Exhibit
99.1
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For Investors:
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Keith Helming
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Chief Financial Officer
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+31
20 655 9670
khelming@aercap.com
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Peter
Wortel
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Investor
Relations
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+31
20 655 9658
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pwortel@aercap.com
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For
Media:
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Frauke
Oberdieck
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PRESS
RELEASE
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Corporate
Communications
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+31
20 655 9616
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foberdieck@aercap.com
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AerCap Holdings N.V. Reports Third Quarter 2010 Financial Results
Net spread, which is the margin earned on our
leased assets, was $171.8 million for the third quarter of 2010, an increase of
50% over third quarter 2009
Amsterdam, Netherlands; November 5, 2010 - AerCap Holdings
N.V. (the “Company” or “AerCap”) (NYSE: AER) today announced the results of its
operations for the third quarter ended September 30, 2010.
Third Quarter 2010 Highlights
· Third quarter 2010 basic and diluted earnings
per share were $0.43, compared with $0.42 for the same period in 2009. Third
quarter 2010 basic and diluted earnings per share excluding the impact of the
mark-to-market of interest rate caps and share-based compensation were $0.51,
compared with $0.46 in the third quarter 2009 on the same basis.
· Third quarter 2010 net income was $51.9
million, compared with net income of $35.5 million for the same period in 2009.
Third quarter 2010 net income excluding the impact of the mark-to-market of
interest rate caps and share-based compensation was $61.1 million, compared
with $39.2 million in the third quarter 2009 on the same basis.
· Net spread, the difference between basic
lease rents and interest expense excluding the impact from the mark-to-market
of interest rate caps, was $171.8 million in the third quarter of 2010 compared
to $114.6 million in the third quarter of 2009, an increase of 50%. This
measure reflects the increase in leasing income and excludes income derived
from the sale of aircraft.
· Basic lease rents for the third quarter of
2010 were $233.9 million, compared to $142.4 million for the same period in
2009, an increase of 64%. Total lease revenue (basic rents, maintenance rents
and end-of-lease compensation) for the third quarter of 2010 was $254.0
million, compared to $153.8 million for the same period in 2009, an increase of
65%.
1
· Sales revenue for the third quarter 2010 was
$218.2 million, compared to $49.0 million for the same period in 2009, and was
generated from the sale of three aircraft, five engines and parts inventory.
· Total revenue for the third quarter of 2010
was $478.1 million, compared to $212.5 million for the same period in 2009. The
increase was mainly due to the increase in sales revenue and an increase in
lease revenue which was primarily driven by the all-share acquisition of
Genesis Lease Limited (“the Genesis Transaction”) which occurred in March 2010
and the deliveries of forward order aircraft.
· Total assets were $9.3 billion at September 30,
2010, an increase of 46% over total assets of $6.4 billion at September 30,
2009. The Genesis Transaction accounted for $1.5 billion of the increase in
total assets. The remaining $1.4 billion
increase was driven primarily by deliveries of forward order aircraft.
· Committed purchases of aviation assets
delivered or scheduled for delivery in 2010 are $2.5 billion, of which $2.4
billion closed in the nine month period ended September 30, 2010.
Klaus
Heinemann, CEO of AerCap, commented: “The end of the third
quarter 2010 marks the completion of the largest expansion program in AerCap’s
history. Lease assets increased by 67% to $7.97 billion compared to the end of
the same quarter last year. This growth was achieved with solid equity support.
AerCap’s total equity reached $1.98 billion by quarter end, and we were able to
achieve this without dilution of earnings per share. Third quarter earnings per share were 51
cents on an adjusted basis compared to 46 cents for the same quarter last year. This strong financial performance
coupled with the recent addition of Waha Leasing to the AerCap family positions
the Company for continued long term success.”
AerCap’s CFO, Keith Helming, said: “The
125% increase in total revenue, 50% growth in net spread and the consequent 46%
increase in net income in the third quarter 2010 compared to the same period in
2009 further underlines our ability to deliver profitable growth. The increase in these key metrics was mainly
due to the completion of the Genesis Transaction and the deliveries of our
forward order aircraft. In addition, our
liquidity position continues to be strong as demonstrated by the $520 million
of cash on hand at the end of September.”
