UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities
Exchange Act of 1934
Date of Report: May 8, 2015
Commission File Number : 001-33701
Fly
Leasing Limited
(Exact Name of registrant as specified in
its charter)
West Pier
Dun Laoghaire
County Dublin, Ireland
(Address of principal executive office)
Indicate by check mark whether registrant files or will file
annual reports under cover of Form 20-F or Form 40-F:
Indicate by check mark if the registrant
is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ____
Indicate by check mark if the registrant
is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ____
The following document, which is attached as an exhibit hereto,
is incorporated by reference herein.
Exhibit |
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Title |
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99.1 |
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Press release of Fly Leasing Limited, dated May 8, 2015. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act
of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
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Fly Leasing Limited |
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(Registrant) |
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Date: |
May 8, 2015 |
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By: |
/s/ Colm Barrington |
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Colm Barrington
Chief Executive Officer and Director |
EXHIBIT INDEX
Exhibit |
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Title |
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99.1 |
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Press release of Fly Leasing Limited, dated May 8, 2015. |
Exhibit 99.1
FLY LEASING REPORTS FIrst quarter 2015 FINancial results
Dublin,
Ireland, May 8, 2015 – FLY Leasing Limited (NYSE: FLY) (FLY),
a global lessor of modern, fuel-efficient commercial jet aircraft, today announced its financial results for the first quarter
of 2015.
First Quarter 2015 Highlights
| · | Net income of $17.3 million, $0.41 per
share |
| · | Increased total revenues by 34% to $122.5
million |
| · | Invested $147 million in four aircraft |
| · | Sold three aircraft for a $1.9 million
gain over book value |
| · | Re-priced Term Loan in April, saving $4
million in annual interest cost |
| · | Declared Q1 dividend of $0.25 per share
|
FLY
has started 2015 with strong first quarter results, said
Colm Barrington, FLYs CEO. Our
investments have grown our fleet to 128 aircraft, an increase of 11 aircraft from a year ago, driving a 34% increase in total quarterly
revenues. We are targeting $750 million in aircraft acquisitions this year and have acquired and identified $475 million of aircraft
to date. Meanwhile, we continue to opportunistically trade aircraft, selling three aircraft in the first quarter for a gain of
$1.9 million over book value.
Our
net income of $17.3 million, or $0.41 per share, is a significant increase over the first quarter of last year, and is largely
due to our growing fleet, added Barrington. We
also continue to return capital to shareholders, declaring our 30th consecutive quarterly dividend.
We
actively manage the companys capital structure, just as we
actively manage our fleet, taking advantage of the favorable funding environment and our access to well-priced debt,
said Barrington. In April, we re-priced our Term Loan, which
will reduce our interest cost by approximately $4 million annually.
Globally
the airline industry is on a strong trajectory, with air traffic growth and airline profits exceeding the levels of recent years,
added Barrington. These conditions benefit lessors, including
FLY, by providing strong demand for leased aircraft with a resultant firming in lease rates and aircraft values.
Financial Results
FLY is reporting net income for the first
quarter of 2015 of $17.3 million or $0.41 per diluted share. This compares to net income of $3.6 million or $0.07 per diluted share
for the same period in 2014. The first quarter 2015 results include $21.9 million of end of lease revenue and a charge of approximately
$4.0 million associated with termination of the Aircraft Acquisition Facility. End of lease revenue was $3.7 million in the first
quarter of 2014.
Total revenues increased 34% to $122.5 million
and include $120.1 million of operating lease revenue and $1.9 million in gains from the sale of three aircraft. Operating lease
revenue increased $30.5 million over the same period in the preceding year.
Adjusted Net Income
Adjusted Net Income was $26.6 million for
the first quarter of 2015 compared to $9.8 million in the same period in the previous year. On a per share basis, Adjusted Net
Income was $0.64 in the first quarter of 2015 compared to $0.24 for the same period in the previous year.
A reconciliation of Adjusted Net Income
to net income determined in accordance with GAAP is shown below.
Dividends and Share Repurchases
On April 15, 2015, FLY declared a dividend
of $0.25 per share in respect of the first quarter of 2015. This dividend will be paid on May 20, 2015 to shareholders of record
on April 30, 2015. FLY has now paid dividends totaling $7.62 since its listing in 2007.
On
May 6, 2015, FLYs board of directors approved a $30 million
share repurchase program expiring in May 2016 to replace the previous program. Under this program, FLY may make share repurchases
from time to time in the open market or in privately negotiated transactions. The timing of the repurchases under this program
will depend upon a variety of factors, including market conditions, and the program may be suspended or discontinued at any time.
