Dublin, Ireland, February 25, 2021 – Fly Leasing Limited (NYSE: FLY) (“FLY”), a global leader in aircraft leasing, today announced its financial results for the fourth quarter and full year of2020.
Fourth Quarter 2020 Highlights
· 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.”
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.
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.
At December 31, 2020, FLY had 84 aircraft and seven engines in its portfolio. FLY's aircraft and engines are on lease to 37 airlines in 23 countries. The table below does not include the engines.
Dec. 31, 2020
Dec. 31, 2019
% of Net Book Value
% of Net Book Value
Airbus A320ceo Family
Airbus A320neo Family
Boeing 737 MAX
(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.
At December 31, 2020, the average age of the portfolio, weighted by net book value of each aircraft and engine, was 8.4 years. The average remaining lease term was 4.7 years, also weighted by net book value. At December 31, 2020, FLY's portfolio had contracted annualized rental revenue of approximately $307 million.