Aercap Holdings N.v. · NYSE:AER
Aercap — Q4 2009 Earnings Presentation
25 slides from Aercap's earnings presentation, Feb 24, 2010
Slide 1: Fourth Quarter 2009 Earnings Call
February 24, 2010 Fourth Quarter 2009 Earnings Call AerCap Holdings N.V.
Slide 2: Forward Looking Statements & Safe Harbor
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 identified by th
Slide 3: Fourth Quarter 2009 Highlights
Fourth Quarter 2009 Highlights Net income was $40.3 million for fourth quarter 2009, exclusive of the impact relating to mark-to-market of interest rate caps and share-based compensation Earnings per share for fourth quarter 2009 was $0.47, exclusive of the impact relating to mark-to-market of inter
Slide 4: Aircraft and Engine Transactions During Fourth Quarter 2009
Aircraft and Engine Transactions During Fourth Quarter 2009 21 aircraft lease agreements & letters-of-intent executed 14 aircraft and 9 engines delivered to lessees 14 aircraft and 9 engines purchased 8 aircraft (including 4 forward order positions) and 2 engines sold from our owned and managed port
Slide 5: Net Income
Net Income * Decrease in FY 2009 net income excluding referenced charges driven primarily by lower gain on sale in 2009 and one-off income recorded in 2008 *150.2 197.8 40.3 18.7 Net Income excluding above charges 3.2 6.4 0.8 1.8 Share-based compensation (18.2) 39.6 (3.7) 35.9 Mark-to-market on inte
Slide 6: Earnings Per Share
Earnings Per Share *$1.77 $2.33 $0.47 $0.22 Earnings Per Share excluding above charges 85.0 0.54 $1.79 FY 2008 85.0 0.44 $(0.22) 4Q 2008 85.0 85.0 Average Shares Outstanding (Million) (0.17) (0.04) Adjusted for: mark-to-market on interest rate caps and share based compensation $1.94 $0.51 Earnings P
Slide 7: Total Revenue
Total Revenue 287.6 0.8 5.2 115.9 156.6 9.1 4Q 2009 326.4 0.0 6.4 170.9 134.7 14.4 4Q 2008 1,256.3 4.2 30.3 616.6 520.7 84.5 FY 2008 22.2 Management Fees and Interest Income 1,003.3 Total Revenue 5.7 Other Revenue 324.8 Sales Revenue 581.9 *68.7 Basic Lease Rents Maintenance/End-of-Lease Revenue FY
Slide 8: Net Spread (Margin) – Fourth Quarter
Net Spread (Margin) – Fourth Quarter 29% 44% (36%) 16% % Change 126.4 87.8 Net Spread (Margin) 5,025 3,898 Average Lease Assets 10.1% 9.0% Annualized Margin (% Lease Assets) (30.2) (46.9) Less: Interest Expense* 156.6 134.7 Basic Lease Rents 4Q 2009 4Q 2008 ($ Million) * Excludes non-cash charges re
Slide 9: Net Spread (Margin) – FY 2009
Net Spread (Margin) – FY 2009 27% 30% (28%) 12% % Change 466.0 359.6 Net Spread (Margin) 4,547 3,580 Average Lease Assets 10.2% 10.0% Annualized Margin (% Lease Assets) (115.9) (161.1) Less: Interest Expense* 581.9 520.7 Basic Lease Rents FY 2009 FY 2008 ($ Million) * Excludes non-cash charges relat
Slide 10: Sales
Sales FY 2008 490.0 27.6 133.0 616.6 110.2 4Q 2009 76.5 5.0 34.4 115.9 46.3 FY 2009 149.1 52.1 123.6 324.8 *75.9 4Q 2008 130.4 13.9 26.6 170.9 24.3 ($ Million) Aircraft Sales Engine Sales Part Sales Total Sales Revenue Total Gain from Sales * Includes gain on sale from sale of forward order position
Slide 11: Leasing Expenses and SG&A
Leasing Expenses and SG&A 51.0 1.1 33.4 13.3 3.2 4Q 2009 116.2 128.3 31.6 SG&A 197.5 3.0 65.2 13.1 FY 2009 0.0 0.0 Other Expenses ** 198.4 67.3 Total Leasing Expenses and SG&A 55.6 32.4 Leasing expenses * 14.5 3.3 Operating lease in costs FY 2008 4Q 2008 ($ Million) * Details on following page ** Ac
Slide 12: Leasing Expenses
Leasing Expenses 55.6 17.1 10.6 12.4 15.5 FY 2008 13.3 4.0 0.8 4.2 4.3 4Q 2009 65.2 19.9 12.5 12.9 19.9 FY 2009 32.4 7.6 6.2 4.2 14.4 4Q 2008 Lessor Maintenance Contributions AeroTurbine & Other Leasing Costs Total Leasing Expenses Normal Transition Costs Default Related Leasing Expenses * ($ Millio
