Exhibit 99.1
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For Investors:
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Keith Helming
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Chief Financial Officer
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+31 20 655 9670
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khelming@aercap.com
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Peter Wortel
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Investor Relations
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+31 20 655 9658
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pwortel@aercap.com
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For Media:
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Frauke Oberdieck
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PRESS RELEASE
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Corporate Communications
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+31 20 655 9616
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FOR IMMEDIATE RELEASE
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foberdieck@aercap.com
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AerCap Holdings N.V. Reports Fourth Quarter and Full Year 2008
Financial Results
Amsterdam,
Netherlands; February 25, 2009 - AerCap
Holdings N.V. (the “Company” or “AerCap”) (NYSE: AER) today announced the
results of its operations for the fourth quarter and full year ended December 31,
2008.
Fourth Quarter 2008 Highlights
· Fourth quarter
2008 net loss was $19.0 million, compared with net income of $45.1 million for
the same period in 2007. Fourth quarter 2008 net income excluding the impact of
the mark-to-market of interest rate caps and share-based compensation was $18.7
million, compared with $57.0 million in fourth quarter 2007 on the same basis.
· Fourth quarter
net loss included charges of $21.0 million, net of tax related to the
previously disclosed airline defaults and inventory impairments.
· Fourth quarter
2008 basic and diluted loss per share was $0.22. Fourth quarter 2008 basic and
diluted earnings per share excluding the impact of the mark-to-market of
interest rate caps and share-based compensation were $0.22.
· Net spread, the
difference between basic lease rents and interest expense excluding the impact
from the mark-to-market of interest rate caps, was $87.8 million in fourth
quarter 2008 compared to $79.0 million in fourth quarter 2007, an increase of
11%. This measure reflects the increase
in leasing income.
· Total revenue
for the fourth quarter 2008 was $326.4 million, compared to $284.6 million for
the same period in 2007. The increase was mainly due to higher aircraft sales
revenue.
· Sales revenue
for the fourth quarter 2008 was $170.9 million, compared to $138.0 million for
the same period in 2007, and was generated from the sale of two aircraft, five
engines and parts inventory.
1
· Total assets
were $5.4 billion at December 31, 2008, an increase of 23% over total
assets of $4.4 billion at December 31, 2007.
Full Year 2008 Key Financial Highlights
· Full year 2008
net income was $151.8 million, compared with $188.5 million for 2007. Full year
2008 net income excluding non-cash charges relating to the mark-to-market of
our interest rate caps and share-based compensation was $197.8 million, down 6%
vs. $210.6 million in 2007, which was mainly caused by the previously disclosed
airline defaults, inventory impairments, lower gains from sales and lower other
revenue.
· Full year 2008
basic and diluted earnings per share were $1.79. Full year 2008 basic and
diluted earnings per share excluding the impact of the mark-to-market of
interest rate caps and share-based compensation were $2.33.
· Total revenue
for the full year 2008 was $1,256.3 million, up 7% vs. 2007.
· Net spread for
the full year 2008 was $359.6 million, up 19% vs. 2007.
· Sales revenue
for the full year 2008 was $616.6 million, up 10% vs. 2007.
· Aviation assets
purchased and delivered in 2008 were $1.5 billion. In addition to these completed purchases, at December 31,
2008 AerCap had signed agreements for the purchase of four aircraft and letters
of intent for the purchase of two aircraft.
Fourth
Quarter 2008 Financing Highlights - Previously Disclosed
· AerCap signed a
facility agreement with Calyon S.A. and other banks and financial institutions,
outlining the terms pursuant to which the European Export Credit Agencies may
provide guarantees on up to $1.4 billion of financing. This represents a
significant portion of the remaining financing needed for the Airbus A330 order
delivering between 2009 and 2012. The European Export Credit Agencies consist
of Coface in France, ECGD in the United Kingdom, and Euler-Hermes in Germany.
The loans are to be provided by a syndicate of banks led by Calyon acting as
Global Arranger and are subject to customary ECA requirements.
