AerCap Holdings N.V. Reports First Quarter 2013 Financial Results
(Thomson Reuters ONE) -
Adjusted net income and earnings per share for the first quarter of 2013 was
$68.0 million and $0.60, respectively. During the first quarter of 2013:
* $0.4 billion of aircraft were purchased,
* $0.1 billion of aircraft were sold,
* $0.1 billion of financing transactions were completed,
* and 34 aircraft transactions were executed.
Amsterdam, Netherlands; May 7, 2013 - AerCap Holdings N.V. (the "Company" or
"AerCap") (NYSE: AER) today announced the results of its operations for the
first quarter ended March 31, 2013.
First quarter 2013 Financial Highlights
* First quarter 2013 reported net income was $67.5 million, compared with
$65.0 million for the same period in 2012. First quarter 2013 reported basic
and diluted earnings per share was $0.59, compared with $0.46 for the same
period in 2012.
* First quarter 2013 adjusted net income was $68.0 million, compared with
$69.1 million for the same period in 2012. First quarter 2013 adjusted
earnings per share was $0.60, compared with $0.49 for the same period in
2012.
* Net interest margin earned on lease assets, or net spread, was $152.9
million in the first quarter of 2013 compared with $174.4 million for the
same period in 2012. Net interest margin as a percentage of average lease
assets was 8.3% for first quarter 2013 as compared with 8.8% for the same
period in 2012. The decrease is primarily attributable to the sale of the
ALS portfolio in the fourth quarter of 2012.
* Total owned assets were $8.6 billion as of March 31, 2013 and total managed
aircraft were valued at $2.1 billion(a)). The total owned assets decreased
by 7% from $9.3 billion as of March 31, 2012, which was primarily
attributable to the sale of the ALS portfolio (now a managed asset),
partially offset by new aircraft deliveries.
* Total committed aircraft purchases were $1.6 billion as of March 31, 2013,
relating to 34 aircraft including purchase options, which are fully placed
on long term leases.
* The debt to equity ratio was 2.6 to 1 at March 31, 2013, unchanged from
March 31, 2012.
* Unrestricted cash as of March 31, 2013 was $375.4 million. In addition, an
undrawn working capital facility of $290 million was available.
a. Includes aircraft under our management and owned by our non-consolidated
joint ventures. The aircraft value was based on the average appraised value
provided by three external appraisers between September 2012 and March
2013.
Aengus Kelly, CEO of AerCap, commented: "The combination of our asset sales over
the course of the last 12 months at or above book value and subsequent purchase
of our shares at a deep discount to book value has driven our earnings per share
up by 22% year on year. This disciplined approach to both investing in and
divesting of aircraft is a key pillar of AerCap's industry leading results."
AerCap's CFO, Keith Helming, added: "We are encouraged by the Company's
financial performance in the first quarter of 2013, as the Company's liquidity
profile remains robust. With a total of $655 million of unrestricted cash and
availability on our undrawn credit facility, the Company is extremely well
positioned to take advantage of accretive investment opportunities that may
arise throughout the balance of 2013."
Net Income/Earnings Per Share
Set forth below are the details to reconcile reported net income to adjusted net
income, including the specific adjustments.
Three months ended
March 31,
------------------------------
% increase/
2013 2012 (decrease)
-------- -------- ------------
Net income $ 67.5 $ 65.0 4%
Plus: mark-to-market of interest rate caps,
net of tax (1.3) 2.8 NA
share-based compensation, net of tax 1.8 1.3 38%
-------- -------- ------------
Adjusted net income 68.0 69.1 (2%)
-------- -------- ------------
Adjusted earnings per share $ 0.60 $ 0.49 22%
First quarter 2013 adjusted earnings per share increased 22% over the same
period 2012, driven primarily by the share repurchases completed in 2012.
First quarter 2013 adjusted net income was slightly lower than first quarter
2012, driven by the sale of our ALS portfolio and other aircraft sales which
were completed since the first quarter of 2012, partially offset by income
generated from new aircraft purchases completed over the same period.
The net impact from aircraft sales and purchases over the past year also
resulted in decreases in basic lease rents and net spread in the first quarter
of 2013 as compared to the same period in 2012.
