA to to million moving million to of XXXX. million our $XX million in revenue XXXX. $XXX guidance now $XX $XXX of

and for these of asset business flight equipment the delivery of planned factors. can Our flight timing or do current with of based time roll close remaining of quarter some to but vary revenue for equipment variety a of before reflects limited guidance to into year-end. year, on weeks the by exact EBITDA sales expectations core sales so, of of and by the XXXX. amount are The those days adjusted could slated Therefore, first that sales the end because our

purpose-built and that, third to acquisition model We generate and that are program, the us for broad in our with we long-term driven of in our feedstock all pleased are by Operator, capabilities was we value recovery success sales our will of quarter, stakeholders. With confident the drive excellent remain our take questions. enable the which and to execution ready

first comes Bert Instructions] [Operator question The from Stifel. from Subin

could some Have showing you I -- to quarter? And the you think in guidance you've in us Can in million guess, of gets to quarter? any $XX at on I just or this through side. said just as whole least any sort that XXXX, on up you're delays. Can of into think mostly visibility 'XX? rollover which we year, you about sales fourth you the guess, see thinking way give commentary challenging of led has how be about visibility what your that's just seems based Martin, and about slippage your had about that today on update, give asset timing sold how the those, some quarter. the been I us, first to is know some you

as schedule. have So at this actually anticipated we guidance, as point overall far delivery

visibility So that scheduled potential equipment us we of the for remainder gives that have better flight the into year. the sales

As deliver the take --to comment we of possession could factors, that of the why a fourth different note, including the lot we which assets, of ability potentially customer did is assets some their into make and move those to those quarter. there's

close have kind forward and they of this are right note, all to under those now, these positive On and assets a contractual moving end we're to agreements. to overall. agreements overall However, get closed year,

those to year, to would in able if quarter current So we not those first the expect we XXXX. the close of in are close

in Just that. asset so under for then, where been you in then And have clarify, of expectations just, 'XX I can guess, there's just of guess, how Or teeing of just contract 'XX, I guess, terms on stand? of Okay. timing many of much side the I to up XXXs sales. the sort things say, movement and you because the

under lease the or As be then of XXXs now, right potential we we still contract in marketed to XXX remaining the have being have and that's year, sold are X that for sale. current

out happen. guess, quick you us between then like probably X to on process. seem just when -- know front. STC just happened And their seems to weeks be got Okay. people granted? trying through be the I end over I is like as figure August, follow-up, when nails it what's final into biting seemed happens was commentary you hopefully what AerAware it so that's going a like visibility to expected to positive last pretty It or your a they're walk Can test, through the of an what best the and, now and going being

rules whatever of FAA: testing complies doing So the of done, are. is, flight reports you're what that an to demonstrate you the whole certify testing, that STC trying obtaining testing the going the happens you're going product the with process to to through in anticipation all as flight the that submit typically how you've is

reports. back what to because get X cases, there you've complexity the us. took type for XX this is many by to as recall, flight review if think tests that and as us; that months satisfy It FAA the that of I days took much FAA, over in And wasn't did start FAA. to documents reports we case. the would finished got testing, ultimate time occur you the it some certainty your return the So I approval. Typically, not to as a of we number our in to documents FAA submitted Because but would the do to their all certification, of of

to completion several of slightly forth testing. That of FAA testing, satisfactorily. we're the much. past just with not completed the phase. balance but lot that now the on completion shortly of testing, flight testing after back type by had of Because was and weeks on documentation dragged within of a So the And in flight do we

for back looked reviewed, should fix the in word doesn't review of just the a sentence, "Look, at. that working and been people the you review go Now every we've something revise last at again. says, X, us incredibly And document And in the their There's little the is summary. lot every what time-consuming. describe more FAA, have and they've at very long. send up know, you phase, we again weeks on to at And of to since, we'll the the need and the then I asked is just it's the it and few FAA We'll it. it minor now, and completion If it's don't it, really that stuff, waiting way comments gives finish this. And back, documentation it's [indiscernible] the stage or them, documents to of a but except it's editing to us on revisions, it's do involved complexity we're now just that our X fix this." to there's and a lot, they documentation because is like or a us taken FAA

a here's you You everything give them say, summary us do. to and "Look, asked

we everything Here's did.

