Breaking News

Tweet TWEET

FLY Leasing Reports First Quarter 2013 Financial Results

           FLY Leasing Reports First Quarter 2013 Financial Results

PR Newswire

DUBLIN, May 2, 2013

DUBLIN, May 2, 2013 /PRNewswire/ --FLY Leasing Limited (NYSE: FLY) ("FLY"), a
global lessor of modern, fuel-efficient commercial jet aircraft, today
announced its financial results for the first quarter of 2013.

First Quarter 2013 Highlights

  oAdjusted net income of $38.5 million, $1.37 per share
  oNet income of $32.8 million, $1.15 per share
  oSold one A320, six B717s and two B737 Classics for a pre-tax gain of $6.5
    million
  oReduced financial leverage to 3.2x at quarter end
  oDeclared our 22^nd consecutive quarterly dividend on April 15^th ($0.22
    per share)
  oIn April purchased a new B737-800 on a long lease to an Asian airline

"FLY is reporting another strong quarter, with higher revenues, lower
expenses, a reduced debt to equity ratio and a stronger cash position," said
Colm Barrington, CEO of FLY Leasing. "Our higher revenues were positively
impacted by end of lease revenues and aircraft sales proceeds. During the
quarter we continued our strategy of actively managing our fleet by selling
one A320, our six B717s and two B737 Classics for a gain of more than $6
million."

"In the quarter FLY reduced its debt by more than $70 million while increasing
its unrestricted cash to nearly $200 million. As a result we have more than
achieved our 3.5x leverage target, with actual net leverage of 3.2x at quarter
end. FLY's net book value exceeded $20 per share at the end of the quarter."

"Our nearly $200 million of free cash provides us with funds to achieve our
growth targets for the year. In April, we purchased a new B737-800 on a
long-term lease to an Asian airline. All but one of FLY's 38 B737s are now
Next Generation aircraft." added Barrington. "In the meantime, forecasts for
the global airline industry have become increasingly positive."

Financial Results

FLY is reporting net income for the first quarter of 2013 of $32.8 million or
$1.15 per basic and diluted share. This compares to net income of $20.4
million or $0.78 per basic and diluted share for the same period in 2012. The
increase in net income is due to gains recognized from the sale of six Boeing
717 aircraft during the first quarter of 2013 and an increase in end of lease
income over the same period in the previous year.

Total revenues were $114.4 million for the 1^st quarter of 2013 and include
$6.5 million in gains from aircraft sales. This compares to total revenues of
$104.5 million in the same period in the previous year. Included within the
$107.4 million of operating lease revenue for the first quarter of 2013 is
$30.6 million of end of lease income. End of lease income for the same period
in the previous year was $15.9 million.

Adjusted Net Income

Adjusted Net Income was $38.5 million for the first quarter of 2013 compared
to $26.8 million in the same period in the previous year. On a per share
basis, Adjusted Net Income was $1.37 in the first quarter of 2013 compared to
$1.04 for the same period in the previous year.

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

Dividends and Share Repurchases 

On April 15, 2013, FLY declared a dividend of $0.22 per share in respect of
the first quarter of 2013. This dividend will be paid on May 20, 2013 to
shareholders of record on April 30, 2013. This is FLY's 22^nd consecutive
quarterly dividend.

On May 1, 2013, the Company's board of directors approved a $30 million share
repurchase program expiring in May 2014 to replace the previous program.
Under this program, FLY may make share repurchases from time to time in the
open market or in privately negotiated transactions. The timing of the
repurchases under this program will depend upon a variety of factors,
including market conditions, and the program may be suspended or discontinued
at any time.

Financial Position

At March 31, 2013, FLY's total assets were $2.9 billion, including flight
equipment with a net book value of $2.5 billion. Cash and cash equivalents at
March 31, 2013 totaled $344.7 million, of which $196.7 million was
unrestricted. This compares to total cash and cash equivalents of $300.6
million at December 31, 2012, of which $163.1 million was unrestricted.

