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News Updates: Fly Leasing Ltd (ADR) (NYSE:FLY)

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On Thursday, Shares of Fly Leasing Ltd (ADR)(NYSE:FLY), gains 0.40 percent and now trading at $12.62 in the current trading session. The current trading range of the stock ranges between $11.91 and $12.72.

FLY Leasing Limited (NYSE: FLY) (“FLY”), a worldwide lessor of modern, fuel-efficient commercial jet aircraft, recently declared its financial results for the 1st– quarter of 2017.

Highlights:

  • Net income of $5.10M, $0.160 per share
  • Adjusted Net Income of $11.10M, $0.340 per share
  • Repurchased $8.50M in shares as of May 10
  • Committed to nearly $300.00M in acquisitions
  • Repriced, extended and upsized Term Loan to $450.00M

“FLY is moving from a year of very active aircraft sales to focusing on deploying our noteworthy cash reserves,” said Colm Barrington, CEO of FLY. “Following quarter end, we have committed to nearly $300.00M of aircraft purchases. FLY has financial resources to acquire up to $2.50B of additional aircraft and to continue to repurchase our shares. We imagine these future aircraft acquisitions to have a material positive impact on our earnings.”

“FLY has repurchased $8.50M in shares at a noteworthydiscount to net book value through May 10,” added Barrington. “We have approximately $58.00M remaining in our present share repurchase authorization.”

“We repriced, extended and upsized our Term Loan to $450.00M in April, which will save approximately $2.00M in annual interest expense,” added Barrington. “This transaction demonstrates FLY’s continuing access to robust capital markets, and improves its already strong financial position.”

Financial Results:

FLY is reporting net income for the first quarter of 2017 of $5.10M, or $0.160 per diluted share.  This compares to net income of $7.10M, or $0.210 per diluted share, for the same period in 2016.

Adjusted Net Income:

Adjusted Net Income was $11.10M for the first quarter of 2017 contrast to $16.20M in the same period in the preceding year.  On a per share basis, Adjusted Net Income was $0.340 in the first quarter of 2017 contrast to $0.470 for the similar period in the earlier year.

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

Share Repurchases:

During the first quarter of 2017, 99,524.00 shares were repurchased at an average expenditure of $12.95.00 per share.  At March 31, 2017, approximately $65.40M remained accessible under the share repurchase program.  Subsequent to quarter end, another 560,858.00 shares were repurchased at an average cost of $12.830.  These share prices are well below FLY’s book value per share of $18.620 at March 31, 2017. As of May 10, 2017, approximately $58.00M remained accessible under the share repurchase program.

Financial Position:

At March 31, 2017, FLY’s total assets were $3.40 billion, counting an investment in flight equipment totaling $2.80 billion. Total cash at March 31, 2017 was $606.10M, of which $536.90M was unrestricted.

Aircraft Portfolio:

At March 31, 2017, FLY’s 76.00 aircraft, as shown in the table below, were on lease to 42.00 airlines in 28.00 countries.  The table does not show the two B767 aircraft owned by a joint venture in which FLY has a 57.00 percent ownership.

At March 31, 2017, the average age of the portfolio was 6.4 years weighted by the net book value of each aircraft. The average remaining lease term was 6.6 years, also weighted by net book value. At March 31, 2017, FLY’s leases were generating annualized rental revenue of approximately $325.00M.

Conference Call and Webcast:

FLY’s senior administration will host a conference/meeting call and webcast to talk approximately these results at 9:00 a.m. U.S. Eastern Time on Thursday, May 11, 2017. members should dial +1-253-237-1145 (global) or 800-535-7056 (North America) and enter confirmation code 94532798 or ask an operator for the FLY Leasing earnings call. A live webcast of the conference/discussion call will be also accessible in the investor relations section of FLY’s website. An archived webcast will be accessible on FLY’s website for one year.

Analyst recommendation for this stock stands at 2.10.