AerSale Corp (ASLE) 2024 Q3 法說會逐字稿

Good day, everyone and welcome to today's AerSale Incorporated third-quarter, 2024 earnings conference. (Operator Instructions) Today's call is being recorded. I will be standing by if you should need any assistance. It is now my pleasure to turn the conference over to Ms. Christine Padron, Vice President of Compliance. Please go ahead.

大家好，歡迎參加今天舉行的 AerSale Incorporated 2024 年第三季財報會議。（操作員說明）今天的通話正在錄音。如果您需要任何幫助，我將隨時待命。現在我很高興將會議交給合規副總裁 Christine Padron 女士。請繼續。

Good afternoon. I would like to welcome everyone to AerSale third-quarter, 2024 earnings call, conducting the call today are Nick Finazzo, Chief Executive Officer; and Martin Garmendia Chief Financial Officer.

午安.我歡迎大家參加 AerSale 2024 年第三季財報電話會議，今天主持電話會議的是執行長 Nick Finazzo；和馬丁·加門迪亞 (Martin Garmendia) 財務長。

Before we discuss this quarter's results, we want to remind you that all statements made on this call that do not relate to matters of historical fact should be considered forward-looking statements within the meaning of the federal securities laws including statements regarding our current expectations for the business and our financial performance.

在我們討論本季度的業績之前，我們想提醒您，本次電話會議中所做的所有與歷史事實無關的聲明均應被視為聯邦證券法含義內的前瞻性聲明，包括有關我們當前預期的聲明業務和我們的財務表現。

These statements are neither promises nor guarantees but involve known and unknown risks uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, important factors that could cause our actual results to differ materially from forward-looking statements are discussed in the risk factor section on form 10-K for the year ended December 31, 2023 filed with the Securities and Exchange Commission, SEC, on March 8, 2024, and is other filing with the SEC.

這些陳述既不是承諾也不是保證，而是涉及已知和未知的風險、不確定性以及其他可能導致我們的實際結果、業績或成就與任何未來結果有重大差異的重要因素，可能導致我們的實際結果與未來結果有重大差異的重要因素前瞻性陳述在2024 年3 月8 日向美國證券交易委員會(SEC) 提交的截至2023 年12 月31 日止年度的10-K 表格的風險因素部分中進行了討論，並且是向SEC 提交的其他文件。

These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those indicated by the forward-looking statements on this call. We will also refer to non-GAAP measures that we view as important to assessing the performance of our business.

這些文件確定並解決了其他重要的風險和不確定性，這些風險和不確定性可能導致實際事件和結果與本次電話會議中的前瞻性聲明所顯示的內容有重大差異。我們也將參考我們認為對評估我們業務績效很重要的非公認會計準則衡量標準。

A reconciliation of those non-GAAP metrics to the nearest GAAP metric can be found in the earnings presentation materials made available in the investors section of the AerSale website at ir.aersale.com.

這些非 GAAP 指標與最接近的 GAAP 指標的調整可以在 AerSale 網站 ir.aersale.com 投資者部分提供的收益簡報資料中找到。

With that, I will turn the call over to Nick Finazzo.

這樣，我會將電話轉給尼克·菲納佐。

Thank you, Christine. Good afternoon and thank you for joining our call. I would like to begin today with a summary of the quarter and a review of our strategic objectives before turning the call over to Martin for a closer look at the numbers. Underlying business trends continue to improve in our core business, and we remain focused on the factors we can control. This included the following drivers and key takeaways from the quarter.

謝謝你，克里斯汀。下午好，感謝您加入我們的通話。今天，我想先對本季進行總結並回顧我們的戰略目標，然後再將電話轉給馬丁以仔細查看這些數字。我們核心業務的基本業務趨勢持續改善，我們仍然專注於我們可以控制的因素。其中包括本季的以下驅動因素和關鍵要點。

We expanded our lease pool which drove a meaningful uptick in our leasing revenue which will recur through the balance of the lease terms. This is consistent with the strategic priorities we discussed last quarter.

我們擴大了租賃池，這推動了我們的租賃收入的大幅成長，這將在租賃期限的剩餘時間內持續出現。這與我們上季討論的策略重點是一致的。

Second, as a result of increased feedstock availability, our USM business performed well and we have sufficient stock remaining throughout the next 12 months as we navigate a challenging used aircraft backdrop.

其次，由於原料供應量增加，我們的 USM 業務表現良好，並且在未來 12 個月內我們擁有足夠的庫存，以應對充滿挑戰的二手飛機背景。

Third, our MRO business continued to improve in the quarter and was the primary driver of an 18% growth year over year in this segment. And lastly, we remain on track with our MRO expansion projects, which will drive increased revenue incrementally each quarter in 2025 and improve margins as the investment period concludes.

第三，我們的 MRO 業務在本季持續改善，是該細分市場年增 18% 的主要推動力。最後，我們的 MRO 擴張項目仍按計劃進行，這將推動 2025 年每季的收入逐步增加，並在投資期結束時提高利潤率。

Turning to our consolidated results. Third quarter revenue of $82.7 million trailed the prior year of $92.5 million as a result of lower flight equipment sales in the quarter, primarily related to the sale of a 757 freighter that occurred in 2023. Excluding flight equipment sales that tend to be volatile.

轉向我們的綜合業績。第三季營收為 8,270 萬美元，低於去年同期的 9,250 萬美元，原因是該季度飛行設備銷售額下降，主要與 2023 年出售一架 757 貨機有關。不包括往往波動較大的飛行設備銷售。

The underlying trends were positive year over year across our business and revenue increased 26%. Improved underlying performance resulted from stronger USM sales as volume from feedstock acquisitions worked its way through the system. Additional assets in our lease pool compared to the prior year and continued strength and demand for MRO services.

我們業務的基本趨勢逐年呈現正面趨勢，營收成長了 26%。隨著原料採購量在系統中發揮作用，USM 銷售走強，從而改善了基本績效。與前一年相比，我們的租賃池中的資產有所增加，並且對 MRO 服務的持續強勁和需求。

Flight equipment sales in the third quarter of 2024, were $22.6 million compared to $44.8 million in the prior year. As we remind investors every quarter, due to the nature of our business and the impact of flight equipment sales, our top line revenue levels can vary significantly quarter to quarter and we believe our business is best assessed based on aggregate performance over a longer period of time with a focus on feedstock levels and the value our team is able to extract from those investments.

2024 年第三季的飛行設備銷售額為 2,260 萬美元，而前一年為 4,480 萬美元。正如我們每季提醒投資者的那樣，由於我們業務的性質和飛行設備銷售的影響，我們的營收水準可能每季都有很大差異，我們相信最好根據較長時期內的整體業績來評估我們的業務。

Third quarter adjusted EBITDA improved to $8.2 million compared with $1.9 million in 2023. Higher EBITDA in the period resulted from stronger gross margin and lower operating expense. Next, I would like to provide an update on the strategic priorities that we laid out last quarter beginning with our MRO facility expansion projects. In our Miami component facility, which will add pneumatic capabilities to our MRO footprint and expand our addressable market.

