Fly Leasing — Investor Presentation (February 2016)
18 slides from Fly Leasing's investor presentation, Feb 4, 2016
Slide 1: Fly Leasing
FLY LEASING February 2016 “FLY Leasing
Slide 2: Disclaimers: Forward-Looking Statements
DISCLAIMERS Forward-Looking StatementsThis presentation contains certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by words such as “expects,” “intends,” “anticipates,” “plans,” “believes,” “s
Slide 3: FLY at a Glance
Buying Attractive Aircraft$629m acquired in 2015 77 aircraft – $2.5b Book Value1Leased to 42 airlines in 26 countries1 Decreasing Cost of DebtFocus on liability management Managed by Industry LeaderBBAM manages 400+ aircraft, established in 1989 Growing Insider OwnershipOwn 8% and announced intent t
Slide 4: Young and Attractive Portfolio
Reflects the sale of 18 aircraft completed as of September 30, 2015 and, on a pro forma basis, the sale of 39 additional aircraft contracted to be sold as if such sales had been consummated as of September 30, 2015. All Next Generation except for one B737-300 freighter.As of September 30, 2015. Pro
Slide 5: Diverse Group of Global Lessees
Note: As of September 30, 2015.Reflects the sale of 18 aircraft completed as of September 30, 2015 and, on a pro forma basis, the sale of 39 additional aircraft contracted to be sold as if such sales had been consummated as of September 30, 2015. 1% in Russia.9% in China. Diverse group of GLOBAL les
Slide 6: Drivers of Improving ROE
Drivers of improving roe Selling 57 aircraft – average age of 13 years Lowered cost of secured debt by 32 basis points in 12 months through Q3 2015 Reduced Adjusted SG&A by 19% in 12 months through Q3 20152 Acquired 32 aircraft for $1.6b with average age of two years since January 20141 Weighted by
Slide 7: Accelerates Return of Capital to Shareholders
Accelerates return of capital to shareholders $100m stock repurchase program approved by Board in November 2015$75m Modified Dutch Auction Tender Offer completed in December 2015 at $13.95 / share$25m open market repurchase program approvedReplaces dividend and accelerates return of capital (2.4x an
Slide 8: Share Repurchases Are Accretive
Share repurchases are accretive Pro Forma EPS1 Pro Forma Book Value / Share1 5% 23% See Appendix for calculations.
Slide 9: Update on Aircraft Sales
Update on aircraft sales 2013 2014 Sold / Contracted to Sell 2015 Aircraft Sold 10 8 57 Average Age 14 yrs 13 yrs 13 yrs Aircraft Sales Recently sold / contracted to sell 57 aircraft with an average age of 13 yearsThree closed in 1H 201515 closed in Q326 closed in Q4Active market for selling mid-lif
Slide 10: $629m of Acquisitions Completed
$629m of acquisitions completed Ample liquidity:Over $800m in cash and unencumbered assets to invest in younger aircraftAttractive financing availableAcquisitions immediately accretive to bottom line 2013 2014 20152 Aircraft Acquired 14 22 10 Average Age in Years1 2 3 2 Total Acquisition Costs $642m
Slide 11: Enhancing Portfolio Metrics
Average Fleet Age1 Average Remaining Lease Term1 Weighted by net book value of flight equipment held for operating lease, net.Reflects the sale of 18 aircraft completed as of September 30, 2015 and, on a pro forma basis, the sale of 39 additional aircraft contracted to be sold as if such sales had b
Slide 12: Actively Managing Liabilities and Expenses
Cost of Secured Debt1 Represents the contractual interest rates and effect of derivative instruments and excludes the amortization of debt discounts and debt issuance costs. See Capital Structure & Liquidity Summary in the Appendix. ACTIVELY MANAGING LIABILITIES and Expenses 2015 Milestones Reduced
Slide 13: SG&A Costs Continue to Decline
Adjusted SG&A1 as a % of Total Revenue Non-GAAP measure. See Appendix. SG&A Costs continue to decline $5m annual management fee reduction providing operating leverage 19%
Slide 14: Major Transformation Underway
Major Transformation Underway
Slide 15: Appendix
APPENDIX
Slide 16: Adjusted SG&A
STED SG&A Sin thousands. 032015 Q32014 Selling, General & Administrative 7,795 9,876 Less: Share-Based Compensation Withholding Taxes Paid Foreign Exchange Loss Adjusted Selling, General & Administrative Total Revenue Adjusted SG&A as a % of Total Revenue 73% 9.0% Fly PAGE 15, Leasing
Slide 17: Capital Structure & Liquidity Summary
Capital Structure Represents the contractual interest rates and effect of derivative instruments and excludes the amortization of debt discounts and debt issuance costs.In April 2015, FLY re-priced its 2012 Term Loan reducing the margin by 0.75% and the LIBOR floor by 0.25%.The facility was terminat
Slide 18: Pro Forma EPS & Book Value
Pro Forma EPS & book value Pro Forma Book Value Pro Forma EPS