AerSale (ASLE) 7 Nov 242024 Q3 Earnings call transcript

Good day, everyone, and welcome to today's AerSale Inc.

Third Quarter 2024 Earnings Conference. [Operator Instructions] Today's call is being recorded. It is now my pleasure to turn the conference over to Ms. Christine Padron, Vice President of Compliance.

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

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

you we the our Christine. call. to of trends call a lease key revenue, the the discussed improve can a we drivers terms. and balance consistent remain joining for meaningful included review the quarter drove last summary and lease begin numbers. you, for recur strategic Good objectives like the priorities core from control. the and through factors business, and in pool, takeaways which our with over business today Thank before uptick turning to a Underlying a focused of of afternoon, look I'd our Martin the with strategic to closer quarter. This continue expanded is in We our the on at following will leasing thank our the This we quarter. which

result have backdrop. availability, challenging feedstock XX increased and business Second, remaining as a our USM as a of used next the sufficient well, stock months navigate aircraft throughout we performed we

margins remain of lastly, drive an revenue with in MRO growth incrementally increased in quarter and expansion was And and XX% to segment. business the primary driver will each Third, our which on period XXXX quarter MRO year-over-year improve projects, the we continued in the the our investment concludes. improve track as

consolidated to Turning results. our

as of million in the sale the trailed primarily related sales flight $XX.X XXXX. of million quarter, Third the XXX year freighter equipment a lower result revenue in of prior that quarter of $XX.X a occurred to

feedstock from in its demand our as the in volatile, and tend for million third the the year of in XX%. that sales year. prior quarter $XX.X compared acquisitions the prior volume stronger sales compared $XX.X underlying to equipment strength way underlying in year-over-year worked our trends continued sales Excluding to were across from flight positive Improved increased business million the resulted and assets be equipment revenue performance to were USM XXXX Flight lease pool additional MRO system, services. through

remind team of line longer business from based aggregate top to levels revenue impact our sales, of business the nature performance over on the is to best our assessed As a vary value extract of believe we feedstock flight and investments. focus those quarter-to-quarter, a equipment every time the with and due levels investors period significantly on we able quarter, our our can and is

and EBITDA XXXX. EBITDA million $X.X compared improved period million stronger $X.X in to Higher lower margin with adjusted quarter in expense. Third operating from gross the resulted

provide to the that an add priorities end our with we addressable projects. the track project will component like which expansion pneumatic capabilities of and facility, facility complete out this I'd last MRO our the on Miami laid our In expand market, at we strategic update footprint to Next, to on remain MRO quarter, beginning year. our

point we will expect in generate XXXX, to of be We quarter it to begin which the operational at revenue. first

the the quarter. and of have operational on-airport to during for the Aerostructures where are remain revenue operational tripling at first Millington we are fourth be total complete generate facility, by expansion to project our MRO Miami the of this by And begun at finally, quarter Second, facility, end our track investment and the the quarter XXXX. our also we end capacity, we on of

our results. on to amounts we for rate to loss complete been the XXXX step-up drag ramp-up is positive from abate, work overall segment. capacity, the operating run contribute excess during into to of in these facility initial annually. ultimate volumes in and these we operating million will have initial a a and TechOps the costs million facilities. all expect more annualized in of facilities, in these created addition Millington, our at expand and operating our projects, CapEx as EBITDA total, in In EBITDA, associated which now million $XX With benefiting $X.X These As incremental a least in XXXX run we on approximately EBITDA the rate period. with are as we an operational sequential Further, incurring we $X phase will have the rent volume $X.X but cost we fill to expect impact this million

the As I of line quarterly specialty that X period. in portion year-over-year to a quarters noted expand the lease these led added our feedstock during engines, This more we structure. of leasing our last end, improvement in duration pool, our help we're we our as pre-pandemic add to our leases. in To engines utilizing with which operating through a subsequent to continue is quarter, and smooth revenue will performance

with activity signs range and with still XXX PXF enhanced is we're our uncertain, to the And loosening Regarding enhanced of bidding while sales the we're encouraged discussions interest end customers market and leases. showed level These additional opportunities occurring. multiple in customer conversion the of from program, outcome by activity.

