Reportable Segments

9 Months Ended

Sep. 30, 2024

Segment Reporting [Abstract]

Reportable Segments

Reportable Segments

The Company has two reportable segments: (i) Leasing and Related Operations, which involves acquiring and leasing, primarily pursuant to operating leases, commercial aircraft, aircraft engines, and other aircraft equipment, the selective purchase and resale of commercial aircraft engines and other aircraft equipment, and service and maintenance related businesses and (ii) Spare Parts Sales, which involves the purchase and resale of after-market engine parts, whole engines, engine modules, and portable aircraft components.

The Company’s Chief Operating Decision Maker (“CODM”) is Austin Willis, Chief Executive Officer. The CODM evaluates the performance and allocation of resources to each of the segments based on income or loss from operations. While the Company believes there are synergies between the two business segments, the segments are managed separately because each requires different business strategies.

The following tables present a summary of the reportable segments (in thousands):

Three months ended September 30, 2024	Leasing and  Related Operations		Spare Parts Sales		Eliminations		Total
Revenue:
Lease rent revenue	$	64,905	$	—	$	—	$	64,905
Maintenance reserve revenue	49,760		—		—		49,760
Spare parts and equipment sales	1,227		9,636		—		10,863
Interest revenue	3,412		—		—		3,412
Gain on sale of leased equipment	9,519		—		—		9,519
Maintenance services revenue	5,948		—		—		5,948
Other revenue	1,694		208		(86)		1,816
Total revenue	136,465		9,844		(86)		146,223
Expenses:
Depreciation and amortization expense	23,632		18		—		23,650
Cost of spare parts and equipment sales	157		8,704		—		8,861
Cost of maintenance services	6,402		—		—		6,402
Write-down of equipment	605		—		—		605
General and administrative	38,859		1,178		—		40,037
Technical expense	5,151		—		—		5,151
Net finance costs:
Interest expense	27,813		—		—		27,813
Total finance costs	27,813		—		—		27,813
Total expenses	102,619		9,900		—		112,519
Income (loss) from operations	$	33,846	$	(56)	$	(86)	$	33,704

Three months ended September 30, 2023	Leasing and  Related Operations		Spare Parts Sales		Eliminations		Total
Revenue:
Lease rent revenue	$	53,573	$	—	$	—	$	53,573
Maintenance reserve revenue	37,696		—		—		37,696
Spare parts and equipment sales	111		3,248		—		3,359
Interest revenue	2,106		—		—		2,106
Gain on sale of leased equipment	773		—		—		773
Maintenance services revenue	6,199		—		—		6,199
Other revenue	1,975		119		(55)		2,039
Total revenue	102,433		3,367		(55)		105,745
Expenses:
Depreciation and amortization expense	23,069		19		—		23,088
Cost of spare parts and equipment sales	3		2,021		—		2,024
Cost of maintenance services	5,580		—		—		5,580
Write-down of equipment	719		—		—		719
General and administrative	25,669		876		—		26,545
Technical expense	8,739		—		—		8,739
Net finance costs:
Interest expense	19,052		—		—		19,052
Total finance costs	19,052		—		—		19,052
Total expenses	82,831		2,916		—		85,747
Income from operations	$	19,602	$	451	$	(55)	$	19,998

Nine months ended September 30, 2024	Leasing and  Related Operations		Spare Parts Sales		Eliminations		Total
Revenue:
Lease rent revenue	$	173,652	$	—	$	—	$	173,652
Maintenance reserve revenue	156,527		—		—		156,527
Spare parts and equipment sales	1,520		18,817		—		20,337
Interest revenue	7,965		—		—		7,965
Gain on sale of leased equipment	33,148		—		—		33,148
Maintenance services revenue	17,956		—		—		17,956
Other revenue	6,436		588		(183)		6,841
Total revenue	397,204		19,405		(183)		416,426
Expenses:
Depreciation and amortization expense	68,248		55		—		68,303
Cost of spare parts and equipment sales	188		16,815		—		17,003
Cost of maintenance services	17,647		—		—		17,647
Write-down of equipment	866		—		—		866
General and administrative	101,079		3,226		—		104,305
Technical expense	17,924		—		—		17,924
Net finance costs:
Interest expense	75,378		—		—		75,378
Total finance costs	75,378		—		—		75,378
Total expenses	281,330		20,096		—		301,426
Income (loss) from operations	$	115,874	$	(691)	$	(183)	$	115,000

Nine months ended September 30, 2023	Leasing and  Related Operations		Spare Parts Sales		Eliminations		Total
Revenue:
Lease rent revenue	$	161,209	$	—	$	—	$	161,209
Maintenance reserve revenue	96,609		—		—		96,609
Spare parts and equipment sales	420		12,541		—		12,961
Interest revenue	6,409		—		—		6,409
Gain on sale of leased equipment	5,101		—		—		5,101
Maintenance services revenue	16,707		—		—		16,707
Other revenue	4,992		446		(159)		5,279
Total revenue	291,447		12,987		(159)		304,275
Expenses:
Depreciation and amortization expense	68,058		73		—		68,131
Cost of spare parts and equipment sales	53		9,528		—		9,581
Cost of maintenance services	14,351		—		—		14,351
Write-down of equipment	2,390		—		—		2,390
General and administrative	83,165		2,938		—		86,103
Technical expense	19,755		—		—		19,755
Net finance costs:
Interest expense	56,526		—		—		56,526
Total finance costs	56,526		—		—		56,526
Total expenses	244,298		12,539		—		256,837
Income from operations	$	47,149	$	448	$	(159)	$	47,438

	Leasing and  Related Operations		Spare Parts Sales		Eliminations		Total
Total assets as of September 30, 2024	$	2,961,080	$	82,513	$	—	$	3,043,593
Total assets as of December 31, 2023	$	2,602,907	$	49,437	$	—	$	2,652,344