Aercap Holdings N.v. · NYSE:AER
Aercap — Q2 2012 Earnings Presentation
22 slides from Aercap's earnings presentation, Aug 7, 2012
Slide 1: AerCap Holdings N.V. Second Quarter 2012 Earnings Call
AerCap Holdings N.V. Second Quarter 2012 Earnings Call August 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 statements”. In some cases, forward-looking statements can be
Slide 3: Second Quarter 2012 Financial Highlights
Second Quarter 2012 Financial Highlights Adjusted net income was $59.2 million for second quarter 2012 (as compared to $72.8 million in second quarter 2011). Adjusted earnings per share was $0.43 for second quarter 2012 (as compared to $0.49 in second quarter 2011). Net interest margin (net spread)
Slide 4: Net Income
Net Income ($ Millions) 2Q 2011 2Q 2012 H1 2011 H1 2012 Reported Net Income 30.8 29.6 102.9 94.6 Adjusted for: Loss from mark-to-market on interest rate 18.9 7.0 20.3 9.8 caps * Adjusted for: one-time charge for the buy-out of the 21.4 - 21.4 - Genesis portfolio servicing rights* Adjusted for: non-r
Slide 5: Earnings Per Share
Earnings Per Share 2Q 2011 2Q 2012 H1 2011 H1 2012 Earnings Per Share $0.21 $0.21 $0.69 $0.68 Adjusted for: mark-to-market on interest rate caps, share based compensation, Genesis portfolio servicing buy-out & non recurring charges for prepayments of secured 0.28 0.22 0.30 0.24 loans Adjusted Earnin
Slide 6: Total Revenue
Total Revenue ($ Millions) 2Q 2011 2Q 2012 Basic Lease Rents 238.4 234.9 Maintenance Rents and 26.1 12.5 Other Receipts Management Fees and 5.7 4.5 Interest Income Other Revenue 0.4 0.3 Net Gain on Aircraft Sales 6.5 0.7 Total Revenue 277.1 252.9 6
Slide 7: Net Interest Margin (Net Spread) - Second Quarter 2012
Net Interest Margin (Net Spread) - Second Quarter 2012 ($ Millions) 2Q 2011 2Q 2012 % Change Net Interest Margin (Net Spread)* 177.3 173.1 (2%) Average Lease Assets 8,034 7,988 (1%) Annualized Margin (% Lease Assets)** 8.83% 8.67% * Net Interest Margin (Net Spread) is basic lease rents less interest
Slide 8: Aircraft Sales
Aircraft Sales AerCap continues to optimize its portfolio through the sale of aircraft: During the first half of 2012, we sold two A330 aircraft (including one through the sale of an equity interest), one A320 aircraft, and two B757 aircraft. Going forward, we expect to continue to pursue our strate
Slide 9: Leasing Expenses
Leasing Expenses ($ Millions) 2Q 2011 2Q 2012 Default Related 4.3 8.7 Normal Transition Costs 4.4 3.5 Lessor Maintenance 8.2 1.9 Contributions Other Leasing Costs 1.8 3.8 Total Leasing Expenses 18.7 17.9 9
Slide 10: SG&A
SG&A ($ Millions) 2Q 2011 2Q 2012 Aircraft Management Fees* 25.8 0.5 Mark-to-market of: foreign currency hedges, foreign (0.4) 1.8 currency cash balances, and other derivatives Share-based compensation 1.7 1.9 expenses Other Selling, General and 22.3 17.5 Administrative expenses Total Selling, Gener
Slide 11: Impact from Defaults and Restructuring
Impact from Defaults and Restructuring 2Q 2011 2Q 2012 H1 2011 H1 2012 ($ Millions) Default and Restructuring Related Lost Basic Lease Rents (Net of (5.0) (4.2) (1.9) (7.5) Security Deposits) Maintenance Rents Held 4.6 0.3 15.3 8.9 Default Related Leasing (4.3) (8.7) (9.0) (21.7) Expenses Total Impa
Slide 12: Tax Rate
Tax Rate FY 2012 FY 2011 Estimate Blended Tax Rate* 6.7% Charge 8.0% Charge * The blended effective tax rate in any year is impacted by the source and amount of earnings among AerCap’s different tax jurisdictions. 12
Slide 13: Total Assets and Number of Aircraft
Total Assets and Number of Aircraft Q2 2011 Q2 2012 ($ Millions) 9,571 9,289 10,000 8,000 3% decrease Total Assets Owned and on 6,000 over 2Q 2011 (Mainly driven by the Balance Sheet sale of AeroTurbine) 4,000 2,000 0 The increase of 22 aircraft is driven by the Number of Aircraft American Airlines
Slide 14: Committed Aircraft Purchases
Committed Aircraft Purchases ($ Millions) H1 2012 Remaining Committed 2012* 2012 Aircraft Purchases 518 579 1,097 Number of Aircraft 10 10 20 Purchases (Units) * Includes purchases of seven additional aircraft as part of the American Airlines Purchase- Leaseback transaction (subject to confirmation
Slide 15: Portfolio Management Metrics Owned Aircraft
Portfolio Management Metrics Owned Aircraft Lease Portfolio FY 2011 H1 2012 Utilization Rate* 98.4% 97.6% Portfolio Yield** 13.2% 12.3% Average Term (Previous 12 Months) – New Leases for New Aircraft (Months) 137 ***138 – New Leases for Used Aircraft (Months) 74 **** 64 * Days utilized weighted by b
Slide 16: Cash
Cash ($ Millions) Q2 2012 Cash and Cash Equivalents at June 30, 2012 474.3 (Excl. Restricted Cash) Total Cash Balance at June 30, 2012 765.1 (Incl. Restricted Cash) Operating Cash Flow for Q2 2012 157.9 16
Slide 17: Debt and Equity
Debt and Equity ($ Millions) 2Q 2011 2Q 2012 Total Debt at Quarter-End 6,519 6,225 Average Cost of Debt (including ~0.4% 3.7% 4.0% relating to amortization of debt issuance costs)* Equity 2,316 2,315 Debt / Equity Ratio 2.8 to 1 2.7 to 1 * Interest expense divided by average debt balance, excluding
Slide 18: 2012 Financial Outlook
2012 Financial Outlook Notwithstanding continued uncertainties throughout the global markets, AerCap intends to grow EPS based on our committed and new aircraft purchases coupled with the completed and the recently announced share repurchases. To that end, previous guidance provided for the 2012 ful
Slide 19: Appendix
Appendix * (AERCAP 19
Slide 20: Aircraft Transactions Year to Date June 2012
Aircraft Transactions Year to Date June 2012 32 aircraft lease agreements & letters-of-intent executed 17 aircraft delivered to lessees 10 aircraft purchased & contracts signed for a further 5 aircraft purchases 5 aircraft sold from our owned and 5 from managed portfolios 20
Slide 21: High Quality and Well-Diversified Portfolio
High Quality and Well-Diversified Portfolio Aircraft Portfolio as of June 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 body – “Work Airbus
Slide 22: Indebtedness as of June 30, 2012
Indebtedness as of June 30, 2012 Outstanding Commitment Outstanding Availability ($million) ($m) ($m) ($m) ECA Guaranteed Financings 1,857 1,588 269 UBS Revolving Credit Facility 800 484 316 SkyFunding B737 Acquisition Facilities 395 361 34 Unsecured Notes 300 300 – ALS I 557 557 – ALS II 635 635 –