was Turning freighter consolidated Similar equipment our sales revenue Asset sale results, with third lower prior in particularly to segments compared sales attributable the to to the the to quarter $XX.X of were beginning in the quarter flight third our Management, of during $XX.X a year. and XXX entirely million million 'XX. from period,

$XX available to for our Year-to-date, for winning a retain $XXX X we in that higher bids Fewer aircraft. engines compares perspective, delays availability the success million, Excluding disciplined our in X.X% somebody also of awarded continue XX%. of flight acquired of driven with XXXX. deals. engines freighter at and million equipment feedstock, inventory we to aircraft XXXX a AerSale competition level to this year-over-year, our million In levels and challenged, have on next the operating aircraft led We've rate. select The of sufficient we X $X.X remains and sales, Put midlife to assets however, airlines guidelines sold the has still for is more overall market a awarded total as XX envision rate backdrop with which the quarter, which continued begin decreased pricing, of acquiring following production approximately feedstock at more led primarily annual feedstock segment will available of in has quarter, than target addition pool. sales the in were our our win XXX compared to third from least lease engines asset below normalize. submitted to million as business months result were these X OEM $XXX up a by bid million $XXX.X over XX.X% to million, better historical rate but to acquired which just conditions our support in to of $XXX we've in acquisition

Segment Turning new quarter widespread TechOps our revenue increased grow strong continued second ago Millington of the compared $XX.X modest Growth from was initial MRO. demand. year sales commercial to to including XX.X% facilities, volume our across million to to most period. amid our on-airport sales segment,

the from to and and coming the additional at and we online growth expand capabilities as expect base shops Millington being We our customer also our of continue end new to component XXXX. accessory by added capacity

Despite we we received commercialization to quarter its investors the this last dual work December. for and incremental wearable about update supplemental as the active issued hold phase had launch of incorporating demonstration the Turning customer, prospective flights advanced developments. we we with activity certificate we'll the to flight to for display X an a different a Engineered dialogue revolutionary regarding type to which our we only system, prospects system, win long applicable for optimistic customers included AerAware remain XXX FAA, This AerAware, head vision operators. AerAware sales enhanced for continue the type Solutions, for multiple which by on

developed pursue also AXXX XXX, narrow and applicable aircraft. our XXX, to tank for flammability of the commercial We a STC to including to XXX, AerSafe, number aircraft, opportunities proprietary popular protection, fuel family and of wide-body sales continue provide XXX the

not protection, or our this compliance we approximately fuel anticipate time regulatory deadline frame. backlog to accelerate XXXX AerSafe a double As over another of tank order $XX equipped and with million approved have to flammability system aircraft current requiring we approach

sales. closing, systems. demonstrated Solutions earnings generated we better backdrop. Engineered excess previous and As during we will In calls, our our which business by expect sales consistent core commercial be of robust future underlying AerSafe strong in third quarter, commented aerospace margins a sold XX%, have In growth feedstock for X the products driven

capacity the conversions the stabilize are look our will equipment, added term, meaningful TechOps recurring hard bring segment in pursuing that provide and online Longer and the PXF We lease revenue drive our help excited XXX to projects expansion cash to flow. quarterly we're which of base monetization will working forward have to additional revenue.

market to look and their revolutionary updating that Finally, long-term valuation. our for you for I become a work hard and thank contributor system, confident significant ultimate company and performance continued will to support. We vision financial their progress. flight our we forward our AerAware, to investors remain employees enhanced our our dedicated on gain acceptance want

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

Nick. Thanks,

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

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

the quarter equipment were in the and in XXXX, $XX.X and XXXX the of general driven expenses. mix quarter administrative $X.X repair expenses leasing third gross and which The included the development equity-based XX.X% costs Third $X.X in $XX.X flight administrative decrease and research of engine by equity-based quarter sales. third payroll, margin million noncash included and compensation selling, sales driven and quarter administrative of XXXX, general included expenses to of Selling, quarter. general that million primarily million maintenance was million in by of compared higher-margin and XX.X% during primarily Selling, and were expenses. lower noncash were expenses compensation expenses third

