Aercap Holdings N.v. · NYSE:AER
Aercap — Q3 2014 Earnings Presentation
22 slides from Aercap's earnings presentation, Nov 4, 2014
Slide 1: Third Quarter 2014 Financial Results
November 4, 2014 Third Quarter 2014 Financial Results AerCap Holdings N.V.
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 b
Slide 3: Operational Update
Operational Update • The integration of the ILFC business remains on track. The primary IT systems were successfully integrated on schedule by the end of the third quarter of 2014. • Annualized net spread percentage for the third quarter was 10.1%, up from 8.8% in the same period of 2013. • Our flee
Slide 4: Third Quarter Highlights
Third Quarter Highlights Adjusted net income was $315.8 million for the third quarter of 2014, an increase of 253% over the same period in 2013. Adjusted earnings per share were $1.49 for the third quarter of 2014, an increase of 89% over the same period in 2013. KEY HIGHLIGHTS • We purchased nine a
Slide 5: Net Income
Net Income ($ Millions) 3Q 2014 3Q 2013 Reported Net Income* 340.9 83.6 Adjusted for: Mark-to-market on interest rate caps and swaps, net of tax 0.4 3.7 Share-based compensation, net of tax 22.5 2.1 Transaction and integration related expenses, net of tax 12.6 - Maintenance rights related expenses,
Slide 6: Basic Earnings Per Share
Basic Earnings Per Share 3Q 2014 3Q 2013 Earnings Per Share $1.61 $0.74 Adjusted for: Mark-to-market on interest rate caps and swaps, share-based $(0.12) $0.05 compensation, Transaction and integration related expenses and maintenance rights related expenses Adjusted Earnings Per Share $1.49 $0.79 A
Slide 7: Revenues and Other Income
Revenues and Other Income ($ Millions) 3Q 2014 3Q 2013 Basic Lease Rents* 1,172.3 234.3 Maintenance Rents and Other Receipts 49.8 23.7 Net Gain on Sale of Assets 2.8 10.7 Other Income** 26.1 10.7 Total Revenues and Other Income 1,251.0 279.4 * Third quarter 2014 basic lease rents increased by 400% o
Slide 8: Net Interest Margin (Net Spread)
Net Interest Margin (Net Spread) ($ Millions) 3Q 2014 3Q 2013 Net Interest Margin (Net Spread)* 905.8 174.8 Average Lease Assets** 35,899 7,993 Annualized Net Spread % 10.1% 8.8% * Net Interest Margin (Net Spread) is basic lease rents less interest expense, excluding the non-cash charges relating to
Slide 9: Sales of Aircraft
Sales of Aircraft ($ Millions) 3Q 2014 3Q 2013 Pre-tax Gain from Aircraft Sales 2.8 10.7 • In 3Q 2014: we sold ten aircraft from our owned portfolio (one Airbus A300-600F, seven Boeing 737 classics, one Boeing 767-300ER and one MD-11 aircraft). In addition we executed part-out transactions for three
Slide 10: Other Expenses and Taxes
Other Expenses and Taxes ($ Millions) 3Q 2014 3Q 2013 Leasing Expenses 28.9 5.5 SG&A 96.0 23.4 Transaction and Integration Related Expenses* 14.4 - YTD 2014 YTD 2013 Blended Tax Rate** 17.5% 8.5% * Transaction and integration related expenses are costs that were incurred in relation to the ILFC tran
Slide 11: Cash
Cash ($ Millions) 2014 2013 Cash and Cash Equivalents at September 30 1,744.3 318.1 (Excl. Restricted Cash) Total Cash Balance at September 30 2,417.6 593.3 (Incl. Restricted Cash) Operating Cash Flow for the third Quarter 885.0 198.1 Strong operating cash flow generation. 3 11 4
Slide 12: Liquidity Position as of September 30, 2014
