Aercap Holdings N.v. · NYSE:AER
Aercap — Q3 2012 Earnings Presentation
24 slides from Aercap's earnings presentation, Nov 7, 2012
Slide 1: Third Quarter 2012 Earnings Call
AerCap Holdings N.V. Third Quarter 2012 Earnings Call November 7,, 2012
Slide 2: Disclaimer Incl. Forward Looking Statements & Safe Harbor
Disclaimer Incl. 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 g statements”. In some cases,, forward-looking g statements
Slide 3: Third Quarter 2012 Financial Highlights
Third Q Quarter 2012 Financial Highlights g g Third quarter 2012 reported net income was $57.9 million, compared with a $7.1 million loss for the same period in 2011. Third quarter 2011 included a $53.5 million one-time charge relating to discontinued operations. Third quarter 2012 reported basic
Slide 4: Third Quarter & Year to Date 2012 Financial Highlights
Third d Qua Quarter te & Year ea to Date ate 2012 0 Financial a c a Highlights g g ts Committed purchases of aviation assets delivered or scheduled for delivery in 2012 are $1,101 $1 101 million, million of which $743 million closed in the first nine months of 2012. The total amount of aircraft ac
Slide 5: Net Income
Net Income ($ Millions) 3Q 2011 3Q 2012 Reported Net (Loss)/ Income (7.1) 57.9 Adjusted for: Loss from mark mark-to-market to market on 27 6 27.6 27 2.7 interest rate caps * Adjusted for: one time items relating to di discontinued ti d operations* ti * 53 5 53.5 - Adjusted for: cost of share-based 1
Slide 6: Earnings Per Share
Earnings Per Share 3Q 2011 3Q 2012 Earnings g Per Share ($0.05)) ($ $0.45 $ Adjusted for: mark-to-market on interest rate caps, share based compensation ti and d one-time ti charges h relating to discontinued operations 0.56 0.03 Adjusted Earnings Per Share* $0.51 $0.48 Average Shares Outstanding 14
Slide 7: Total Revenue
Total Revenue ($ Millions) 3Q 2011 3Q 2012 Basic Lease Rents 238.6 239.5 Maintenance Rents and Other 27.0 24.1 Receipts Management g Fees and Interest 53 5.3 41 4.1 Income Other Revenue 1.4 1.2 Net Gain on Aircraft Sales 4.0 0.6 Total Revenue* 276.3 269.5 * Decrease in 3Q 2012 total revenue was driv
Slide 8: Net Interest Margin (Net Spread)
Net Interest Margin (Net Spread) (($ Millions)) 3Q 2011 3Q 2012 % Change g Net Interest Margin g (Net ( Spread)* p ) 182.3 176.5 ((3%)) Average Lease Assets 7,955 8,046 1% Annualized Margin (% Lease Assets)** 9.17% 8.77% * Net Interest Margin (Net Spread) is basic lease rents less interest expense e
Slide 9: Aircraft Sales
Aircraft Sales AerCap continues to optimize its portfolio through the sale of aircraft: Year to date, we have sold three A330 aircraft (including one through the sale of an equity interest), two A320 aircraft, and two B757 aircraft. Going forward, we expect to continue to pursue our strategy of oppo
Slide 10: Leasing Expenses
Leasing Expenses ($ Millions) 3Q 2011 3Q 2012 Default & Restructuring Related* Related 78 7.8 16 4 16.4 Normal Transition Costs 2.0 2.9 Lessor Maintenance Contributions 1.6 1.8 Other Leasing Costs 2.1 2.1 Total Leasing Expenses 13.5 23.3 * 2012 default and restructuring related costs were due to def
Slide 11: SG&A
SG&A ($ Millions) 3Q 2011 3Q 2012 Mark-to-market of: foreign currency hedges, foreign g currency y cash balances,, and other 11.4 - derivatives Share-based compensation expenses 1.8 1.8 Other Selling, General and Administrative 18.8 20.5 expenses Total Selling, General and Administrative 32.0 22.3 e
Slide 12: Impact from Defaults and Restructurings