that FAA -- documents to have documents all outstanding. there of reports Here's the but last at not reports the including all you back that's there overall more are see day, -- do. and you substantially guys we've the but The left I all today, we off. now submitted, amount more few yet There very you've submitted and every approved." don't from that there. that's compared documents as for are I see that we're that it. on comments back thing are report. And do signed the And coming we're that because to to yet, that There's us summary -- we're nothing the is we we've very point the not we're And

from RBC Ken Markets. And the Herbert question next Capital comes from

the up If understood million. $XXX wanted sales. just correctly, to you've on asset maybe I to Nick, committed follow

deploying $XXX get you've just you're and as upside the of the where on sort think done the how's that pricing for And terms we Do feedstock. I comment expect of opportunities million $XXX million year? in year-to-date the into of there that much capital. of if environment to seeing could you maybe you end the out

work, So we're it of of I the It that of be don't to more extract they their lease think really grow buyers could equipment the a of versus lot to the the have us a it of do farm to need they lease, on that have checks, that They much. to type have because but are out, cetera, that $XXX continues others They The to an anticipate financial feedstock requires buy that capability year. million out It changed balance value X with flight that have capacity. that in are aircraft acquiring, needs buying heavy capability an work. favors be it we repaired, hasn't to aircraft costs -- that. lot engines don't et off do higher. we

we're out will us that big expected bow the it of our OEMs feedstock And think it older come still the flight OEMs the of So even value extract but though and we've stuff and is long kind that though a to opportunity the to even bit even equipment these by see year interim, up. But equipment will of the the in I in come now, to seen this, turbofan when model, we taken all this it's we to the with flight – though remains. wave getting continue of how delivered, service of. catch buying technology can MAXs even get equipment, business type and the problem counter keeping that fits flight little a that is still all geared depriving

see don't any that. in I change So

a about finished board thinking we meeting. we're As just --

that see change As this start 'XX, seen don't and over in we're our and any accelerating thinking engines. as see their resolve into delivering acquisitions point at what have we've that reliable I more continuing OEMs problems thus the new far about aircraft I XXXX.

to on the on demand other the like, your to there. up on hand net turbofan you out? legacy geared probably VXX, issues that, maybe arise feedstock, that of the and for But it material hand, follow one opportunities in because engines; call availability CFMXX the that support comments of How the from the restrict there are turbofan strengthening wanted is I really does the issue that geared And would factor sounds affect to particular. you? could

engines, most engines would to these eventually a issue for we parts those or would strong. that piece for have are end left. that going we're bought parts for We're net at CFMXX-XBs part power of that strong. engines, of to part-out, Where time that. The you're engines specifically get is taking finding having have demand to the you greater older mean, I USM lease see fact. that having when to can interested thought sell and taking selling result part-out engine that going quite the for get shop The staying from shop as as service. And an that putting do they that older in engine that bought in here a to are or don't we the them they spend that's few engines will deprive you value. But continuing it or we going or telling to to haul increase be very long we through visits or leasing difficult customers today, service said, they to were that engines less would engines going And the I because that is, engines that lot question we a we level. be very AXXX, purchase same all AXXX people already out them USM of up at be as value USM as that's life those the that low the be turned seeing technology technology And long of serviceable value, whether -- is And sell We at we a whole than out for coming remaining engines market support that to the do. on as good And going come to the that engines don't the money is us as mean, whole I want today? you're [indiscernible]. into that receive went there's care. parts are on purchased come from? to the back of as parts lease, the are engines the available good shop, and the I can't thinking aircraft amount the are we

So of parts, of is there leasing, yes, an equipment. for and whole trading there's upside limited for the the USM engine but supply of a the that engine, supply whole demand

or I necessarily And whole doesn't more offset we've so to answer your to don't USM I better quantified know us what's sale that, that And that lease sell. or for assets know question. available the for have to more

