omniture

AerCap Holdings N.V. Reports Third Quarter 2010 Financial Results

2010-11-05 21:09 5777
Net spread, which is the margin earned on our leased assets, was $171.8 million for the third quarter of 2010, an increase of 50% over third quarter 2009

AMSTERDAM, Nov. 5, 2010 /PRNewswire-Asia/ -- 

AerCap Holdings N.V. (the "Company" or "AerCap") (NYSE: AER) today announced the results of its operations for the third quarter ended September 30, 2010.

Third Quarter 2010 Highlights

    
    --  Third quarter 2010 basic and diluted earnings per share were $0.43,
        compared with $0.42 for the same period in 2009. Third quarter 2010 
        basic and diluted earnings per share excluding the impact of the 
        mark-to-market of interest rate caps and share-based compensation 
        were $0.51, compared with $0.46 in the third quarter 2009 on the same 
        basis. 
    --  Third quarter 2010 net income was $51.9 million, compared with net 
        income of $35.5 million for the same period in 2009. Third quarter 
        2010 net income excluding the impact of the mark-to-market of 
        interest rate caps and share-based compensation was $61.1 million, 
        compared with $39.2 million in the third quarter 2009 on the same 
        basis.
    --  Net spread, the difference between basic lease rents and interest 
        expense excluding the impact from the mark-to-market of interest 
        rate caps, was $171.8 million in the third quarter of 2010 compared 
        to $114.6 million in the third quarter of 2009, an increase of 50%. 
        This measure reflects the increase in leasing income and excludes 
        income derived from the sale of aircraft.
    --  Basic lease rents for the third quarter of 2010 were $233.9 million, 
        compared to $142.4 million for the same period in 2009, an increase 
        of 64%. Total lease revenue (basic rents, maintenance rents and 
        end-of-lease compensation) for the third quarter of 2010 was 
        $254.0 million, compared to $153.8 million for the same period in 
        2009, an increase of 65%.
    --  Sales revenue for the third quarter 2010 was $218.2 million, 
        compared to $49.0 million for the same period in 2009, and was 
        generated from the sale of three aircraft, five engines and parts 
        inventory. 
    --  Total revenue for the third quarter of 2010 was $478.1 million, 
        compared to $212.5 million for the same period in 2009. The increase 
        was mainly due to the increase in sales revenue and an increase in 
        lease revenue which was primarily driven by the all-share acquisition 
        of Genesis Lease Limited ("the Genesis Transaction") which occurred 
        in March 2010 and the deliveries of forward order aircraft.
    --  Total assets were $9.3 billion at September 30, 2010, an increase of 
        46% over total assets of $6.4 billion at September 30, 2009. The 
        Genesis Transaction accounted for $1.5 billion of the increase in 
        total assets.  The remaining $1.4 billion increase was driven 
        primarily by deliveries of forward order aircraft.
    --  Committed purchases of aviation assets delivered or scheduled for 
        delivery in 2010 are $2.5 billion, of which $2.4 billion closed in 
        the nine month period ended September 30, 2010. 


Klaus Heinemann, CEO of AerCap, commented: "The end of the third quarter 2010 marks the completion of the largest expansion program in AerCap's history. Lease assets increased by 67% to $7.97 billion compared to the end of the same quarter last year. This growth was achieved with solid equity support. AerCap's total equity reached $1.98 billion by quarter end, and we were able to achieve this without dilution of earnings per share.  Third quarter earnings per share were 51 cents on an adjusted basis compared to 46 cents for the same quarter last year.  This strong financial performance coupled with the recent addition of Waha Leasing to the AerCap family positions the Company for continued long term success." 

AerCap's CFO, Keith Helming, said: "The 125% increase in total revenue, 50% growth in net spread and the consequent 46% increase in net income in the third quarter 2010 compared to the same period in 2009 further underlines our ability to deliver profitable growth.  The increase in these key metrics was mainly due to the completion of the Genesis Transaction and the deliveries of our forward order aircraft.  In addition, our liquidity position continues to be strong as demonstrated by the $520 million of cash on hand at the end of September." 


