FLY Leasing has posted net income of $15.4 million, $0.37 per share, for the third quarter of 2014, compared to $0.3 million and $0.00 in the same period in 2013.
Total revenues increased 33% to $105.5 million. Operating lease rental revenue for the third quarter of 2014 was $105.1 million compared to $78.4 million for the same period in the previous year, an increase of 34%. The increase was driven by the larger portfolio and improved utilization. The third quarter 2014 results include $14.2 million in end of lease income, compared to $17,000 in the third quarter of 2013.
FLY’s net income and diluted earnings per share for the nine months ended September 30, 2014 were $40.6 million and $0.95 compared to $39.1 million and $1.20 for the same period in 2013. For 2014, end of lease income was $18.0 million and gains on aircraft sales totaled $18.9 million. The 2013 results included $47.6 million in end of lease income and $6.3 million in gains on aircraft sales.
On an adjusted basis, net income was $16.5 million for the third quarter of 2014 compared to $2.7 million in the same period in the previous year. On a per share basis, Adjusted Net Income was $0.40 in the third quarter of 2014 compared to $0.07 for the same period in the previous year. For the nine months ended September 30, 2014, Adjusted Net Income was $40.4 million, or $0.98 per share, compared to $52.5 million and $1.65 per share for the same period in the previous year.
“FLY had another strong quarter, with fleet utilization of 100% and revenue growth of more than 30%,” said Colm Barrington, FLY’s CEO. “We have grown our fleet to 121 aircraft with the acquisition of five aircraft in the third quarter, maintaining our average fleet age at just over eight years and increasing our average lease term to approximately five years.”
“FLY is continuing its growth trajectory, with about $1 billion of aircraft to be purchased in 2014. We are on track to beat our 2014 fleet growth target of 15%, and are targeting a further 15% fleet growth in 2015. Our recent issuance of $400 million of unsecured notes, along with $327 million of remaining capacity in our acquisition facility, provides us with ample resources to fund this program.”
“The demand for aircraft from our customers remains strong as worldwide air traffic continues to increase. IATA is reporting a 5.8% growth in world passenger numbers in the eight months through August. Most airlines continue to report strong profits, with IATA now forecasting global airline profits of $18 billion in 2014 as compared to $10.6 billion last year.”
At September 30, 2014, FLY’s total assets were $3.7 billion, including flight equipment with a net book value of $3.5 billion. The total cash balance at September 30, 2014 was $212.8 million, of which $81.3 million was unrestricted. Neither of these figures includes approximately $400 million that was raised in FLY’s recent public offering of unsecured notes, which closed on October 3, 2014. In addition, there is $327 million available under FLY’s acquisition facility which may be used to fund aircraft purchases.
The total cash balance at December 31, 2013 was $579.3 million, of which $404.5 million was unrestricted.
At September 30, 2014, all of FLY’s 121 aircraft were on lease to 67 airlines in 37 countries.