AerCap Holdings N.V. Reports First Quarter 2012 Financial Results
(Thomson Reuters ONE) -
Adjusted net income for the first quarter of 2012 was $69.1 million.
Amsterdam, Netherlands; May 8, 2012 - AerCap Holdings N.V. (the "Company" or
"AerCap") (NYSE: AER) today announced the results of its operations for the
first quarter ended March 31, 2012.
First Quarter 2012 Net Income and Earnings Per Share
* First quarter 2012 reported net income was $65.0 million, compared with
$72.1 million for the same period in 2011. First quarter 2012 reported basic
and diluted earnings per share was $0.46, compared with reported basic and
diluted earnings per share of $0.48 for the same period in 2011.
* First quarter 2012 adjusted net income was $69.1 million, compared with
first quarter 2011 adjusted net income of $75.3 million. Adjusted net income
excludes non-cash charges relating to the mark-to-market of interest rate
caps and share-based compensation. First quarter 2012 adjusted earnings per
share was $0.49, compared with $0.50 for the same period in 2011.
Aengus Kelly, CEO of AerCap, commented: "The first quarter has seen AerCap
deliver another very strong set of results. The combination of our young fuel
efficient aircraft portfolio, disciplined growth strategy and robust capital
structure continue to deliver industry leading returns. This combination of
factors has also resulted in AerCap being rated Investment Grade by both S&P and
Fitch, these ratings coupled with our ample liquidity and access to capital
ensure that AerCap will be able to rapidly respond to market investment
opportunities that may arise in the balance of this year and beyond."
Additional First Quarter 2012 Financial Highlights
* Net interest margin earned on lease assets, or net spread, was $174.4
million in the first quarter of 2012 compared with $180.1 million for the
same period in 2011. Net interest margin as a percent to average lease
assets was 8.85% for first quarter 2012 as compared to 9.22% for first
quarter 2011. The decrease in net interest margin is driven by the impact
from the delivery of new aircraft.
* Total assets were $9.3 billion at March 31, 2012, a decrease of 5% over
total assets of $9.8 billion at March 31, 2011. The net decrease is
attributed to the sale of AeroTurbine and the sale of our 50% interest in a
joint venture containing three A330 aircraft, totaling $0.6 billion, offset
by new aircraft deliveries.
* Debt to equity ratio was 2.6 to 1 at March 31, 2012, compared to 2.9 to 1 at
March 31, 2011.
* Committed purchases of aviation assets delivered or scheduled for delivery
in 2012 are $985 million, of which $258 million closed in the first three
months of 2012.
* We entered into debt facility agreements totaling $0.3 billion in first
quarter 2012.
* AerCap was assigned an investment grade corporate credit rating of BBB- with
a stable outlook by both Standard and Poor's Ratings Services and Fitch
Ratings.
AerCap's CFO, Keith Helming, added: "We are very proud of the recent investment
grade corporate credit ratings which are representative of management's
disciplined approach to capital allocation and liquidity. The total interest
costs of the Company's debt obligations remain at the 4% level, inclusive of all
up-front fees paid in addition to the hedging costs to fully protect the Company
from adverse interest rate risks. Our debt to equity ratio is now 2.6 to 1 with
book equity of $2.35 billion. Coupled with a total cash balance in excess of
$720 million, AerCap is well positioned to carry forward its business strategy
in 2012 and beyond to maximize value for its shareholders and other Company's
stakeholders."
Summary of Financial Results
($ in Millions)
Operating results:
Three months ended
March 31,
----------------------------------------------
2012 2011 % increase/ (decrease)
---------- ---------- ------------------------
Net income $ 65.0 $ 72.1 (10%)
Adjusted net income 69.1 75.3 (8%)
Both reported and adjusted net income in the first quarter of 2012 were down
slightly from the same period in 2011. This decrease was the result of the
timing of revenues and expenses relating to defaults and restructurings in the
first quarter of 2011 and 2012.