第三季調整後 EBITDA 增至 820 萬美元，而 2023 年為 190 萬美元。期內較高的 EBITDA 源自於較高的毛利率和較低的營運費用。接下來，我想介紹一下我們上季度從 MRO 設施擴建項目開始製定的戰略重點的最新情況。在我們的邁阿密零件工廠，這將為我們的 MRO 足跡增加氣動功能並擴大我們的目標市場。

We remain on track to complete this project at the end of the year, we expect it to be operational in the first quarter of 2025. At which point we will begin to generate revenue.

我們仍有望在今年底完成該項目，預計該項目將於 2025 年第一季投入營運。屆時我們將開始產生收入。

Second at our expansion project for the Miami Aerostructures facility where we are tripling our total capacity. We also remain on track to complete this investment by the end of the fourth quarter and be operational by the end of the first quarter of 2025.

其次是邁阿密航空結構工廠的擴建項目，我們的總產能增加了兩倍。我們仍有望在第四季末完成這項投資，並在 2025 年第一季末投入營運。

And finally at our Millington on airport MRO facility, we are operational and have begun to generate revenue during the quarter as we fill capacity, we expect this facility to contribute to our overall EBITDA. But initial volume during the ramp up phase created a $8.9 million drag on EBITDA in the period. With all of these facilities, we expect a sequential step up from initial volumes in 2025 and into 2026 with an ultimate run rate of at least $50 million annually.

最後，我們的米靈頓機場 MRO 設施已投入運營，並在本季度隨著產能的增加而開始產生收入，我們預計該設施將為我們的整體 EBITDA 做出貢獻。但在成長階段的初始銷售量對該期間的 EBITDA 造成了 890 萬美元的拖累。憑藉所有這些設施，我們預計 2025 年和 2026 年的初始產量將連續增加，最終每年運行至少 5,000 萬美元。

Further, as we complete these projects, the associated CapEx and excess operating costs will abate, benefiting the operating run rate in our tech op segment. In total, we have been incurring approximately $1 million in annualized cost for incremental rent as we work to expand these facilities. These amounts are in addition to the $0.9 million EBITDA loss in Millington, which is now operational and will have a more positive impact on our operating results.

此外，當我們完成這些項目時，相關的資本支出和超額營運成本將會減少，從而有利於我們技術營運部門的營運運作率。總的來說，當我們努力擴大這些設施時，我們每年會產生約 100 萬美元的增量租金成本。這些金額不包括米靈頓 90 萬美元的 EBITDA 損失，該公司現已投入運營，將對我們的經營業績產生更積極的影響。

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

正如我上季度指出的那樣，我們正在利用部分原料來擴大我們的專業租賃池，這更符合我們大流行前的營運結構。為此，我們在此期間添加了四個引擎。這導致我們的租賃收入較去年同期有所改善。隨著我們繼續增加發動機，我們將在這些租賃期間幫助平穩我們後續幾季的季度業績。

Regarding our 727 -- our 757 P2F conversion program, the end market showed additional signs of loosening with enhanced customer interest and bidding activity. These opportunities range from sales to leases and while we are still in discussions with multiple customers and the outcome is uncertain, we are encouraged by the enhanced level of activity occurring.

關於我們的 727 和 757 P2F 改裝計劃，隨著客戶興趣和投標活動的增強，終端市場顯示出更多寬鬆跡象。這些機會的範圍從銷售到租賃，雖然我們仍在與多個客戶進行討論且結果不確定，但我們對活動水平的提高感到鼓舞。

Turning to our segments and beginning with asset management. Third quarter sales were $50.4 million compared to $65.1 million in the prior year. Similar to our consolidated results, lower revenue was entirely attributable to flight equipment sales during the period, particularly from the sale of a 757 freighter in the third quarter of 2023.

轉向我們的細分市場，從資產管理開始。第三季銷售額為 5,040 萬美元，去年同期為 6,510 萬美元。與我們的綜合業績類似，收入下降完全歸因於該期間的飛行設備銷售，特別是 2023 年第三季銷售的 757 貨機。

Excluding flight equipment sales segment sales were up 36.9% year over year driven by better feedstock availability from the $139.9 million acquired in 2023 and the addition of four engines to our lease pool. In the quarter, we sold five engines compared to seven engines and a 757 freighter in 2023.

不包括飛行設備銷售部門的銷售額年增 36.9%，原因是 2023 年收購的 1.399 億美元的原料供應有所改善，以及我們的租賃池中增加了四台發動機。本季度，我們售出了 5 台發動機，而 2023 年我們售出了 7 台發動機和一架 757 貨機。

The backdrop for acquiring feedstock remains challenged primarily as a result of OEM production delays that have led airlines to continue operating midlife aircraft, fewer aircraft available and more competition for these aircraft has led to higher asset pricing which has also decreased our overall acquisition rate.

原料採購的背景仍然面臨挑戰，主要是由於 OEM 生產延遲導致航空公司繼續運營中年飛機、可用飛機減少以及這些飛機的競爭加劇導致資產定價上漲，這也降低了我們的整體採購率。

We have continued to bid on select available assets following our discipline guidelines. With more than $253 million in bids submitted in the third quarter of which over $117 million were awarded to somebody with AerSale winning $3.6 million. However, a success rate of just 3.1% of awarded deals put in perspective. This compares to our historical win rate of approximately 10%.

我們繼續按照我們的紀律準則對選定的可用資產進行投標。第三季提交的投標超過 2.53 億美元，其中 AerSale 贏得了 360 萬美元，其中超過 1.17 億美元被授予。然而，中標交易的成功率僅為 3.1%，這也令人樂觀。相較之下，我們歷史上的勝率約為 10%。

Year-to-date, we have acquired $42 million in total feedstock, which is at a level below our annual target of $150 million. But we still retain sufficient inventory levels to support our business for at least the next 12 months. As we envision market conditions, we'll begin to normalize.

今年迄今為止，我們已採購了 4,200 萬美元的原料，低於我們 1.5 億美元的年度目標。但我們仍然保留足夠的庫存水平，至少可以在未來 12 個月內支援我們的業務。當我們設想市場狀況時，我們將開始正常化。

Turning to our tech op segment. Second quarter sales continued to grow amid strong commercial demand segment revenue increased 17.6% to $32.3 million compared to the year ago period. Growth was widespread across most of our facilities including modest initial sales volume from our new Millington on airport MRO.

轉向我們的技術營運部分。由於商業需求強勁，第二季銷售額持續成長，營收較去年同期成長 17.6% 至 3,230 萬美元。我們的大多數設施都實現了普遍增長，其中包括我們在機場 MRO 上新建的米靈頓的初始銷量不大。

We expect growth at Millington to continue as we expand our customer base and also from the additional capacity and new capabilities being added to our component and accessory shops coming online by the end of 2024.

