|
Ireland |
|
Form 20-F
|
☒ |
Form 40-F
|
☐ |
Exhibit |
Title |
|
|
99.1 |
Press release of Fly Leasing Limited, dated March 7, 2019. |
Fly Leasing Limited
|
|||||
(Registrant)
|
|||||
Date:
|
March 7, 2019
|
By:
|
/s/ Colm Barrington
|
||
Colm Barrington
|
|||||
Chief Executive Officer and Director
|
·
|
Net income of $31.0 million, $0.95 per share
|
·
|
Adjusted Net Income of $30.8 million, $0.94 per share
|
·
|
26% increase in operating lease rental revenue
|
·
|
100% fleet utilization
|
·
|
Sold three aircraft for a gain of $7.9 million, a 12% premium to book value
|
·
|
Net income of $85.7 million, $2.88 per share
|
·
|
Adjusted Net Income of $91.2 million, $3.06 per share
|
·
|
15% increase in operating lease rental revenue
|
·
|
Sold six aircraft at a 17% premium to book value
|
·
|
Grew book value 11% to $21.50 per share
|
Portfolio at
|
Dec. 31, 2018
|
Dec. 31, 2017
|
||||||||||||||
Number
|
% of Net
Book Value
|
Number
|
% of Net
Book Value
|
|||||||||||||
Airbus A319
|
8
|
3
|
%
|
9
|
4
|
%
|
||||||||||
Airbus A320(1)
|
44
|
32
|
%
|
12
|
11
|
%
|
||||||||||
Airbus A321
|
3
|
3
|
%
|
3
|
4
|
%
|
||||||||||
Airbus A330
|
3
|
5
|
%
|
3
|
6
|
%
|
||||||||||
Airbus A340
|
2
|
1
|
%
|
2
|
1
|
%
|
||||||||||
Boeing 737(1)
|
42
|
32
|
%
|
44
|
42
|
%
|
||||||||||
Boeing 737 MAX
|
2
|
3
|
%
|
2
|
3
|
%
|
||||||||||
Boeing 757
|
3
|
1
|
%
|
3
|
1
|
%
|
||||||||||
Boeing 777
|
2
|
8
|
%
|
2
|
10
|
%
|
||||||||||
Boeing 787
|
4
|
12
|
%
|
5
|
18
|
%
|
||||||||||
Total
|
113
|
100
|
%
|
85
|
100
|
%
|
||||||||||
(1) At December 31, 2018, includes ten Airbus A320 and two Boeing 737 aircraft classified as held for sale. |
Three months ended Dec. 31,
|
Year ended Dec. 31,
|
|||||||||||||||
2018
(Unaudited)
|
2017
(Unaudited)
|
2018
(Audited)
|
2017
(Audited)
|
|||||||||||||
Revenues
|
||||||||||||||||
Operating lease rental revenue
|
$
|
112,159
|
$
|
89,019
|
$
|
389,350
|
$
|
337,137
|
||||||||
End of lease income
|
4,264
|
16,598
|
20,333
|
17,837
|
||||||||||||
Amortization of lease incentives
|
(2,614
|
)
|
(2,066
|
)
|
(9,738
|
)
|
(7,668
|
)
|
||||||||
Amortization of lease premiums, discounts and other
|
(42
|
)
|
(123
|
)
|
(431
|
)
|
(412
|
)
|
||||||||
Operating lease revenue
|
113,767
|
103,428
|
399,514
|
346,894
|
||||||||||||
Finance lease revenue
|
163
|
177
|
675
|
731
|
||||||||||||
Equity earnings (loss) from unconsolidated subsidiary
|
56
|
119
|
(54
|
)
|
496
|
|||||||||||
Gain on sale of aircraft
|
7,874
|
3,926
|
13,398
|
3,926
|
||||||||||||
Interest and other income
|
445
|
284
|
4,766
|
1,204
|
||||||||||||
Total revenues
|
122,305
|
107,934
|
418,299
|
353,251
|
||||||||||||
Expenses
|
||||||||||||||||
Depreciation
|
39,887
|
33,957
|
144,084
|
133,227
|
||||||||||||
Aircraft impairment
|
—
|
—
|
—
|
22,000
|
||||||||||||
Interest expense
|
40,703
|
31,382
|
144,742
|
127,782
|
||||||||||||
Selling, general and administrative
|
8,487
|
7,445
|
31,185
|
30,671
|
||||||||||||
Loss (gain) on derivatives
|
233
|
(546
|
)
|
(2,382
|
)
|
(192
|
)
|
|||||||||
Loss on modification and extinguishment of debt
|
1,016
|
20,798
|
2,474
|
23,309
|
||||||||||||
Maintenance and other costs
|
510
|
888
|
2,547
|
2,524
|
||||||||||||
Total expenses
|
90,836
|
93,924
|
322,650
|
339,321
|
||||||||||||
Net income before provision for income taxes
|
31,469
|
14,010
|
95,649
|
13,930
|
||||||||||||
Provision for income taxes
|
460
|
6,840
|
9,926
|
11,332
|
||||||||||||
Net income
|
$
|
31,009
|
$
|
7,170
|
$
|
85,723
|
$
|
2,598
|
||||||||
Weighted average number of shares
|
||||||||||||||||
- Basic
|
32,650,019
|
28,373,978
|
29,744,083
|
30,307,357
|
||||||||||||
- Diluted
|
32,661,240
|
28,427,967
|
29,783,904
