Highlights included:
* Rental revenues increased 29.2% to $57.5 million
* EBITDA increased 27.3% to $51.3 million
* Net income increased 10.0% to $11.4 million
* Secured a new $241 million seven-year term debt facility,
thereby restoring capacity under the revolving credit facility to
$1 billion
* Declared a quarterly dividend of $0.10 per share
* Approved share buy-back program to purchase up to $20 million over
12 months
Commenting on the third quarter results and dividend, John McMahon, Chief Executive Officer of Genesis stated: “The financial crisis entered a new and tumultuous phase over the past couple of months creating a challenging operating environment for businesses around the world. Yet, even in this environment, our globally diversified portfolio of leased aircraft performed strongly; third quarter earnings were a solid $0.32 per share and we closed a new $241 million seven-year term debt, the proceeds of which were used to refinance outstanding borrowings under our revolving credit facility. This action means that we have no refinancing requirements on our current fleet before 2011 and we have restored available capacity under our revolving credit facility to $1 billion to position the company to take advantage of potential opportunities. Commercial aviation is a long-term growth industry and it is often during difficult times that the most attractive aircraft investment opportunities present themselves.
“Global economic activity is slowing and the outlook is for lower air traffic growth during the period ahead. Extraordinarily high fuel prices for much of this year weakened airlines financially and, in some cases, caused them to collapse. Currently, we have four aircraft in the process of being re-marketed by our servicer, GE Commercial Aviation Services (”GECAS“). The re-leasing of aircraft is an integral part of our business and because aircraft are mobile assets, they can be deployed to new customers on a worldwide basis. Our continued focus on young, high-quality and in-demand aircraft types, combined with our relationship with GECAS, positions us to manage redeployments efficiently.
“The current crisis is widely viewed as the most challenging since the 1930s. Consequently, the board has decided that it is prudent to reduce the quarterly dividend to $0.10 per share. The retention of capital will further strengthen the company and increase our capacity to take advantage of attractive opportunities in order to maximize long-term shareholder value. In accordance with our policy, the board will continue to review the dividend payment on a quarterly basis. In addition, the board has approved a share buyback program of up to $20 million over the next 12 months.”