Klaus Heinemann, CEO of AerCap, commented: “We are operating
in an extremely difficult economic climate, but despite these challenges AerCap
has continued to execute its growth strategy, including entering into new lease
contracts and delivering aircraft to its lessees, along with arranging and
maintaining committed financing sources. The combination of our experienced
management team, coupled with stable core lease revenues and committed funding
facilities provide a foundation with which to deal with the ongoing market
challenges. Notwithstanding, the global financial markets are marked with
considerable uncertainty and volatility. As such, if conditions erode further
in 2009, such developments may have an adverse impact on the Company’s clients
and therefore, the Company. As a result, we will remain focused on liquidity
and work toward minimizing any disruption these unprecedented market conditions
may have on the Company’s aircraft portfolio in the coming months.”
AerCap’s
CFO, Keith Helming, added, “We are pleased with our performance during 2008,
particularly in light of the current financial crisis and related airline
defaults. Notwithstanding adverse market conditions, we continue to deliver
revenue growth and
2
derive
significant advantages from the current low interest rate environment as a
result of our hedging strategy, which is reflected in our increased net spread.”
Summary
of Financial Results
AerCap recorded a fourth quarter 2008 net loss of $19.0
million or $0.22 loss per basic and diluted share. Included in the fourth
quarter 2008 net loss amount were charges relating to the mark-to-market of
interest rate caps and share-based compensation of $37.7 million or $0.44 per
basic and diluted share, net of tax. The after-tax charge relating to the
mark-to-market of our interest rate caps was $35.9 million and the after-tax
charge from share-based compensation was $1.8 million.
Detailed
Financial Data
($ in Millions)
Operating
results
|
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|
Three months ended
|
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Twelve months ended
|
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December 31,
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December 31,
|
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|
|
|
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% increase/
|
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|
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% increase/
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|
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2008
|
|
2007
|
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(decrease)
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2008
|
|
2007
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(decrease)
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Revenues
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$
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326.4
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$
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284.6
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15
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%
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$
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1,256.3
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$
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1,176.5
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7
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%
|
|
Net income
|
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(19.0
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)
|
45.1
|
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-142
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%
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151.8
|
|
188.5
|
|
-19
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%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenue in fourth quarter 2008 increased 15% compared
with fourth quarter 2007. This increase was largely driven by a higher amount
of aircraft sales revenue in the fourth quarter 2008. Fourth quarter 2008
aircraft sales included the sale of an A330 delivered from our forward order.
Revenue
breakdown
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Three months ended
|
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Twelve months ended
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December 31,
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December 31,
|
|
|
|
|
|
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% increase/
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% increase/
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|
|
2008
|
|
2007
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(decrease)
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2008
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2007
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(decrease)
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Lease revenue:
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Basic rents
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$
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134.7
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$
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125.9
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7
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%
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$
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520.7
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$
|
494.2
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5
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%
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|
Maintenance
rents
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11.7
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8.5
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38
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%
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69.3
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40.2
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|
72
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%
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End-of-lease
compensation
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2.7
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2.8
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-4
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%
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15.2
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19.8
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-23
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%
|
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Lease revenue
|
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$
|
149.1
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$
|
137.2
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|
9
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%
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$
|
605.2
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|
$
|
554.2
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9
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%
|
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Sales revenue
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170.9
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|
138.0
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24
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%
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616.6
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558.3
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10
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%
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Management fees
and interest income
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6.4
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|
9.2
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-30
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%
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30.3
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44.1
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-31
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%
|
|
Other revenue
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|
—
|
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0.2
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|
100
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%
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4.2
|
|
19.9
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|
-79
|
%
|
|
Total revenue
|
|
$
|
326.4
|
|
$
|
284.6
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|
15
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%
|
$
|
1,256.3
|
|
$
|
1,176.5
|
|
7
|
%
|
Basic lease rents continue to increase when compared to prior
periods as a result of our growing asset base. This increase was partially
offset by the impact from airline defaults which lowered basic lease rents by
$4.7 million in fourth quarter 2008.
