air leasing
DESCRIPTION
Details of Airline Leasing business modelTRANSCRIPT
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44 Route 9 South, Suite 1000, Freehold, NJ 07728 USA
Phone: + 1 (732) 924-4400 Fax : +1 (732) 444-5913
About Aero Leasing USA LLC
Aero Leasing USA LLC (ALUSA) is 100% owned by Inter Global Investments LLC. ALUSA has
positioned itself as spare part supplier for the aviation industry. ALUSA is different and believes that
the best business is still done the old fashioned way with the technology of today! We have found that
the best way to have highly satisfied customers in the aviation industry is by focusing on:
Parts Supply
Aircraft parts everyone in this industry can sell, but service is what differentiates us from our competitors.
Since weve started doing business, we have made one of our main focus in better serving our customer So
how do we achieve this?
Apart from our on-hand inventory, we also help providing our customers with brokering services. If they need
a part, we will go out and find it for them. We keep a close monitor on parts we broker for our customers since,
once it is a repetitive request, ALUSA, goes out and purchases for our stock, allowing out customer, next time
they might need that same part, to have the peace of mind that it will be available at our location once they
need it. Apart from this, we also provide our customers with other options of services we provide that help
them alleviate their day to day parts requirement.
We supply every type of part an aircraft may need. From an engine, to and engine mount; from a seat to its
cushions; our range is not limited
We offer our customers everything from the line of rotables and expendables in
all ATA Chapters. We also provide our customer anything or everything they might need for any of their
maintenance checks, from paint, chemicals, sealants and tools.
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44 Route 9 South, Suite 1000, Freehold, NJ 07728 USA
Phone: + 1 (732) 924-4400 Fax : +1 (732) 444-5913
Services:
Parts & Pieces
A-D Check Support
Daily Aircraft Parts Forecasting
Component Exchange and Leasing
Inventory Management and Consignment Sales
Contract Fleet Management
International Logistics Solutions
Parts Planning Contracts
Available Access to Inventory 24/7 with AOG service.
All parts are shipped with full documentation and traceability back to its source.
We seek to be the industry leader in Aerospace Asset Management. We help our customer to eliminate surplus
stock, or purchase a part for an AOG, we have you covered. We have the inventory, resources, and industry
partnerships to provide you the level of service you expect from your most trusted supplier.
Strategic Sourcing
By partnering with OEMs, distributors, repair stations and brokers, we are able to provide the
broadest range of products with sometimes no MOQs. We can provide the exact size or quantity that
you need. We source locally where possible and have negotiated prices with major manufacturers.
Efficient Logistics
Our in-house packaging capability along with our partnership with major logistics companies, freight
forwarders and local couriers allows us to handle all your packaging and shipping needs efficiently.
We have certified personnel who will pack your products meeting compliance requirements. We do
this in a such a way that we do not add unnecessary weight or volume to the shipment, realizing that
inefficient packaging means money out of the door. Additionally, we have negotiated deeply
discounted rates with logistics firms such as UPS, FedEx and DHL and major airlines to be able to
transport all your hazmat and non-hazmat products quickly and safely.
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44 Route 9 South, Suite 1000, Freehold, NJ 07728 USA
Phone: + 1 (732) 924-4400 Fax : +1 (732) 444-5913
Customer Service
By providing personalized service to our customers and great attention to detail, we strive to ensure
that the customers need are met rapidly without compromising quality. We realize that the aviation
customers have unique needs and we work hard to respond to them quickly and comprehensively at
every stage of quoting, ordering and fulfillment.
