BURLINGAME, Calif.,
March 2, 2016 /PRNewswire/
-- AeroCentury Corp. (NYSE MKT: ACY), an independent aircraft
leasing company, today reported earnings totaling $3.1 million, or $1.99 per diluted share, in the fourth quarter of
2015, compared to $1.3 million, or
$0.81 per diluted share, in the third
quarter of 2015, and $0.5 million, or
$0.32 per diluted share, in the
fourth quarter of 2014. The fourth quarter 2015 results
reflect increased lease revenue due to improved utilization and
higher gains from sales of aircraft.
Net income increased to $6.4
million, or $4.17 per diluted
share, for the full year in 2015, compared to a net loss of
$11.3 million, or ($7.32) per diluted share, for 2014. The
2014 results included $18.7 million
of non-cash pre-tax write-downs on older equipment. All reported
results are unaudited.
During the fourth quarter of 2015, the Company sold three
aircraft for cash, which generated gains totaling $6.3 million. For all of 2015, the Company
recorded gains totaling $12.0 million
for the sale of nine aircraft, including five pursuant to
sales-type finance leases.
Average utilization improved to 96% in the fourth quarter
compared to 94% in the third quarter and 88% in the year-ago
quarter. For the full years of 2015 and 2014, utilization was
92% and 82%, respectively.
"Neal Crispin, our Founder,
Chairman and President since the Company's inception, passed away
in January," said Toni Perazzo,
Acting President and Chief Financial Officer. "His presence
is greatly missed, and we are dedicated to carrying on his work and
building on his legacy."
"Our niche in the aircraft leasing industry has gone through
several cycles since we launched our business more than 25 years
ago," Perazzo noted. "Increased competition in the
acquisition market has led to higher aircraft prices and lower
lease rates. Additional acquisitions are essential to the
Company's continued success, and we carefully monitor market
conditions and seek acquisition opportunities that make good
economic sense."
Fourth Quarter 2015 Highlights (at or for the period
ended December 31, 2015, compared to
September 30, 2015 and December 31, 2014):
- Average portfolio utilization increased to 96% during the
fourth quarter of 2015, compared to 94% in the preceding quarter
and 88% a year ago.
- Total revenues were $12.7 million for the fourth quarter
of 2015, an increase of 64% compared to $7.8
million in the preceding quarter, and an increase of 106%
compared to $6.2 million in the
fourth quarter a year ago.
- Operating lease revenues declined 5% to $6.2 million in the fourth quarter of 2015 from
$6.5 million in the preceding
quarter, as a result of asset sales in the fourth quarter, the
effect of which was partially offset by increased revenue from an
asset that was off lease during the third quarter. Operating
lease revenue increased 5% from $5.9
million in the fourth quarter of 2014 as a result of higher
utilization.
- Three aircraft were sold on a cash basis during the fourth
quarter of 2015, generating $6.3
million in gains. During the preceding quarter, the
Company sold three aircraft pursuant to sales-type finance leases,
generating gains totaling $1.1
million. In the fourth quarter of 2014, two aircraft
were sold generating gains totaling $0.2
million.
- Total expenses increased to $7.9
million in the fourth quarter of 2015, up 34% from
$5.9 million in the preceding
quarter, primarily due to higher maintenance costs and non-cash
impairment charges related to the Company's assets held for sale.
Total expenses were up 45% from $5.4
million in the fourth quarter a year ago, primarily as a
result of the impairment charges and a one-time waiver by JetFleet
Management Corp., the management company for the Company, of its
management fee of approximately $1.2
million in the 2014 quarter.
- Operating margin and net margin increased to 38% and 24%,
respectively, in the fourth quarter of 2015 from 25% and 16%,
respectively, for the preceding quarter and 13% and 8%,
respectively, in the fourth quarter of 2014.
- Book value per share was $26.35
at December 31, 2015, up 6% from
$24.75 per share at September 30, 2015, and up 17% from $22.58 per share a year ago.
The following table shows the status of the Company's portfolio
of aircraft and engines held for lease as of December 31, 2015, September 30, 2015 and December 31, 2014.
|
December 31,
2015
|
% of net book
value
|
September 30,
2015
|
% of net book
value
|
December 31,
2014
|
% of net book
value
|
Turboprop aircraft
(*):
|
|
|
|
|
|
|
On
lease
|
13
|
39%
|
15
|
42%
|
20
|
47%
|
Off lease -
re-leasing
|
3
|
6%
|
3
|
6%
|
5
|
5%
|
Total turboprop
aircraft
|
16
|
45%
|
18
|
48%
|
25
|
52%
|
|
|
|
|
|
|
|
Regional jet
aircraft:
|
|
|
|
|
|
|
On
lease
|
8
|
49%
|
8
|
47%
|
8
|
43%
|
Off lease -
re-leasing
|
-
|
-
|
-
|
-
|
-
|
-
|
Total regional
jet aircraft
|
8
|
49%
|
8
|
47%
|
8
|
43%
|
|
|
|
|
|
|
|
Engines:
|
|
|
|
|
|
|
On
lease
|
2
|
5%
|
2
|
4%
|
-
|
-
|
Off lease -
re-leasing
|
3
|
1%
|
3
|
1%
|
5
|
5%
|
Total
engines
|
5
|
6%
|
5
|
5%
|
5
|
5%
|
|
|
|
|
|
|
|
|
(*) Decreases from
period to period reflect cash sales, sales pursuant to sales-type
finance leases, and reclassifications of assets to held for
sale.