Liquidity Position as of September 30, 2014 Sources (for 12 Months to September 30, 2015) ($ billions) Unsecured Revolver 2.9 AIG Revolver 1.0 Other Undrawn Commitments 1.0 Sources do not include additional financing for Unrestricted Cash 1.7 deliveries of new Total Available Liquidity 6.6 aircraft
Slide 13: Capital Structure
Capital Structure ($ Millions) 3Q 2014 3Q 2013 Total Debt at Quarter-End 30,828 6,232 Average Cost of Debt * 3.4% 3.9% Equity 7,645 2,362 Adjusted Debt / Equity Ratio ** 3.5 to 1 2.6 to 1 * Interest expense divided by average debt balance, excluding mark-to-market on interest rate caps and swaps and
Slide 14: Financial Outlook for 4Q 2014
Financial Outlook for 4Q 2014 Set forth below are the expected drivers for AerCap’s 4Q 2014 financial performance and are subject to change. Total revenue of ~$1.25 billion (~$5.0 billion on an annualized basis). Costs as follows: • Depreciation of ~$0.53 billion (~$2.1 billion on an annualized basi
Slide 15: Supplemental Information
Aviation Solutions Supplemental Information Confidential property of the company, not for disclosure or use without permission 71 RERCAP.COM
Slide 16: 134 Aircraft Transactions During Third Quarter 2014
134 Aircraft Transactions During Third Quarter 2014 84 26 9 15 LEASE AIRCRAFT AIRCRAFT AIRCRAFT AGREEMENTS DELIVERED TO PURCHASED DISPOSED EXECUTED LESSEES (sale or part-out) 13 from our owned portfolio and two from our managed portfolio 3 16 4
Slide 17: High Quality and Well-Diversified Portfolio
High Quality and Well-Diversified Portfolio Aircraft Portfolio as of September 30, 2014 Number of Owned Number of Managed & % Net Book Value Aircraft on Order** Total Aircraft Aircraft* AerDragon Aircraft Airbus A319 143 8% 11 - 154 Airbus A320 241 17% 36 - 277 Airbus A320neo - - - 155 155 Airbus A3
Slide 18: Committed Aircraft Purchases
Committed Aircraft Purchases Actual Total Remaining Remaining YTD 2014 as of 3Q 2014 9/30/14* Aircraft Purchases ($ Billions) 1.6 0.9 28.7 Number of Aircraft Purchases (Units) 22 12 391 * Consists of $3.6 billion in 2015, $4.4 billion in 2016, $5.8 billion in 2017, $5.9 billion in 2018, and $8.1 bil
Slide 19: Portfolio Management Metrics for Owned Aircraft
Portfolio Management Metrics for Owned Aircraft Lease Portfolio 3Q 2014 3Q 2013 Utilization Rate* 99.3% 99.7% Portfolio Yield** 13.6% 12.5% Average Lease Term (Previous 12 Months) • New Leases for New Aircraft (Months) 144*** 165 • Leases for Used Aircraft (Months) 58**** 56 * Utilization rate weigh
Slide 20: Leasing Expenses
Leasing Expenses ($ Millions) 3Q 2014 3Q 2013 Default and Restructuring Related 8.6 0.7 Normal Transition Costs 15.6 4.3 Maintenance Rights Expense 0.7 - Lessor Maintenance Contributions 1.4 - Other Leasing Costs 2.6 0.5 Leasing Expenses 28.9 5.5 3 20 4
Slide 21: Impact from Defaults and Restructurings
Impact from Defaults and Restructurings ($ Millions) 3Q 2014 3Q 2013 Lost Basic Lease Rents (0.2) (0.1) (Net of Security Deposits) Default Related Leasing Expenses (3.2) (0.1) (Net of Maintenance Rents Held) Total Impact (Pre-Tax) (3.4) (0.2) Total Impact (Post-Tax) (3.0) (0.2) Default and restructu
Slide 22: SG&A
SG&A ($ Millions) 3Q 2014 3Q 2013 Share-based compensation expenses 25.7 2.4 Other selling, general and administrative 70.3 21.0 expenses Selling, General and Administrative Expenses 96.0 23.4 The increase in SG&A , period over period, reflects the ILFC acquisition. 3 22 4