- Net income for the third quarter of 2023 was $1.1 billion, or $4.86 per share.
- Adjusted net income for the third quarter of 2023 was
$639 million, or $2.81 per share.
- Raising full year 2023 adjusted earnings per share guidance
to approximately $9.50.
- New $500 million share
repurchase program authorized.
DUBLIN, Oct. 27,
2023 /PRNewswire/ -- AerCap Holdings N.V. (NYSE:
AER), the industry leader across all areas of aviation leasing,
today reported financial results for the third quarter of 2023
ended September 30, 2023.
"This was another great quarter for AerCap. We generated
adjusted net income of $639 million
and adjusted earnings per share of $2.81. As a result of this strong performance and
our outlook for the rest of the year, we are once again raising our
guidance for the year. Our underlying business continues to perform
well and demand for our assets remains robust, evidenced by the
significant number of transactions completed during the quarter. We
are pleased to announce a new $500
million share repurchase program, taking total
authorizations to $2.65 billion so
far this year and underlying our confidence in the value on offer
today," said Aengus Kelly, Chief Executive Officer of
AerCap.
Highlights:
- Increasing full year 2023 adjusted EPS guidance to
approximately $9.50.
- New $500 million share repurchase
program authorized.
- Repurchased approximately 36 million shares year to date, at an
average price of $58.03 per share,
for a total of approximately $2.1
billion. Approximately 20 million shares repurchased in the
third quarter for approximately $1.2
billion.
- GE's ownership decreased from 33.6% to 14.5% following a
successful secondary offering in the third quarter of 2023, down
from 45% at the beginning of the year.
- Return on equity of 27% and adjusted return on equity of 16%
for the third quarter of 2023.
- 24% margin on gain on sale of assets in the third quarter of
2023.
- Cash flow from operating activities was $1.3 billion for the third quarter of 2023.
- Adjusted debt/equity ratio of 2.51 to 1 as of September 30, 2023.
- Received cash insurance settlement proceeds of $646 million.
- Book value per share of $78.28 as
of September 30, 2023, an increase of
approximately 21% from September 30,
2022.
Revenue and Net Spread
|
|
Three months ended
September 30,
|
|
Nine months ended
September 30,
|
|
|
2023
|
|
2022
|
|
% increase/
(decrease)
|
|
2023
|
|
2022
|
|
% increase/
(decrease)
|
|
|
(U.S. Dollars in
millions)
|
|
(U.S. Dollars in
millions)
|
Lease
revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
lease rents
|
|
$1,575
|
|
$1,473
|
|
7 %
|
|
$4,673
|
|
$4,488
|
|
4 %
|
Maintenance rents and other receipts
|
|
126
|
|
120
|
|
6 %
|
|
469
|
|
408
|
|
15 %
|
Total lease
revenue
|
|
1,701
|
|
1,593
|
|
7 %
|
|
5,142
|
|
4,897
|
|
5 %
|
Net gain on sale of
assets
|
|
130
|
|
69
|
|
88 %
|
|
395
|
|
108
|
|
267 %
|
Other income
|
|
61
|
|
62
|
|
(2 %)
|
|
144
|
|
181
|
|
(20 %)
|
Total Revenues and
other income
|
|
$1,892
|
|
$1,724
|
|
10 %
|
|
$5,682
|
|
$5,185
|
|
10 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic lease rents were $1,575
million for the third quarter of 2023, compared with
$1,473 million for the same period in
2022. Basic lease rents for the third quarter of 2023 were impacted
by $41 million of lease premium
amortization.
Maintenance rents and other receipts were $126 million for the third quarter of 2023,
compared with $120 million for the
same period in 2022. Maintenance rents for the third quarter of
2023 were impacted by $23 million as a result of maintenance
rights assets that were amortized to revenue.
Net gain on sale of assets for the third quarter of 2023 was
$130 million, relating to 45 assets
sold for $682 million, compared with
$69 million for the same period in
2022, relating to 30 assets sold for $373
million. The increase was primarily due to the volume and
composition of asset sales.