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44 Route 9 South, Suite 1000, Freehold, NJ 07728 USA
Phone: + 1 (732) 924-4400 Fax : +1 (732) 444-5913
Financials
Assumptions
1. Year-one revenue expectancy
Turbo Prop
Parts Jet Engine
Parts Oil &
Lubricants Engine Spare
Number of units sold annually 2,000 3,000 1,500 1,880
Average sales price per unit $750.00 $1,100.00 $120.00 $1,100.00
Annual revenue per product $1,500,000 $3,300,000 $180,000 $2,068,000
Total year 1 revenue $7,048,000
2. Year 1 cost of goods sold
Turbo Prop
Parts Jet Engine
Parts Oil &
Lubricants Engine Spare
Average cost per unit $600.00 $880.00 $96.00 $880.00
Annual cost of goods sold per product $1,200,000 $2,640,000 $144,000 $1,654,400
Total year 1 cost of goods sold $5,638,400
3. Annual maintenance, repair, and overhaul
Factor (%) on capital equipment 15%
4. Number of years - depreciation 5
5. Annual tax rate 30%
6. Long Term Debt $2,719,623
Year-by-year profit and loss assumptions
Year 1 Year 2 Year 3 Year 4 Year 5
Annual cumulative price (revenue) increase - 2.00% 4.00% 6.00% 8.00%
Annual cumulative inflation (expense) increase - 2.00% 4.00% 6.00% 8.00%
Interest rate on ending cash balance 0.00% 0.00% 0.00% 0.00% 0.00%
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44 Route 9 South, Suite 1000, Freehold, NJ 07728 USA
Phone: + 1 (732) 924-4400 Fax : +1 (732) 444-5913
Project costs & means of finance
Project costs
Particulars Year 1 Year 2 Year 3 Total
Land $150,000 $150,000
Buildings $400,000 $400,000
Plant & Machinery $200,000 $200,000
Inventory/Stock $2,593,664 $2,593,664
Sub total $3,343,664 $3,343,664
Pre Operative Expenses $20,000 $20,000
Security Deposits $250,000 $250,000
Contingency 5% $12,500 $12,500
Total project costs $3,626,164 $0 $0 $3,626,164
Means of finance
Investors Equity 75% 2,719,623
Promoters Equity 25% 906,541
- - -
- - -
Total means of finance 3,626,164 - - -
Workings for computation of Investment share:
Promoters equity 90,654
Investors equity 271,962
Total equity 362,616
No of Equity 362,616
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44 Route 9 South, Suite 1000, Freehold, NJ 07728 USA
Phone: + 1 (732) 924-4400 Fax : +1 (732) 444-5913
Projected Profit & Loss Year 1 Year 2 Year 3 Year 4 Year 5
Revenue
Gross revenue $7,048,000 $7,188,960 $7,476,518 $7,925,110 $8,559,118
Cost of goods sold 5,638,400 5,751,168 5,981,215 6,340,088 6,847,295
Gross margin $1,409,600 $1,437,792 $1,495,304 $1,585,022 $1,711,824
Other revenue [source] $0 $0 $0 $0 $0
Interest income $0 $0 $0 $0 $0
Total revenue $1,409,600 $1,437,792 $1,495,304 $1,585,022 $1,711,824
Operating expenses
Sales and marketing $40,000 $40,800 $42,432 $44,978 $48,576
Payroll and payroll taxes 60,000 $61,200 $63,648 $67,467 $72,864
Depreciation 120,000 122,400 124,800 127,200 129,600
Insurance 40,000 $40,800 $42,432 $44,978 $48,576
Maintenance, repair, and overhaul 30,000 30,600 31,200 31,800 32,400
Utilities 30,000 $30,600 $31,824 $33,733 $36,432
Property taxes 15,000 $15,300 $15,912 $16,867 $18,216
Administrative fees 18,000 $18,360 $19,094 $20,240 $21,859
