Aercap Holdings N.v. · NYSE:AER
Aercap — Q3 2013 Earnings Presentation
24 slides from Aercap's earnings presentation, Nov 4, 2013
Slide 1: Third Quarter 2013 Earnings Call
AerCap Holdings N.V. Third Quarter 2013 Earnings Call » NOVEMBER 4, 2013 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: Highlights
Highlights • Adjusted net income for the third quarter of 2013 was $89.4 million, and was $224.5 million for the first nine months of 2013, both record highs. • Adjusted earnings per share were $0.79 for the third quarter of 2013, an increase of 63% over the third quarter of 2012 and adjusted earnin
Slide 4: Net Income
Net Income ($ Millions) 3Q 2013 3Q 2012 Reported Net Income 83.6 57.9 Adjusted for: mark-to-market on interest rate caps* 3.7 2.7 Adjusted for: cost of share-based compensation* 2.1 1.6 Adjusted Net Income** 89.4 62.2 * The adjustment is reduced for the tax impact as well as the amount relating to J
Slide 5: Basic Earnings Per Share
Basic Earnings Per Share 3Q 2013 3Q 2012 Earnings Per Share $0.74 $0.45 Adjusted for: mark-to-market on interest rate caps and $0.05 $0.03 share based compensation Adjusted Earnings Per Share* $0.79 $0.48 Average Shares Outstanding (Million) 113.5 128.4 * Third quarter adjusted earnings per share in
Slide 6: Revenue
Revenue ($ Millions) 3Q 2013 3Q 2012 Basic Lease Rents* 234.3 239.5 Maintenance Rents and Other Receipts 23.7 24.1 Net Gain on Sale of Assets 10.7 0.6 Management Fees and Interest Revenue 6.1 4.1 Other Revenue** 4.5 1.2 Total Revenue 279.3 269.5 * The small decrease in basic lease rents was driven p
Slide 7: Net Interest Margin (Net Spread)
Net Interest Margin (Net Spread) Third Quarter 2013 ($ Millions) 3Q 2013 3Q 2012 Net Interest Margin (Net Spread)* 174.8 176.5 Average Lease Assets 7,993 8,046 Annualized Margin % 8.75% 8.77% * Net Interest Margin (Net Spread) is basic lease rents less interest expense, excluding non-cash charges re
Slide 8: Sales of Aircraft
Sales of Aircraft AerCap continues to optimize its portfolio through the sale of aircraft: Through year-to-date September 2013: we sold two A330s, nine B737-800s, one B737-400 and one MD-11 freighter aircraft. Through year-to-date September 2012: we sold three A330 aircraft, two A320 aircraft, and t
Slide 9: Other Expenses and Taxes
Other Expenses and Taxes ($ Millions) 3Q 2013 3Q 2012 Leasing Expenses* 5.5 23.3 SG&A 23.4 22.3 Impairment** 9.2 7.4 YTD 2013 FY 2012 Blended Tax Rate*** 8.5% 5.2% * Decrease in leasing expenses was due primarily to lower expenses relating to lessee defaults and restructurings. ** The 3Q 2013 impair
Slide 10: Cash
Cash ($ Millions) 2013 2012 Cash and Cash Equivalents at September 30 318.1 309.7 (Excl. Restricted Cash) Total Cash Balance at September 30 593.3 620.0 (Incl. Restricted Cash) Operating Cash Flow for the Third Quarter 198.1 187.6 10
Slide 11: Debt and Equity
Debt and Equity ($ Millions) 3Q 2013 3Q 2012 Total Debt at Quarter-End 6,232 6,131 Average Cost of Debt (including ~0.4% relating 3.9% 4.0% to amortization of debt issuance costs)* Equity 2,362 2,218 Debt / Equity Ratio 2.6 to 1 2.8 to 1 * Interest expense divided by average debt balance, excluding
Slide 12: 2013 Financial Outlook
2013 Financial Outlook Set forth below are the expected drivers for AerCap’s 2013 financial performance, which are subject to change. • 2013 committed aircraft purchases are ~$1.7 billion. • As a result of the ALS sale, 2013 basic lease rents are expected to decrease ~3% over 2012. • 2013 maintenanc