Other income for the third quarter of 2023 was $61 million, compared with $62 million for the same period in 2022.
|
Three months ended
September 30,
|
|
Nine months ended
September 30,
|
|
2023
|
|
2022
|
|
% increase/
(decrease)
|
|
2023
|
|
2022
|
|
% increase/
(decrease)
|
|
(U.S. Dollars in
millions)
|
|
(U.S. Dollars in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic lease
rents
|
$1,575
|
|
$1,473
|
|
7 %
|
|
$4,673
|
|
$4,488
|
|
4 %
|
Adjusted
for:
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of lease
premium/deficiency
|
41
|
|
51
|
|
(18 %)
|
|
125
|
|
159
|
|
(21 %)
|
Basic lease rents
excluding amortization of lease premium/deficiency
|
$1,616
|
|
$1,524
|
|
6 %
|
|
$4,798
|
|
$4,647
|
|
3 %
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
447
|
|
391
|
|
14 %
|
|
1,311
|
|
1,172
|
|
12 %
|
Adjusted
for:
|
|
|
|
|
|
|
|
|
|
|
|
Mark-to-market of interest rate caps and swaps
|
(7)
|
|
28
|
|
NA
|
|
(17)
|
|
67
|
|
NA
|
Interest expense
excluding mark-to-market of interest rate caps and swaps
|
440
|
|
419
|
|
5 %
|
|
1,293
|
|
1,239
|
|
4 %
|
Adjusted net
interest margin (*)
|
$1,176
|
|
$1,105
|
|
6 %
|
|
$3,505
|
|
$3,408
|
|
3 %
|
Depreciation and
amortization
|
(623)
|
|
(581)
|
|
7 %
|
|
(1,849)
|
|
(1,796)
|
|
3 %
|
Adjusted net
interest margin, less depreciation and amortization
|
$553
|
|
$524
|
|
5 %
|
|
$1,656
|
|
$1,612
|
|
3 %
|
|
|
|
|
|
|
|
|
|
|
|
|
Average lease assets
(*)
|
$59,951
|
|
$58,771
|
|
2 %
|
|
$59,605
|
|
$59,991
|
|
(1 %)
|
|
|
|
|
|
|
|
|
|
|
|
|
Annualized net spread
(*)
|
7.8 %
|
|
7.5 %
|
|
|
|
7.8 %
|
|
7.6 %
|
|
|
Annualized net
spread less depreciation and amortization (*)
|
3.7 %
|
|
3.6 %
|
|
|
|
3.7 %
|
|
3.6 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*) Refer to "Notes
Regarding Financial Information Presented in This Press Release"
for details relating to these non-GAAP measures and
metrics
|
Interest expense excluding mark-to-market of interest rate caps
and swaps was $440 million for the
third quarter of 2023, compared with $419
million for the same period in 2022. AerCap's average cost
of debt was 3.5% for the third quarter of 2023 and 3.2% for the
same period in 2022, excluding debt issuance costs, upfront fees
and other impacts.
Recoveries Related to Ukraine Conflict
During the third quarter of 2023, we received cash insurance
settlement proceeds of $646 million
in full settlement of our insurance claims under the Aeroflot
group's insurance policies in respect of 17 aircraft and five
spare engines on lease to the Aeroflot group at the time of
Russia's invasion of Ukraine in February
2022.
Selling, General and Administrative Expenses
|
|
Three months ended
September 30,
|
|
Nine months ended
September 30,
|
|
|
2023
|
|
2022
|
|
% increase/
(decrease)
|
|
2023
|
|
2022
|
|
% increase/
(decrease)
|
|
|
(U.S. Dollars in
millions)
|
|
(U.S. Dollars in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses (excluding share-
based compensation expenses)
|
|
$90
|
|
$80
|
|
13 %
|
|
$272
|
|
$229
|
|
19 %
|
Share-based
compensation expenses
|
|
21
|
|
25
|
|
(14 %)
|
|
70
|
|
79
|
|
(12 %)
|
Selling, general and
administrative expenses
|
|
$112
|
|
$105
|
|
7 %
|
|
$342
|
|
$308
|
|
11 %
|
Selling, general and administrative expenses increased to
$112 million for the third quarter of
2023, compared with $105 million for
the same period in 2022.
Other Expenses
Leasing expenses were $166 million
for the third quarter of 2023, compared with $161 million for the same period in 2022. Leasing
expenses for the third quarter of 2023 were impacted by
$49 million of maintenance rights
asset amortization.
