Aercap Holdings N.v. · NYSE:AER
Aercap — Q4 2009 Earnings Presentation
26 slides from Aercap's earnings presentation, Feb 24, 2010
Slide 1: AerCap Holdings N.V. Fourth Quarter 2009 Earnings Call
AerCap Holdings N.V. Fourth Quarter 2009 Earnings Call February 24, 2010
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 2009 Highlights
Fourth Quarter 2009 Highlights Net income was $40.3 million for fourth quarter 2009, exclusive of the impact relating to mark-to-market of interest rate caps and share- based compensation Earnings per share for fourth quarter 2009 was $0.47, exclusive of the impact relating to mark-to-market of
Slide 4: Aircraft and Engine Transactions During Fourth Quarter 2009
Aircraft and Engine Transactions During Fourth Quarter 2009 21 aircraft lease agreements & letters-of-intent executed 14 aircraft and 9 engines delivered to lessees 14 aircraft and 9 engines purchased 8 aircraft (including 4 forward order positions) and 2 engines sold from our owned and mana
Slide 5: Net Income
Net Income ($ Million) 4Q 2008 4Q 2009 FY 2008 FY 2009 Total Net Income (19.0) 43.2 151.8 165.2 Mark-to-market on interest 35.9 (3.7) 39.6 (18.2) rate caps Share-based 1.8 0.8 6.4 3.2 compensation Net Income excluding 18.7 40.3 197.8 *150.2 above charges * Decrease in FY 2009 net income excluding re
Slide 6: Earnings Per Share
Earnings Per Share 4Q 2008 4Q 2009 FY 2008 FY 2009 Earnings Per Share $(0.22) $0.51 $1.79 $1.94 Adjusted for: mark-to-market on interest rate caps and 0.44 (0.04) 0.54 (0.17) share based compensation Earnings Per Share $0.22 $0.47 $2.33 *$1.77 excluding above charges Average Shares Outstanding 85.0
Slide 7: Total Revenue
Total Revenue ($ Million) 4Q 2008 4Q 2009 FY 2008 FY 2009 Basic Lease Rents 134.7 156.6 520.7 581.9 Maintenance/End-of-Lease 14.4 9.1 84.5 *68.7 Revenue Sales Revenue 170.9 115.9 616.6 324.8 Management Fees and 6.4 5.2 30.3 22.2 Interest Income Other Revenue 0.0 0.8 4.2 5.7 Total Revenue 326.4 287.6
Slide 8: Net Spread (Margin) – Fourth Quarter
Net Spread (Margin) – Fourth Quarter ($ Million) 4Q 2008 4Q 2009 % Change Basic Lease Rents 134.7 156.6 16% Less: Interest Expense* (46.9) (30.2) (36%) Net Spread (Margin) 87.8 126.4 44% Average Lease Assets 3,898 5,025 29% Annualized Margin (% Lease 9.0% 10.1% Assets) * Excludes non-cash charges re
Slide 9: Net Spread (Margin) – FY 2009
Net Spread (Margin) – FY 2009 ($ Million) FY 2008 FY 2009 % Change Basic Lease Rents 520.7 581.9 12% Less: Interest Expense* (161.1) (115.9) (28%) Net Spread (Margin) 359.6 466.0 30% Average Lease Assets 3,580 4,547 27% Annualized Margin (% Lease 10.0% 10.2% Assets) * Excludes non-cash charges relat
Slide 10: Sales
Sales ($ Million) 4Q 2008 4Q 2009 FY 2008 FY 2009 Aircraft Sales 130.4 76.5 490.0 149.1 Engine Sales 13.9 5.0 27.6 52.1 Part Sales 26.6 34.4 133.0 123.6 Total Sales Revenue 170.9 115.9 616.6 324.8 Total Gain from Sales 24.3 46.3 110.2 *75.9 * Includes gain on sale from sale of forward order position
Slide 11: Leasing Expenses and SG&A
Leasing Expenses and SG&A ($ Million) 4Q 2008 4Q 2009 FY 2008 FY 2009 Operating lease in costs 3.3 3.2 14.5 13.1 Leasing expenses * 32.4 13.3 55.6 65.2 SG&A 31.6 33.4 128.3 116.2 Other Expenses ** 0.0 1.1 0.0 3.0 Total Leasing Expenses 67.3 51.0 198.4 197.5 and SG&A * Details on following page ** Ac
Slide 12: Leasing Expenses
Leasing Expenses ($ Million) 4Q 2008 4Q 2009 FY 2008 FY 2009 Default Related Leasing 14.4 4.3 15.5 19.9 Expenses * Normal Transition Costs 4.2 4.2 12.4 12.9 Lessor Maintenance 6.2 0.8 10.6 12.5 Contributions AeroTurbine & Other 7.6 4.0 17.1 19.9 Leasing Costs Total Leasing Expenses 32.4 13.3 55.6 65
Slide 13: Impact from Defaults & Restructuring
Impact from Defaults & Restructuring ($ Million) 4Q 2009 FY 2009 FY 2008 Lost Basic Lease Rents (0.9) (5.0) (14.3) (Net of Security Deposits) Provision for Doubtful 0.0 0.0 (1.1) Accounts Receivable Maintenance Rents 0.0 0.0 12.2 Default Related Leasing (4.3) (19.9) (15.5) Expenses Total Impact (pre
