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| Statement |
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| So that is one of the competitive advantages of our module factories |
| So it's a great sell and that's what we're shooting for as our reason for being as a company is to provide that leading provider of aftermarket power to the global industry for those aircraft |
| So I think we'll see some really good deals, which I think will be accretive and generate very good results for shareholders |
| Leasing had another good quarter, posting approximately $122 million of EBITDA |
| Additionally, on the acquisition side, we acquired at attractive prices, $229 million in new equipment, comprised of 10 aircrafts and 33 engines, which will contribute to further growth in future Leasing EBITDA |
| We sold $33.5 million book value of assets at a 40% margin for a gain of $22.7 million in the quarter, benefiting from exceptionally strong demand globally for our portfolio of assets |
| Aerospace Products had yet another excellent quarter with $54.6 million of EBITDA and an overall EBITDA margin of 34% |
| We see tremendous potential in Aerospace Products and feel good about generating EBITDA for 2024 towards the middle or higher end of the $200 million to $250 million range |
| We continue to expect strong growth in Aerospace Products as customers experience the clear benefits of our MRE products and programs |
| So it's great to see another very strong quarter within aerospace products |
| Additionally, we are very pleased with the introduction, acceptance of and demand for our second focus engine, the V2500 |
| With this, we have the ability to become the leading full-service aftermarket power provider for all 737NG and A320neo aircraft globally |
| It's all in place, probably a lot better than I would have ever expected as the demand for shop visits is extremely high |
| And so we're good |
| And so we're uniquely positioned because we can take an engine that's tagged unserviceable and repair it |
| So it's -- dollar amount-wise CFM is better, and it's percentage-wise better, but V2500 is still good |
| And then we combine that with the ability to provide power, we have the ability to deliver what I think is our ultimate competitive advantage, which is flexibility and cost savings |
| But we're very excited and we definitely are 100% sure it's worth the wait |
| So inventories of modules in a repaired state is a competitive advantage |
| It's been an extremely successful program for them, PMA |
| No one I've talked to in the airline industry ever has told me after a shop visit, that was a great experience |
| So great progress continues |
| Obviously, 50-plus is a good result this quarter in EBITDA |
| We've had a couple of times where we've had some positive surprises because another reason is we often can buy things really cheaply |
| We're very happy with the development and what we've seen in the test results, which actually speaks to the performance of those underlying parts when they're in operation, which is critical and very important |
| So there's a tremendous opportunity for us to step in and do that |
| And it's been very, very successful |
| So that's an opportunity for cost savings on the V2500 |
| In terms of contribution next year, I mean, I think the V2500 should add $25 million of EBITDA easily with some upside |
| So the prospects are pretty exciting and it does sort of give us a complete offering for anybody that operates a 737NG or an A320ceo, we can provide CFM56 or V2500 power |
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| On the leasing portion, we saw a sequential decline in revenue |
| It was a bit of a headwind for us in the fourth quarter that both vessels were off hire |
| There was just long turnaround times and they lost -- they had high turnover of personnel, some experienced personnel |
| So you will see continuing headwinds in the first quarter and then hopefully both vessels will be on higher in the second quarter and onward and we hope to sell both vessels hopefully this year |
| I mean, why wouldn't I want to do this? And so that once people experience, the ease with which they can avoid a shop visit, which is usually very painful for people |
| It looks like those didn't work during the quarter |
| And the reason we did that is the credit wasn't great |
| It's still growing too fast |
| So I think we mentioned to people there was a one-time $5 million write-up in the value of QuickTurn |
| And it could be -- the best situation is that it's unserviceable because of only one module, in which case we get the other two modules at a discount when it's really not |
| So we don't see a lack of investment opportunities at this point |
| So it's a timing issue |
| During the fourth quarter, the $162.3 million EBITDA number was comprised of $121.8 million from our Leasing segment, $54.6 million from our Aerospace Products segment, a negative $14.1 million from Corporate and Other |
| And so that's -- that dynamic has not yet changed |
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