Aercap Holdings N.v. · NYSE:AER
Aercap — Q4 2013 Earnings Presentation
23 slides from Aercap's earnings presentation, Feb 20, 2014
Slide 1: Fourth Quarter 2013 Earnings Call
AerCap Holdings N.V. Fourth Quarter 2013 Earnings Call » FEBRUARY 20, 2014 1
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: 2013 Highlights
2013 Highlights • Adjusted net income was $74.9 million for 4Q 2013, and $299.9 million for the full year 2013. • Adjusted earnings per share were $0.66 for 4Q 2013, and $2.64 for the full year 2013, an increase of 35% over the full year 2012. • Key Highlights: • On December 16, 2013 we entered into
Slide 4: Net Income
Net Income ($ Millions) 4Q 2013 4Q 2012 FY 2013 FY 2012 Reported Net Income 65.6 11.2 292.4 163.7 Adjusted* for: mark-to-market on interest rate caps (1.9) - (10.2) 12.5 cost of share-based compensation 2.1 1.7 8.1 6.3 non-recurring charges for prepayment of secured - - - 20.9 loans loss on sale of
Slide 5: Basic Earnings Per Share
Basic Earnings Per Share 4Q 2013 4Q 2012 FY 2013 FY 2012 Earnings Per Share $0.58 $0.09 $2.58 $1.24 Adjusted for: mark-to-market on interest rate caps, share based compensation, non- recurring charges for the prepayment of secured loans, loss on sale of the ALS portfolio and ILFC transaction expense
Slide 6: Revenue
Revenue ($ Millions) 4Q 2013 4Q 2012 FY 2013 FY 2012 Basic Lease Rents* 234.9 222.2 901.6 931.9 Maintenance Rents and Other Receipts 26.6 11.2 74.5 65.3 Net Gain on Sale of Assets** 9.6 (47.5) 41.9 (46.4) Management Fees and Interest Revenue 6.5 6.0 26.2 19.7 Other Revenue*** 0.2 0.3 5.9 2.0 Total R
Slide 7: Net Interest Margin (Net Spread)
Net Interest Margin (Net Spread) ($ Millions) 4Q 2013 4Q 2012 FY 2013 FY 2012 Net Interest Margin (Net Spread)* 175.7 159.9 663.6 684.2 Average Lease Assets 8,058 7,539 7,750 7,864 Annualized Margin % 8.7% 8.5% 8.6% 8.7% * Net Interest Margin (Net Spread) is basic lease rents less interest expense,
Slide 8: Sales of Aircraft
Sales of Aircraft AerCap continues to optimize its portfolio through the sale of aircraft: In 2013: we sold 28 aircraft including 14 aircraft from our owned portfolio consisting of three A330s, ten B737s and one MD-11 freighter aircraft. We also sold 14 aircraft from our managed portfolio consisting
Slide 9: Other Expenses and Taxes
Other Expenses and Taxes ($ Millions) 4Q 2013 4Q 2012 FY 2013 FY 2012 Leasing Expenses* 17.7 12.5 48.5 72.1 SG&A 21.9 23.1 89.1 83.4 Impairment** 14.3 5.2 26.2 12.6 Transaction Expenses*** 10.4 - 11.0 - FY 2013 FY 2012 Blended Tax Rate**** 8.4% 5.2% * Decrease in full year 2013 leasing expenses was
Slide 10: Cash
Cash ($ Millions) 2013 2012 Cash and Cash Equivalents at December 31* 295.5 520.4 (Excl. Restricted Cash) Total Cash Balance at December 31** 563.4 800.2 (Incl. Restricted Cash) Operating Cash Flow for the Full Year 655.1 625.8 ** The decrease in Cash and Cash Equivalents in 2013 is primarily caused
Slide 11: Debt and Equity
Debt and Equity ($ Millions) 4Q 2013 4Q 2012 Total Debt at Quarter-End 6,237 5,803 Average Cost of Debt (including ~0.4% relating 3.9% 4.2% to amortization of debt issuance costs)* Equity 2,429 2,123 Debt / Equity Ratio 2.6 to 1 2.7 to 1 Although our total assets increased with $0.8 billion (~10%) y
Slide 12: ILFC Transaction Update
fn a AERCAP 12 www.aercap.com Confidential property of the company, not for disclosure or use without permission
