Aercap Holdings N.v. · NYSE:AER
Aercap — Q1 2009 Earnings Presentation
26 slides from Aercap's earnings presentation, May 7, 2009
Slide 1: First Quarter 2009 Earnings Call
AerCap Holdings N.V. First Quarter 2009 Earnings Call May 7, 2009
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 Financial 2009 Highlights
First Quarter Financial 2009 Highlights Net income was $31.5 million for first quarter 2009, exclusive of non- cash charges relating to mark-to-market of interest rate caps and share-based compensation Earnings per share for first quarter 2009 were $0.37 on the same basis Basic rents in first
Slide 4: Aircraft and Engine Transactions During First Quarter 2009
Aircraft and Engine Transactions During First Quarter 2009 8 new aircraft lease agreements & letters-of-intent executed 13 aircraft and 8 engines delivered to lessees 10 aircraft and 4 engines purchased 4 engines sold from our owned portfolio 4
Slide 5: Forward Order Aircraft
Forward Order Aircraft Options Options Options (1) 5 5 5 Available Available 20 6 Available LOI 57 16 Sold Sold 9 9 LOI 4 Lease Lease Sold Agreements Agreements 7 51 39 Lease Agreements Delivered 25 Delivered 25 Delivered 15 2 As of As of As of December 31, 2007 December 31, 2008 May 7, 2009 51 Airc
Slide 6: AerVenture Update
AerVenture Update During March 2009, our joint venture partner in AerVenture failed to make a capital contribution of $80 million as required under the joint venture agreement Under the terms of the agreement, our joint venture partner lost its voting rights and economic rights in AerVenture wit
Slide 7: Net Income
Net Income ($ Million) 1Q 2008 1Q 2009 Total Net Income 50.9 30.0 Mark-to-market on interest rate caps 7.6 0.7 Share-based compensation 1.4 0.8 Net Income excluding above 59.9 31.5* charges * Decrease in first quarter 2009 net income as compared to first quarter 2008 explained on following page 7
Slide 8: Net Income Drivers
Net Income Drivers ($Million – Amounts are After-Tax) 1Q 2008 1Q 2009 Variance Gain from Asset Sales 30.0 7.7 (22.3) Impairments 0.0 (6.8) (6.8) Impact from 2008 Defaults 0.0 (6.4) (6.4) All Other Income (Up 24%) 29.9 37.0 7.1 Total Net Income* 59.9 31.5 (28.4) * Excludes non-cash charges relating t
Slide 9: Earnings Per Share
Earnings Per Share 1Q 2008 1Q 2009 Earnings Per Share* $0.60 $0.35 Adjusted for: mark-to-market on interest rate caps and share 0.11 0.02 based compensation Earnings Per Share $0.71 $0.37 excluding above charges* Average Shares Outstanding 85.0 85.0 (Million) 9
Slide 10: Total Revenue
Total Revenue ($ Million) 1Q 2008 1Q 2009 Basic Lease Rents 127 142 Basic rents up 12% over Maintenance/End-of-Lease Revenue 17 20 first quarter Sales Revenue 143 42 2008 Management Fees and Interest 8 5 Income Other Revenue 0 0 Total Revenue 295 209 10
Slide 11: Net Spread (Margin)
Net Spread (Margin) ($ Million) 1Q 2008 1Q 2009 % Change Basic Lease Rents 127 142 12% Less: Interest Expense* (41) (29) (29%) Net Spread (Margin) 86 113 31% Average Lease Assets 3,290 4,145 26% Annualized Margin(% Lease Assets) 10.4% 10.9% * Excludes non-cash charges relating to the mark-to-market
Slide 12: Sales Revenue
Sales Revenue ($ Million) 1Q 2008 1Q 2009 Aircraft Sales 118 - Engine Sales - 11 Part Sales 25 31 Total Sales Revenue 143 42 Total Gain from Sales 32 8 12
Slide 13: Leasing Expenses and SG&A
Leasing Expenses and SG&A 1Q 2008 1Q 2009 % Change ($ Million) Operating lease in costs 3.6 3.3 (8%) Leasing expenses 6.4 19.2* 200% SG&A 30.6 27.2** (11%) Total Leasing expenses and SG&A 40.6 49.7 22% * Increase in Leasing Expenses was caused primarily by airline defaults that occurred in 2008, les