Slide 13: Impact from Defaults & Restructuring
Impact from Defaults & Restructuring (18.7) (24.9) (5.2) Total Impact (pre-tax) (15.5) (19.9) (4.3) Default Related Leasing Expenses 12.2 0.0 0.0 Maintenance Rents (1.1) 0.0 0.0 Provision for Doubtful Accounts Receivable (14.3) (5.0) (0.9) Lost Basic Lease Rents (Net of Security Deposits) FY 2008 FY
Slide 14: Tax Rate
Tax Rate 1.9% 36.8% 0.0% FY 2009 Income Income Charge 2.0% Tax Rate for Aircraft Charge (56.8%) Tax Rate for Engine/Parts (0.3%) FY 2008 Charge Blended Tax Rate Note: The positive 2008 tax rate resulted because the most significant portion of the charges relating to airline defaults and inventory im
Slide 15: Purchases of Aviation Assets
Purchases of Aviation Assets 47 41 Number of Aircraft Purchases (Units) 2,189 1,794 Aircraft Related 22 60 Engines/Airframes 2,211 1,854 Total Purchases Committed 2010 Full Year 2009 ($ Million)
Slide 16: Portfolio Management Metrics
Portfolio Management Metrics Owned Aircraft *** 50 65 New Leases for Used Aircraft Average Term (Months) FY 2009 FY 2008 Lease Portfolio 98.1% 97.7% Utilization Rate 14.3% 16.9% Portfolio Yield* **139 124 New Leases for New Aircraft * Lease revenue divided by average book value of flight equipment *
Slide 17: Cash
Cash $399.2 Operating Cash Flow for FY 2009 $323.4 Total Cash Balance at Dec. 31, 2009 (Incl. Restricted Cash) $182.6 Cash and Cash Equivalents at Dec. 31, 2009 FY 2009 ($ Million)
Slide 18: Debt and Equity
Debt and Equity 4.7% 1,126 3.4 to 1 3,790 4Q 2008 4Q 2009 ($ Million) 2.5% 1,413 3.4 to 1 Average Cost of Debt* Shareholder Equity at Year-End Debt / Equity Ratio at Year-End** 4,847 Total Debt at Year-End * Interest expense divided by average debt balance, excluding mark-to-market on interest rate
Slide 19: 2010 Financial Outlook
2010 Financial Outlook Purchases of aviation assets in 2010 expected to be ~$2.2 billion $3.6 billion including Genesis aircraft portfolio 2010 basic lease revenue expected to increase ~30% over 2009 ~55% increase including revenues from Genesis transaction 2010 gain from aircraft sales expected to
Slide 20: Full Year 2009 Highlights
Full Year 2009 Highlights Net income was $150.2 million for full year 2009, exclusive of the impact relating to mark-to-market of interest rate caps and share-based compensation Earnings per share for full year 2009 was $1.77, exclusive of the impact relating to mark-to-market of interest rate caps
Slide 21: Appendix
Appendix AERCAP
Slide 22: Aircraft and Engine Transactions During FY 2009
Aircraft and Engine Transactions During FY 2009 32 aircraft lease agreements executed 9 letters-of-intent for lease outstanding 44 aircraft and 50 engines delivered to lessees 41 aircraft and 25 engines purchased 15 aircraft (including 5 forward order positions) and 15 engines sold from our owned an
Slide 23: Forward Order Aircraft
24 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) (Available) Sold 12 Lease Agreements 41 Delivered 41 As of Decem
Slide 24: High Quality and Well Diversified Portfolio
25 High Quality and Well Diversified Portfolio 77% narrow body – “Work Horses” of industry High share of liquid / remarket-able aircraft Average age of owned aircraft fleet 5.7 years 92 engines in portfolio, as of December 31, 2009, incl. 1 on order and 6 under a letter of intent to purchase CFM56 e
Slide 25: Genesis Transaction Update
Genesis Transaction Update All three required regulatory approvals obtained (Germany, US and Turkey) Registration statement declared effective by SEC on 3 February 2010 Transitional activities on track All Genesis employees agreed to severance Closing expected end of March 2010