Other 4,000 $4,080 $4,243 $4,498 $4,858
Total operating expenses $357,000 $364,140 $375,586 $391,761 $413,382
Operating income $1,052,600 $1,073,652 $1,119,718 $1,193,261 $1,298,442
Interest expense on long-term debt 61,388 48,453 35,195 21,605 7,675
Operating income before other items $991,212 $1,025,199 $1,084,523 $1,171,656 $1,290,767
Loss (gain) on sale of assets 0 0 1,000 0 0
Other unusual expenses (income) 0 0 0 0 0
Earnings before taxes $991,212 $1,025,199 $1,085,523 $1,171,656 $1,290,767
Taxes on income 30% 297,364 307,560 325,657 351,497 387,230
Net income (loss) $693,848 $717,639 $759,866 $820,159 $903,537
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44 Route 9 South, Suite 1000, Freehold, NJ 07728 USA
Phone: + 1 (732) 924-4400 Fax : +1 (732) 444-5913
0
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
8,000,000
9,000,000
1 2 3 4 5 6
Increase in Sales
Gross revenue
0
1000000
2000000
3000000
4000000
5000000
6000000
7000000
8000000
1 2 3 4 5 6
Increase in Cost of Goods Sold
Cost of goods sold
-
44 Route 9 South, Suite 1000, Freehold, NJ 07728 USA
Phone: + 1 (732) 924-4400 Fax : +1 (732) 444-5913
0
200000
400000
600000
800000
1000000
1200000
1400000
1600000
1800000
1 2 3 4 5 6
Increase in Gross Revenuen Margin
Total revenue
320000
330000
340000
350000
360000
370000
380000
390000
400000
410000
420000
1 2 3 4 5 6
Increase in Operating Expenses
Total operating expenses
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44 Route 9 South, Suite 1000, Freehold, NJ 07728 USA
Phone: + 1 (732) 924-4400 Fax : +1 (732) 444-5913
0
100000
200000
300000
400000
500000
600000
700000
800000
900000
1000000
1 2 3 4 5 6 7
Increase in Net Income
Net income (loss)
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44 Route 9 South, Suite 1000, Freehold, NJ 07728 USA
Phone: + 1 (732) 924-4400 Fax : +1 (732) 444-5913
Projected Balance Sheet
Assets Initial balance Year 1 Year 2 Year 3 Year 4 Year 5
Cash and short-term investments $50,000 $297,619 $589,855 $907,088 $1,268,781 $1,696,398
Accounts receivable 456,000 492,480 492,480 492,480 492,480 492,480
Total inventory 2,047,000 2,149,350 2,256,818 2,369,658 2,488,141 2,612,548
Prepaid expenses 0 0 0 0 0 0
Deferred income tax 0 0 0 0 0 0
Other current assets 5,000 5,000 5,000 5,000 5,000 5,000
Total current assets $2,558,000 $2,944,449 $3,344,153 $3,774,226 $4,254,403 $4,806,427
Buildings $400,000 $400,000 $400,000 $400,000 $400,000 $400,000
Land 150,000 150,000 150,000 150,000 150,000 150,000
Capital improvements 0 0 0 0 0 0
Machinery and equipment 200,000 200,000 200,000 200,000 200,000 200,000
Less: Ac. depreciation expense 0 120,000 242,400 367,200 494,400 624,000
Net property/equipment $750,000 $630,000 $507,600 $382,800 $255,600 $126,000
Goodwill $0 $0 $0 $0 $0 $0
Deferred income tax 0 0 0 0 0 0
Long-term investments 0 0 0 0 0 0
Deposits 0 0 0 0 0 0
Other long-term assets 0 0 0 0 0 0
Total assets $3,308,000 $3,574,449 $3,851,753 $4,157,026 $4,510,003 $4,932,427
Liabilities Initial balance Year 1 Year 2 Year 3 Year 4 Year 5
Accounts payable $83,400 $173,400 $263,400 $353,400 $443,400 $533,400