Summary of Financial Results

The Genesis Transaction which was completed on March 25, 2010 is fully reflected in all AerCap Holdings N.V. second and third quarter 2010 consolidated financial statements. The Genesis Transaction was not included in the AerCap Holdings N.V. first quarter 2010 income statement (including the number of outstanding shares used for earnings per share calculations) other than one line item reflecting a $0.3 million amalgamation gain (net of transaction expenses and tax). The impact of the Genesis Transaction was also reflected in one line item in the AerCap Holdings N.V. first quarter 2010 consolidated cash flow statement (purchase of subsidiaries, net of cash acquired).

AerCap recorded third quarter 2010 net income of $51.9 million or $0.43 earnings per basic and diluted share. Third quarter 2010 net income included net charges relating to mark-to-market of interest rate caps and share-based compensation of $9.2 million or $0.08 per basic and diluted share, net of tax. The after-tax charge relating to the mark-to-market of our interest rate caps was $9.0 million reflecting changes in forecasted interest rates. The after-tax charge from share-based compensation was $0.2 million.

Detailed Financial Data
($ in Millions)

Operating results

                                Three months ended
                                   September 30,
                                   -------------
                                                   % increase/
                           2010           2009      (decrease)
                           ----           ----      -----------

Revenues                 $478.1         $212.5              125%
Net income                 51.9           35.5               46%
Net income excluding the
 impact of mark-to-
 market of interest rate
 caps and share-based
 compensation              61.1           39.2               56%






                                   Nine months ended
                                     September 30,
                                     -------------

                                                           %
                                                       increase/
                              2010         2009        (decrease)
                            ----         ----         ----------

Revenues                  $1,436.8       $715.7               101%
Net income                   135.1        122.0                11%
Net income excluding the
 impact of mark-to-
 market of interest rate
 caps and share-based
 compensation                167.4        109.9                52%


Total revenue in the third quarter of 2010 increased 125% compared to the third quarter of 2009. This increase resulted primarily from an increase in sales revenue and basic lease rents driven by the additional aircraft acquired in the Genesis Transaction and the deliveries of forward order aircraft. For similar reasons, net income excluding the impact of mark-to-market of interest rate caps and share-based compensation increased by 56%. 

Revenue breakdown


                                        Three months ended
                                           September 30,
                                           -------------
                                                            % increase/
                                   2010           2009       (decrease)
                                   ----           ----     ------------

Lease revenue:
   Basic lease rents             $233.9         $142.4               64%
   Maintenance rents               20.1           10.4               93%
   End-of-lease compensation and
    other receipts                    -            1.0            (100%)
                                    ---            ---           ------
Lease revenue                    $254.0         $153.8               65%
Sales revenue                     218.2           49.0              345%
Management fees and interest
 income                             3.8            5.3             (28%)
Other revenue                       2.1            4.4             (52%)
Total revenue                    $478.1         $212.5              125%
                                 ======         ======              ===



                                          Nine months ended
                                            September 30,
                                            -------------

                                                                 %
                                                             increase/
                                     2010         2009       (decrease)
                                  ----          ----        ----------

Lease revenue:
   Basic lease rents               $633.2       $425.2               49%
   Maintenance rents                 56.8         49.9               14%
   End-of-lease compensation and
    other receipts                      -          9.7            (100%)
                                      ---          ---           ------
Lease revenue                      $690.0       $484.8               42%
Sales revenue                       728.8        208.6              249%
Management fees and interest
 income                              11.7         17.0             (31%)
Other revenue                         6.3          5.2               21%
Total revenue                    $1,436.8       $715.6              101%
                                 ========       ======              ===



Basic lease rents were $233.9 million for the third quarter of 2010, an increase of 64% compared to the third quarter of 2009, as a result of our growing asset base. Our average lease assets increased by 70% to $7.8 billion compared to the third quarter of 2009. As shown in the table below, interest expense excluding the impact of the mark-to-market of interest rate caps was $62.1 million in the third quarter of 2010, an increase of $34.3 million over the same period in 2009. The increase was primarily driven by the Genesis Transaction ($15.0 million) and the increase in our lease portfolio from the delivery of forward order aircraft. As a result, net spread increased 50% to $171.8 million in the third quarter of 2010 over the same period in 2009.


