• Net income for the fourth quarter of 2021 was $89 million, or $0.44 per share. Net income for the full year 2021 was $1,001 million, or $6.71 per share.
  • Excluding expenses related to the GECAS transaction, net income was $211 million, or $1.04 per share for the fourth quarter of 2021, and $1,294 million, or $8.68 per share for the full year 2021.
  • The airline industry continues to experience a rapid recovery in air travel in many of the world's major markets.

DUBLIN, March 30, 2022 /PRNewswire/ -- AerCap Holdings N.V. (NYSE: AER), the global leader in aviation leasing, today reported financial results for the fourth quarter of 2021 ended December 31, 2021.

Aengus Kelly, Chief Executive Officer of AerCap, said: "2021 was a milestone year for AerCap as we closed the GECAS transaction on November 1st. This transaction significantly enhanced and diversified our fleet, broadened our customer base and geographic reach, increased our product offering and added outstanding new talent - the combination of which we expect to lead to increased revenues, earnings and cash flows in the future. Notwithstanding the Ukraine invasion and the broad sanctions imposed against Russia, where we had approximately 5% of our fleet, we believe the continued recovery in air travel in many parts of the world puts AerCap on a positive trajectory heading into 2022."

Highlights

  • Completed the GECAS acquisition on November 1, 2021, making AerCap the worldwide industry leader across all areas of aviation leasing: aircraft, engines and helicopters.
  • Executed 230 transactions in the fourth quarter 2021, including 158 lease agreements, 42 purchases and 30 sales.
  • Completed the offering of $21 billion of senior unsecured notes in October 2021 and a $2 billion secured institutional term loan in November 2021 to finance the GECAS acquisition with an average coupon of approximately 2.6% and an average tenor of 7.1 years.
  • Adjusted debt/equity ratio of 2.66 to 1 at December 31, 2021.
  • Fourth quarter cash flow from operating activities was $1.7 billion, more than 2.5x higher than the fourth quarter of 2020.
  • Continued to see significant improvements in cash collections, trade receivables and deferral requests.
  • Special items in the fourth quarter of 2021 included $139 million ($122 million after-tax) of expenses related to the GECAS transaction.

Revenue and Net Spread



Three months ended December 31,


Year ended December 31,



2021


2020


% increase/ 
(decrease)


2021


2020


% increase/ 
(decrease)



(U.S. Dollars in millions)


(U.S. Dollars in millions)

Lease revenue:













   Basic lease rents


$1,283


$885


45%


$3,891


$3,762


3%

   Maintenance rents and other receipts


97


110


(12%)


521


559


(7%)

Total lease revenue


1,380


995


39%


4,412


4,321


2%

Net gain on sale of assets


25


14


74%


89


90


0%

Other income


38


22


72%


723


83


771%

Total Revenues and other income


$1,441


$1,032


40%


$5,224


$4,494


16%

Basic lease rents were $1,283 million for the fourth quarter of 2021, compared with $885 million for the same period in 2020. The increase was primarily due to the impact of the GECAS acquisition.

Maintenance rents and other receipts were $97 million for the fourth quarter of 2021, compared with $110 million for the same period in 2020. The decrease was primarily due to lower maintenance revenue recognized as a result of lease terminations during the fourth quarter of 2021.

Net gain on sale of assets for the fourth quarter of 2021 was $25 million, relating to 24 assets sold for $412 million, compared with $14 million for the same period in 2020, relating to 12 aircraft sold for $97 million. The increase was primarily due to the higher volume and composition of asset sales.

Other income for the fourth quarter of 2021 was $38 million, compared with $22 million for the same period in 2020. The increase was primarily due to the impact of the GECAS acquisition.



