We think we can perform a full restoration of the V2500, which today has a full list price of about $10 million. We think we can do that for $7.5 million. So it’s roughly about a $2.5 million savings available for to be either for us or for our customers or for both of us. If you compare that on the CFM56, the savings with full PMA, availability on our favorable terms, as shop visits say, is roughly about $6.8 million, and we think we can bring that in a little, about $3.25 million or so. So it’s — dollar amount-wise CFM is better, and it’s percentage-wise better, but V2500 is still good. The second question was about module availability. And there are — you can find modules on an ad hoc basis from an MRO. We actually buy some — we bought modules from MROs and they buy from us and because you don’t always have the module you’re looking for in inventory.
So that is one of the competitive advantages of our module factories. We have in our fleet over 400 CFM engines. That’s 1,200 modules. There’s no one that has anywhere near that availability that I’m aware of. So inventories of modules in a repaired state is a competitive advantage. And I say repaired state because we do repair them and restore them. And if they’re not repaired, then they’re pretty worthless from an airline’s point of view. So It’s a package. It’s all of those things above. And when we say — people say, what are you? And we say, well, we’re an MRE. We maintain, repair, and exchange, which is very different than anybody else in the industry. And then we combine that with the ability to provide power, we have the ability to deliver what I think is our ultimate competitive advantage, which is flexibility and cost savings.
That’s our pitch.
Frank Galanti: Okay, that’s helpful. Sort of thinking about the customer experience then a little further on the on the module side, in the last — I guess in 4Q ‘22, the deck had said that you guys had sold over 100 modules to 26 customers. And based on this release, it said 178 modules to 30 customers. And if you sort of go through the press releases and look at each sort of quarter, you said there are new customers, there are five or two or six in this quarter. You sort of add those up to 26, you get to 40. So is that — so from my understanding then, there were 30 customers, 26 customers in 2022, 30 customers in ‘23, but that sort of leaves 10 customers that didn’t come back in ‘23. Is that the right way to think about those numbers? If you sort of talk about from their perspective why that would be, if you sort of saw that customers going away in a year?
Joe Adams: No, I don’t think the numbers are exactly right. But there are times where a customer to be a repeat customer has to have a need. So not every customer is a repeat customer every quarter. So in other words, if you don’t have a shop visit, you don’t need a module. So it’s a timing issue. I think what we’ve said is we have a very, very high level of repeat customer business, but sometimes you might have a customer that goes out of business. So you can’t have a 100% repeat customer in every quarter. It just doesn’t happen that way. You have to have the need. But it’s been very, very high. The customers that have used our modules have always said that was a great experience and I would like to do that again. And they will do it again when they have a need.
Frank Galanti: Okay, great. Thank you for taking my questions. Appreciate it.
Joe Adams: Yep.
Operator: Thank you. Our next question comes from Brian Mckenna with Citizens JMP. Your line is open.
Brian Mckenna: Okay, great. Thanks. Good morning everyone. So it’s great to see another very strong quarter within aerospace products. So within the $55 million of adjusted EBITDA in the fourth quarter, was there any year-end seasonality or any one-off benefits? Or is it really just continued strength across the business given just increasing levels of demand for the products and services? And I’m just trying to get a sense of a good jumping off point for the segment to start 2024.
Joe Adams: Yeah. So I think we mentioned to people there was a one-time $5 million write-up in the value of QuickTurn.
Angela Nam: That’s right. So we made an initial investment in QuickTurn in January and then bought — consolidated and bought the remaining interest in December. But accounting requires you to revalue your initial investment to fair value at the time of consolidation. So that resulted in a one-time non-cash accounting gain of about $5 million.
Joe Adams: I don’t think we experienced any seasonality in the fourth quarter, and I don’t think we have enough history and market penetration to actually to see what seasonality effects there will be on that business yet. It’s still growing too fast.
Brian Mckenna: Yeah, got it. Okay, great. And then, just broadly, the business clearly is reaching new levels of scale every quarter here. And so if I look out over the next couple of years, cash flow is really going to take another stair step higher. So how should we think about the CapEx needs of the business over time, the absolute level of cash needed for investment back into the business. And again, I’m just trying to get a sense of how you’re thinking about the timing of maybe generating some excess cash flow, and then what some of the uses of that excess liquidity will be.