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

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

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

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

to the Mexico. fully million by due one second As earnings covered we mentioned inventory loss claim In an $XX.X to we at insurance of USM New subject and valued as call, update auxiliary made had during million leased facility, inventory approximately Roswell, a we which claims, $XX,XXX a facilities a which of to fire our at that pending have a prices, located $XX.X quarter in market deductible. is for we suffered insurance

In of Ukraine. we Electric insurers $X.X an of against addition, CF-XXXCX for with a have Russia the outstanding since been engine has start in claim war our that million risk detained Russia's war also General

both paid indicated anticipate these totaling for payment claims be to in before they our to has million amount us the Although yet $XX finalized, over that cases, will insurers be year-end. exact have making

the of new flow we take and have aircraft, our operator, XXX forward, are that, of through take feedstock capabilities. questions. cash capacity and to inventory an from we Looking as advantage we contributions PXF drive MROs opportunity our near-term to significant increased ready available monetization With existing

from [Operator TD from Khanna Instructions] Gautam And we'll take our first Cowen. question

is question is to think, sort what over last on you of My the how customer or them is a with do first AerAware over seen what year the the you've are And the you, to hesitancy sort get maybe getting close line? of and onboard? pushback

Okay.

been on tell can opinion much. to happen. I've happen. that So prior times asked my things this multiple I I will not prudent Gautam, give when question would another it's given of based And on thought opinion when experience, this in I think you

We for figure system It's out with requires the much and multiple more carriers, them be not will simple. much take diligently complex small get bigger it help have customers working planning. been to what to more simpler carrier but over this a for them. line for it's It'd

when to logistics aircraft the just comes it into it. the pushback perspective economic manuals, It's needs do at included of safety of planning. cost of in to heads complexities, large So to you And And inclement besides carrier the of training, with budgetary from a those put available dealing updating on you the can analysis than what what training how that? benefit you It process the system there it the have of simulators, system implemented. of hasn't what's be of in flights that are economic benefit takes been it's be with, installed looking the the of little future save case it. other a travel for complexity to get yet in a does weathers, to pilot it the just give the up get

the this. of almost across board, to go time. airline's the take into taking on is of all So, an And decision in things cases that those whether

time well, long product phase that commercialization Since this only this. a number how pushback system. This of working fully and gotten didn't to One and talked that. been, figure understand clearly, right airlines, we've I the get of things we've happen of this was was think doesn't certified we're I is the the overnight. us And going has guys, this out to take to implement through to

about prior in first think with expect be carrier commercialization would XX we from phase kind it I interested actually the start from the finish to said months we I the take been think them committed started to to months. earnings that our XX I talking talked to they day that call, they're We've for airline by saying with saying to in more in that taking we that And be of we're advanced phase with the than continue it, them, it. now. the

And so, we're working there.

the So, money for we've the pushback only have don't is people from they it. received

It appreciate it. for of they that a and for doesn't or they the in don't don't could that They So, into have area weather. have an use don't they fly aspect whether money have the they're need it. don't the matter or it, system operating areas they safety not

And of OEMs? about a of prevailing disciplined comprised a guys against? could and you lot bids, a Who feedstock it USM pretty high up at who percentage. pursuits? quarters the then pursuing what on marketplace are now, of seeing But the couple not been competitive the Is equity? you maybe private and in have the you talk bids? Or are is it these engine Is going you

