Form: 8-K12B

Notification that a class of securities of successor issuer is deemed to be registered pursuant to Section 12(b)

December 23, 2020

Documents

Exhibit 99.4

 

AerSale Corp.

PRO FORMA CONDENSED COMBINED FINANCIAL STATEMENTS

 

ASSETS   AerSale Corp.
Balance Sheet as
of September 30,
2020		     Monocle
Acquisition Corp.
Balance Sheet as
of September 30,
2020		         Pro Forma
Adjustments		     September 30, 2020
Pro forma
Combined		  
                         
Current assets:                                    
Cash and cash equivalents   $ 17,369,878       96,288     [A]     177,053,371       65,871,295  
                    [B]     60,500,000          
                    [C]     (165,768,236 )        
                    [D]     (2,677,160 )        
                    [D]     (7,631,765 )        
                    [E]     (13,071,081 )        
Accounts receivable, net     38,957,481                           38,957,481  
Inventory:                                    
Aircraft, airframes, engines, and parts     69,112,736                           69,112,736  
Advance vendor payments     10,530,062                           10,530,062  
Deposits, prepaid expenses, and other current assets     7,129,485       136,873     [D]     (136,873 )     7,129,485  
Due from related party     830,369                           830,369  
Total current assets     143,930,011       233,161           48,268,256       192,431,428  
Fixed assets:                                    
Aircraft and engines held for lease, net     85,959,095                           85,959,095  
Property and equipment, net     7,838,606                           7,838,606  
Inventory:                                    
Aircraft, airframes, engines, and parts     44,724,078                           44,724,078  
Deferred income tax asset, net     3,413,572                           3,413,572  
Deferred financing costs, net     534,616                           534,616  
Deferred customer incentives and other assets, net     270,782                           270,782  
Goodwill     19,860,168                           19,860,168  
Intangible asset     28,899,377                           28,899,377  
Due from related party     5,449,739                           5,449,739  
Cash and marketable securities held in Trust Account     -       177,053,371     [A]     (177,053,371 )     -  
Total assets   $ 340,880,044       177,286,532           (128,785,115 )     389,381,461  
LIABILITIES, MEZZANINE EQUITY AND STOCKHOLDERS' EQUITY                                    
Current Liabilities:                                    
Accounts payable     15,751,468                           15,751,468  
Accrued expenses     8,812,043       677,106     [D]     (677,106 )     6,875,116  
                    [D]     (2,136,927 )        
                    [D]     200,000          
Promissory note - related party     -       150,000     [D]     (150,000 )     -  
                                     
Lessee and customer purchase deposits     2,756,987                           2,756,987  
Deferred revenue     5,554,252                           5,554,252  
Total current liabilities   $ 32,874,750       827,106           (2,764,033 )     30,937,823  
Long-term lease deposits     1,144,771                           1,144,771  
Maintenance deposit payments and other liabilities     5,034,469                           5,034,469  
COMMITMENTS AND CONTINGENCIES                                    
Common stock subject to possible redemption     -       171,459,418     [F]     (171,459,418 )     -  
STOCKHOLDERS' EQUITY:                                    
Preferred stock     2,000             [G]     (2,000 )     -  
NewCo common stock     -       -     [L]     4,105       4,105  
NewCo additional paid-in capital     -       -     [H]     243,218,738       293,655,477  
                    [I]     500          
                    [G]     2,000          
                    [J]     530          
                    [H]     4,225,951          
                    [K]     773,527          
                    [F]     171,459,418          
                    [C]     (165,768,236 )        
                    [B]     60,500,000          
                    [D]     150,000          
                    [D]     (200,000 )        
                    [E]     (13,071,081 )        
                    [D]     (7,631,765 )        
                    [L]     (4,105 )        
Common stock     500       530     [I]     (500 )     -  
                    [J]     (530 )        
Additional paid-in capital     243,218,738       4,225,951     [H]     (243,218,738 )     -  
                    [H]     (4,225,951 )        
Retained earnings     58,604,816       773,527     [K]     (773,527 )     58,604,816  
Total stockholders' equity     301,826,054       5,000,008           45,438,336       352,264,398  
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY   $ 340,880,044       177,286,532           (128,785,115 )     389,381,461  

 

 

[A] Reflects the reclassification of cash and cash equivalents outside the Trust Account that becomes available in connection with the Business Combination.

 

 

 

 

[B] Reflects $60.5 million cash proceeds in consideration for 7.6125 million common shares issued to Common Equity Investors.

 

[C] Reflects the withdrawal of funds from the Trust Account and cash on hand to fund redemption of 16,153,589 shares of Monocle Common Stock at approximately $10.262 per share.

