DUBLIN, May 11, 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 first quarter of 2017.
Highlights
- Net income of $5.1 million,
$0.16 per share
- Adjusted Net Income of $11.1
million, $0.34 per share
- Repurchased $8.5 million in
shares as of May 10
- Committed to nearly $300 million
in acquisitions
- Repriced, extended and upsized Term Loan to $450 million
"FLY is moving from a year of very active aircraft sales to
focusing on deploying our significant cash reserves," said
Colm Barrington, CEO of FLY.
"Following quarter end, we have committed to nearly $300 million of aircraft purchases. FLY has
financial resources to acquire up to $2.5
billion of additional aircraft and to continue to repurchase
our shares. We expect these future aircraft acquisitions to have a
material positive impact on our earnings."
"FLY has repurchased $8.5 million
in shares at a significant discount to net book value through
May 10," added Barrington. "We have
approximately $58 million remaining
in our current share repurchase authorization."
"We repriced, extended and upsized our Term Loan to $450 million in April, which will save
approximately $2 million in annual
interest expense," added Barrington. "This transaction demonstrates
FLY's continuing access to robust capital markets, and enhances its
already strong financial position."
Financial Results
FLY is reporting net income for the first quarter of 2017 of
$5.1 million, or $0.16 per diluted share. This compares to
net income of $7.1 million, or
$0.21 per diluted share, for the same
period in 2016.
Adjusted Net Income
Adjusted Net Income was $11.1
million for the first quarter of 2017 compared to
$16.2 million in the same period in
the previous year. On a per share basis, Adjusted Net Income
was $0.34 in the first quarter of
2017 compared to $0.47 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.
Share Repurchases
During the first quarter of 2017, 99,524 shares were repurchased
at an average cost of $12.95 per
share. At March 31, 2017,
approximately $65.4 million remained
available under the share repurchase program. Subsequent to
quarter end, another 560,858 shares were repurchased at an average
cost of $12.83. These share
prices are well below FLY's book value per share of $18.62 at March 31,
2017. As of May 10, 2017,
approximately $58 million remained
available under the share repurchase program.
Financial Position
At March 31, 2017, FLY's total
assets were $3.4 billion, including
an investment in flight equipment totaling $2.8 billion. Total cash at March 31, 2017 was $606.1
million, of which $536.9
million was unrestricted.
Aircraft Portfolio
At March 31, 2017, FLY's 76
aircraft, as shown in the table below, were on lease to 42 airlines
in 28 countries. The table does not show the two B767
aircraft owned by a joint venture in which FLY has a 57%
ownership.
|
Portfolio
at
|
Mar 31,
2017
|
Dec
31, 2016
|
Airbus
A319
|
9
|
9
|
Airbus
A320
|
12
|
12
|
Airbus
A321
|
3
|
3
|
Airbus
A330
|
3
|
3
|
Airbus
A340
|
2
|
2
|
Boeing 737
|
38
|
38
|
Boeing 757
|
3
|
3
|
Boeing 777
|
2
|
2
|
Boeing 787
|
4
|
4
|
Total
|
76
|
76
|
|
At March 31, 2017, the average age
of the portfolio was 6.4 years weighted by the net book value of
each aircraft. The average remaining lease term was 6.6 years, also
weighted by net book value. At March 31,
2017, FLY's leases were generating annualized rental revenue
of approximately $325 million.
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 11,
2017. Participants should dial +1-253-237-1145
(International) or 800-535-7056 (North
America) and enter confirmation code 94532798 or ask an
operator for the FLY Leasing earnings call. A live webcast of the
conference call will be also available in the investor relations
section of FLY's website at www.flyleasing.com. An archived webcast
will be available on FLY'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
acquires and leases its aircraft under multi-year operating 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,
including FLY's inability to achieve its portfolio growth
expectations or its failure to achieve the benefits of such growth.