Summary of Financial Results
The
Genesis Transaction which was completed on March 25, 2010 is fully
reflected in all AerCap Holdings N.V. second and third quarter 2010
consolidated financial statements. The Genesis Transaction was not included in
the AerCap Holdings N.V. first quarter 2010 income statement (including the
number of outstanding shares used for earnings per share calculations) other
than one line item reflecting a $0.3 million amalgamation gain (net of
transaction expenses and tax). The impact of the Genesis Transaction was also
reflected in one line item in the AerCap Holdings N.V. first quarter 2010
consolidated cash flow statement (purchase of subsidiaries, net of cash
acquired).
AerCap recorded third
quarter 2010 net income of $51.9 million or $0.43 earnings per basic and
diluted share. Third quarter 2010 net income included net charges relating to
mark-to-market of interest rate caps and share-based compensation of $9.2
million or $0.08 per basic and diluted share, net of tax. The after-tax charge
relating to the mark-to-market of
2
our interest rate caps was
$9.0 million reflecting changes in forecasted interest rates. The after-tax
charge from share-based compensation was $0.2 million.
Detailed Financial Data
($
in Millions)
Operating
results
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Three months ended
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Nine months ended
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September 30,
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September 30,
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% increase/
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% increase/
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2010
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2009
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(decrease)
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2010
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2009
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(decrease)
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Revenues
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$
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478.1
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$
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212.5
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125
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%
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$
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1,436.8
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$
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715.7
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101
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%
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Net
income
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51.9
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35.5
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46
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%
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135.1
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122.0
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11
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%
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Net
income excluding the impact of mark-to-market of interest rate caps and
share-based compensation
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61.1
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39.2
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56
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%
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167.4
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109.9
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52
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%
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Total revenue in the third
quarter of 2010 increased 125% compared to the third quarter of 2009. This increase
resulted primarily from an increase in sales revenue and basic lease rents
driven by the additional aircraft acquired in the Genesis Transaction and the
deliveries of forward order aircraft. For similar reasons, net income excluding
the impact of mark-to-market of interest rate caps and share-based compensation
increased by 56%.
Revenue
breakdown
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Three months ended
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Nine months ended
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September 30,
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September 30,
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% increase/
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% increase/
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2010
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2009
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(decrease)
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2010
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2009
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(decrease)
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Lease
revenue:
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Basic
lease rents
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$
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233.9
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$
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142.4
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64
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%
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$
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633.2
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$
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425.2
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49
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%
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Maintenance
rents
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20.1
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10.4
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93
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%
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56.8
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49.9
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14
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%
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End-of-lease
compensation and other receipts
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—
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1.0
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(100
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)%
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—
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9.7
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(100
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)%
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Lease
revenue
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$
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254.0
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$
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153.8
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65
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%
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$
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690.0
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$
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484.8
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42
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%
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Sales
revenue
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218.2
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49.0
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345
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%
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728.8
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208.9
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249
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%
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Management
fees and interest income
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3.8
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5.3
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(28
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)%
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11.7
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17.0
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(31
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)%
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Other
revenue
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2.1
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4.4
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(52
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)%
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6.3
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4.9
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29
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%
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Total revenue
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$
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478.1
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$
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212.5
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125
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%
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$
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1,436.8
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$
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715.6
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101
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%
|
Basic lease rents were
$233.9 million for the third quarter of 2010, an increase of 64% compared to
the third quarter of 2009, as a result of our growing asset base. Our average
lease assets increased by 70% to $7.8 billion compared to the third quarter of
2009. As shown in the table below, interest expense excluding the impact of the
mark-to-market of interest rate caps was $62.1 million in the third quarter of
2010, an increase of $34.3 million over the same period in 2009. The increase
was primarily driven by the Genesis Transaction ($15.0 million) and the
increase in our lease portfolio from the delivery of forward order aircraft. As
a result, net spread increased 50% to $171.8 million in the third quarter of
2010 over the same period in 2009.
