Aercap Holdings N.v. · NYSE:AER
Aercap — Q3 2007 Earnings Presentation
18 slides from Aercap's earnings presentation, Nov 8, 2007
Slide 1: AerCap Holdings N.V. Third Quarter 2007 Earnings Call
AerCap Holdings N.V. Third Quarter 2007 Earnings Call November 8, 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: Highlights
Highlights Net income was $58.1 million for third quarter 2007, exclusive of non-cash charges relating to mark-to-market of interest rate caps and share-based compensation Earnings per share for third quarter 2007 was $0.68 excluding the above charges Leasing revenue for third quarter 2007 was
Slide 4: Aircraft and Engine Transactions
Aircraft and Engine Transactions 68 new aircraft lease agreements or letters-of-intent signed and executed during first three quarters of 2007 25 aircraft and 38 engines delivered to lessees during first three quarters of 2007 29 aircraft and 11 engines purchased during first three quarters of
Slide 5: Net Income
Net Income ($ Million) 3Q 2006 3Q 2007 3Q YTD 06 3Q YTD 07 Total Net Income 46.7 48.6 117.0 143.3 Adjusted for: Mark-to-market on 7.5 6.7 (7.4) 3.2 interest rate caps Share-based compensation 9.3 2.8 10.5 6.9 Refinancing charges (2Q 2007) 0.0 0.0 0.0 24.0 Net Income excluding above 63.5* 58.1 120.1
Slide 6: Earnings Per Share
Earnings Per Share ($) 3Q 2006 3Q 2007 3Q YTD 06 3Q YTD 07 Earnings Per Share $0.60 $0.57 $1.50 $1.69 Adjusted for: mark-to-market on interest rate caps, share based 0.21 0.11 0.04 0.40 compensation, and refinancing charges in 2Q 2007 Earnings Per Share excluding $0.81* $0.68 $1.54 $2.09 above charg
Slide 7: Revenue Breakdown
Revenue Breakdown ($ Million) 3Q 2006 3Q 2007 Lease Revenue 111 137 Lease Sales Revenue 165 187 revenue up Management Fees and Interest 23% over 12 12 Income third quarter 2006 Other Revenue 12* 0 Total Revenue 300 336 * Other Revenue resulted primarily from the sale of financial assets 7
Slide 8: Lease Revenue
Lease Revenue ($ Million) 3Q 2006 3Q 2007 Basic Rents $99 $125 Maintenance Rents 4 11 End-of-Lease Compensation 8 1 Lease Revenue $111 $137 8
Slide 9: Sales Revenue
Sales Revenue Optimizing Our Portfolio with Sales ($ Million) 3Q2006 3Q 2007 Aircraft Sales 143 165 3Q 2007 (7 aircraft) 3 A330 - 300 Engine Sales 9 8 1 B757 - 200 Part Sales 13 14 1 MD87 2 Fokker 100 Sale Revenue 165 187 9
Slide 10: SG&A Expenses
SG&A Expenses ($ Million) 3Q 2006 3Q 2007 % Change SG&A* 23.3 24.7 6% Revenues 300 336 12% SG&A as % of Revenue 7.8% 7.4% * Excluding share-based compensation 10
Slide 11: Tax Rate
Tax Rate 3Q 2006 3Q 2007 Tax Rate for Aircraft 14.6% 15.0% Tax Rate for Engine/Parts 38.6% 34.2% Blended Tax Rate 11.7% * 16.0% * Engine/Parts business incurred a pre-tax loss in 3Q 2006 (due mostly to share-based compensation), which resulted in a lower Blended Tax Rate than that of each business o
Slide 12: Total Assets and Number of Aircraft/Engines
Total Assets and Number of Aircraft/Engines 3Q 2006 3Q 2007 ($ Million) 20% increase 4,253 over third 4,000 3,548 quarter 2006 Total Assets 3,000 Owned and on Balance Sheet 2,000 1,000 0 Number of Aircraft Owned, On Order, Managed, Contracted, on LOI 324 325 Number of Engines Owned, Contracted, on L
Slide 13: Purchases of Aviation Assets
Purchases of Aviation Assets ($ Million) 3Q YTD 2007 Committed 2007 Aircraft Related 452 768 Engines/Airframes 67 86 Total Purchases 519 854 Number of Aircraft 29 41 Purchases (Units) 13
Slide 14: Portfolio Management Metrics
Portfolio Management Metrics Aircraft Lease Portfolio FY 2006 3Q YTD 2007 Utilization Rate 98.9% 97.8% Portfolio Yield* 17% 18% Average Term (Months) – New Aircraft Leases 103 104 ** – Used Aircraft Leases 59 75 2008 Aircraft Lease Revenue Contracted as a % of 2007 Contracted Aircraft Lease Revenue:
Slide 15: Funding/Access to Capital
Funding/Access to Capital Cash Balance at September 30, 2007* $272 Million Operating Cash Flow in 3Q 2007 $60 Million Available Lines of Credit at September 30, 2007 ~$1.8 Billion PDP Facility Closed on October 10, 2007 $182 Million * Free cash only (excludes restricted cash balance) 15
Slide 16: Debt
Debt ($ Million) Sept. 30, 2006 Sept. 30, 2007 Total Debt 2,459 2,782 Increase of 13% in debt balance vs. Average Cost of Debt in Quarter* 7.3% 6.8% 20% growth in Total Assets Debt / Equity Ratio 4.5 to 1 3.1 to 1 * Interest expense divided by average debt balance, excluding mark-to-market on intere
Slide 17: 4Q / 2007 Outlook
4Q / 2007 Outlook Contracted purchases for 2007 on track for amount equal to that achieved in 2006 (nearly $1 billion) Gain from sales in 4Q expected to be comparable to quarterly average during first three quarters of 2007 17
Slide 18: Highlights
Highlights Net income was $58.1 million for third quarter 2007, exclusive of non-cash charges relating to mark-to-market of interest rate caps and share-based compensation Earnings per share for third quarter 2007 was $0.68 excluding the above charges Leasing revenue for third quarter 2007 was