Revenue and Net Spread
Three months ended
March 31,
--------------------------------
% increase/
2013 2012 (decrease)
--------- --------- ------------
Lease revenue:
Basic lease rents $ 212.9 $ 235.1 (9%)
Maintenance rents and other receipts 13.9 17.6 (21%)
--------- --------- ------------
Lease revenue 226.8 252.7 (10%)
Net gain (loss) on sale of assets 11.0 (0.2) NA
Management fees and interest revenue 7.1 5.2 37%
Other revenue 0.9 0.2 350%
--------- --------- ------------
Total revenue $ 245.8 $ 257.9 (5%)
--------- --------- ------------
Basic lease rents were $212.9 million for the first quarter of 2013, a decrease
of 9% compared with the same period in 2012. Our average lease assets decreased
by 6% to $7.4 billion compared with the first quarter of 2012.
Basic rents, maintenance rents and other receipts, or total lease revenue, for
the first quarter of 2013 was $226.8 million, compared with $252.7 million for
the same period in 2012, a decrease of 10%.
Net gain on sale of assets for the first quarter of 2013 was $11.0 million,
compared to a $0.2 million loss for the same period in 2012.
Three months ended
March 31,
------------------------------------
% increase/
2013 2012 (decrease)
--------- --------- ------------
Basic lease rents $ 212.9 $ 235.1 (9%)
Interest on debt 58.6 (a) 64.0 (a) (8%)
Plus: mark-to-market of interest rate
caps 1.4 (3.3) NA
Interest on debt excluding the impact of
mark-to-market
of interest rate caps 60.0 60.7 (1%)
--------- --------- ------------
Net interest margin, or net spread $ 152.9 $ 174.4 (12%)
--------- --------- ------------
a. Interest on debt for the quarters ended March 31, 2013 and 2012 includes
$7.6 million and $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 $60.0 million in the first quarter of 2013,
a 1% decrease compared with the same period in 2012. Net spread in the first
quarter of 2013 decreased 12% compared with the same period in 2012.
Selling, General and Administrative expenses
Three months ended
March 31,
-------------------------------
% increase/
2013 2012 (decrease)
-------- --------- ------------
Mark-to-market of foreign currency hedges,
foreign
currency balances and other derivatives $ 0.6 $ (4.9) NA
Share-based compensation expenses 2.1 1.5 40%
Other selling, general and administrative
expenses 17.5 19.7 (11%)
-------- --------- ------------
Total selling, general and administrative
expenses $ 20.2 $ 16.3 24%
-------- --------- ------------
Other selling, general and administrative expenses were $17.5 million in the
first quarter of 2013, compared to $19.7 million in the same period in 2012. The
decrease was primarily due to lower legal fees and litigation expenses.
Effective Tax Rate
AerCap's blended effective tax rate during the first quarter of 2013 was 8.0%.
The blended effective tax rate in 2012 was 5.2%.
Financial Position
% increase/
March 31, March 31, (decrease) over
2013 2012 March 31, 2012
----------- ----------- ----------------
Total cash (incl. restricted) $ 663.7 $ 728.3 (9%)
Flight equipment held for operating
leases, net 7,455.1 7,974.7 (7%)
Total assets 8,649.4 9,255.9 (7%)
Debt 5,793.6 6,176.8 (6%)
Total liabilities 6,455.4 6,907.4 (7%)
Total equity 2,194.0 2,348.5 (7%)
Debt/equity ratio 2.6 2.6 0%
As of March 31, 2013, AerCap's portfolio consisted of 341 aircraft that were
either owned and consolidated, on order, under contract or letter of intent,
managed or owned by AerDragon, a non-consolidated joint venture.
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. 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 flows from our lease, debt
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 adjusted net income to net income for the three
month periods ended March 31, 2013 and 2012:
Three months ended
March 31,
------------------------------
% increase/
2013 2012 (decrease)
-------- -------- ------------
Net income $ 67.5 $ 65.0 4%
Plus: mark-to-market of interest rate caps,
net of tax (1.3) 2.8 NA
share-based compensation, net of tax 1.8 1.3 38%
-------- -------- ------------
Net income excluding the impact of mark-to-
market
of interest rate caps and share-based
compensation 68.0 69.1 (2%)
-------- -------- ------------
Net interest margin, or net spread (refer to second table under Revenue and Net
Spread 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.
Conference Call
In connection with the earnings release, management will host an earnings
conference call today, Tuesday, May 7, 2013 at 9:30 am Eastern Time / 3:30 pm
Central European Time. The call can be accessed live by dialing (U.S./Canada)
1-646-254-3363 or (International) +31-20-721-9158 and referencing code 9748551
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 7, 2013, at 12:30 pm
Eastern Time at The Waldorf Astoria (the Peacock Alley West Room), 301 Park
Avenue, New York. Doors will open at 12:00 pm.