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Three months ended
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Nine months ended
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September 30,
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September 30,
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% increase/
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% increase/
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2010
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2009
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(decrease)
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2010
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2009
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(decrease)
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Basic lease rents
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$
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233.9
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$
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142.4
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64
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%
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$
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633.2
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$
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425.2
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49
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%
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|
|
|
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|
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Interest
on debt
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$
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75.1
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$
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32.8
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129
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%
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$
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202.1
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$
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68.3
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196
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%
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Plus:
mark-to-market of interest rate caps
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(13.0
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)
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(5.0
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)
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160
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%
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(47.6
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)
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17.2
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(377
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)%
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Interest
on debt excluding the impact of mark-to-market of interest rate caps
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$
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62.1
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$
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27.8
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|
123
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%
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$
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154.5
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$
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85.5
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|
81
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%
|
|
Net Spread
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$
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171.8
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$
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114.6
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50
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%*
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$
|
478.7
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$
|
339.7
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|
41
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%
|
* The increase in net spread is lower than the
increase in basic lease rents as a result of the delivery of new forward order
aircraft and the Genesis Transaction. For new aircraft, the net spread is lower
at the start of the lease because of higher interest expenses resulting from a
higher loan to value.
3
Effective
tax rate
AerCap’s blended effective
tax rate during the nine month period ended September 30, 2010 was 9.0%
(charge), consisting of 9.3% (charge) for AerCap’s aircraft business and 29.8%
(income) for AerCap’s engine and parts business. The blended effective tax rate
in 2009 was 1.9% (charge). The blended effective tax rate in any year is
impacted by the source and the amount of earnings among AerCap’s different tax
jurisdictions. The increase in the 2010
blended tax rate as compared to 2009 is the result of having more earnings
generated from higher tax rate jurisdictions.
Financial position
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% Increase
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over
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September 30,
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September 30,
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September 30,
|
|
|
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|
2010
|
|
2009
|
|
2009
|
|
|
|
|
|
|
|
|
|
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|
Total
cash (incl. restricted)
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$
|
519.7
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$
|
324.4
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|
60
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%
|
|
Flight
equipment held for lease
|
|
7,974.1
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|
4,761.9
|
|
67
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%
|
|
Total
assets
|
|
9,338.6
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|
6,417.6
|
|
46
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%
|
|
Total
liabilities
|
|
7,358.1
|
|
5,082.9
|
|
45
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%
|
|
Total
equity
|
|
1,980.5
|
|
1,334.8
|
|
48
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%
|
|
|
|
|
|
|
|
|
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|
As of September 30,
2010, AerCap’s portfolio consisted of 324 aircraft and 83 engines that were
either owned, on order, under contract or letter of intent, or managed. This
includes aircraft that AerCap added through the Genesis Transaction in March 2010.
Notes Regarding Financial Information Presented In This Press Release
The
financial information presented in this press release is not audited.
The
following is a definition of non-GAAP measures used in this press release and a
reconciliation of such measure to the most closely related GAAP measure:
Net
income excluding the impact of mark-to-market of interest rate caps and
share-based compensation. This measure is determined
by adding non-cash charges related to the mark-to-market losses on our interest
rate caps and share based compensation during the applicable period, net of related
tax benefits, to GAAP net income. In addition to GAAP net income, we believe
this measure may provide investors with supplemental information regarding our
operational performance and may further assist investors in their understanding
of our operational performance in relation to past and future reporting
periods. We use interest rate caps to allow us to benefit from decreasing
interest rates and protect against the negative impact of rising interest rates
on our floating rate debt. Management determines the appropriate level of caps
in any period with reference to the mix of floating and fixed cash inflows from
our lease and other contracts. We do not apply hedge accounting to our interest
rate caps. As a result, we recognize the change in fair value of the interest
rate caps in our income statement during each period. Following is a
reconciliation of net income excluding the impact of mark-to-market of interest
rate caps and share-based compensation to net income for the three and nine
month periods ended September 30, 2010 and 2009:
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Three months ended
|
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Nine months ended
|
|
|
|
|
September 30,
|
|
September 30,
|
|
|
|
|
|
|
|
|
% increase/
|
|
|
|
|
|
% increase/
|
|
|
|
|
2010
|
|
2009
|
|
(decrease)
|
|
2010
|
|
2009
|
|
(decrease)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
$
|
51.9
|
|
$
|
35.5
|
|
46
|
%
|
$
|
135.1
|
|
$
|
122.0
|
|
11
|
%
|
|
Plus:
mark-to-market of interest rate caps, net of tax
|
|
9.0
|
|
3.0
|
|
(200
|
)%
|
30.8
|
|
(14.5
|
)
|
312
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%
|
|
share-based
compensation, net of tax
|
|
0.2
|
|
0.7
|
|
(71
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)%
|
1.5
|
|
2.4
|
|
(38
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)%
|
|
Net income excluding the impact of mark-to-market of interest
rate caps and share-based compensation
|
|
$
|
61.1
|
|
$
|
39.2
|
|
56
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%
|
$
|
167.4
|
|
$
|
109.9
|
|
52
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%
|
4
Earnings
per share excluding the impact of mark-to-market of interest rate caps and
share-based compensation are determined by dividing the amount of net income
excluding such impact by the average number of shares outstanding for that
period. The average number of shares is based on a daily average.