FLY's net leverage, defined as the ratio of net debt to total shareholders'
equity was 3.2x at March 31, 2013 compared to 3.6x at December 31, 2012. FLY
has surpassed its stated goal of returning net leverage to less than 3.5x.
Net debt is defined as book value of secured borrowings, less unrestricted
cash and cash equivalents.

Aircraft Portfolio

At March 31, 2013, FLY's 100 aircraft were on lease to 52 airlines in 32
countries. The table below shows the aircraft in FLY's portfolio as of March
31, 2013 and December 31, 2012. The table does not include four B767 aircraft
owned by a joint venture in which FLY has a 57% interest.

             Mar 31, Dec 31,
Portfolio at
             2013    2012
Airbus A319  19      19
Airbus A320  26      27
Airbus A330  1       1
Airbus A340  3       3
Boeing 717   -       6
Boeing 737   38      40
Boeing 747   1       1
Boeing 757   11      11
Boeing 767   1       1
 Total    100     109

At March 31, 2013, the average age of the portfolio was 9.6 years weighted by
the net book value of each aircraft. The average remaining lease term was 2.9
years, also weighted by net book value. At March 31, 2013, FLY's leases were
generating annualized rental revenues of approximately $307 million. For the
first quarter of 2013, FLY's lease utilization factor was 94%.

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, May 2, 2013.
Participants should call +1-706-758-4339 (International) or 877-309-0213
(North America) and enter confirmation code 30889368 or ask an operator for
the FLY Leasing earnings call. A replay will be available shortly after the
call. To access the replay, please dial +1-404-537-3406 (International) or
855-859-2056 (North America) and enter confirmation code 30889368. The replay
recording will be available until May 8, 2013.

A live webcast of the conference call will be also available in the investor
section of FLY's website at www.flyleasing.com. An archived webcast will be
available for one year.

About FLY

FLY acquires and leases modern, high-demand and fuel-efficient commercial jet
aircraft under multi-year operating lease contracts to a diverse group of
airlines throughout the world. FLY is managed and serviced by BBAM LP, one of
the world's leading aircraft lease managers with more than 20 years of
experience. 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. 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 month  Three month

                                                 period ended   period ended

                                                 Mar. 31, 2013  Mar. 31, 2012

                                                 (Unaudited)    (Unaudited)
Revenues
 Operating lease revenue                       $ 107,374     $  102,422
 Gain on sale of aircraft                      6,451          -
 Equity earnings from unconsolidated           422            1,855
subsidiaries
 Interest and other income                     118            230
Total revenues                                   114,365        104,507
Expenses
 Depreciation                                  34,536         34,175
 Interest expense                              31,021         37,022
 Selling, general and administrative           9,704          9,417
 Ineffective and dedesignated derivatives      (68)           (19)
 Maintenance and other costs                   1,390          878
Total expenses                                   76,583         81,473
Net income before provision for income taxes     37,782         23,034
 Provision for income taxes                    4,937          2,647
Net income                                       $ 32,845      $  20,387
Weighted average number of shares
- Basic                                         28,069,196     25,714,002
- Diluted                                       28,162,680     25,838,621
Earnings per share
- Basic and diluted                             $ 1.15        $  0.78
Dividends declared and paid per share            $  0.22       $  0.20

FLY Leasing Limited
Consolidated Balance Sheets
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)
                                                       Mar. 31,    Dec. 31,