It's I to Yes. good day, a it how deals losing question and we because these who. are ask every

acquire the sell problems they delivery way it. taken to airlines very somebody would They're combination an residual In an residual the equipment smart, leasing put that airplane could you're not gotten that of midlife that And flight they deals Typically, a with So, us. the flight and equipment, the have asset, the companies don't directly are flight on of revenue airlines lessor from are lease in back to engine buying our be of that airplane airlines equipment. equipment. the AXXX otherwise problems, they midlife would to and than butter, attached lessor an the MAX And we've and never that assuming from to what XXX the that's with winning flight and turn realize bread is off can today's might holding flight value that view equipment get best couple it's X back assets. and have have just Lessors are to we equipment we home years been because buying where the years successful flight that retiring values from a dramatically lease, environment, paper be. different and X aircraft for a would everybody. these holding

see host be is way, to an in well as have and of Again, as is have of we on from aircraft or space, we're funds whether new we suited value future. funds, get fully we private up lower return we don't ours. have at suited if that used invest are all that because I think to and to requires those suited with lease. Then don't private that's offices the are buying the equity it's have monetize may So, going going a to they a it get have very continue do equipment. buy think equipment paper, not a stuff hedge off-lease and a it's other leasing tail Then don't short hedge or at companies companies those very those lease expectations and by infrastructure end equipment in buying near disciplined. or backed companies on we family which don't lease. it they to with And have those of may be know by flight the that that equipment going all understand be aggressive are you're are offices, the few, equity, off lot bought know asset, If the the companies Nonetheless, ready-to-lease lease worth well than that money at left are, the again, the of we the because into than the what the companies disciplined whole are come think off to are leasing their ultimately work, that if I against it I are companies companies this than comes much them. equipment we that more parting trouble back from it equipment we and to family opportunity when acquire we're those space if stay if believe there's that we lease have. are better flight

is beginning we value trying the pay of value And it. One into it. across bids, the based makes explain difference money disciplines. lose asset it. that We to monetize little. from And and because us we by been more a of insight for do fully the business to bids and on what integrated. many a that can a good capability by that we lot best to flight whichever we maximum at today, that When way losing equipment from for will amount is we've lose that here multi-dimensional think of than look be we've not future we margin. here that that an big things I've bids very a got got that extraction And net Gautam, we we're to investors is us gives out our of the the of find projected can

don't us So beat we're disciplined. them. on staying who people going that's money know make to are why deals how with I

to going Capital with Markets. Herbert next, And go we're RBC Ken to

from and step-up quarter. nice the a sequentially enjoy third typically in EBITDA terms fourth revenues of the You to

could the as to about on? how typical terms you of run we quarter, the get or anything any had you're comfortable looks us guidepost should if Nick, we seasonal rate at seasonal you thinking fourth maybe that EBITDA fourth benefit all least just at up? provide how just it's you quarter there. as typically And now You've help sort of maybe, think about benefit comment the can or wondering else be I'm shaping in

than associated Generally, part period. the at fourth benefit know have in feel a just the that of it there's that you I start on or like of we It where year the end worse really look it is purchased what history the I quarter quarter other back really seasonality feel is way think company, any quarter with the to like depends the fourth looking any the respect the that may going several with if in don't But quarter. all up. better over you doesn't you'll we feedstock in first quarter, the preceded the see get time it. market improvement now, to quarter. by do into just historical an to in year some quarter. that right and realizing play fourth patterns. purchasing But the the is the to in so not years of X.X third fourth consistency flux That and any any may much we're seeing

don't give like really fourth I quarter? to feel guidance I fourth an had the on to So, like going is can assume where say, you quarter year in that uptick good last the quarter fourth the I look we of

mean, a were that I quarter. quarter PXF last overall the fourth Yes. in as sale that of year had of Ken, reminder, XXXX

when sales fourth fourth some whole quarter, equipment. So, sight do the that line sales. we timing seen that the just will been I Having timing in on the related you've of the it's really of engine good think to of in has quarter, asset increase an that have that, been said but equipment occur flight seasonality

add don't to no the just to pointing we improvement say not to that. quarter. there's seasonality just out fourth that in We're that Well, expect

facility. run rate layer the $XX number of be we to you where sort an today that is programs revenue What business out normalized about think margin MRO with called in start on a good as Maybe of of base the programs? making, incremental three few the business to X or through the as to then should MRO or expect investments the incremental the Miami the revenue in rate? we EBITDA identified, you opportunity from EBITDA sort today, get Nick, like Millington And million run and sort you you're sounded the

want Martin, that? answer to you

Yes.