我們預計，隨著我們擴大客戶群，以及到 2024 年底上線的零件和配件商店增加產能和新功能，米靈頓將繼續成長。

Turning to engineered solutions, we had an active quarter of dialogue with multiple prospective customers regarding AerAware, our revolutionary enhanced flight vision system incorporating a dual head wearable display applicable to the 737 for which we hold the only supplemental type certificate for its type issued by the FAA, which we received last December.

談到工程解決方案，我們與多個潛在客戶就AerAware 進行了積極的對話，AerAware 是我們革命性的增強型飛行視覺系統，包含適用於737 的雙頭可穿戴顯示器，我們持有該型號唯一由737 頒發的補充型號證明書。

This AerAware sales activity included demonstration flights for three different operators. Despite the long commercialization phase for this advanced system, we remain optimistic about the prospects for AerAware as we work to win a launch customer, and we'll continue to update investors on incremental developments.

此次 AerAware 銷售活動包括為三個不同營運商進行的演示飛行。儘管這個先進系統的商業化階段很長，但我們對 AerAware 的前景仍然持樂觀態度，因為我們正在努力贏得啟動客戶，並且我們將繼續向投資者通報增量開發的最新情況。

We also continue to pursue sales opportunities for AerSafe. Our proprietary STC developed to provide fuel tank flammability protection applicable to a number of popular narrow and wide body commercial aircraft including the 727, 737, 767, 777 and the A320 family of aircraft.

我們也繼續尋求 AerSafe 的銷售機會。我們開發的專有 STC 旨在提供油箱易燃性保護，適用於多種流行的窄體和寬體商用飛機，包括 727、737、767、777 和 A320 系列飛機。

As we approach a 2026 regulatory compliance deadline requiring aircraft not equipped with AerSafe or another approved system to have fuel tank flammability protection. We anticipate our current order backlog of approximately $11 million to accelerate and double over this time frame.

隨著 2026 年監管合規期限的臨近，要求未配備 AerSafe 或其他經批准系統的飛機配備燃油箱易燃性保護。我們預計目前積壓的訂單約為 1,100 萬美元，在此期間將加速翻倍。

As commented during previous earnings calls, our engineered solutions products have generated sales margins in excess of 50% which we expect will be consistent for future sales. In the third quarter. We sold two AerSafe systems in closing our core business demonstrated strong underlying growth driven by better feedstock and a robust commercial aerospace backdrop.

正如先前的財報電話會議中所評論的那樣，我們的工程解決方案產品的銷售利潤率超過 50%，我們預計未來的銷售利潤率將保持不變。在第三季。我們在結束核心業務時出售了兩套 AerSafe 系統，這表明在更好的原料和強勁的商業航空航天背景的推動下，強勁的潛在增長。

We are working hard to stabilize our base revenue and have added additional lease equipment which will provide recurring quarterly revenue longer term. We are excited to bring the capacity expansion projects online in our TechOps segment and look forward to pursuing the monetization of the 727 P2F conversions that will help drive meaningful cash flow.

我們正在努力穩定我們的基本收入，並增加了額外的租賃設備，這將提供長期的經常性季度收入。我們很高興能夠在我們的 TechOps 部門上線產能擴張項目，並期待實現 727 P2F 轉換的貨幣化，這將有助於推動有意義的現金流。

Finally, we remain confident that our revolutionary enhanced flight vision system AerAware will gain market acceptance and become a significant contributor to our long-term financial performance and ultimate company valuation.

最後，我們仍然相信，我們革命性的增強型飛行視覺系統 AerAware 將獲得市場認可，並成為我們長期財務表現和最終公司估值的重要貢獻者。

I want to thank our dedicated employees for their hard work and our investors for their continued support. We look forward to updating you on our progress. Now I will turn the call over to Martin for a closer look at the numbers. Martin?

我要感謝我們敬業的員工的辛勤工作和投資者的持續支持。我們期待向您通報我們的最新進展。現在我將把電話轉給馬丁，讓他仔細看看這些數字。馬丁？

Thanks Nick. Our third quarter revenue was $82.7 million which included $22.6 million in flight equipment sales consisting of five engines and no aircraft. Revenue in the third quarter of 2023 was $92.5 million and included $44.8 million of flight equipment sales consisting of seven engines and a P2F converted Boeing 757 aircraft.

謝謝尼克。我們第三季的收入為 8,270 萬美元，其中包括 2,260 萬美元的飛行設備銷售，其中包括五台發動機但沒有飛機。2023 年第三季的收入為 9,250 萬美元，其中包括 4,480 萬美元的飛行設備銷售，包括七台發動機和一架 P2F 改裝的波音 757 飛機。

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

正如我們在所有財報電話會議中指出的那樣，飛行設備銷售可能因季度而異，我們相信，根據長期資產購買和銷售來監控我們的進度是衡量我們進展的更合適措施。

Third quarter, gross margin was 28.6% compared to 25.4% in the third quarter of 2023, primarily driven by sales mix that included higher margin engine leasing and flight equipment sales, selling general and administrative expenses were $21.7 million in the third quarter of 2024, which included $1.2 million of noncash equity-based compensation expenses.

第三季的毛利率為28.6%，而2023 年第三季為25.4%，主要受到銷售組合的推動，其中包括利潤率較高的引擎租賃和飛行設備銷售，2024 年第三季的銷售一般和管理費用為2,170 萬美元，其中包括 120 萬美元的非現金股權補償費用。

Selling general and administrative expenses were $25.4 million in the third quarter of 2023 and included $3.2 million of noncash equity-based compensation expenses. The decrease in selling general and administrative expenses were primarily driven by lower payroll, research and development costs and repair and maintenance expenses during the quarter. Third quarter, income from operations was $2 million compared to a loss from operations of $1.9 million in the third quarter of 2023.

2023 年第三季的銷售一般和管理費用為 2,540 萬美元，其中包括 320 萬美元的非現金股權補償費用。銷售一般和管理費用的減少主要是由於本季度工資、研發成本以及維修和保養費用的減少。第三季營運收入為 200 萬美元，而 2023 年第三季營運虧損為 190 萬美元。

Net income was $0.5 million in the third quarter compared to a net loss of $0.1 million in the third quarter of 2023. Adjusted for non-cash equity-based compensation mark to market adjustment to the private warrant liability facility, relocation costs, inventory reserves and secondary issuance costs, adjusted net income was $1.8 million in the third quarter of 2024. Adjusted for the same items the third quarter of 2023 had an adjusted net income of$ 0.9 million.

