Babcock & Brown Air Reports First Quarter 2009 Results
First Quarter Highlights
- Net income of
$47.0 million , EPS of$1.45 - Available Cash Flow of
$35.3 million ,$1.09 per share - Purchased
$100 million principal amount of notes payable for$48.7 million - Unrestricted Cash of
$34.5 million at quarter end - Repurchased 2.2 million shares after
March 31st - First Quarter Dividend of
$0.20 per share declared onApril 15th
“The highlight of our first quarter was the purchase of
“Despite difficult airline market conditions, our portfolio of 62 aircraft continues to generate stable income and cash flow,” added Barrington. “All of our aircraft are currently on or committed to leases. After the debt purchase we ended the quarter with
First Quarter 2009 Financial Results
B&B Air’s net income and basic and diluted earnings per share for the first quarter of 2009 were
Operating lease revenue for the first quarter of 2009 was
Total expenses in the first quarter of 2009 were
Depreciation expense in the first quarter of 2009 was
Interest expense in the first quarter of 2009 was
Selling, general and administrative expenses were
The provision for income taxes was
Available Cash Flow
Available Cash Flow (“ACF”), which B&B Air defines as net income plus depreciation, lease incentive amortization, amortization of debt issue costs and the deferred tax provision, was
ACF should be used as a supplement to and not as a substitute for financial measures determined in accordance with Generally Accepted Accounting Principles in
Dividend and Share Repurchases
On
Subsequent to
Financial Position
At
Aircraft Portfolio
During the first quarter of 2009, B&B Air’s utilization factor was 97%. At
The table below shows the aircraft in B&B Air’s initial portfolio and the portfolios on
Portfolio On Oct 2, 2007 Mar 31, 2008 Dec 31, 2008 Mar 31, 2009
Airbus A319 5 10 10 10
Airbus A320 16 17 17 17
Airbus A330 - 1 1 1
Boeing 737 16 17 19 19
Boeing 747 - 1 1 1
Boeing 757 9 11 12 12
Boeing 767 1 1 1 1
Boeing 777 - 1 1 1
Total 47 59 62 62
On
Conference Call and Webcast
B&B Air’s senior management will host a conference call and webcast to discuss these results at
Participants should call +1-706-643-7953 (International) or 866-696-7906 (
A live webcast of the conference call will be also available in the investor section of B&B Air’s website at www.babcockbrownair.com. An archived webcast will be available for one year.
About B&B Air
B&B Air acquires and leases modern, high-demand and fuel-efficient commercial jet aircraft under multi-year operating lease contracts to a diverse group of airlines throughout the world. B&B Air is managed and serviced by Babcock & Brown Aircraft Management (“BBAM”), the world’s fourth largest aircraft lessor. For more information about B&B Air, please visit our website at www.babcockbrownair.com.
Cautionary Statement Regarding Forward-Looking Statements
This press release contains certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by words such as “expects,” “intends,” “anticipates,” “plans,” “believes,” “seeks,” “estimates,” “will,” or words of similar meaning and include, but are not limited to, statements regarding the outlook for B&B Air’s future business and financial performance. Forward-looking statements are based on management’s current expectations and assumptions, which are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Actual outcomes and results may differ materially due to global political, economic, business, competitive, market, regulatory and other factors and risks. B&B Air expressly disclaims any obligation to update or revise any of these forward-looking statements, whether because of future events, new information, a change in its views or expectations, or otherwise.
Babcock & Brown Air Limited
Consolidated Statements of Operations
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)
Three months Three months
ended ended
March 31, 2008 March 31, 2009
(Unaudited) (Unaudited)
Revenues
Operating lease revenue $48,388 $53,380
Finance lease income 2,446 -
Gain on purchase of notes payable - 48,980
Lease termination settlement - 6,475
Interest and other income 1,111 245
Total revenues 51,945 109,080
Expenses
Depreciation 15,045 20,605
Interest expense 17,939 20,641
Selling, general and administrative 5,044 6,168
Maintenance and other costs 439 688
Total expenses 38,467 48,102
Net income before provision for income
taxes 13,478 60,978
Provision for income taxes 1,794 14,027
Net income $11,684 $46,951
Weighted average number of shares -
basic and diluted 33,603,450 32,488,911
Earnings per share - basic and diluted $0.35 $1.45
Dividends declared and paid per share $0.50 $0.20
Babcock & Brown Air Limited
Consolidated Balance Sheets
(DOLLARS IN THOUSANDS, EXCEPT PAR VALUE DATA)
December 31, March 31, 2009
2008
(Audited) (Unaudited)
Assets
Cash and cash equivalents $56,763 $34,469
Restricted cash and cash equivalents 113,658 119,887
Rent receivables 4,148 4,981
Flight equipment held for operating
lease, net 1,830,612 1,810,189
Deferred tax asset, net 40,734 25,690
Fair market value of derivative asset 2,368 2,818
Other assets, net 37,891 29,292
Total assets 2,086,174 2,027,326
Liabilities
Accounts payable and accrued
liabilities 13,809 8,542
Rentals received in advance 9,476 9,209
Payable to related parties 2,728 1,934
Security deposits 35,664 35,713
Maintenance payment liability 88,526 95,034
Notes payable, net 826,301 726,626
Borrowings under aircraft acquisition
facility 597,471 597,471
Fair market value of derivative
liabilities 113,374 105,593
Other liabilities 9,412 9,991
Total liabilities 1,696,761 1,590,113
Shareholders' equity
Common shares, $0.001 par value;
499,999,900 shares authorized;
32,488,911 shares issued and
outstanding at December 31, 2008 and
March 31, 2009 32 32
Manager shares, $0.001 par value; 100
shares authorized, issued and
outstanding − −
Additional paid-in capital 499,882 499,882
Retained earnings (deficit) (16,584) 23,869
Accumulated other comprehensive loss,
net (93,917) (86,570)
Total shareholders' equity 389,413 437,213
Total liabilities and shareholders'
equity $2,086,174 $2,027,326
Babcock & Brown Air Limited
Reconciliation of Available Cash Flow, a Non-GAAP Financial Measure to
Net Income
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)
Three months Three months
ended ended
March 31, March 31,
2008 2009
(Unaudited) (Unaudited)
----------- -----------
Net income $11,684 $46,951
Add (less):
Depreciation 15,045 20,605
Amortization of lease incentives − 1,059
Amortization of debt issuance costs 1,515 1,715
Gain on purchase of notes payable − (48,980)
Provision for deferred income taxes 1,608 13,994
----- ------
Available cash flow $29,852 $35,344
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Weighted average share outstanding 33,603,450 32,488,911
Available cash flow per share $0.89 $1.09
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B&B Air defines Available Cash Flow (“ACF”) as net income plus depreciation, amortization of lease incentives and debt issue costs, and provision for deferred income taxes. In addition, gain on purchase of notes payable is excluded from ACF. B&B Air’s definition of ACF may not be consistent with similar definitions used by other companies. The reconciliation above compares ACF to net income computed in accordance with Generally Accepted Accounting Principles in
Contact:
Matt Dallas
Babcock & Brown
+ 1-212-796-3918
matt.dallas@babcockbrown.com
SOURCE Babcock & Brown Air Limited