Slide 1: AerCap Holdings N.V. First Quarter 2012 Earnings Call
AerCap Holdings N.V. First Quarter 2012 Earnings Call May 8, 2012
Slide 2: Disclaimer Incl. Forward Looking Statements & Safe Harbor
Disclaimer Incl. 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
Slide 3: First Quarter 2012 Financial Highlights
First Quarter 2012 Financial Highlights Adjusted net income was $69.1 million for first quarter 2012 (as compared to $75.3 million in first quarter 2011). Adjusted earnings per share was $0.49 for first quarter 2012 (as compared to $0.50 in first quarter 2011). Net interest margin (net spread) was $
Slide 4: Net Income
Net Income ($ Million) 1Q 2011 1Q 2012 Reported Net Income 72.1 65.0 Adjusted for: Loss from mark-to- 1.5 2.8 market on interest rate caps * Adjusted for: cost of share-based 1.7 1.3 compensation* Adjusted Net Income 75.3 69.1 Adjusted Net Income excluding 67.4 75.8 impact from defaults/restructurin
Slide 5: Earnings Per Share
Earnings Per Share 1Q 2011 1Q 2012 Earnings Per Share $0.48 $0.46 Adjusted for: mark-to-market on interest rate caps & share based 0.02 0.03 compensation Adjusted Earnings Per Share $0.50 $0.49 Average Shares Outstanding 149.2 139.9 (Million)* * The decrease in average shares outstanding reflects 9.
Slide 6: Total Revenue
Total Revenue ($ Million) 1Q 2011 1Q 2012 Basic Lease Rents 237.1 235.1 Maintenance Rents and 20.1 17.6 Other Receipts Management Fees and 5.7 5.2 Interest Income Other Revenue* 2.5 0.2 Net Loss on Sales (1.3) (0.2) Total Revenue 264.1 257.9 * Includes a one-time receipt of $2.0 million in 1Q 2011 d
Slide 7: Net Interest Margin (Net Spread) - First Quarter 2012
Net Interest Margin (Net Spread) - First Quarter 2012 ($ Millions) 1Q 2011 1Q 2012 % Change Net Interest Margin (Net Spread)* 180.1 174.4 (3%) Average Lease Assets 7,810 7,881 1% Annualized Margin (% Lease Assets)** 9.22% 8.85% * Net Interest Margin (Net Spread) is basic lease rents less interest ex
Slide 8: Sales
Sales ($ Million) 1Q 2011* 1Q 2012** Loss from Sales* (1.3) (0.2) * 1Q 2011 aircraft sales include 2 older B757s, 1 older MD-82 & 1 older A320 ** 1Q 2012 aircraft sales include 1 new A330 & 1 older B757 8
Slide 9: Leasing Expenses
Leasing Expenses ($ Million) 1Q 2011 1Q 2012 Default Related 4.7 13.0 Normal Transition Costs 2.4 2.9 Lessor Maintenance 1.4 1.0 Contributions Other Leasing Costs 2.6 1.6 Total Leasing Expenses 11.1 18.5 9
Slide 10: SG&A
SG&A ($ Million) 1Q 2011 1Q 2012 Aircraft Management Fees 1.6 0.5 Mark-to-market of: foreign currency hedges, foreign (7.2) (4.9) currency cash balances, and other derivatives Share-based compensation 1.2 1.5 expenses Other Selling, General and 21.2 19.2 Administrative expenses Total Selling, Genera
Slide 11: Impact from Defaults and Restructuring
Impact from Defaults and Restructuring ($ Million) Q1 2011 Q1 2012 Default and Restructuring Related Lost Basic Lease Rents (Net of 3.0 (3.3) Security Deposits) Maintenance Rents Held 10.7 8.6 Leasing Expenses (4.7) (13.0) Total Impact (Pre-Tax) 9.0 (7.7) Total Impact (Post-Tax) 7.9 (6.7) 11
Slide 12: Impact from Defaults and Restructuring
Impact from Defaults and Restructuring ($ Million) FY 2011 FY 2012 (Actual) (Estimate)* Default and Restructuring Related Lost Basic Lease Rents (Net of (5.4) ~(6) Security Deposits) Maintenance Rents Held 63.9 9 Leasing Expenses (30.7) ~(25) Impairment Charges (3.7) - Total Impact (Pre-tax) 24.1 ~(
Slide 13: Tax Rate
Tax Rate FY 2011 Q1 2012 Blended Tax Rate* 6.7% Charge 8.7% Charge * The blended effective tax rate in any year is impacted by the source and amount of earnings among AerCap’s different tax jurisdictions. Full year 2012 blended tax rate is expected to be same as 1Q 2012 (~ 8.7%). 13
Slide 14: Total Assets and Number of Aircraft/Engines
Total Assets and Number of Aircraft/Engines Q1 2011 Q1 2012 ($ Millions) 9,789 10,000 9,256 8,000 5% decrease Total Assets Owned and on 6,000 over 1Q 2011 (Driven by the sales of Balance Sheet AeroTurbine & 50% interest in an A330 JV) 4,000 2,000 0 The increase of 10 aircraft is driven by the Number