So mentioned as Millington you the negative was we increase online. for actual other to a be an we right now, online starting so pick much of second customer the up get to projects to the during quarter cost. about come we volume that believe of and that's year, in X overall based anticipate a going went as actually The that the generating run profile get of of kind to revenue projects back contribute the the start Millington. of rate Ken, of end It XXXX X contributor profile we'll XX% base. noted, overall, additional We not doing the in to depending expansion units, $XX really year. but momentum. we those of when will those quarter, margin profitability work by on And kind online into cover enough of XX% expect million the next of incremental through first those be are And XXXX. come about on margins $XX kind end pretty and will at quarter into kind million what facilities. Unfortunately,

sort growth possible of Okay. And on Very helpful. any in this of kind it you've business, is the today and sort year? business what the that commentary of run that to rate give across of the base seen MRO

have MROs again, units, but new well right we on our $XX we're both and capacity in I those $X that's think to, to expect now, shop. an around million and additional the as accessories on-airport our also because existing, we EBITDA not million improve contribution of overall additions, component only probably running as that

fill as will labor units, improve those absorption and So have both to also those accessories that won the that through, our and that we continue and profile utilization. advantage in costs kind better of new with shops fixed contracts volume additional gear landing of we margin take flow our we of

XXXX. increase significantly number that we expect to So through

we're Sam to Truist go Securities. And to next, Struhsaker going with

new I build-outs. on am Ciarmoli. kind and Michael line I guess question for building on of the of those MRO

have, guys of that sort mentioned that are How Millington time you are Or projects a start. to little new you thinking once volume expecting to about online? facilities the work guys was you're come You other business right are dive with on guess, how into those do they I contracted operational? line low the thinking, you of kind once in

is operational. Millington The

incremental The sorry. ones,

until actively and start MRO where get we facility on-airport that expect are we'll point X customers to up we do for filling base. we their only work, the it's soliciting Well, to that

is do So there. that customer. fill a lot We But to location. up. a it's regional existing customer It's a it got we've in new an not have

in It's had that like typical and XXXs. is it's has because there customer We have one some them. mid-country airline than kind landing of large We facilities a familiar just location. a or are. It's them one for good Goodyear with that out gear This west were work doing Roswell our rather base. getting our

lot of shows to than to customers an would any that expect good the MROs. on-airport an look, our introducing just as a better about facility, of Candidly, we've you on as looks MRO other it It facility. MRO. spent So on-airport money that

So and we train the have time, we're and mechanics ramping and naturally to do you like ramp-up we but have the you them, tooling experienced introducing expenses we have having just paying, coming is the over to we're any started, because other did customers just up bring bring getting in, them facility revenue. facilities to at just before that have in,

space a got the in is would we square a XX,XXX over little facility year out one whistles ramp-up than is of reason MROs, our an that all our feet. aero-structure approximately feet. about for thing been the want more have already we paying have our we about square can the loss. With for shop square XX,XXX that's current get and It's regard component bells the good And to we facility. So but One, for XX,XXX we're business constrained. the we've is The The upfront current shop. that less, aero-structure opportunity it's feet.

work approved in have some We facility. work that give of physically that they've facility that commercial facility. that And and operators love have us to that they're space very do already our us facility. in it going old We're indicated large shown in to out to

if it they even So give us, they the to work wanted want which done don't, to to they the facility. in new see

customers happen So of are the our in ramp shop we we today up facility to we due quickly what and have our do facility. on limited work feel for to aero-structure being able waiting in size the we existing because it can will

is to able of And about additional adding instead and we're pneumatics do their customer pneumatics, our we older being current everything, is the the have capability equipment, do our limited pneumatics equipment generation, nice same to Regarding new other there. to the Unlike airplane we equipment our acquired state-of-the-art which hydraulics thing that's the out mid their latest and accessories, for able Bauer. more It's from existing capability, pneumatics. have. most technology base we've capability covers just hydraulics test just