第三季淨利為 50 萬美元，而 2023 年第三季淨虧損為 10 萬美元。在根據非現金股權補償按市場調整私人認股權證責任融資、搬遷成本、庫存儲備和二次發行成本進行調整後，2024 年第三季調整後淨利為 180 萬美元。在相同項目進行調整後，2023 年第三季調整後淨利為 90 萬美元。

Third quarter, diluted earnings per share was $0.01 compared to diluted earnings per share of zero in the third quarter of 2023, excluding the adjustments mentioned above third quarter adjusted diluted earnings per share was $0.04 compared to adjusted diluted earnings per share of $0.03 for the third quarter of 2023 adjusted EBITA was $8.2 million in the third quarter of 2024. Compared to $1.9 million in the prior year period.

第三季稀釋每股收益為0.01 美元，而2023 年第三季稀釋每股盈餘為零，不包括上述調整。股收益為0.03 美元2023 年第三季調整後的 EBITA 為 820 萬美元，2024 年第三季為 820 萬美元。相比之下，去年同期為 190 萬美元。

The growth in adjusted EBITA was a result of increased leasing revenue and higher margins on flight equipment sales. Next, in terms of our cash flow metrics, year-to-date cash used in operating activities was $26.4 million resulting from a gross investment of over $62.6 million in newly acquired feedstock and make ready costs to prepare inventory for sale which should drive our revenue and earnings going forward.

調整後息稅折舊攤銷前利潤的成長是由於租賃收入的增加和飛行設備銷售利潤率的提高。接下來，就我們的現金流量指標而言，年初至今用於經營活動的現金為2,640 萬美元，這是由於新採購的原料總投資超過6,260 萬美元，以及準備待售庫存的準備成本，這將推動我們的收入以及未來的收益。

This is an improvement for the quarter of $10.4 million in cash generated from operations as we begin to monetize previously purchased feedstock. We ended the quarter with a substantial balance sheet with $103.5 million of liquidity consisting of $9.8 million in cash and available capacity of $93.7 million on our $180 million revolving credit facility, which can be expanded to $200 million.

隨著我們開始將先前購買的原料貨幣化，本季營運產生的現金為 1,040 萬美元，這一數字有所改善。截至本季末，我們的資產負債表規模龐大，流動資金達 1.035 億美元，其中包括 980 萬美元現金，以及 1.8 億美元循環信貸額度（可擴大至 2 億美元）的可用能力 9,370 萬美元。

As an update to pending insurance claims, as we mentioned during the second quarter earnings call, we suffered a loss due to a fire at one of our least auxiliary inventory facilities located in Roswell, New Mexico. In that facility, we had approximately $67.6 million of inventory valued at market prices, which is fully covered by insurance and for which we have made a $67.6 million claim subject to a $10,000 deductible.

作為未決保險索賠的更新，正如我們在第二季財報電話會議中提到的那樣，由於位於新墨西哥州羅斯威爾的輔助庫存設施之一發生火災，我們蒙受了損失。在該設施中，我們擁有以市場價格計算的約 6,760 萬美元的庫存，這些庫存完全由保險承保，並且我們已針對這些庫存提出了 6,760 萬美元的索賠，但免賠額為 10,000 美元。

In addition, we also have an outstanding claim of $5.5 million against our war risk insurers for a General Electric CF-680C2 engine that has been detained in Russia since the start of Russia's war with Ukraine. Although the exact amount that will be paid to us for these claims totalling over $70 million has yet to be finalized. In both cases, our insurers have indicated they anticipate making payment before your end.

此外，我們還向戰爭險保險公司提出了 550 萬美元的未決索賠，涉及一台通用電氣 CF-680C2 發動機，該發動機自俄羅斯與烏克蘭的戰爭爆發以來一直被扣押在俄羅斯。儘管這些總計超過 7000 萬美元的索賠將支付給我們的特定金額尚未最終確定。在這兩種情況下，我們的保險公司都表示他們預計會在您結束之前付款。

Looking forward, we have an opportunity to drive significant near-term cash flow through the monetization of our 757 P2F aircraft, existing feedstock inventory and increased contributions from our MROs. As we take advantage of available capacity and new capabilities.

展望未來，我們有機會透過 757 P2F 飛機的貨幣化、現有原料庫存以及 MRO 的增加貢獻來推動大量近期現金流。當我們利用可用容量和新功能時。

With that operator, we are ready to take questions.

透過該操作員，我們準備好回答問題。

(Operator Instructions)

（操作員說明）

Goutham Khanna, TD Cowen

古薩姆·卡納，TD·考恩

Hi. Thanks for taking the call. The questions guys

你好。感謝您接聽電話。各位的問題

Good afternoon, Gautham.

下午好，高瑟姆。

Yeah, my first question is on AerAware and how close are you -- do you think with maybe getting a customer to on board and what is the push back or, what is the hesitancy you have seen over the last year, to get them over the line.

是的，我的第一個問題是關於AerAware 的，你們離得有多近了——你認為也許可以讓客戶加入嗎？ ，讓他們克服線。

So Gautham, I have been asked that question multiple times and given my opinion of when I thought things would happen and based on prior experience, I think it is not prudent to give another opinion on when this will happen. I can tell you this much. We have been diligently working with multiple customers to help them figure out what it will take to get this system over the line for them. I

因此，高瑟姆，我多次被問到這個問題，並根據我對事情何時會發生的看法，並且根據之前的經驗，我認為就何時發生這種情況給出另一種意見是不明智的。我只能告訴你這麼多。我們一直在與多個客戶努力合作，幫助他們弄清楚如何讓這個系統上線。我

It is not simple. It would be simpler for a small carrier, but for bigger carriers, it's much more complex, and requires much more planning. So there has not been pushed back yet other than the complexity of dealing with in the case of a large carrier of what it takes to get the system implemented. And just to give you just a little heads up of well, what are those complexities, it is pilot training, simulators, updating, training manuals.

這並不簡單。對於小型業者來說，這會更簡單，但對於大型業者來說，情況要複雜得多，並且需要更多的規劃。因此，除了在大型營運商的情況下處理系統實施所需的複雜性之外，還沒有被推遲。只是為了讓您稍微了解一下，這些複雜性是什麼，它是飛行員訓練、模擬器、更新、訓練手冊。

The logistics of when you can get aircraft to be available to have the system installed in it is future planning for, it needs to be included in the budgetary process, besides the economic analysis that comes with looking at it from the perspective of does it save flights for travel to inclement weather is what is the economic benefit of that.

何時可以讓飛機安裝該系統的後勤工作是未來的規劃，除了從節省成本的角度進行經濟分析之外，還需要將其納入預算流程。

And how do you put a cost on the safety benefit of it. So all of those things go into an airline's decision on whether to take this And in the cases of almost across the board that is taking time, one of the things that I think, well, clearly I did not get right was, and I fully understand was the long commercialization phase of this.

