Fly Leasing (FLY) Tops Q2 EPS by 49c

Fly Leasing (NYSE: FLY) reported Q2 EPS of $1.92, $0.49 better than the analyst estimate of $1.43. Revenue for the quarter came in at $147.03 million versus the consensus estimate of $140.66 million.

Highlights

• Net income of $54.1 million, $1.68 per share
• Adjusted Net Income of $61.9 million, $1.92 per share
• Sold seven aircraft for an economic gain of $18.9 million, a 10% premium to book value
• Repurchased 1.47 million shares at an average price of $16.53 per share
• $24.28 book value per share at quarter end, a 13% increase since December 31, 2018
• Purchased two aircraft for $60.9 million

"FLY continues to achieve record results, producing its fifth straight quarter of double-digit ROE," said Colm Barrington, FLY's Chief Executive Officer. "Our renewed fleet contributed to a 13% increase in operating lease rental revenue compared to the same quarter last year. Economic gains of nearly $19 million from the sale of seven aircraft helped us to achieve record Adjusted Net Income of $61.9 million, or $1.92 per share, in the quarter, and Adjusted Net Income of $109.0 million, or $3.37 per share, for the first six months of the year. Looking ahead, we expect another strong result in the third quarter."

"As a result of our deleveraging strategy following last year's major fleet acquisition, we have met our leverage target a year ahead of schedule," said Barrington. "We also have been repurchasing stock, buying back 1.47 million shares in the quarter. FLY will begin taking delivery of its $1 billion of contracted A320neo family aircraft later this year, and is well positioned to add aircraft as opportunities arise."

"We sold seven aircraft in the quarter at a 10% premium to book value, and in the third quarter, we have contracted to sell 14 more aircraft, also at gains, again demonstrating the value embedded in FLY's fleet," added Barrington. "Our record results have also added significantly to shareholders' equity, which is now over $24 per share and 13% above the level at the end of 2018. We continue to see great value in FLY's shares, which are trading at a 26% discount to book value. At its August meeting, FLY's board of directors authorized a new $50 million share repurchase program."

For earnings history and earnings-related data on Fly Leasing (FLY) click here.

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