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Fly Leasing reports net income of $9.6 million in Q2 2020

Fly Leasing reports net income of $9.6 million in Q2 2020

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Fly Leasing Limited, an aircraft leasing company, today announced its financial results for the second quarter of 2020.

Highlights

  • Net income of $9.6 million, $0.32 per share
  • Adjusted Net Income of $11.3 million, $0.37 per share
  • $29.46 book value per share at quarter end, a 21% increase since June 30, 2019
  • $289.0 million of unrestricted cash and cash equivalents
  • $597.9 million net book value of unencumbered assets
  • 1x net debt to equity

“Our second quarter results reflect the challenges of the COVID-19 pandemic but FLY remains in a strong position to meet its financial and operating commitments with unrestricted cash of $289 million and nearly $600 million of unencumbered aircraft,” said Colm Barrington, Chief Executive Officer of FLY. “FLY is reporting a record low net debt to equity ratio of 2.1x at quarter end and 21% growth in book value per share from a year ago to $29.46. FLY does not have any orders for aircraft or other capital commitments and has no significant near-term refinancing requirements.”

“We are working closely with our airline customers and now expect to agree to defer rents representing approximately 20% of contracted rental revenue for the second half of the year,” said Barrington. “Meanwhile, several of our lessees have received support from their governments, which is helping them to meet their payment obligations. FLY also has the benefit of BBAM’s decades of experience and expertise in navigating industry cycles, which is truly an invaluable resource during this time.”

Financial Results

FLY is reporting net income of $9.6 million, or $0.32 per share, for the second quarter of 2020. This compares to net income of $54.1 million, or $1.68 per share, for the same period in 2019.

Net income for the six months ended June 30, 2020 was $47.7 million, or $1.56 per share, compared to net income of $99.0 million, or $3.06 per share, for the six months ended June 30, 2019.

Adjusted Net Income

Adjusted Net Income was $11.3 million for the second quarter of 2020, compared to $61.9 million for the same period in the previous year. On a per share basis, Adjusted Net Income was $0.37 in the second quarter of 2020, compared to $1.92 for the second quarter of 2019.

For the six months ended June 30, 2020, Adjusted Net Income was $54.9 million, or $1.79 per share, compared to $109.0 million, or $3.37 per share, for the same period last year.

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

Financial Position

At June 30, 2020, FLY’s total assets were $3.5 billion, including investment in flight equipment totaling $3.0 billion. Total cash at June 30, 2020 was $309.3 million, of which $289.0 million was unrestricted. The book value per share at June 30, 2020 was $29.46, a 21% increase since June 30, 2019. At June 30, 2020, FLY’s net debt to equity ratio was 2.1x, a decrease from 2.3x at December 31, 2019.

Aircraft Portfolio

At June 30, 2020, FLY had 86 aircraft and seven engines in its portfolio. FLY’s aircraft and engines are on lease to 41 airlines in 25 countries. The table below does not include the engines.

Portfolio at Jun. 30, 2020 Dec. 31, 2019
  Number % of Net Book Value Number % of Net Book Value
Airbus A320ceo Family 33 28% 34 28%  
Airbus A320neo Family 1 2% 1 2%  
Airbus A330 3 6% 3 6%  
Boeing 737NG 40 37% 42 37%  
Boeing 737 MAX 2 3% 2 3%  
Boeing 757-SF 1 <1% 1 <1%  
Boeing 777-LRF 2 10% 2 10%  
Boeing 787 4 14% 4 14%  
      Total(1) 86 100% 89 100%  
(1) Includes six aircraft classified as held for sale as of December 31, 2019. No aircraft were held for sale as of June 30, 2020.  

At June 30, 2020, the average age of the portfolio, weighted by net book value of each aircraft and engine, was 8.0 years. The average remaining lease term was 4.9 years, also weighted by net book value. At June 30, 2020, FLY’s portfolio was generating annualized rental revenue of approximately $318 million.

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Source: eTurboNews Syndication

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