Slide 13: 2014 Financial Outlook
2014 Financial Outlook Set forth below are the expected drivers for AerCap’s 2014 financial performance, which are subject to change. • 2014 committed aircraft purchases are ~$0.6 billion. • 2014 basic lease rents are expected to increase ~7% over 2013. • 2014 maintenance contribution is expected to
Slide 14: Supplemental Information
Supplemental Information 14
Slide 15: Portfolio Development
Portfolio Development 2011 2012 YTD 2013 Total Assets ($ billion) 9.1 8.6 9.3 Average Age of Owned Aircraft (Years) 5.5 5.1 5.4 No. Aircraft Sold 21 59 13 Book Value of Aircraft Sold ($ billion) 0.3 1.4 0.5 Completed Purchases ($ billion) 0.9 1.1 1.6 Committed Purchases Outstanding* ($ billion) 2.5
Slide 16: Aircraft Transactions Year-to-Date September 2013
Aircraft Transactions Year-to-Date September 2013 • 44 lease agreements executed • 41 aircraft delivered to lessees • 32 aircraft purchased • 13 aircraft sold from our owned and 10 from managed portfolios 16
Slide 17: Total Assets and Number of Aircraft
Total Assets and Number of Aircraft Q3 2013 Q3 2012 9,287 9,134 10,000 ($ Millions) 8,000 Total Assets 6,000 Owned and on Balance Sheet 4,000 2,000 0 Number of Aircraft Owned, On Order, Managed, AerDragon, Contracted and LOI (units) 373 337 17
Slide 18: High Quality and Well-Diversified Portfolio
High Quality and Well-Diversified Portfolio Aircraft Portfolio as of September 30, 2013 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 7.6% 6
Slide 19: Committed Aircraft Purchases
Committed Aircraft Purchases Committed YTD Remaining Committed 2014 & 2013 2013 2013 Beyond* Aircraft Purchases 1,567 170 1,737 3,319 ($ Millions) Number of Aircraft 32 4 36 43 Purchases (Units) * Consists of $0.6 billion in 2014, $0.8 billion in 2015, and $1.9 billion between 2016 and 2018. Include
Slide 20: Portfolio Management Metrics for Owned Aircraft
Portfolio Management Metrics for Owned Aircraft Lease Portfolio YTD 2013 FY 2012 Utilization Rate* 99.7% 98.5% Portfolio Yield** 12.5% 12.7% Average Term (Previous 12 Months) • New Leases for New Aircraft (Months) 165*** 149 • New Leases for Used Aircraft (Months) 57**** 63 * Utilization rate weight
Slide 21: Leasing Expenses
Leasing Expenses ($ Millions) 3Q 2013 3Q 2012 Default Related 0.7 16.4 Normal Transition Costs 4.3 2.9 Lessor Maintenance Contributions - 1.9 Other Leasing Costs 0.5 2.1 Total Leasing Expenses 5.5 23.3 21
Slide 22: Impact from Defaults and Restructuring
Impact from Defaults and Restructuring ($ Millions) 3Q 2013 3Q 2012 YTD 2013 YTD 2012 Default and Restructuring Related Lost Basic Lease Rents (0.1) (2.8) (0.6) (10.3) (Net of Security Deposits) Maintenance Rents Held 0.6 8.5 0.6 17.4 Impairment - (6.5) - (6.5) Default Related Leasing Expenses* (0.7
Slide 23: SG&A
SG&A ($ Millions) 3Q 2013 3Q 2012 Mark-to-market of: foreign currency hedges, foreign currency cash (0.4) - balances and other derivatives Share-based compensation expenses 2.4 1.8 Other Selling, General and 21.4 20.5 Administrative Expenses Total Selling, General and 23.4 22.3 Administrative Expens
Slide 24: Thank you
Thank you Confidential property of the company, not for disclosure or use without permission 24 GES VES SIA,