In addition, the increase in basic lease rents was reduced by
the impact from decreasing interest rates on floating rate lease rentals
between the periods. However, the decrease in basic rents on floating rate
leases was offset by lower interest costs on the debt associated with the
floating rate leases. While basic lease rents for the fourth quarter 2008
increased 7% compared to fourth quarter 2007 to $134.7 million, interest expense
excluding the impact of mark-to-market of interest rate caps and non-recurring
charges remained constant at $46.9 million, as shown in the table below. We
refer to the difference in these amounts of $87.8 as net spread, which
increased 11% in fourth quarter 2008 over the same period in 2007.
3
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Three months ended
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Twelve months ended
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December 31,
|
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December 31,
|
|
|
|
|
|
|
|
|
% increase/
|
|
|
|
|
|
% increase/
|
|
|
|
|
2008
|
|
2007
|
|
(decrease)
|
|
2008
|
|
2007
|
|
(decrease)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
rents
|
|
$
|
134.7
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|
$
|
125.9
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|
7
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%
|
$
|
520.7
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|
$
|
494.2
|
|
5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest on debt
|
|
$
|
99.0
|
|
$
|
57.7
|
|
72
|
%
|
$
|
219.2
|
|
$
|
234.8
|
|
-7
|
%
|
|
Plus:
mark-to-market of interest rate caps
|
|
(52.1
|
)
|
(10.8
|
)
|
382
|
%
|
(58.1
|
)
|
(14.4
|
)
|
303
|
%
|
|
Less:
Non-recurring charges to interest expense from refinancing of securitized
bonds
|
|
—
|
|
—
|
|
0
|
%
|
—
|
|
(27.4
|
)
|
-100
|
%
|
|
Interest on debt
excluding the impact of mark-to-market of interest rate caps and
non-recurring charges to interest expense from refinancing of securitized
bonds
|
|
$
|
46.9
|
|
$
|
46.9
|
|
0
|
%
|
$
|
161.1
|
|
$
|
193.0
|
|
-17
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Spread
|
|
$
|
87.8
|
|
$
|
79.0
|
|
11
|
%
|
$
|
359.6
|
|
$
|
301.2
|
|
19
|
%
|
Effective tax
rate
AerCap’s effective tax rate during the twelve month period
ended December 31, 2008 was positive 0.3% (income), consisting of negative
2.0% (a charge) for AerCap’s aircraft business and positive 56.8% (income) for
AerCap’s engine and parts business. The effective tax rate in 2007 was negative
11.8% (a charge). The positive tax rate resulted because the most significant
portion of the charges relating to airline defaults and inventory impairments
occurred in the higher tax rate jurisdictions, and the most significant portion
of pre-tax earnings occurred in the lower tax rate jurisdictions.
Financial
position
|
|
|
|
|
|
|
% Increase
|
|
|
|
|
|
|
|
|
over
|
|
|
|
|
December 31,
|
|
December 31,
|
|
December 31,
|
|
|
|
|
2008
|
|
2007
|
|
2007
|
|
|
|
|
|
|
|
|
|
|
|
Flight equipment
held for lease
|
|
$
|
3,989.6
|
|
$
|
3,050.2
|
|
31
|
%
|
|
Total assets
|
|
5,410.8
|
|
4,394.2
|
|
23
|
%
|
|
Total liabilities
|
|
4,284.8
|
|
3,413.1
|
|
26
|
%
|
|
Total equity
|
|
1,109.0
|
|
950.4
|
|
17
|
%
|
|
|
|
|
|
|
|
|
|
|
As of December 31, 2008, AerCap’s
portfolio consisted of 297 aircraft and 75 engines that were either owned, on
order, under contract or letter of intent, or managed.
Notes
Regarding Financial Information Presented In This Press Release
The
financial information presented in this press release is not audited.