 

[D] Reflects adjustments related to the payment of transaction expenses, including, but not limited to, promissory note, advisory fees, legal fees and registration fees. This adjustment includes a reduction to accrued expenses or prepaid expenses for any previously incurred or prepaid transaction costs that are in connection with the consummation of the Business Combination, and netted with the total Closing costs. Similarly, included in this adjustment, is the addition to accrued expenses for transactions costs to be paid post Business Combination by NewCo.

 

[E] Reflects $13.1 million Aggregate Cash Consideration to be paid to existing AerSale Stockholders and SAR Holders in exchange for their ownership shares of AerSale.

 

[F] Reflects the reclassification of Monocle Common Stock subject to possible redemption to permanent equity.

 

[G] Represents the re-capitalization of shares of AerSale Preferred Stock to NewCo additional paid-in capital.

 

[H] Represents the classification of additional paid-in capital to NewCo additional paid-in capital.

 

[I] Represents the re-capitalization of shares of AerSale Common Stock to NewCo additional paid-in capital.

 

[J] Reflects the re-capitalization of Monocle Common Stock to NewCo additional paid-in capital.

 

[K] Reflects the re-capitalization of Monocle’s retained earnings to NewCo additional paid-in capital.

 

[L] Reflects the classification of NewCo common stock at par value $0.0001 per share.

 

 

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AerSale Corp.

PRO FORMA CONDENSED COMBINED FINANCIAL STATEMENTS

 

    AerSale Corp.
Statement of
Operations For
the nine months
ended
September 30,
2020		     Monocle
Acquisition
Corp. Statement
of Operations
For the nine
months ended
September 30,
2020		         Pro Forma
Adjustments		     Condensed
Combined
Statement of
Operations For
the nine months
ended
September 30,
2020		  
    Unaudited     Unaudited                  
Revenue:                                    
Products     37,726,383                           37,726,383  
Leasing     47,637,093                           47,637,093  
Services     74,192,768                           74,192,768  
Total net revenue     159,556,244                           159,556,244  
Cost of sales and operating expenses:                                    
Cost of products     41,206,646                           41,206,646  
Cost of leasing     21,315,784                           21,315,784  
Cost of services     57,369,877                           57,369,877  
Total cost of sales     119,892,307                           119,892,307  
Gross profit     39,663,937                           39,663,937  
Selling, general, and administrative expenses     40,614,124       226,480     [AA]     (226,480 )     40,614,124  
CARES Act proceeds     (12,692,702 )                         (12,692,702 )
Transaction expenses     433,681             [BB]     (433,681 )     -  
Income (loss) from operations     11,308,834       (226,480 )         660,161       11,742,515  
Other income (expenses):                                    
Interest income (expense), net     (1,306,977 )     16,021     [AA]     (16,021 )     (1,306,977 )
Other income, net     358,137                           358,137  
Total other (expenses) income     (948,840 )     16,021           (16,021 )     (948,840 )
Income (loss) from operations before income tax provision     10,359,994       (210,459 )         644,140       10,793,675  
Income tax (expense) benefit     (2,519,305 )     7,136           (155,702 )     (2,667,871 )
Net income (loss)     7,840,689       (203,323 )         488,438       8,125,804  
Dividends attributable to preferred stockholders     18,582,068       -     [CC]     (18,582,068 )     -  
Net (loss) income from operations attributable to AerSale Corp. common shareholders     (10,741,379 )     (203,323 )         19,070,506       8,125,804  
(Loss) earnings per share - basic and diluted:                                    
Net (loss) earnings per share from operations     (214.83 )     (0.04 )   [DD]             0.20  

 

 

Notes:

 

[AA] Reflects the elimination of Monocle’s historical operation costs and interest income on the trust account and related tax impact that would not have been incurred had the Business Combination been consummated on January 1, 2019. The effective tax rate assumed for both Monocle and AerSale is 24.2%. Operating expenses during 2020 not related to the Business Combination were insignificant.

 

[BB] Elimination of transaction expenses related to the Business Combination incurred in the period ended September 30, 2020.

 

[CC] Reflects the elimination of the Dividends from the AerSale Preferred Stock.

 

[DD] Represents 41,046,216 weighted average shares comprised of 1,096,411 shares currently owned by Monocle public stockholders, 1,592,188 shares currently owned by Initial Stockholders and Cowen plus 30,382,680 shares to be issued to existing AerSale shareholders, 7,612,500 shares to be issued to PIPE investors and 362,437 shares to be issued to advisors. All shares are assumed to have been issued on January 1, 2019.

 

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AerSale Corp.

