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West Pier Business Campus
Dun Laoghaire
County Dublin, A96 N6T7
Ireland
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(Address of principal executive office)
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Form 20-F
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☒
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Form 40-F
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☐ |
Exhibit
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Title
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99.1
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Press release of Fly Leasing Limited, dated November 8, 2019.
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Fly Leasing Limited
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||||
(Registrant)
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||||
Date:
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November 8, 2019
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By:
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/s/ Colm Barrington
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|
Colm Barrington
Chief Executive Officer and
Director
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Exhibit
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Title
|
Press release of Fly Leasing Limited, dated November 8, 2019.
|
• |
Net income of $51.7 million, $1.67 per share
|
• |
Adjusted Net Income of $59.8 million, $1.93 per share
|
• |
Return on equity of 26.6%, Adjusted Return on Equity of 30.8%
|
• |
Sold eight aircraft for a gain of $38.9 million, a 17% premium to book value
|
• |
Purchased two aircraft for $53.7 million
|
• |
$25.85 book value per share at quarter end, a 20% increase since December 31, 2018
|
• |
Net debt to equity ratio of 2.6x
|
Portfolio at
|
Sep. 30, 2019
|
Dec. 31, 2018
|
||||||||||||||
Number
|
% of Net
Book Value
|
Number
|
% of Net
Book Value
|
|||||||||||||
Airbus A320 Family
|
39
|
31
|
%
|
55
|
38
|
%
|
||||||||||
Airbus A330
|
3
|
6
|
%
|
3
|
5
|
%
|
||||||||||
Airbus A340
|
2
|
1
|
%
|
2
|
1
|
%
|
||||||||||
Boeing 737NG
|
39
|
35
|
%
|
42
|
32
|
%
|
||||||||||
Boeing 737 MAX
|
2
|
3
|
%
|
2
|
3
|
%
|
||||||||||
Boeing 757-SF
|
1
|
<1
|
% |
3
|
1
|
%
|
||||||||||
Boeing 777-LRF
|
2
|
10
|
%
|
2
|
8
|
%
|
||||||||||
Boeing 787
|
4
|
14
|
%
|
4
|
12
|
%
|
||||||||||
Total(1)
|
92
|
100
|
%
|
113
|
100
|
%
|
(1)
|
Includes six aircraft and 12 aircraft classified as held for sale at September 30, 2019 and December 31, 2018, respectively.
|
Three months ended Sep. 30,
|
Nine months ended Sep. 30,
|
|||||||||||||||
2019
(Unaudited)
|
2018
(Unaudited)
|
2019
(Unaudited)
|
2018
(Unaudited)
|
|||||||||||||
Revenues
|
||||||||||||||||
Operating lease rental revenue
|
$
|
96,084
|
$
|
98,863
|
$
|
302,520
|
$
|
277,191
|
||||||||
End of lease income
|
—
|
3,072
|
30,387
|
16,069
|
||||||||||||
Amortization of lease incentives
|
(1,402
|
)
|
(2,480
|
)
|
(4,353
|
)
|
(7,124
|
)
|
||||||||
Amortization of lease discounts and other
|
24
|
(108
|
)
|
27
|
(389
|
)
|
||||||||||
Operating lease revenue
|
94,706
|
99,347
|
328,581
|
285,747
|
||||||||||||
Finance lease revenue
|
153
|
167
|
469
|
512
|
||||||||||||
Equity earnings (loss) from unconsolidated subsidiary
|
2,617
|
136
|
2,727
|
(110
|
)
|
|||||||||||
Gain on sale of aircraft
|
38,934
|
2,579
|
82,632
|
5,524
|
||||||||||||
Interest and other income
|
2,624
|
2,337
|
6,361
|
4,321
|
||||||||||||
Total revenues
|
139,034
|
104,566
|
420,770
|
295,994
|
||||||||||||
Expenses
|
||||||||||||||||
Depreciation
|
33,881
|
36,569
|
108,769
|
104,197
|
||||||||||||
Interest expense
|
33,580
|
37,472
|
107,198
|
104,039
|
||||||||||||
Selling, general and administrative
|
8,013
|
7,719
|
26,173
|
22,698
|
||||||||||||
Loss (gain) on derivatives
|
2,537
|
(2,095
|
)
|
2,809
|
(2,615
|
)
|
||||||||||