Net
spread (refer to third table under Revenue breakdown section of this press
release). This measure is the difference between basic lease
rents and interest expense excluding the impact from the mark-to-market of
interest rate caps and non-recurring charges.
We believe this measure may further assist investors in their
understanding of the changes and trends related to the earnings of our leasing
activities. This measure reflects the
impact from changes in the number of aircraft leased, lease rates, utilization
rates, as well as the impact from the use of interest rate caps instead of
swaps to hedge our interest rate risk. The reconciliation of net spread to
basic lease rents for the three and nine month periods ended September 30,
2010 and 2009 is included above.
Conference Call
In
connection with the earnings release, management will host an earnings
conference call today, Friday, November 5, 2010 at 9:30 am Eastern Time /
2:30 pm Central European Time. The call can be accessed live by dialing
(U.S./Canada) 1-866-239-0753 or (International) +31-20-713-2998 and referencing
code 7436381 at least 5 minutes before start time, or by visiting AerCap’s
website at http://www.aercap.com under “Investor Relations.”
The
presentation slides for the conference call will be posted on AerCap’s website
in advance of the call. The webcast replay will be archived in the “Investor
Relations” section of the company’s website for one year.
In
addition, a New York Group Lunch Presentation
for investors and analysts will be
hosted by AerCap’s management today, Friday, November 5, 2010, at 12:30 pm
Eastern Time at The New York Palace (the Henry Room), 455 Madison Avenue, New
York. Doors will open at 12:00 pm.
To
participate in either event, please register at: www.sharedvalue.net/aercap/Q310
For
further information, contact Peter Wortel: +31 20 655 9658 (pwortel@aercap.com)
or
Mark Walter (Shared Value): +44 (0)20 7321 5039 (aercap@sharedvalue.net).
About AerCap Holdings N.V.
AerCap
is the world’s leading independent aircraft leasing company. AerCap also
provides engine leasing, aircraft management services, aircraft maintenance,
repair and overhaul services and aircraft disassemblies. AerCap is
headquartered in The Netherlands and has offices in Ireland, the United States,
Singapore, China and the United Kingdom.
5
Forward Looking Statements
This press release
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 identified by the
use of forward-looking terminology such as “may,” “might,” “should,” “expect,” “plan,”
“intend,” “estimate,” “anticipate,” “believe,” “predict,” “potential” or “continue”
or the negatives thereof or variations thereon or similar terminology. All
statements other than statements of historical fact included in this press
release are forward-looking statements and are based on various underlying
assumptions and expectations and are subject to known and unknown risks,
uncertainties and assumptions, may include projections of our future financial
performance based on our growth strategies and anticipated trends in our
business. These statements are only predictions based on our current
expectations and projections about future events. There are important factors
that could cause our actual results, level of activity performance or achievements
to differ materially from the results, level of activity, performance or
achievements expressed or implied in the forward-looking statements. As a
result, there can be no assurance that the forward-looking statements included
in this press release will prove to be accurate or correct. In light of these
risks, uncertainties and assumptions, the future performance or events
described in the forward-looking statements in this press release might not
occur. Accordingly, you should not rely upon forward-looking statements as a
prediction of actual results and we do not assume any responsibility for the
accuracy or completeness of any of these forward-looking statements. We do not
undertake any obligation to, and will not, update any forward-looking statements,
whether as a result of new information, future events or otherwise.
For more information
regarding AerCap and to be added to our email distribution list, please visit http://www.aercap.com.
Financial Statements Follow
6
AerCap Holdings N.V.
