AerCap reported a 43% increase in its cash position for the second quarter ended 30 June 2012. Total cash including restricted cash reached $765 million, compared with $535 million at the end of second quarter in 2011.
AerCap posted a $29.6 million net income for the second quarter ended 30 June 2012, compared with $30.8 million for the same period in 2011.
Adjusted net income totalled $59.2 million, compared with $72.8 million in last year's corresponding period.
The operating lessor said the decrease in adjusted net income was mainly the result of increased default and restructuring related expenses of $6.9 million, net of tax, and a lower gain on the sale of aircraft of $4.5 million, net of tax, in the second quarter of 2012 compared with the second quarter of 2011.
AerCap's chief executive officer Aengus Kelly, commented: "During the second quarter of 2012 AerCap continued to increase shareholder value by generating $59 million of adjusted net income and executing an unsecured debt offering, which represented an industry milestone. In addition, we demonstrated our commitment to enhance shareholder value by repurchasing 5.6 million shares and recently increased our share repurchase program to $200 million. This, along with opportunistic aircraft acquisitions such as our transaction with Singapore Airlines, our pro active aircraft sales policy and robust liquidity profile will continue to drive AerCap's industry leading returns."
Net interest margin earned on lease assets, or net spread, was $173.1 million in the second quarter of 2012 compared with $177.3 million for the same period in 2011. Net interest margin as a percentage of average lease assets was 8.67% for second quarter 2012 as compared to 8.83% for second quarter 2011. The decrease in net interest margin is driven by the impact from the delivery of new aircraft and costs related to defaults which occurred in previous periods.
Basic lease rents were $234.9 million for the second quarter, a decrease of 1% compared with the same period in 2011. Average lease assets decreased by 1% to $8 billion compared with the second quarter of 2011.
Basic rents, maintenance rents and other receipts, or total lease revenue, for the second quarter of 2012 was $247.4 million, compared to $264.5 million for the same period in 2011, a decrease of 6%.
Net gain on sale of aircraft for the second quarter of 2012 was $700,000, compared to $6.5 million for the same period in 2011. During the second quarter of 2012 we sold one A330 aircraft, one A320 aircraft and one Boeing 757 aircraft.
Total assets were $9.3 billion at 30 June 2012, a decrease of 3% over total assets of $9.6 billion at the end of the second quarter in 2011. The net decrease is attributable to the sale of AeroTurbine, which was only partially offset by new aircraft deliveries.
Committed purchases of aviation assets delivered or scheduled for delivery in 2012 totalled $1.1 billion, of which $518 million closed in the first six months of 2012. In the second quarter of 2012, AerCap closed three financing transactions totalling approximately $340 million, including a $300 million senior unsecured notes issuance. The total amount of financing transactions completed in the year to date is $650 million.
During the three-month period, AerCap purchased 5.6 million shares (including 5.0 million shares purchased from Cerberus Capital Management, L.P.) at a cost of $62.7 million. The average purchase price of the 5.6 million shares was $11.22. At 30 June 2012, the book value per share was $17.20.