Top-Thema

14:35 Uhr
GESAMT-​ROUNDUP: Bund greift Bahn-​Management an - Nach Tarifpaket keine Streiks

Fly Leasing Reports Second Quarter 2017 Financial Results

Donnerstag, 10.08.2017 13:05 von PR Newswire

PR Newswire

DUBLIN, Aug. 10, 2017 /PRNewswire/ -- Fly Leasing Limited (NYSE: FLY) ("FLY"), a global lessor of modern, fuel-efficient commercial jet aircraft, today announced its financial results for the second quarter of 2017.

FLY Leasing Limited logo. (PRNewsFoto/FLY Leasing Limited)

Second Quarter 2017 Highlights

  • Net income of $2.9 million, nine cents per share
  • Adjusted Net Income of $9.7 million, 31 cents per share
  • Repurchased nearly two million shares at an average price of $13.07 per share
  • Acquired five aircraft, four of which were new deliveries from manufacturers
  • Upsized Term Loan by $50 million
  • Repriced Term Loan, saving approximately $2 million in annual interest

"We grew our fleet by investing $290 million in five aircraft in the second quarter, including four new aircraft purchased from the manufacturers," said Colm Barrington, CEO of FLY. "The five aircraft are on leases with an average term of 11 years, further enhancing the overall quality of our fleet. We expect to see improved earnings from these aircraft, and others in our pipeline, as the year progresses."

"FLY continues to aggressively repurchase its shares," added Barrington. "In the second quarter, we bought back nearly two million shares for a total of $25.9 million. At quarter end, we repurchased approximately 6.5 percent of the shares outstanding at the beginning of the year. Our average repurchase price of just over $13 per share has helped increase our net book value per share this year to $19.08."

"We are focused on growth and have a strong pipeline of attractive aircraft investments that we expect to announce in the coming months," said Barrington. "We expect to meet our $750 million acquisition target in 2017 – and we have the financial resources to acquire an additional $2 billion of aircraft."

Financial Results

FLY is reporting net income of $2.9 million, or $0.09 per diluted share, for the second quarter of 2017. This compares to net income of $4.7 million, or $0.14 per share, for the same period in 2016. 

Net income for the six months ended June 30, 2017 was $7.9 million, or $0.25 per share.  For the same six month period in 2016, net income was $11.8 million, or $0.35 per share.

Adjusted Net Income

Adjusted Net Income was $9.7 million for the second quarter of 2017, compared to $15.0 million for the same period in the previous year. On a per share basis, Adjusted Net Income was $0.31 in the second quarter of 2017, compared to $0.45 for the second quarter of 2016. For the six months ended June 30, 2017, Adjusted Net Income was $20.8 million, or $0.65 per share, compared to $31.4 million, or $0.93 per share, for the same six month period in 2016.

A reconciliation of Adjusted Net Income to net income determined in accordance with GAAP is shown below.

Share Repurchases

During the first six months of 2017, FLY repurchased 2.1 million shares for approximately $27.2 million at an average price of $13.06 per share. At June 30, 2017, approximately $39.4 million remained under the share repurchase authorization. Subsequent to quarter end, FLY repurchased 740,957 shares at an average price of $13.77 per share through August 9, 2017. As of August 9, 2017, approximately $29 million remained under the share repurchase authorization. 

Financial Position

At June 30, 2017, FLY's total assets were $3.5 billion, including investment in flight equipment totaling $3.0 billion. Total cash at June 30, 2017 was $455.2 million, of which $335.5 was unrestricted.  The book value per share at June 30, 2017 was $19.08

Aircraft Portfolio

At June 30, 2017, FLY's 81 aircraft were on lease to 45 airlines in 29 countries.  The table below does not show the two B767 aircraft owned by a joint venture in which FLY has a 57% interest.

Portfolio at

Jun 30,
2017

Dec 31,
2016

Airbus A319

9

9

Airbus A320

13

12

Airbus A321

3

3

Airbus A330

3

3

Airbus A340

2

2

Boeing 737

41

38

Boeing 757

3

3

Boeing 777

2

2

Boeing 787

5

4

      Total

81

76

At June 30, 2017, the average age of the portfolio, weighted by net book value of each aircraft, was 6.1 years. The average remaining lease term was 6.8 years, also weighted by net book value. At June 30, 2017, the 81 aircraft were generating annualized rental revenue of approximately $352 million. FLY's lease utilization factor was 100% for the second quarter of 2017.

