Fly Leasing's income up, leverage lower after sales
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Fly Leasing has reported Adjusted Net Income of $30.8 million for the last quarter of 2018, or 94 cents per share. This compares to to Adjusted Net Income of $7.3 million (26c per share) for the same period in the previous year. "FLY’s strong operating performance throughout 2018 produced a record full-year result, with Adjusted EPS of $3.06 per share," said CEO Colm Barrington. "Based on these strong trends, FLY is expecting another great financial result in 2019, starting with first quarter expected pre-tax income of more than $45 million."

There was a 26% increase in operating lease rental revenue as compared to the fourth quarter of 2017, said Barrington. Adjusted EPS was $3.06 per share. “Our renewed and larger fleet drove a 26% increase in operating lease rental revenue as compared to the fourth quarter of 2017. We held expenses below last year’s level,” he added. "During 2018 we increased our fleet significantly, and since then we have reduced our leverage through profitable aircraft sales and now have ample financial capacity for growth."
Colm Barrington: Fly Leasing sales have enabled lower leverage



Fly is a global aircraft leasing company with a fleet of modern, high-demand, and fuel efficient commercial jet aircraft. Fly leases its aircraft under multi-year lease contracts to a diverse group of airlines throughout the world. The firm is managed and serviced by BBAM. The company sold six aircraft at a 17% premium to book value and book value grew by 11% to $21.50 per share.

During 2018 we increased our fleet significantly, and since then we have reduced our leverage through profitable aircraft sales and now have ample financial capacity for growth," said Barrington. As of December 31, 2018, FLY had completed the acquisition of 33 Airbus A320 aircraft and seven engines. FLY’s total assets were $4.2 billion, including investment in flight equipment totalling $3.8 billion. The average age of the portfolio at the end of 2018 was 7.2 years and the average remaining lease term was 5.8 years.

Fly's lease utilization factor was 100% for the fourth quarter of 2018 and 99.7% for the year. The net debt to equity ratio was 4.0 times, an improvement from 4.3 times at the start of 2018. In December, Fly had 113 aircraft and seven engines in its portfolio. Of the 113 aircraft, 100 were held for operating lease, one was classified as an investment in finance lease and 12 were classified as held for sale. FLY's aircraft are on lease to 46 airlines in 26 countries.