Effective Tax Rate
AerCap's effective tax rate for the full year 2023 is expected
to be 14%, excluding income tax expense due to the recognition of
the net recoveries related to Ukraine Conflict and certain other
discrete items, compared to an effective tax rate of 16.4% for the
full year 2022. The effective tax rate is impacted by the source
and amount of earnings among our different tax jurisdictions as
well as the amount of permanent tax differences relative to pre-tax
income or loss, and certain other discrete items.
AerCap's effective tax rate was 9.4% for the third quarter of
2023, compared to an effective tax rate of 13.9% for the third
quarter of 2022.
Book Value Per Share
|
|
September 30,
2023
|
|
September 30,
2022
|
|
|
(U.S. Dollars in
millions,
except share and per share data)
|
|
|
|
|
|
Total AerCap
Holdings N.V. shareholders' equity
|
|
$16,294
|
|
$15,568
|
|
|
|
|
|
Ordinary shares
outstanding
|
|
212,379,835
|
|
245,879,536
|
Unvested restricted
stock
|
|
(4,233,182)
|
|
(4,837,932)
|
Ordinary shares
outstanding (excl. unvested restricted stock)
|
|
208,146,653
|
|
241,041,604
|
|
|
|
|
|
Book value per
ordinary share outstanding (excl. unvested restricted
stock)
|
|
$78.28
|
|
$64.59
|
Financial Position
|
|
September 30,
2023
|
|
December 31,
2022
|
|
%
increase/
(decrease)
over
December 31,
2022
|
|
|
(U.S. Dollars in
millions)
|
|
|
|
|
|
|
|
Total cash, cash
equivalents and restricted cash
|
|
$2,607
|
|
$1,757
|
|
48 %
|
Total assets
|
|
71,594
|
|
69,727
|
|
3 %
|
Debt
|
|
47,493
|
|
46,533
|
|
2 %
|
Total
liabilities
|
|
55,222
|
|
53,532
|
|
3 %
|
Total AerCap Holdings
N.V. shareholders' equity
|
|
16,294
|
|
16,118
|
|
1 %
|
Total equity
|
|
16,372
|
|
16,195
|
|
1 %
|
|
|
|
|
|
|
|
Flight Equipment
As of September 30, 2023, AerCap's portfolio consisted of
3,451 aircraft, engines and helicopters that were owned, on order
or managed. The average age of the company's owned aircraft fleet
as of September 30, 2023 was 7.3 years (4.4 years for new
technology aircraft, 14.0 years for current technology aircraft)
and the average remaining contracted lease term was 7.3 years.
Share Repurchase Program
In October 2023, our Board of
Directors approved a new share repurchase program authorizing total
repurchases of up to $500 million of
AerCap ordinary shares through March 31,
2024. Repurchases under the program may be made through open
market purchases or privately negotiated transactions in accordance
with applicable U.S. federal securities laws. The timing of
repurchases and the exact number of ordinary shares to be purchased
will be determined by the Company's management, in its discretion,
and will depend upon market conditions and other factors. The
program will be funded using the Company's cash on hand and cash
generated from operations. The program may be suspended or
discontinued at any time.
Notes Regarding Financial Information Presented in This Press
Release
The financial information presented in this press release is not
audited.
Due to rounding, numbers presented throughout this document may
not add up precisely to the totals provided and percentages may not
precisely reflect the absolute figures.
The following are definitions of non-GAAP measures and metrics
used in this press release. We believe these measures and metrics
may further assist investors in their understanding of our
performance. These measures and metrics should not be viewed in
isolation and should only be used in conjunction with and as a
supplement to our U.S. GAAP financial measures. Non-GAAP measures
and metrics are not uniformly defined by all companies, including
those in our industry, and so this additional information may not
be comparable with similarly-titled measures and metrics and
disclosures by other companies.
Adjusted net income / earnings per share, adjusted return on
equity and adjusted earnings per share guidance
Adjusted net income is calculated as net income excluding the
after-tax impact of net recoveries related to the Ukraine Conflict
and the amortization of maintenance rights and lease premium assets
recognized under purchase accounting. Adjusted earnings per share
is calculated by dividing adjusted net income by the weighted
average of our ordinary shares outstanding. Adjusted return on
equity is calculated by dividing adjusted net income by average
shareholders' equity. Given the relative significance of these
items during 2023, we have chosen to present these measures in
order to assist investors in their understanding of the changes and
trends related to our earnings.