Loss on extinguishment of debt
|
1,620
|
560
|
5,330
|
1,458
|
||||||||||||
Maintenance and other costs
|
623
|
323
|
2,846
|
2,037
|
||||||||||||
Total expenses
|
80,254
|
80,548
|
253,125
|
231,814
|
||||||||||||
Net income before provision for income taxes
|
58,780
|
24,018
|
167,645
|
64,180
|
||||||||||||
Provision for income taxes
|
7,076
|
3,278
|
16,926
|
9,466
|
||||||||||||
Net income
|
$
|
51,704
|
$
|
20,740
|
$
|
150,719
|
$
|
54,714
|
||||||||
Weighted average number of shares
|
||||||||||||||||
- Basic
|
30,873,297
|
30,302,193
|
31,846,836
|
28,764,793
|
||||||||||||
- Diluted
|
30,987,394
|
30,381,248
|
31,954,204
|
28,818,464
|
||||||||||||
Earnings per share
|
||||||||||||||||
- Basic
|
$
|
1.67
|
$
|
0.68
|
$
|
4.73
|
$
|
1.90
|
||||||||
- Diluted
|
$
|
1.67
|
$
|
0.68
|
$
|
4.72
|
$
|
1.90
|
Sep. 30,
2019
(Unaudited)
|
Dec. 31,
2018
(Audited)
|
|||||||
Assets
|
||||||||
Cash and cash equivalents
|
$
|
432,747
|
$
|
180,211
|
||||
Restricted cash and cash equivalents
|
88,857
|
100,869
|
||||||
Rent receivables
|
15,625
|
9,307
|
||||||
Investment in finance lease, net
|
11,941
|
12,822
|
||||||
Flight equipment held for sale, net
|
152,794
|
259,644
|
||||||
Flight equipment held for operating lease, net
|
2,752,831
|
3,228,018
|
||||||
Maintenance rights
|
256,404
|
298,207
|
||||||
Deferred tax asset, net
|
17,552
|
6,505
|
||||||
Fair value of derivative assets
|
6,656
|
5,929
|
||||||
Other assets, net
|
134,207
|
124,960
|
||||||
Total assets
|
$
|
3,869,614
|
$
|
4,226,472
|
||||
Liabilities
|
||||||||
Accounts payable and accrued liabilities
|
$
|
35,202
|
$
|
23,146
|
||||
Rentals received in advance
|
15,434
|
21,322
|
||||||
Payable to related parties
|
7,038
|
4,462
|
||||||
Security deposits
|
46,324
|
60,097
|
||||||
Maintenance payment liability, net
|
252,099
|
292,586
|
||||||
Unsecured borrowings, net
|
618,971
|
617,664
|
||||||
Secured borrowings, net
|
1,915,435
|
2,379,869
|
||||||
Deferred tax liability, net
|
59,256
|
36,256
|
||||||
Fair value of derivative liabilities
|
37,618
|
8,558
|
||||||
Other liabilities
|
83,465
|
80,402
|
||||||
Total liabilities
|
3,070,842
|
3,524,362
|
||||||
Shareholders’ equity
|
||||||||
Common shares, $0.001 par value, 499,999,900 shares authorized; 30,898,410 and 32,650,019 shares issued and outstanding at September 30, 2019 and December 31, 2018, respectively
|
31
|
33
|
||||||
Manager shares, $0.001 par value; 100 shares authorized, issued and outstanding
|
—
|
—
|
||||||
Additional paid-in capital
|
516,255
|
549,123
|
||||||
Retained earnings
|
305,234
|
154,347
|
||||||
Accumulated other comprehensive loss, net
|
(22,748
|
)
|
(1,393
|
)
|
||||
Total shareholders’ equity
|
798,772
|
702,110
|
||||||
Total liabilities and shareholders’ equity
|
$
|
3,869,614
|
$
|
4,226,472
|
Nine months ended Sep. 30,
|
||||||||
2019
(Unaudited)
|
2018
(Unaudited)
|
|||||||
Cash Flows from Operating Activities
|
||||||||
Net income
|
$
|
150,719
|
$
|
54,714
|
||||
Adjustments to reconcile net income to net cash flows provided by operating activities:
|
||||||||
Finance lease revenue
|
(469
|
)
|
(512
|
)
|
||||
Equity in (earnings) loss from unconsolidated subsidiary
|
(2,727
|
)
|
110
|
|||||
Gain on sale of aircraft
|
(82,632
|
)
|
(5,524
|
)
|
||||
Depreciation
|
108,769
|
104,197
|
||||||
Amortization of debt discounts and debt issuance costs
|
7,786
|
6,399
|
||||||
Amortization of other comprehensive income into interest expense
|
—
|
3,026
|
||||||
Amortization of lease incentives and other items
|
4,843
|
8,374
|
||||||
Loss on extinguishment of debt
|
5,330
|
1,458
|
||||||
Unrealized foreign exchange gain
|
(449
|
)
|
(481
|
)
|
||||
Provision for deferred income taxes
|
15,963
|
9,637
|
||||||
Loss (gain) on derivative instruments
|
3,312
|
(4,847
|
)
|
|||||
Security deposits and maintenance payment liability recognized into earnings
|
(26,145
|
)
|
(11,846
|