                                         Three months ended
                                            September 30,
                                            -------------

                                                                 %
                                                             increase/
                                      2010           2009    (decrease)
                                     ----            ----    ----------

Basic lease rents                   $233.9         $142.4            64%

Interest on debt                     $75.1          $32.8           129%
Plus: mark-to-market of interest
 rate caps                           (13.0)          (5.0)          160%
                                     -----           ----           ---
Interest on debt excluding the
 impact of mark-to-market of
 interest rate caps                  $62.1          $27.8           123%

Net Spread                          $171.8         $114.6            50%
                                    ======         ======           ===






                                         Nine months ended
                                           September 30,
                                           -------------

                                                                %
                                                            increase/
                                   2010         2009        (decrease)
                                 ----         ----         ----------

Basic lease rents                $633.2       $425.2                49%

Interest on debt                 $202.1        $68.3               196%
Plus: mark-to-market of interest
 rate caps                        (47.6)        17.2             (377%)
                                  -----         ----            ------
Interest on debt excluding the
 impact of mark-to-market of
 interest rate caps              $154.5        $85.5                81%

Net Spread                       $478.7       $339.7                41%
                                 ======       ======               ===



* The increase in net spread is lower than the increase in basic lease rents as a result of the delivery of new forward order aircraft and the Genesis Transaction. For new aircraft, the net spread is lower at the start of the lease because of higher interest expenses resulting from a higher loan to value. 

Effective tax rate

AerCap's blended effective tax rate during the nine month period ended September 30, 2010 was 9.0% (charge), consisting of 9.3% (charge) for AerCap's aircraft business and 29.8% (income) for AerCap's engine and parts business. The blended effective tax rate in 2009 was 1.9% (charge). The blended effective tax rate in any year is impacted by the source and the amount of earnings among AerCap's different tax jurisdictions.  The increase in the 2010 blended tax rate as compared to 2009 is the result of having more earnings generated from higher tax rate jurisdictions. 

Financial position


                      September 30, September 30, % Increase over
                               2010          2009    September 30,
                                                         2009
                               ----          ----        ----

Total cash (incl.
 restricted).                $519.7        $324.4         60%
Flight equipment held
 for lease                  7,974.1       4,761.9         67%
Total assets                9,338.6       6,417.6         46%
Total liabilities           7,358.1       5,082.9         45%
Total equity                1,980.5       1,334.8         48%



As of September 30, 2010, AerCap's portfolio consisted of 324 aircraft and 83 engines that were either owned, on order, under contract or letter of intent, or managed. This includes aircraft that AerCap added through the Genesis Transaction in March 2010. 

 
Notes Regarding Financial Information Presented In This Press Release

The financial information presented in this press release is not audited.

The following is a definition of non-GAAP measures used in this press release and a reconciliation of such measure to the most closely related GAAP measure:

Net income excluding the impact of mark-to-market of interest rate caps and share-based compensation. This measure is determined by adding non-cash charges related to the mark-to-market losses on our interest rate caps and share based compensation during the applicable period, net of related tax benefits, to GAAP net income. In addition to GAAP net income, we believe this measure may provide investors with supplemental information regarding our operational performance and may further assist investors in their understanding of our operational performance in relation to past and future reporting periods. We use interest rate caps to allow us to benefit from decreasing interest rates and protect against the negative impact of rising interest rates on our floating rate debt. Management determines the appropriate level of caps in any period with reference to the mix of floating and fixed cash inflows from our lease and other contracts. We do not apply hedge accounting to our interest rate caps. As a result, we recognize the change in fair value of the interest rate caps in our income statement during each period. Following is a reconciliation of net income excluding the impact of mark-to-market of interest rate caps and share-based compensation to net income for the three and nine month periods ended September 30, 2010 and 2009:


                                           Three months ended
                                              September 30,
                                              -------------

                                                                   %
                                                               increase/
                                         2010          2009    (decrease)
                                        ----           ----    ----------

Net income                              $51.9         $35.5           46%
Plus: mark-to-market of
 interest rate caps, net
 of tax                                   9.0           3.0         (200%)
           share-based
            compensation, net of tax      0.2           0.7          (71%)
Net income excluding the
 impact of mark-to-
 market of interest rate
 caps and share-based
 compensation                           $61.1         $39.2            56%
                                        =====         =====           ===


                                            Nine months ended
                                              September 30,
                                              -------------

                                                                   %
                                                               increase/
                                       2010        2009        (decrease)
                                       ----        ----        ----------

Net income                           $135.1      $122.0               11%
Plus: mark-to-market of
 interest rate caps, net of
 tax                                   30.8       (14.5)             312%
           share-based compensation,
            net of tax                  1.5         2.4              (38%)
Net income excluding the
 impact of mark-to-market
 of interest rate caps and
 share-based compensation            $167.4      $109.9               52%
                                     ======      ======               ===


Earnings per share excluding the impact of mark-to-market of interest rate caps and share-based compensation are determined by dividing the amount of net income excluding such impact by the average number of shares outstanding for that period. The average number of shares is based on a daily average.