Consolidated Balance Sheets - Unaudited
(In
thousands of U.S. Dollars)
|
|
|
September 30, 2010
|
|
December 31, 2009
|
|
September 30, 2009
|
|
|
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
Cash
and cash equivalents
|
|
$
|
285,763
|
|
$
|
182,617
|
|
$
|
203,377
|
|
|
Restricted
cash
|
|
233,954
|
|
140,746
|
|
121,067
|
|
|
Trade
receivables, net of provisions
|
|
60,001
|
|
48,070
|
|
49,037
|
|
|
Flight
equipment held for operating leases, net
|
|
7,974,109
|
|
5,230,437
|
|
4,761,918
|
|
|
Net
investment in direct finance leases
|
|
28,170
|
|
34,532
|
|
34,069
|
|
|
Notes
receivables, net of provisions
|
|
7,939
|
|
138,488
|
|
141,628
|
|
|
Prepayments
on flight equipment
|
|
197,616
|
|
527,666
|
|
632,333
|
|
|
Investments
|
|
30,774
|
|
21,031
|
|
20,367
|
|
|
Goodwill
|
|
6,776
|
|
6,776
|
|
6,776
|
|
|
Intangibles,
net
|
|
64,568
|
|
31,399
|
|
34,602
|
|
|
Inventory
|
|
119,097
|
|
102,538
|
|
108,444
|
|
|
Derivative
assets
|
|
23,981
|
|
44,866
|
|
38,572
|
|
|
Deferred
income taxes
|
|
102,117
|
|
80,098
|
|
80,463
|
|
|
Other
assets
|
|
203,715
|
|
180,237
|
|
184,975
|
|
|
Total Assets
|
|
$
|
9,338,580
|
|
$
|
6,769,501
|
|
$
|
6,417,628
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
17,516
|
|
$
|
11,832
|
|
$
|
16,004
|
|
|
Accrued
expenses and other liabilities
|
|
98,149
|
|
80,399
|
|
77,591
|
|
|
Accrued
maintenance liability
|
|
400,461
|
|
228,006
|
|
216,345
|
|
|
Lessee
deposit liability
|
|
138,316
|
|
126,093
|
|
113,025
|
|
|
Debt
|
|
6,562,293
|
*
|
4,846,664
|
|
4,593,268
|
|
|
Accrual
for onerous contracts
|
|
10,917
|
|
22,363
|
|
24,378
|
|
|
Deferred
revenue
|
|
66,106
|
|
33,011
|
|
33,479
|
|
|
Derivative
liabilities
|
|
64,302
|
|
7,801
|
|
8,783
|
|
|
Total liabilities
|
|
7,358,060
|
|
5,356,169
|
|
5,082,873
|
|
|
|
|
|
|
|
|
|
|
|
Share
capital
|
|
1,163
|
|
699
|
|
699
|
|
|
Additional
paid-in capital
|
|
968,724
|
|
593,133
|
|
592,133
|
|
|
Accumulated
other comprehensive income (loss)
|
|
(470
|
)
|
—
|
|
—
|
|
|
Retained
earnings
|
|
799,309
|
|
664,177
|
|
621,012
|
|
|
Total AerCap Holdings N.V. shareholders’ equity
|
|
1,768,726
|
|
1,258,009
|
|
1,213,844
|
|
|
Non-controlling
interest
|
|
211,794
|
|
155,323
|
|
120,911
|
|
|
Total Equity
|
|
1,980,520
|
|
1,413,332
|
|
1,334,755
|
|
|
|
|
|
|
|
|
|
|
|
Total Liabilities and Equity
|
|
$
|
9,338,580
|
|
$
|
6,769,501
|
|
$
|
6,417,628
|
|
*
Includes $88.0 million of subordinated debt received from our joint venture
partners
|
Supplemental information
|
|
September 30, 2010
|
|
December 31, 2009
|
|
September 30, 2009
|
|
|
Debt/equity
ratio
|
|
3.3
|
|
3.4
|
|
3.4
|
|
|
Debt/equity
ratio (adjusted for subordinated debt)
|
|
3.1
|
|
3.2
|
|
3.2
|
|
7
AerCap Holdings N.V.
