AerCap Holdings N.V. Reports Fourth Quarter and Full Year 2010 Financial Results

AMSTERDAM, Feb. 24, 2011 /PRNewswire/ — AerCap Holdings N.V. (the “Company” or “AerCap”) (NYSE: AER) today announced the results of its operations for the fourth quarter and full year ended December 31, 2010.

Fourth Quarter 2010 Highlights

Fourth quarter 2010 basic and diluted earnings per share was $0.53, compared to earnings per share of $0.51 for the same period in 2009. Fourth quarter 2010 basic and diluted earnings per share excluding the impact of the mark-to-market of interest rate caps and share-based compensation was $0.41, compared to $0.47 in fourth quarter 2009 on the same basis.

Fourth quarter 2010 net income was $72.4 million, compared to net income of $43.2 million for the same period in 2009. Fourth quarter 2010 net income excluding the impact of the mark-to-market of interest rate caps and share-based compensation was $56.3 million, compared to net income of $40.3 million in fourth quarter 2009 on the same basis.

Margin earned on lease assets (net spread) was $187.2 million in fourth quarter 2010 compared to $126.4 million in fourth quarter 2009, an increase of 48%.
Basic lease rents for the fourth quarter of 2010 were $245.2 million, compared to $156.6 million for the same period in 2009, an increase of 57%. Total lease revenue (basic rents, maintenance rents and end-of-lease compensation) for the fourth quarter of 2010 was $270.8 million, compared to $165.7 million for the same period in 2009, an increase of 63%.

Sales revenue for the fourth quarter 2010 was $121.3 million, compared to $115.9 million for the same period in 2009, and was generated from the sale of three aircraft, three engines and parts inventory.

Total revenue for the fourth quarter of 2010 was $397.7 million, compared to $287.6 million for the same period in 2009. The increase was mainly due to the 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 $9.6 billion at December 31, 2010, an increase of 42% over total assets of $6.8 billion at December 31, 2009. The Genesis Transaction accounted for $1.5 billion of the increase in total assets. The remaining $1.3 billion increase was driven primarily by deliveries of forward order aircraft.

Full Year 2010 Key Financial Highlights

Full year 2010 net income was $207.6 million, compared to $165.2 million for the full year 2009. Full year 2010 net income excluding the impact of the mark-to-market of interest rate caps and share-based compensation was $223.9 million, an increase of 49% compared to $150.2 million for the full year 2009. This increase was mainly caused by the Genesis Transaction and the deliveries of forward order aircraft.

Full year 2010 basic and diluted earnings per share was $1.81, compared to $1.94 for the full year 2009. Full year 2010 basic and diluted earnings per share excluding the impact of the mark-to-market of interest rate caps and share-based compensation was $1.95, compared to $1.77 for the full year 2009.

Margin earned on lease assets (net spread) was $665.8 million for the full year 2010, up 43% compared to the full year 2009.

Basic lease rents for the full year 2010 were $878.4 million, up 51% compared to the full year 2009.

Sales revenue for the full year 2010 was $850.0 million, up 162% compared to the full year 2009 and was generated from the sale of 16 aircraft, 16 engines and parts inventory.

Total revenue for the full year 2010 was $1.8 billion, up 83% compared to the full year 2009 resulting primarily from sales revenue and an increase in basic lease rents driven by the additional aircraft acquired in the Genesis Transaction and the deliveries of forward order aircraft.

Aviation assets purchased and delivered in 2010 were $2.6 billion.

Klaus Heinemann, CEO of AerCap, commented: “AerCap’s full year 2010 key financial highlights establish a new benchmark for the three P’s that define a successful aircraft lessor. First, the Platform: AerCap’s Operating Platform, managing global airline, manufacturer and investor relationships, is now among the three leading franchises and the largest independent franchise measured by aircraft asset value. Second, the Portfolio: AerCap’s Aircraft Asset Portfolio consists primarily of the youngest, most fuel-efficient aircraft currently in production. The success of this Portfolio is best highlighted by its 2010 net spread of $666 million. Third, the Profitability: AerCap’s 2010 Profit of $224 million after adjustments sets a new record in AerCap’s history. Our earnings per share of $1.95 after adjustments highlights our ability to effectively integrate transactions such as the Genesis amalgamation and the Waha transaction without dilutive effects for existing shareholders, even in the year of completion.”

AerCap’s CFO, Keith Helming, added: “2010 represents an outstanding year for AerCap marked by several noteworthy financial achievements. The Company had a 83% rise in total revenue compared to 2009 driven by strong sales. Our net spread and net income rose by 43% and 26%, respectively, for the full year 2010, both representing historic highs for the Company. Our lease assets grew 54% during 2010, driven by the Genesis Transaction and forward order aircraft deliveries. In addition, our growth commitments continue to be well supported by our financing partners, as we entered into debt facility agreements totaling $1.6 billion in 2010. Finally, we ended fiscal year 2010 with $627 million of cash, which when combined with the financing commitments positions AerCap to benefit further from the recovery of the global aviation sector.”

Summary of Financial Results

AerCap recorded fourth quarter 2010 net income of $72.4 million or $0.53 earnings per basic and diluted share. Fourth quarter 2010 net income included net income relating to mark-to-market of interest rate caps and share-based compensation of $16.1 million or $0.12 per basic and diluted share, net of tax. The after-tax gain relating to the mark-to-market of our interest rate caps was $17.5 million and the after-tax charge from share-based compensation was $1.4 million.