Avolon Q1 results

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By admin May 7, 2015 15:29

Avolon Q1 results

Avolon has reported a 36% increase in net income to $49.4 million during the first quarter of 2015. Adjusted Net Income rose 34% to $62 million compared to the year-ago period. Total Revenue for the quarter was 175.7 million compared to $135.8 million in the first quarter of 2014.

Avolon reports a 280 basis point year-on-year increase in Adjusted Return on Equity to 16.6% compared to 13.8% in the year ago period. The Irish lessor also reported a 230 basis point year-on-year increase in Return on Equity to 13.3% compared to 11.0% in 2014.

During the reporting period, Avolon sold aircraft with a net book value of $145 million at a gain of $14.6 million or 10% premium to net book value. The lessor had undrawn debt of $920 million at end of the first quarter and reported a reduction in average interest rate from 4.3% in Q1 2014 to 3.7%.

Lease revenues increased 36% to $160.8 million from $118.2 million during the same period last year.

Post quarter end, Avolon put in place new eight year $675 million debt facility at margin of 165 basis points, which Dómhnal Slattery, CEO, Avolon, described as a “ milestone for the business” as the company’s ability to access this funding level “reflects the strength of our business, our credit profile and the quality of our franchise”.

During this first quarter, Avolon delivered eight aircraft to five airlines based in five countries in Q1, entered into $841 million of new sale and leaseback commitments in Q1.

Avolon owns 132 aircraft at end of Q1, while its Owned, Managed and Committed fleet totals 251 aircraft.

At end of Q1, average age of owned fleet of 2.6 years; average remaining lease term of 7.1 years.

Avolon reports that all new deliveries for 2015 and 2016 are placed, with sustained progress in developing committed pipeline for 2016 and 2017.

The lessor has re-affirmed 2015 full year expectations to deliver aircraft with a net book value of $1.6 billion and sell aircraft with a net book value of $700 million – delivering an Adjusted Return on Equity of 14.7% to 15.0%1 or a Return on Equity of 12.8% to 13.1%.

“Avolon delivered another strong performance in the first quarter of 2015 and again reported strong double-digit growth against all key financial and operating metrics,” said Dómhnal Slattery, CEO, Avolon. “We remain confident in the outlook for the business and the industry as a whole. We believe our balanced business model, underpinned by a disciplined risk management system and prudent balance sheet, will continue to deliver strong growth and drive returns for shareholders.”

admin
By admin May 7, 2015 15:29