DUBLIN, Ireland – FLY Leasing Limited today announced its financial results for the second quarter of 2016.
Second Quarter 2016 Highlights
• Net income of $4.7 million, or $0.14 per share
• Adjusted Net Income of $15.0 million, or $0.45 per share
• Acquired one new aircraft in the quarter and five aircraft in July
• New $75 million share repurchase program
“We continue to rejuvenate our fleet through the sale of older aircraft and their replacement with newer models,” said Colm Barrington, CEO of FLY. “In the second quarter we sold six aircraft with an average age of 18 years and so far this year, we have purchased six aircraft with an average age of approximately 2 years. We will continue with our strategy of selling older aircraft opportunistically and purchasing newer models prudently. In addition to actively managing our portfolio, we see good value in our shares which trade at a significant discount to book value. Yesterday we approved a new $75 million share repurchase program.”
“FLY remains in a strong position to achieve its strategic objectives with $382 million in unrestricted cash and the capacity to acquire up to $2 billion worth of aircraft,” added Barrington. “Our fleet is 100% utilized and we continue to see excellent demand for leased aircraft.”
FLY is reporting net income of $4.7 million, or $0.14 per diluted share, for the second quarter of 2016. This compares to a restated net loss of $43.7 million, or $1.06 per share, for the same period in 2015.
Net income for the six months ended June 30, 2016 was $11.8 million, or $0.35 per share. For the same six month period in 2015, there was a restated net loss of $23.8 million, or $0.59 per share.
Adjusted Net Income
Adjusted Net Income was $15.0 million for the second quarter of 2016 compared to $12.4 million for the same period in the previous year. On a per share basis, Adjusted Net Income was $0.45 in the second quarter of 2016 compared to $0.30 for the second quarter of 2015. For the six months ended June 30, 2016, Adjusted Net Income was $31.4 million, or $0.93 per share, compared to $42.6 million, or $1.03 per share, in 2015.
FLY has repurchased approximately 20% of its shares since September 30, 2015 for $106.2 million. Subsequent to quarter end, FLY approved a new $75 million share repurchase program to replace its previously authorized $30 million program. There were 33.3 million shares outstanding at quarter end.
At June 30, 2016, FLY’s total assets were $3.2 billion, including investment in flight equipment totaling $2.7 billion.
Cash and cash equivalents at June 30, 2016 totaled $476.9 million, of which $382.1 million was unrestricted. In addition, FLY had eight unencumbered aircraft with a net book value of $531.8 million. The net book value per share at June 30, 2016 was $18.97.
At June 30, 2016, FLY’s 76 aircraft were on lease to 43 airlines in 29 countries. The table does not show aircraft that were held for sale which totaled two and thirteen at June 30, 2016 and December 31, 2015, respectively, or the two B767 aircraft owned by a joint venture in which FLY has a 57% interest.
Portfolio at Jun 30, 2016
Dec 31, 2015
Airbus A319 10 10
Airbus A320 15 14
Airbus A321 3 3
Airbus A330 4 4
Airbus A340 2 3
Boeing 737 36 39
Boeing 757 3 3
Boeing 767 — 1
Boeing 777 2 2
Boeing 787 1 1
Total 76 80
At June 30, 2016, the average age of the portfolio, weighted by net book value, was 6.8 years. The average remaining lease term was 6.3 years, also weighted by net book value. At June 30, 2016, our fleet was 100% utilized and the 76 aircraft were generating annualized rental revenue of approximately $293 million.