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  "documentTitle": "FTAI Aviation, Ltd. (FTAI)",
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  "authorName": "Muddy Waters Research",
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  "presentationDate": "2025-01-15 00:00:00",
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  "notes": "The slide uses a combination of financial outlier analysis and qualitative expert testimony to build a case for accounting manipulation.",
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      "text": "FTAI generates about ~$2m in GAAP revenue per module sold, compared to the sticker price a customer would pay for an off-the-rack module (~$700k - ~$1.5m).",
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      "text": "FTAI's GAAP financials indicate that whole engine sales are a material contributor to FTAI's AP segment: FTAI's revenue and EBITDA per employee are significant outliers vs peers (~3x and ~7x, higher, respectively). FTAI generates about ~$2m in GAAP revenue per module sold, compared to the sticker price a customer would pay for an off-the-rack module (~$700k - ~$1.5m).",
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      "text": "We engaged another former FTAI executive to canvass the major aftermarket traders in the industry. His research determined that approximately 1/3 of FTAI's YTD 2024 Aerospace Products revenue consisted of misreported whole engine sales largely executed via engine exchanges. Another industry expert echoed a similar sentiment.",
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      "text": "CFM56 engines are commonly thought of as containing three modules: the Fan, the Core, and the Low-Pressure Turbine (LPT). FTAI also reports CFM56 engines as being in three modules.",
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      "kind": "paragraph",
      "text": "We spoke with a former senior FTAI executive who believes that ~80% of the reported module swaps are actually whole engine sales.",
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      "text": "New language in the Q3 2024 10-Q explicitly states that whole engines are now a component of Inventory, highlighting the materiality of whole engines to Aerospace Products.",
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      "kind": "quote",
      "text": "\"Three modules is a whole engine.\" — FTAI Aviation Investor's Day Presentation June 7, 2023., Q1 2024 Earnings Call April 26, 2024",
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      "kind": "source-note",
      "text": "1 FTAI Aviation Investor's Day Presentation June 7, 2023., Q1 2024 Earnings Call April 26, 2024, CEO: “Three modules is a whole engine.” Et alia. 3 FTAI Aviation 10-Q Q3 2024, Pg. 12",
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      "text": "Evidence Whole Engine Sales Are Material",
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