Net spread (refer to third table under Revenue breakdown section of this press release). This measure is the difference between basic lease rents and interest expense excluding the impact from the mark-to-market of interest rate caps and non-recurring charges.  We believe this measure may further assist investors in their understanding of the changes and trends related to the earnings of our leasing activities.  This measure reflects the impact from changes in the number of aircraft leased, lease rates, utilization rates, as well as the impact from the use of interest rate caps instead of swaps to hedge our interest rate risk. The reconciliation of net spread to basic lease rents for the three and nine month periods ended September 30, 2010 and 2009 is included above.

Conference Call

In connection with the earnings release, management will host an earnings conference call today, Friday, November 5, 2010 at 9:30 am Eastern Time / 2:30 pm Central European Time. The call can be accessed live by dialing (U.S./Canada) 1-866-239-0753 or (International) +31-20-713-2998 and referencing code 7436381 at least 5 minutes before start time, or by visiting AerCap's website at http://www.aercap.com under "Investor Relations."

The presentation slides for the conference call will be posted on AerCap's website in advance of the call. The webcast replay will be archived in the "Investor Relations" section of the company's website for one year.

In addition, a New York Group Lunch Presentation for investors and analysts will be hosted by AerCap's management today, Friday, November 5, 2010, at 12:30 pm Eastern Time at The New York Palace (the Henry Room), 455 Madison Avenue, New York. Doors will open at 12:00 pm.

To participate in either event, please register at: http://www.sharedvalue.net/aercap/Q310 

For further information, contact Peter Wortel: +31-20-655-9658 (pwortel@aercap.com)
or Mark Walter (Shared Value): +44-(0)20-7321-5039 (aercap@sharedvalue.net).

About AerCap Holdings N.V.

AerCap is the world's leading independent aircraft leasing company. AerCap also provides engine leasing, aircraft management services, aircraft maintenance, repair and overhaul services and aircraft disassemblies. AerCap is headquartered in The Netherlands and has offices in Ireland, the United States, Singapore, China and the United Kingdom.

Forward Looking Statements

This press release contains certain statements, estimates and forecasts with respect to future performance and events. These statements, estimates and forecasts are "forward-looking statements." In some cases, forward-looking statements can be identified by the use of forward-looking terminology such as "may," "might," "should," "expect," "plan," "intend," "estimate," "anticipate," "believe," "predict," "potential" or "continue" or the negatives thereof or variations thereon or similar terminology. All statements other than statements of historical fact included in this press release are forward-looking statements and are based on various underlying assumptions and expectations and are subject to known and unknown risks, uncertainties and assumptions, may include projections of our future financial performance based on our growth strategies and anticipated trends in our business. These statements are only predictions based on our current expectations and projections about future events. There are important factors that could cause our actual results, level of activity performance or achievements to differ materially from the results, level of activity, performance or achievements expressed or implied in the forward-looking statements. As a result, there can be no assurance that the forward-looking statements included in this press release will prove to be accurate or correct. In light of these risks, uncertainties and assumptions, the future performance or events described in the forward-looking statements in this press release might not occur. Accordingly, you should not rely upon forward-looking statements as a prediction of actual results and we do not assume any responsibility for the accuracy or completeness of any of these forward-looking statements. We do not undertake any obligation to, and will not, update any forward-looking statements, whether as a result of new information, future events or otherwise.

For more information regarding AerCap and to be added to our email distribution list, please visit http://www.aercap.com.