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 Mar. 31, 2017
(Unaudited)
|
Three months
ended Mar. 31, 2016
(Unaudited)
|
Revenues
|
|
|
Operating lease rental
revenue
|
$
79,321
|
$
74,633
|
End of lease
revenue
|
1,239
|
3,206
|
Amortization of lease
incentives
|
(1,775)
|
(2,773)
|
Amortization of lease
premiums, discounts and other
|
(82)
|
(113)
|
Operating lease revenue
|
78,703
|
74,953
|
Finance lease
income
|
188
|
892
|
Gain on sale of
aircraft
|
--
|
5,143
|
Equity earnings from
unconsolidated subsidiary
|
125
|
133
|
Interest and other
income
|
250
|
87
|
Total
revenues
|
79,266
|
81,208
|
Expenses
|
|
|
Depreciation
|
32,051
|
28,839
|
Interest
expense
|
31,833
|
30,834
|
Selling, general and
administrative
|
8,292
|
8,269
|
(Gain) loss on
ineffective and dedesignated derivatives
|
(51)
|
286
|
Debt modification and
extinguishment costs
|
544
|
4,527
|
Maintenance and other
costs
|
472
|
1,199
|
Total
expenses
|
73,141
|
73,954
|
Net income before
provision for income taxes
|
6,125
|
7,254
|
Provision for income
taxes
|
1,073
|
154
|
Net
income
|
$
5,052
|
$
7,100
|
Weighted average
number of shares:
|
|
|
-
Basic
|
32,244,481
|
34,287,783
|
-
Diluted
|
32,301,322
|
34,288,608
|
Earnings per share
(net income per common share):
|
|
|
- Basic and
diluted
|
$
0.16
|
$
0.21
|
|
|
|
FLY Leasing
Limited
|
Consolidated
Balance Sheets
|
(DOLLARS IN
THOUSANDS, EXCEPT PER SHARE DATA)
|
|
|
Mar. 31,
2017 (Unaudited)
|
Dec. 31,
2016 (Audited)
|
Assets
|
|
|
Cash and cash
equivalents
|
$
536,877
|
$
517,964
|
Restricted cash and
cash equivalents
|
69,200
|
94,123
|
Rent
receivables
|
87
|
419
|
Investment in
unconsolidated subsidiary
|
7,825
|
7,700
|
Investment in finance
lease, net
|
14,774
|
15,095
|
Flight equipment held
for operating lease, net
|
2,666,926
|
2,693,821
|
Maintenance right
asset, net
|
101,969
|
101,969
|
Fair market value of
derivative assets
|
2,223
|
1,905
|
Deferred tax asset,
net
|
7,266
|
7,445
|
Other
assets
|
5,543
|
6,568
|
Total
assets
|
3,412,690
|
3,447,009
|
Liabilities
|
|
|
Accounts payable and
accrued liabilities
|
26,905
|
13,786
|
Rentals received in
advance
|
13,191
|
13,123
|
Payable to related
parties
|
2,152
|
5,042
|
Security
deposits
|
43,083
|
42,495
|
Maintenance payment
liability
|
195,421
|
182,571
|
Unsecured borrowings,
net
|
691,886
|
691,390
|
Secured borrowings,
net
|
1,774,373
|
1,831,985
|
Fair market value of
derivative liabilities
|
11,185
|
13,281
|
Deferred tax
liability, net
|
20,942
|
19,847
|
Other
liabilities
|
34,643
|
40,254
|
Total
liabilities
|
2,813,781
|
2,853,774
|
Shareholders' equity
|
|
|
Common shares, $0.001
par value, 499,999,900 shares authorized; 32,156,916 and 32,256,440
shares issued and outstanding at March 31, 2017 and December 31,
2016, respectively
|
32
|
32
|
Manager shares, $0.001
par value; 100 shares authorized, issued and outstanding
|
--
|
--
|
Additional paid in
capital
|
535,626
|
536,922
|
Retained
earnings
|
71,078
|
66,026
|
Accumulated other
comprehensive loss, net
|
(7,827)
|
(9,745)
|
Total
shareholders' equity
|
598,909
|
593,235
|
Total liabilities
and shareholders' equity
|
$
3,412,690
|
$
3,447,009
|
|
|
|
FLY Leasing
Limited
|
Consolidated
Statements of Cash Flows
|
(DOLLARS IN
THOUSANDS)
|
|
|
Three months ended
Mar. 31, 2017
(Unaudited)
|
|
Three months ended
Mar. 31, 2016
(Unaudited)
|
Cash Flows from
Operating Activities
|
|
|
|
Net Income
|
$
5,052
|
|
$
7,100
|
Adjustments to
reconcile net income to net cash flows provided by operating
activities:
|
|
|
|
Equity in earnings
from unconsolidated subsidiary
|
(125)
|
|
(133)
|
Finance lease
income
|
(188)
|
|
(892)
|
Gain on sale of
aircraft
|
--
|
|
(5,143)
|
Depreciation
|
32,051
|
|
28,839
|
Amortization of debt
discounts and issuance costs
|
2,119
|
|
2,360
|
Amortization of lease
incentives
|
1,775
|
|
2,773
|
Amortization of lease
premiums, discounts and other
|
83
|
|
113
|
Amortization of GAAM
acquisition fair value adjustments
|
475
|
|
672
|
Net loss on debt
modification and extinguishment
|
532
|
|
3,679
|
Unrealized foreign
exchange loss
|
219
|
|
1,001
|
Provision for deferred
income taxes
|
1,058
|
|
94
|
(Gain) loss on
derivative instruments
|
