AerCap Q2 results

Dino D'Amore
By Dino D'Amore August 12, 2015 15:36

AerCap Q2 results

AerCap has posted net income of $309.1 million, compared with $123.7 million for the same period in 2014. Basic earnings per share were $1.48, compared with $0.75 for the same period in 2014. Increases in reported net income and earnings per share over the second quarter 2014 were driven primarily by the full quarter impact of the ILFC acquisition, gain on sale of assets and a gain from the settlement of a residual value guarantee.

AerCap’s adjusted net income increased by 93% to $361.1 million, compared with $187.1 million for the same period in 2014. Adjusted basic earnings per share rose 52% to $1.73, compared with $1.14 for 2014.

AerCap’s debt/equity ratio fell to 3.3 to 1 as of June 30, 2015 compared to 3.8 to 1 in the year-ago period.

AerCap’s total assets were $44.1 billion as of June 30, 2015.

Basic lease rents were $1,164.6 million for the second quarter of 2015, compared with $716.7 million for the same period in 2014. The increase was driven primarily by the full quarter impact of the ILFC Transaction and new lease contracts relating to new aircraft purchases. AerCap’s average lease assets for the second quarter 2015 were $36.6 billion, compared with $22.5 billion for the same period in 2014.

The lessor’s lease revenue for the second quarter of 2015 was $1,234.3 million, compared with $745.7 million in the year-ago period.

AerCap made a net gain on sale of assets for the second quarter of 2015 of $54.6 million, relating to the sale of 13 aircraft, compared with a net loss of $0.9 million for the same period in 2014. During the second quarter of 2015, AerCap also parted-out one aircraft and reclassified two aircraft to finance leases, which had no impact on net gain on sale of assets.

Other income for the second quarter of 2015 was $48.6 million, compared with $44.4 million for the same period in 2014. This included a gain of $17.0 million from the settlement of a residual value guarantee and a gain of $19.9 million from the sale of an investment.

AerCap’s fleet utilization rate is 99.1% with 6.0 years average remaining contracted lease term as of June 30, 2015.

Aengus Kelly, CEO of AerCap, said: “AerCap is proud to have delivered record results again this quarter which reflects the earnings consistency in the aircraft leasing sector and the power of our franchise. In addition to outstanding operating results, we also completed in the second quarter a highly successful $3.5 billion secondary share offering, a landmark order for 100 Boeing 737 MAX 8 aircraft and a $750 million share repurchase representing over 7% of our outstanding shares. The highly accretive share repurchase was financed in part by a subordinated debt issuance. AerCap remains totally committed to delivering long term shareholder value by delivering consistent operating results and taking advantage of accretive opportunities as they arise. Our second quarter performance is a reflection of this commitment.”

Dino D'Amore
By Dino D'Amore August 12, 2015 15:36