Financial Statements Follow


  AerCap Holdings N.V.
  Consolidated Balance Sheets -Unaudited
  (In thousands of U.S. Dollars)


                                     September 30,     December 31,
                                               2010             2009
                                               ----             ----

 Assets
 Cash and cash equivalents                 $285,763         $182,617
 Restricted cash                            233,954          140,746
 Trade receivables, net of
  provisions                                 60,001           48,070
 Flight equipment held for operating
  leases, net                             7,974,109        5,230,437
 Net investment in direct finance
  leases                                     28,170           34,532
 Notes receivables, net of
  provisions                                  7,939          138,488
 Prepayments on flight equipment            197,616          527,666
 Investments                                 30,774           21,031
 Goodwill                                     6,776            6,776
 Intangibles, net                            64,568           31,399
 Inventory                                  119,097          102,538
 Derivative assets                           23,981           44,866
 Deferred income taxes                      102,117           80,098
 Other assets                               203,715          180,237
 Total Assets                            $9,338,580       $6,769,501
                                         ==========       ==========


 Liabilities and Equity

 Accounts payable                           $17,516          $11,832
 Accrued expenses and other
  liabilities                                98,149           80,399
 Accrued maintenance liability              400,461          228,006
 Lessee deposit liability                   138,316          126,093
 Debt                                     6,562,293  *     4,846,664
 Accrual for onerous contracts               10,917           22,363
 Deferred revenue                            66,106           33,011
 Derivative liabilities                      64,302            7,801
 Total liabilities                        7,358,060        5,356,169

 Share capital                                1,163              699
 Additional paid-in capital                 968,724          593,133
 Accumulated other comprehensive
  income (loss)                                (470)               -
 Retained earnings                          799,309          664,177
 Total AerCap Holdings N.V.
  shareholders' equity                    1,768,726        1,258,009
 Non-controlling interest                   211,794          155,323
                                            -------          -------
 Total Equity                             1,980,520        1,413,332

 Total Liabilities and Equity            $9,338,580       $6,769,501
                                         ==========       ==========

 * Includes $88.0 million of
  subordinated debt received from
  our joint venture partners

 Supplemental information            September 30,     December 31,
                                               2010             2009
                                               ----             ----
 Debt/equity ratio                              3.3              3.4
 Debt/equity ratio (adjusted for
  subordinated debt)                            3.1              3.2


                                        September 30,
                                                  2009
                                                  ----

  Assets
  Cash and cash equivalents                   $203,377
  Restricted cash                              121,067
  Trade receivables, net of
   provisions                                   49,037
  Flight equipment held for operating
   leases, net                               4,761,918
  Net investment in direct finance
   leases                                       34,069
  Notes receivables, net of
   provisions                                  141,628
  Prepayments on flight equipment              632,333
  Investments                                   20,367
  Goodwill                                       6,776
  Intangibles, net                              34,602
  Inventory                                    108,444
  Derivative assets                             38,572
  Deferred income taxes                         80,463
  Other assets                                 184,975
  Total Assets                              $6,417,628
                                            ==========


  Liabilities and Equity

  Accounts payable                             $16,004
  Accrued expenses and other
   liabilities                                  77,591
  Accrued maintenance liability                216,345
  Lessee deposit liability                     113,025
  Debt                                       4,593,268
  Accrual for onerous contracts                 24,378
  Deferred revenue                              33,479
  Derivative liabilities                         8,783
  Total liabilities                          5,082,873

  Share capital                                    699
  Additional paid-in capital                   592,133
  Accumulated other comprehensive
   income (loss)                                     -
  Retained earnings                            621,012
  Total AerCap Holdings N.V.
   shareholders' equity                      1,213,844
  Non-controlling interest                     120,911
                                               -------
  Total Equity                               1,334,755

  Total Liabilities and Equity              $6,417,628
                                            ==========

  * Includes $88.0 million of
   subordinated debt received from
   our joint venture partners

  Supplemental information              September 30,
                                                  2009
                                                  ----
  Debt/equity ratio                                3.4
  Debt/equity ratio (adjusted for
   subordinated debt)                              3.2




  AerCap Holdings N.V.
  Consolidated Income Statements -Unaudited
  (In thousands of U.S. Dollars, except share and per share data)

                                                  Three months ended
                                                     September 30,
                                                   2010            2009
                                                   ----            ----

 Revenues
 Lease revenue                                 $254,008        $153,890
 Sales revenue                                  218,194          49,012
 Interest revenue                                   748           2,433
 Management fee revenue                           3,021           2,821
 Other revenue                                    2,117           4,354
 Total Revenues                                 478,088         212,510

