Aercap Holdings N.v. · NYSE:AER
Aercap — Q3 2009 Earnings Presentation
26 slides from Aercap's earnings presentation, Nov 6, 2009
Slide 1: Third Quarter 2009 Earnings Call
November 6, 2009 Third Quarter 2009 Earnings Call AerCap Holdings N.V.
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: Third Quarter 2009 Financial Highlights
Third Quarter 2009 Financial Highlights Net income was $39.2 million for third quarter 2009, exclusive of non-cash charges relating to mark-to-market of interest rate caps and share-based compensation Earnings per share for third quarter 2009 were $0.46 on the same basis Basic rents in third quarter
Slide 4: Genesis Transaction Update
Genesis Transaction Update Two of three regulatory approvals obtained (Germany and US received, awaiting Turkey) Initial comments received from SEC this week Transitional activities underway Closing most likely early 2010 (based on timing of SEC initial comments)
Slide 5: Aircraft and Engine Transactions During Third Quarter 2009
Aircraft and Engine Transactions During Third Quarter 2009 11 new aircraft lease agreements & letters-of-intent executed 8 aircraft and 14 engines delivered to lessees 6 aircraft and 3 engines purchased 3 aircraft and 3 engines sold from our owned and managed portfolios
Slide 6: Forward Order Aircraft
6 Forward Order Aircraft As of December 31, 2007 Delivered 2 Lease Agreements 25 Sold 7 Available 57 Options 5 LOI 4 Options (1) 5 Available 20 Sold 9 Lease Agreements 51 Delivered 15 As of December 31, 2008 4 Additional Purchases (2) Sold 9 Lease Agreements 42 Delivered 33 As of October 15, 2009 (1
Slide 7: Net Income
Net Income 3.0 8.2 Mark-to-market on interest rate caps 39.2** 0.7 35.5** 3Q 2009 3Q 2008 61.2* Net Income excluding above charges 1.7 Share-based compensation 51.3* Total Net Income ($ Million) * 3Q 2008 includes ~$30.6 million maintenance rents and end-of-lease compensation (net of tax) ** 3Q 2009
Slide 8: Net Income Analysis
Net Income Analysis (12.9) 0.0 12.9 Maintenance Revenue – Change in Est. (15.8) 35.5 51.3 Net Income (2.3) (0.3) 2.0 All Other (Incl. Taxes and Minority Interest) (4.6) 9.0 13.6 Gain from Sales (4.2) (4.3) (0.1) Impact from 2008 Defaults – Leasing Exp. (8.3) 0.0 8.3 Impact from 2008 Defaults – Maint
Slide 9: Earnings Per Share
Earnings Per Share $0.46** $0.72* Earnings Per Share excluding above charges 85.0 0.12 $0.60* 3Q 2008 85.0 Average Shares Outstanding (Million) 0.04 Adjusted for: mark-to-market on interest rate caps and share based compensation $0.42** Earnings Per Share 3Q 2009 * 3Q 2008 includes ~$0.36 per share
Slide 10: Total Revenue
Total Revenue 5.3 8.0 Management Fees and Interest Income 212.5 301.9 Total Revenue 4.4 3.6 Other Revenue 49.0 122.4 Sales Revenue 142.4 11.4* 132.9 35.0 Basic Lease Rents Maintenance/End-of-Lease Revenue 3Q 2009 3Q 2008 ($ Million) Basic rents up 7% over third quarter 2008 * Decrease in maintenance
Slide 11: Net Spread (Margin) – Third Quarter
Net Spread (Margin) – Third Quarter ($ Million) 23% 23% (30%) 7% % Change 114.6 93.3 Net Spread (Margin) 4,596 3,731 Average Lease Assets 10% 10% Annualized Margin (% Lease Assets) (27.8) (39.6) Less: Interest Expense* 142.4 132.9 Basic Lease Rents 3Q 2009 3Q 2008 * Excludes non-cash charges relatin
Slide 12: Sales
Sales 3Q 2009 5.2 13.2 30.6 49.0 9.0 3Q 2008 96.8 6.0 19.6 122.4 13.6 ($ Million) Aircraft Sales Engine Sales Part Sales Total Sales Total Gain from Sales (pre-tax)
Slide 13: Leasing Expenses and SG&A
Leasing Expenses and SG&A ($ Million) (17%) 27.8 33.4 SG&A (1%) Unfavorable 96% (23%) % Change 1.9 0.0 Other Expenses ** 43.6 43.1 Total Leasing Expenses and SG&A 10.6 5.4 Leasing expenses * 3.3 4.3 Operating lease in costs 3Q 2009 3Q 2008 * Details on following page ** Accrual of expenses relating
Slide 14: Leasing Expenses
