Fly Leasing — Investor Presentation (June 2014)
20 slides from Fly Leasing's investor presentation, Jun 23, 2014
Slide 1: FLY Leasing Limited June 2014
FLY Leasing Limited June 2014
Slide 2: Caution Concerning Forward-Looking Statements
Page 1 Caution Concerning Forward - Looking Statements This presentation contains "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," "anticipates," "intends," "plans,"
Slide 3: FLY at a Glance
Page 2 Total Revenues $91.3 Total Assets $3,659.4 Net Income 3.6 Total Liabilities 2,918.8 Earnings per share $0.07 Total Equity 740.6 Adjusted Net Income (3) 5.1 Cash and Cash Equivalents 386.5 Adjusted Net Income (3) per share $0.12 Total Borrowings 2,505.3 FLY at a Glance (1) As of March 31, 2014
Slide 4: Investment Decisions Driven by Shareholder Focus
Page 3 Investment Decisions Driven by Shareholder Focus Well capitalized to acquire aircraft accretive to EPS and cash flow Committed to returning capital to shareholders Consistent track record of selling older aircraft at gains Flexible approach to debt financing to take advantage of the most effi
Slide 5: Attractive Portfolio of Leased Aircraft
Page 4 Attractive Portfolio of Leased Aircraft (1) As of 3/31/2014. FLY has subsequently acquired seven aircraft, including six B737 - 800s and one A319 - 100 and sold seven aircraft, including one B737 - 800, four B737 - 700s and two A319 - 100s. (2) Includes one freighter. (3) One A330 - 200, one
Slide 6: Diversified, Global Customer Base
Page 5 Diversified, Global Customer Base Lessee Country % of Revenue (1) Chile 8% China 5% UK 4% USA 4% USA 4% Turkey 4% Mexico 3% India 3% UK 3% Thailand 3% Top 10 Lessees 41% (1) As a percent of total annualized contracted revenue as of March 31, 2014. Diversified Lessees – 63 Airlines in 33 Count
Slide 7: Stable and Growing Dividend Enhances Shareholder Value
Page 6 Stable and Growing Dividend Enhances Shareholder Value Declared 26 consecutive quarterly dividends since IPO in 2007 Cumulative Dividends Per Share Since Inception $2.20 $3.00 $3.80 $4.60 $5.46 $6.37 $6.62 $0.00 $1.00 $2.00 $3.00 $4.00 $5.00 $6.00 $7.00 2008 2009 2010 2011 2012 2013 YTD 2014
Slide 8: FLY's Acquisition Strategy
Page 7 FLY’s Acquisition Strategy » Primary growth driver » Large, established operating base » Liquid assets for trading » Predictable residual values Young Narrowbodies Focus : B737 - 800s & A320s » Limited appetite, no more than 25% of fleet value » High quality credits and long - term leases » A
Slide 9: Improved Portfolio Metrics from 2013 Acquisitions & Sales
Page 8 3.2 4.3 0 1 2 3 4 5 2012 2013 2013 Acquisitions & Sales Improved Portfolio Metrics (1) Years Years Average Age Average Remaining Lease Term (9%) 34% Contracted Annualized Rents Top 10 Lessees as a % of Rentals $326 $371 200 250 300 350 400 2012 2013 $ in millions 14% 44.0% 40.6% 35.00% 37.00%
Slide 10: FLY is Executing its Growth Strategy in 2014
Page 9 FLY is Executing its Growth Strategy in 2014 Number of Aircraft 4 Total Acquisition Costs $82m Avg. Remaining Lease Term 2.8 yrs Number of Lessees 4 Number of Countries 4 Annualized Rents $12m Q1 Acquisitions (1) Number of Aircraft 7 Total Acquisition Costs $226m Avg. Remaining Lease Term 6.6
Slide 11: FLY Consistently and Profitably Monetizes Aircraft
Page 10 $11.4 $13.4 $9.1 $8.4 $6.3 $11.4 $11.4 $24.8 $33.9 $42.3 $48.6 2008 2009 2010 2011 2012 2013 Annual Gains Cumulative Gains # of A/C Sold 2 -- 4 2 4 10 Avg. Age of A/C Sold 12.9 -- 11.0 6.8 13.7 13.6 Premium to NBV of A/C Sold 39% -- 16% 9% 12% 11% • Through March 31, 2014: • FLY sold 22 airc
Slide 12: 2013 Capital Markets Execution
Page 11 2013 Capital Markets Execution • Sold $300m of unsecured senior notes due in 2020 • Successful first time issuance Unsecured Debt • Upsized by $105 million • Extended maturity to 2019 Term Loan B • Upsized by $200 million • Extended availability period and maturity by two years • Reduced mar
Slide 13: FLY's Leverage is at Historically Low Levels
Page 12 Target leverage in the 3.0x – 4.0x range depending on market conditions, financing availability and asset trading activity FLY’s Leverage is at Historically Low Levels 2.7x 5.1x 3.6x 2.9x 2.9x • Debt is secured and long - dated — liability structure matches asset characteristics • Debt amort
Slide 14: Capital Structure & Liquidity Summary
Page 13 Capital Structure & Liquidity Summary FLY’s Capital Structure • Unrestricted cash of $387 million at March 31, 2014 • Total unencumbered aircraft assets of $121m • Net debt to equity ratio of 2.9x ($ in millions) 3/31/2014 12/31/2013 Unrestricted cash and cash equivalents $387 $404 Debt O /
Slide 15: Appendix 1—BBAM Overview
Appendix 1—BBAM Overview FLY Leasing
Slide 16: BBAM Overview
Page 15 BBAM Overview Source: AirFinance Journal, 2014. Leading Aircraft Lessors • Founded in 1989 • World’s third largest lease manager of aircraft with 400+ aircraft under management • Acquired by management team and FLY in April 2010 • Onex purchased a 50% interest in BBAM in December 2012 • 120
Slide 17: BBAM — Global, Full Service Platform
Page 16 BBAM — Global, Full Service Platform • No outsourcing – each driver of aircraft investment returns led by senior BBAM personnel with dedicated teams • 120 professionals in nine offices covering all target regions • Dedicated in - house professional staff providing a comprehensive platform DR
Slide 18: Representative Global Reach
Page 17 Representative Global Reach Americas Asia - Pacific Africa / Middle East Europe A Sample of BBAM’s Airline Relationships
Slide 19: Appendix — Adjusted Net Income Definition
Appendix 2 — Adjusted Net Income Definition
Slide 20: Adjusted Net Income
Page 19 Adjusted Net Income FLY defines Adjusted Net Income as net income plus or minus the ineffective portion of cash flow hedges, non - cash share - based compensation, and adjustments related to the GAAM portfolio acquisition comprised of amortization of fair value adjustments recorded in purcha