Consolidated Income Statements - Unaudited
(In
thousands of U.S. Dollars, except share and per share data)
|
|
|
Three months ended
|
|
Nine months ended
|
|
|
|
|
September 30,
|
|
September 30,
|
|
|
|
|
2010
|
|
2009
|
|
2010
|
|
2009
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
Lease
revenue
|
|
$
|
254,008
|
|
$
|
153,890
|
|
$
|
690,013
|
|
$
|
484,932
|
|
|
Sales
revenue
|
|
218,194
|
|
49,012
|
|
728,779
|
|
208,608
|
|
|
Interest
revenue
|
|
748
|
|
2,433
|
|
3,617
|
|
7,656
|
|
|
Management
fee revenue
|
|
3,021
|
|
2,821
|
|
8,069
|
|
9,294
|
|
|
Other
revenue
|
|
2,117
|
|
4,354
|
|
6,319
|
|
5,217
|
|
|
Total Revenues
|
|
478,088
|
|
212,510
|
|
1,436,797
|
|
715,707
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses
|
|
|
|
|
|
|
|
|
|
|
Depreciation
|
|
89,946
|
|
55,663
|
|
239,920
|
|
160,153
|
|
|
Asset
impairment
|
|
2,761
|
|
382
|
|
5,482
|
|
21,332
|
|
|
Cost
of goods sold
|
|
202,053
|
|
39,973
|
|
671,875
|
|
179,293
|
|
|
Interest
on debt
|
|
75,144
|
|
32,844
|
|
202,075
|
|
68,319
|
|
|
Operating
lease in costs
|
|
3,057
|
|
3,268
|
|
9,271
|
|
9,855
|
|
|
Leasing
expenses
|
|
17,322
|
|
10,648
|
|
43,738
|
|
51,885
|
|
|
Provision
for doubtful notes and accounts receivable
|
|
514
|
|
55
|
|
1,030
|
|
408
|
|
|
Selling,
general and administrative expenses
|
|
21,710
|
|
27,806
|
|
86,488
|
|
82,796
|
|
|
Other
expenses
|
|
—
|
|
1,900
|
|
—
|
|
1,900
|
|
|
Total Expenses
|
|
412,507
|
|
172,539
|
|
1,259,879
|
|
575,941
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations before income taxes
|
|
65,581
|
|
39,971
|
|
176,918
|
|
139,766
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision
for income taxes
|
|
(6,144
|
)
|
(784
|
)
|
(15,892
|
)
|
(3,471
|
)
|
|
Amalgamation
gain, net of transaction expenses and tax
|
|
—
|
|
—
|
|
274
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income
|
|
59,437
|
|
39,187
|
|
161,300
|
|
136,295
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
(income) attributable to non-controlling interest
|
|
(7,559
|
)
|
(3,735
|
)
|
(26,168
|
)
|
(14,293
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income attributable to AerCap Holdings N.V.
|
|
$
|
51,878
|
|
$
|
35,452
|
|
$
|
135,132
|
|
$
|
122,002
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
and diluted earnings per share
|
|
$
|
0.43
|
|
$
|
0.42
|
|
$
|
1.25
|
|
$
|
1.43
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average shares outstanding - basic and diluted
|
|
119,386,445
|
|
85,036,957
|
|
107,936,616
|
|
85,036,957
|
|
* The increase of $42.3 million in interest on debt
in the third quarter 2010 as compared to the third quarter 2009 was primarily
driven by (i) a $8.1 million increase in the mark-to-market on interest
rate caps, (ii) a $15.0 million increase from the Genesis Transaction and
(iii) the increase in our lease portfolio from the delivery of our forward
order aircraft. The same items were also the primary drivers for the increase
in the nine month period ended September 30, 2010 as compared to the nine
month period ended September 30, 2009.
8
AerCap Holdings N.V.