)
|
||||
Distributions from unconsolidated subsidiary
|
2,727
|
2,075
|
||||||
Cash receipts from maintenance rights
|
1,741
|
3,013
|
||||||
Changes in operating assets and liabilities:
|
||||||||
Rent receivables
|
(10,995
|
)
|
(5,665
|
)
|
||||
Other assets
|
(2,553
|
)
|
(3,835
|
)
|
||||
Payable to related parties
|
2,576
|
(11,159
|
)
|
|||||
Accounts payable, accrued liabilities and other liabilities
|
12,468
|
20,161
|
||||||
Net cash flows provided by operating activities
|
190,264
|
169,295
|
||||||
Cash Flows from Investing Activities
|
||||||||
Distributions from unconsolidated subsidiary
|
2,639
|
1,874
|
||||||
Rent received from finance lease
|
1,350
|
1,350
|
||||||
Net payments for derivative settlements
|
(512
|
)
|
—
|
|||||
Investment income from equity certificates
|
934
|
—
|
||||||
Purchase of equity certificates
|
(7,425
|
)
|
—
|
|||||
Purchase of flight equipment
|
(114,826
|
)
|
(617,370
|
)
|
||||
Deposit on aircraft purchases
|
—
|
(299,945
|
)
|
|||||
Proceeds from sale of aircraft, net
|
651,488
|
113,829
|
||||||
Capitalized interest on Portfolio B orderbook
|
(3,671
|
)
|
—
|
|||||
Payments for aircraft improvement
|
(3,059
|
)
|
(170
|
)
|
||||
Payments for lessor maintenance obligations
|
(1,843
|
)
|
(8,229
|
)
|
||||
Net cash flows provided by (used in) investing activities
|
525,075
|
(808,661
|
)
|
Nine months ended Sep. 30,
|
||||||||
2019
(Unaudited)
|
2018
(Unaudited)
|
|||||||
Cash Flows from Financing Activities
|
||||||||
Security deposits received
|
1,169
|
10,907
|
||||||
Security deposits returned
|
(1,546
|
)
|
(6,224
|
)
|
||||
Maintenance payment liability receipts
|
48,631
|
59,611
|
||||||
Maintenance payment liability disbursements
|
(14,975
|
)
|
(8,902
|
)
|
||||
Net swap termination payments
|
—
|
1,136
|
||||||
Debt extinguishment costs
|
(194
|
)
|
436
|
|||||
Debt issuance costs
|
(342
|
)
|
(2,216
|
)
|
||||
Proceeds from secured borrowings
|
—
|
705,201
|
||||||
Repayment of secured borrowings
|
(474,659
|
)
|
(328,595
|
)
|
||||
Net proceeds from shares issued
|
—
|
19,394
|
||||||
Shares repurchased
|
(32,844
|
)
|
—
|
|||||
Net cash flows (used in) provided by financing activities
|
(474,760
|
)
|
450,748
|
|||||
Effect of exchange rate changes on unrestricted and restricted cash and cash equivalents
|
(55
|
)
|
(61
|
)
|
||||
Net increase (decrease) in unrestricted and restricted cash and cash equivalents
|
240,524
|
(188,679
|
)
|
|||||
Unrestricted and restricted cash and cash equivalents at beginning of period
|
281,080
|
456,815
|
||||||
Unrestricted and restricted cash and cash equivalents at end of period
|
$
|
521,604
|
$
|
268,136
|
||||
Reconciliation to Consolidated Balance Sheets:
|
||||||||
Cash and cash equivalents
|
$
|
432,747
|
$
|
180,078
|
||||
Restricted cash and cash equivalents
|
88,857
|
88,058
|
||||||
Unrestricted and restricted cash and cash equivalents
|
$
|
521,604
|
$
|
268,136
|
Three months ended Sep. 30,
|
Nine months ended Sep. 30,
|
|||||||||||||||
2019
(Unaudited)
|
2018
(Unaudited)
|
2019
(Unaudited)
|
2018
(Unaudited)
|
|||||||||||||
Net income
|
$
|
51,704
|
$
|
20,740
|
$
|
150,719
|
$
|
54,714
|
||||||||
Adjustments:
|
||||||||||||||||
Unrealized foreign exchange gain
|
(345
|
)
|
(25
|
)
|
(449
|
)
|
(481
|
)
|
||||||||
Deferred income taxes
|
5,972
|
3,310
|
15,963
|
9,637
|
||||||||||||
Fair value changes on undesignated derivatives
|
2,475
|
(1,206
|
)
|
2,618
|
(3,446
|
)
|
||||||||||
Adjusted Net Income
|
$
|
59,806
|
$
|
22,819
|
$
|
168,851
|
$
|
60,424
|
||||||||
Average Shareholders’ Equity
|
$
|
776,218
|
$
|
635,193
|
748,112
|
592,402
|
||||||||||
Adjusted Return on Equity
|
30.8%
|
|
14.4%
|
|
30.1%
|
|
13.6%
|
|
||||||||
Weighted average diluted shares outstanding
|
30,987,394
|
30,381,248
|
31,954,204
|
28,818,464
|
||||||||||||
Adjusted Net Income per diluted share
|
$
|
1.93
|
$
|
0.75
|
$
|
5.28
|
$
|
2.10
|