|
|
Three months ended
September 30, 2023
|
|
Nine months ended
September 30, 2023
|
|
|
Net
income
|
|
Earnings
per
share
|
|
Net
income
|
|
Earnings
per
share
|
|
|
(U.S. Dollars in
millions,
except per share
data)
|
|
|
|
|
|
|
|
|
|
Net income /
earnings per share
|
|
$1,105
|
|
$4.86
|
|
$2,030
|
|
$8.65
|
|
|
|
|
|
|
|
|
|
Adjusted
for:
|
|
|
|
|
|
|
|
|
Net recoveries related
to Ukraine Conflict
|
|
(646)
|
|
(2.84)
|
|
(674)
|
|
(2.87)
|
Amortization of
maintenance rights and lease premium
assets
recognized under purchase accounting (*)
|
|
113
|
|
0.50
|
|
412
|
|
1.75
|
Income tax effect of
above adjustments
|
|
67
|
|
0.29
|
|
33
|
|
0.14
|
|
|
|
|
|
|
|
|
|
Adjusted net income
/ earnings per share
|
|
$639
|
|
$2.81
|
|
$1,801
|
|
$7.67
|
|
|
|
|
|
|
|
|
|
Average AerCap
Holdings N.V. shareholders' equity
|
|
|
|
$16,303
|
|
|
|
$16,192
|
|
|
|
|
|
|
|
|
|
Return on
equity
|
|
|
|
27 %
|
|
|
|
17 %
|
|
|
|
|
|
|
|
|
|
Adjusted return on
equity
|
|
|
|
16 %
|
|
|
|
15 %
|
|
(*) Includes $41
million adjustment to basic lease rents, $23 million adjustment to
maintenance revenues and $49 million adjustment to leasing expenses
for the three months ended September 30, 2023, and $125 million
adjustment to basic lease rents, $97 million adjustment to
maintenance revenues and $189 million adjustment to leasing
expenses for the nine months ended September 30, 2023
|
Adjusted earnings per share guidance for full year 2023 is
calculated as projected net income excluding the after-tax impact
of net recoveries related to the Ukraine Conflict and the
amortization of maintenance rights and lease premium assets
recognized under purchase accounting, divided by the weighted
average of our projected ordinary shares outstanding.
|
|
Net income /
Earnings
per share
|
|
|
(U.S. Dollars in
billions,
except per share data)
|
Net
income
|
|
$2.3
|
Net recoveries related
to Ukraine Conflict
|
|
(0.7)
|
Amortization of
maintenance rights and lease premium
assets recognized under purchase accounting
|
|
0.5
|
Income tax effect of
above adjustments
|
|
0.0
|
Adjusted net
income
|
|
$2.2
|
Adjusted earnings
per share
|
|
$9.50
|
Adjusted debt/equity ratio
This measure is the ratio obtained by dividing adjusted debt by
adjusted equity.
- Adjusted debt means consolidated total debt less cash and cash
equivalents, and less a 50% equity credit with respect to certain
long-term subordinated debt.
- Adjusted equity means total equity, plus the 50% equity credit
relating to the long-term subordinated debt.
Adjusted debt and adjusted equity are adjusted by the 50% equity
credit to reflect the equity nature of those financing arrangements
and to provide information that is consistent with definitions
under certain of our debt covenants. We believe this measure may
further assist investors in their understanding of our capital
structure and leverage.
|
|
September 30,
2023
|
|
December 31,
2022
|
|
|
(U.S. Dollars in
millions,
except debt/equity ratio)
|
|
|
|
|
|
|
|
Debt
|
|
$47,493
|
|
$46,533
|
|
|
|
|
|
|
|
Adjusted
for:
|
|
|
|
|
|
Cash and
cash equivalents
|
|
(2,415)
|
|
(1,597)
|
|
50% credit
for long-term subordinated debt
|
|
(1,125)
|
|
(1,125)
|
|
Adjusted
debt
|
|
$43,953
|
|
$43,811
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
|
|
$16,372
|
|
$16,195
|
|
|
|
|
|
|
|
Adjusted
for:
|
|
|
|
|
|
50% credit
for long-term subordinated debt
|
|
1,125
|
|
1,125
|
|
Adjusted
equity
|
|
$17,497
|
|
$17,320
|
|
|
|
|
|
|
|
Adjusted debt/equity
ratio
|
|
2.51 to
1
|
|
2.53 to
1
|
|
Adjusted net interest margin, annualized net spread,
annualized net spread less depreciation and amortization and
average cost of debt
Adjusted net interest margin is calculated as the difference
between basic lease rents, excluding the impact of the amortization
of lease premium/deficiency recognized under purchase accounting,
and interest expense, excluding the impact of the mark-to-market of
interest rate caps and swaps. Annualized net spread is adjusted net
interest margin expressed as a percentage of average lease assets.