appreciate demand could Got it and in I sneak I That's makes If of just helpful color. sense it, trends one it. in Understood. terms the there. other. good very

little within takes the you Could of bit guys kind puts it supply detail sounds and like of, USM a USM and supply there? You availability just that are you and of better. exactly trending is on what seeing any kind mentioned give feedstock guys more

won't last time I'm correctly probably only at year on can't was a the a we end million of by today great win rate It unlikely. X because a not year-end that something? because we're stated mean amount of this in as USM either year. in over limited we're as I positive is understand the Last $XXX correctly. is market mean that you of with not little It end availability what doesn't it sure didn't very $XXX a of we but note, or did year. very we it the very left doesn't on feedstock competitive months year. the bidding than hitting feedstock less purchase year, there's million mean

over Yes, million. $XXX

$XX-something over a million million we're did We $XXX already. and at

year-end. a that get of we'll feedstock on this So, by at we'll In closed time likelihood, amount the lesser have feedstock we we time. to have lesser available all have

So some work next year. feedstock to that point through its becomes system with that we'll and lesser has in sell the obviously way time, the feedstock, at

to going And lot work selling to got up that So a write-offs. going got it and make do not to lose money selling stay we're disciplined market. any competitive if in a to money we've much, to we make of pay too we've to take going because we're

be period that we long feedstock. in market? balancing how to historically. no be, going a of more aggressive the buying Are So going we going to between for The are us, than it's one act we've is of things over just answer Because learned no. to How we've chase the aggressive are aggressive get you're we And of the been too you pay, things, loss. if that time puts is you likelihood think lot the business. more going and what you should to take aggressive you're a with on you're a you stuck to become pay going going stuff, could a if that it than of is to out own that's companies

tomorrow the today, not tomorrow, the is overpaying make today conservative death we're more and a to because of little doing just rather I'd and company that. So margin be fight lesser live

it's feedstock catch feedstock And will in approves one and of and the has the not happen push which AerSale the that as we're the here integrated flight airplanes my to see to release or equipment, do stay buying after by new over at So problem is perfect older extraction, We MAX up is on we've is But XXX the multidimensional which the we'll can in time, thing lot position business time what's overall resolved change waiting we on this AXXX of aircraft, and the just we subject, for older equipment got doesn't the not it out opinion, a production here going be the coming. buying value FAA monetize that anybody continue flight the the affects we their of piece acquisition. option, going out discipline, what's if at matter OEMs properly required, engine disciplined, replicated. fully move off the that of can the forward. On the and amount business. happens, today, to XXX It's to rather of and factory think capitalize only waiting do. of When it maintenance the to less the an deliver or used than airplanes. when to more sit a OEMs it's that come airlines isn't

struggling So amount it limited feedstock with yes, through acquisitions. of today we're

disciplined. staying are We

this to the company be we're catch perfect when OEMs up, bow out wave in stuff coming the and will is when of We business monetize it.

was And get that very starting position, that P&L. wait that investments the for it's see that's why deployed a just are last over year some to recover, million taken good the of we to inventory add, and serviceable. as Nick to in through marketable, inventory the work having of to noted, And and benefits $XXX we market we're required material as

that strategic very, disciplined very able deploy So and were again, to approach following we very last year.

So we definitely the for of next months have able USM at and business. a XX line our to sight, support least good

over for Thank additional Finazzo remarks. Nick or you. it like back to any And turn I'd closing to

our for call Many Thank everyone, you. to thanks, today. listening

lot to year to look the have a ahead. forward in We

investment infrastructure heavy will results, Our beginning is in inventory to that and and accelerate yield time. we over believe

a our to business ample Our trajectory. is everyone. growth have strong, Have good continue and evening, we liquidity

you Thank that conference. does today's your you. And for thank We conclude participation.

disconnect. may now You