|
AeroCentury's portfolio currently consists of twenty-four
aircraft and five engines held for lease and four aircraft that are
held under sales-type finance leases. The Company also holds
three aircraft for sale, which reflects the sale of two regional
jet aircraft in February 2016. The Company's portfolio
consists of ten different aircraft types. The current
customer base comprises fourteen airlines operating worldwide.
At December 31, 2015, total assets
were $181.0 million, compared to
$197.7 million a year ago, reflecting
asset sales during 2015.
AeroCentury is an aircraft operating lessor and finance company
specializing in leasing regional aircraft and engines utilizing
triple net leases. The Company's aircraft and engines are leased to
regional airlines and commercial users worldwide.
Selected Financial
Information
|
(in thousands,
except share and per share data) (Unaudited)
|
|
|
For the Three
Months Ended
|
|
For the Years
Ended
|
|
December
31,
|
September
30,
|
December
31,
|
December
31,
|
December
31,
|
|
2015
|
2015
|
2014
|
|
2015
|
2014
|
|
|
|
|
|
|
|
Operating lease
revenue
|
$6,186
|
$6,511
|
$5,915
|
|
$25,467
|
$21,913
|
Gain on disposal of
assets
|
6,331
|
1,095
|
183
|
|
11,970
|
3,147
|
Maintenance reserves
revenue (1)
|
-
|
-
|
-
|
|
589
|
3,394
|
Other
income
|
230
|
185
|
101
|
|
507
|
252
|
|
12,747
|
7,791
|
6,199
|
|
38,533
|
28,706
|
|
|
|
|
|
|
|
Depreciation
|
2,131
|
2,282
|
1,689
|
|
9,062
|
7,299
|
Maintenance
costs
|
1,623
|
197
|
1,659
|
|
4,661
|
7,478
|
Interest
|
1,336
|
1,459
|
1,341
|
|
6,141
|
5,134
|
Management
fees
|
1,321
|
1,411
|
-
|
|
5,581
|
3,865
|
Provision for
impairment
|
1,135
|
-
|
218
|
|
1,282
|
18,737
|
Professional fees and
other
|
331
|
529
|
510
|
|
1,785
|
3,439
|
|
7,877
|
5,878
|
5,417
|
|
28,512
|
45,952
|
|
|
|
|
|
|
|
Income/(loss) before
income taxes
|
4,870
|
1,913
|
782
|
|
10,021
|
(17,246)
|
|
|
|
|
|
|
|
Income tax
provision/(benefit)
|
1,795
|
658
|
278
|
|
3,583
|
(5,952)
|
|
|
|
|
|
|
|
Net
income/(loss)
|
$3,075
|
$1,255
|
$504
|
|
$6,438
|
$(11,294)
|
|
|
|
|
|
|
|
Earnings/(loss) per
share:
|
|
|
|
|
|
|
Basic
|
$1.99
|
$0.81
|
$0.33
|
|
$4.17
|
$(7.32)
|
Diluted
|
$1.99
|
$0.81
|
$0.32
|
|
$4.17
|
$(7.32)
|
|
|
|
|
|
|
|
Shares used in per
share computations:
|
|
|
|
|
|
Basic
|
1,543,257
|
1,543,257
|
1,543,257
|
|
1,543,257
|
1,543,257
|
Diluted
|
1,547,334
|
1,548,469
|
1,552,620
|
|
1,544,285
|
1,543,257
|
|
|
|
|
|
|
|
|
12/31/15
|
9/30/15
|
12/31/14
|
|
|
|
|
|
|
|
|
|
|
Total assets
(2)
|
$181,025
|
$191,310
|
$197,671
|
|
|
|
Total liabilities
(2)
|
$139,746
|
$153,107
|
$162,830
|
|
|
|
Shareholders'
equity
|
$41,279
|
$38,203
|
$34,841
|
|
|
|
|
|
(1)
|
Maintenance reserves
revenue is dependent upon the amount of reserves retained upon
lease terminations.
|
(2)
|
Reflects early
adoption and retrospective application of Accounting Standards
Update No. 2015-03, "Interest: Imputation of Interest
(Subtopic 835-30): Simplifying the Presentation of Debt
Issuance Costs."
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/aerocentury-corp-earns-64-million-or-417-per-share-in-2015-300229265.html
SOURCE AeroCentury Corp.