Annualized net spread less depreciation and amortization is
adjusted net interest margin less depreciation and amortization,
expressed as a percentage of average lease assets.
Average cost of debt is calculated as interest expense,
excluding mark-to-market on interest rate caps and swaps, debt
issuance costs, upfront fees and other impacts, divided by average
debt balance.
|
|
Three months ended
September 30,
|
|
|
2023
|
|
2022
|
|
(U.S. Dollars in
millions)
|
|
|
|
|
|
Interest
expense
|
|
$447
|
|
$391
|
|
|
|
|
|
Adjusted
for:
|
|
|
|
|
Mark-to-market on
interest rate caps and swaps
|
|
(7)
|
|
28
|
Debt issuance costs,
upfront fees and other impacts
|
|
(35)
|
|
(38)
|
Interest expense,
excluding mark-to-market on interest rate caps and swaps, debt
issuance
costs,
upfront fees and other impacts
|
|
$405
|
|
$381
|
|
|
|
|
|
Average debt
balance
|
|
$46,895
|
|
$48,021
|
|
|
|
|
|
Average cost of debt
(*)
|
|
3.5 %
|
|
3.2 %
|
|
|
|
|
|
Lease assets
Lease assets include flight equipment held for operating leases,
flight equipment held for sale, net investment in finance leases
and maintenance rights assets.
Aviation assets
Aviation assets include aircraft, engines and helicopters.
Conference Call
In connection with its report of third quarter 2023 results,
management will host a conference call with members of the
investment community today, Friday, October
27, 2023, at 8:30 am Eastern
Time. The call can be accessed live via webcast by AerCap's
website at www.aercap.com under "Investors", or by dialing
(U.S./Canada) + 1 646 828 8193 or
(International) +353 1 246 5638 and referencing code 9950885 at
least 5 minutes before start time.
The webcast replay will be archived in the "Investors" section
of the company's website for one year.
For further information, contact Joseph
McGinley: +353 1 418 0428
(jmcginley@aercap.com).
About AerCap
AerCap is the global leader in aviation leasing with one of the
most attractive order books in the industry. AerCap serves
approximately 300 customers around the world with comprehensive
fleet solutions. AerCap is listed on the New York Stock Exchange
(AER) and is based in Dublin with
offices in Shannon, Miami,
Singapore, Memphis, Amsterdam, Shanghai, Dubai, Seattle, Toulouse and other locations around
the world.
Forward-Looking Statements
This press release contains certain statements, estimates and
forecasts with respect to future performance and events. These
statements, estimates and forecasts are "forward-looking
statements". In some cases, forward-looking statements can be
identified by the use of forward-looking terminology such as "may,"
"might," "should," "expect," "plan," "intend," "will," "aim,"
"estimate," "anticipate," "believe," "predict," "potential" or
"continue" or the negatives thereof or variations thereon or
similar terminology. All statements other than statements of
historical fact included in this press release are forward-looking
statements and are based on various underlying assumptions and
expectations and are subject to known and unknown risks,
uncertainties and assumptions, and may include projections of our
future financial performance based on our growth strategies and
anticipated trends in our business. These statements are only
predictions based on our current expectations and projections about
future events. There are important factors that could cause our
actual results, level of activity, performance or achievements to
differ materially from the results, level of activity, performance
or achievements expressed or implied in the forward-looking
statements, including, among other things, the availability of
capital to us and to our customers and changes in interest rates;
the ability of our lessees and potential lessees to make lease
payments to us; our ability to successfully negotiate flight
equipment (which includes aircraft, engines and helicopters)
purchases, sales and leases, to collect outstanding amounts due and
to repossess flight equipment under defaulted leases, and to
control costs and expenses; changes in the overall demand for
commercial aviation leasing and aviation asset management services;
the continued impacts of the Ukraine Conflict, including the
resulting sanctions by the United
States, the European Union, the United Kingdom and other countries, on our
business and results of operations, financial condition and cash
flows; the rate of recovery in air travel related to the Covid-19
pandemic, the aviation industry and global economic conditions; the
potential impacts of the pandemic and responsive government actions
on our business and results of operations, financial condition and
cash flows; the effects of terrorist attacks on the aviation
industry and on our operations; the economic condition of the
global airline and cargo industry and economic and political
conditions; development of increased government regulation,
including travel restrictions, sanctions, regulation of trade and
the imposition of import and export controls, tariffs and other
trade barriers; the impact of current hostilities in the
Middle East, or any escalation
thereof, on the aviation industry or our business; a downgrade in
any of our credit ratings; competitive pressures within the
industry; regulatory changes affecting commercial flight equipment
operators, flight equipment maintenance, engine standards,
accounting standards and taxes.
