For Investors:
|
For Media:
|
|
Keith Helming
|
Frauke Oberdieck
|
|
Chief Financial Officer
|
Corporate Communications
|
|
+31 20 655 9670
|
+31 20 655 9616
|
|
khelming@aercap.com
|
foberdieck@aercap.com
|
|
John Wikoff
|
||
Investor Relations
|
||
+31 6 3169 9430
|
||
jwikoff@aercap.com
|
|
Ø
|
Adjusted net income* was $296.7 million for the fourth quarter of 2014 (reported net income of $298.2 million), and $855.5 million for the full year 2014 (reported net income of $810.4 million)
|
|
Ø
|
Adjusted basic earnings* per share were $1.40 for the fourth quarter of 2014 (reported basic earnings per share of $1.41), and $4.86 for the full year of 2014 (reported basic earnings per share of $4.61)
|
|
Ø
|
The new share repurchase program will run through December 31, 2015 and will allow total repurchases of up to $250 million in 2015.
|
|
●
|
Integration of ILFC remains on plan.
|
|
●
|
Maintained one of the industry’s most attractive order books, purchasing 33 aircraft during 2014 with a total value of $2.3 billion.
|
|
●
|
Demonstrated the scale of our platform and continued demand for modern fuel efficient aircraft, executing 365 aircraft transactions in 2014.
|
|
●
|
Made substantial progress deleveraging, ending the quarter with debt/equity ratio of 3.4:1; expect debt/equity ratio of 3:1 in 2015.
|
|
●
|
Authorized a share repurchase program of up to $250 million, which will run through December 31, 2015.
|
|
●
|
Key targets relating to the acquisition of ILFC have been met or exceeded:
|
|
o
|
transfer of aircraft to Ireland has been completed;
|
|
o
|
de-leveraging plan has been accelerated;
|
|
o
|
annualized earnings of $1 billion has been reached; and
|
|
o
|
relocation of personnel has been completed and realization of cost synergies remains on plan.
|
|
●
|
Fleet utilization rate was 99.2% for the full year of 2014. As of December 31, 2014, the average age of the owned fleet was 7.7 years and the average remaining contracted lease term was 5.7 years.
|
|
●
|
As of December 31, 2014, the Company had committed to purchase 380 aircraft with scheduled delivery dates up to 2022. Over 90% of our committed aircraft purchases delivering through December 2017 and over 60% delivering through 2019 are placed, either under lease contract or letter of intent.
|
|
●
|
Since September 30, 2014, the Company signed agreements for the lease of 44 Airbus A320neo family aircraft and five Airbus A350 aircraft from our order book.
|
|
●
|
As of December 31, 2014, the Company had $7.3 billion of available liquidity. Since the announcement of the ILFC transaction in December 2013, $13.0 billion of financing has been raised.
|
|
●
|
Fourth quarter 2014 reported net income was $298.2 million, compared with $65.6 million for the same period in 2013. Fourth quarter 2014 reported basic earnings per share were $1.41, compared with $0.58 for the same period in 2013. The increase in net income and earnings per share over the fourth quarter 2013 were driven primarily by the ILFC transaction.
|
|
●
|
Fourth quarter 2014 adjusted net income was $296.7 million, compared with $72.8 million for the same period in 2013. Fourth quarter 2014 adjusted earnings per share were $1.40, compared with $0.64 for the same period in 2013. The increases in adjusted net income and earnings per share over the fourth quarter 2013 were driven primarily by the ILFC transaction.
|
|
●
|
Annualized net spread for the fourth quarter 2014 was 9.8%, up from 8.7% in the same period of 2013 and was 9.7% for full year 2014, up from 8.6% for full year 2013. Interest expense in the fourth quarter of 2014 includes ~$12 million of one-time charges relating to debt breakage costs on aircraft sales and interest costs on our ALS investment.
|
|
●
|
Our debt/equity ratio was 3.4 to 1 at December 31, 2014, compared to 2.6 to 1 for the same period in 2013, reflecting our acquisition of ILFC.
|
|
●
|
Total assets were $43.9 billion as of December 31, 2014 compared to $9.5 billion at year-end 2013, reflecting our acquisition of ILFC.