以及如何為其安全效益計算成本。因此，所有這些因素都會影響航空公司是否採取這項措施的決定。的商業化階段。

Since we've gotten this product certified and we have talked to, a number of airlines, the only pushback has been guys, this doesn't happen overnight. This is going to take us time to figure out, how to implement this system. And we are working through that.

自從我們獲得了該產品的認證並與多家航空公司進行了交談以來，唯一的阻力就是夥計們，這不會在一夜之間發生。我們需要時間來弄清楚如何實作這個系統。我們正在努力解決這個問題。

I think in the prior earnings call, I said that the, we expect the commercialization phase from start to finish with a carrier from the day we first talked to them about it would be 18 months. We have actually been talking to our the airline that we started with for more than 18 months by now.

我想在之前的財報電話會議上，我說過，我們預計從我們第一次與運營商討論之日起，從開始到結束與運營商的商業化階段將需要 18 個月。實際上，到目前為止，我們已經與最初合作的航空公司進行了 18 個多月的談判。

And I think we are in advanced phase with them not saying that they are committed to take it, saying that they continue to be interested in taking it. And so, we are working there. So the only pushback we have received from people is they do not have the money for it, so they do not have the money for it, and it does not matter whether they could use the system or not. Or they are operating in an area that they do not have a need for. They do not appreciate the safety aspect of it, and they do not fly into areas that have weather.

我認為我們正處於後期階段，他們並沒有說他們致力於接受它，而是說他們仍然有興趣接受它。所以，我們在那裡工作。因此，我們從人們那裡收到的唯一阻力是他們沒有錢，所以他們沒有錢，他們是否可以使用該系統並不重要。或者他們在他們不需要的領域開展業務。他們不重視它的安全性，也不會飛到有天氣的地區。

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

得到你這很有幫助。然後在幾個季度的原料投標中，你們一直非常有紀律，沒有佔上風，而且比例很高，但也許你能談談你看到誰在追求很多這樣的投標嗎？是引擎原廠設備製造商嗎？還是私募股權，或是 USM 追求的競爭市場是什麼？你要對抗誰？

Yeah. Well, that is a good question because I ask it every day. Why -- how are we losing these deals to who. So it is a combination of everybody typically we would acquire flight equipment from airlines that are, retiring flight equipment and from leasing companies that have taken back flight equipment off lease and they do not have a home for these assets.

是的。嗯，這是一個好問題，因為我每天都會問這個問題。為什麼——我們如何將這些交易輸給了誰？因此，這是每個人的結合，通常我們會從正在退役的飛行設備的航空公司和已收回租賃的飛行設備的租賃公司購買飛行設備，而他們沒有這些資產的所在地。

In today's environment with the A320 engine problems and the 737 max delivery problems, airlines are holding that midlife flight equipment, that's our bread and butter is the midlife flight equipment. They are holding that flight equipment and airlines that would otherwise might turn an airplane back to a less or are buying the aircraft directly from the lessor and they never get to us.

在當今 A320 發動機問題和 737 MAX 交付問題的環境下，航空公司持有中年飛行設備，這就是我們的麵包和黃油。他們持有飛行設備和航空公司，否則可能會將飛機轉為出租人，或直接從出租人那裡購買飛機，但他們永遠不會聯繫我們。

Lessors have gotten very smart, and they realize that the best way to sell an airplane is with a couple of years of lease revenue attached to it. And we have not been successful in winning deals where you are just buying paper because the residual values that somebody can put on an asset assuming two to three years could be dramatically different than what we view the residual value would be.

出租人變得非常聰明，他們意識到出售飛機的最佳方式是附帶幾年的租賃收入。我們還沒有成功地贏得只購買票據的交易，因為假設兩到三年，某人可以賦予資產的剩餘價值可能與我們認為的剩餘價值有很大不同。

So we have to be disciplined because we know what the stuff is going to be worth in the near future. And we are going up against companies that may not know that as well as we do or are more aggressive than we are and we are going to continue to stay, disciplined.

所以我們必須遵守紀律，因為我們知道這些東西在不久的將來會值多少錢。我們面對的對手可能不像我們一樣了解這一點，或者比我們更激進，但我們將繼續保持紀律。

Then we have other leasing companies buying equipment if it comes off lease and is a ready to lease asset, which are very few, by the way from the leasing companies that are parting with them, then we have a whole host of new money that's coming into this space. Whether it be from private equity hedge funds or family offices that believe there is an opportunity to invest in this space and buy used equipment.

然後，我們還有其他租賃公司購買設備，如果它結束租賃並且準備好租賃資產，那麼這種情況很少，順便說一句，來自與他們分手的租賃公司，然後我們就會有大量新資金即將到來進入這個空間。無論是來自私募股權對沖基金還是家族辦公室，都相信有機會投資這個領域併購買二手設備。

Again, if it's equipment on lease and if you're buying paper, I think those companies are better suited to acquire that flood equipment than we are because their return expectations are much lower than ours. If it is off equipment that requires a lot of work, I do not think those companies are not suited at all to or have a very short tail left on the lease.

再說一遍，如果是租賃設備並且您要購買紙張，我認為這些公司比我們更適合購買洪水設備，因為他們的回報預期比我們低得多。如果是需要大量工作的設備，我認為這些公司根本不適合租賃，或者租賃期限很短。

I do not think those companies are well suited at all to monetize those at the end of the lease. Nonetheless, we see those aircraft get bought by, again, hedge funds, family offices, private equity back companies that do not fully understand the value of the flight equipment and may have trouble with it when they ultimately get it back off lease.

我認為這些公司根本不適合在租約結束時將其貨幣化。儘管如此，我們看到這些飛機再次被對沖基金、家族辦公室、私募股權支持的公司購買，這些公司並不完全了解飛行設備的價值，並且當他們最終收回租賃時可能會遇到麻煩。

If they do not have the infrastructure that we have. One of the things that I've been trying to explain to investors from the very beginning here is that we have got a multi-dimensional value extraction business here that is fully integrated. And that makes a big difference because we look at an asset and we find whichever is the best way for us to monetize it. And we have got a lot of capability to do that across many disciplines.

如果他們沒有我們擁有的基礎設施。我從一開始就試圖向投資者解釋的一件事是，我們在這裡擁有完全整合的多維價值提取業務。這會帶來很大的不同，因為我們查看一項資產，然後找到最適合我們將其貨幣化的方式。我們有足夠的能力跨多個學科做到這一點。

And that gives us good insight into what the future value of that flight equipment will be and the maximum amount of money that we can pay for it. When we lose bids today. Gautham, we are losing bids. Not by a little, we lose bids by more than we think we can net out of it. From based on our projected margin. So that's why we are staying disciplined. I do not know how people who beat us on deals are going to make money with them.

這使我們能夠深入了解該飛行設備的未來價值以及我們可以為其支付的最高金額。當我們今天失去投標時。高瑟姆，我們正在失去投標。不是一點點，我們失去的出價比我們想像的要多。根據我們預計的利潤率。這就是我們保持紀律的原因。我不知道那些在交易上擊敗我們的人將如何利用他們賺錢。

Well, that's very helpful context. Thank you, guys.

