Fly Leasing Limited releases second-quarter 2019 financial results

Darren Wood
By Darren Wood August 23, 2019 09:39

Fly Leasing Limited releases second-quarter 2019 financial results

Fly Leasing Limited has released its second quarter 2019 financial results which includes the firm gaining a net income of $54 million – an increase from the net income of $24.3 million for the same period in 2018.

Its adjusted net income stood at $62 million an increase from the $25.2 million for the same period in the previous year.

The firm sold seven aircraft for an economic gain of $18.9 million, a 10% premium to book value.

Fly Leasing Limited repurchased 1.47 million shares at an average price of $16.53 per share.

During the period, the firm purchased two aircraft for $60.9 million.

“FLY continues to achieve record results, producing its fifth straight quarter of double-digit ROE,” said Colm Barrington, FLY’s chief executive officer. “Our renewed fleet contributed to a 13% increase in operating lease rental revenue compared to the same quarter last year. Economic gains of nearly $19 million from the sale of seven aircraft helped us to achieve record Adjusted Net Income of $61.9 million, or $1.92 per share, in the quarter, and Adjusted Net Income of $109.0 million, or $3.37 per share, for the first six months of the year. Looking ahead, we expect another strong result in the third quarter.

“As a result of our deleveraging strategy following last year’s major fleet acquisition, we have met our leverage target a year ahead of schedule,” said Barrington. “We also have been repurchasing stock, buying back 1.47 million shares in the quarter. FLY will begin taking delivery of its $1 billion of contracted A320neo family aircraft later this year, and is wellpositioned to add aircraft as opportunities arise.

“We sold seven aircraft in the quarter at a 10% premium to book value, and in the third quarter, we have contracted to sell 14 more aircraft, also at gains, again demonstrating the value embedded in FLY’s fleet.

“Our record results have also added significantly to shareholders’ equity, which is now over $24 per share and 13% above the level at the end of 2018. We continue to see great value in FLY’s shares, which are trading at a 26% discount to book value. At its August meeting, FLY’s board of directors authorised a new $50 million share repurchase program.”

A reconciliation of Adjusted Net Income to net income determined in accordance with GAAP is shown below.

During the six months ended June 30, 2019, FLY repurchased 1.67 million shares in the open market at an average price of $16.18 per share, for a total cost of $27.0 million. As of June 30, 2019, FLY had approximately 31 million shares outstanding. On August 21, 2019, FLY’s board of directors approved a new $50 million share repurchase program to replace its current program.

Darren Wood
By Darren Wood August 23, 2019 09:39