|
Three months ended
December 31, |
Year ended
December 31, |
|||||||||||||||||||||||
2014
|
2013
|
% increase/(decrease)
|
2014
|
2013
|
% increase/(decrease)
|
|||||||||||||||||||
(US dollars in millions except share and per share amounts) | (US dollars in millions except share and per share amounts) | |||||||||||||||||||||||
Net income
|
$ | 298.2 | $ | 65.6 | 355% | $ | 810.4 | $ | 292.4 | 177% | ||||||||||||||
Adjusted for:
|
||||||||||||||||||||||||
Mark-to-market of interest rate caps and swaps, net of tax
|
4.2 | (1.9 | ) |
NA
|
14.6 | (10.2 | ) |
NA
|
||||||||||||||||
Transaction and integration related expenses, net of tax
|
10.4 | 9.1 | 14% | 130.2 | 9.6 | 1,256% | ||||||||||||||||||
Maintenance rights related expenses, net of tax
|
(16.1 | ) | - |
NA
|
(99.7 | ) | - |
NA
|
||||||||||||||||
Adjusted net income
|
$ | 296.7 | $ | 72.8 | 308% | $ | 855.5 | $ | 291.8 | 193% | ||||||||||||||
Adjusted earnings per share - basic
|
$ | 1.40 | $ | 0.64 | 118% | $ | 4.86 | $ | 2.57 | 89% |
Three months ended December 31, |
Year ended
December 31,
|
|||||||||||||||||||||||
2014
|
2013
|
% increase (decrease)
|
2014
|
2013
|
% increase/
(decrease) |
|||||||||||||||||||
(US dollars in millions) | (US dollars in millions) | |||||||||||||||||||||||
Lease revenue:
|
||||||||||||||||||||||||
Basic lease rents
|
$ | 1,159.0 | $ | 234.9 | 393% | $ | 3,282.8 | $ | 901.6 | 264% | ||||||||||||||
Maintenance rents and other receipts
|
124.1 | 26.6 | 367% | 215.5 | 74.5 | 189% | ||||||||||||||||||
Lease revenue
|
1,283.1 | 261.5 | 391% | 3,498.3 | 976.1 | 258% | ||||||||||||||||||
Net gain on sale of assets
|
25.8 | 9.6 | 169% | 37.5 | 41.9 | (11%) | ||||||||||||||||||
Other income
|
28.0 | 6.7 | 318% | 104.5 | 32.1 | 226% | ||||||||||||||||||
Total revenues and other income
|
$ | 1,336.9 | $ | 277.8 | 381% | 3,640.3 | $ | 1,050.1 | 247% |
Three months ended
December 31, |
Year ended
December 31, |
|||||||||||||||||||||||
2014
|
2013
|
% increase/(decrease)
|
2014
|
2013
|
% increase/(decrease)
|
|||||||||||||||||||
(US dollars in millions) | (US dollars in millions) | |||||||||||||||||||||||
Basic lease rents
|
$ | 1,159.0 | $ | 234.9 | 393% | $ | 3,282.8 | $ | 901.6 | 264% | ||||||||||||||
Interest expense
|
280.3 | 57.0 | 392% | 780.3 | 226.3 | 245% | ||||||||||||||||||
Adjusted for:
|
||||||||||||||||||||||||
Mark-to-market of interest rate caps and swaps
|
(4.8 | ) | 2.2 |
NA
|
(16.7 | ) | 11.7 |
NA
|
||||||||||||||||
Adjusted interest expense
|
275.5 | 59.2 | 365% | 763.6 | 238.0 | 221% | ||||||||||||||||||
Net interest margin, or net spread
|
$ | 883.5 | $ | 175.7 | 403% | $ | 2,519.2 | $ | 663.6 | 280% |
Three months ended
December 31, |
Year ended
December 31, |
|||||||||||||||||||||||
2014
|
2013
|
% increase/(decrease)
|
2014
|
2013
|
% increase/(decrease)
|
|||||||||||||||||||
(US dollars in millions)
|
(US dollars in millions) | |||||||||||||||||||||||
Share-based compensation expenses
|
24.9 | 2.4 | 938% | 68.2 | 9.3 | 633% | ||||||||||||||||||
Other selling, general and administrative expenses
|
92.6 | 19.5 | 375% | 231.7 | 79.8 | 190% | ||||||||||||||||||
Total selling, general and administrative expenses.
|
$ | 117.5 | $ | 21.9 | 437% | $ | 299.9 | $ | 89.1 | 237% |
December 31,
2014
|
December 31,
2013
|
% Increase/
(decrease) over
December 31,
2013
|
||||||||||
(US dollars in millions except d/e ratio)
|
||||||||||||
Total cash (incl. restricted)
|
$ | 2,207.8 | $ | 568.3 | 288% | |||||||
Flight equipment held for operating leases, net
|
31,984.7 | 8,085.9 | 296% | |||||||||
Total assets
|
43,891.1 | 9,451.1 | 364% | |||||||||
Debt
|
30,402.4 | 6,236.9 | 387% | |||||||||
Total liabilities
|
35,948.6 | 7,021.9 | 412% | |||||||||
Total equity
|
7,942.5 | 2,429.2 | 227% | |||||||||
Adjusted debt/equity ratio
|
3.4 | 2.6 | 31% |
|
●
|
Fourth quarter 2014 adjusted net income of $296.7 million excludes expenses relating to the ILFC transaction and integration of $10.4 million, net of tax.
