Aercap Holdings N.v. · NYSE:AER
Aercap — Q4 2008 Earnings Presentation
23 slides from Aercap's earnings presentation, Feb 25, 2009
Slide 1: AerCap Holdings N.V. Fourth Quarter 2008 Earnings Call
AerCap Holdings N.V. Fourth Quarter 2008 Earnings Call February 25, 2009
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 2008 Highlights
Fourth Quarter 2008 Highlights Net income was $18.7 million for fourth quarter 2008, exclusive of non-cash charges relating to mark-to-market of interest rate caps and share-based compensation ― Net income also included $21.0 million of after-tax charges due to airline defaults ($13.8m) and invent
Slide 4: Full Year 2008 Highlights
Full Year 2008 Highlights Net income was $197.8 million for full year 2008, exclusive of non-cash charges relating to mark-to-market of interest rate caps and share-based compensation ― Net income also included $21.0 million of after-tax charges due to airline defaults ($13.8m) and inventory impai
Slide 5: Net Income
Net Income ($ Million) 4Q 2007 4Q 2008 FY 2007 FY 2008 Total Net Income 45.1 (19.0)* 188.5** 151.8* Mark-to-market on interest rate 9.4 35.9 12.6 39.6 caps Share-based compensation 2.5 1.8 9.5 6.4 Net Income excluding above 57.0 18.7* 210.6** 197.8* charges * 4Q and full year 2008 included after-tax
Slide 6: Earnings Per Share
Earnings Per Share 4Q 2007 4Q 2008 FY 2007 FY 2008 Earnings Per Share $0.53 $(0.22)* $2.22** $1.79* Adjusted for: mark-to-market on interest rate caps and share 0.14 0.44 0.26 0.54 based compensation Earnings Per Share excluding $0.67 $0.22* $2.48** $2.33* above charges * 4Q and full year 2008 inclu
Slide 7: Net Spread (Margin)
Net Spread (Margin) ($ Million) 4Q 2007 4Q 2008 % Change Basic Lease Rents 126 135 7% Less: Interest Expense* (47) (47) 0% Net Spread (Margin) 79 88** 11% Average Lease Assets 3,124 3,898 25% Annual Margin (% Lease Assets) 10.1% 9.0% - Basic lease rents on floating rate leases are reduced as a resul
Slide 8: Net Spread Trends
Net Spread Trends 2007 Avg. 2008 1st 2008 2nd 2008 3rd 2008 4th ($ Millions) Quarter Quarter Quarter Quarter Quarter Net Spread (Margin)* 77 86 93 93 88** Growth in Net Spread Reflective of Growth in Leasing Income; 2008 Avg. Quarter spread $90 Million is +17% over 2007 * Net Spread = Basic rents mi
Slide 9: Total Revenue
Total Revenue ($ Million) 4Q 2007 4Q 2008 Basic Lease Rents * 126 135 Basic rents up 7% over Maintenance/End-of-Lease Revenue 12 14 fourth Sales Revenue 138 171 quarter 2007 Servicing Fees and Interest Income 9 6 Other Revenue 0 0 Total Revenue 285 326 Full year 2008 total revenue up 7% over full ye
Slide 10: Impact from Defaults & Restructuring
Impact from Defaults & Restructuring ($ Millions) 9 months 4Q 2008 2008 Total Est 1Q 2009 2008 Lost Basic Lease Rents (9) (5) (14) ~ (4) (Net of Security Deposits) Provision for Doubtful - (1) (1) 0 Accounts Receivable Maintenance Rents 10 2 12 ~(2) Leasing Expenses (1) (14) (15) ~ (7) Subtotal - (1
Slide 11: Sales Revenue
Sales Revenue ($ Million) 4Q 2007 4Q 2008 4Q 2008 (2 aircraft) Aircraft Sales 115 130 1 A330-200 Engine Sales 3 14 1 A320 Part Sales 20 27 Total Sales Revenue 138 171 Total Gain from Sales 34 24 11
Slide 12: Leasing Expenses and SG&A
Leasing Expenses and SG&A 4Q 2007 4Q 2008 % Change ($ Million) Operating lease in costs 4.7 3.3 (30%) Leasing expenses 4.6 32.4 Unfavorable * SG&A 34.2 31.6** (8%) Total Leasing expenses and SG&A 43.5 67.3 59% * Increase in Leasing Expenses mainly caused by previously disclosed airline defaults ** I