嗯，這是非常有幫助的背景。謝謝你們，夥計們。

You are welcome.

不客氣。

Ken Herbert, RBC Capital Markets.

肯‧赫伯特，加拿大皇家銀行資本市場。

Yeah. Hi, good afternoon. Nick and Martin.

是的。嗨，下午好。尼克和馬丁。

Hi Ken.

嗨肯。

Hi, good afternoon, Nick and Martin. You typically enjoy sequentially, a nice step up in terms of revenues and EBITDA from the third to the fourth quarter. You typically had seasonal benefit there. I am wondering if you could just help us at all, how the fourth quarter looks now as it is shaping up, and at least, maybe Nick, any guidepost you can provide as we think about that typical seasonal benefit you get or how we should be thinking about the fourth quarter. just maybe in terms of the EBITDA run rate or or anything else you are comfortable to comment on?

嗨，下午好，尼克和馬丁。從第三季到第四季度，您通常會連續享受收入和 EBITDA 的良好進步。您通常在那裡有季節性福利。我想知道您是否可以幫助我們，第四季度現在的情況如何，至少，也許尼克，您可以提供任何指導，因為我們考慮您獲得的典型季節性收益或我們應該如何正在考慮第四季度。也許只是就 EBITDA 運行率或其他您願意評論的內容而言？

I do not think there's any seasonality associated with where the quarter is going to end up. I know it may feel like that, based on a few -- looking at the fourth quarter over a several year period, but I just have not -- if you look all the way back in the history of the company, it does not really feel like the fourth quarter is better or worse than any other quarter.

我認為本季的最終結果不存在任何季節性。我知道根據一些人的說法，可能會有這樣的感覺——看看幾年來的第四季度，但我只是沒有——如果你回顧一下公司的歷史，你會發現它並沒有真正做到這一點。

It really just depends on what if we purchased with respect to feedstock in the year to year and a half that preceded the fourth quarter. Generally, we do see an improvement in purchasing in the first quarter and you will start realizing the benefit of that by the time you get into the third and fourth quarter that may play some part of it.

這實際上只取決於我們是否在第四季之前的一年半內購買了原料。一般來說，我們確實看到第一季的採購有所改善，當你進入第三和第四季時，你就會開始意識到這一點的好處，這可能會發揮一定的作用。

But right now the market is in flux so much that we are just not seeing any consistency to any historical patterns. So I don't really feel like I can give you good guidance on that to say, is the fourth quarter going to look like the, fourth quarter of last year where we had I assume we had an uptick in the fourth quarter.

但目前市場變化如此之大，以至於我們看不到任何歷史模式的一致性。因此，我真的不覺得我可以給你很好的指導，也就是說，第四季是否會像去年第四季那樣，我認為第四季度我們的業績有所上升。

I mean, Ken as a reminder, fourth quarter of last year had the sale of [2757] P2Fs that were in that overall quarter. So that when you have seen an increase in the fourth quarter, it has been related to the timing of flight equipment sales. Having said that we do have good line of sight on some engine hole asset sales that will occur in the fourth quarter. But that seasonality has really been just the timing of that equipment.

我的意思是，Ken 提醒一下，去年第四季整個季度銷售了 [2757] 個 P2F。因此，當您看到第四季度的成長時，這與飛行設備銷售的時機有關。話雖如此，我們確實對第四季度將發生的一些引擎孔資產出售有良好的預期。但這種季節性其實只是該設備的時機。

Okay, thanks Martin. That's helpful.

好的，謝謝馬丁。這很有幫助。

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

好吧，只是補充一點，並不是說我們預計第四季不會有改善。我們只是指出這沒有季節性。

Got it helpful and, and Nick, you called out with the, MRO investments you are making, you expect to get to sounded like an incremental $50 million run rate through the three or the few programs you identified two in Miami and the Middleton facility.

得到它的幫助，尼克，你呼籲你正在進行的 MRO 投資，你希望透過你在邁阿密和米德爾頓工廠確定的三個或幾個項目，聽起來像是增量 5000 萬美元的運行率。

Maybe -- you could just maybe, where is the MRO business today as we think about the revenue run rate, What should be a good normalized EBITDA margin or EBITDA number on that base business as we then start to layer in the incremental revenue opportunity from the programs.

也許 - 你可能只是也許，當我們考慮收​​入運行率時，今天的 MRO 業務在哪裡，當我們開始分層增加增量收入機會時，基礎業務的正常化 EBITDA 利潤率或 EBITDA 數字應該是多少？程式.

Martin, you want to answer that?

馬丁，你想回答這個問題嗎？

Yeah. So right now, as you noted, Ken, we anticipate an increase of about $50 million in run rate when the three expansion projects come online, we mentioned Millington, Millington went online during the, during the actual end of the second quarter overall.

是的。因此，正如您所指出的，肯，我們預計當三個擴建項目上線時，運行率將增加約 5000 萬美元，我們提到米靈頓，米靈頓在整個第二季度末實際上線。

And that's starting to pick-up momentum, unfortunately not enough volume to cover overall cost. It was actually a negative contributor for the quarter. But we expect that to get back into profitability as we get additional customer base, the two other projects are going to come online pretty much by the end of the year.

而且這種勢頭開始增強，不幸的是，產量不足以涵蓋整體成本。這實際上對該季度產生了負面影響。但我們預計，隨著我們獲得更多客戶群，要恢復獲利，另外兩個項目將在今年年底上線。

So really start generating a revenue profile in the first quarter of next year. And that $50 million will be incremental through 2025 and into 2026. And we believe based on the margin profile of those units, those will contribute about 20% to 30% margins depending on what work we'll be doing at those facilities.

因此，真正開始在明年第一季制定收入概況。這 5000 萬美元將在 2025 年和 2026 年之前增加。我們相信，根據這些單位的利潤狀況，這些單位將貢獻約 20% 至 30% 的利潤，具體取決於我們將在這些設施中進行的工作。

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

好的。非常有幫助，基礎 MRO 業務今天的運行率，是否可以對此發表任何評論以及您今年在該業務中看到的增長？

I think right now, we are probably running around an $8 million to $10 million EBITDA contribution in those overall units. And we expect that to again, not only improve because of the new additions, but we also have additional capacity that's existing both on our on airport, MROs as well as our component and accessory shop.

我認為現在，我們在這些整體部門中的 EBITDA 貢獻可能約為 800 萬至 1000 萬美元。我們希望這一點能再次得到改善，不僅因為新增加的設施，而且我們還擁有機場、MRO 以及零件商店現有的額外產能。

So as we continue to fill those units, we also take advantage of the new contracts that we won in both our accessories and landing gear shops and have those that additional volume flow through. That will improve our margin profile with better absorption of fixed cost and labour utilization. So we expect that number to significantly increase through 2025.