|
|
●
|
Adjusted net income of $855.5 million for the year ended December 31, 2014 excludes expenses relating to the ILFC transaction and integration of $130.2 million, net of tax.
|
AerCap Holdings N.V.
|
|||||||||
Unaudited Consolidated Balance Sheets
|
|||||||||
(In thousands of U.S. Dollars)
|
|||||||||
December 31,
2014 |
December 31,
2013 |
||||||||
Assets | |||||||||
Cash and cash equivalents
|
$ | 1,490,369 | $ | 295,514 | |||||
Restricted cash
|
717,388 | 272,787 | |||||||
Trade receivables
|
160,412 | 5,203 | |||||||
Flight equipment held for operating leases, net
|
31,984,668 | 8,085,947 | |||||||
Maintenance rights intangible and lease premium, net (*)
|
3,906,026 | 9,354 | |||||||
Flight equipment held for sale
|
14,082 | - | |||||||
Net investment in finance and sales-type leases
|
347,091 | 31,995 | |||||||
Prepayments on flight equipment
|
3,493,544 | 223,815 | |||||||
Other intangibles, net
|
522,320 | - | |||||||
Deferred income tax assets
|
187,156 | 121,663 | |||||||
Other assets
|
1,068,042 | 404,863 | |||||||
Total Assets
|
$ | 43,891,098 | $ | 9,451,141 | |||||
Liabilities and Equity
|
|||||||||
Accounts payable, accrued expenses and other liabilities
|
$ | 1,203,002 | $ | 164,222 | |||||
Accrued maintenance liability
|
3,194,365 | 466,293 | |||||||
Lessee deposit liability
|
848,332 | 92,660 | |||||||
Debt
|
30,402,392 | 6,236,892 | |||||||
Deferred income tax liabilities
|
300,459 | 61,842 | |||||||
Total liabilities
|
35,948,550 | 7,021,909 | |||||||
|
|||||||||
Ordinary share capital €0.01 par value (350,000,000 ordinary shares authorized, 212,318,291 ordinary shares issued and outstanding at December 31, 2014 and 250,000,000 ordinary shares authorized, 113,783,799 ordinary shares issued and outstanding at December 31, 2013)
|
2,559 | 1,199 | |||||||
Additional paid-in capital
|
5,557,627 | 934,024 | |||||||
Accumulated other comprehensive loss
|
(6,895 | ) | (9,890 | ) | |||||
Accumulated retained earnings
|
2,310,486 | 1,500,039 | |||||||
Total AerCap Holdings N.V. shareholders' equity
|
7,863,777 | 2,425,372 | |||||||
Non-controlling interest
|
78,771 | 3,860 | |||||||
Total Equity
|
7,942,548 | 2,429,232 | |||||||
Total Liabilities and Equity
|
$ | 43,891,098 | $ | 9,451,141 | |||||
(*) Includes $3,812 million maintenance rights intangible, and the remaining amount relates to lease premium. | |||||||||
AerCap Holdings N.V.
|
|||||||||||||||||
Unaudited Consolidated Income Statements
|
|||||||||||||||||
(In thousands of U.S. Dollars, except share and per share data)
|
|||||||||||||||||
|
Three months ended
December 31, |
Year ended
December 31, |
|||||||||||||||
2014
|
2013
|
2014
|
2013
|
||||||||||||||
Revenues and other income
|
|||||||||||||||||
Lease revenue
|
$ | 1,283,085 | $ | 261,533 | 3,498,300 | $ | 976,147 | ||||||||||
Net gain on sale of assets
|
25,841 | 9,633 | 37,497 | 41,873 | |||||||||||||
Other income
|
27,961 | 6,668 | 104,491 | 32,046 | |||||||||||||
Total Revenues and other income
|
1,336,887 | 277,834 | 3,640,288 | 1,050,066 | |||||||||||||
Expenses
|
|||||||||||||||||
Depreciation and amortization
|
458,512 | 88,731 | 1,282,228 | 337,730 | |||||||||||||
Asset impairment
|
19,957 | 14,301 | 21,828 | 26,155 | |||||||||||||
Interest expense
|
280,310 | 56,987 | 780,349 | 226,329 | |||||||||||||
Operating lease-in costs
|
- | - | - | 550 | |||||||||||||
Leasing expenses
|
119,091 | 17,698 | 190,301 | 48,473 | |||||||||||||
Transaction and integration related expenses
|
11,929 | 10,447 | 148,792 | 10,959 | |||||||||||||
Selling, general and administrative expenses
|
117,494 | 21,930 | 299,892 | 89,079 | |||||||||||||
Total Expenses
|
1,007,293 | 210,094 | 2,723,390 | 739,275 | |||||||||||||