Accrued expenses 24,500 24,500 24,500 23,500 23,500 23,500
Notes payable/short-term debt 0 0 0 0 0 0
Capital leases 0 0 0 0 0 0
Other current liabilities 100 100 100 100 100 100
Total current liabilities $108,000 $198,000 $288,000 $377,000 $467,000 $557,000
Long-term debt $2,719,623 $2,202,223 $1,671,889 $1,128,295 $571,113 ($0)
Other long-term debt
Total debt $2,827,623 $2,400,223 $1,959,889 $1,505,295 $1,038,113 $557,000
Other liabilities 0 0 0 0 0 0
Total liabilities $2,827,623 $2,400,223 $1,959,889 $1,505,295 $1,038,113 $557,000
Equity Initial balance Year 1 Year 2 Year 3 Year 4 Year 5
Owner's equity (common) $250,000 $250,000 $250,000 $250,000 $250,000 $250,000
Paid-in capital 250,000 250,000 250,000 250,000 250,000 250,000
Preferred equity 0 0 0 0 0 0
Retained earnings 0 693,848 1,411,487 2,171,354 2,991,513 3,895,050
Total equity $500,000 $1,193,848 $1,911,487 $2,671,354 $3,491,513 $4,395,050
Total liabilities and equity $3,327,623 $3,594,072 $3,871,376 $4,176,649 $4,529,626 $4,952,050
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44 Route 9 South, Suite 1000, Freehold, NJ 07728 USA
Phone: + 1 (732) 924-4400 Fax : +1 (732) 444-5913
$0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
1 2 3 4 5 6
Increase in Assets
Total assets
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
1 2 3 4 5 6
Decrease in Liabilities
Total liabilities
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44 Route 9 South, Suite 1000, Freehold, NJ 07728 USA
Phone: + 1 (732) 924-4400 Fax : +1 (732) 444-5913
($500,000)
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
1 2 3 4 5 6
Repayment of Debt
Long-term debt
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
3,500,000
4,000,000
4,500,000
1 2 3 4 5 6
Increase in Retained Earnings
Retained earnings
-
44 Route 9 South, Suite 1000, Freehold, NJ 07728 USA
Phone: + 1 (732) 924-4400 Fax : +1 (732) 444-5913
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
$4,500,000
$5,000,000
1 2 3 4 5 6
Increase in Equity
Total equity
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44 Route 9 South, Suite 1000, Freehold, NJ 07728 USA
Phone: + 1 (732) 924-4400 Fax : +1 (732) 444-5913
Projected Cash flow
Year 1 Year 2 Year 3 Year 4 Year 5
Operating activities
Net income $693,848 $717,639 $759,866 $820,159 $903,537
Depreciation 120,000 122,400 124,800 127,200 129,600
Accounts receivable (36,480) 0 0 0 0
Inventories (102,350) (107,468) (112,841) (118,483) (124,407)
Accounts payable 90,000 90,000 90,000 90,000 90,000
Amortization 0 0 0 0 0
Other liabilities 0 0 0 0 0
Other operating cash flow items 0 0 0 0 0
Total operating activities $765,018 $822,572 $861,825 $918,876 $998,730
Financing activities
Long-term debt/financing ($517,400) ($530,335) ($543,593) ($557,183) ($571,113)
Preferred stock 0 0 0 0 0
Total cash dividends paid 0 0 0 0 0
Common stock 0 0 0 0 0
Other financing cash flow items 0 0 0 0 0
Total financing activities ($517,400) ($530,335) ($543,593) ($557,183) ($571,113)
Cumulative cash flow $247,619 $292,237 $318,232 $361,693 $427,617
