Income from operations was $4.7 million in the first quarter of 2024, compared to a loss from operations of $0.8 million in the first quarter of 2023.
Income tax benefit was $0.4 million in the first quarter of 2024, compared to income tax expense of $0.1 million in the first quarter of 2023.
GAAP net income was $6.3 million in the first quarter of 2024, compared to $5 thousand in the first quarter of 2023. AerSale recognized a mark-to-market adjustment benefit of $2.0 million related to the private warrant liability, $0.8 million of stock-based compensation expenses within payroll expenses, and $0.5 million in facility relocation costs during the first quarter of 2024. In the first quarter of 2023, the mark-to-market adjustment expense related to the private warrant liability was $0.3 million, stock-based compensation expenses were $2.7 million and relocations costs were $0.4 million. Excluding these non-cash and unusual items adjusted for tax, Adjusted Net Income was $5.5 million in the first quarter of 2024, compared to Adjusted Net Income of $3.3 million in the first quarter of 2023.
Diluted earnings per share was $0.12 for the first quarter of 2024 and $0.00 in the first quarter of 2023. Adjusted for the non-cash and unusual items noted above, adjusted diluted earnings per share was $0.11 for the first quarter of 2024 same as earnings per share of $0.07 in the first quarter of 2023.
Adjusted EBITDA in the first quarter of 2024 was $9.0 million versus $5.0 million in the first quarter of 2023. Higher adjusted EBITDA was primarily due to the increase in flight equipment sales, which generally have higher margins.
AerSale ended the quarter with $128.9 million of liquidity consisting of $2.6 million of cash and available capacity of $126.3 million on our $180 million revolving credit facility, expandable to $200 million. Cash used in operating activities was $21.5 million, mainly due to continued investment in inventory.
Update on Engineered Solutions
The Company is continuing its go-to-market strategy for its Enhanced Flight Vision System (“EFVS”), AerAware™, and remains in open dialogue with multiple aircraft operators to secure a first order while continuing to educate potential customers on the benefits of having the AerAware™ system in their fleets.
In December 2023, the Federal Aviation Administration (“FAA”) issued AerSale a Supplemental Type Certificate (“STC”) for “AerAware™”, the Company’s revolutionary Enhanced Flight Vision System (“EFVS”) for the Boeing B737NG product line. This achievement marked the world's first commercial EFVS system to achieve a 50% visual advantage (over unaided natural vision) and the first large transport aircraft to be certified with a complete dual-pilot EFVS solution featuring a Head-Wearable Display. AerSale developed the AerAware™ certification program under license with The Boeing Company, which included access to necessary technical services, maintenance, and engineering data
Conference Call Information
The Company will host a conference call today, May 8, 2024, at 4:30 pm Eastern Time to discuss these results. A live webcast will also be available at https://ir.aersale.com/news-events/events. Participants may access the call at 1-877-300-8521, international callers may use 1-412-317-6026, and request to join the AerSale Corporation earnings call.
A telephonic replay will be available shortly after the conclusion of the call and until July 8, 2024. Participants may access the replay at 1-844-512-2921, international callers may use 1-412-317-6671, and enter access code 10188062. An archived replay of the call will also be available on the Investors portion of the AerSale website at https://ir.aersale.com/.
Non-GAAP Financial Measures
This press release includes non-GAAP financial measures, including adjusted EBITDA, adjusted Net Income, and adjusted diluted Earnings per Share. AerSale defines adjusted EBITDA as net income (loss) after giving effect to interest expense, depreciation and amortization, income tax expense (benefit), and other non-recurring or unusual items. Adjusted Net Income is defined as net income (loss) after giving effect to mark-to-market adjustments relating to our Private Warrants, stock-based compensation expense and other non-recurring or unusual items. Adjusted diluted earnings per share also exclude these material non-recurring or unusual items.