Slide 15: Committed Aircraft Purchases
Committed Aircraft Purchases ($ Million) 1Q 2012 Remaining Committed 2012* 2012 Aircraft Purchases 258 727 985 Number of Aircraft 5 12 17 Purchases (Units) * Includes purchases of 7 additional aircraft as part of the American Airlines Purchase-Leaseback transaction (subject to confirmation on an air
Slide 16: Portfolio Management Metrics Owned Aircraft
Portfolio Management Metrics Owned Aircraft Lease Portfolio FY 2011 Q1 2012 Utilization Rate 98.4% 98.2% Portfolio Yield* 13.2% 12.8% Average Term (Previous 12 Months) – New Leases for New Aircraft 137 **134 – New Leases for Used Aircraft 74 *** 69 * Lease revenue divided by average book value of fl
Slide 17: Cash
Cash ($ Millions) Q1 2012 Cash and Cash Equivalents at March 31, 2012 424.7 Total Cash Balance at March 31, 2012 728.3 (Incl. Restricted Cash) Operating Cash Flow for Q1 2012 166.2 17
Slide 18: Debt and Equity
Debt and Equity ($ Millions) 1Q 2011 1Q 2012 Total Debt at Quarter-End 6,731 6,177 Average Cost of Debt (including ~0.4% 3.6% 3.9% relating to amortization of debt issuance costs)* Equity 2,293 2,348 Debt / Equity Ratio 2.9 to 1 2.6 to 1 * Interest expense divided by average debt balance, excluding
Slide 19: 2012 Current Outlook – EPS Impact of Aircraft Sales / One-offs
2012 Current Outlook – EPS Impact of Aircraft Sales / One-offs Q1 2012 Remaining 2012 Committed Aircraft Sales $0.00 $0.01 Other One-offs $0.00 $0.00 EPS Impact $0.00 $0.01 19
Slide 20: Net Maintenance Contribution
Net Maintenance Contribution Full Year Full Year 2010 Full Year 2011 2012 Estimate Default & Restructuring 29.3 63.9 ~9 Related Maint. Rents* Regular Maintenance Rents 32.6 35.3 ~43 Leasing Expenses * (55.5) (58.4) ~(72) Pre-tax Impact 6.4 40.8 ~(20) EPS Impact (after tax) $0.05 $0.24 ~($0.12) * Inc
Slide 21: 2012 Financial Outlook
2012 Financial Outlook AerCap expects to grow EPS based on the committed and new aircraft purchases and the recently completed share repurchase program despite the continued uncertainties of the global economic environment. Set forth below are the anticipated drivers for AerCap’s 2012 financial perf
Slide 22: Appendix
Appendix * (AERCAP 22
Slide 23: Aircraft Transactions Q1 2012
Aircraft Transactions Q1 2012 21 aircraft lease agreements & letters-of-intent executed 6 aircraft delivered to lessees 5 aircraft purchased 2 aircraft sold from our owned and 2 from managed portfolios 23
Slide 24: High Quality and Well-Diversified Portfolio
High Quality and Well-Diversified Portfolio Aircraft Portfolio as of March 31, 2012 Aircraft under Sale Number Number of / Purchase of Owned % Net Book Managed Aircraft on Contract or Total Aircraft Value Aircraft Order LOI Aircraft Airbus A300 Freighter 1 0.3% 0 0 0 1 73% narrow body – “Work Airbus
Slide 25: Update on American Airlines Purchase-Leaseback
Update on American Airlines Purchase-Leaseback American Airlines parent AMR filed for Chapter 11 bankruptcy on November 29, 2011. The recent purchase/leaseback deal was structured so that the remaining undelivered aircraft obligation automatically terminated when American filed for bankruptcy. AerCa
Slide 26: Indebtedness as of March 31, 2012
Indebtedness as of March 31, 2012 Outstanding Commitment Outstanding Availability ($mm) ($mm) ($mm) ($mm) ECA Guaranteed Financings 1,967 1,699 268 UBS Revolving Credit Facility 775 456 319 SkyFunding B737 Acquisition Facilities 399 265 134 ALS I 593 593 – ALS II 663 663 – GFL 604 604 – All Other 1,
Slide 27: Net Maintenance Contribution
Net Maintenance Contribution Remaining Full Year 1Q 2012 2012 Estimate 2012 Estimate Default & Restructuring 8.6 - ~9 Related Maint. Rents* Regular Maintenance 9.0 ~34 ~43 Rents Leasing Expenses * (18.5) ~(53) ~(72) Pre-tax Impact (0.9) ~(19) ~(20) EPS Impact (after tax) ($0.01) ~($0.11) ~($0.12) *