Ireland
|
(Address of principal executive office)
|
|
Form 20-F
|
☒ |
Form 40-F
|
☐ |
Exhibit
|
Title
|
99.1
|
Press release of Fly Leasing Limited, dated May 8, 2020.
|
Fly Leasing Limited
|
||||
(Registrant)
|
||||
Date:
|
May 8, 2020
|
By:
|
/s/ Colm Barrington
|
|
Colm Barrington
Chief Executive Officer and
Director
|
Exhibit
|
Title
|
Press release of Fly Leasing Limited, dated May 8, 2020.
|
• |
Net income of $38.1 million, $1.24 per share
|
• |
Adjusted Net Income of $43.6 million, $1.42 per share
|
• |
Return on equity of 17.2%, Adjusted return on equity of 19.7%
|
• |
Sold six aircraft and two engines for a gain of $31.7 million, a 20% premium to book value
|
• |
$29.21 book value per share, a 28% increase since March 31, 2019
|
• |
Unrestricted cash and cash equivalents of $361.2 million
|
• |
$560 million net book value of unencumbered assets
|
• |
2.1x net debt to equity
|
Portfolio at
|
Mar. 31, 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
|
38
|
36
|
%
|
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
|
15
|
%
|
4
|
14
|
%
|
||||||||||
Total(1)
|
84
|
100
|
%
|
89
|
100
|
%
|
(1)
|
Includes six aircraft classified as flight equipment held for sale as of December 31, 2019. No aircraft was held for sale as of March 31, 2020.
|
Three months ended Mar. 31,
|
||||||||
2020
(Unaudited)
|
2019
(Unaudited)
|
|||||||
Revenues
|
||||||||
Operating lease rental revenue
|
$
|
85,535
|
$
|
105,328
|
||||
End of lease income
|
2,427
|
1,564
|
||||||
Amortization of lease incentives
|
(614
|
)
|
(1,632
|
)
|
||||
Amortization of lease discounts and other
|
92
|
(8
|
)
|
|||||
Operating lease revenue
|
87,440
|
105,252
|
||||||
Finance lease revenue
|
145
|
160
|
||||||
Gain on sale of aircraft
|
31,717
|
27,620
|
||||||
Interest and other income
|
2,253
|
1,671
|
||||||
Total revenues
|
121,555
|
134,703
|
||||||
Expenses
|
||||||||
Depreciation
|
31,631
|
37,585
|
||||||
Interest expense
|
27,155
|
38,179
|
||||||
Selling, general and administrative
|
7,664
|
8,722
|
||||||
Loss on derivatives
|
507
|
17
|
||||||
Fair value loss on marketable securities
|
9,412
|
—
|
||||||
Loss on extinguishment of debt
|
850
|
2,169
|
||||||
Maintenance and other costs
|
1,184
|
598
|
||||||
Total expenses
|
78,403
|
87,270
|
||||||
Net income before provision for income taxes
|
43,152
|
47,433
|
||||||
Provision for income taxes
|
5,080
|
2,468
|
||||||
Net income
|
$
|
38,072
|
$
|
44,965
|
||||
Weighted average number of shares
|
||||||||
- Basic
|
30,765,840
|
32,632,715
|
||||||
- Diluted
|
30,768,029
|
32,632,715
|
||||||
Earnings per share
|
||||||||
- Basic
|
$
|
1.24
|
$
|
1.38
|
||||
- Diluted
|
$
|
1.24
|
$
|
1.38
|
Mar. 31,
2020
(Unaudited)
|
Dec. 31,
2019
(Audited)
|
|||||||
Assets
|
||||||||
Cash and cash equivalents
|
$
|
361,151
|
$
|
285,565
|
||||
Restricted cash and cash equivalents
|
30,593
|
52,738
|
||||||
Rent receivables
|
19,688
|
14,264
|
||||||
Investment in finance lease, net
|
11,334
|
11,639
|
||||||
Flight equipment held for sale, net
|
—
|
144,119
|
||||||
Flight equipment held for operating lease, net
|
2,716,757
|
2,720,000
|
||||||
Maintenance rights
|
280,152
|
290,958
|
||||||
Deferred tax asset, net
|
15,166
|
11,675
|
||||||
Fair value of derivative assets
|
7,152
|
4,824
|
||||||
Other assets, net
|
120,123
|
129,377
|
||||||
Total assets
|
$
|
3,562,116
|
$
|
3,665,159
|
||||
Liabilities
|
||||||||
Accounts payable and accrued liabilities
|
$
|
31,706
|
$
|
22,746
|
||||
Rentals received in advance
|
13,910
|
16,391
|
||||||
Payable to related parties
|
4,270
|
10,077
|
||||||
Security deposits
|
40,140
|
40,726
|
||||||
Maintenance payment liability, net
|
195,665
|
219,371
|
||||||
Unsecured borrowings, net
|
619,842
|
619,407
|
||||||
Secured borrowings, net
|
1,579,273
|
1,695,525
|
||||||
Deferred tax liability, net
|
63,030
|
57,935
|
||||||
Fair value of derivative liabilities
|
54,102
|
27,943
|
||||||
Other liabilities
|
69,942
|
76,761
|
||||||
Total liabilities
|
2,671,880
|
2,786,882
|
||||||
Shareholders’ equity
|
||||||||