I lot of if Martin. final for I helpful. a pieces That's maybe question, -- there. appreciate could, moving the And there's one and just

fourth the USM As EBITDA is from virtually TechOps, come sort in increase quarter the of adjusted the more are fourth from expecting parts of sales? from to much you of we about contribution maybe in the asset of implied sort the business? quarter, expected whole other think and sequential Or

the equipment improvement sales, But we overall. flight guidance from overall the the I think definitely to factored number the business. be into the that in a continuation see definitely of twofold. of the side USM expect increase have it's that we that We will bulk overall of have through visibility

thing would these to bought -- a to around whole it It's part-out because we're most them as bought whole for when that to line. at does sales skew whole have If parts. as mean in then up an we them of note. be your or value doing. I it's for a what want think we as whole selling you perception parts that engine. But don't flight business. don't sell USM whole we popping or And that were engines reporting reality that buying asset segment. engines of flight we grow as assets of it's important different amount sales assets USM opportunity our When USM of I we USM it's be of is whole because turn we're equipment confused business our to asset equipment not the USM. and the could, just by doesn't lease still add we're telling USM and really just just asset, It's a the part of And is sales. we up popping It's rather than the sales But

next Ciarmoli The question from comes Michael from Truist.

with you? generates better a pricing tight of this market, and of returns? equation asset with or Just valuable returns? sales? thought, do at I kind where asset for look final what's But What parts whole sale part given that whole on get mean, you you mean, to can for better sale. think Nick, simple I parts? you stick I individual you piece do I that obviously, individual mean, faster can better inventory you? A guess, more move question. What's

net IRR, the versus Well, a part-out but greater IRR, much we a a the at quantum longer-term may be process of smaller. short-term don't produce would revenue look because engine sale necessarily an of

weigh have moment. the aside we to IRR So for put --

in the versus if a look I think the acquisition net net it get today? everybody's asset in a think much, we I then same flip if straighten we today, factor we whole And much out if selling engine even parted Because selling as the factor we sell what when think carrying asset picture which you interest of we today value answer. costs, interest and will the of the makes that make we USM, if that more skews the an lot a don't to we almost engine. What is quickly without always produces of can that. And is, of result then then going but additional be difference, and that volume what could if we and because time of as of see a to route have. out struggling that's whole what's with I the or longer that big IRR, the we IRR we get dollar just what I whole feel asset a at you amount We that had went may get volatility. or dollar enough the we of sales forget with versus we asset, but because value no interest, we of right sales, higher sales can dollar route, small So would don't I can the today that feel money parts, big long went or or the lot with choose that, view and as get well, a it we longer guys

right answer with a where the money basis, is better that's get we on I the the asset. short-term go if same think or we

then I flow top that sounds and could a you there? also it Okay. helpful. How sheet. to the at inventory how it. the kind any cash grow line. potentially should drives that parts, aircraft of just That's feedstock you're fourth looking year winds sense balance of and quarter? at up frames, we down maybe color think, Can like helps million next into looking mean, us to, think the that? Got about purchases, And I of inventory $XXX on the get the Just trying give

overall I USM approaching million in closer sales already starting overall $X side, pickup see a say from probably in We're of monthly would about the to volume. we're to sales. kind

our as level to on USM keep kind again, $XXX annual could And strength assets. that as about identified we piece put such assets of again overall. We're disposition of on the again platforms demand on kind of overall that that we we sales we $XXX have, portfolio, ready seeing rate if million. Based opportunities then [indiscernible] being them increase leasing taking run million the being increase parts, the of we have also million on CFMXX. on parts of side as volume lot lease. A to in and $XXX and the be and repaired based a piece to to certain of historic rates the So those volume have are

sales as do well, flowing 'XX be to increases So with and the see you'll to see in will asset to leasing benefits those that opportunities going portfolio. feedstock, you're USM, beyond. and seeing And there start through increases you're in always again, going whole

kind you Got it. Martin, then, Okay. on of hit And it.

even $XXX the the USM the was kind can you the amount give dollar for said year-over-year. What run rate you think of Or USM. I in million quarter? if us actual

last $XX did you USM think in I quarter. million to close

I think running the for around around, USM probably were give see, for let that, quarter, we sales, me overall, $XX million you overall.

call-ups. kind question, I just hardware thinking had inventory, you What's Elbit? of product. frame of know there? what -- going getting the just of of reservist kind sort maybe relates AerAware. supplier, choke as but supply Last about they're how points you Nick, on Obviously, a some having to are And over your any it or lot prebuilt chain

for for their contact plans own Elbit. part tragic -- Elbit, not in is they've plans we've contingency experienced They've contingency been the product guess, got I us. got place of in But this It's are in like never currently in their this place. manufacturing with events this. recent they've They times.

