MARCH 11TH, 2015
FLY Leasing Reports Fourth Quarter and Full Year 2014 Financial Results
Dublin, Ireland, March 11, 2015 – FLY Leasing Limited (NYSE: FLY), a global leader in aircraft leasing, today announced its financial results for the fourth quarter and full year of 2014.
Fourth Quarter 2014 Highlights
• Net income of $15.5 million, $0.37 per share
• Total revenues of $120.3 million, 40% up on Q4 2013
• Acquired six aircraft for $275.7 million, increasing portfolio to 127 aircraft • Raised $400 million in unsecured debt to finance aircraft acquisitions
• Declared 29th consecutive quarterly dividend
2014 Full Year Highlights
• Net income of $56.1 million, $1.32 per share
• Total revenues of $426.7 million, 15% up on prior year • Grew portfolio value by 22% to $3.7 billion
• Invested $951.5 million in 22 aircraft
• Sold eight aircraft for a net gain of $18.9 million
• Unrestricted cash of $337.6 million at year end
• Paid four quarterly dividends totaling $1.00 per share
“FLY is reporting strong fourth quarter and full year results,” said Colm Barrington, FLY’s CEO. “Our fourth quarter and full year revenues are up 40% and 15%, respectively, driven by the successful rejuvenation of our fleet through the acquisition of newer aircraft and the sale of older models. This strategy has lowered the average age of our fleet to 7.8 years and increased our average lease term to over five years. We grew our book value per share to $18.32.”
“This is the second successive year in which we have grown our fleet substantially,” added Barrington. “In 2014, we bought 22 aircraft, mainly through sale and leaseback transactions with airlines, increasing our fleet value by 22% to more than $3.7 billion. In addition, we have continued to monetize older aircraft at premiums to book value, demonstrating the strong inherent value in our fleet. And we have continued to pay attractive quarterly dividends of 25 cents per share.”
“The global airline industry is in a healthy state, spurred by increasing passenger traffic and lower fuel prices. Airline profits reached record levels in 2014, with further improvements forecast for 2015. This industry health has stimulated demand from our airline customers to grow their fleets, and with aircraft manufacturers sold out for many years ahead, leasing is a key source of additional capacity. With ample capital and a nimble strategy that allows us to act
quickly to take advantage of opportunities in the market, FLY is in an excellent position to continue its growth and deliver value to its shareholders,” said Barrington.
FLY is reporting Net income of $15.5 million or $0.37 per diluted share for the fourth quarter of 2014. This compares to Net income of $13.4 million or $0.32 per diluted share for the same period of 2013. The fourth quarter 2014 results include $21.7 million of end of lease income compared to the fourth quarter of 2013 in which there was none. However, the fourth quarter 2013 results included $18.6 million in net gains associated with refinancing transactions.
Total revenues for the fourth quarter of 2014 were $120.3 million, compared to $85.5 million for the same period in the previous year, an increase of 40.7%.
Net income for the year ended December 31, 2014 was $56.1 million or $1.32 per diluted share compared to $52.5 million or $1.50 per diluted share for 2013. For 2014, end of lease income was $39.8 million and gains on aircraft sales totaled $18.9 million. The 2013 results included $47.6 million in end of lease income and $6.3 million in gains on aircraft sales.
Total revenues for 2014 were $426.7 million, compared to $369.5 million in 2013, an increase of 15.5%.
Adjusted Net Income
Adjusted Net Income was $16.9 million for the fourth quarter of 2014 compared to $4.9 million in the same period in the previous year. On a per share basis, Adjusted Net Income was $0.41 in the fourth quarter of 2014 compared to $0.12 in the fourth quarter of 2013.
For each of the years ended December 31, 2014 and 2013, Adjusted Net Income was $57.4 million. On a per share basis, Adjusted Net Income was $1.38 in 2014 and $1.68 in 2013.
A reconciliation of Adjusted Net Income to net income determined in accordance with GAAP is shown below.
On February 20, 2015, FLY paid a dividend of $0.25 per share in respect of the fourth quarter of 2014 to shareholders of record on January 30, 2015. This dividend is FLY’s 29th consecutive quarterly dividend and brought the total dividend in respect of 2014 to $1.00 per share. Dividends paid since FLY was listed in September 2007 total $7.37 per share.
At December 31, 2014, FLY’s total assets were $4.2 billion, including flight equipment with a net book value of $3.7 billion. Total cash at December 31, 2014 was $476.7 million, of which $337.6 million was unrestricted.
At December 31, 2014, FLY’s 127 aircraft, shown in the table below, were on lease to 64 lessees in 36 countries.
At December 31, 2014, the average age of FLY’s fleet, weighted by the net book value of each aircraft, was 7.8 years compared to 8.6 years at December 31, 2013. The average remaining lease term, also weighted by net book value, was 5.3 years as of December 31, 2014, an increase of approximately 12 months from the prior year. At December 31, 2014, FLY’s leases were generating annualized revenues of approximately $420 million. FLY’s lease utilization factor was 99% for the fourth quarter of 2014 and for the year ended December 31, 2014. At December 31, 2014, there were three aircraft off-lease.