Friday, 26 February 2021

$67 million net loss for Fly Leasing during 2020


Fly Leasing Limited, a global leader in aircraft leasing, has announced its financial results for the fourth quarter and full year of 2020. As of 31st December 2020, the company had 84 aircraft and seven engines in its portfolio. FLY's aircraft and engines are on lease to 37 airlines in 23 countries. 



Fourth Quarter 2020 Highlights

Net loss of $107 million, $3.51 per share
Non-cash impairment charge of $115 million
Sold two aircraft and one engine;17% premium to book value
Raised $180 million five-year Term Loan
Repaid FLY's $325 million 2021 Notes


2020 Full Year Highlights

Net loss of $67 million, $2.21 per share
Sold eight aircraft and three engines; 19% premium to book value
$25.88 book value per share
2.3x net debt to equity
$132 million of unrestricted cash and cash equivalents
Unencumbered assets of $180 million


"FLY's financial performance continues to be impacted by the COVID pandemic which has had an unprecedented impact on global air traffic," said Colm Barrington, FLY's Chief Executive Officer. "In the fourth quarter global airline passenger traffic was 70% less than in the same quarter a year ago. Fortunately, as COVID vaccines reach the majority of populations and border testing becomes more efficient, we expect to see a lifting of government restrictions on travel and pent up demand returning passenger numbers towards pre-pandemic levels later in the year."

"At year end, FLY's book value was $25.88 per share, our net debt to equity ratio was 2.3 times and our unrestricted cash was $132 million," Barrington added. "FLY has now redeemed its 2021 unsecured notes, has no capital commitments in 2021 and no significant debt maturities until 2023. We remain in a strong position to weather the current difficult, but improving, market conditions."

Financial Results

FLY is reporting a net loss of $107.0 million, or $3.51 per share, for the fourth quarter of 2020. This compares to net income of $75.2 million, or $2.43 per share, for the same period in 2019. The decrease in net income is primarily due to flight equipment impairment of $115.0 million.

Net loss for the year ended December 31, 2020 was $67.4 million, or $2.21 per share, compared to net income of $225.9 million, or $7.12 per share, for the year ended December 31, 2019.

Adjusted Net Income (Loss)

Adjusted Net Loss was $115.2 million for the fourth quarter of 2020, compared to Adjusted Net Income of $77.0 million for the same period in the previous year. On a per share basis, Adjusted Net Loss was $3.78 in the fourth quarter of 2020, compared to Adjusted Net Income of $2.49 for the fourth quarter of 2019.

For the year ended December 31, 2020, Adjusted Net Loss was $69.4 million, or $2.27 per share, compared to Adjusted Net Income of $245.9 million, or $7.75 per share, for the same period last year.

A reconciliation of Adjusted Net Income (Loss) to net income (loss) determined in accordance with GAAP is shown below.

Financial Position

At December 31, 2020, FLY's total assets were $3.2 billion, including investment in flight equipment totaling $2.8 billion. Total cash at December 31, 2020 was $161.5 million, of which $132.1 million was unrestricted. The book value per share at December 31, 2020 was $25.88. Compared to the prior year, FLY's net debt to equity ratio at December 31, 2020 remained at 2.3x.

Flight Equipment Impairment

FLY recognized flight equipment impairment of $115.0 million in the fourth quarter of 2020, of which $106.0 million is related to two Airbus A330-300 aircraft expected to be returned by the lessee in 2021. These widebody aircraft are the only aircraft of their type in FLY's portfolio. The balance of the impairment charge is related to seven narrowbody aircraft that FLY expects to sell in 2021.


Portfolio at

Dec. 31, 2020

Dec. 31, 2019



Number

% of Net

Book Value

Number

% of Net

Book Value

Airbus A320ceo Family

32

28%

34

28%



Airbus A320neo Family

1

2%

1

2%



Airbus A330

3

2%

3

6%



Boeing 737NG

40

39%

42

37%



Boeing 737 MAX

2

3%

2

3%



Boeing 757-SF

1

<1%



Boeing 777-LRF

2

11%

2

10%



Boeing 787

4

15%

4

14%



      Total(1)

84

100%

89

100%



(1) Includes six aircraft classified as held for sale as of December 31, 2019. No aircraft were classified as held for sale as of December 31, 2020.





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