Revenue breakdown
Three months ended
March 31,
--------------------------------------
% increase/
2012 2011 (decrease)
------------ ------------ ------------
Lease revenue:
Basic lease rents $ 235.1 $ 237.1 (1%)
Maintenance rents and other
receipts 17.6 20.1 (12%)
------------ ------------ ------------
Lease revenue 252.7 257.2 (2%)
Net loss on sale of assets (0.2) (1.3) 85%
Management fees and interest income 5.2 5.7 (9%)
Other revenue 0.2 2.5 (92%)
------------ ------------ ------------
Total revenue $ 257.9 $ 264.1 (2%)
------------ ------------ ------------
Basic lease rents were $235.1 million for the first quarter of 2012, a decrease
of 1% compared with the same period in 2011. Our average lease assets increased
by 1% to $7.9 billion compared with the first quarter of 2011.
Basic rents, maintenance rents and other receipts, or total lease revenue, for
the first quarter of 2011 was $252.7 million, compared to $257.2 million for the
same period in 2011, a decrease of 2%.
Net loss on sale of assets for the first quarter of 2012 was a loss of $0.2
million, compared to a $1.3 million loss for the same period in 2011. Net loss
on sale of assets for the first quarter of 2012 was generated from the sale of
an older B757 aircraft partially offset by a gain on a new A330 aircraft.
Total revenue for the first quarter of 2012 was $257.9 million, compared to
$264.1 million for the same period in 2011.
Three months ended
March 31,
---------------------------------------
% increase/
2012 2011 (decrease)
----------- ----------- ------------
Basic lease rents $ 235.1 $ 237.1 (1%)
Interest on debt 64.0 (a) 58.7 9%
Plus: mark-to-market of interest rate
caps (3.3) (1.7) 94%
----------- ----------- ------------
Interest on debt excluding the impact
of mark-to-market of interest rate
caps 60.7 57.0 6%
----------- ----------- ------------
Net interest margin, or net spread $ 174.4 $ 180.1 (3%)
----------- ----------- ------------
(a) Interest on debt for the quarter ended March 31, 2012 includes $7.1 million
of amortization of debt issuance costs.
As shown in the table above, interest expense excluding the impact of the mark-
to-market of interest rate caps was $60.7 million in the first quarter of 2012,
a 6% increase compared with the first quarter of 2011. Net spread in the first
quarter of 2012 decreased 3% compared with the same period in 2011.
Selling, general and administrative expenses breakdown
Three months ended
March 31,
----------------------------------
% increase/
2012 2011 (decrease)
---------- ---------- ------------
Aircraft management fees $ 0.5 $ 1.6 (69%)
Mark-to-market of foreign currency hedges,
foreign currency balances and other
derivatives (4.9) (7.2) (32%)
Share-based compensation expenses 1.5 1.2 25%
Other selling, general and administrative
expenses 19.2 21.2 (9%)
---------- ---------- ------------
Total selling, general and administrative
expenses $ 16.3 $ 16.8 (3%)
---------- ---------- ------------
Effective tax rate
AerCap's blended effective tax rate during the first three months of 2012 was
8.7%. The blended effective tax rate in 2011 was 6.7%.
Financial position
% increase/
(decrease) over
March 31, 2012 March 31, 2011 March 31, 2011
---------------- ---------------- ----------------
Total cash (incl.
restricted) $ 728.3 $ 621.2 17%
Flight equipment held
for lease 7,974.7 8,366.6 (5%)
Total assets 9,255.9 9,789.1 (5%)
Debt 6,176.8 6,731.1 (8%)
Total liabilities 6,907.4 7,496.4 (8%)
Total equity 2,348.5 2,292.7 2%
Debt/equity ratio 2.6 2.9 (10%)
As of March 31, 2012, AerCap's portfolio consisted of 350 aircraft that were
either owned, on order, under contract or letter of intent, or managed. Total
assets were $9.3 billion at March 31, 2012, a decrease of 5% over total assets
of $9.8 billion at March 31, 2011. The net decrease is attributed to the sale of
AeroTurbine and the sale of our 50% interest in a joint venture containing three
A330 aircraft, totaling $0.6 billion, offset by new aircraft deliveries.
Notes Regarding Financial Information Presented In This Press Release
The financial information presented in this press release is not audited.