As a result, we cannot assure you that the forward-looking
statements included in this press release will prove to be accurate
or correct. These and other important factors and risks are
discussed in AerCap's annual report on Form 20-F and other filings
with the United States Securities and Exchange Commission. In light
of these risks, uncertainties and assumptions, the future
performance or events described in the forward-looking statements
in this press release might not occur. Accordingly, you should not
rely upon forward-looking statements as a prediction of actual
results and we do not assume any responsibility for the accuracy or
completeness of any of these forward-looking statements. Except as
required by applicable law, we do not undertake any obligation to
update any forward-looking statements, whether as a result of new
information, future events or otherwise.
For more information regarding AerCap and to be added to our
email distribution list, please visit www.aercap.com and
follow us on Twitter www.twitter.com/aercapnv.
|
|
|
|
|
|
|
|
AerCap
HoldingsNV
|
|
|
|
|
|
|
Unaudited
Consolidated Balance Sheets
|
|
|
|
|
|
|
(U.S. Dollars in
thousands, except share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30,
2023
|
|
December 31,
2022
|
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$2,415,297
|
|
$1,597,147
|
|
|
Restricted
cash
|
|
191,367
|
|
159,623
|
|
|
Trade
receivables
|
|
87,326
|
|
132,202
|
|
|
Flight equipment held
for operating leases, net
|
|
56,237,266
|
|
55,220,809
|
|
|
Investment in finance
leases, net
|
|
1,337,153
|
|
1,356,072
|
|
|
Flight equipment held
for sale
|
|
420,599
|
|
292,808
|
|
|
Prepayments on flight
equipment
|
|
3,883,402
|
|
3,806,602
|
|
|
Maintenance rights and
lease premium, net
|
|
2,852,540
|
|
3,364,453
|
|
|
Other intangibles,
net
|
|
168,488
|
|
185,210
|
|
|
Deferred tax
assets
|
|
201,408
|
|
210,334
|
|
|
Associated
companies
|
|
911,768
|
|
811,219
|
|
|
Other assets
|
|
2,887,050
|
|
2,590,439
|
|
|
Total
Assets
|
|
$71,593,664
|
|
$69,726,918
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
|
|
|
Accounts payable,
accrued expenses and other liabilities
|
|
$1,618,240
|
|
$1,494,953
|
|
|
Accrued maintenance
liability
|
|
2,720,624
|
|
2,503,202
|
|
|
Lessee deposit
liability
|
|
945,855
|
|
806,655
|
|
|
Debt
|
|
47,492,809
|
|
46,532,960
|
|
|
Deferred tax
liabilities
|
|
2,444,015
|
|
2,194,098
|
|
|
Total
Liabilities
|
|
55,221,543
|
|
53,531,868
|
|
|
|
|
|
|
|
|
|
Ordinary share capital
€0.01 par value, 450,000,000 ordinary shares authorized as of
September 30, 2023 and
|
|
|
|
|
|
|
December 31,
2022; 235,543,739 and 250,347,345 ordinary shares issued and
212,379,835 and 245,931,275
|
|
|
|
|
|
|
ordinary shares
outstanding (including 4,233,182 and 4,837,602 shares of unvested
restricted stock) as of
|
|
|
|
|
|
|
September 30,
2023 and December 31, 2022, respectively
|
|
2,876
|
|
3,024
|
|
|
Additional paid-in
capital
|
|
7,786,722
|
|
8,586,034
|
|
|
Treasury shares, at
cost (23,163,904 and 4,416,070 ordinary shares as of September 30,
