Fly Leasing — Investor Presentation (September 2011)
20 slides from Fly Leasing's investor presentation, Sep 8, 2011
Slide 1: FLY Leasing Limited September 2011 New York
FLY Leasing Limited September 2011New York
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: FLY Leasing Overview
FLY Leasing Overview FLY acquires and leases modern, fuel-efficient aircraft on long term contracts to airlines world-wideFleet growing to 109 aircraft valued at c. $3 billion:60 aircraft currently owned (c. $1.6 billion)49 aircraft under contract to be acquired (c. $1.4 billion)Strong record of sha
Slide 4: On August 4th, FLY Announced Agreement to Acquire Leased Aircraft
On August 4th, FLY Announced Agreement to Acquire 49 Leased Aircraft
Slide 5: Transformational Acquisition Enhances Shareholder Value
Transformational Acquisition Enhances Shareholder Value
Slide 6: New Portfolio Creates A Stronger, More Attractive Fleet
(CHART) (CHART) New Portfolio Creates A Stronger, More Attractive Fleet Grows contracted annualized lease rentals by 80%, from $205 million to c. $370 millionIncreases portfolio size by 82%, from 60 to 109 aircraftThe portfolio is predominantly in-demand, narrowbody aircraft on long-term leasesIncre
Slide 7: Combined Portfolio - Modern Fleet in High Demand
Combined Portfolio - Modern Fleet in High Demand Portfolio data as of 30 June 2011. Current FLY data weighted by net book value; acquired portfolio data weighted by current market value appraisals.Does not include the four B767 aircraft owned by a Joint Venture in which FLY has a 57% interest.One A3
Slide 8: Combined Portfolio Will Consist of Strong Credits and Diversified Exposure
FLY Lessee % of rentals 6.7% 6.0% 5.4% 5.3% 4.8% 4.4% 4.0% 3.8% 3.6% 3.4% Combined Portfolio Will Consist of Strong Credits and Diversified Exposure Total of 53 lessees in 29 countriesRemaining average lease term of 4.0 years (1) Note: The table above is pro forma for the 49 aircraft currently under
Slide 9: Proven Track Record of Enhancing Shareholder Value
Proven Track Record of Enhancing Shareholder Value - Capitalizing on Aviation and Financial Cycles Aviation and Financial Cycles Aviation and Financial Cycles
Slide 10: FLY's Current Financing Overview
FLY's Current Financing Overview Facility Key Covenants $853m SecuritizationReduced to $632m through repurchases and repayments (1)Minimal amortization until August 2012Low margin, hedged interest ratesNo refinancing obligation Non-recourseNo appraised value testsDebt Service Coverage Ratio of 1.8 :
Slide 11: BBAM Services FLY's Aircraft - Scale and Alignment of Interests
BBAM Services FLY's Aircraft - Scale and Alignment of Interests FLY's portfolio is serviced by BBAM, the world's third largest lessorBBAM is 85% owned by its senior management through Summit Aviation PartnersFLY acquired 15% of BBAM in April 2010FLY's investment in BBAM has been significantly profit
Slide 12: BBAM - Providing FLY with a Global, Full Service Platform
BBAM - Providing FLY with a Global, Full Service Platform World's 3rd largest aircraft lease manager with over 450 aircraft under management~100 employees in nine offices with coverage of all regionsExtensive relationships with 200+ airlines around the world, built over 20+ yearsLeader in Sale & Lea
Slide 13: Return of Solid Industry Fundamentals
Return of Solid Industry Fundamentals 2010A Airline Profits $18 billion 2011F Airline Profits $4 billion 2010A Passenger Traffic Growth 11.6% 2011F Passenger Traffic Growth 4.4% IATA Financial Forecast 2010 to 2030 Worldwide Annual Growth Rates (CHART) Sources: Boeing Current Market Outlook (2011),
Slide 14: Aircraft Leasing Plays an Increasingly Important Role for Airlines
Fleets under lessor management have grown from less than 100 aircraft in the 1970s to more than 7,000 today Over 56% of airlines (~400 carriers) use aircraft on operating leases Why Airlines Lease Why Airlines Lease Fleet Flexibility Ability to quickly address changing equipment needs Financial Flex
Slide 15: FLY's Strategy for Enhancing Shareholder Value
FLY's Strategy for Enhancing Shareholder Value
Slide 16: Appendix
a Appendix “Fy Leasing
Slide 17: FLY - First Half 2011 Financial Results
FLY - First Half 2011 Financial Results ($ in thousands, except per share data) Six Months ended June 30, 2011 Six Months ended June 30, 2010 Revenues Operating lease revenue $101,762 $115,683 Equity earnings from Unconsolidated Joint Venture 1,337 580 Gain on sale of option to purchase notes payabl
Slide 18: FLY - Selected Balance Sheet Information
FLY - Selected Balance Sheet Information ($ in thousands, except per share data) June 30, 2011 (Unaudited) December 31, 2010 (Audited) Cash and cash equivalents $187,544 $164,107 Restricted cash and cash equivalents 156,533 164,935 Flight equipment, net 1,620,285 1,613,458 Other assets 34,653 35,724
Slide 19: 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 and debt issue costs, non-cash share- based compensation, and deferred income taxes. In addition, non-cash gains on purchases of notes p
Slide 20: FLY Leasing Investor Relations Contact
FLY Leasing (NYSE: FLY) Investor Relations Contact: Matt Dallas +1 203-769-5916Matt.Dallas@bbam.com