Common shares, $0.001 par value, 499,999,900 shares authorized; 30,481,069 and 30,898,410 shares issued and outstanding at March 31, 2020 and December 31, 2019, respectively
|
31
|
31
|
||||||
Manager shares, $0.001 par value; 100 shares authorized, issued and outstanding
|
—
|
—
|
||||||
Additional paid-in capital
|
509,738
|
516,254
|
||||||
Retained earnings
|
418,464
|
380,392
|
||||||
Accumulated other comprehensive loss, net
|
(37,997
|
)
|
(18,400
|
)
|
||||
Total shareholders’ equity
|
890,236
|
878,277
|
||||||
Total liabilities and shareholders’ equity
|
$
|
3,562,116
|
$
|
3,665,159
|
Three months ended Mar. 31,
|
||||||||
2020
(Unaudited)
|
2019
(Unaudited)
|
|||||||
Cash Flows from Operating Activities
|
||||||||
Net income
|
$
|
38,072
|
$
|
44,965
|
||||
Adjustments to reconcile net income to net cash flows provided by operating activities:
|
||||||||
Gain on sale of aircraft
|
(31,717
|
)
|
(27,620
|
)
|
||||
Depreciation
|
31,631
|
37,585
|
||||||
Amortization of debt discounts and debt issuance costs
|
1,875
|
2,796
|
||||||
Amortization of lease incentives and other items
|
604
|
1,839
|
||||||
Fair value loss on marketable securities
|
9,412
|
—
|
||||||
Loss on extinguishment of debt
|
850
|
2,169
|
||||||
Provision for deferred income taxes
|
5,181
|
2,472
|
||||||
Maintenance payment liability recognized into earnings
|
(2,487
|
)
|
—
|
|||||
Other
|
268
|
(333
|
)
|
|||||
Changes in operating assets and liabilities:
|
||||||||
Rent receivables
|
(7,036
|
)
|
2,505
|
|||||
Other assets
|
230
|
(742
|
)
|
|||||
Payable to related parties
|
(5,807
|
)
|
(393
|
)
|
||||
Accounts payable, accrued liabilities and other liabilities
|
9,957
|
7,348
|
||||||
Net cash flows provided by operating activities
|
51,033
|
72,591
|
||||||
Cash Flows from Investing Activities
|
||||||||
Purchase of flight equipment
|
(27,282
|
)
|
—
|
|||||
Proceeds from sale of aircraft, net
|
160,271
|
235,770
|
||||||
Payments for aircraft improvement
|
(6,294
|
)
|
(1,365
|
)
|
||||
Payments for lessor maintenance obligations
|
(347
|
)
|
(584
|
)
|
||||
Other
|
(231
|
)
|
(335
|
)
|
||||
Net cash flows provided by investing activities
|
126,117
|
233,486
|
Three months ended Mar. 31,
|
||||||||
2020
(Unaudited)
|
2019
(Unaudited)
|
|||||||
Cash Flows from Financing Activities
|
||||||||
Security deposits received
|
3,305
|
—
|
||||||
Security deposits returned
|
—
|
(1,546
|
)
|
|||||
Maintenance payment liability receipts
|
7,848
|
17,016
|
||||||
Maintenance payment liability disbursements
|
(10,109
|
)
|
(8,604
|
)
|
||||
Debt extinguishment costs
|
(20
|
)
|
(54
|
)
|
||||
Debt issuance costs
|
—
|
(342
|
)
|
|||||
Repayment of secured borrowings
|
(118,211
|
)
|
(155,184
|
)
|
||||
Shares repurchased
|
(6,504
|
)
|
(2,117
|
)
|
||||
Net cash flows used in financing activities
|
(123,691
|
)
|
(150,831
|
)
|
||||
Effect of exchange rate changes on unrestricted and restricted cash and cash equivalents
|
(18
|
)
|
(59
|
)
|
||||
Net increase in unrestricted and restricted cash and cash equivalents
|
53,441
|
155,187
|
||||||
Unrestricted and restricted cash and cash equivalents at beginning of period
|
338,303
|
281,080
|
||||||
Unrestricted and restricted cash and cash equivalents at end of period
|
$
|
391,744
|
$
|
436,267
|
||||
Reconciliation to Consolidated Balance Sheets:
|
||||||||
Cash and cash equivalents
|
$
|
361,151
|
$
|
363,930
|
||||
Restricted cash and cash equivalents
|
30,593
|
72,337
|
||||||
Unrestricted and restricted cash and cash equivalents
|
$
|
391,744
|
$
|
436,267
|
Three months ended Mar. 31,
|
||||||||
2020
(Unaudited)
|
2019
(Unaudited)
|
|||||||
Net income
|
$
|
38,072
|
$
|
44,965
|
||||
Adjustments:
|
||||||||
Unrealized foreign exchange gain
|
(95
|
)
|
(172
|
)
|
||||
Deferred income taxes
|
5,181
|
2,472
|
||||||
Fair value changes on undesignated derivatives
|
481
|
(112
|
)
|
|||||
Adjusted Net Income
|
$
|
43,639
|
$
|
47,153
|
||||
Average Shareholders’ Equity
|
$
|
884,257
|
$
|
720,007
|
||||
Adjusted Return on Equity
|
19.7
|
%
|
26.2
|
%
|
||||
Weighted average diluted shares outstanding
|
30,768,029
|
32,632,715
|
||||||
Adjusted Net Income per diluted share
|
$
|
1.42
|
$
|
1.44
|