2023 and
|
|
|
|
|
|
|
December 31, 2022,
respectively)
|
|
(1,359,216)
|
|
(254,699)
|
|
|
Accumulated other
comprehensive income
|
|
160,013
|
|
108,226
|
|
|
Accumulated retained
earnings
|
|
9,703,259
|
|
7,674,922
|
|
|
Total AerCap Holdings
N.V. shareholders' equity
|
|
16,293,654
|
|
16,117,507
|
|
|
Non-controlling
interest
|
|
78,467
|
|
77,543
|
|
|
Total Equity
|
|
16,372,121
|
|
16,195,050
|
|
|
|
|
|
|
|
|
|
Total Liabilities
and Equity
|
|
$71,593,664
|
|
$69,726,918
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AerCap
HoldingsNV
|
|
|
|
|
|
|
|
|
|
Unaudited
Consolidated Income Statements
|
|
|
|
|
|
|
|
|
|
(U.S. Dollars in
thousands, except share and per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30,
|
|
Nine months ended
September 30,
|
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues and other
income
|
|
|
|
|
|
|
|
|
|
Lease
revenue:
|
|
|
|
|
|
|
|
|
|
Basic lease
rents
|
$1,574,649
|
|
$1,473,084
|
|
$4,672,680
|
|
$4,488,256
|
|
|
Maintenance rents and
other receipts
|
126,229
|
|
119,542
|
|
469,385
|
|
408,235
|
|
|
Total lease
revenue
|
1,700,878
|
|
1,592,626
|
|
5,142,065
|
|
4,896,491
|
|
|
Net gain on sale of
assets
|
129,908
|
|
69,218
|
|
395,357
|
|
107,703
|
|
|
Other income
|
60,881
|
|
62,181
|
|
144,348
|
|
180,559
|
|
|
Total Revenues and
other income
|
1,891,667
|
|
1,724,025
|
|
5,681,770
|
|
5,184,753
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
623,012
|
|
580,934
|
|
1,849,133
|
|
1,796,092
|
|
|
Net (recoveries)
charges related to Ukraine Conflict
|
(645,807)
|
|
(16,137)
|
|
(673,879)
|
|
2,712,581
|
|
|
Asset
impairment
|
107
|
|
29,249
|
|
36,540
|
|
43,477
|
|
|
Interest
expense
|
446,977
|
|
390,809
|
|
1,310,575
|
|
1,171,588
|
|
|
Loss on debt
extinguishment
|
246
|
|
17
|
|
4,097
|
|
2,058
|
|
|
Leasing
expenses
|
165,986
|
|
161,416
|
|
621,233
|
|
562,702
|
|
|
Selling, general and
administrative expenses
|
111,908
|
|
105,319
|
|
342,249
|
|
307,666
|
|
|
Transaction and
integration-related expenses
|
—
|
|
3,565
|
|
—
|
|
30,198
|
|
|
Total
Expenses
|
702,429
|
|
1,255,172
|
|
3,489,948
|
|
6,626,362
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss on investments at
fair value
|
(10,577)
|
|
(7,791)
|
|
(6,591)
|
|
(20,142)
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before
income taxes and income of investments
|
|
|
|
|
|
|
|
|
|
accounted for under
the equity method
|
1,178,661
|
|
461,062
|
|
2,185,231
|
|
(1,461,751)
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax (expense)
benefit
|
(110,677)
|
|
(64,307)
|
|
(252,018)
|
|
163,956
|
|
|
Equity in net earnings
of investments accounted for under the equity method
|
41,019
|
|
44,593
|
|
107,937
|
|
79,024
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
$1,109,003
|
|
$441,348
|
|
$2,041,150
|
|
($1,218,771)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable
to non-controlling interest
|
(3,749)
|
|
(1,392)
|
|
(10,897)
|
|
(2,277)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to AerCap Holdings N.V.