Impact from Defaults and Restructurings 3Q 2011 3Q 2012 YTD 2011 YTD 2012 ($ Millions) Default and Restructuring Related Lostt Basic L B i Lease L Rents R t (Net (N t off (0 3) (0.3) (2 8) (2.8) (2 7) (2.7) (10 3) (10.3) Security Deposits) Maintenance Rents Held 11.4 8.5 43.1 17.4 Impairment - (6.5)
Slide 13: Tax Rate
Tax Rate FY 2012 FY 2011 Estimate Blended Tax Rate* 6.7% Charge 5.5% Charge * The blended effective tax rate in any year is impacted by the source and amount of earnings among AerCap’s diff different t tax t jjurisdictions. i di ti 13
Slide 14: Total Assets and Number of Aircraft
Total Assets and Number of Aircraft Q3 2011 Q3 2012 ($ Millions) 9 553 9,553 10,000 9,134 8,000 , 4% decrease Total Assets 6,000 over 3Q 2011 Owned and on (Mainly driven by the Balance Sheet sale l off AeroTurbine, A T bi 4,000 which was partially offset by new aircraft deliveries) 2,000 0 The decre
Slide 15: Committed Aircraft Purchases
Committed Aircraft Purchases YTD 2012 Remaining Committed 2012 2012 Aircraft Purchases 743 358 1,101 ($ Millions) Number of Aircraft 14 6 20 P Purchases h (Units) (U it ) 15
Slide 16: Portfolio Management Metrics Owned Aircraft
Portfolio Management g Metrics Owned Aircraft Lease Portfolio FY 2011 YTD 2012 Utili ti Utilization R Rate* t * 98 4% 98.4% 98 1% 98.1% Portfolio Yield** 13.2% 12.8% Average Term (Previous 12 Months) – New Leases for New Aircraft (Months) 137 ***139 – New Leases for Used Aircraft (Months) 74 **** 65
Slide 17: Cash
Cash ($ Millions) Q3 2012 Cash and Cash Equivalents at September 30, 2012 309.7 (Excl. Restricted Cash) Total Cash Balance at September 30, 2012 620.0 (Incl. Restricted Cash) Operating Cash Flow for Q3 2012 187.4 17
Slide 18: Debt and Equity
Debt and Equity ($ Millions) 3Q 2011 3Q 2012 Total Debt at Quarter-End 6,201 , 6,131 , Average Cost of Debt (including ~0.4% 3.6% 4.0% relating to amortization of debt issuance costs)* Equity** 2,245 2,218 Debt / Equity Ratio 2.8 to 1 2.8 to 1 * Interest expense p divided by y average g debt balance
Slide 19: 2012 Financial Outlook
2012 Financial Outlook Set forth below are the anticipated drivers for AerCap’s 2012 financial performance, which are subject to change. 2012 committed aircraft purchases are ~$1.1 billion. 2012 basic lease revenue expected to be comparable with 2011. 2012 maintenance contribution (maintenance
Slide 20: 2013 Financial Outlook
2013 Financial Outlook Set forth below are the estimated drivers for AerCap’s 2013 financial performance, which are subject to change. 2013 expected aircraft purchases are ~$1.2 billion, including purchases of 18 aircraft as part of the American Airlines Purchase-Leaseback transaction (12 of which
Slide 21: Appendix
Appendix * (AERCAP 21
Slide 22: Aircraft Transactions Year to Date September 2012
Aircraft Transactions Year to Date September 2012 38 aircraft lease agreements g & letters-of-intent executed 25 aircraft delivered to lessees 14 aircraft purchased & contracts/ letters of intent signed for a further 7 aircraft purchases 9 aircraft sold or contracted for sale from our owned
Slide 23: High Quality and Well-Diversified Portfolio
High Quality and Well- Well-Diversified Portfolio Aircraft Portfolio as of September 30, 2012 Aircraft under Sale Number Number of / Purchase of Owned % Net Book Managed Aircraft on Contract or Total Aircraft Value Aircraft Order LOI Aircraft Airbus A300 Freighter 1 0.3% 0 0 0 1 74% narrow bodyy –
Slide 24: Indebtedness as of September 30, 2012
Indebtedness as of September 30, 2012 Outstanding Commitment Outstanding Availability ($ illi ) ($million) ($ ) ($m) ($ ) ($m) ($ ) ($m) ECA Guaranteed Financings 1,716 1,550 166 UBS Revolving Credit Facility 800 544 256 SkyFunding B737 Acquisition Facilities 388 388 – Unsecured Notes 300 300 – ALS