Slide 14: Tax Rate
Tax Rate FY 2008 FY 2009 Tax Rate for Aircraft 2.0% Charge 0.0% Tax Rate for Engine/Parts (56.8%) Income 36.8% Charge Blended Tax Rate (0.3%) Income 1.9% Charge Note: The positive 2008 tax rate resulted because the most significant portion of the charges relating to airline defaults and inventory im
Slide 15: Total Assets and Number of Aircraft/Engines
Total Assets and Number of Aircraft/Engines Year-End 2008 Year-End 2009 ($ Million) 8,000 6,770 6,000 5,411 Total Assets 25% increase over Owned and on 4Q 2008 Balance Sheet 4,000 2,000 0 Number of Aircraft Owned, On Order, Managed, Decrease in units largely driven by Contracted, on LOI (units) 297
Slide 16: Purchases of Aviation Assets
Purchases of Aviation Assets ($ Million) Full Year 2009 Committed 2010 Aircraft Related 1,794 2,189 Engines/Airframes 60 22 Total Purchases 1,854 2,211 Number of Aircraft 41 47 Purchases (Units) 16
Slide 17: Portfolio Management Metrics Owned Aircraft
Portfolio Management Metrics Owned Aircraft Lease Portfolio FY 2008 FY 2009 Utilization Rate 97.7% 98.1% Portfolio Yield* 16.9% 14.3% Average Term (Months) – New Leases for New Aircraft 124 **139 – New Leases for Used Aircraft 65 *** 50 * Lease revenue divided by average book value of flight equipme
Slide 18: Cash
Cash ($ Million) FY 2009 Cash and Cash Equivalents at Dec. 31, 2009 $182.6 Total Cash Balance at Dec. 31, 2009 (Incl. Restricted Cash) $323.4 Operating Cash Flow for FY 2009 $399.2 18
Slide 19: Debt and Equity
Debt and Equity ($ Million) 4Q 2008 4Q 2009 Total Debt at Year-End 3,790 4,847 Average Cost of Debt* 4.7% 2.5% Shareholder Equity at Year-End 1,126 1,413 Debt / Equity Ratio at Year-End** 3.4 to 1 3.4 to 1 * Interest expense divided by average debt balance, excluding mark-to-market on interest rate
Slide 20: 2010 Financial Outlook
2010 Financial Outlook AerCap expects to grow earnings based on the committed aircraft purchases and planned merger with Genesis, despite the continued uncertainties of the financial markets. Set forth below are the anticipated drivers for AerCap’s 2010 financial performance, which are subject to ch
Slide 21: Full Year 2009 Highlights
Full Year 2009 Highlights Net income was $150.2 million for full year 2009, exclusive of the impact relating to mark-to-market of interest rate caps and share-based compensation Earnings per share for full year 2009 was $1.77, exclusive of the impact relating to mark-to-market of interest rate c
Slide 22: Appendix
Appendix * (AERCAP 22
Slide 23: Aircraft and Engine Transactions During FY 2009
Aircraft and Engine Transactions During FY 2009 32 aircraft lease agreements executed 9 letters-of-intent for lease outstanding 44 aircraft and 50 engines delivered to lessees 41 aircraft and 25 engines purchased 15 aircraft (including 5 forward order positions) and 15 engines sold from ou
Slide 24: Forward Order Aircraft
Forward Order Aircraft 4 Additional Options Options (1) Purchases (2) 5 5 (Available) Available LOI 20 3 Available Sold 57 12 Sold 9 Lease LOI Agreements 4 Lease 41 Sold Agreements 7 51 Lease Agreements Delivered 25 41 Delivered Delivered 15 2 As of As of As of December 31, 2007 December 31, 2008 De
Slide 25: High Quality and Well Diversified Portfolio
High Quality and Well Diversified Portfolio Aircraft Portfolio as of December 31, 2009 77% narrow body – “Work Aircraft under Horses” of industry Number of Number of Purchase Owned % Net Book Managed Aircraft Contract or Total High share of liquid / remarket- Aircraft Value Aircraft on Order LOI
Slide 26: Genesis Transaction Update
Genesis Transaction Update All three required regulatory approvals obtained (Germany, US and Turkey) Registration statement declared effective by SEC on 3 February 2010 Transitional activities on track All Genesis employees agreed to severance Closing expected end of March 2010 26