FTAI Aviation Ltd. Files 2023 Annual Report on Form 10-K

TL;DR

<b>FTAI Aviation Ltd. has filed its 2023 10-K report detailing its financial performance and business operations.</b>

AI Summary

FTAI Aviation Ltd. (FTAIN) filed a Annual Report (10-K) with the SEC on February 26, 2024. FTAI Aviation Ltd. reported its 2023 fiscal year results on February 26, 2024. The company's primary business is in services, specifically miscellaneous equipment rental & leasing. The filing covers the fiscal year ending December 31, 2023. FTAI Aviation Ltd. was formerly known as Fortress Transportation & Infrastructure Investors LLC. The company's headquarters are located at 1345 Avenue of the Americas, New York, NY.

Why It Matters

For investors and stakeholders tracking FTAI Aviation Ltd., this filing contains several important signals. This 10-K filing provides a comprehensive overview of FTAI Aviation's financial health, operational performance, and strategic direction for the fiscal year 2023, crucial for investors assessing the company's value and future prospects. Understanding the company's historical performance, including revenue streams and any significant changes from prior years, is vital for making informed investment decisions regarding FTAI Aviation Ltd.

Risk Assessment

Risk Level: medium — FTAI Aviation Ltd. shows moderate risk based on this filing. The filing is a standard 10-K, which provides a broad overview of the company's financial and operational status. Specific risks and detailed financial performance metrics would require deeper analysis of the document's content beyond the header information.

Analyst Insight

Investors should review the full 10-K filing to understand FTAI Aviation Ltd.'s financial performance, operational segments, and any disclosed risks for the fiscal year ended December 31, 2023.

Key Numbers

• 2023-12-31 — Fiscal Year End (Conformed period of report)
• 2024-02-26 — Filing Date (Filed as of date)
• 7350 — SIC Code (Standard Industrial Classification)

Key Players & Entities

• FTAI Aviation Ltd. (company) — Filer name
• Fortress Transportation & Infrastructure Investors LLC (company) — Former company name
• New York (location) — Business address city
• 212-798-6100 (phone) — Business phone number

FAQ

Industry Context

FTAI Aviation Ltd. operates within the services sector, specifically in miscellaneous equipment rental and leasing.

Regulatory Implications

The filing is a Form 10-K, a mandatory annual report required by the U.S. Securities and Exchange Commission (SEC) for public companies.

What Investors Should Do

1. Review the full 10-K filing for detailed financial statements and management discussion.
2. Analyze the company's revenue segments and growth trends for the fiscal year 2023.
3. Identify any significant risk factors or forward-looking statements disclosed in the report.

Key Dates

• 2023-12-31: Fiscal Year End — The end date for the reporting period covered by the 10-K.
• 2024-02-26: Filing Date — The date the 10-K report was officially filed with the SEC.

Year-Over-Year Comparison

This is the initial analysis of the 2023 10-K filing. Comparative data from the previous filing (2022) would be available within the document itself.

Key Financial Figures

• $0.01 — on which registered: Ordinary shares, $0.01 par value per share FTAI The Nasdaq Glo
• $3.0 billion — 3, we had total co nsolidated assets of $3.0 billion and total equity of $175.9 million. As
• $175.9 million — ets of $3.0 billion and total equity of $175.9 million. As of December 31, 2023, our operatio

Filing Documents

• ftai-20231231.htm (10-K) — 2717KB
• ftaiaviation12312023ex415.htm (EX-4.15) — 238KB
• ftaiaviation12312023ex211.htm (EX-21.1) — 26KB
• ftaiaviation12312023ex231.htm (EX-23.1) — 2KB
• ftaiaviation12312023ex311.htm (EX-31.1) — 9KB
• ftaiaviation12312023ex312.htm (EX-31.2) — 9KB
• ftaiaviation12312023ex321.htm (EX-32.1) — 5KB
• ftaiaviation12312023ex322.htm (EX-32.2) — 5KB
• ftaiaviation12312023ex971.htm (EX-97.1) — 35KB
• ftai-20231231_g1.jpg (GRAPHIC) — 30KB
• ftai-20231231_g2.jpg (GRAPHIC) — 127KB
• 0001590364-24-000003.txt (&nbsp;) — 13935KB
• ftai-20231231.xsd (EX-101.SCH) — 83KB
• ftai-20231231_cal.xml (EX-101.CAL) — 140KB
• ftai-20231231_def.xml (EX-101.DEF) — 508KB
• ftai-20231231_lab.xml (EX-101.LAB) — 958KB
• ftai-20231231_pre.xml (EX-101.PRE) — 714KB
• ftai-20231231_htm.xml (XML) — 2313KB

Forward-Looking Statements

Forward-Looking Statements 5 Item 1.

Business

Business 6 Item 1A.

Risk Factors

Risk Factors 11 Item 1B. Unresolved Staff Comments 27 Item 1C. Cybersecurity 28 Item 2.

Properties

Properties 28 Item 3.

