Reportable Segments

6 Months Ended

Jun. 30, 2023

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 and the selective purchase and resale of commercial aircraft engines and other aircraft equipment and other 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 evaluates the performance of each of the segments based on profit or loss after general and administrative expenses. 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 June 30, 2023	Leasing and  Related Operations		Spare Parts Sales		Eliminations		Total
Revenue:
Lease rent revenue	$	54,416	$	—	$	—	$	54,416
Maintenance reserve revenue	35,415		—		—		35,415
Spare parts and equipment sales	254		4,296		—		4,550
Interest revenue	2,258		—		—		2,258
Gain on sale of leased equipment	4,461		—		—		4,461
Other revenue	7,737		228		(69)		7,896
Total revenue	104,541		4,524		(69)		108,996
Expenses:
Depreciation and amortization expense	22,472		22		—		22,494
Cost of spare parts and equipment sales	43		3,015		—		3,058
Write-down of equipment	1,671		—		—		1,671
General and administrative	37,306		1,021		—		38,327
Technical expense	4,919		—		—		4,919
Net finance costs:
Interest expense	19,085		—		—		19,085
Total finance costs	19,085		—		—		19,085
Total expenses	85,496		4,058		—		89,554
Income (Loss) from operations	$	19,045	$	466	$	(69)	$	19,442

Three months ended June 30, 2022	Leasing and  Related Operations		Spare Parts Sales		Eliminations		Total
Revenue:
Lease rent revenue	$	36,704	$	—	$	—	$	36,704
Maintenance reserve revenue	24,245		—		—		24,245
Spare parts and equipment sales	49		6,743		—		6,792
Interest revenue	1,865		—		—		1,865
Gain on sale of leased equipment	498		—		—		498
Gain on sale of financial assets	3,116		—		—		3,116
Other revenue	4,826		58		(29)		4,855
Total revenue	71,303		6,801		(29)		78,075
Expenses:
Depreciation and amortization expense	21,585		27		—		21,612
Cost of spare parts and equipment sales	4		7,010		—		7,014
Write-down of equipment	78		—		—		78
General and administrative	19,581		846		—		20,427
Technical expense	3,436		—		—		3,436
Net finance costs:
Interest expense	16,023		—		—		16,023
Total finance costs	16,023		—		—		16,023
Total expenses	60,707		7,883		—		68,590
Income (Loss) from operations	$	10,596	$	(1,082)	$	(29)	$	9,485

Six months ended June 30, 2023	Leasing and  Related Operations		Spare Parts Sales		Eliminations		Total
Revenue:
Lease rent revenue	$	107,636	$	—	$	—	$	107,636
Maintenance reserve revenue	58,913		—		—		58,913
Spare parts and equipment sales	309		9,293		—		9,602
Interest revenue	4,304		—		—		4,304
Gain on sale of leased equipment	4,328		—		—		4,328
Other revenue	13,525		326		(103)		13,748
Total revenue	189,015		9,619		(103)		198,531
Expenses:
Depreciation and amortization expense	44,989		54		—		45,043
Cost of spare parts and equipment sales	51		7,506		—		7,557
Write-down of equipment	1,671		—		—		1,671
General and administrative	69,536		2,062		—		71,598
Technical expense	7,748		—		—		7,748
Net finance costs:
Interest expense	37,474		—		—		37,474
Total finance costs	37,474		—		—		37,474
Total expenses	161,469		9,622		—		171,091
Income (Loss) from operations	$	27,546	$	(3)	$	(103)	$	27,440

Six months ended June 30, 2022	Leasing and  Related Operations		Spare Parts Sales		Eliminations		Total
Revenue:
Lease rent revenue	$	74,829	$	—	$	—	$	74,829
Maintenance reserve revenue	39,079		—		—		39,079
Spare parts and equipment sales	251		13,171		—		13,422
Interest revenue	3,978		—		—		3,978
Gain on sale of leased equipment	2,796		—		—		2,796
Gain on sale of financial assets	3,116		—		—		3,116
Other revenue	9,525		234		(87)		9,672
Total revenue	133,574		13,405		(87)		146,892
Expenses:
Depreciation and amortization expense	43,367		54		—		43,421
Cost of spare parts and equipment sales	10		11,866		—		11,876
Write-down of equipment	21,195		—		—		21,195
General and administrative	42,387		1,645		—		44,032
Technical expense	9,082		—		—		9,082
Net finance costs:
Interest expense	32,906		—		—		32,906
Total finance costs	32,906		—		—		32,906
Total expenses	148,947		13,565		—		162,512
Loss from operations	$	(15,373)	$	(160)	$	(87)	$	(15,620)

	Leasing and  Related Operations		Spare Parts Sales		Eliminations		Total
Total assets as of June 30, 2023	$	2,554,237	$	49,719	$	—	$	2,603,956
Total assets as of December 31, 2022	$	2,530,130	$	45,087	$	—	$	2,575,217