Slide 14: Impairment Charges offset by End-of-Lease Payments
Impairment Charges offset by End-of-Lease Payments Numbers Relate to Three Older A320 Aircraft ($ Million) Dec. 31, 2008 Mar. 31, 2009 Expected Future Cash Flows End of Lease - End of Lease Payments 7.2 0.0 Payments of $7.2 Million Received - Remaining Rentals/Residual Value 29.0 28.3 in 1Q 2009 (pa
Slide 15: Impact from Defaults & Restructuring
Impact from Defaults & Restructuring ($ Millions) 2008 Total 1Q 2009 Lost Basic Lease Rents (Net of Security Deposits) (14) (2) Provision for Doubtful Accounts Receivable (1) 0 Maintenance Rents 12 0 Leasing Expenses (6) (15) Total (18) (8) Accounting Specifics - Security deposits are applied agains
Slide 16: Tax Rate
Tax Rate FY 2008 1Q 2009 Tax Rate for Aircraft 2.0% Charge 2.3% Charge Tax Rate for Engine/Parts (56.8%) Income 34.8% Charge Blended Tax Rate (0.3%) Income 5.2% Charge Note: The tax income in 2008 resulted because the most significant portion of the charges relating to airline defaults and inventory
Slide 17: Total Assets and Number of Aircraft/Engines
Total Assets and Number of Aircraft/Engines 1Q 2008 1Q 2009 ($ Million) 5,790 5,000 4,595 26% increase over 1Q 2008 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) 320 295 sales of a
Slide 18: Purchases of Aviation Assets
Purchases of Aviation Assets ($ Million) 1Q 2009 Committed 2009 Aircraft Related 326 1,735 Engines/Airframes 17 17 Total Purchases 343 1,752 Number of Aircraft 10 37 Purchases (Units) 18
Slide 19: Aircraft Portfolio Valuation (as of March 31, 2009)
Aircraft Portfolio Valuation (as of March 31, 2009) ($ Billion) Carrying Difference/ External Value or Appraisers Appraisers Price Paid Value* A320 Family, A330s, & B737NGs 6.53 7.90 17% (~95% of Portfolio) B757s, B767s, A300s (~3.0% of Portfolio) 0.17 0.20 15% B737 Classics and All Others 0.16 0.18
Slide 20: Portfolio Management Metrics Owned Aircraft
Portfolio Management Metrics Owned Aircraft March YTD Lease Portfolio FY 2008 2009 Utilization Rate 97.7% 97.8% Portfolio Yield* 16.9% 15.6% Average Term (Months) – New Leases for New Aircraft 124 120** – New Leases for Used Aircraft 65 45*** * Lease revenue divided by average book value of flight e
Slide 21: Debt and Equity
Debt and Equity ($ Million) 1Q 2008 1Q 2009 Total Debt 3,044 4,134 Average Cost of Debt in First Quarter* 5.4% 2.8% Equity 1,033 1,161 Debt / Equity Ratio 3.0 to 1 3.6 to 1** * Interest expense divided by average debt balance, excluding mark-to-market on interest rate caps ** Debt/Equity ratio is 3.
Slide 22: Recent Funding/Cash Initiatives
Recent Funding/Cash Initiatives An $846 million funding arrangement utilizing European Export Credit Agency guarantees was closed in first quarter 2009 to finance 20 A320 aircraft delivering 2009 through 2011 $106 million of financing for pre-delivery payments on four A330s was closed in first q
Slide 23: Funding/Access to Capital
Funding/Access to Capital Cash ($ Million) 1Q 2009 Cash and Cash Equivalents at March 31, 2009 $175 Total Cash Balance at March 31, 2009 $320 Operating Cash Flow for 1Q 2009 $111 Total Capital Needs ($ Billion) ’09/’10 ’09-’13 Pre-Delivery & Final Delivery Payment Obligations $3.22 $4.02 Less: Commi
Slide 24: 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 25: Appendix
Appendix * (AERCAP 25
Slide 26: High Quality and Well Diversified Portfolio
High Quality and Well Diversified Portfolio Aircraft Portfolio as of March 31, 2009 Managed Owned Portfolio Portfolio 90% narrowbody – “Work Number of Number of Aircraft under Total Owned, Horses” of industry Number % Net Book Aircraft Purchase Managed of Aircraft Owned Value at 31 March, 2009 Num