Conference Call and Webcast

FLY's senior management will host a conference call and webcast to discuss these results at 9:00 a.m. U.S. Eastern Time on Thursday, August 10, 2017.  Participants should call +1-253-237-1145 (International) or 800-535-7056 (North America) and enter confirmation code 44952823.  A live webcast with slide presentation will be available on the Events page in the Investor Relations section of FLY's website at www.flyleasing.com. A webcast replay will be available on the company's website for one year.

About FLY

FLY is a global aircraft leasing company with a fleet of modern, high-demand, and fuel efficient commercial jet aircraft.  FLY leases its aircraft under multi-year lease contracts to a diverse group of airlines throughout the world.  FLY is managed and serviced by BBAM LP, a worldwide leader in aircraft lease management and financing.  For more information about FLY, please visit our website at www.flyleasing.com.

Cautionary Statement Regarding Forward-Looking Statements

This press release contains certain "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," "intends," "anticipates," "plans," "believes," "seeks," "estimates," "will," or words of similar meaning and include, but are not limited to, statements regarding the outlook for FLY's future business and financial performance. Forward-looking statements are based on management's current expectations and assumptions, which are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Actual outcomes and results may differ materially due to global political, economic, business, competitive, market, regulatory and other factors and risks. Further information on the factors and risks that may affect FLY's business is included in filings FLY makes with the Securities and Exchange Commission from time to time, including its Annual Report on Form 20-F and its reports on Form 6-K.  FLY expressly disclaims any obligation to update or revise any of these forward-looking statements, whether because of future events, new information, a change in its views or expectations, or otherwise.

Contact:

Matt Dallas
FLY Leasing Limited
+1 203-769-5916
ir@flyleasing.com

 

FLY Leasing Limited

Consolidated Statements of Income

(DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)



Three months
ended
Jun. 30, 2017
(Unaudited)

Three months
ended
Jun. 30, 2016
(Unaudited)

Six months
ended
Jun. 30, 2017
(Unaudited)

Six months
ended
Jun. 30, 2016
(Unaudited)

Revenues





   Operating lease rental revenue

$     81,181

$     73,874

$ 160,502

$   148,507

   End of lease revenue

4,876

1,239

8,082

   Amortization of lease incentives

(1,871)

(2,317)

(3,646)

(5,090)

   Amortization of lease premiums, discounts and other

(101)

(94)

(183)

(207)

      Operating lease revenue

79,209

76,339

157,912

151,292

   Finance lease income

185

884

373

1,776

   Equity earnings from unconsolidated subsidiary

127

131

252

264

   Gain on sale of aircraft

443

5,586

   Interest and other income

311

137

561

224

Total revenues

79,832

77,934

159,098

159,142

Expenses





   Depreciation

33,074

28,662

65,125

57,501

   Aircraft impairment

4,122

4,122

   Interest expense

31,890

29,474

63,723

60,308

   Net loss on modification and extinguishment of debt

1,885

612

2,429

5,139

   Selling, general and administrative

7,978

7,384

16,270

15,653

   Ineffective, dedesignated and terminated derivatives

424

(22)

373

264

   Maintenance and other costs

758

455

1,230

1,654

Total expenses

76,009

70,687

149,150

144,641

Net income before provision for income taxes

3,823

7,247

9,948

14,501

   Provision for income taxes

943

2,570

2,016

2,724

Net income

$       2,880

$       4,677

$      7,932

$     11,777

Weighted average number of shares





-  Basic

31,364,594

33,580,886

31,802,107

33,934,334

-  Diluted

31,388,034

33,580,886

31,838,737

33,934,334

Earnings per share





-  Basic and Diluted

$          0.09

$          0.14

$          0.25

$          0.35

 

FLY Leasing Limited

Consolidated Balance Sheets

(DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)



Jun. 30,
2017
(Unaudited)

Dec. 31,
2016
(Audited)