|
30,353,425
|
||||||||||||
Earnings per share
|
||||||||||||||||
- Basic
|
$
|
0.95
|
$
|
0.25
|
$
|
2.88
|
$
|
0.09
|
||||||||
- Diluted
|
$
|
0.95
|
$
|
0.25
|
$
|
2.88
|
$
|
0.09
|
Dec. 31,
2018
(Audited)
|
Dec. 31,
2017
(Audited)
|
|||||||
Assets
|
||||||||
Cash and cash equivalents
|
$
|
180,211
|
$
|
329,105
|
||||
Restricted cash and cash equivalents
|
100,869
|
127,710
|
||||||
Rent receivables
|
9,307
|
2,059
|
||||||
Investment in finance lease, net
|
12,822
|
13,946
|
||||||
Flight equipment held for sale, net
|
259,644
|
—
|
||||||
Flight equipment held for operating lease, net
|
3,228,018
|
2,961,744
|
||||||
Maintenance rights
|
298,207
|
131,299
|
||||||
Deferred tax asset, net
|
6,505
|
9,943
|
||||||
Fair value of derivative assets
|
5,929
|
2,643
|
||||||
Other assets, net
|
124,960
|
17,166
|
||||||
Total assets
|
$
|
4,226,472
|
$
|
3,595,615
|
||||
Liabilities
|
||||||||
Accounts payable and accrued liabilities
|
$
|
23,146
|
$
|
18,305
|
||||
Rentals received in advance
|
21,322
|
14,968
|
||||||
Payable to related parties
|
4,462
|
2,084
|
||||||
Security deposits
|
60,097
|
49,689
|
||||||
Maintenance payment liability, net
|
292,586
|
244,151
|
||||||
Unsecured borrowings, net
|
617,664
|
615,922
|
||||||
Secured borrowings, net
|
2,379,869
|
2,029,675
|
||||||
Deferred tax liability, net
|
36,256
|
30,112
|
||||||
Fair value of derivative liabilities
|
8,558
|
7,344
|
||||||
Other liabilities
|
80,402
|
39,656
|
||||||
Total liabilities
|
3,524,362
|
3,051,906
|
||||||
Shareholders’ equity
|
||||||||
Common shares, $0.001 par value, 499,999,900 shares authorized; 32,650,019 and 27,983,352 shares issued and outstanding at December 31,
2018 and 2017, respectively
|
33
|
28
|
||||||
Manager shares, $0.001 par value; 100 shares authorized, issued and outstanding
|
—
|
—
|
||||||
Additional paid in capital
|
549,123
|
479,637
|
||||||
Retained earnings
|
154,347
|
68,624
|
||||||
Accumulated other comprehensive loss, net
|
(1,393
|
)
|
(4,580
|
)
|
||||
Total shareholders’ equity
|
702,110
|
543,709
|
||||||
Total liabilities and shareholders’ equity
|
$
|
4,226,472
|
$
|
3,595,615
|
Year ended Dec. 31,
|
||||||||
2018
(Audited)
|
2017
(Audited)
|
|||||||
Cash Flows from Operating Activities
|
||||||||
Net income
|
$
|
85,723
|
$
|
2,598
|
||||
Adjustments to reconcile net income to net cash flows provided by operating activities:
|
||||||||
Finance lease revenue
|
(675
|
)
|
(731
|
)
|
||||
Equity in (earnings) loss from unconsolidated subsidiary
|
54
|
(496
|
)
|
|||||
Gain on sale of aircraft
|
(13,398
|
)
|
(3,926
|
)
|
||||
Depreciation
|
144,084
|
133,227
|
||||||
Aircraft impairment
|
—
|
22,000
|
||||||
Amortization of debt discounts and issuance costs
|
9,455
|
7,955
|
||||||
Amortization of lease incentives
|
9,738
|
7,668
|
||||||
Amortization of lease discounts, premiums and other items
|
432
|
412
|
||||||
Amortization of acquisition fair value adjustments
|
1,239
|
1,223
|
||||||
Loss on modification and extinguishment of debt
|
2,474
|
23,309
|
||||||
Unrealized foreign exchange (gain) loss
|
(563
|
)
|
2,305
|
|||||
Provision for deferred income taxes
|
9,864
|
5,178
|
||||||
Gain on derivatives
|
(1,269
|
)
|
(478
|
)
|
||||
Security deposits and maintenance payment liability recognized into earnings
|
(15,597
|
)
|
(16,268
|
)
|
||||
Distributions from unconsolidated subsidiary
|
2,131
|
—
|
||||||
Cash receipts from maintenance rights
|
3,013
|
—
|
||||||
Maintenance rights recognized into earnings
|
—
|
465
|
||||||
Changes in operating assets and liabilities:
|
||||||||
Rent receivables
|
(12,866
|
)
|
(4,251
|
)
|
||||
Other assets
|
(4,119
|
)
|
(2,599
|
)
|
||||