Legal Proceedings

Legal Proceedings 28 Item 4. Mine Safety Disclosures 28 PART II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 29 Item 6. [Reserved] 31 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 31 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 49 Item 8. Consolidated Financial Statements of FTAI Aviation Ltd.: 50 Report of Independent Registered Public Accounting Firm 51 Consolidated Balance Sheets as of December 31, 2023 and 2022 53 Consolidated Statements of Operations for the years ended December 31, 2023, 2022 and 2021 54 Consolidated Statements of Comprehensive Income (Loss) for the years ended December 31, 2023, 2022 and 2021 55 Consolidated Statement of Changes in Equity for the years ended December 31, 2023, 2022 and 2021 56 Consolidated Statements of Cash Flows for the years ended December 31, 2023, 2022 and 2021 57

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 59 Note 1: Organization 59 Note 2: Summary of Significant Accounting Policies 59 Note 3: Discontinued Operations 64 Note 4: Acquisition of QuickTurn 67 Note 5: Leasing Equipment, net 69 Note 6: Investments 69 Note 7: Intangible Assets and Liabilities, net 71 Note 8: Debt, net 72 Note 9: Fair Value Measurements 73 Note 10: Equity-Based Compensation 80 Note 11: Income Taxes 76 Note 12: Management Agreement and Affiliate Transactions 78 Note 1 3 : Segment Information 80 Note 1 4 : Earnings per Share and Equity 87 Note 1 5 : Commitments and Contingencies 88 Note 1 6 : Subsequent Events 88 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 89 Item 9A.

Controls and Procedures

Controls and Procedures 89 Item 9B. Other Information 90 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 91 PART III Item 10. Directors, Executive Officers and Corporate Governance 91 Item 11.

Executive Compensation

Executive Compensation 91 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 91 Item 13. Certain Relationships and Related Transactions, and Director Independence 91 3 Item 14. Principal Accountant Fees and Services 91 PART IV Item 15. Exhibits 91 Item 16. Form 10-K Summary 93

FORWARD-LOOKING STATEMENTS AND RISK FACTORS SUMMARY

FORWARD-LOOKING STATEMENTS AND RISK FACTORS SUMMARY This report contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not statements of historical fact but instead are based on our present beliefs and assumptions and on information currently available to us. You can identify these forward-looking statements by the use of forward-looking words such as "outlook," "believes," "expects," "potential," "continues," "may," "will," "should," "could," "seeks," "approximately," "predicts," "intends," "plans," "estimates," "anticipates," "target," "projects," "contemplates" or the negative version of those words or other comparable words. Any forward-looking statements contained in this report are based upon our historical performance and on our current plans, estimates and expectations in light of information currently available to us. The inclusion of this forward-looking information should not be regarded as a representation by us, that the future plans, estimates or expectations contemplated by us will be achieved. Such forward-looking statements are subject to various risks and uncertainties and assumptions relating to our operations, financial results, financial condition, business, prospects, growth strategy and liquidity. Accordingly, there are or will be important factors that could cause our actual results to differ materially from those indicated in these statements. The following is a summary of the principal risk factors that make investing in our securities risky and may materially adversely affect our business, financial condition, results of operations and cash flows. This summary should be read in conjunction with the more complete discussion of the risk factors we face, which are set forth in Item 1A. "Risk Factors" of this report. We believe that these factors include, but are not limited to: changes in economic conditions generally and specifically in our industry

Business

Item 1. Business Our Company FTAI Aviation Ltd., a Cayman Islands exempted company, was formed on December 8, 2017 and is the surviving parent company upon completion of the transactions completed in that certain Agreement and Plan of Merger (the "Merger") on November 10, 2022 between Fortress Transportation and Infrastructure Investors LLC and FTAI Aviation Ltd. and certain other parties thereto. Except as otherwise specified, "we", "us", "our", "FTAI", "FTAI Aviation" or "the Company" refer to us and our consolidated subsidiaries. Our business has been, and will continue to be, conducted through FTAI Aviation Holdco Ltd. ("Holdco") for the purpose of acquiring, managing and disposing of transportation and transportation-related equipment assets. We are externally managed by FIG LLC (the "Manager"), an affiliate of Fortress Investment Group LLC, which has a dedicated team of experienced professionals focused on the acquisition of transportation and infrastructure assets since 2002. On May 22, 2023, Fortress and Mubadala Investment Company, through its wholly owned asset management subsidiary Mubadala Capital ("Mubadala"), announced that they have entered into definitive agreements pursuant to which, among other things, certain members of Fortress management and affiliates of Mubadala will acquire 100% of the equity of Fortress that is currently indirectly held by SoftBank Group Corp. ("SoftBank"). After the closing of the transaction, Fortress will continue to operate as an independent investment manager under the Fortress brand, with autonomy over investment processes and decision making, personnel and operations. We own and acquire high quality aviation equipment that is essential for the transportation of goods and people globally. Additionally, we own and lease offshore energy equipment. We target assets that, on a combined basis, generate strong cash flows with potential for earnings growth. We believe that there are a large number of acquisition opportuni

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View this 10-K filing on SEC EDGAR