Income from continuing operations before income taxes and income of investments accounted for under the equity method
|
329,594 | 67,740 | 916,898 | 310,791 | |||||||||||||
Provision for income taxes
|
(34,595 | ) | (5,367 | ) | (137,373 | ) | (26,026 | ) | |||||||||
Net income of investments accounted for under the equity method
|
1,773 | 3,487 | 28,973 | 10,637 | |||||||||||||
Net income
|
296,772 | 65,860 | 808,498 | 295,402 | |||||||||||||
Net (income) loss attributable to non-controlling interest
|
1,448 | (237 | ) | 1,949 | (2,992 | ) | |||||||||||
Net income attributable to AerCap Holdings N.V
|
$ | 298,220 | $ | 65,623 | $ | 810,447 | $ | 292,410 | |||||||||
Total basic earnings per share
|
$ | 1.41 | $ | 0.58 | $ | 4.61 | $ | 2.58 | |||||||||
Total diluted earnings per share
|
$ | 1.39 | $ | 0.57 | $ | 4.54 | $ | 2.54 | |||||||||
Weighted average shares outstanding - basic
|
212,086,151 | 113,580,722 | 175,912,662 | 113,463,813 | |||||||||||||
Weighted average shares outstanding - diluted
|
214,580,092 | 115,335,886 | 178,684,989 | 115,002,458 | |||||||||||||
AerCap Holdings N.V.
|
|||||||||
Unaudited Consolidated Statements of Cash Flows
|
|||||||||
(In thousands of U.S. Dollars)
|
|||||||||
Year ended
December 31, |
|||||||||
2014
|
2013
|
||||||||
Net income
|
$ | 808,498 | $ | 295,402 | |||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
|||||||||
Depreciation and amortisation
|
1,282,228 | 337,730 | |||||||
Asset impairment
|
21,828 | 26,155 | |||||||
Amortization of debt issuance costs and debt discount
|
86,184 | 47,442 | |||||||
Amortization of lease premium intangibles
|
71,806 | 8,746 | |||||||
Accretion of fair value adjustment on debt
|
(330,924 | ) | - | ||||||
Accretion of fair value adjustment on deposits and maintenance reserves
|
17,967 | - | |||||||
Maintenance rights expense
|
128,919 | - | |||||||
Net gain on sale of assets
|
(37,497 | ) | (41,873 | ) | |||||
Mark-to-market of non-hedged derivatives
|
17,014 | (11,805 | ) | ||||||
Deferred income taxes
|
99,648 | 21,186 | |||||||
Share-based compensation
|
68,150 | 9,292 | |||||||
Changes in operating assets and liabilities:
|
|||||||||
Trade receivables
|
102,547 | 2,854 | |||||||
Other assets
|
(24,221 | ) | (32,760 | ) | |||||
Accounts payable, accrued expenses and other liabilities
|
13,024 | 30,300 | |||||||
Net cash provided by operating activities
|
2,325,171 | 692,669 | |||||||
Purchase of flight equipment
|
(2,102,202 | ) | (1,782,839 | ) | |||||
Proceeds from sale or disposal of assets
|
569,633 | 664,415 | |||||||
Prepayments on flight equipment
|
(458,174 | ) | (213,320 | ) | |||||
Acquisition of ILFC, net of cash acquired
|
(195,311 | ) | - | ||||||
Capital contributions to equity investments
|
- | (13,180 | ) | ||||||
Collections of finance and sales-type leases
|
57,958 | 2,209 | |||||||
Movement in restricted cash
|
282,523 | 7,866 | |||||||
Net cash used in investing activities
|
(1,845,573 | ) | (1,334,849 | ) | |||||
Issuance of debt
|
5,411,602 | 2,299,706 | |||||||
Repayment of debt
|
(4,826,775 | ) | (1,889,194 | ) | |||||
Debt issuance costs paid
|
(134,963 | ) | (45,213 | ) | |||||
Maintenance payments received
|
546,844 | 100,708 | |||||||
Maintenance payments returned
|
(286,041 | ) | (56,909 | ) | |||||
Security deposits received
|
107,332 | 23,364 | |||||||
Security deposits returned
|
(98,656 | ) | (15,032 | ) | |||||
Net cash provided by financing activities
|
719,343 | 417,430 | |||||||
Net increase (decrease) in cash and cash equivalents
|
1,198,941 | (224,750 | ) | ||||||
Effect of exchange rate changes on cash and cash equivalents
|
(4,086 | ) | (137 | ) | |||||
Cash and cash equivalents at beginning of period
|
295,514 | 520,401 | |||||||
Cash and cash equivalents at end of period
|
$ | 1,490,369 | $ | 295,514 | |||||