(181)
|
|
216
|
Security deposits and
maintenance payment liability recognized into earnings
|
--
|
|
(400)
|
Security deposits and
maintenance payment claims applied towards operating lease
revenues
|
--
|
|
(805)
|
Cash receipts from
maintenance rights
|
--
|
|
6,150
|
Changes in operating
assets and liabilities:
|
|
|
|
Rent
receivables
|
332
|
|
(751)
|
Other
assets
|
1,004
|
|
(141)
|
Payable to related
parties
|
(2,890)
|
|
(7,239)
|
Accounts payable,
accrued and other liabilities
|
12,205
|
|
18,065
|
Net cash flows
provided by operating activities
|
53,521
|
|
55,558
|
Cash Flows from
Investing Activities
|
|
|
|
Rent received from
finance lease
|
510
|
|
1,230
|
Proceeds from sale of
aircraft, net
|
--
|
|
155,359
|
Payments for aircraft
improvement
|
(5,157)
|
|
(3,034)
|
Payments for lessor
maintenance obligations
|
(6,456)
|
|
(514)
|
Net cash flows
(used in) provided by investing activities
|
(11,103)
|
|
153,041
|
|
|
|
|
Three months ended
Mar. 31, 2017
(Unaudited)
|
|
Three months ended
Mar. 31, 2016
(Unaudited)
|
Cash Flows from
Financing Activities
|
|
|
|
Restricted cash and
cash equivalents
|
24,923
|
|
76,058
|
Security deposits
received
|
525
|
|
--
|
Maintenance payment
liability receipts
|
16,341
|
|
17,968
|
Maintenance payment
liability disbursements
|
(3,531)
|
|
(662)
|
Swap termination
payments, net
|
--
|
|
(538)
|
Debt extinguishment
costs
|
(12)
|
|
--
|
Debt issuance
costs
|
--
|
|
(349)
|
Proceeds from secured
borrowings
|
--
|
|
16,756
|
Repayment of secured
borrowings
|
(60,496)
|
|
(239,645)
|
Shares
repurchased
|
(1,291)
|
|
(25,191)
|
Net cash flows
used in financing activities
|
(23,541)
|
|
(155,603)
|
Effect of exchange
rate changes on cash and cash equivalents
|
36
|
|
279
|
Net increase in
cash and cash equivalents
|
18,913
|
|
53,275
|
Cash and cash
equivalents at beginning of period
|
517,964
|
|
275,998
|
Cash and cash
equivalents at end of period
|
$
536,877
|
|
$
329,273
|
Supplemental
Disclosure:
|
|
|
|
Cash paid during
the period for:
|
|
|
|
Interest
|
$
17,515
|
|
$
16,573
|
Income
taxes
|
158
|
|
18
|
Supplemental
disclosure of noncash activities:
|
|
|
|
Other liabilities
applied to maintenance payment liability and rent
receivables
|
350
|
|
--
|
Noncash investing
activities:
|
|
|
|
Aircraft
improvement
|
--
|
|
2,338
|
Noncash activities in
connection with sale of aircraft
|
--
|
|
27,432
|
|
|
|
FLY Leasing
Limited
|
Reconciliation of
Non-GAAP Measures
|
(DOLLARS IN
THOUSANDS, EXCEPT PER SHARE DATA)
|
|
|
Three months ended
March 31, 2017
(Unaudited)
|
Three months ended
March 31, 2016
(Unaudited)
|
Net
income
|
$
5,052
|
$
7,100
|
Amortization of debt
discounts and loan issue costs
|
2,119
|
2,360
|
Amortization of lease
premiums, discounts and other
|
83
|
113
|
Amortization of fair
value adjustments recorded in purchase accounting
|
475
|
672
|
Net loss on debt
modification and extinguishment
|
544
|
4,527
|
Transaction fees and
expenses
|
1,605
|
--
|
Unrealized foreign
exchange loss
|
219
|
1,001
|
Deferred income
taxes
|
1,058
|
94
|
(Gain) loss on
ineffective, dedesignated and terminated derivatives
|
(51)
|
286
|
Adjusted Net
Income
|
$
11,104
|
$
16,153
|
Average
Shareholders' Equity
|
$
596,072
|
$
644,810
|
Adjusted Return on
Equity
|
7.5%
|
10.0%
|
|
|
|
Weighted average
diluted shares outstanding
|
32,301,322
|
34,288,608
|
Adjusted Net
Income per diluted share
|
$
0.34
|
$
0.47
|
FLY defines Adjusted Net Income as net income plus or minus (i)
non-cash amortization of debt discounts, loan issuance costs, lease
premiums and discounts, and other items; (ii) adjustments related
to the GAAM portfolio acquisition comprised primarily of
amortization of fair value adjustments recorded in purchase
accounting; (iii) net losses from debt modification and
extinguishment; (iv) transaction fees and expenses; (v) unrealized
foreign exchange losses; (vi) deferred income taxes; and (vii) the
ineffective portion and charges 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.
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visit:http://www.prnewswire.com/news-releases/fly-leasing-reports-first-quarter-2017-financial-results-300455964.html
SOURCE FLY Leasing Limited