因此，當我們繼續填補​​這些單位時，我們還利用我們在配件和起落架商店贏得的新合同，並擁有額外的銷售。這將透過更好地吸收固定成本和勞動力利用率來改善我們的利潤狀況。因此，我們預計到 2025 年這一數字將顯著增加。

Perfect. Thanks, Martin. I appreciate the detail.

完美的。謝謝，馬丁。我很欣賞細節。

Sam Struhsaker, Truist Securities.

Sam Struhsaker，Truist 證券公司。

Hi, good evening, guys. Thanks for taking the questions, I guess building on the MRO line of questioning and those new build outs, you guys mentioned that Millington was a little low on volume to start. How are you guys thinking? Do you have, I guess contracted business you are expecting to dive right into once the other projects come online or how you are thinking about the timeline with new work in those facilities once they are operational.

嗨，晚上好，夥計們。感謝您提出問題，我想在 MRO 問題和那些新的構建的基礎上，你們提到米靈頓的啟動量有點低。你們覺得怎麼樣？我想您是否有合約業務，您希望在其他項目上線後立即投入使用，或者您如何考慮這些設施投入運營後的新工作時間表。

The Millington is operational.

米靈頓號已投入營運。

The incremental ones.

增量的。

Well we are actively soliciting customers to do for their on-airport MRO work and we expect that we will start filling that facility up until we get to the point where it is only two days. So it is not that with have got a lot to fill up. But it is new location, we do have an existing customer in there. It is a regional customer. We have had a large airline in there that had 737s we were doing some landing gear work for them.

我們正在積極徵求客戶進行機場 MRO 工作，我們預計我們將開始填充該設施，直到我們達到只有兩天的時間。所以並不是說有很多東西需要填補。但這是新地點，我們那裡確實有一個現有客戶。這是一個區域客戶。我們那裡有一家大型航空公司，有 737 飛機，我們正在為他們做一些起落架工作。

So this is our typical customer base is just getting them familiar with that location. It is a good one because it's mid country and rather than one out west like our Roswell or Goodyear facilities are. So just introducing the customers to that facility. It is a -- we have spent a lot of money on that facility candidly, it shows better than any of our other on airport MROs.

所以這是我們典型的客戶群，只是讓他們熟悉那個位置。這是一個很好的選擇，因為它位於中部地區，而不是像我們的羅斯威爾或固特異工廠那樣位於西部。因此，只需向客戶介紹該設施即可。坦白說，我們在該設施上花了很多錢，它比我們在機場 MRO 方面的任何其他設施都要好。

It looks about as good as you would expect an MRO to look an on airport MRO so just introducing customers to the facility and ramping up just like we have at the other facilities is coming naturally over time, but we just started and we did have ramp up expenses because we are paying, we are having to bring in mechanics, train them, bring the tooling in, getting them experienced. And you have to do that before you have any revenue.

它看起來和您期望的MRO 看起來一樣好，就像機場MRO 一樣，所以只需向客戶介紹該設施並像我們在其他設施中一樣隨著時間的推移自然而然地進行升級，但我們才剛剛開始，我們確實有了升級因為我們正在支付費用，所以我們必須引進機械師，培訓他們，引進工具，讓他們有經驗。你必須在獲得任何收入之前做到這一點。

So that's the reason for the upfront ramp up loss. With regard to our component MROs, the good thing about our aerostructure shop is we already have the opportunity for more business than we could get out of our current facility.

這就是前期虧損增加的原因。就我們的零件 MRO 而言，我們的航空結構車間的好處是，我們已經有機會獲得比我們現有設施更多的業務機會。

One, we are space constrained. The current facility we have is about 30,000 square feet. The one we have been paying for over a year is 90,000 square feet. It is a little less but approximately 90,000 square feet and it is got all the bells and whistles that we would want in an aerostructure shop. We have shown that facility to some very large commercial operators that love it and have approved us to do work in that facility.

第一，我們的空間有限。我們目前擁有的設施面積約為 30,000 平方英尺。我們一年多支付的費用是 90,000 平方英尺。雖然面積稍小一些，但大約有 90,000 平方英尺，並且配備了我們在航空結構商店中想要的所有花哨功能。我們已向一些非常喜歡該設施的大型商業運營商展示了該設施，並批准我們在該設施中開展工作。

And they have indicated that they are going to give us work in that facility, we are already physically out of space in our old facility. So even if they wanted to give it to us, which they do not, they want to see the work done in the new facility. So we feel being able to ramp up work in our aerostructure shop quickly will happen because we have customers waiting for it and we are limited on what we can do today in our existing facility due to the size of the facility.

他們表示他們將在該設施中為我們提供工作，但我們的舊設施中已經沒有空間了。因此，即使他們想把它交給我們（但他們沒有這樣做），他們也希望看到新設施中的工作完成。因此，我們認為能夠快速增加我們的航空結構車間的工作將會發生，因為我們有客戶在等待，並且由於設施的規模，我們今天在現有設施中可以做的事情受到限制。

Regarding our pneumatics, that's the same existing customer base we have, it is just adding additional capability instead of just being able to do their hydraulics and other accessories we are able to do their pneumatics.

關於我們的氣動系統，這與我們現有的客戶群相同，它只是增加了額外的功能，而不僅僅是能夠做他們的液壓系統和其他配件，我們能夠做他們的氣動系統。

And the nice thing about the pneumatics capability we have acquired state of the art equipment from Bauer. Unlike our hydraulics capability which is limited to more mid and older technology equipment. Our new test equipment for pneumatics covers everything. The latest generation, most current airplane out there.

關於氣動能力的好處是我們從 Bauer 獲得了最先進的設備。與我們的液壓能力不同，我們的液壓能力僅限於中型和較舊的技術設備。我們的新型氣動測試設備涵蓋了一切。最新一代、最新型的飛機。

Got it. Understood. That's ve ry helpful colour. I appreciate it, and it makes good sense in terms of the demand trends there. I could just sneak in one other. You guys mentioned that it sounds like the USM feedstock availability and supply is trending a little bit better. Could you just give any detail on exactly what within USM you guys are seeing more suppliers and put some takes there. Thank you.

知道了。明白了。這是非常有用的顏色。我很欣賞這一點，而且就那裡的需求趨勢而言，這很有意義。我可以偷偷溜進另一個。你們提到，聽起來 USM 原料的可用性和供應趨勢有所改善。您能否詳細說明您在 USM 內看到了更多供應商，並提出了一些看法。謝謝。

I am not sure you either stated that correctly or did not understand it correctly. USM availability today because the win rate of what we are bidding on because we are in a very competitive market with a very limited amount of feedstock is not as great as it was at this time last year.