The following is a definition of non-GAAP measures used in
this press release and a reconciliation of such measure to the most closely
related GAAP measure:
Net income excluding the impact of mark-to-market
of interest rate caps and share-based compensation. This measure is determined by adding the mark-to-market on
our interest rate caps and share-based compensation during the applicable
period, net of related tax benefits, to GAAP net income. AerCap believes this
measure provides investors with a more meaningful view on AerCap’s operational
performance and allows investors to better understand its operational
performance in relation to past and future reporting periods. AerCap uses
interest rate caps to allow it to benefit from decreasing interest rates and
protect against the negative impact of rising interest rates on its floating
rate debt. Management determines the appropriate level of caps in any period
with reference to the mix of floating and fixed cash inflows from the Company’s
lease and other contracts. AerCap does not apply hedge accounting to its
interest rate caps. As a result, AerCap is required to recognize the change in
fair value of the interest rate caps in AerCap’s income statement during each
period. Following is a reconciliation of net income excluding the impact of
mark-
4
to-market of interest rate caps and share-based compensation
to net income for the three month and twelve month periods ended December 31,
2008 and 2007:
|
|
|
Three months ended
|
|
Twelve months ended
|
|
|
|
|
December 31,
|
|
December 31,
|
|
|
|
|
|
|
|
|
% increase/
|
|
|
|
|
|
% increase/
|
|
|
|
|
2008
|
|
2007
|
|
(decrease)
|
|
2008
|
|
2007
|
|
(decrease)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
(19.0
|
)
|
$
|
45.1
|
|
-142
|
%
|
$
|
151.8
|
|
$
|
188.5
|
*
|
-19
|
%
|
|
Plus:
mark-to-market of interest rate caps, net of tax
|
|
35.9
|
|
9.4
|
|
282
|
%
|
39.6
|
|
12.6
|
|
214
|
%
|
|
share-based
compensation, net of tax
|
|
1.8
|
|
2.5
|
|
-28
|
%
|
6.4
|
|
9.5
|
|
-33
|
%
|
|
Net income
excluding the impact of mark-to-market of interest rate caps and share-based
compensation
|
|
$
|
18.7
|
|
$
|
57.0
|
|
-67
|
%
|
$
|
197.8
|
|
$
|
210.6
|
|
-6
|
%
|
*- Includes a
charge to interest expense from refinancing of securitized bonds of $24.0
million, net of tax.
Earnings per share excluding the impact of mark-to-market of
interest rate caps and share-based compensation are determined by dividing the
amount of net income excluding such impact by the average number of shares outstanding
for that period. The average number of shares is based on a daily average.
Net spread.
This measure is the difference between basic lease rents and interest expense
excluding the impact from the mark-to-market of interest rate caps and
non-recurring charges. AerCap believes this measure provides investors a better
way to understand the changes and trends related to the earnings of its leasing
activities. This measure reflects the impact from changes in the number of
aircraft leased, lease rates, utilization rates, as well as the impact from the
use of interest rate caps instead of swaps for hedging purposes. The
reconciliation of net spread to basic rents for the three month and twelve
month periods ended December 31, 2008 and 2007 is included above.
Conference
Call
In connection with the
earnings release, management will host an earnings conference call today,
Wednesday, February 25, 2009 at 9:30 am Eastern Time / 3:30 pm Central
European Time. The
call can be accessed live by dialing (U.S./Canada) 800-676-6978 or (International) +1-706-634 5464 and referencing code 82185363 at least 5 minutes before start
time, or by visiting AerCap’s website at http://www.aercap.com under ‘Investor
Relations’.
The presentation slides
for the conference call will be posted on AerCap’s website in advance of the
call. A replay of the call will be
available beginning at 10:30 am Eastern Time / 4:30 pm Central European Time on
February 25, 2009 and continuing through March 30, 2009. To access
the recording, call 800-642-1687 (U.S./Canada) or +1-706-645-9291 (International)
and enter passcode 82185363. The
replay will be archived in the “Investor Relations” section of the Company’s
website for one year.
In addition, a New York Group Lunch Presentation for investors and analysts will be hosted by AerCap’s
management today, Wednesday, February 25, 2009, at 12:30 pm Eastern Time
at The New York Palace (the Henry Room).
Doors will open at 12:00 pm.
To participate in either
event, please register at: www.sharedvalue.net/aercap/q408results
For further information,
contact Peter Wortel: +31 20 655 9658 (pwortel@aercap.com) or Mark Walter
(Shared Value): +44 (0)20 7321 5039 (aercap@sharedvalue.net).
5
About
AerCap Holdings N.V.