Financial Position
At
March 31, 2015, FLYs total assets were $4.1 billion, including
flight equipment with a net book value of $3.7 billion. Cash and cash equivalents at March 31, 2015 totaled $416.6 million, of
which $280.3 million was unrestricted. In addition, FLY had 17 unencumbered aircraft with an aggregate net book value of $632.4
million at March 31, 2015.
Aircraft Portfolio
At
March 31, 2015, FLYs 128 aircraft, as shown in the table
below, were on lease to 63 airlines in 35 countries.
Portfolio at |
Mar 31,
2015 |
Dec 31,
2014 |
Airbus A319 |
18 |
18 |
Airbus A320 |
29 |
27 |
Airbus A321 |
5 |
3 |
Airbus A330 |
4 |
4 |
Airbus A340 |
3 |
3 |
Boeing 737 |
54 |
57 |
Boeing 747 |
1 |
1 |
Boeing 757 |
11 |
11 |
Boeing 767 |
1 |
1 |
Boeing 777 |
1 |
1 |
Boeing 787 |
1 |
1 |
Total |
128 |
127 |
Note: The table does not
include two B767 aircraft owned by a joint venture in which FLY has a 57% interest.
At
March 31, 2015, the average age of the portfolio was 8.1 years weighted by the net book value of each aircraft. The average remaining
lease term was 5.1 years, also weighted by net book value. At March 31, 2015, FLYs
leases were generating annualized rental revenues of approximately $424.1 million.
Conference Call and Webcast
FLYs
senior management will host a conference call and webcast to discuss these results at 10:00 a.m. U.S. Eastern Time on Friday,
May 8, 2015. Participants should dial +1-253-237-1145 (International) or 800-535-7056 (North America) and enter confirmation code
21363329 or ask an operator for the FLY Leasing earnings call. A replay will be available shortly after the live call. To access
the replay, please dial +1-404-537-3406 (International) or 855-859-2056 (North America) and enter confirmation code 21363329.
The replay recording will be available for ten days. A live webcast of the conference call will be also available in the investor
relations section of FLYs website at www.flyleasing.com.
An archived webcast will be available on FLYs website for
one year.
About FLY
FLY is a global aircraft leasing company
with a fleet of modern, high-demand, and fuel efficient commercial jet aircraft. FLY acquires and leases its aircraft under multi-year
operating lease contracts to a diverse group of airlines throughout the world. FLY is managed and serviced by BBAM LP, a worldwide
leader in aircraft lease management and financing. For more information about FLY, please visit our website at www.flyleasing.com.
Cautionary Statement Regarding Forward-Looking
Statements
This
press release contains certain forward - looking statements within the meaning of the Private Securities Litigation
Reform Act of 1995. Forward-looking statements may be identified by words such as expects, intends,
anticipates, plans, believes, seeks, estimates, will,
or words of similar meaning and include, but are not limited to, statements regarding the outlook for FLYs
future business and financial performance. Forward-looking statements are based on managements
current expectations and assumptions, which are subject to inherent uncertainties, risks and changes in circumstances that are
difficult to predict. Actual outcomes and results may differ materially due to global political, economic, business, competitive,
market, regulatory and other factors and risks. Further information on the factors and risks that may affect FLYs
business is included in filings FLY makes with the Securities and Exchange Commission from time to time, including its Annual Report
on Form 20-F and its reports on Form 6-K. FLY expressly disclaims any obligation to update or revise any of these forward-looking
statements, whether because of future events, new information, a change in its views or expectations, or otherwise.