                                                       2013        2012

                                                       (Unaudited) (Audited)
Assets
 Cash and cash equivalents                           $ 196,724  $ 163,124
 Restricted cash and cash equivalents.               148,004     137,457
 Rent receivables                                    3,851       3,124
 Investment in unconsolidated joint ventures         6,730       6,308
 Flight equipment held for operating lease, net      2,516,513   2,616,864
 Deferred tax asset, net                             6,112       9,450
 Fair market value of derivative asset               78          319
 Other assets, net                                   28,138      32,026
Total assets                                           2,906,150   2,968,672
Liabilities
 Accounts payable and accrued liabilities            14,268      15,662
 Rentals received in advance                         12,471      14,402
 Payable to related parties                          3,738       2,789
 Security deposits                                   45,326      47,474
 Maintenance payment liabilities                     216,020     225,733
 Secured borrowings, net                             1,981,774   2,052,412
 Fair market value of derivative liabilities         38,837      48,967
 Other liabilities                                   30,377      29,231
Total liabilities                                      2,342,811   2,436,670
Shareholders' equity
Common shares, $0.001 par value, 499,999,900 shares
authorized; 28,124,536 and 28,040,305 shares issued    28          28
and outstanding at March 31, 2013 and December 31,
2012, respectively
 Manager shares, $0.001 par value; 100 shares        −           −
authorized, issued and outstanding
 Additional paid in capital                          484,539     482,733
 Retained earnings                                   109,377     83,138
 Accumulated other comprehensive loss, net           (30,605)    (33,897)
Total shareholders' equity                             563,339     532,002
Total liabilities and shareholders' equity             $ 2,906,150 $ 2,968,672

FLY Leasing Limited
Reconciliation of Adjusted Net Income, a Non-GAAP Financial Measure, to Net
Income
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)
                                                   Three month   Three month

                                                   period ended  period ended

                                                   Mar. 31, 2013 Mar. 31, 2012

                                                   (Unaudited)   (Unaudited)
Net Income                                         $  32,845    $  20,387
Add (less):
 Ineffective portion of cash flow hedges         (68)          (19)
 Non-cash share-based compensation               1,806         842
 Adjustments related to GAAM Portfolio
acquisition:
Amortization of fair value adjustments recorded in 4,522         6,422
purchase accounting
 Income tax effects                              (566)         (840)
Adjusted Net Income                                $ 38,539     $  26,792
Weighted average diluted shares outstanding        28,162,680    25,838,621
Adjusted Net Income per share                      $   1.37   $  1.04

Adjusted Net Income Plus Depreciation and Amortization, a Non-GAAP Financial
Measure
(DOLLARS IN THOUSANDS)
                                                Three month     Three month

                                                period ended    period ended

                                                Mar. 31, 2013   Mar. 31, 2012

                                                (Unaudited)     (Unaudited)
Adjusted Net Income                             $ 38,539        $  26,792
Add:
 Depreciation                                 34,536          34,175
 Other amortization                           4,946           3,784
 Deferred income taxes                        4,640           3,020
Adjusted net income plus depreciation and       $ 82,661        $ 67,771
amortization

FLY defines Adjusted Net Income as net income plus or minus the ineffective
portion of cash flow hedges, non-cash share-based compensation and adjustments
related to the GAAM portfolio acquisition comprised primarily of amortization
of fair value adjustments recorded in purchase accounting. Management believes
that Adjusted Net Income provides useful information about operating
performance and period-over-period comparisons. It also provides additional
information that is useful in evaluating the underlying operating performance
of our business without regard to the impact of items such as fair value
adjustments of debt that the company has assumed, acquired leases and
derivative instruments and some non-recurring items of income and expense
affecting current period results. Adjusted Net Income should be used as a
supplement to and not as a substitute for financial measures determined in
accordance with Accounting Principles Generally Accepted in the United States
(GAAP).

Adjusted Net Income Plus Depreciation and Amortization is a cash flow measure
that provides investors with an additional measure for evaluating FLY's
ongoing cash earnings, from which capital investments are made, debt is
serviced and dividends are paid. However, adjusted net income plus
depreciation and amortization excludes certain positive and negative cash
items, including principal payments, and has certain important limitations as
an indicator of FLY's ability to pay dividends and reinvest in its business.
Management uses Adjusted Net Income and Adjusted Net Income Plus Depreciation
and Amortization as a measure for assessing FLY's performance. These measures
should be considered in addition to, not as a substitute for net income or
other financial measures determined in accordance with GAAP. Finally, FLY's
definitions may be different than those used by other companies.

SOURCE FLY Leasing Limited

Website: http://www.babcockbrown.com
 
Press spacebar to pause and continue. Press esc to stop.