 Expenses
 Depreciation                                    89,946          55,663
 Asset impairment                                 2,761             382
 Cost of goods sold                             202,053          39,973
 Interest on debt                                75,144          32,844
 Operating lease in costs                         3,057           3,268
 Leasing expenses                                17,322          10,648
 Provision for doubtful notes and accounts
  receivable                                        514              55
 Selling, general and administrative
  expenses                                       21,710          27,806
 Other expenses                                       -           1,900
 Total Expenses                                 412,507         172,539

 Income from continuing operations before
  income taxes                                   65,581          39,971

 Provision for income taxes                      (6,144)           (784)
 Amalgamation gain, net of transaction
  expenses and tax                                    -               -

 Net Income                                      59,437          39,187

 Net (income) attributable to non-
  controlling interest                           (7,559)         (3,735)

 Net Income attributable to AerCap Holdings
  N.V.                                          $51,878         $35,452
                                                =======         =======

 Basic and diluted earnings per share             $0.43           $0.42

 Weighted average shares outstanding -
  basic and diluted                         119,386,445      85,036,957


                                                 Nine months ended
                                                   September 30,
                                                   2010            2009
                                                   ----            ----

 Revenues
 Lease revenue                                 $690,013        $484,932
 Sales revenue                                  728,779         208,608
 Interest revenue                                 3,617           7,656
 Management fee revenue                           8,069           9,294
 Other revenue                                    6,319           5,217
 Total Revenues                               1,436,797         715,707

 Expenses
 Depreciation                                   239,920         160,153
 Asset impairment                                 5,482          21,332
 Cost of goods sold                             671,875         179,293
 Interest on debt                               202,075          68,319
 Operating lease in costs                         9,271           9,855
 Leasing expenses                                43,738          51,885
 Provision for doubtful notes and accounts
  receivable                                      1,030             408
 Selling, general and administrative
  expenses                                       86,488          82,796
 Other expenses                                       -           1,900
 Total Expenses                               1,259,879         575,941

 Income from continuing operations before
  income taxes                                  176,918         139,766

 Provision for income taxes                     (15,892)         (3,471)
 Amalgamation gain, net of transaction
  expenses and tax                                  274               -

 Net Income                                     161,300         136,295

 Net (income) attributable to non-
  controlling interest                          (26,168)        (14,293)

 Net Income attributable to AerCap Holdings
  N.V.                                         $135,132        $122,002
                                               ========        ========

 Basic and diluted earnings per share             $1.25           $1.43

 Weighted average shares outstanding -
  basic and diluted                         107,936,616      85,036,957


* The increase of $42.3 million in interest on debt in the third quarter 2010 as compared to the third quarter 2009 was primarily driven by (i) a $8.1 million increase in the mark-to-market on interest rate caps, (ii) a $15.0 million increase from the Genesis Transaction and (iii) the increase in our lease portfolio from the delivery of our forward order aircraft. The same items were also the primary drivers for the increase in the nine month period ended September 30, 2010 as compared to the nine month period ended September 30, 2009. 


  AerCap Holdings N.V.
  Consolidated Statements of Cash Flows -Unaudited
  (In thousands of U.S. Dollars)

                                               Three months ended
                                                  September 30,
                                                2010            2009
                                                ----            ----

 Net income                                   59,437          39,187
 Adjustments to reconcile net income to
  net cash provided by operating
  activities
 Depreciation                                 89,945          55,663
 Asset impairment                              2,761             382
 Amortisation of debt issuance cost            7,347           3,901
 Amortisation of intangibles                   5,930           3,294
 Provision for doubtful notes and
  accounts receivable                            563             587
 Capitalised interest on pre-delivery
  payments                                      (155)           (225)
 Gain on disposal of assets                   (6,798)             21
 Mark-to-market of non-hedged
  derivatives                                 (5,931)          3,862
 Deferred taxes                                6,007             724
 Share-based compensation                         99             912
 Changes in assets and liabilities
    Trade receivables and notes receivable,
     net                                      (9,459)        (11,378)
    Inventories                                2,885          35,867
    Other assets and derivative assets         2,120          (3,791)
    Other liabilities                        (13,298)        (26,865)
    Deferred revenue                           9,057          (3,326)
                                               -----          ------
 Net cash provided by operating
  activities                                 150,510          98,815