|
$1,105,254
|
|
$439,956
|
|
$2,030,253
|
|
($1,221,048)
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings (loss)
per share
|
$4.93
|
|
$1.83
|
|
$8.77
|
|
($5.08)
|
|
|
Diluted earnings (loss)
per share
|
$4.86
|
|
$1.82
|
|
$8.65
|
|
($5.08)
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding - basic
|
224,239,197
|
|
240,849,074
|
|
231,586,646
|
|
240,291,737
|
|
|
Weighted average shares
outstanding - diluted
|
227,379,759
|
|
242,364,744
|
|
234,818,115
|
|
240,291,737
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AerCap
HoldingsNV
|
|
|
|
|
|
|
Unaudited
Consolidated Statements of Cash Flows
|
|
|
|
|
|
|
(U.S. Dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine months ended
September 30,
|
|
|
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
$2,041,150
|
|
($1,218,771)
|
|
|
Adjustments to
reconcile net income (loss) to net cash provided by
operating activities:
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
1,849,133
|
|
1,796,092
|
|
|
Net (recoveries)
charges related to Ukraine Conflict
|
|
(660,878)
|
|
2,922,350
|
|
|
Asset
impairment
|
|
36,540
|
|
43,477
|
|
|
Amortization of debt
issuance costs, debt discount, debt premium and lease
premium
|
|
191,512
|
|
236,723
|
|
|
Maintenance rights
write-off
|
|
286,581
|
|
252,189
|
|
|
Maintenance liability
release to income
|
|
(164,193)
|
|
(151,003)
|
|
|
Net gain on sale of
assets
|
|
(395,357)
|
|
(107,703)
|
|
|
Deferred tax expense
(benefit)
|
|
258,842
|
|
(159,727)
|
|
|
Share-based
compensation
|
|
70,079
|
|
79,228
|
|
|
Collections of finance
leases
|
|
309,453
|
|
207,810
|
|
|
Loss on investments at
fair value
|
|
6,591
|
|
20,142
|
|
|
Loss on debt
extinguishment
|
|
4,097
|
|
2,058
|
|
|
Other
|
|
(35,449)
|
|
(140,311)
|
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
Trade
receivables
|
|
42,148
|
|
36,163
|
|
|
Other
assets
|
|
(134,419)
|
|
85,371
|
|
|
Accounts
payable, accrued expenses and other liabilities
|
|
156,009
|
|
(283,698)
|
|
|
Net cash provided by
operating activities
|
|
3,861,839
|
|
3,620,390
|
|
|
|
|
|
|
|
|
|
Purchase of flight
equipment
|
|
(3,273,890)
|
|
(2,296,808)
|
|
|
Proceeds from sale or
disposal of assets
|
|
1,556,713
|
|
1,152,224
|
|
|
Prepayments on flight
equipment
|
|
(1,378,339)
|
|
(630,047)
|
|
|
Cash proceeds from
insurance claim settlement
|
|
645,807
|
|
—
|
|
|
Other
|
|
(104,667)
|
|
67,757
|
|
|
Net cash used in
investing activities
|
|
(2,554,376)
|
|
(1,706,874)
|
|
|
|
|
|
|
|
|
|
Issuance of
debt
|
|
5,009,330
|
|
467,996
|
|
|
Repayment of
debt
|
|
(4,016,056)
|
|
(3,392,836)
|
|
|
Debt issuance and
extinguishment costs paid, net of debt premium received
|
|
(74,336)
|
|
(7,006)
|
|
|
Maintenance payments
received
|
|
600,664
|
|
574,856
|
|
|
Maintenance payments
returned
|
|
(150,224)
|
|
(220,602)
|
|
|
Security deposits
received
|
|
300,765
|
|
256,904
|
|
|
Security deposits
returned
|
|
(150,940)
|
|
(221,901)
|
|
|
Dividend paid to
non-controlling interest holders
|
|
(9,973)
|
|
(2,060)
|
|
|
Repurchase of shares
and tax withholdings on share-based compensation
|
|
(1,966,392)
|
|
(15,838)
|
|
|
Net cash used in
financing activities
|
|
(457,162)
|
|
(2,560,487)
|
|
|
|
|
|
|
|
|
|
Net increase (decrease)
in cash, cash equivalents and restricted cash
|
|
850,301
|
|
(646,971)
|
|
|
Effect of exchange rate
changes
|
|
(407)
|
|
(11,066)
|
|
|
Cash, cash equivalents
and restricted cash at beginning of period
|
|
1,756,770
|
|
1,914,753
|
|
|
Cash, cash
equivalents and restricted cash at end of period
|
|
$2,606,664
|
|
$1,256,716
|
|
|
|
|
|
|
|
|
View original content to download
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SOURCE AerCap Holdings N.V.