PRO FORMA CONDENSED COMBINED FINANCIAL STATEMENTS

 

    AerSale Corp.
Statement of
Operations For
the year ended
December 31,
2019		     Monocle
Acquisition
Corp. Statement
of Operations
For the year
ended December
31, 2019		         Pro Forma
Adjustments		     Condensed
Combined
Statement of
Operations For
the year ended
December 31,
2019		  
                         
Revenue:                                    
Products     170,566,047                           170,566,047  
Leasing     64,245,884                           64,245,884  
Services     69,389,272                           69,389,272  
Total net revenue     304,201,203                           304,201,203  
Cost of sales and operating expenses:                                    
Cost of products     131,671,553                           131,671,553  
Cost of leasing     29,217,035                           29,217,035  
Cost of services     58,263,856                           58,263,856  
Total cost of sales     219,152,444                           219,152,444  
Gross profit     85,048,759                           85,048,759  
Selling, general, and administrative expenses     59,813,607       1,573,512     [AA]     (1,573,512 )     59,813,607  
Transaction expenses     3,176,797             [BB]     (3,176,797 )        
Income (loss) from operations     22,058,355       (1,573,512 )         4,750,309       25,235,152  
Other income (expenses):                                    
Interest income (expense), net     (3,006,663 )     3,164,817     [AA]     (3,164,817 )     (3,006,663 )
Other income (expenses), net     611,109                           611,109  
Total other (expenses) income     (2,395,554 )     3,164,817           (3,164,817 )     (2,395,554 )
Income from operations before income tax provision     19,662,801       1,591,305           1,585,492       22,839,598  
Income tax (expense)     (4,163,663 )     (627,795 )         (383,245 )     (5,174,703 )
Net income     15,499,138       963,510           1,202,247       17,664,895  
Dividends attributable to preferred stockholders     34,632,836       -     [CC]     (34,632,836 )     -  
Net (loss) income from operations attributable to AerSale Corp. common shareholders     (19,133,698 )     963,510           35,835,083       17,664,895  
(Loss) earnings per share - basic and diluted:                                    
Net (loss) earnings per share from operations     (382.67 )     (0.28 )   [DD]             0.43  

 

 

Notes:

 

[AA] Reflects the elimination of Monocle’s historical operation costs and interest income on the trust account and related tax impact that would not have been incurred had the Business Combination been consummated on January 1, 2019. The effective tax rate assumed for both Monocle and AerSale is 24.2%. Operating expenses during 2019 not related to the Business Combination were insignificant.

 

[BB] Elimination of transaction expenses related to the Business Combination incurred in the year ended December 31, 2019.

 

[CC] Reflects the elimination of the Dividends from the AerSale Preferred Stock.

 

[DD] Represents 41,046,216 weighted average shares comprised of 1,096,411 shares currently owned by Monocle public stockholders, 1,592,188 shares currently owned by Initial Stockholders and Cowen plus 30,382,680 shares to be issued to existing AerSale shareholders, 7,612,500 shares to be issued to PIPE investors and 362,437 shares to be issued to advisors. All shares are assumed to have been issued on January 1, 2019.

 

4

 

 

Capitalization Table

 

    September 30, 2020  
    Historical     Pro Forma  
    Monocle     AerSale     Combined  
Cash and cash equivalents     96,288       17,369,878       65,871,295  
Investment held in trust     177,053,371       -       -  
      177,149,659       17,369,878       65,871,295  
                         
Monocle Common Stock, subject to possible redemption     171,459,418       -       -  
AerSale Preferred Stock     -       2,000       -  
Stockholders’ equity     5,000,008       301,824,054       352,264,398  
Total capitalization     176,459,426       301,826,054       352,264,398  

 

 

 

5

 

 

Historical Comparative Share Information

 

    Monocle Year
Ended
December 31,
2019		     Monocle Nine
Months
Ended
September 30,
2020		     AerSale Year
Ended
December 31,
2019		     AerSale Nine
Months
Ended
September 30,
2020		     Pro Forma
Combined
Nine Months
Ended
September 30,
2020		  
Book value per share (1)   $ 1.01     $ 0.99     $ 5,879.71     $ 6,036.52     $ 8.58  
Basic and diluted net income (loss) per share   $ (0.28 )   $ (0.04 )   $ (383.00 )   $ (214.83 )   $ 0.20  
Cash dividends per share   $ 0     $ 0       n/a       n/a       n/a  

 

 

(1) Book value per share = Total equity/shares outstanding. For the pro forma combined book value per share, total equity does not include the Unvested Founder Shares and is derived using 41,046,216 shares.

 

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