# # #
Contact:
Matt Dallas
FLY Leasing Limited
+1 203-769-5916
ir@flyleasing.com
FLY Leasing Limited
Consolidated Statements of
Income
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)
|
Three month
period ended
Mar. 31, 2015
(Unaudited) |
Three month
period ended
Mar. 31, 2014
(Unaudited) |
Revenues |
|
|
Operating lease rental revenue |
$ 103,148 |
$ 90,536 |
End of lease revenue |
21,936 |
3,679 |
Amortization of lease incentives |
(4,036) |
(3,388) |
Amortization of lease premiums/discounts and other |
(945) |
(1,200) |
Operating lease revenue |
120,103 |
89,627 |
Gain on sale of aircraft |
1,897 |
- |
Equity earnings from unconsolidated subsidiary |
340 |
1,382 |
Interest and other income |
206 |
310 |
Total revenues |
122,546 |
91,319 |
Expenses |
|
|
Depreciation |
50,074 |
40,403 |
Interest expense |
39,297 |
34,625 |
Debt modification and extinguishment costs |
4,050 |
15 |
Selling, general and administrative |
8,264 |
9,615 |
Ineffective and dedesignated derivatives |
(264) |
(65) |
Maintenance and other costs |
1,586 |
2,410 |
Total expenses |
103,007 |
87,003 |
Net income before provision for income taxes |
19,539 |
4,316 |
Provision for income taxes |
2,273 |
753 |
Net income |
$ 17,266 |
$ 3,563 |
Weighted average number of shares: |
|
|
- Basic |
41,432,998 |
41,333,938 |
- Diluted |
41,545,287 |
41,393,731 |
Earnings per share (net income per common share): |
|
|
- Basic and diluted |
$ 0.41 |
$ 0.07 |
Dividends declared and paid per share |
$ 0.25 |
$ 0.25 |
FLY Leasing Limited
Consolidated Balance Sheets
(DOLLARS IN THOUSANDS, EXCEPT
PER SHARE DATA)
|
Mar. 31,
2015
(Unaudited) |
Dec. 31,
2014
(Audited) |
Assets |
|
|
Cash and cash equivalents |
$ 280,285 |
$ 337,560 |
Restricted cash and cash equivalents |
136,336 |
139,139 |
Rent receivables |
11,002 |
4,887 |
Investment in unconsolidated subsidiary |
4,342 |
4,002 |
Flight equipment held for operating lease, net |
3,678,090 |
3,705,407 |
Fair market value of derivative assets |
131 |
2,067 |
Other assets, net |
24,247 |
31,608 |
Total assets |
4,134,433 |
4,224,670 |
Liabilities |
|
|
Accounts payable and accrued liabilities |
33,185 |
18,431 |
Rentals received in advance |
18,697 |
19,751 |
Payable to related parties |
2,704 |
2,772 |
Security deposits |
59,668 |
64,058 |
Maintenance payment liability |
244,385 |
254,514 |
Unsecured borrowings, net |
689,866 |
689,452 |
Secured borrowings, net |
2,240,721 |
2,335,328 |
Fair market value of derivative liabilities |
28,087 |
23,311 |
Deferred tax liability, net |
17,614 |
16,289 |
Other liabilities |
39,820 |
41,890 |
Total liabilities |
3,374,747 |
3,465,796 |
Shareholders equity |
|
|
Common shares, $0.001 par value, 499,999,900 shares authorized; 41,432,998 shares issued and outstanding at March 31, 2015 and December 31, 2014 |
41
|
41
|
Manager shares, $0.001 par value; 100 shares authorized, issued and outstanding |
− |
− |
Additional paid in capital |
658,674 |
658,522 |
Retained earnings |
124,119 |
117,402 |
Accumulated other comprehensive loss, net |
(23,148) |
(17,091) |
Total shareholders equity |
759,686 |
758,874 |
Total liabilities and shareholders equity |
$ 4,134,433 |
$ 4,224,670 |
FLY Leasing Limited
Consolidated
Statements of Cash Flows
(DOLLARS IN THOUSANDS)
|
Three month
period ended
Mar. 31, 2015
(Unaudited) |
Three month
period ended
Mar. 31, 2014
(Unaudited) |
Cash Flows from Operating Activities |
|
|
Net Income |
$17,266 |
$3,563 |
Adjustments to reconcile net income to net cash flows provided by operating activities: |
|
|
Equity in earnings from unconsolidated subsidiary |
(340) |
(1,382) |
Gain on sale of aircraft |
(1,897) |
- |
Depreciation |
50,074 |
40,403 |
Amortization of debt discounts and issuance costs |
3,110 |
3,142 |
Amortization of lease incentives |
4,036 |
3,388 |
Amortization of lease discounts/premiums and other items |
719 |
632 |
Amortization of fair market value adjustments associated with the GAAM acquisition |
1,237 |
1,929 |
Debt modification and extinguishment costs |
4,050 |
- |
Share-based compensation |
152 |
(56) |
Unrealized foreign exchange loss on cash balances |
330 |
(33) |
Unrealized foreign exchange gain on Euro denominated secured borrowing |
(2,000) |
- |
Provision for deferred income taxes |
2,026 |
634 |
Unrealized gain on derivative instruments |
(264) |
(65) |
Security deposits and maintenance payment liability recognized into earnings |
(21,936) |
(3,268) |
Changes in operating assets and liabilities: |
|
|
Rent receivables |
(1,685) |
(2,079) |
Other assets |
2,375 |
(568) |
Payable to related parties |
(3,632) |
(1,742) |
Accounts payable and accrued liabilities |
11,794 |
5,536 |
Rentals received in advance |
(1,054) |
(773) |
Other liabilities |