Leasing Expenses ($ Million) 10.6 1.5 1.6 3.2 4.3* 3Q 2009 5.4 1.7 (0.8)** 4.4 0.1 3Q 2008 Lessor Maintenance Contributions AeroTurbine & Other Leasing Costs Total Leasing Expenses Normal Transition Costs Default Related Costs * Costs relate to airline defaults which occurred during 2008 (Gemini, In
Slide 15: Impact from Defaults & Restructuring
Impact from Defaults & Restructuring ($ Millions) Leasing Expenses Total Maintenance Rents Lost Basic Lease Rents (Net of Security Deposits) Accounting Specifics - Security deposits are applied against past-due rents, reducing impact from lost rents - Maintenance rents held are recorded as revenue u
Slide 16: Tax Rate
Tax Rate 0.4% Charge 2.0% Charge Tax Rate for Aircraft 36.4% Charge (56.8%) Income Tax Rate for Engine/Parts (0.3%) Income FY 2008 2.5% Charge Blended Tax Rate YTD 2009 Note: The tax income in 2008 resulted because the most significant portion of the charges relating to airline defaults and inventor
Slide 17: Total Assets and Number of Aircraft/Engines
Total Assets and Number of Aircraft/Engines ($ Million) Number of Aircraft Owned, On Order, Managed, Contracted, on LOI (units) 314 304 Number of Engines Owned, Contracted, on LOI (units) 74 85 3Q 2008 3Q 2009 22% increase over 3Q 2008 Decrease in units largely driven by sales of older aircraft and
Slide 18: Purchases of Aviation Assets
Purchases of Aviation Assets 41 27 Number of Aircraft Purchases (Units) 1,789 1,070 Aircraft Related 43 39 Engines/Airframes 1,832 1,109 Total Purchases Total 2009 Commitments YTD 2009 ($ Million)
Slide 19: Portfolio Management Metrics
Portfolio Management Metrics Owned Aircraft 46*** 65 New Leases for Used Aircraft Average Term (Months) YTD 2009 FY 2008 Lease Portfolio 98.0% 97.7% Utilization Rate 14.8% 16.9% Portfolio Yield* 135** 124 New Leases for New Aircraft * Lease revenue divided by average book value of flight equipment *
Slide 20: Cash
Cash $119 Operating Cash Flow for 3Q 2009 $324 Total Cash Balance at Sept. 30, 2009 (Incl. Restricted Cash) $203 Cash and Cash Equivalents at Sept. 30, 2009 3Q 2009 ($ million)
Slide 21: Debt and Equity
Debt and Equity ($ Million) 4.3% 1,151 3.1 to 1** 3,603 3Q 2008 3Q 2009 2.6% 1,335 3.4 to 1** Average Cost of Debt in Third Quarter* Equity Debt / Equity Ratio 4,593 Total Debt * Interest expense divided by average debt balance, excluding mark-to-market on interest rate caps ** Debt/Equity ratio is
Slide 22: 2009 Financial Outlook (AerCap Stand-Alone)
2009 Financial Outlook (AerCap Stand-Alone) Purchases of aviation assets in all of 2009 expected to be ~$1.8 billion 2009 basic lease revenue expected to increase ~11% over 2008 and net spread expected to increase ~25% 2009 sales revenue expected to be ~$240 million; Two of the six sales of forward
Slide 23: 2010 Financial Outlook (Combined Company)
2010 Financial Outlook (Combined Company) Purchases of aviation assets in all of 2010 expected to be ~$2.5 billion 2010 lease revenue including maintenance revenue expected to be ~$1.0 - $1.1 billion 2010 sales revenue expected to be ~$0.5 billion (AeroTurbine plus the sale of three forward order A3
Slide 24: Appendix
Appendix AERCAP
Slide 25: High Quality and Well Diversified Portfolio
High Quality and Well Diversified Portfolio 82% narrowbody – “Work Horses” of industry High share of liquid / remarket-able aircraft Average age of owned aircraft fleet 6.2 years 85 engines in portfolio, as of September 30, 2009, incl. 1 on order and 2 under purchase LOI CFM56 engines, one of the mo
Slide 26: Aircraft Portfolio Valuation
Aircraft Portfolio Valuation ($ Billion) 13% 13% 13% 13% Difference/ Appraisers Value 7.14 6.31 Total Aircraft Assets 0.17 0.15 B737 Classics and All Others (~2.0% of Portfolio) 6.79 0.18 6.00 0.16 A320 Family, A330s, & B737NGs (~95% of Portfolio; ...only ~11% > 8 Years of Age) B757s, B767s, A300s (