 Purchase of flight equipment               (467,600)       (271,054)
 Proceeds from sale/disposal of assets       167,862           1,891
 Prepayments on flight equipment             (25,979)       (116,693)
 Purchase of subsidiaries, net of cash
  acquired                                         -               -
 Purchase of investments                           -               -
 Purchase of intangibles                           -               -
 Movement in restricted cash                  12,508           7,117
                                              ------           -----
 Net cash used in investing activities      (313,209)       (378,739)

 Issuance of debt                            496,126         562,464
 Repayment of debt                          (327,805)       (313,149)
 Debt issuance costs paid                    (12,809)         (6,212)
 Maintenance payments received                38,030          25,546
 Maintenance payments returned                (5,843)         (8,011)
 Security deposits received                    7,971           9,222
 Security deposits returned                   (8,187)         (9,020)
 Capital contributions from non-
  controlling interests                            -               -
 Net cash provided by financing
  activities                                 187,483         260,840

 Net increase in cash and cash
  equivalents                                 24,784         (19,084)
 Effect of exchange rate changes                 723           4,038
 Cash and cash equivalents at beginning
  of period                                  260,256         218,423
 Cash and cash equivalents at end of
  period                                     285,763         203,377
                                             =======         =======


                                                   Nine months ended
                                                      September 30,
                                                  2010              2009
                                                  ----              ----

 Net income                                    161,300           136,295
 Adjustments to reconcile net income to
  net cash provided by operating
  activities
 Depreciation                                  239,919           160,153
 Asset impairment                                5,482            21,332
 Amortisation of debt issuance cost             19,677            11,789
 Amortisation of intangibles                    16,092            12,499
 Provision for doubtful notes and
  accounts receivable                              920               940
 Capitalised interest on pre-delivery
  payments                                        (468)             (934)
 Gain on disposal of assets                    (36,050)            1,039
 Mark-to-market of non-hedged
  derivatives                                   35,905           (15,642)
 Deferred taxes                                 14,292             1,863
 Share-based compensation                        1,656             2,910
 Changes in assets and liabilities                   -
    Trade receivables and notes receivable,
     net                                        (3,308)           (5,850)
    Inventories                                 11,761            33,146
    Other assets and derivative assets          (5,516)          (14,521)
    Other liabilities                          (26,850)          (63,627)
    Deferred revenue                            21,054            (1,442)
                                                ------            ------
 Net cash provided by operating
  activities                                   455,866           279,950

 Purchase of flight equipment               (1,788,962)         (845,868)
 Proceeds from sale/disposal of assets         593,625            80,243
 Prepayments on flight equipment              (110,759)         (403,054)
 Purchase of subsidiaries, net of cash
  acquired                                      70,618                 -
 Purchase of investments                        (7,500)                -
 Purchase of intangibles                        (9,006)                -
 Movement in restricted cash                   (61,752)           (7,670)
                                               -------            ------
 Net cash used in investing activities      (1,313,736)       (1,176,349)

 Issuance of debt                            2,112,408         1,843,442
 Repayment of debt                          (1,213,445)       (1,081,578)
 Debt issuance costs paid                      (48,093)          (20,325)
 Maintenance payments received                 106,563            74,429
 Maintenance payments returned                 (28,567)          (33,620)
 Security deposits received                     24,892            32,287
 Security deposits returned                    (25,315)          (16,550)
 Capital contributions from non-
  controlling interests                         32,375           104,200
 Net cash provided by financing
  activities                                   960,818           902,285

 Net increase in cash and cash
  equivalents                                  102,948             5,886
 Effect of exchange rate changes                   198             3,928
 Cash and cash equivalents at beginning
  of period                                    182,617           193,563
 Cash and cash equivalents at end of
  period                                       285,763           203,377
                                               =======           =======


Certain reclassifications have been made to prior years consolidated statements of cash flow to reflect the current year presentation.


For Investors:

Keith Helming
Chief Financial Officer
+31-20-655-9670
khelming@aercap.com

Peter Wortel
Investor Relations
+31-20-655-9658
pwortel@aercap.com

For Media:

Frauke Oberdieck
Corporate Communications
+31-20-655-9616
foberdieck@aercap.com
Source: AerCap Holdings N.V.
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