Slide 13: Transaction Update
Transaction Update • Integration activities underway: – Engaged third party advisor with significant integration experience; – Key AerCap resources on the ground full-time in Los Angeles; – Focused on day one requirements, asset transfers, IT infrastructure and data migration; – Functional integrati
Slide 14: Supplemental Information
Supplemental Information 14
Slide 15: Portfolio Development
Portfolio Development 2011 2012 2013 Total Assets ($ billion) 9.1 8.6 9.4 Average Age of Owned Aircraft (Years) 5.5 5.1 5.4 No. Owned Aircraft Sold 21 59 14 Book Value of Owned Aircraft Sold ($ billion) 0.3 1.4 0.6 Completed Purchases ($ billion) 0.9 1.1 1.8 Committed Purchases Outstanding* ($ billi
Slide 16: Aircraft Transactions Full Year 2013
Aircraft Transactions Full Year 2013 • 79 lease agreements executed • 52 aircraft delivered to lessees • 38 aircraft purchased • 14 aircraft sold from our owned portfolio and 14 from our managed portfolio 16
Slide 17: Total Assets and Number of Aircraft
Total Assets and Number of Aircraft 2013 2012 9,446 10,000 8,633 ($ Millions) 8,000 Total Assets 6,000 Owned and on Balance Sheet 4,000 2,000 0 Number of Aircraft Owned, On Order, Managed, AerDragon, Contracted and LOI (units) 378 333 17
Slide 18: High Quality and Well-Diversified Portfolio
High Quality and Well-Diversified Portfolio Aircraft Portfolio as of December 31, 2013 Number of Aircraft Number of % Net Book Managed & Aircraft on under Sale / Total Owned Value AerDragon Order Purchase Aircraft Aircraft Aircraft Contract Airbus A300 Freighter 0 0.0% 1 0 0 1 Airbus A319 24 7.4% 6
Slide 19: Committed Aircraft Purchases
Committed Aircraft Purchases Committed Committed FY 2013 2014 & 2014 Beyond* Aircraft Purchases ($ Millions) 1,818 699 3,481 Number of Aircraft Purchases (Units) 38 10 44 * Consists of $0.7 billion in 2014, $0.8 billion in 2015, and $2.0 billion between 2016 and 2018. Includes five Boeing 737- 800 p
Slide 20: Portfolio Management Metrics for Owned Aircraft
Portfolio Management Metrics for Owned Aircraft Lease Portfolio FY 2013 FY 2012 Utilization Rate* 99.5% 98.5% Portfolio Yield** 12.6% 12.7% Average Lease Term (Previous 12 Months) • New Leases for New Aircraft (Months) 163*** 149 • Leases for Used Aircraft (Months) 57**** 47 * Utilization rate weigh
Slide 21: Leasing Expenses
Leasing Expenses ($ Millions) 4Q 2013 4Q 2012 FY 2013 FY 2012 Default Related* 12.3 3.0 15.5 41.2 Normal Transition Costs 2.6 2.8 16.4 12.2 Lessor Maintenance 0.1 4.5 10.8 9.3 Contributions Other Leasing Costs 2.7 2.2 5.8 9.4 Total Leasing Expenses 17.7 12.5 48.5 72.1 *Default costs incurred in 2013
Slide 22: Impact from Defaults and Restructuring 2011-2013
Impact from Defaults and Restructuring 2011-2013 ($ Millions) FY 2013 FY 2012 FY 2011 Total Default and Restructuring Related Lost Basic Lease Rents (0.2) (10.9) (5.4) (16.5) (Net of Security Deposits) Default Related Leasing Expenses (10.3) (20.5) 33.2 2.4 (Net of Maintenance Rents Held) Impairment
Slide 23: SG&A
SG&A ($ Millions) 4Q 2013 4Q 2012 FY 2013 FY2012 Mark-to-market of foreign currency hedges, foreign - 0.1 0.1 (2.9) currency cash balances and other derivatives Share-based compensation 2.4 1.9 9.3 7.5 expenses Other selling, general and 19.5 21.1 79.7 78.8 administrative expenses Total Selling, Gen