Three months ended December 31,


Year ended December 31,



2021


2020


% increase/ 
(decrease)


2021


2020


% increase/ 
(decrease)



(U.S. Dollars in millions)


(U.S. Dollars in millions)














Basic lease rents


$1,283


$885


45%


$3,891


$3,762


3%














Interest expense


370


311


19%


1,230


1,248


(1%)

Adjusted for:













   Mark-to-market of interest rate caps and swaps


9



NA


20


(14)


NA

Interest expense excluding mark-to-market of interest rate caps and swaps


379


311


22%


1,250


1,234


1%

Net interest margin (*)


$905


$575


57%


$2,641


$2,528


4%

Depreciation and amortization, including maintenance rights expense


(557)


(408)


37%


(1,745)


(1,691)


3%

Net interest margin, less depreciation and amortization (*)


$348


$167


108%


$896


$837


7%














Average lease assets (*)


$54,110


$36,496


48%


$40,646


$37,145


9%














Annualized net spread (*)


6.7%


6.3%




6.5%


6.8%



Annualized net spread less depreciation and amortization (*)


2.6%


1.8%




2.2%


2.3%
















(*) Refer to "Notes Regarding Financial Information Presented in This Press Release" for details relating to these non-GAAP measures

Interest expense excluding mark-to-market of interest rate caps and swaps was $379 million for the fourth quarter of 2021, compared with $311 million for the same period in 2020. AerCap's average cost of debt was 3.2% for the fourth quarter of 2021, compared with 3.8% for the same period in 2020, excluding debt issuance costs, upfront fees and other impacts.

Selling, General and Administrative Expenses



Three months ended December 31,


Year ended December 31,



2021


2020


% increase/ 
(decrease)


2021


2020


% increase/ 
(decrease)



(U.S. Dollars in millions)


(U.S. Dollars in millions)














Selling, general and administrative expenses


$87


$44


98%


$222


$173


28%

Share-based compensation expenses


32


20


63%


96


69


39%

Total selling, general and administrative expenses


$119


$64


87%


$318


$242


31%

Selling, general and administrative expenses increased to $119 million for the fourth quarter of 2021, compared with $64 million for the same period in 2020. The increase was primarily driven by higher compensation-related expenses as a result of the GECAS acquisition.

Other Expenses

Asset impairment charges were $6 million for the fourth quarter of 2021, compared to $27 million recorded for the same period in 2020. Asset impairment charges recorded in the fourth quarter of 2021 related to lease terminations and sales transactions and were more than offset by related maintenance revenue.

Leasing expenses were $162 million for the fourth quarter of 2021, compared with $91 million for the same period in 2020. The increase was primarily driven by an increase in our provision for expected credit losses.

Effective Tax Rate

AerCap's effective tax rate for the full year 2021 was 14.2%, compared with the effective tax rate of 5.5% for the full year 2020. The effective tax rate is impacted by the source and amount of earnings among our different tax jurisdictions as well as the amount of permanent tax differences relative to pre-tax income.

The company's effective tax rate was 21.7% for the fourth quarter of 2021 and the fourth quarter of 2020. Our effective tax rate in any quarter can be impacted by revisions to the estimated full year rate.

Book Value Per Share



December 31,
2021


December 31,
2020



(U.S. Dollars in millions,
except share and per share data)






Total AerCap Holdings N.V. shareholders' equity


$16,571


$8,864






Ordinary shares outstanding


245,395,448


130,398,538

Unvested restricted stock


(5,822,811)


(2,552,346)

Ordinary shares outstanding (excl. unvested restricted stock)


239,572,637


127,846,192






Book value per ordinary share outstanding (excl. unvested restricted stock)


$69.17


$69.34

 

Financial Position



December 31,
2021


December 31,
2020


% increase/

(decrease) over

December 31,
2020



(U.S. Dollars in millions)








Total cash, cash equivalents and restricted cash


$1,915


$1,495


28%

Total assets


74,570


42,048


77%

Debt


50,205


28,742


75%

Total liabilities


57,922


33,116


75%

Total AerCap Holdings N.V. shareholders' equity


16,571


8,864


87%

Total equity


16,647


8,932


86%








Aircraft Portfolio

As of December 31, 2021, AerCap's portfolio consisted of 3,701 aircraft, engines and helicopters that were owned, on order or managed. The average age of the company's owned aircraft fleet as of December 31, 2021 was 7.1 years (3.4 years for new technology aircraft, 13.0 years for current technology aircraft) and the average remaining contracted lease term was 7.3 years.