AerCap is an integrated
global aviation company with a leading market position in aircraft and engine
leasing, trading and parts sales. AerCap also provides aircraft management
services and performs aircraft maintenance, repair and overhaul services and
aircraft disassemblies. AerCap is headquartered in The Netherlands and has
offices in Ireland, the United States, Singapore, China and the United Kingdom.
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,” “will,” “should,” “expect,”
“plan,” “intend,” “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, 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. As a result, there can be no assurance that the forward-looking
statements included in this press release will prove to be accurate or correct.
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. We do not undertake any obligation to, and will not, 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 http://www.aercap.com.
Financial
Statements Follow
6
AerCap Holdings N.V.
Consolidated Balance Sheets -
Unaudited
(In thousands of U.S. Dollars)
|
|
|
December 31, 2008
|
|
December 31, 2007
|
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
193,563
|
|
$
|
241,736
|
|
|
Restricted cash
|
|
113,397
|
|
95,072
|
|
|
Trade receivables,
net of provisions
|
|
43,649
|
|
35,591
|
|
|
Flight equipment
held for operating leases, net
|
|
3,989,629
|
|
3,050,160
|
|
|
Flight equipment
held for sale
|
|
—
|
|
136,135
|
|
|
Net investment
in direct finance leases
|
|
30,571
|
|
—
|
|
|
Notes
receivables, net of provisions
|
|
134,067
|
|
184,820
|
|
|
Prepayments on
flight equipment
|
|
448,945
|
|
247,839
|
|
|
Investments
|
|
18,678
|
|
11,678
|
|
|
Goodwill
|
|
6,776
|
|
6,776
|
|
|
Intangibles, net
|
|
47,099
|
|
41,855
|
|
|
Inventory
|
|
102,879
|
|
90,726
|
|
|
Derivative
assets
|
|
19,352
|
|
21,763
|
|
|
Deferred income
taxes
|
|
82,471
|
|
85,253
|
|
|
Other assets
|
|
179,750
|
|
144,823
|
|
|
Total
Assets
|
|
$
|
5,410,826
|
|
$
|
4,394,227
|
|
|
|
|
|
|
|
|
|
Liabilities
and Shareholders’ equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts payable
|
|
$
|
7,510
|
|
$
|
16,376
|
|
|
Accrued expenses
and other liabilities
|
|
104,750
|
|
81,379
|
|
|
Accrued
maintenance liability
|
|
202,834
|
|
255,535
|
|
|
Lessee deposit
liability
|
|
98,584
|
|
83,628
|
|
|
Debt
|
|
3,790,487
|
*
|
2,892,744
|
|
|
Accrual for
onerous contracts
|
|
33,306
|
|
46,411
|
|
|
Deferred revenue
|
|
34,922
|
|
33,574
|
|
|
Derivative
liabilities
|
|
12,378
|
|
—
|
|
|
Deferred income
taxes
|
|
—
|
|
3,425
|
|
|
Total
liabilities
|
|
4,284,771
|
|
3,413,072
|
|
|
|
|
|
|
|
|
|
Minority
interest
|
|
17,018
|
|
30,782
|
|
|
|
|
|
|
|
|
|
Share capital
|
|
699
|
|
699
|
|
|
Additional paid-in
capital
|
|
609,327
|
|
602,469
|
|
|
Retained
earnings
|
|
499,011
|
|
347,205
|
|
|
Total
shareholders’ equity
|
|
1,109,037
|
|
950,373
|
|
|
|
|
|
|
|
|
|
Total
Liabilities and Shareholders’ equity
|
|
$
|
5,410,826
|
|
$
|
4,394,227
|
|
* Includes $61.9 million of subordinated debt received
from our joint venture partner relating to the TUI portfolio acquisition
7
AerCap Holdings N.V.
