AerCap Holdings N.V. Reports First Quarter 2011 Financial Results

AMSTERDAM, May 5, 2011 /PRNewswire/ — AerCap Holdings N.V. (the “Company” or “AerCap”) (NYSE: AER) today announced the results of its operations for the first quarter ended March 31, 2011.

First Quarter 2011 Highlights
First quarter 2011 basic and diluted earnings per share was $0.48, compared with $0.40 for the same period in 2010. First quarter 2011 basic and diluted earnings per share excluding the impact of the mark-to-market of interest rate caps and share-based compensation was $0.50, compared with $0.55 for the same period in 2010.

First quarter 2011 net income was $72.1 million, compared with net income of $34.4 million for the same period in 2010. First quarter 2011 net income excluding the impact of the mark-to-market of interest rate caps and share-based compensation was $75.3 million, compared to net income of $46.7 million in the first quarter 2010 on the same basis.

Margin earned on lease assets (net spread) was $186.1 million in the first quarter of 2011 compared to $133.0 million in the first quarter of 2010, an increase of 40%.

Basic lease rents for the first quarter of 2011 were $247.3 million, compared to $165.8 million for the same period in 2010, an increase of 49%. Total lease revenue (basic rents, maintenance rents and end-of-lease compensation) for the first quarter of 2011 was $273.3 million, compared to $175.3 million for the same period in 2010, an increase of 56%. The increase was mainly due to the all-share acquisition of Genesis Lease Limited (the “Genesis Transaction”) which occurred on March 25, 2010 and deliveries of forward order aircraft.

Sales revenue for the first quarter of 2011 was $81.1 million, compared to $182.4 million for the same period in 2010. Sales revenue for the first quarter of 2011 was generated from the sale of four aircraft, four engines and parts inventory. Sales revenue for the first quarter of 2010 was higher than first quarter 2011 as a result of the sale of one new A330 aircraft in the first quarter of 2010.

Total revenue for the first quarter of 2011 was $362.3 million, compared to $363.5 million for the same period in 2010.

Committed purchases of aviation assets delivered or scheduled for delivery in 2011 are $814 million, of which $468 million closed in the first quarter of 2011.

Total assets were $9.8 billion at March 31, 2011, an increase of 12% over total assets of $8.7 billion at March 31, 2010. The increase was driven primarily by deliveries of forward order aircraft.

Klaus Heinemann, CEO of AerCap, commented: “AerCap is delivering record numbers on all three P’s (Platform, Portfolio and Profit) that define the performance of aircraft operating lessors. The AerCap Platform now manages total assets reaching US$9.8 billion at the end of the first quarter. The AerCap Portfolio delivered US$273 million in total lease revenue, an increase of 56% over the same period last year. AerCap’s Profit for the quarter reached a new record of US$75.3 million adjusted net income compared to US$46.7 million in the same period last year. AerCap is highly confident that it will continue to deliver on all three performance measures during 2011.”

AerCap’s CFO, Keith Helming, said: “Our strong financial performance of 2010 continued in first quarter 2011. Net spread and adjusted net income rose by 40% and 61% respectively compared to the same period in 2010. We completed $468 million of purchases during first quarter 2011 including seven aircraft and our assets grew to $9.8 billion. With cash on hand of over $500 million, we are well positioned to take advantage of further growth opportunities in 2011.”

Summary of Financial Results
AerCap recorded a first quarter 2011 net income of $72.1 million or $0.48 earnings per basic and diluted share. First quarter 2011 net income amount included net charges relating to the mark-to-market of interest rate caps and share-based compensation of $3.2 million or $0.02 per basic and diluted share, net of tax. The after-tax charge relating to the mark-to-market of our interest rate caps was $1.5 million which reflects changes in forecasted interest rates and the after-tax charge from share-based compensation was $1.7 million.