Fly Leasing — Investor Presentation (October 2010)
18 slides from Fly Leasing's investor presentation, Oct 4, 2010
Slide 1: FLY Leasing Overview October 2010
FLY Leasing Overview October 2010
Slide 2: Caution Concerning Forward-looking Statements
Caution Concerning Forward-looking Statements This presentation contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by words such as "expects," "anticipates," "intends," "plans," "believes," "s
Slide 3: Overview
Overview Overview Geographic Diversity -33 Lessees (4) Notes: Each includes one freighter. One A330-200, one B747-400, one B767-300ER and one B777-200ER. During the 3rd Quarter of 2010, three aircraft were sold. Based upon percent of the book value of aircraft and geographic location of lessees. Of
Slide 4: Investment Highlights
Investment Highlights ‘Sgmoder fuel eficlentaireratt ‘a5%narravbady BEAM's team has 20 years oforigination, management and financing experience BEAM manages over 380 aircratt Under Stror ment Rentals fom 33 esseesin 21 countiies 4.4 year average remaining leaseterm $9135 million in annualized rental
Slide 5: Recent Portfolio Activity
Recent Portfolio Activity FLY has taken advantage of improving industry and financing conditions to make strategic aircraft dispositions and acquisitions.
Slide 6: Shareholder Enhancement Initiatives
Shareholder Enhancement Initiatives Shareholder Enhancement Initiatives Notes: Details of these sales will be reported in the 3rd Quarter financial results.
Slide 7: Quarterly Shareholder Enhancement Activities Since IPO
Quarterly Shareholder Enhancement Activities Since IPO Cumulative Totals: Dividends paid of $3.40 / share 6.97m share repurchased at an average price of $7.28 $169.4m par amount of debt purchased for $83.0m Sale of option for cash gain of $12.5m
Slide 8: FLY's Investment in BBAM
FLY's Investment in BBAM FLY acquired 15% of BBAM for $8.75 million in April 2010 BBAM is a privately-held company formed by senior executives of Babcock & Brown Aircraft Management LLC, formerly the aviation division of Babcock & Brown Limited BBAM manages over 380 leased aircraft, including those
Slide 9: BBAM - Overview
BBAM - Overview BBAM is the world's third-largest manager of leased commercial jet aircraft The management team has worked together since 1991 to provide management and remarketing services to global aircraft investors ILFC GECAS BBAM RBS ACG CIT BOC AerCap AWAS Aircastle East 45.9 42.8 11 8.3 7.3 7
Slide 10: Current Financing and Financing Outlook
Current Financing and Financing Outlook Committed Financing Outlook BBAM's management team has 20 years of experience and relationships with aviation banks FLY's debt has no near-term bullet maturities The recovery in aircraft finance markets is progressing nicely Bank market is open and more banks
Slide 11: Strategy for the Future
Strategy for the Future 85% atthe portoliais madern, tel-effcient, naowbadyeircratt Asset prices are recovering quickly—nowisthetimeto "playthe cycle" Focus on aircratt with global user base; dont gamble on newtypes: FLYs porttaliohas performed well in atough environment Firm onterms: creditreview,
Slide 12: The Airline Industry is Beginning to Strengthen
The Airline Industry is Beginning to Strengthen The Airline Industry is Beginning to Strengthen August 2010 traffic statistics show demand continues to strengthen for passenger and cargo traffic, albeit at a slower pace than the rapid improvements experienced earlier this year. Compared to August 20
Slide 13: The Airline Industry is Positively Correlated with GDP Growth
The Airline Industry is Positively Correlated with GDP Growth The airline industry is cyclical as air travel is directly correlated to economic activity When the economy prospers, airline traffic increases more than other sectors of the economy, while during a recession, traffic is affected dispropo
Slide 14: Twenty Year Fundamentals Remain Strong - Boeing's View
Twenty Year Fundamentals Remain Strong - Boeing's View Twenty Year Fundamentals Remain Strong - Boeing's View Source: Boeing Current Market Outlook, 2010. 2009 to 2029 Worldwide Annual Growth Rates
Slide 15: FLY - Q2 2010 Financial Results
FLY - Q2 2010 Financial Results SG&A largely fixed and scalable, 9.6% of total revenue for six months ending June 30, 2010 Servicing fees predictable - largely based on a fixed percentage of lease revenues Interest rates hedged, margins fixed ($ in thousands, except per share data) Six Months ended
Slide 16: FLY - Available Cash Flow (a Non-GAAP Financial Measure)
FLY - Available Cash Flow ( a Non-GAAP Financial Measure) FLY defines Available Cash Flow ("ACF") as net income plus depreciation, amortization of lease incentives, non-cash share-based compensation, debt issue costs, and deferred income taxes. In addition, non-cash gains on purchases of notes payab
Slide 17: FLY - Selected Balance Sheet Information
FLY - Selected Balance Sheet Information Unrestricted cash increased by 20% from year end and continues to grow monthly, despite significant investments in the business and dividends paid Notes payable reduced by $169.4 million (20.5%) in 2009 through debt repurchases ($ in thousands, except per sha
Slide 18: FLY Leasing Investor Relations Contact
FLY Leasing (NYSE: FLY) Investor Relations Contact: Matt Dallas +1 203-769-5916 Matt.Dallas@bbam.com