Fly Leasing Reports Third Quarter 2020 Financial Results

Dublin, Ireland, November 12, 2020 – Fly Leasing Limited (NYSE: FLY) (“FLY”), a global leader in aircraft leasing, today announced its financial results for the third quarter of 2020.

Highlights

·         Net loss of $8.1 million, $0.26 loss per share

·         2.1x net debt to equity

·         $285.1 million of unrestricted cash and cash equivalents at quarter end

·         New $180.0 million five-year senior secured term loan closed in October

“Despite the challenges of the COVID-19 pandemic, we are encouraged by improved domestic air travel demand in the quarter and the recent news of successful vaccine trials, which we believe will drive a recovery in air travel demand in 2021,” said Colm Barrington, Chief Executive Officer of FLY. “Total cash collected improved from the prior quarter and we have begun to receive repayment of some deferred rents. A number of our lessees have received government support, which is helping the airlines meet their payment obligations.”

“To buttress the balance sheet, we recently raised a new $180 million term loan,” said Barrington. “FLY continues to have a historically low debt to equity ratio, no orders for aircraft or other capital commitments and no significant near-term refinancing requirements. FLY also benefits from BBAM’s decades of experience and expertise in navigating industry cycles, which is a truly invaluable resource at this time.”

Financial Results

FLY is reporting a net loss of $8.1 million, or $0.26 per share, for the third quarter of2020. This compares to net income of $51.7 million, or $1.67 per share, for the same period in 2019. The decrease in net income is primarily due to the non-recognition of revenue for certain lessees and no aircraft sales in the current quarter.

Net income for the nine months ended September 30, 2020 was $39.6 million, or $1.30 per share, compared to net income of $150.7 million, or $4.72 per share, for the nine months ended September 30, 2019.

Adjusted Net Income

Adjusted Net Loss was $9.0 million for the third quarter of 2020, compared to Adjusted Net Income of $59.8 million for the same period in the previous year. On a per share basis, Adjusted Net Loss was $0.30 in the third quarter of 2020, compared to Adjusted Net Income of  $1.93 for the third quarter of 2019.

For the nine months ended September 30, 2020, Adjusted Net Income was $45.9 million, or $1.50 per share, compared to $168.9 million, or $5.28 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 September 30, 2020, FLY’s total assets were $3.5 billion, including investment in flight equipment totaling $3.0 billion. Total cash at September 30, 2020 was $307.5 million, of which $285.1 million was unrestricted. The book value per share at September 30, 2020 was $29.28. At September 30, 2020, FLY's net debt to equity ratio was 2.1x, compared to 2.3x at December 31, 2019.

2020 Term Loan

On October 15, 2020, FLY closed a new $180 million Term Loan to be secured by 11 narrowbody aircraft. The proceeds will be used for general corporate purposes, including the repayment of debt.

Aircraft Portfolio

At September 30, 2020, FLY had 86 aircraft and seven engines in its portfolio. FLY's aircraft and engines are on lease to 39 airlines in 24 countries. The table below does not include the engines.

At September 30, 2020, the average age of the portfolio, weighted by net book value of each aircraft and engine, was 8.3 years. The average remaining lease term was 4.9 years, also weighted by net book value. At September 30, 2020, FLY's portfolio had contracted annualized rental revenue of approximately $316 million.