Consolidated Income Statements -
Unaudited
(In thousands of U.S. Dollars, except share and per
share data)
|
|
|
Three months ended
|
|
Twelve months ended
|
|
|
|
|
December 31,
|
|
December 31,
|
|
|
|
|
2008
|
|
2007
|
|
2008
|
|
2007
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
Lease revenue
|
|
$
|
149,119
|
|
$
|
137,157
|
|
$
|
605,253
|
|
$
|
554,226
|
|
|
Sales revenue
|
|
170,925
|
|
137,973
|
|
616,554
|
|
558,263
|
|
|
Interest revenue
|
|
3,584
|
|
6,020
|
|
18,515
|
|
29,742
|
|
|
Management fee
revenue
|
|
2,779
|
|
3,206
|
|
11,749
|
|
14,343
|
|
|
Other revenue
|
|
25
|
|
203
|
|
4,181
|
|
19,947
|
|
|
Total
Revenues
|
|
326,432
|
|
284,559
|
|
1,256,252
|
|
1,176,521
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses
|
|
|
|
|
|
|
|
|
|
|
Depreciation
|
|
46,061
|
|
34,815
|
|
169,392
|
|
141,113
|
|
|
Asset impairment
|
|
11,100
|
|
—
|
|
18,789
|
|
—
|
|
|
Cost of goods
sold
|
|
146,596
|
|
104,458
|
|
506,312
|
|
432,143
|
|
|
Interest on debt
|
|
98,990
|
|
57,656
|
|
219,172
|
|
234,770
|
|
|
Operating lease
in costs
|
|
3,303
|
|
4,664
|
|
14,512
|
|
20,176
|
|
|
Leasing expenses
|
|
32,356
|
|
4,595
|
|
55,569
|
|
18,825
|
|
|
Provision for
doubtful notes and accounts receivable
|
|
2,685
|
|
390
|
|
3,746
|
|
745
|
|
|
Selling, general
and administrative expenses
|
|
31,616
|
|
34,167
|
|
128,268
|
|
116,328
|
|
|
Total
Expenses
|
|
372,707
|
|
240,745
|
|
1,115,760
|
|
964,100
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
from continuing operations before income taxes and minority interest
|
|
(46,275
|
)
|
43,814
|
|
140,492
|
|
212,421
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for
income taxes
|
|
15,851
|
|
(152
|
)
|
430
|
|
(25,123
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income before minority interest
|
|
(30,424
|
)
|
43,662
|
|
140,922
|
|
187,298
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Minority
interest, net of taxes
|
|
11,426
|
|
1,453
|
|
10,883
|
|
1,155
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Income
|
|
$
|
(18,998
|
)
|
$
|
45,115
|
|
$
|
151,805
|
|
$
|
188,453
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and
diluted earnings per share
|
|
(0.22
|
)
|
$
|
0.53
|
|
$
|
1.79
|
|
$
|
2.22
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding - basic and diluted
|
|
85,036,957
|
|
85,036,957
|
|
85,036,957
|
|
85,036,957
|
|
8
AerCap Holdings N.V.
Consolidated Statements of Cash Flows
(In thousands of U.S. Dollars)
|
|
|
Three months ended December 31,
|
|
Twelve months ended December 31,
|
|
|
|
|
2008
|
|
2007
|
|
2008
|
|
2007
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
(18,998
|
)
|
45,115
|
|
151,805
|
|
188,453
|
|
|
Adjustments
to reconcile net income (loss) to net cash provided by operating activities
|
|
|
|
|
|
|
|
|
|
|
Minority
interest
|
|
(11,426
|
)
|
(1,453
|
)
|
(10,883
|
)
|
(1,155
|
)
|
|
Depreciation
|
|
46,062
|
|
34,797
|
|
169,392
|
|
141,095
|
|
|
Asset impairment
|
|
11,100
|
|
—
|
|
18,789
|
|
—
|
|
|
Amortisation of
debt issuance cost
|
|
4,328
|
|
3,295
|
|
16,239
|
|
38,156
|
|
|