Assets



   Cash and cash equivalents

$    335,473

$     517,964

   Restricted cash and cash equivalents

119,704

94,123

   Rent receivables

19

419

   Investment in unconsolidated subsidiary

7,951

7,700

   Investment in finance lease, net

14,488

15,095

   Flight equipment held for operating lease, net

2,923,635

2,693,821

   Maintenance right asset, net

106,223

101,969

   Fair value of derivative assets

1,939

1,905

   Deferred tax assets

7,195

7,445

   Other assets, net

6,804

6,568

Total assets

$ 3,523,431

$ 3,447,009

Liabilities



   Accounts payable and accrued liabilities

$      16,408

$       13,786

   Rentals received in advance

14,817

13,123

   Payable to related parties

3,188

5,042

   Security deposits

49,832

42,495

   Maintenance payment liability

216,549

182,571

   Unsecured borrowings, net

692,381

691,390

   Secured borrowings, net

1,886,854

1,831,985

   Deferred tax liability, net

21,863

19,847

   Fair value of derivative liabilities

11,315

13,281

   Other liabilities

34,567

40,254

Total liabilities

2,947,774

2,853,774

Shareholders' equity



   Common shares, $0.001 par value, 499,999,900 shares authorized; 30,174,969 and 32,256,440 shares issued and outstanding at June 30, 2017 and December 31, 2016, respectively

30

32

   Manager shares, $0.001 par value; 100 shares authorized, issued and outstanding

   Additional paid in capital

509,628

536,922

   Retained earnings

73,958

66,026

   Accumulated other comprehensive loss, net

(7,959)

(9,745)

Total shareholders' equity

575,657

593,235

Total liabilities and shareholders' equity

$ 3,523,431

$ 3,447,009

 

FLY Leasing Limited

Consolidated Statements of Cash Flows

(DOLLARS IN THOUSANDS)




 Six months ended


Six months ended




Jun. 30, 2017 
(Unaudited)   


Jun. 30, 2016 
(Unaudited)


Cash Flows from Operating Activities








Net income


$

7,932


$

11,777


Adjustments to reconcile net income to net cash flows provided by operating activities:








Equity in earnings from unconsolidated subsidiary



(252)



(264)


Finance lease income



(373)



(1,776)


Gain on sale of aircraft





(5,586)


Depreciation



65,125



57,501


Aircraft impairment





4,122


Amortization of debt discounts and issuance costs



4,090



4,695


Amortization of lease incentives



3,646



5,090


Amortization of lease discounts, premiums and other items



183



206


Amortization of GAAM acquisition fair value adjustments



622



992


Net loss on debt modification and extinguishment



2,429



4,121


Unrealized foreign exchange loss



1,528



530


Provision for deferred income taxes



1,988



2,593


Loss on derivative instruments



229



183


Security deposits and maintenance payment liability recognized into earnings





(3,450)


Security deposits and maintenance payment claims applied towards operating lease revenues





(805)


Cash receipts in settlement of maintenance rights





6,150


Changes in operating assets and liabilities:








Rent receivables



(601)



(597)


Other assets



(287)



(233)


Payable to related parties



(6,197)



(7,234)


Accounts payable, accrued and other liabilities



248



(1,701)


Net cash flows provided by operating activities



80,310



76,314


Cash Flows from Investing Activities








Rent received from finance lease



980



2,460


Purchase of flight equipment



(279,044)



(40,488)


Proceeds from sale of aircraft, net





209,382


Payment for aircraft improvement



(5,157)



(2,255)


Payments for lessor maintenance obligations



(6,782)



(1,600)


Net cash flows provided by (used in) investing activities



(290,003)



167,499












Six months ended


Six months ended




Jun. 30, 2017 
(Unaudited)    


Jun. 30, 2016 
(Unaudited)


Cash Flows from Financing Activities








Restricted cash and cash equivalents



(25,575)



80,172


Security deposits received



5,424



920


Security deposits returned



(1,080)



(3,682)


Maintenance payment liability receipts



35,455



36,343


Maintenance payment liability disbursements



(8,905)



(2,278)


Net swap termination payments





(709)


Debt extinguishment costs



(498)




Debt issuance costs



(64)



(832)


Proceeds from secured borrowings



147,179



84,249


Repayment of secured borrowings



(99,423)



