Wheels Up Experience Inc. recently completed the disposition of 100% of the issued and outstanding equity interests of Circadian Aviation LLC, resulting in the divestiture of the company's non-core aircraft management business. The fair value of the aggregate consideration transferred was $19.1 million, comprising $13.2 million of cash received on the Closing Date, contingent consideration with a fair value of $4.8 million, an escrow receivable of $0.6 million, and a non-contingent consideration receivable of $0.5 million.
The unaudited pro forma condensed consolidated balance sheet as of June 30, 2023, has been prepared to reflect the Divestiture, resulting in adjustments to current assets, liabilities, and equity. The total assets after the Divestiture stood at $1,352,283, with adjustments made to cash and cash equivalents, accounts receivable, and other current assets. The liabilities and equity also underwent changes, with adjustments made to current liabilities, long-term debt, and stockholders' equity.
In terms of the unaudited pro forma condensed consolidated statement of operations, for the six months ended June 30, 2023, the Divestiture led to a reduction in revenue from $686,874 to $566,273, with corresponding adjustments made to costs and expenses. The loss from operations was impacted, and adjustments were made to other income and expense items as well. The net loss attributable to Wheels Up Experience Inc. was adjusted to $(260,413) as a result of the Divestiture.
For the twelve months ended December 31, 2022, the Divestiture resulted in revenue decreasing from $1,579,760 to $1,362,427. Costs and expenses were adjusted, and the net loss attributable to Wheels Up Experience Inc. was revised to $(555,890).
The unaudited pro forma condensed consolidated financial information presented provides insights into the impact of the Divestiture on Wheels Up Experience Inc.'s financial position and results of operations. It's important to note that the adjustments are based on estimates and management's assumptions and judgments in accordance with the company's accounting policies. The market has reacted to these announcements by moving the company's shares 0.0% to a price of $2.01. If you want to know more, read the company's complete 8-K report here.