The following is a definition of non-GAAP measures used in this press release
and a reconciliation of such measure to the most closely related GAAP measure:
Adjusted net income and adjusted earnings per share. These measures are
determined by adding non-cash charges related to the mark-to-market losses on
our interest rate caps and share based compensation during the applicable
period, net of related tax benefits, to GAAP net income. Adjusted earnings per
share are determined by dividing the amount of adjusted net income by the
average number of shares outstanding for that period. The average number of
shares is based on a daily average.
In addition to GAAP net income and earnings per share, we believe these measures
may provide investors with supplemental information regarding our operational
performance and may further assist investors in their understanding of our
operational performance in relation to past and future reporting periods. We use
interest rate caps to allow us to benefit from decreasing interest rates and
protect against the negative impact of rising interest rates on our floating
rate debt. Management determines the appropriate level of caps in any period
with reference to the mix of floating and fixed cash inflows from our lease and
other contracts. We do not apply hedge accounting to our interest rate caps. As
a result, we recognize the change in fair value of the interest rate caps in our
income statement during each period.
Following is a reconciliation of net income excluding the impact of the mark-to-
market of interest rate caps and share-based compensation to net income for the
three month periods ended March 31, 2012 and 2011:
Three months ended
March 31,
----------------------------------------------
2012 2011 % increase/ (decrease)
---------- ---------- ------------------------
Net income $ 65.0 $ 72.1 (10%)
Plus: mark-to-market of
interest rate caps, net of tax 2.8 1.5 87%
share-based
compensation, net of tax 1.3 1.7 (24%)
---------- ---------- ------------------------
Adjusted net income $ 69.1 $ 75.3 (8%)
---------- ---------- ------------------------
Net interest margin, or net spread (refer to second table under Revenue
breakdown section of this press release). This measure is the difference between
basic lease rents and interest expense excluding the impact from the mark-to-
market of interest rate caps. We believe this measure may further assist
investors in their understanding of the changes and trends related to the
earnings of our leasing activities. This measure reflects the impact from
changes in the number of aircraft leased, lease rates, utilization rates, as
well as the impact from the use of interest rate caps instead of swaps to hedge
our interest rate risk. The reconciliation of net spread to basic rents for the
three month periods ended March 31, 2012 and 2011 is included above.
Conference Call
In connection with the earnings release, management will host an earnings
conference call today, Tuesday, May 8, 2012 at 9:30 am Eastern Time / 3:30 pm
Central European Time. The call can be accessed live by dialing (U.S./Canada)
1-480-629-9692 or (International) +31-20-794-8504 and referencing code 4529515
at least 5 minutes before start time, or by visiting AerCap's website at
http://www.aercap.com under "Investor Relations".
The webcast replay will be archived in the "Investor Relations" section of the
company's website for one year.
In addition, a New York Group Lunch Presentation for investors and analysts will
be hosted by AerCap's management today, Tuesday, May 8, 2012, at 12:30 pm
Eastern Time at The New York Palace (the Henry Room), 455 Madison Avenue, New
York. Doors will open at 12:00 pm.
To participate in either event, please register at:
http://client.sharedvalue.net/AerCap/Q112
For further information, contact Peter Wortel: +31 20 655 9658
(pwortel(at)aercap.com)
or Mark Walter (Shared Value): +44 (0)20 7321 5039 (aercap(at)sharedvalue.net).
About AerCap Holdings N.V.
AerCap is the world's leading independent aircraft leasing company and has one
of the youngest fleets in the industry. AerCap has a portfolio of 350 aircraft
with a focus on fuel-efficient narrowbodies and widebodies. AerCap is a New York
Stock Exchange-listed company (AER) headquartered in The Netherlands with
offices in Ireland, the United States, China, Singapore and the United Arab
Emirates.