Ukraine Conflict

In response to the Russian invasion of Ukraine on February 24, 2022, the United States, the European Union, the United Kingdom and other countries have imposed broad, far-reaching sanctions against Russia, certain Russian persons and certain activities involving Russia or Russian persons. These sanctions include prohibitions regarding the supply of aircraft and aircraft components to Russian persons or for use in Russia, subject to certain wind-down periods. AerCap intends to fully comply with all applicable sanctions and we have terminated the leasing of all our aircraft and engines with Russian airlines. As of December 31, 2021, approximately 5% of AerCap's fleet by net book value was on lease to Russian airlines. We continue to make efforts to repossess additional aircraft and engines from our former Russian airline customers, but it is unclear if we will be able to do so, or what the condition of these assets will be at the time of repossession. We expect to recognize an impairment on our assets in Russia that have not been returned to us as early as the first quarter of 2022, although we have not determined the amount of any impairment.

Notes Regarding Financial Information Presented in This Press Release

The financial information presented in this press release is not audited.

Due to rounding, numbers presented throughout this document may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures.

The following are definitions of non-GAAP measures used in this press release. We believe these measures may further assist investors in their understanding of our operational performance.

Net income / earnings per share excluding GECAS transaction and integration-related expenses

Net income excluding GECAS transaction and integration-related expenses is calculated as net income excluding the after-tax impact of transaction and integration-related expenses. Earnings per share excluding GECAS transaction and integration-related expenses is calculated by dividing net income excluding GECAS transaction and integration-related expenses by the weighted average of our ordinary shares outstanding. Given the relative significance of this item during 2021, we have chosen to present this measure in order to assist investors in their understanding of the changes and trends related to our earnings.



Three months ended December 31, 2021


Year ended December 31, 2021



Net income


Earnings

per share


Net income


Earnings

per share



(U.S. Dollars in millions, except per share data)










Net income  / earnings per share


$89


$0.44


$1,001


$6.71










Transaction and Integration-related expenses


139


0.68


335


2.25

Income tax effect


(17)


(0.09)


(42)


(0.28)










Net income / earnings per share excluding GECAS
transaction and integration-related expenses


$211


$1.04


$1,294


$8.68

Adjusted debt/equity ratio

This measure is the ratio obtained by dividing adjusted debt by adjusted equity.

  • Adjusted debt means consolidated total debt less cash and cash equivalents, and less a 50% equity credit with respect to certain long-term subordinated debt.
  • Adjusted equity means total equity, plus the 50% equity credit relating to the long-term subordinated debt.

Adjusted debt and adjusted equity are adjusted by the 50% equity credit to reflect the equity nature of those financing arrangements and to provide information that is consistent with definitions under certain of our debt covenants. We believe this measure may further assist investors in their understanding of our capital structure and leverage.



December 31,
2021


December 31,
2020



(U.S. Dollars in millions,
 except debt/equity ratio)






Debt


$50,205


$28,742






Adjusted for:





   Cash and cash equivalents


(1,729)


(1,249)

   50% credit for long-term subordinated debt


(1,125)


(1,125)

Adjusted debt


$47,351


$26,368











Equity


$16,647


$8,932






Adjusted for:





   50% credit for long-term subordinated debt


1,125


1,125

Adjusted equity


$17,772


$10,057






Adjusted debt/equity ratio


2.66 to 1


2.62 to 1

Net interest margin, annualized net spread, annualized net spread less depreciation and amortization and average cost of debt

Net interest margin is calculated as the difference between basic lease rents and interest expense, excluding the impact of the mark-to-market of interest rate caps and swaps. Annualized net spread is net interest margin expressed as a percentage of average lease assets. Annualized net spread less depreciation and amortization is net interest margin less depreciation and amortization, including maintenance rights expense, expressed as a percentage of average lease assets. Average cost of debt is calculated as interest expense, excluding mark-to-market on interest rate caps and swaps, divided by average debt balance. We believe these measures may further assist investors in their understanding of the changes and trends related to the earnings of our leasing activities. These measures reflect the impact from changes in the number of aircraft leased, lease rates and utilization rates, as well as the impact from changes in the amount of debt and interest rates.

Lease assets

Lease assets include flight equipment held for operating leases, flight equipment held for sale, net investment in finance leases and maintenance rights assets.