Amortisation of
intangibles
|
|
3,788
|
|
2,938
|
|
14,615
|
|
10,800
|
|
|
Gain on
elimination of fair value guarantee
|
|
—
|
|
—
|
|
—
|
|
(10,736
|
)
|
|
Gain on
discounted purchase of securitized bonds
|
|
—
|
|
—
|
|
(2,783
|
)
|
—
|
|
|
Provision for
doubtful notes and accounts receivable
|
|
2,685
|
|
390
|
|
3,746
|
|
745
|
|
|
Capitalised
interest on pre-delivery payments
|
|
210
|
|
(1,361
|
)
|
(2,098
|
)
|
(5,968
|
)
|
|
Gain on disposal
of assets
|
|
(15,073
|
)
|
(28,667
|
)
|
(80,341
|
)
|
(103,455
|
)
|
|
Change in fair
value of derivative instruments
|
|
48,742
|
|
(4,231
|
)
|
51,646
|
|
(3,892
|
)
|
|
Deferred taxes
|
|
(15,161
|
)
|
3,393
|
|
(642
|
)
|
13,929
|
|
|
Share -based
compensation
|
|
1,475
|
|
2,899
|
|
6,858
|
|
10,916
|
|
|
Changes
in assets and liabilities
|
|
|
|
|
|
|
|
|
|
|
Trade
receivables and notes receivable, net
|
|
(6,784
|
)
|
(12,376
|
)
|
(5,208
|
)
|
(28,647
|
)
|
|
Inventories
|
|
(14,683
|
)
|
(4,513
|
)
|
(5,469
|
)
|
8,460
|
|
|
Other assets and
derivative assets
|
|
(930
|
)
|
9,561
|
|
(48,580
|
)
|
(16,041
|
)
|
|
Accounts payable
and accrued expenses, including accrued maintenance liability, lessee
deposits
|
|
(9,545
|
)
|
(3,726
|
)
|
(28,001
|
)
|
(41,904
|
)
|
|
Deferred revenue
|
|
(3,594
|
)
|
3,236
|
|
1,348
|
|
5,182
|
|
|
Net
cash provided by operating activities
|
|
22,196
|
|
49,297
|
|
250,433
|
|
205,938
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchase of
flight equipment
|
|
(287,515
|
)
|
(242,357
|
)
|
(1,302,157
|
)
|
(699,807
|
)
|
|
Proceeds from
sale/disposal of assets
|
|
135,048
|
|
116,875
|
|
487,475
|
|
449,313
|
|
|
Prepayments on
flight equipment
|
|
(132,839
|
)
|
(57,440
|
)
|
(339,422
|
)
|
(164,074
|
)
|
|
Receipt of notes
receivable in defeasance structures
|
|
44,157
|
|
—
|
|
44,157
|
|
—
|
|
|
Purchase of investments
|
|
(7,550
|
)
|
—
|
|
(17,550
|
)
|
—
|
|
|
Sale of
investments
|
|
—
|
|
—
|
|
6,234
|
|
—
|
|
|
Purchase of
intangibles
|
|
—
|
|
(1,633
|
)
|
(21,410
|
)
|
(18,427
|
)
|
|
Movement in
restricted cash
|
|
54,446
|
|
(34,258
|
)
|
(18,325
|
)
|
17,205
|
|
|
Net
cash used in investing activities
|
|
(194,253
|
)
|
(218,813
|
)
|
(1,160,998
|
)
|
(415,790
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
Issuance of debt
|
|
494,446
|
|
291,588
|
|
1,642,784
|
|
2,395,956
|
|
|
Repayment of
debt
|
|
(306,972
|
)
|
(145,201
|
)
|
(742,258
|
)
|
(2,025,298
|
)
|
|
Debt issuance
costs paid
|
|
(6,314
|
)
|
(7,162
|
)
|
(44,933
|
)
|
(49,579
|
)
|
|
Capital contributions
from minority interests
|
|
5,000
|
|
—
|
|
5,000
|
|
—
|
|
|
Net
cash provided by financing activities
|
|
186,160
|
|
139,225
|
|
860,593
|
|
321,079
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase
(decrease) in cash and cash equivalents
|
|
14,103
|
|
(30,291
|
)
|
(49,972
|
)
|
111,227
|
|
|
Effect of
exchange rate changes
|
|
3,016
|
|
30
|
|
1,799
|
|
(692
|
)
|
|
Cash and cash
equivalents at beginning of period
|
|
176,444
|
|
271,997
|
|
241,736
|
|
131,201
|
|
|
Cash
and cash equivalents at end of period
|
|
193,563
|
|
241,736
|
|
193,563
|
|
241,736
|
|
9