我不確定你是否正確地表達了這一點，或者沒有正確理解它。USM 今天的可用性是因為我們處於一個競爭非常激烈的市場，原料數量非常有限，所以我們競標的中標率並不像去年這個時候那麼高。

Does not mean that we won't end the year. I mean, there's only a little less than two months left in the year, does not mean we cannot end the year on a very positive note, but hitting $150 million purchase of feedstock by year end is probably unlikely. Last year we did over $130 million something?

並不意味著我們不會結束這一年。我的意思是，今年只剩下不到兩個月的時間，並不意味著我們不能以非常積極的方式結束今年，但到年底達到 1.5 億美元的原料採購量可能不太可能。去年我們做了超過 1.3 億美元的事？

Yes, over $130 million.

是的，超過 1.3 億美元。

We did over $130 million, and we are at $40 something million already closed. Yeah. So we have lesser feedstock available at this time in all likelihood, we will have a lesser amount of feed stock that we have closed on by the time we get to year end.

我們完成了超過 1.3 億美元的投資，目前我們已經結清了約 40 億美元的資金。是的。因此，我們目前可用的原料很可能會減少，到年底時我們關閉的原料數量也會減少。

So with the lesser feedstock, obviously, that's going to -- at some point in time that has to work its way through the system and becomes feedstock that will sell next year. So we have got a lot of work to do to make that up in a competitive market and we have got to stay disciplined because if we pay too much, we are not going to make any money selling it and we are going to lose money selling, going to take write offs.

因此，顯然，對於較少的原料，在某個時間點，它必須通過系統，成為明年出售的原料。因此，我們有很多工作要做，才能在競爭激烈的市場中彌補這一點，我們必須保持紀律，因為如果我們支付太多，我們就不會賺到錢，而且我們會賠錢。

So for us, it is just a balancing act between how aggressive we are going to be in buying feedstock are we going to chase the market. The answer is no. How aggressive are we going to be, no more aggressive than we have been historically because one of the things that we have learned over a long period of time is that if you could become too aggressive on things, if you pay more than you think you should pay.

因此，對我們來說，這只是我們將如何積極地購買原料和我們將追逐市場之間的平衡行為。答案是否定的。我們將變得多麼激進，不會比歷史上更激進，因為我們在很長一段時間內學到的一件事是，如果你在事情上變得過於激進，如果你付出的比你想像的更多應該付錢。

The likelihood is you are going to own that stuff, you are going to get stuck with it, and you are going to take a loss and that's what puts a lot of companies out of the business. So I would rather make lesser margin today, be a little more conservative and live to fight tomorrow because, overpaying today is just the death of the company tomorrow and we are not doing that.

很可能你會擁有這些東西，你會被它困住，你會遭受損失，這就是讓很多公司退出這個行業的原因。因此，我寧願今天賺更少的利潤，更保守一點，為明天而奮鬥，因為今天支付過高的費用只會導致公司明天的死亡，而我們不會這樣做。

So the discipline is in my opinion, is not an option, it is required, and we will continue to stay disciplined, which affects the amount of acquisition. But it doesn't matter, buying feedstock isn't the only thing we do. It is just one piece of the overall business. And if buying feedstock is off at this time it will change over time as we move forward.

因此，在我看來，紀律不是一種選擇，而是必需的，我們將繼續保持紀律，這會影響收購量。但沒關係，購買原料並不是我們唯一做的事。這只是整個業務的一部分。如果此時停止購買原料，隨著我們的前進，情況也會隨著時間而改變。

On that subject, what is going to happen here when the OEMs catch up on production of their new aircraft, the 737 and the 737 max and the A320 engine problem, becomes, it is more or less resolved and the airlines are able to deliver aircraft that can be used by the airline -- by the airlines. I am sorry, the OEMs can deliver airplanes that can be used by the airlines rather than sit waiting for maintenance or waiting to come out of the factory after the FAA approves the release of the airplanes.

在這個問題上，當原始設備製造商趕上其新飛機 737 和 737 max 以及 A320 發動機問題的生產時，將會發生什麼，或多或少已經得到解決，航空公司能夠交付飛機航空公司可以使用它。抱歉，原始設備製造商可以交付可供航空公司使用的飛機，而不是在 FAA 批准發布飛機後等待維護或等待出廠。

When that happens, it is going to push out a lot of older flight equipment and to properly monetize the older flight equipment, the multi-dimensional value extraction, fully integrated business that we have got here at AerSale today, which we do not see anybody has replicated.

當這種情況發生時，它將淘汰大量舊的飛行設備，並將舊的飛行設備適當地貨幣化，即我們今天在 AerSale 獲得的多維價值提取、完全集成的業務，我們沒有看到任何人已複製。

We think we are in perfect position to capitalize on what's coming. So yes, we are struggling through it today with limited amount of feedstock acquisitions. We are staying disciplined. we will be in business when this bow wave of stuff is coming out when the OEMs catch up and we are the perfect company to monetize it.

我們認為我們處於充分利用即將發生的事情的位置。所以，是的，我們今天正在艱難地度過難關，原料採購量有限。我們保持紀律。當這波產品出現時，當原始設備製造商迎頭趕上時，我們就會開展業務，而我們是透過它獲利的完美公司。

And just to add, as Nick noted, during as we wait for the market to recover, we are in a very good inventory position having deployed over $130 million last year of material that required work and it was serviceable and that's why it is taken some investments to get that inventory marketable and we are starting to see the benefits of that through the P&L.

還要補充一點，正如尼克指出的那樣，在我們等待市場復甦的過程中，我們的庫存狀況非常好，去年我們部署了超過1.3 億美元的材料，這些材料需要工作並且可以使用，這就是為什麼需要一些材料。

So again, following that very, very strategic and very disciplined approach, we were able to deploy last year. So we definitely have a good line of sight at least for the next 12 months and able to support our USM business.

因此，再次遵循這種非常非常有戰略性和非常有紀律的方法，我們去年就能夠進行部署。因此，至少在未來 12 個月內，我們肯定擁有良好的視線，並且能夠支援我們的 USM 業務。

Thank you and I would like to turn it back over to Nick Finazzo, for any closing or additional remarks.

謝謝您，我想將其轉回尼克·菲納佐（Nick Finazzo），以供結束或補充評論。

Thank you. Many thanks everyone for listening to our call today. We have a lot to look forward to in the year ahead. Our heavy investment in inventory and infrastructure is beginning to yield results and we believe that will accelerate over time.

謝謝。非常感謝大家今天收聽我們的電話。未來的一年我們有很多值得期待的事。我們對庫存和基礎設施的大量投資已開始產生成果，我們相信隨著時間的推移，這項成果將會加速。

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

我們的業務強勁，擁有充足的流動性來繼續我們的成長軌跡。祝大家晚上好。

Thank you, and that does conclude today's conference. We thank you for your participation. You may now disconnect.

謝謝大家，今天的會議到此結束。我們感謝您的參與。您現在可以斷開連線。