Aercap Holdings N.v. · NYSE:AER
Aercap — Q2 2007 Earnings Presentation
19 slides from Aercap's earnings presentation, Aug 7, 2007
Slide 1: AerCap Holdings N.V. Second Quarter 2007 Earnings Call
AerCap Holdings N.V. Second Quarter 2007 Earnings Call August 7, 2007
Slide 2: Forward Looking Statements & Safe Harbor
Forward Looking Statements & Safe Harbor This presentation 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 th
Slide 3: Highlights
Highlights Net income was $58.2 million for second quarter 2007, exclusive of a $24.0 million after-tax charge relating to our issuance of securitized bonds and was $34.2 million including the charge Earnings per share for second quarter 2007 was $0.68 excluding the charge ($0.40 EPS including t
Slide 4: Second Quarter Net Income
Second Quarter Net Income ( $ Million) 67% increase over 80.0 prior year excluding 34.2 refinancing charge 60.0 34.9 58.2 After-tax 40.0 charge relating to debt 20.0 refinancing 0.0 (24.0) -20.0 -40.0 2Q 2006* 2Q 2007 * 2006 results include two months of AeroTurbine 4
Slide 5: Earnings Per Share
Earnings Per Share 2Q 2006* 2Q 2007 Earnings Per Share $0.45 $0.40** ** $0.68 excluding refinancing charge Average Shares 78.2 85.0 Outstanding (Million) * 2006 results include two months of AeroTurbine 5
Slide 6: Net Income Analysis
Net Income Analysis ($ Million) Net Income Components 2Q 2006 2Q 2007 ALS Debt Refinancing - $(24.0) Impact from Mark-to-Market on Derivatives $9.1 8.3 Shared-based Compensation (1.2) (1.9) All Other Profit 27.0 51.8 92% increase Total Net Income $34.9 $34.2 6
Slide 7: Revenue Breakdown
Revenue Breakdown ($ Million) 2Q 2006* 2Q 2007 Lease Revenue 112 141 Sales Revenue 39 84 Management Fees, Interest Income 12 22 and Other Revenue Total Revenue 163 247 % Total Revenue Increase over 2006 51% * 2006 results include two months of AeroTurbine 7
Slide 8: Sales Revenue
Sales Revenue Optimizing Our Portfolio with Sales ($ Million) 2Q2006* 2Q 2007 Aircraft Sales 21 59 2Q 2007 (3 aircraft) Engine Sales 8 5 1 A321 - 200 1 B737 - 400 Part-Out Sales 10 20 1 B737 - 200 Total 39 84 * 2006 results include two months of AeroTurbine 8
Slide 9: Lease Revenue
Lease Revenue ($ Million) 2Q 2006* 1Q 2007 2Q 2007 Basic Rents $96.6 $118.6 $124.5 Maintenance Rents 5.6 11.9 8.6 End-of-Lease Compensation 10.0 9.2 7.6 Total Lease Revenue $112.2 $139.7 $140.7 * 2006 results include two months of AeroTurbine 9
Slide 10: Leasing Expenses
Leasing Expenses ($ Million) 2Q 2006* 1Q 2007 2Q 2007 Lessor Contributions / Overhauls $1.4 $0.2 $3.2 Transition Costs 3.1 1.8 3.4 Repossession Expenses 0.1 0.4 1.5 All Other 2.5 1.6 1.6 Total Leasing Expenses $7.1 $4.0 $9.7 * 2006 results include two months of AeroTurbine 10
Slide 11: Expenses & Productivity
Expenses & Productivity ($ Million) 2Q 2006* 2Q 2007 % Change Expenses** 59 79 34% Revenues 163 247 51% Expenses as % of Revenue 36% 32% * 2006 results include two months of AeroTurbine ** Includes depreciation, lease expenses, and SG&A expenses 11
Slide 12: Tax Rate
Tax Rate 2Q 2006* 2Q 2007 Tax Rate for Aircraft 18.2% 11.8% Tax Rate for Engine/Parts 38.6% 34.8% Blended Tax Rate 16.0% 14.1% * 2006 results include two months of AeroTurbine 12
Slide 13: Total Assets and Number of Aircraft/Engines
Total Assets and Number of Aircraft/Engines 2Q 2006 2Q 2007 ($ Million) 4,411 23% increase over second 4,000 3,578 quarter 2006 Total Assets 3,000 Owned and on Balance Sheet 2,000 1,000 0 Number of Aircraft Owned, On Order, Managed, Contracted, on LOI 324 346 Number of Engines Owned, Contracted, on
Slide 14: Purchases of Aviation Assets
Purchases of Aviation Assets ($ Million) 1st Half 2007 Committed 2007 Aircraft Related 406 732 Engines/Airframes 53 67 Total Purchases 459 799 Number of Aircraft 28 44 Purchases (Units) 14
Slide 15: Portfolio Management Metrics
Portfolio Management Metrics Aircraft Lease Portfolio FY 2006 1H 2007 Utilization Rate 98.9% 97.4% Portfolio Yield* 17% 18% Average Term (Months) – New Aircraft Leases 103 100 ** – Used Aircraft Leases 59 72 2007 Lease Revenue Already Contracted as a % of 2006 Actual Lease Revenue: ~124% * Lease rev
Slide 16: Funding/Access to Capital
Funding/Access to Capital Amount of Bond Issuance in 2Q 2007 $1.66 Billion Available Lines of Credit at June 30, 2007 ~$1.9 Billion Cash Balance at June 30, 2007* $250 Million Operating Cash Flow in 2Q 2007 $77 Million * Free cash only (excludes restricted cash balance) 16
Slide 17: Debt
Debt ($ Million) Total Debt at June 30, 2007 2,978 Average Cost of Debt in 2Q 2007* 6.9% Debt/Equity Ratio at June 30, 2007 3.5 to 1 * Interest expense divided by average debt balance, excluding refinancing costs and mark-to-market on derivatives 17
Slide 18: 2007 Outlook
2007 Outlook Contracted purchases for 2007 on track for amount equal to that achieved in 2006 2007 sales revenue as a percentage of total revenue is expected to be slightly higher than 2006 2007 cost of debt expected to be lower than 2006, excluding one-off costs from refinancing and mark-to-m
Slide 19: Highlights
Highlights Net income was $58.2 million for second quarter 2007, exclusive of a $24.0 million after-tax charge relating to our issuance of securitized bonds and was $34.2 million including the charge Earnings per share for second quarter 2007 was $0.68 excluding the charge ($0.40 EPS including t