Forward Looking Statements
This press release contains certain statements, estimates and forecasts with
respect to future performance and events. These statements, estimates and
forecasts are "forward-looking statements". In some cases, forward-looking
statements can be identified by the use of forward-looking terminology such as
"may," "might," "should," "expect," "plan," "intend," "estimate," "anticipate,"
"believe," "predict," "potential" or "continue" or the negatives thereof or
variations thereon or similar terminology. All statements other than statements
of historical fact included in this press release are forward-looking statements
and are based on various underlying assumptions and expectations and are subject
to known and unknown risks, uncertainties and assumptions, may include
projections of our future financial performance based on our growth strategies
and anticipated trends in our business. These statements are only predictions
based on our current expectations and projections about future events. There are
important factors that could cause our actual results, level of activity
performance or achievements to differ materially from the results, level of
activity, performance or achievements expressed or implied in the forward-
looking statements. As a result, there can be no assurance that the forward-
looking statements included in this press release will prove to be accurate or
correct. In light of these risks, uncertainties and assumptions, the future
performance or events described in the forward-looking statements in this press
release might not occur. Accordingly, you should not rely upon forward-looking
statements as a prediction of actual results and we do not assume any
responsibility for the accuracy or completeness of any of these forward-looking
statements. We do not undertake any obligation to, and will not, update any
forward-looking statements, whether as a result of new information, future
events or otherwise.
For more information regarding AerCap and to be added to our email distribution
list, please visit http://www.aercap.com.
Financial Statements Follow
AerCap Holdings
N.V.
Unaudited
Consolidated
Balance Sheets
(In thousands of
U.S. Dollars)
December
March 31, 2012 31, 2011 March 31, 2011
Assets
Cash and cash
equivalents $ 424,694 $ 411,081 $ 322,450
Restricted cash 303,652 237,325 210,134
Trade
receivables, net
of provisions 10,494 16,063 58,976
Flight equipment
held for
operating leases,
net 7,974,747 7,895,874 8,366,553
Net investment in
direct finance
leases 24,103 25,094 28,633
Notes
receivables, net
of provisions 4,282 5,200 18,153
Prepayments on
flight equipment 102,741 95,619 130,784
Investments 84,968 84,079 78,138
Goodwill - - 6,776
Intangibles 26,700 29,677 53,364
Inventory 8,864 13,953 124,985
Derivative assets 18,629 21,050 85,183
Deferred income
taxes 86,771 91,258 89,680
Other assets 185,254 181,359 215,246
Total Assets $ 9,255,899 $ 9,107,632 $ 9,789,055
Liabilities and
Equity
Accounts payable $ 674 $ 4,142 $ 18,684
Accrued expenses
and other
liabilities 82,994 74,458 105,176
Accrued
maintenance
liability 475,203 452,582 423,562
Lessee deposit
liability 104,263 102,844 120,689
Debt 6,176,754 * 6,111,165 6,731,055
Accrual for
onerous contracts - 3,971 4,800
Deferred revenue 46,645 47,994 52,265
Derivative
liabilities 20,900 27,159 40,143
Total liabilities 6,907,433 6,824,315 7,496,374
Ordinary share
capital ?0.01 par
value
(250,000,000
ordinary shares
authorized,
149,232,426
ordinary shares
issued and
outstanding) 1,570 1,570 1,570
Additional paid-
in capital 1,341,670 1,340,205 1,334,967
Treasury stock
(9,332,982
ordinary shares) (100,000) (100,000) -
Accumulated other
comprehensive
income (loss) (9,266) (8,513) 5,818
Accumulated
retained earnings 1,108,984 1,043,974 943,839
Total AerCap
Holdings N.V.
shareholders'
equity 2,342,958 2,277,236 2,286,194
Non-controlling
interest 5,508 6,081 6,487
Total Equity 2,348,466 2,283,317 2,292,681
Total Liabilities
and Equity $ 9,255,899 $ 9,107,632 $ 9,789,055
* Includes $64.3 million of subordinated debt received from our joint
venture partners
Supplemental December
information March 31, 2012 31, 2011 March 31, 2011
Debt/equity ratio 2.6 2.7 2.9
Debt/equity ratio
(adjusted for
subordinated
debt) 2.5 2.6 2.8
AerCap Holdings N.V.