To participate in either event, please register by emailing:
aercap(at)collegehill.com.
For further information, contact Peter Wortel: +31 20 655 9658
(pwortel(at)aercap.com)
or Mark Walter (College Hill): +44 (0)20 7866 7887 (aercap(at)collegehill.com).
About AerCap Holdings N.V.
AerCap is one of the world's leading aircraft leasing companies and has one of
the youngest fleets in the industry. AerCap is a New York Stock Exchange-listed
company (AER) and has its headquarters 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)
+------------------------------------------------------------------------------+
| March 31, 2013 December 31, 2012 March 31, 2012|
| ---------------- ------------------- ---------------+
| |
| |
|Assets |
| |
|Cash and cash |
|equivalents $ 375,417 $ 520,401 $ 424,694|
| |
|Restricted cash 288,293 279,843 303,652|
| |
|Trade receivables 8,854 6,636 10,494|
| |
|Flight equipment held |
|for operating leases, |
|net 7,455,140 7,261,899 7,974,747|
| |
|Net investment in direct |
|finance leases 17,782 21,350 24,103|
| |
|Notes receivables 77,840 78,163 4,282|
| |
|Prepayments on flight |
|equipment 63,296 53,594 102,741|
| |
|Investments 98,469 93,862 84,968|
| |
|Intangibles 15,497 18,100 26,700|
| |
|Inventory - - 8,864|
| |
|Derivative assets 14,648 9,993 18,629|
| |
|Deferred income taxes 79,811 79,726 86,771|
| |
|Other assets 154,326 157,851 185,254|
| ---------------- ------------------- ---------------+
|Total Assets $ 8,649,373 $ 8,581,418 $ 9,255,899|
| ---------------- ------------------- ---------------+
| |
| |
| |
| |
|Liabilities and Equity |
| |
| |
| |
|Accounts payable $815 $740 $674|
| |
|Accrued expenses and |
|other liabilities 95,972 91,951 82,994|
| |
|Accrued maintenance |
|liability 427,028 421,830 475,203|
| |
|Lessee deposit liability 84,827 86,268 104,263|
| |
|Debt 5,793,566 * 5,803,499 6,176,754|
| |
|Deferred revenue 40,617 39,547 46,645|
| |
|Derivative liabilities 12,532 14,677 20,900|
| ---------------- ------------------- ---------------+
|Total liabilities 6,455,357 6,458,512 6,907,433|
| |
| |
| |
|Ordinary share capital |
|?0.01 par value |
|(250,000,000 ordinary |
|shares authorized, |
|113,363,535 ordinary |
|shares issued and |
|outstanding) 1,193 1,193 1,570|
| |
|Additional paid-in |
|capital 929,707 927,617 1,341,670|
| |
|Treasury stock - - (100,000)|
| |
|Accumulated other |
|comprehensive loss (12,945) (14,401) (9,266)|
| |
|Accumulated retained |
|earnings 1,275,079 1,207,629 1,108,984|
| ---------------- ------------------- ---------------+
|Total AerCap Holdings |
|N.V. shareholders' |
|equity 2,193,034 2,122,038 2,342,958|
| |
|Non-controlling interest 982 868 5,508|
| ---------------- ------------------- ---------------+
|Total Equity 2,194,016 2,122,906 2,348,466|
| |
| |
| ---------------- ------------------- ---------------+
|Total Liabilities and |
|Equity $ 8,649,373 $ 8,581,418 $ 9,255,899|
| ---------------- ------------------- ---------------+
| |
| |
|* Includes $64.3 million of subordinated debt received from our joint venture |
|partners |
| |
| |
| |
|Supplemental information March 31, 2013 December 31, 2012 March 31, 2012|
| ---------------- ------------------- ---------------+
|Debt/equity ratio 2.6 2.7 2.6|
| |
|Debt/equity ratio |
|(adjusted for |
|subordinated debt) 2.5 2.6 2.5|
| |
| |
+------------------------------------------------------------------------------+
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, |
| |
| 2013 2012 |
| ------------- ------------+
| |
| |
|Revenues |
| |
|Lease revenue $ 226,841 $ 252,738|
| |
|Net gain (loss) on sale of assets 10,965 (219)|
| |
|Management fee revenue 5,636 4,530|
| |
|Interest revenue 1,470 622|
| |
|Other revenue 909 229|
| ------------- ------------+
|Total Revenues 245,821 257,900|
| |
| |
| |
|Expenses |
| |
|Depreciation 78,120 89,028|
| |
|Asset impairment 2,661 -|
| |
|Interest on debt 58,569 63,967|
| |
