FLY Leasing has reported net income of $5.1 million, $0.16 per share, for the first quarter of 2017. This compares to net income of $7.1 million, or $0.21 per diluted share, for the same period in 2016. Adjusted Net Income was $11.1 million or $0.34 per share compared to $16.2 million in the same period in the previous year. During the period, the lessor repurchased $8.5 million in shares and committed to nearly $300 million in acquisitions. It also 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.”
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.
At March 31, 2017, FLY’s 76 aircraft were on lease to 42 airlines in 28 countries. This does not include the two B767 aircraft owned by a joint venture in which FLY has a 57% ownership.
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.Date: May 11, 2017