here shelf imminently. for want delivered and product the expect us, to They've it. get on got we product We sitting

they're So and manufacture to deliver. continuing

there's think happens effect to Israel. but all eventualities, we're way on to me [indiscernible] seeing at to me in any get ability Now not even product, the depends this and But Who don't it's on happen who point, able to knows? I be no on appropriate in our knows guess comment for for that. what

comes next Cowen. Ayers TD from from Jack The question

Gautam. on Jack is This for

in just in to past sale going. Just in you've QX. of campaigns baking sort I discussions. kind of that I X the the QX of here you're just wanted talked mentioned are are having know know guide. active you how And I of see sort asset kind that customer honing kind on in you of

be or inventory to first downside the could push-out, sort monetize but for at of more a XX upside to here? got [ strengthens you more QX? there's the it glance, do demand in like sort risk those you've seems like, there have could maybe, incremental do magnitude basically ] So Like, of ability in if you

scheduled flight of question, we, of to now and think the I'm So equipment I we have we year. close pieces and between identified so XX there planned that answering that your scheduled, actually are end the individual

and of have buyers, through we're who go of putting inspection. with hands equipment So delivery that and dates in those all working have process their our diligence to associated the due own them, conditions, towards have

they're if taken have have do, that to account everybody we'll we what into assets get We year. are supposed confident does the time remaining and delivered those that this

we closed the last year fall close And first invariably they the to Some closing this and business up where were quarter. bank the the that them quarter will day of had close. year, won't this going when we reason. the of going We out of was to customer one day us of knows the what for send money's who ended closing a in of next on the quarters

take up of to don't like the opportunities mean, quarter. And account assets into doesn't popping we that in identified I near So before even the additional that anticipate as I end when term. sell XX, this that anything the year. keep

we're probability the closing is up will XX, on end probability XX that XX, some tell. the Will we of to many? end What's is probability out? on we year. end we those replace than How I I will than some So those can't is up The many? this can't out. may that closing How others? scheduled with of think you on got that tell. that telling we may closing up XX. What may close more move yes. move less we've I

passenger kind was asking I Okay. the just specifically of XXX to freighter.

We the the delivery final -- We of of engine, the them the they're be sorry. the has delivered given a it phase engines. under would and of rectified with acceptance already. contract. I'm one is in XXX issue The on under aircraft. delivery issue the substitute been a We've engine, had thought

it. Got Okay.

to incremental X under is like... contract? So I already that the you've got guess,

That is one. the

PXF XXX X sale. has only Guidance

Okay.

Like, helpful. any now That's XXXs. color And helpful. I I chance any be campaigns? you've would those, Because progressing there is got just are XX there remaining Okay. think other Or discussions well? guess, are there those any

customer to taking leased. So operation. second close they in are but they they're that's is one the with that delivery, but to their to the we've X going is with prospect not be want this available, quarter until the X talk is first -- aircraft aircraft get a today, to about that we the aircraft, X next not aircraft negotiating have got And then we

don't Beyond we that's have pending. that, anything

to We nothing have tell that of accounts have but got point, for. where working can X aircraft uncommitted, discussions for leaving yet you point to we're this but and X customers, the that I'd say, with don't potentially at X yet. we multiple -- it's it, -- leaving find "Okay, X customers aircraft we we for on identified pending we've have I it's uncommitted." discussions And those well, uncommitted XX XX more, aircraft no, with uncommitted, on aircraft that homes have aircraft But

a you Just deliveries fourth X to there's the little in to going XXXs. of quarter give be the color,

right [indiscernible]. being They're available aren't delivered those So now.