Payable to related parties
|
2,378
|
(10,126
|
)
|
|||||
Accounts payable, accrued liabilities and other liabilities
|
18,982
|
11,588
|
||||||
Net cash flows provided by operating activities
|
241,080
|
179,053
|
||||||
Cash Flows from Investing Activities
|
||||||||
Distributions from unconsolidated subsidiary
|
3,103
|
—
|
||||||
Rent received from finance lease
|
1,800
|
1,880
|
||||||
Investment in Horizon I Limited equity certificates
|
(5,747
|
)
|
—
|
|||||
Purchase of flight equipment
|
(934,481
|
)
|
(434,122
|
)
|
||||
Proceeds from sale of aircraft, net
|
177,702
|
21,750
|
||||||
Purchase price allocated to Portfolio B orderbook value
|
(80,450
|
)
|
—
|
|||||
Payments for aircraft improvement
|
(6,779
|
)
|
(7,357
|
)
|
||||
Payments for lessor maintenance obligations
|
(8,601
|
)
|
(12,564
|
)
|
||||
Net cash flows used in investing activities
|
(853,453
|
)
|
(430,413
|
)
|
Year ended Dec. 31,
|
||||||||
2018
(Audited)
|
2017
(Audited)
|
|||||||
Cash Flows from Financing Activities
|
||||||||
Security deposits received
|
15,042
|
7,196
|
||||||
Security deposits returned
|
(8,716
|
)
|
(3,554
|
)
|
||||
Maintenance payment liability receipts
|
84,102
|
75,765
|
||||||
Maintenance payment liability disbursements
|
(15,495
|
)
|
(14,303
|
)
|
||||
Net swap termination payments
|
1,801
|
—
|
||||||
Debt modification and extinguishment costs
|
301
|
(17,396
|
)
|
|||||
Debt issuance costs
|
(3,619
|
)
|
(1,464
|
)
|
||||
Proceeds from unsecured borrowings
|
—
|
295,150
|
||||||
Repayment of unsecured borrowings
|
—
|
(375,000
|
)
|
|||||
Proceeds from secured borrowings
|
826,396
|
513,459
|
||||||
Repayment of secured borrowings
|
(482,703
|
)
|
(326,909
|
)
|
||||
Net proceeds from issuance of shares
|
19,624
|
—
|
||||||
Shares repurchased
|
—
|
(57,286
|
)
|
|||||
Net cash flows provided by financing activities
|
436,733
|
95,658
|
||||||
Effect of exchange rate changes on unrestricted and restricted cash and cash equivalents
|
(95
|
)
|
430
|
|||||
Net decrease in unrestricted and restricted cash and cash equivalents
|
(175,735
|
)
|
(155,272
|
)
|
||||
Unrestricted and restricted cash and cash equivalents at beginning of period
|
456,815
|
612,087
|
||||||
Unrestricted and restricted cash and cash equivalents at end of period
|
$
|
281,080
|
$
|
456,815
|
||||
Reconciliation to Consolidated Balance Sheets:
|
||||||||
Cash and cash equivalents
|
$
|
180,211
|
$
|
329,105
|
||||
Restricted cash and cash equivalents
|
100,869
|
127,710
|
||||||
Unrestricted and restricted cash and cash equivalents
|
$
|
281,080
|
$
|
456,815
|
Three months ended Dec. 31,
|
Year ended Dec. 31,
|
|||||||||||||||
2018
(Unaudited)
|
2017(1)
(Unaudited)
|
2018
(Unaudited)
|
2017(1)
(Unaudited)
|
|||||||||||||
Net income
|
$
|
31,009
|
$
|
7,170
|
$
|
85,723
|
$
|
2,598
|
||||||||
Adjustments:
|
||||||||||||||||
Unrealized foreign exchange (gain) loss
|
(187
|
)
|
301
|
(668
|
)
|
2,305
|
||||||||||
Deferred income taxes
|
227
|
721
|
9,864
|
5,178
|
||||||||||||
Fair value changes on undesignated derivatives
|
(286
|
)
|
(899
|
)
|
(3,732
|
)
|
(1,843
|
)
|
||||||||
Adjusted Net Income
|
$
|
30,763
|
$
|
7,293
|
$
|
91,187
|
$
|
8,238
|
||||||||
Average Shareholders’ Equity
|
$
|
692,124
|
$
|
543,705
|
$
|
614,344
|
$
|
571,042
|
||||||||
Adjusted Return on Equity
|
17.8
|
%
|
5.4
|
%
|
14.8
|
%
|
1.4
|
%
|
||||||||
Weighted average diluted shares outstanding
|
32,661,240
|
28,427,967
|
29,783,904
|
30,353,425
|
||||||||||||
Adjusted Net Income per diluted share
|
$
|
0.94
|
$
|
0.26
|
$
|
3.06
|
$
|
0.27
|
(1) |
Revised to conform to current period presentation.
|
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