(304,938)


Shares repurchased



(25,493)



(26,944)


Net cash flows provided by (used in) financing activities



27,020



(137,699)


      Effect of exchange rate changes on cash and cash equivalents



182



16


Net increase (decrease) in cash



(182,491)



106,130


Cash and cash equivalents at beginning of period



517,964



275,998


Cash and cash equivalents at end of period


$

335,473


$

382,128










Supplemental Disclosure:








Cash paid during the period for:








Interest


$

58,242


$

55,047


Taxes



1,912



336


Noncash investing Activities:








Other liabilities applied to maintenance payment liability, security deposits, and rent receivables



690



960


Noncash activities:








Aircraft improvement



192



206


Noncash activities in connection with purchase of aircraft



10,546



2,687


Noncash activities in connection with sale of aircraft





35,628



 

FLY Leasing Limited

Reconciliation of Non-GAAP Measures

(DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)



Three months
ended
Jun. 30, 2017
(Unaudited)

Three months
ended
Jun. 30, 2016
(Unaudited)

Six months
ended
Jun. 30, 2017
(Unaudited)

Six months
ended
Jun. 30, 2016
(Unaudited)

Net income

$          2,880

$         4,677

$          7,932

$     11,777

Adjustments:





   Aircraft impairment

4,122

4,122

   Amortization of debt discounts and issue costs

1,971

2,335

4,090

4,695

   Amortization of lease premiums, discounts and other

100

93

183

206

   Amortization of fair value adjustments recorded in purchase accounting

147

320

622

992

   Net loss on debt modification and extinguishment

1,885

612

2,429

5,139

   Professional fees related to restatement

851

1,101

   Transaction fees and expenses

64

1,669

   Unrealized foreign exchange (gain) loss

1,309

(471)

1,528

530

   Deferred income taxes

930

2,499

1,988

2,593

   (Gain) loss on ineffective, dedesignated and terminated derivatives

424

(22)

373

264

Adjusted Net Income

$         9,710

$       15,016

$       20,814

$     31,419

Average Shareholders' Equity

$     587,283

$     632,627

$     589,267

$   644,781

Adjusted Return on Equity

6.6%

9.5%

7.1%

9.7%






Weighted average diluted shares outstanding

31,388,034

33,580,886

31,838,737

33,934,334

Adjusted Net Income per diluted share

$             0.31

$             0.45

$                 0.65

$            0.93

FLY defines Adjusted Net Income as net income plus or minus (i) non-cash impairment charges; (ii) non-cash amortization of debt discounts, loan issuance costs, lease premiums and discounts, and other items; (iii) adjustments related to the GAAM portfolio acquisition comprised primarily of amortization of fair value adjustments recorded in purchase accounting; (iv) net losses from debt modification and extinguishment; (v) non-recurring expenses; (vi) unrealized foreign exchange gains and losses; (vii) deferred income taxes; and (viii) the ineffective portion and gains and losses associated with cash flow hedges. The adjustments included within Adjusted Net Income are primarily non-cash items, one-time or non-recurring items that are not expected to continue in the future, and certain other items that we consider unrelated to the ongoing performance of our operations. Adjusted Return on Equity is calculated by dividing Adjusted Net Income by the average shareholders' equity for the periods presented.  For periods of less than one year, the resulting return is annualized.

FLY uses Adjusted Net Income and Adjusted Return on Equity, in addition to GAAP net income and earnings per share, to assess our core operating performance on a consistent basis from period to period. Management believes these measures are helpful in evaluating the operating performance of our ongoing operations and identifying trends in our performance, because they remove the effects of certain non-cash, one-time or non-recurring items that are not expected to continue in the future, and certain other items that are not indicative of our overall operating trends. In addition, Adjusted Net Income and Adjusted Return on Equity help us compare our performance to our competitors. These measures should be considered in addition to, and not as a substitute for net income or other financial measures determined in accordance with Accounting Principles Generally Accepted in the United States. FLY's definitions may be different than those used by other companies.

 

View original content with multimedia:http://www.prnewswire.com/news-releases/fly-leasing-reports-second-quarter-2017-financial-results-300502609.html

SOURCE Fly Leasing Limited