AerCap Holdings has announced that its adjusted net income was $79.9 million for the first quarter of 2014. Adjusted earnings per share were $0.70 for the first quarter of 2014, an increase of 17% over the first quarter of 2013.
The debt to equity ratio was 2.5 to 1 at March 31, 2014, compared with 2.6 to 1 for the same period in 2013.
As previously disclosed, AerCap signed financing transactions for $2.82 billion, primarily relating to an agreement to replace ILFC's $2.3 billion unsecured revolving credit facility with a new $2.75 billion four-year unsecured revolving credit facility, to become effective upon the closing of the ILFC transaction.
AerCap’s fleet utilization rate was 98.9% for the first quarter of 2014. The average age of the owned fleet as of March 31, 2014 was 5.6 years and the average remaining contracted lease term was 6.6 years.
During the first quarter 2014, AerCap purchased three aircraft with a total value of $0.2 billion and the future aircraft purchases were $3.3 billion as of March 31, 2014, relating to 41 aircraft, including five purchase rights. The 36 aircraft that are fully committed are all placed on long term leases with an average term of 11.9 years.
As previously disclosed, 29 aircraft transactions were executed during the first quarter of 2014.
Subsequent to the first quarter of 2014, on April 22, 2014, AerCap completed the sale of 100% of the class A common shares in Genesis Funding Limited, an aircraft securitisation vehicle with a portfolio of thirty-seven aircraft with an average age of thirteen years valued at approximately $750 million.
Aengus Kelly, CEO of AerCap, commented: "We are extremely pleased with the first quarter financial results. Our consistent profitability coupled with deleveraging validates our strategy to maintain a modern portfolio of aircraft on lease to a global customer base financed by a long term stable liability structure. Further, our sale of Genesis Funding Limited takes the level of aircraft sales since 2006 to more than 300 aircraft with an average age of approximately 13 years, thereby reducing the average age of our fleet to 5.0 years. With continued focus and discipline, we are well positioned for future success to benefit all AerCap constituents."
First quarter 2014 reported net income was $54.7 million, compared with $67.5 million for the same period in 2013. First quarter 2014 reported basic earnings per share were $0.48, compared with $0.59 for the same period in 2013. The decrease in net income and earnings per share from first quarter 2013 was driven primarily by costs incurred in first quarter 2014 relating to the ILFC transaction.
First quarter 2014 adjusted net income was $79.9 million, compared with $68.0 million for the same period in 2013. First quarter 2014 adjusted earnings per share were $0.70, compared with $0.60 for the same period in 2013.
Net interest margin earned on lease assets, or net spread, was $176.8 million in the first quarter of 2014 compared with $152.9 million for the same period in 2013. Net interest margin as a percentage of average lease assets was 8.7% for the first quarter 2014, compared with 8.3% for the same period in 2013.
Total owned assets increased by 10% to $9.5 billion as of March 31, 2014 from $8.7 billion as of March 31, 2013 and total managed aircraft were valued at $2.4 billion.