Slide 13: Tax Rate
Tax Rate FY 2007 FY 2008 Tax Rate for Aircraft 9.8% 2.0% Charge Tax Rate for Engine/Parts 35.4% (56.8%) Income Blended Tax Rate 11.8% (-0.3%) Income Note: The positive tax rate resulted because the most significant portion of the charges relating to airline defaults and inventory impairments occurre
Slide 14: Total Assets and Number of Aircraft/Engines
Total Assets and Number of Aircraft/Engines 4Q 2007 4Q 2008 ($ Million) 5,411 5,000 23% increase over 4,394 4Q 2007 Total Assets 4,000 Owned and on Balance Sheet 3,000 2,000 Number of Aircraft Owned, On Order, Managed, Decrease in units largely driven by Contracted, on LOI (units) 316 297 sales of o
Slide 15: Purchases of Aviation Assets
Purchases of Aviation Assets ($ Million) Full Year 2008 Committed 2009 Aircraft Related 1,408 1,732 Engines/Airframes 65 25 Total Purchases 1,473 1,757 Number of Aircraft 58 37 Purchases (Units) 15
Slide 16: Portfolio Management Metrics
Portfolio Management Metrics Lease Portfolio FY 2007 FY 2008 Utilization Rate 98.9% 97.7% Portfolio Yield* 18.1% 16.9% Average Term (Months) – New Leases for New Aircraft 107 124** – New Leases for Used Aircraft 72 65*** 2009 Aircraft Lease Revenue Contracted as a % of 2008 Aircraft Lease Revenue: ~
Slide 17: Debt and Equity
Debt and Equity ($ Million) 4Q 2007 4Q 2008 Total Debt at Year-End 2,893 3,790 Average Cost of Debt in Fourth Quarter* 6.4% 4.7% Shareholder Equity at Year-End 950 1,109 Debt / Equity Ratio at Year-End 3.0 to 1 3.4 to 1 * Interest expense divided by average debt balance, excluding mark-to-market on
Slide 18: Funding/Access to Capital
Funding/Access to Capital Cash Unrestricted Cash Balance at 12/31/2008 $194 Million Total Cash Balance at 12/31/2008 $307 Million Operating Cash Flow for Full Year 2008 $250 Million Collateralized Term Debt Remaining Collateralized Term Debt Requirements (’09-’12) $4.2 Billion Less: Available Lines
Slide 19: 2009 Financial Outlook
2009 Financial Outlook The financial markets and access to capital remain uncertain and volatile. As a result, AerCap’s 2009 financial outlook is less certain than in years past, particularly given the increasing stresses imposed by the global economic climate on the financial conditions of many of
Slide 20: Appendix
Appendix * (AERCAP 20
Slide 21: Aircraft and Engine Transactions
Aircraft and Engine Transactions 15 new aircraft lease agreements and letters-of-intent executed during fourth quarter 2008 12 aircraft and 9 engines delivered to lessees during fourth quarter 2008 11 aircraft purchased during fourth quarter 2008 3 aircraft sold during fourth quarter 2008 fr
Slide 22: Forward Order Aircraft
Forward Order Aircraft Total Option Option 5 Number of 5 Available Aircraft 20 100 Available 57 Sold 9 LOI Lease 4 Agreement Sold 51 7 Lease Agreement Delivered 25 15 Delivered 2 As of As of December 31, 2007 December 31, 2008 22
Slide 23: High Quality and Well Diversified Portfolio
High Quality and Well Diversified Portfolio Aircraft Portfolio as of December 31, 2008 Managed Owned Portfolio Portfolio 89% narrowbody – “Work Number of Number of Aircraft under Total Owned, Horses” of industry Number % Net Book Aircraft Purchase Managed of Aircraft Value at 31 Number of on Order