Aercap Holdings N.v. · NYSE:AER
Aercap — FY2006 Earnings Presentation
21 slides from Aercap's earnings presentation, Feb 28, 2007
Slide 1: AerCap Holdings N.V. Fourth Quarter and Full Year 2006 Earnings Call
AerCap Holdings N.V. Fourth Quarter and Full Year 2006 Earnings Call February 28, 2007
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: 2006 Highlights
2006 Highlights Q4 net income was $41.5 million (excluding charge for share based compensation) FY net income $156.3 million (excluding charge for share based compensation) FY revenue was $814.4 million (up 65%) Flight equipment held for lease was $3.0 billion as of December 31, 2006 (up 36%
Slide 4: Fourth Quarter Net Income
Fourth Quarter Net Income ($ Million) 60 55% increase 41.5 over prior year 40 26.7 20 (58.7) Net Income 0 Excluding Charge for Share-based -20 Compensation -40 Charge for Share-based -60 Compensation, 4Q 2005 4Q 2006* Net of Tax * 4Q 2006 results include AeroTurbine 4
Slide 5: Full Year Net Income
Full Year Net Income ($ Million) 200.0 156.3 88% increase 150.0 over prior year 83.4 100.0 Net Income 50.0 Excluding (68.3) Charge for 0.0 Share-based Compensation (50.0) Charge for Share-based (100.0) Compensation, Full Year Full Year Net of Tax 2005* 2006** • 2005 results are 6 months ended June 3
Slide 6: Earnings Per Share
Earnings Per Share 2005* 2006** 4Q Full Year* 4Q Full Year EPS Excluding Charge $0.34 $1.07 $0.51 $1.98 for Share-based Compensation Total EPS $0.34 $1.07 ($0.21) $1.11 Average Shares 78.237 78.237 81.259 78.993 Outstanding (Million) * 2005 results are for 6 months ended June 30, 2005 for AerCap B.V
Slide 7: Total Assets and Number of Aircraft/Engines
Total Assets and Number of Aircraft/Engines 12/31/05 12/31/06 ($ Million) $3,923 28% increase $4,000 over prior year $3,500 $3,061 Total Assets $3,000 Owned and on $2,500 Balance Sheet $2,000 $1,500 $1,000 $500 $0 Number of Aircraft - Owned 105 131 - On Order 15 99 - Under Contract/LOI - 11 - Manage
Slide 8: Purchases of Aviation Assets
Purchases of Aviation Assets ($ Million) 4Q 2006 Full Year 2006 Aircraft Related $483.6 $884.1 Engines/Airframes 39.2 89.1 Total $522.8 $973.2 # of Aircraft Purchased 28 41 8
Slide 9: Portfolio Management Metrics
Portfolio Management Metrics Aircraft Lease Portfolio 2005* 2006 Utilization Rate 99% 99% Portfolio Yield** ~15% ~17% Average Term (Months) – New Leases 69 103 – Lease Renewals 51 59 2007 Lease Revenue Already Contracted – as a % to 2006 Actual Lease Revenue ~117% •2005 results are for 6 months ende
Slide 10: Revenue Breakdown
Revenue Breakdown ($ Million) 4Q 2006 Full Year 2006 Lease Revenue $132.8 $443.9 Sales Revenue 64.7 301.4 Management Fees, Interest Income 14.1 69.1 and Other Revenue Total Revenue* $211.6 $814.4 % Increase over 2005** 78% 65% * 2006 results include AeroTurbine from April 26 through December 31, 200
Slide 11: Sales Revenue
Sales Revenue Sales Optimizing Portfolio and Improving Mix, Quality and Diversification 4Q Full Year 2006 2006 Aircraft Sales 4Q (4 aircraft) $34.8 $232.3 2 Fokker 100s Engine Sales 2 B757s 14.5 31.4 Part-Out Sales Full Year (19 aircraft) 15.4 37.7 13 Fokker 100s 4 A320s Total $64.7 $301.4 2 B757s 1
Slide 12: Cash / Access to Capital
Cash / Access to Capital ($ Million) Cash Balance at 12/31/06 $243 Operating Cash Flow in 2006 $348 Available Lines of Credit at 12/31/06 $1,268 12
Slide 13: Debt/Financings
Debt/Financings ($ Million) Total Debt at 12/31/06 $2,555 Average Cost of Debt in 2006* 6.8% Debt/Equity Ratio at 12/31/06 3.5 to 1 Financings in 4Q 2006 (Total Amount of Facility) - AeroTurbine Revolving Facility (Amended) $220 - Commercial Debt for Aircraft Purchases from GATX $248 - AerVenture PD
Slide 14: Expenses & Productivity
Expenses & Productivity ($ Million) 2005* 2006 Expenses** $206.1 $245.7 % Increase in Expenses (2006 over 2005) - 19% % Increase in Assets (2006 over 2005) - 28% % Increase in Revenue (2006 over 2005) - 65% *2005 results are for 6 months ended June 30, 2005 for AerCap B.V. (predecessor company) plus
Slide 15: Taxes & Tax Rate
Taxes & Tax Rate ($ Million) 2006 Income Before Taxes $103.7 Taxes $16.3 Tax Rate 15.7% 15
Slide 16: Adjusted EBITDA
Adjusted EBITDA 2005* 2006** Adjusted EBITDA ($ million) *** $325 $452 % Increase over 2005 - 39% * 2005 results are for 6 months ended June 30, 2005 for AerCap B.V. (predecessor company) plus 6 months ended December 31, 2005 for AerCap N.V. (successor company) ** 2006 results include AeroTurbine fr
Slide 17: 2007 Outlook
2007 Outlook Cash and available lines of credit allow for purchases in 2007 to be comparable to that achieved in 2006 2007 sales revenue as a % to total revenue expected to be higher than 2006 2007 cost of debt expected to be comparable to 2006 2007 tax rate expected to be lower than 2006
Slide 18: 2006 Highlights
2006 Highlights Q4 net income was $41.5 million (excluding charge for share based compensation) FY net income $156.3 million (excluding charge for share based compensation) FY revenue was $814.4 million (up 65%) Flight equipment held for lease was $3.0 billion as of December 31, 2006 (up 36%
Slide 19: Notes Regarding Financial Information Presented in This Document
Notes Regarding Financial Information Presented in This Document 19
Slide 20: Non-GAAP measure definitions
The financial information presented in this press release is not audited. Following are definitions of certain non-GAAP measures used in this press release and a reconciliation of such measures to the most closely related GAAP measure: Net income excluding charges for share-based compensation. This
Slide 21: Adjusted EBITDA reconciliation to net income
Adjusted EBITDA. Adjusted EBIDTA is determined by adding the amounts for charges relating to interest, depreciation and amortization, taxes and share-based compensation to the amount of net income. Adjusted EBITDA provides management with a useful measure of the Company’s operating performance becau