Beginning cash balance $50,000 $297,619 $589,855 $908,088 $1,269,781
Ending cash balance $297,619 $589,855 $908,088 $1,269,781 $1,697,398
CASH FLOW
$0
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
$1,600,000
$1,800,000
1 2 3 4 5
Beginning cash balance
Ending cash balance
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44 Route 9 South, Suite 1000, Freehold, NJ 07728 USA
Phone: + 1 (732) 924-4400 Fax : +1 (732) 444-5913
Loan payment reschedule
Annual interest rate 2.5%
Monthly rate 0.21%
Loan amount $2,719,623
Term of loan (months) 60
Payment ($48,232.33)
Month Principal balance Principal payment Interest Payment
1 $2,719,623 ($42,630) ($5,602) ($48,232)
2 2,676,993 (42,718) (5,514) ($48,232)
3 2,634,274 (42,806) (5,426) ($48,232)
4 2,591,468 (42,894) (5,338) ($48,232)
5 2,548,574 (42,983) (5,250) ($48,232)
6 2,505,591 (43,071) (5,161) ($48,232)
7 2,462,520 (43,160) (5,072) ($48,232)
8 2,419,360 (43,249) (4,983) ($48,232)
9 2,376,111 (43,338) (4,894) ($48,232)
10 2,332,773 (43,427) (4,805) ($48,232)
11 2,289,346 (43,517) (4,716) ($48,232)
12 2,245,830 (43,606) (4,626) ($48,232)
13 2,202,223 (43,696) (4,536) ($48,232)
14 2,158,527 (43,786) (4,446) ($48,232)
15 2,114,741 (43,876) (4,356) ($48,232)
16 2,070,865 (43,967) (4,266) ($48,232)
17 2,026,898 (44,057) (4,175) ($48,232)
18 1,982,841 (44,148) (4,084) ($48,232)
19 1,938,693 (44,239) (3,993) ($48,232)
20 1,894,454 (44,330) (3,902) ($48,232)
21 1,850,124 (44,421) (3,811) ($48,232)
22 1,805,702 (44,513) (3,719) ($48,232)
23 1,761,190 (44,605) (3,628) ($48,232)
24 1,716,585 (44,696) (3,536) ($48,232)
25 1,671,889 (44,789) (3,444) ($48,232)
26 1,627,100 (44,881) (3,352) ($48,232)
27 1,582,219 (44,973) (3,259) ($48,232)
28 1,537,246 (45,066) (3,166) ($48,232)
29 1,492,180 (45,159) (3,074) ($48,232)
30 1,447,022 (45,252) (2,981) ($48,232)
31 1,401,770 (45,345) (2,887) ($48,232)
32 1,356,425 (45,438) (2,794) ($48,232)
33 1,310,987 (45,532) (2,700) ($48,232)
34 1,265,455 (45,626) (2,607) ($48,232)
35 1,219,829 (45,720) (2,513) ($48,232)
36 1,174,109 (45,814) (2,418) ($48,232)
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44 Route 9 South, Suite 1000, Freehold, NJ 07728 USA
Phone: + 1 (732) 924-4400 Fax : +1 (732) 444-5913
37 1,128,295 (45,908) (2,324) ($48,232)
38 1,082,387 (46,003) (2,230) ($48,232)
39 1,036,384 (46,098) (2,135) ($48,232)
40 990,287 (46,192) (2,040) ($48,232)
41 944,094 (46,288) (1,945) ($48,232)
42 897,807 (46,383) (1,849) ($48,232)
43 851,424 (46,479) (1,754) ($48,232)
44 804,945 (46,574) (1,658) ($48,232)
45 758,371 (46,670) (1,562) ($48,232)
46 711,701 (46,766) (1,466) ($48,232)
47 664,934 (46,863) (1,370) ($48,232)
48 618,072 (46,959) (1,273) ($48,232)
49 571,113 (47,056) (1,176) ($48,232)
50 524,057 (47,153) (1,079) ($48,232)
51 476,904 (47,250) (982) ($48,232)
52 429,654 (47,347) (885) ($48,232)
53 382,306 (47,445) (787) ($48,232)
54 334,862 (47,543) (690) ($48,232)
55 287,319 (47,640) (592) ($48,232)
56 239,679 (47,739) (494) ($48,232)
57 191,940 (47,837) (395) ($48,232)
58 144,103 (47,935) (297) ($48,232)
59 96,167 (48,034) (198) ($48,232)
60 48,133 (48,133) (99) ($48,232)