AerSale Corp (NASDAQ:ASLE) Q2 2022 Earnings Conference Call August 8, 2022 4:30 PM ET

Corporate Participants

Kristen Gallagher - HR Director

Nicolas Finazzo - Chairman & Chief Executive Officer

Martin Garmendia - Chief Financial Officer

Conference Call Participants

Gautam Khanna - Cowen

Operator

Greetings. Welcome to AerSale Inc., Second Quarter 2022 Earnings Conference Call. [Operator Instructions].

I would now like to turn the conference over to your host, Kristen Gallagher. Please go ahead.

Kristen Gallagher

Good afternoon. I'd like to welcome everyone to AerSale's second quarter 2022 earnings call. Conducting the call today are Nick Finazzo, Chief Executive Officer and Martin Garmendia, Chief Financial Officer.

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. 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 actual results to differ materially from forward-looking statements are discussed in the Risk Factors section of the company's annual report on Form 10-K for the year ended December 31, 2021, and filed with the Securities and Exchange Commission on March 15, 2022, and its other filings with the SEC. 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'll also refer to non-GAAP measures that we view as important in assessing the performance of our business. A reconciliation of those non-GAAP metrics to the nearest GAAP metric can be found in the earnings presentation materials made available on the Investors section on the AerSale website at ir.aersale.com.

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

Nicolas Finazzo

Thank you, Kristen. Good afternoon and thank you for joining our call today. I'll begin with a brief overview of the quarter and operational updates. And I'll then turn the call over to Martin to review the numbers.

We produced another record quarter for AerSale with total sales of 139.6 million, which was up 51.9% compared to the prior year, and adjusted EBITDA that was up 35.2% to 41.1 million. Notably, this higher profitability was achieved despite the absence of 8.4 million in CARES Act payroll support proceeds that were received in the prior year as a result of the pandemic. This exceptional performance was achieved primarily through the broad-based success of our Boeing 757 passenger to freighter conversion program, which I'll refer to as P2F, combined with an improving backdrop of commercial demand for use serviceable material, which I'll refer to as USM parts.