[indiscernible] deliveries from cargo conversions.

will that become available. Yes,

Okay. supplier. third-party Got your Yes, it. from

on makes then That Okay. And sense. one AerAware. just last one,

whether color Just and weeks case helpful. there government FAA in timing with here the next there. shutdown the couple would any impact conviction potential any of could have a on in be Any

shuts We've already that will certification government been the shut by be branch they if down. the told down

time can that there based can only was of last on only the couple government shutdown, speculate government So weeks. out I a hold a

part, lasts December well, leaves the November, them that, shut the and this that will so unfortunate happens get stay issue and and government happens, that's longer if for not got point. down who vacation, December if XXth paperwork the And our still all as But finish the close until I you in is X I'm FAA end we hoping So through once taking just and that into the way December knows. between clearly then I X potentially days, get that Year's. the on But mean, of New than at longer holidays STC. you've it imagine into that that. just would with Christmas if luck, up -- guys you've got up can't which in it caught the and to certainly then, another we're But delay we're

And we Bert from from Stifel. have a question Subin follow-up

the is or about now your there you how any think in just granting can aside there's quick for AerAware guess color STC Or of way are sort front, then possibility a you STC? customers? mind real future on kicked the right going off? an in that X give any you And things those Just I the stand approval Nick, are with conversations XXXX? STC waiting the from questions. question, Have

Okay.

see. Let's

to the out identified 'XX? of approval of It's back First our point. them. control how the takes respond revisions going we question. we're Possibility that long what Possible. had through FAA in this to I've STC at sent to

get the the cases, he's when In have; it with been could some asking busy. they sick, that because in of they've at this back guy's have guy's program. been and us with -- that. we're -- work couple the I'm he's they could they're dealing on complaining not vacation, make really, think too in, to great in And some us. not a change, to about a And FAA they they complex would minor days look in to You cases,

hands certified in just FAA 'XX. get So control. has I everything asked certified 'XX. that I believe do. then because that the possibility to to end that our It's to won't have We've their But 'XX. I to shutdown do And that out can't is it. it the we get reason believe a the will ask as could. in to it of have in it's continues add us in reason and you [indiscernible] this potential that get we will year done government Neither It to tell not then to of us it and the any do any certified I it's holidays pace.

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along been fly number have all customers that both So we to flying a and with new customers, of continuing been have that us customers expressed interested. interest an and with are some have

feedback. get We positive to continue very

when is time, of to manuals, when flight STC." long you've to and with a "Guys, to getting changed revise -- talking back of been "Okay, as time," people this you definitely flight to about be to once done for STC of see out All been Because start dealing we'd testing. simulators. the their this work a want They're don't guys have figuring "Okay. telling approval? it. -- little to of and implementation let been training we've technology. we going changing realize them for everybody the Great." Now new are but press are finished the Got going going customers their and approved we FAA yet, have lot we'd that bit before our long their it the the to airlines your you okay, say, better They're attitude potentially So taking it up has like, us start It's STC push a and the pushback. be some do got we that, we of customers, maybe because we little have come it. fed that have a with a get discussing when to bit

process. that they now know So and And that's they're the heard customers, on are. what that and start if it, is entire they interested they time I of want a time mean, we've the working to it. we've number testing flight from our level we're had getting much of finished from gone than the activity higher in the certification customers a since ever we we've through

customer, call airline. With big the is, it's we X the a the our of that's that big think very with because exception been customer beginning, and boy them one us that's from

session. our Nick question-and-answer to conference Finazzo, over Executive to remarks. the concludes for This Chief turn closing back would Officer, like I

on in AerSale. the Okay, our everyone line for guys for today listening, and your for Look, good interest everyone call for and thanks questions. you all the thank joining

beginning future. With in the this build positioned from overcome These year. investments well the fourth results balance have organically and people growth to the third past accelerate we've supply and We've feedstock in to infrastructure to our of see our quarter delays the investments over quarter, made used positive we're into us chain and out judiciously facilities. sheet

multidimensional into growing discouraged in perfectly leaning confidence model, integrated We're situated to business volatility. are future a and by short-term fully we're not our our and in earnings and have aftermarket. We thrive purpose-built,

and updated we the bright is of We us, to for cost-effectively opportunities keeping drive well forward convinced excited customers' a revenue base Certification commercialization AerAware of capability. come, We will future to capacity all are the will look the progress. expand we're you steady future. We're recurring continuing and look into M&A ahead to on AerSale. our opportunities at expect its of and about

So everyone, have good a evening.

today's attending conference Thank The concluded. has you now presentation. for

disconnect. now may You