(2,606) |
4,470 |
Net cash flows provided by operating activities |
61,755 |
53,731 |
Cash Flows from Investing Activities |
|
|
Purchase of flight equipment |
(137,113) |
(81,837) |
Proceeds from sale of aircraft, net |
126,503 |
- |
Payment for aircraft improvement |
(4,403) |
- |
Payments for maintenance |
(7,730) |
(6,791) |
Net cash flows used in investing activities |
(22,743) |
(88,628) |
|
Three month
period ended
Mar. 31, 2015
(Unaudited) |
Three month
period ended
Mar. 31, 2014
(Unaudited) |
Cash Flows from Financing Activities |
|
|
Restricted cash and cash equivalents |
2,803 |
41,188 |
Security deposits received |
845 |
2,100 |
Security deposits returned |
(2,868) |
- |
Maintenance payment liability receipts |
17,514 |
33,172 |
Maintenance payment liability disbursements |
(8,332) |
(4,195) |
Proceeds from termination of interest rate swaps |
23 |
- |
Debt issuance costs |
(343) |
(197) |
Proceeds from secured borrowings |
67,802 |
- |
Repayment of secured borrowings |
(162,852) |
(44,162) |
Dividends |
(10,358) |
(10,327) |
Dividend equivalents |
(191) |
(676) |
Net cash flows(used in) provided by financing activities |
(95,957) |
16,903 |
Effect of exchange rate changes on cash and cash equivalents |
(330) |
33 |
Net decrease in cash |
(57,275) |
(17,961) |
Cash at beginning of period |
337,560 |
404,472 |
Cash at end of period |
$280,285 |
$386,511 |
Supplemental Disclosure: |
|
|
Cash paid during the period for: |
|
|
Interest |
$24,059 |
$24,725 |
Income taxes |
110 |
137 |
Supplemental disclosure of noncash activities: |
|
|
Aircraft improvement |
2,510 |
621 |
Security deposits applied to maintenance payment liability and rent receivables |
2,542 |
358 |
Maintenance payment liability applied to rent receivables |
2,108 |
- |
Other liabilities applied to maintenance payment liability and rent receivables |
240 |
979 |
Noncash activities in connection with purchase of aircraft: |
|
|
Rent receivable applied |
626 |
- |
Security deposits assumed |
1,743 |
590 |
Lease incentive obligation |
6,099 |
- |
Noncash activities in connection with sale of aircraft: |
|
|
Rent receivable applied |
695 |
- |
Refundable deposits applied |
2,250 |
- |
Security deposits and maintenance reserves transferred |
6,116 |
- |
FLY Leasing Limited
Reconciliation
of Non-GAAP Measures
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)
|
Three month
period ended
March 31, 2015
(Unaudited) |
Three month
period ended
March 31, 2014
(Unaudited) |
Net income |
$ 17,266 |
$ 3,563 |
Amortization of debt discounts and loan issuance costs |
3,110 |
3,142 |
Amortization of lease discounts/premiums and other items |
719 |
632 |
Amortization of GAAM acquisition date fair market value adjustments |
1,237 |
1,929 |
Debt modification and extinguishment costs |
4,050 |
15 |
Share-based compensation |
152 |
(56) |
Unrealized foreign exchange gain |
(1,670) |
(33) |
Deferred income taxes |
2,026 |
634 |
Ineffective, dedesignated and terminated derivatives |
(264) |
(65) |
Adjusted Net Income |
$ 26,626 |
$ 9,761 |
Average Shareholders Equity |
$ 759,280 |
$ 744,698 |
Adjusted Return on Equity |
14.0% |
5.2% |
|
|
|
Weighted average diluted shares outstanding |
41,545,287 |
41,393,731 |
Adjusted Net Income per diluted share |
$0.64 |
$0.24 |
FLY
defines Adjusted Net Income as net income plus or minus (i) non-cash amortization of debt discounts, loan issuance costs, lease
discounts/premiums and other items; (ii) adjustments related to the GAAM portfolio acquisition comprised primarily of amortization
of fair value adjustments recorded in purchase accounting; (iii) debt modification and extinguishment costs; (iv) non-cash share-based
compensation; (v) unrealized foreign exchange gain/loss; (vi) deferred income taxes; and (vii) the ineffective portion and other
comprehensive items associated with terminated cash flow hedges. Adjusted Return on Equity is calculated by dividing Adjusted
Net Income over the average shareholders equity for the period
presented. For periods of less than one year, Adjusted Net Income for the relevant period is annualized in calculating Adjusted
Return on Equity.
We
use Adjusted Net Income and Adjusted Return on Equity to assess our core operating performance on a consistent basis
from period to period. In addition, Adjusted Net Income and Adjusted Return on Equity help us compare our performance to
our competitors. These measures should be considered in addition to, not as a substitute for net income or other financial
measures determined in accordance with Accounting Principles Generally Accepted in the United States. FLYs
definitions may be different than those used by other companies.
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