|Operating lease-in costs 550 2,522|
| |
|Leasing expenses 14,916 18,477|
| |
|Selling, general and administrative expenses 20,190 16,328|
| ------------- ------------+
|Total Expenses 175,006 190,322|
| |
| |
| ------------- ------------+
|Income from continuing operations before income |
|taxes |
|and income of investments accounted for under the |
|equity method 70,815 67,578|
| |
| |
| |
|Provision for income taxes (5,665) (5,878)|
| |
|Net income of investments accounted for under the |
|equity method 2,414 2,737|
| ------------- ------------+
| |
| |
|Net income 67,564 64,437|
| |
| |
| |
|Net (income) loss attributable to non-controlling |
|interest (114) 573|
| |
| |
| ------------- ------------+
|Net income attributable to AerCap Holdings N.V. $ 67,450 $ 65,010|
| ------------- ------------+
| |
| |
|Total earnings per share, basic and diluted $ 0.59 $ 0.46|
| |
| |
| |
|Weighted average shares outstanding, basic and |
|diluted 113,363,535 139,899,444|
| |
| |
+------------------------------------------------------------------------------+
AerCap Holdings N.V.
Unaudited Consolidated Statements of Cash Flows
(In thousands of U.S. Dollars)
+-----------------------------------------------------------------------------+
| Three months ended |
| March 31, |
| ----------------------+
| 2013 2012 |
| ----------- ----------+
| |
| |
| Net income $ 67,564 $ 64,437|
| |
| Adjustments to reconcile net income to net cash |
|provided by operating activities: |
| |
| Depreciation 78,120 89,028|
| |
| Asset impairment 2,661 -|
| |
| Amortization of debt issuance costs 7,610 7,115|
| |
| Amortization of intangibles 2,603 2,977|
| |
| Net (gain) loss on sale of assets (10,965) 219|
| |
| Mark-to-market of non-hedged derivatives (1,392) (3,784)|
| |
| Deferred taxes (293) 4,595|
| |
| Share-based compensation 2,090 1,465|
| |
| Changes in assets and liabilities: |
| |
| Trade receivables and notes receivable, net (1,895) 6,487|
| |
| Inventories - 5,089|
| |
| Other assets and derivative assets (7,315) (5,714)|
| |
| Other liabilities 9,001 (4,057)|
| |
| Deferred revenue 1,070 (1,349)|
| ----------- ----------+
| Net cash provided by operating activities 148,859 166,508|
| |
| |
| |
| Purchase of flight equipment (400,811) (268,647)|
| |
| Proceeds from sale/disposal of assets 148,000 107,967|
| |
| Prepayments on flight equipment (21,442) (8,542)|
| |
| Capital contributions (2,693) -|
| |
| Movement in restricted cash (8,450) (66,327)|
| ----------- ----------+
| Net cash used in investing activities (285,396) (235,549)|
| |
| |
| |
| Issuance of debt 278,500 354,590|
| |
| Repayment of debt (289,831) (289,106)|
| |
| Debt issuance costs paid (2,556) (5,926)|
| |
| Maintenance payments received 18,221 39,708|
| |
| Maintenance payments returned (10,694) (18,409)|
| |
| Security deposits received 1,946 4,105|
| |
| Security deposits returned (3,408) (1,925)|
| ----------- ----------+
| Net cash (used in) provided by financing activities (7,822) 83,037|
| |
| |
| |
| Net (decrease) increase in cash and cash equivalents (144,359) 13,996|
| |
| Effect of exchange rate changes (625) (383)|
| |
| Cash and cash equivalents at beginning of period 520,401 411,081|
| ----------- ----------+
| Cash and cash equivalents at end of period $ 375,417 $ 424,694|
| ----------- ----------+
| |
+-----------------------------------------------------------------------------+
For Investors:
Keith Helming
Chief Financial Officer
+31 20 655 9670
khelming(at)aercap.com
Peter Wortel
Investor Relations
+31 20 655 9658
pwortel(at)aercap.com
For Media:
Frauke Oberdieck
Corporate Communications
+31 20 655 9616
foberdieck(at)aercap.com
AerCap 2013 First Quarter Earnings:
http://hugin.info/149317/R/1699503/560975.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#1699503]
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Datum: 07.05.2013 - 13:01 Uhr
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