Consolidated Statements of Cash Flows - Unaudited
(In
thousands of U.S. Dollars)
|
|
|
Three months ended
|
|
Nine months ended
|
|
|
|
|
September 30,
|
|
September 30,
|
|
|
|
|
2010
|
|
2009
|
|
2010
|
|
2009
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
59,437
|
|
39,187
|
|
161,300
|
|
136,295
|
|
|
Adjustments to reconcile net income to net cash provided by
operating activities
|
|
|
|
|
|
|
|
|
|
|
Depreciation
|
|
89,945
|
|
55,663
|
|
239,919
|
|
160,153
|
|
|
Asset
impairment
|
|
2,761
|
|
382
|
|
5,482
|
|
21,332
|
|
|
Amortisation
of debt issuance cost
|
|
7,347
|
|
3,901
|
|
19,677
|
|
11,789
|
|
|
Amortisation
of intangibles
|
|
5,930
|
|
3,294
|
|
16,092
|
|
12,499
|
|
|
Provision
for doubtful notes and accounts receivable
|
|
563
|
|
587
|
|
920
|
|
940
|
|
|
Capitalised
interest on pre-delivery payments
|
|
(155
|
)
|
(225
|
)
|
(468
|
)
|
(934
|
)
|
|
Gain
on disposal of assets
|
|
(6,798
|
)
|
21
|
|
(36,050
|
)
|
1,039
|
|
|
Mark-to-market
of non-hedged derivatives
|
|
(5,931
|
)
|
3,862
|
|
35,905
|
|
(15,642
|
)
|
|
Deferred
taxes
|
|
6,007
|
|
724
|
|
14,292
|
|
1,863
|
|
|
Share-based
compensation
|
|
99
|
|
912
|
|
1,656
|
|
2,910
|
|
|
Changes in assets and liabilities
|
|
|
|
|
|
—
|
|
|
|
|
Trade
receivables and notes receivable, net
|
|
(9,459
|
)
|
(11,378
|
)
|
(3,308
|
)
|
(5,850
|
)
|
|
Inventories
|
|
2,885
|
|
35,867
|
|
11,761
|
|
33,146
|
|
|
Other
assets and derivative assets
|
|
2,120
|
|
(3,791
|
)
|
(5,516
|
)
|
(14,521
|
)
|
|
Other
liabilities
|
|
(13,298
|
)
|
(26,865
|
)
|
(26,850
|
)
|
(63,627
|
)
|
|
Deferred
revenue
|
|
9,057
|
|
(3,326
|
)
|
21,054
|
|
(1,442
|
)
|
|
Net cash provided by operating activities
|
|
150,510
|
|
98,815
|
|
455,866
|
|
279,950
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchase
of flight equipment
|
|
(467,600
|
)
|
(271,054
|
)
|
(1,788,962
|
)
|
(845,868
|
)
|
|
Proceeds
from sale/disposal of assets
|
|
167,862
|
|
1,891
|
|
593,625
|
|
80,243
|
|
|
Prepayments
on flight equipment
|
|
(25,979
|
)
|
(116,693
|
)
|
(110,759
|
)
|
(403,054
|
)
|
|
Purchase
of subsidiaries, net of cash acquired
|
|
—
|
|
—
|
|
70,618
|
|
—
|
|
|
Purchase
of investments
|
|
—
|
|
—
|
|
(7,500
|
)
|
—
|
|
|
Purchase
of intangibles
|
|
—
|
|
—
|
|
(9,006
|
)
|
—
|
|
|
Movement
in restricted cash
|
|
12,508
|
|
7,117
|
|
(61,752
|
)
|
(7,670
|
)
|
|
Net cash used in investing activities
|
|
(313,209
|
)
|
(378,739
|
)
|
(1,313,736
|
)
|
(1,176,349
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
Issuance
of debt
|
|
496,126
|
|
562,464
|
|
2,112,408
|
|
1,843,442
|
|
|
Repayment
of debt
|
|
(327,805
|
)
|
(313,149
|
)
|
(1,213,445
|
)
|
(1,081,578
|
)
|
|
Debt
issuance costs paid
|
|
(12,809
|
)
|
(6,212
|
)
|
(48,093
|
)
|
(20,325
|
)
|
|
Maintenance
payments received
|
|
38,030
|
|
25,546
|
|
106,563
|
|
74,429
|
|
|
Maintenance
payments returned
|
|
(5,843
|
)
|
(8,011
|
)
|
(28,567
|
)
|
(33,620
|
)
|
|
Security
deposits received
|
|
7,971
|
|
9,222
|
|
24,892
|
|
32,287
|
|
|
Security
deposits returned
|
|
(8,187
|
)
|
(9,020
|
)
|
(25,315
|
)
|
(16,550
|
)
|
|
Capital
contributions from non-controlling interests
|
|
—
|
|
—
|
|
32,375
|
|
104,200
|
|
|
Net cash provided by financing activities
|
|
187,483
|
|
260,840
|
|
960,818
|
|
902,285
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
increase in cash and cash equivalents
|
|
24,784
|
|
(19,084
|
)
|
102,948
|
|
5,886
|
|
|
Effect
of exchange rate changes
|
|
723
|
|
4,038
|
|
198
|
|
3,928
|
|
|
Cash
and cash equivalents at beginning of period
|
|
260,256
|
|
218,423
|
|
182,617
|
|
193,563
|
|
|
Cash and cash equivalents at end of period
|
|
285,763
|
|
203,377
|
|
285,763
|
|
203,377
|
|
Certain
reclassifications have been made to prior years consolidated statements of cash
flow to reflect the current year presentation.
9