Conference Call

In connection with its report of fourth quarter 2021 results, management will host a conference call with members of the investment community today, Wednesday, March 30, 2022, at 8:30 am Eastern Time. The call can be accessed live via webcast by AerCap's website at www.aercap.com under "Investors", or by dialing (U.S./Canada) +1 929 477 0402 or (International) +353 1 246 5638 and referencing code 8067205 at least 5 minutes before start time.

The webcast replay will be archived in the "Investors" section of the company's website for one year.

For further information, contact Joseph McGinley: +353 1 418 0428 (jmcginley@aercap.com).

About AerCap

AerCap is the global leader in aviation leasing with one of the most attractive order books in the industry. AerCap serves approximately 300 customers around the world with comprehensive fleet solutions. AerCap is listed on the New York Stock Exchange (AER) and is based in Dublin with offices in Shannon, Miami, Singapore, Amsterdam, Shanghai, Abu Dhabi, Seattle, Toulouse and other locations around the world.

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," "should," "expect," "plan," "intend," "will," "aim," "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, and 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, including the impacts of, and associated responses to: the Covid-19 pandemic, our ability to successfully integrate GECAS' operations and employees and realize anticipated synergies and cost savings; and the potential impact of the consummation of the GECAS transaction on relationships, including with employees, suppliers, customers and competitors, 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, we cannot assure you 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. Except as required by applicable law, 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 www.aercap.com and follow us on Twitter www.twitter.com/aercapnv.

 









AerCap HoldingsNV







Unaudited Consolidated Balance Sheets







(U.S. Dollars in thousands)
















December 31,
2021


December 31,
2020










Assets







Cash and cash equivalents


$1,728,794


$1,248,772



Restricted cash


185,959


246,518



Trade receivables


181,455


170,675



Flight equipment held for operating leases, net


57,825,056


35,156,450



Investment in finance leases, net


1,929,220


878,451



Flight equipment held for sale


304,362




Prepayments on flight equipment


4,586,848


2,111,659



Maintenance rights and lease premium, net


4,444,520


649,914



Other intangibles, net


208,879


224,634



Deferred tax assets


121,571


131,532



Associated companies


705,087


122,654



Other assets


2,348,017


1,106,780



Total Assets


$74,569,768


$42,048,039

















Liabilities and Equity







Accounts payable, accrued expenses and other liabilities


$1,958,096


$1,109,325



Accrued maintenance liability


2,900,651


1,750,395



Lessee deposit liability


773,753


600,321



Debt


50,204,678


28,742,081



Deferred tax liabilities


2,085,230


913,431



Total liabilities


57,922,408


33,115,553










Ordinary share capital €0.01 par value, 450,000,000 and 350,000,000 ordinary shares authorized as of December 31,







2021 and 2020, respectively; 250,347,345 and 138,847,345 ordinary shares issued and 245,395,448 and







130,598,538 ordinary shares outstanding (including 5,822,811 and 2,552,346 unvested restricted stock) as of







December 31, 2021 and 2020, respectively


3,024


1,721



Additional paid-in capital


8,522,694


2,078,125



Treasury shares, at cost (4,951,897 and 8,448,807 ordinary shares as of December 31, 2021 and 2020, respectively)


(285,901)


(459,994)



Accumulated other comprehensive loss


(79,335)


(155,085)



Accumulated retained earnings


8,410,261


7,399,703



Total AerCap Holdings N.V. shareholders' equity


16,570,743


8,864,470



Non-controlling interest


76,617


68,016



Total Equity


16,647,360


8,932,486










Total Liabilities and Equity


$74,569,768


$42,048,039









 













AerCap HoldingsNV











Unaudited Consolidated Income Statements











(U.S. Dollars in thousands, except share and per share data)
























Three months ended December 31,


Year ended December 31,





2021


2020


2021


2020














Revenues and other income











Lease revenue:











Basic rents


$1,283,115


$885,333


$3,891,089


$3,761,611



Maintenance rents and other receipts


96,662


110,143


520,914


559,395



Lease revenue


1,379,777


995,476


4,412,003


4,321,006



Net gain on sale of assets


24,547


14,099


89,428


89,618



Other income


37,857


22,042


722,574


83,005



Total Revenues and other income


1,442,181


1,031,617


5,224,005


4,493,629














Expenses











Depreciation and amortization


555,839


401,787


1,737,925


1,645,373



Asset impairment


5,822


26,694


128,409


1,086,983



Interest expense


369,549


310,534


1,230,466


1,248,225



Loss on debt extinguishment


758


75,625


9,713


118,460



Leasing expenses


161,961


91,453


319,022


323,535



Selling, general and administrative expenses


119,269


63,746


317,888


242,161



Transaction and integration-related expenses


139,432



334,966




Total Expenses


1,352,630


969,839


4,078,389


4,664,737














Gain (loss) on investment at fair value


2,608


(29,089)


2,301


(143,510)














Income (loss) before income taxes and income of investments











 accounted for under the equity method


92,159


32,689


1,147,917


(314,618)














Income tax (expense) benefit


(20,010)


(7,080)


(162,537)


17,231



Equity in net earnings of investments accounted for under the equity method


18,348


2,861


24,051


2,464














Net income (loss)


$90,497


$28,470


$1,009,431


($294,923)














Net loss (income) attributable to non-controlling interest


(1,687)


8


(8,924)


(3,643)














Net income (loss) attributable to AerCap Holdings N.V.


$88,810


$28,478


$1,000,507


($298,566)














Basic earnings (loss) per share


$0.44


$0.22


$6.83


($2.34)



Diluted earnings (loss) per share


$0.44


$0.22


$6.71


($2.34)














Weighted average shares outstanding - basic


200,825,881


127,662,360


146,421,188


127,743,828



Weighted average shares outstanding - diluted


203,641,504


128,840,968


149,005,981


127,743,828













 









AerCap HoldingsNV







Unaudited Consolidated Statements of Cash Flows







(U.S. Dollars in thousands)
















Year ended December 31,





2021


2020










Net income (loss)


$1,009,431


($294,923)



Adjustments to reconcile net income (loss) to net cash provided by operating activities:







Depreciation and amortization


1,737,925


1,645,373



Asset impairment


128,409


1,086,983



Amortization of debt issuance costs, debt discount, debt premium and lease premium


113,981


64,970



Amortization of fair value adjustment on debt


(16,977)


(47,279)



Maintenance rights write-off


138,780


133,015



Maintenance liability release to income


(273,146)


(344,210)



Net gain on sale of assets


(89,428)


(89,618)



Deferred tax benefit


(5,905)


(20,882)



Share-based compensation


96,087


69,187



Collections of finance leases


124,325


68,128



(Gain) loss on investment at fair value


(2,301)


143,510



Loss on debt extinguishment


9,713


118,460



Transaction and integration-related expenses


186,474




Other


61,212


252,350



 Changes in operating assets and liabilities:







   Trade receivables


232,119


(128,188)



   Other assets


112,790


(400,316)



   Accounts payable, accrued expenses and other liabilities


130,333


(126,177)



Net cash provided by operating activities


3,693,822


2,130,383










Purchase of flight equipment


(1,703,395)


(778,547)



Proceeds from sale or disposal of assets


796,613


471,437



Prepayments on flight equipment


(86,386)


(405,178)



Acquisition of GECAS, net of cash acquired


(22,493,195)




Other


27,427




Net cash used in investing activities


(23,458,936)


(712,288)










Issuance of debt


26,496,660


10,946,333



Repayment of debt


(5,973,508)


(11,560,015)



Debt issuance and extinguishment costs paid, net of debt premium received


(422,260)


(253,806)



Maintenance payments received


448,516


345,699



Maintenance payments returned


(209,087)


(412,492)



Security deposits received


210,781


137,130



Security deposits returned


(290,758)


(297,469)



Dividend paid to non-controlling interest holders and others


(323)


(2,935)



Repurchase of shares and tax withholdings on share-based compensation


(76,220)


(127,777)



Net cash provided by (used in) financing activities


20,183,801


(1,225,332)










Net increase in cash, cash equivalents and restricted cash


418,687


192,763



Effect of exchange rate changes on cash, cash equivalents and restricted cash


776


2,180



Cash, cash equivalents and restricted cash at beginning of period


1,495,290


1,300,347



Cash, cash equivalents and restricted cash at end of period


$1,914,753


$1,495,290









 

 

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