Aercap Holdings N.v. · NYSE:AER
Aercap — Q1 2014 Earnings Presentation
21 slides from Aercap's earnings presentation, May 6, 2014
Slide 1: First Quarter 2014 Earnings Call
AerCap Holdings N.V. First Quarter 2014 Earnings Call » May 6, 2014 1
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 Highlights
First Quarter Highlights • Adjusted net income was $79.9 million for the first quarter of 2014. • Adjusted earnings per share were $0.70 for the first quarter of 2014, an increase of 17% over the first quarter of 2013. • Key Highlights: • The debt to equity ratio was 2.5 to 1 at March 31, 2014, comp
Slide 4: Net Income
Net Income ($ Millions) 1Q 2014 1Q 2013 Reported Net Income 54.7 67.5 Adjusted* for: mark-to-market on interest rate caps 4.3 (1.3) cost of share-based compensation 2.1 1.8 ILFC transaction expenses 18.8 - Adjusted Net Income** 79.9 68.0 * The adjustments are reduced for the tax impact as well as th
Slide 5: Basic Earnings Per Share
Basic Earnings Per Share 1Q 2014 1Q 2013 Earnings Per Share $0.48 $0.59 Adjusted for: mark-to-market on interest rate caps, share based compensation and ILFC transaction expenses $0.22 $0.01 Adjusted Earnings Per Share* $0.70 $0.60 Average Shares Outstanding (Million) 113.6 113.4 * First quarter adj
Slide 6: Revenue
Revenue ($ Millions) 1Q 2014 1Q 2013 Basic Lease Rents* 234.9 212.9 Maintenance Rents and Other Receipts 14.2 13.9 Net Gain on Sale of Assets 9.8 11.0 Management Fees and Interest Revenue 5.8 7.1 Other Revenue 0.1 0.9 Total Revenue 264.8 245.8 * First quarter 2014 basic lease rents increased by 10%
Slide 7: Net Interest Margin (Net Spread)
Net Interest Margin (Net Spread) ($ Millions) 1Q 2014 1Q 2013 Net Interest Margin (Net Spread)* 176.8 152.9 Average Lease Assets 8,129 7,379 Annualized Margin % 8.7% 8.3% * Net Interest Margin (Net Spread) is basic lease rents less interest expense, excluding non-cash charges relating to the mark- t
Slide 8: Sales of Aircraft
Sales of Aircraft AerCap continues to optimize its portfolio through the sale of aircraft: In 1Q 2014: we sold one aircraft (a new Airbus A330-300 ) from our owned portfolio and three aircraft from our managed portfolio (one Boeing 737-400, one Boeing 737-300 and one Boeing 767- 300ER). In 1Q 2013:
Slide 9: Other Expenses and Taxes
Other Expenses and Taxes ($ Millions) 1Q 2014 1Q 2013 Leasing Expenses 12.8 14.9 SG&A 23.1 20.2 Impairment - 2.7 Transaction Expenses* 21.5 - 1Q 2014 FY 2013 Blended Tax Rate** 8.5% 8.4% * Transaction expenses relate to the costs incurred relating to the ILFC transaction. ** The blended effective ta
Slide 10: Cash
Cash ($ Millions) Q1 2014 Q1 2013 Cash and Cash Equivalents at Quarter-end* 320.1 375.4 (Excl. Restricted Cash) Total Cash Balance at Quarter-end 587.1 665.3 (Incl. Restricted Cash) Operating Cash Flow for the quarter 158.8 154.0 * Undrawn working capital facilities of $245 million were also availab
Slide 11: Debt and Equity
Debt and Equity ($ Millions) 1Q 2014 1Q 2013 Total Debt at Quarter-End 6,204 5,794 Average Cost of Debt (including ~0.4% relating to 3.9% 4.0% amortization of debt issuance costs)* Equity 2,486 2,194 Debt / Equity Ratio 2.5 to 1 2.6 to 1 Although our total assets increased by $0.8 billion (~10%) yea
Slide 12: Supplemental Information
Supplemental Information 12
Slide 13: Portfolio Development
Portfolio Development 1Q 2014 FY 2013 FY 2012 Total Assets ($ billion) 9.5 9.5 8.6 Average Age of Owned Aircraft (Years) 5.6 5.4 5.1 No. Owned Aircraft Sold 1 14 59 Book Value of Owned Aircraft Sold ($ billion) 0.1 0.6 1.4 Completed Purchases ($ billion) 0.2 1.8 1.1 Purchases Outstanding* ($ billion
Slide 14: Aircraft Transactions First Quarter
Aircraft Transactions First Quarter 2014 • 15 lease agreements executed • Seven aircraft delivered to lessees • Three aircraft purchased • One aircraft sold from our owned portfolio and three from our managed portfolio 14
Slide 15: Total Assets and Number of Aircraft
Total Assets and Number of Aircraft Q1 2014 Q1 2013 ($ Millions) Total Assets Owned and on Balance Sheet (Units) Number of Aircraft Owned, On Order, Managed, AerDragon and Contracted 377 341 15
Slide 16: High Quality and Well-Diversified Portfolio
High Quality and Well-Diversified Portfolio Aircraft Portfolio as of March 31, 2014 Number of Aircraft Number of % Net Book Managed & Aircraft on under Sale / Total Owned Value AerDragon Order* Purchase Aircraft Aircraft Aircraft Contract Airbus A300 Freighter 0 0.0% 1 0 0 1 Airbus A319 24 7.3% 6 0
Slide 17: Aircraft Portfolio Valuation
Aircraft Portfolio Valuation As of March 31, 2014 Carrying ($ Billions) Value or Price Paid Valuation Difference $ Billion $ Billion % Valuation Based on Average of three Appraisers 10.1 11.2 11% Valuation Based on NPV of Contracted Rent plus Residual Value Using Average of 10.1 11.4 13% three Appra
Slide 18: Committed Aircraft Purchases
Committed Aircraft Purchases Total Actual Remaining Remaining Q1 2014 2014 as of March 31, 2014* Aircraft Purchases ($ Millions) 165 534 3,325 Number of Aircraft Purchases (Units) 3 7 41 * Consists of $0.8 billion in 2015, $1.0 billion in 2016, and $1.0 billion between 2017 and 2018. Includes five B
Slide 19: Portfolio Management Metrics for Owned Aircraft
Portfolio Management Metrics for Owned Aircraft Lease Portfolio Q1 2014 Q1 2013 Utilization Rate* 98.9% 99.6% Portfolio Yield** 12.3% 12.3% Average Lease Term (Previous 12 Months) • New Leases for New Aircraft (Months) 163*** 150 • Leases for Used Aircraft (Months) 60**** 56 * Utilization rate weigh
Slide 20: Leasing Expenses
Leasing Expenses ($ Millions) 1Q 2014 1Q 2013 Default and Restructuring 2.2 1.6 Related* Normal Transition Costs 3.4 6.4 Lessor Maintenance 6.1 6.3 Contributions Other Leasing Costs 1.0 0.6 Leasing Expenses 12.8 14.9 *Default costs incurred in the first quarter 2014 related to three aircraft, two of
Slide 21: SG&A
SG&A ($ Millions) 1Q 2014 1Q 2013 Mark-to-market of foreign currency hedges, foreign currency cash balances 0.3 0.6 and other derivatives Share-based compensation expenses 2.4 2.1 Other selling, general and 20.4 17.5 administrative expenses Selling, General and Administrative 23.1 20.2 Expenses 21