FLY grew operating lease revenue by 63% from $145.7m to $376.4m in 2012 from 2011 reflecting the growth in the aircraft portfolio. Net income for the fourth quarter of 2012 was $31m from a net loss of $9.2m for the same period in 2011. In addition to the $36.9m pre-tax gain on the sale of FLY’s 15% ownership interest in BBAM, the fourth quarter results include an $11.4m impairment charge on three aircraft. FLY recovered approximately $9.7m of this $11.4m from end of lease compensation payments, retained maintenance reserves and disposition proceeds in the first quarter of 2013 in respect of the impaired aircraft. The fourth quarter results also include a $7.6m charge associated with the early repayment of debt, $4.2m of which was related to the re-pricing of our term loan.
Net income for the year ending December 31, 2012 was $47.7m or $1.80 per diluted share compared to $1.1m or $0.03 per diluted share for 2011. In addition to the 4th quarter items, the 2012 results include a one-time, pre-tax charge of $32.3m to terminate interest rate swaps associated with a credit facility that was fully repaid during 2012.
FLY’s total assets at the close of 2012 were $3.0bn, including flight equipment with a net book value of $2.6bn. Total cash at December 31, 2012 was $300.6m, of which $163.1m was unrestricted from $380.5m of which $82.1m was unrestricted the year before.
FLY’s net leverage, defined as the ratio of net debt to total shareholders’ equity was 3.6x at December 31, 2012 compared to 5.1x at December 31, 2011. Net debt is defined as book value of secured borrowings, less unrestricted cash and cash equivalents.
At December 31, 2012, FLY’s 109 aircraft were on lease to 55 lessees in 32 countries.