FLY Leasing Limited (NYSE:FLY) Q3 2018 Earnings Conference Call Transcript

Nov 08, 2018 • 09:00 am ET


FLY Leasing Limited (NYSE:FLY) Q3 2018 Earnings Conference Call Transcript


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Good day, ladies and gentlemen, and welcome to the FLY Leasing's Third Quarter Earnings Conference Call.

At this time all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will be given at that time.

(Operator Instructions)

As a reminder, this conference call may be recorded.

I would now like to turn the conference over to Mr. Matt Dallas. Sir, you may begin.

Matt Dallas

Thank you, and good afternoon from Ireland and good morning to everyone in the United States. This is Matt Dallas, the IR Manager of FLY Leasing, and I'd like to welcome everyone to our third quarter 2018 earnings conference call. FLY Leasing, which we will refer to as FLY or the Company, issued its third quarter earnings results press release, which is posted on the Company's website at

We have a slide presentation that accompanies today's call, which is available to participants on the webcast. If you are not accessing the webcast, you can find a copy of today's presentation in the IR section of our website on the Events & Presentations page. If you are listening to both the live call and the webcast, you may want to mute your computer as there will be a slight delay in the webcast's audio.

Representing the Company today on this call will be Colm Barrington, our CEO; Julie Ruehl, our CFO; and Steve Zissis, the President and CEO of BBAM, the company that manages and services FLY's fleet.

(Forward-Looking Cautionary Statements)

And with that, I'd like to turn the call over to Steve Zissis, the President and CEO of BBAM. Steve.

Steve Zissis

Thanks, Matt, and welcome everyone. By now I assume you've all read FLY's Q3 earnings release and have seen that FLY has had one of the best quarters ever and is delivering on its promise of improving earnings, and increasing value for its shareholders.

I think it's fair to say that the choices we made over the past few years to sell older aircraft, aggressively buy back our stock, drive down costs and invest in newer aircraft, including our most recently announced AirAsia transaction are not only paying off in terms of producing higher earnings per share and stronger returns on equity, but also de-risking the Company by having a younger fleet with longer weighted average lease term and a sound balance sheet with long-dated debt maturities and scheduled amortization.

But before getting into more details about FLY's results, and future activities, I'd like to update you on the industry conditions. As I have mentioned throughout this year's calls, underlying industry fundamentals have been and continue to remain extremely positive. While we continue to keep an eye on rising fuel prices, crude oil prices have fallen for the past four weeks in a row and remain in check.

We see aircraft demand being driven by passenger traffic, which continues to grow. Air traffic numbers continue to be strong worldwide and in many highly-populated emerging markets, they are growing at double digit