Unaudited Consolidated Income Statements
(In thousands of U.S. Dollars, except share and
per share data)
Three months ended
March 31,
2012 2011
------------- ------------
Revenues
Lease revenue $ 252,738 $ 257,242
Net loss on sale of assets (219) (1,315)
Management fee revenue 4,530 5,148
Interest revenue 622 580
Other revenue 229 2,456
------------- ------------
Total Revenues 257,900 264,111
Expenses
Depreciation 89,028 90,425
Asset impairment - 7,749
Interest on debt 63,967 58,701
Operating lease-in costs 2,522 3,051
Leasing expenses 18,477 11,096
Provision for doubtful accounts - (39)
Selling, general and administrative expenses 16,328 16,834
------------- ------------
Total Expenses 190,322 187,817
------------- ------------
Income from continuing operations before income
taxes and income of investments accounted for
under the equity method 67,578 76,294
Provision for income taxes (5,878) (5,773)
Net income of investments accounted for under the
equity method 2,737 2,654
------------- ------------
Net Income from continuing operations 64,437 73,175
Loss from discontinued operations, net of tax
(AeroTurbine) - (646)
------------- ------------
Net income 64,437 72,529
Net loss (income) attributable to non-controlling
interest 573 (440)
------------- ------------
Net Income attributable to AerCap Holdings N.V. $ 65,010 $ 72,089
------------- ------------
Total earnings per share, basic and diluted $0.46 $0.48
Weighted average shares outstanding, basic and
diluted 139,899,444 149,232,426
Certain reclassifications have been made to prior years Unaudited Consolidated
Income Statements to reflect the current year presentation.
AerCap Holdings N.V.
Unaudited Consolidated Statements of Cash
Flows
(In thousands of U.S.
Dollars)
Three months ended March Three months ended
31, March 31,
-------------------------------------------------
2012 2011
------------- -----------------------
Net income $ 64,437 $ 72,529
Adjustments to reconcile
net income to net cash
provided by operating
activities:
Depreciation 89,028 98,322
Asset impairment - 7,749
Amortization of debt
issuance costs 7,115 7,451
Amortization of
intangibles 2,977 5,273
Provision for doubtful
accounts - 1,643
Capitalised interest on
pre-delivery payments (336) (39)
Net loss on sale of
assets 219 478
Mark-to-market of non-
hedged derivatives (3,784) (18,376)
Deferred taxes 4,595 7,859
Share-based compensation 1,465 2,273
Changes in assets and
liabilities:
Trade receivables and
notes receivable, net 6,487 (14,365)
Inventories 5,089 (368)
Other assets and
derivative assets (5,714) (28,944)
Other liabilities (4,057) (41,270)
Deferred revenue (1,349) (7,797)
------------- -----------------------
Net cash provided by
operating activities 166,172 92,418
Purchase of flight
equipment (268,647) (359,889)
Proceeds from
sale/disposal of assets 107,967 25,943
Prepayments on flight
equipment (8,206) (8,678)
Purchase of investments - (2,500)
Movement in restricted
cash (66,327) 12,330
------------- -----------------------
Net cash used in
investing activities (235,213) (332,794)
Issuance of debt 354,590 405,904
Repayment of debt (289,106) (243,809)
Debt issuance costs paid (5,926) (14,819)
Maintenance payments
received 39,708 33,907
Maintenance payments
returned (18,409) (20,538)
Security deposits
received 4,105 1,910
Security deposits
returned (1,925) (6,717)
------------- -----------------------
Net cash provided by
financing activities 83,037 155,838
Net increase (decrease)
in cash and cash
equivalents 13,996 (84,538)
Effect of exchange rate
changes (383) 2,538
Cash and cash
equivalents at beginning
of period 411,081 404,450
------------- -----------------------
Cash and cash
equivalents at end of
period $ 424,694 $ 322,450
------------- -----------------------
Certain reclassifications have been made to prior years Unaudited Consolidated
Statements of Cash Flows to reflect the current year presentation.
For Investors: For Media:
Keith Helming Frauke Oberdieck
Chief Financial Officer Corporate Communications
+31 20 655 9670 +31 20 655 9616
khelming(at)aercap.com foberdieck(at)aercap.com
Peter Wortel
Investor Relations
+31 20 655 9658
pwortel(at)aercap.com
AerCap Q1 2012 Earnings:
http://hugin.info/149317/R/1609588/511424.pdf
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: AerCap Holdings N.V. via Thomson Reuters ONE
[HUG#1609588]
Unternehmensinformation / Kurzprofil:
Datum: 08.05.2012 - 12:57 Uhr
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News-ID 143940
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