STAMFORD, Conn., May 7, 2014 /PRNewswire/ --
Highlights
- Operating and finance lease revenues of $178.3 million and Adjusted
EBITDA1 of $170.0
million
- Net income of $5.8 million, or
$0.07 per diluted common share
- Adjusted net income1 of $13.3 million, or $0.16 per diluted common share
- Fleet utilization of 99% with an aircraft portfolio yield of
13.5%
- Purchased eight aircraft for $715
million during the first quarter
- Issued $500 million of 5.125%
unsecured senior notes due 2021 during the first quarter; proceeds
used to repay $450 million of 9.75%
unsecured senior notes in April
2014
- Increased bank revolver to $450
million from $335 million;
extended the facility to four years and expanded the size of the
bank group to nine from seven
- 32nd consecutive quarterly dividend declared by
Aircastle's Board of Directors
Aircastle Limited (the "Company" or "Aircastle") (NYSE: AYR)
reported first quarter 2014 net income of $5.8 million, or $0.07 per diluted common share, and adjusted net
income of $13.3 million, or
$0.16 per diluted common share.
The first quarter results included operating and finance lease
revenues of $178.3 million versus
$160.5 million in the first quarter
of 2013.
Commenting on the results, Ron
Wainshal, Aircastle's CEO, stated: "During the first quarter
of 2014, the Company completed several large new investments
totaling $715 million, including the
first part of our purchase and leaseback deal with LATAM. We
also took several important steps to improve our capital structure,
including issuing $500 million in new
unsecured notes to repay our first and most expensive bond,
completing more than $300 million in
well priced bank debt financings, repaying our first securitization
and enlarging and enhancing our unsecured revolving credit
facility. This work, along with many other actions during the
quarter improved our portfolio and should increase Aircastle's core
profitability."
First Quarter Results
Operating and finance lease revenues for the first quarter were
$178.3 million, up $17.8 million or 11% year over year, due
primarily to the revenue impact of aircraft acquisitions of
$38.0 million, partially offset by
lower revenues from aircraft sold of $16.9
million and the effect of lease extensions, transitions and
terminations of $3.4 million.
Total revenues for the first quarter were $176.6 million, essentially flat versus the
previous year. The $17.8
million increase in operating and finance lease revenues
were partially offset by $13.8
million of lower maintenance revenues compared to the first
quarter of 2013. Maintenance revenue in the first quarter of
2014 was reduced by $16.4 million of
contra maintenance revenue, reflecting engine restoration work
completed by a lessee prior to the scheduled return of three
737-800 aircraft. Other revenue was lower by $4.1 million in the first quarter of 2014 versus
2013, due primarily to the repayment of a debt investment in the
first quarter of 2013 and revenues earned during the first quarter
of 2013 related to aircraft returned to us early.
During the first quarter of 2014, we recorded non-cash
transactional impairment charges for one 737-400 aircraft which was
returned to us as scheduled by the lessee, and one Boeing 747-400
converted freighter for which we agreed to an early lease
termination with our customer. For these two aircraft, we
recorded impairment charges totaling $18.3
million and maintenance revenue of $17.2 million. We expect both aircraft will
be sold at close to breakeven prices.
Adjusted EBITDA for the first quarter was $170.0 million, up $1.4
million from the first quarter of 2013. Operating and
finance lease revenues were $17.8
million higher and maintenance expenses were $1.5 million lower. These improvements were
partially offset by lower maintenance revenues and lower other
revenues which decreased $17.9
million.
Net income for the first quarter was $5.8
million, down $17.3 million.
Total revenues were flat as higher operating and finance
lease revenues were offset by lower maintenance and other
revenues. Higher interest expense of $5.1 million, higher depreciation of $4.0 million and higher non-cash aircraft
impairment charges of $12.1 million
were partially offset by a lower income tax provision of
$2.7 million and lower maintenance
costs of $1.5 million.
Adjusted net income for the quarter was $13.3 million, down $14.2
million year over year, and reflects flat total revenues as
higher lease revenues were offset by lower maintenance and other
revenues in the first quarter of 2014 versus the prior year.
Higher non-cash impairment charges of $12.1
million, higher depreciation of $4.0
million and higher adjusted interest expense of $2.2 million were partially offset by a lower
income tax provision of $2.7 million
and lower maintenance costs of $1.5
million.
Aviation Assets
Thus far in 2014, we acquired or have committed to acquire
thirteen aircraft for more than $1.1
billion. During the first quarter, we closed on the
purchase of four 777-300ER aircraft built in 2012 leased to LATAM
Airlines. We also completed the purchase of two A330-300
aircraft leased to Singapore Airlines and two 737-800 aircraft
leased to Alaska Airlines.
During the first quarter of 2014, we sold six 737 "classic"
aircraft, four of which were in a freighter configuration.
Aircraft sales and dispositions during the quarter totaled
$28.0 million, which resulted in a
net gain on the sale of aircraft of $1.1
million.
As of March 31, 2014, Aircastle
owned 164 aircraft having a net book value of $5.8 billion, and our unencumbered aircraft
totaled 104 with a net book value of $3.3
billion. Including unrestricted cash, total
unencumbered assets were $3.9 billion
at the end of the first quarter of 2014 versus $3.3 billion at year-end 2013. The increase
in unencumbered assets was primarily due to the repayment of our
Securitization No. 1 financing in February of 2014. At
year-end 2013, this financing was secured with a pool of 26
aircraft which were unencumbered after the repayment.
|
Owned
Aircraft as of
March 31,
2013(1)
|
Owned
Aircraft as
of
March 31,
2014(1)
|
|
Flight Equipment Held
for Lease ($ mils.)
|
$
4,693
|
|
$
|
5,822
|
|
|
Unencumbered Flight
Equipment ($ mils.)
|
$
2,059
|
|
$
|
3,280
|
|
|
Number of
Aircraft
|
158
|
|
164
|
|
|
Number of
Unencumbered Aircraft
|
72
|
|
104
|
|
|
Passenger Aircraft (%
of NBV)
|
71%
|
|
84%
|
|
|
Freighter Aircraft (%
of NBV)
|
29%
|
|
16%
|
|
|
Weighted Average
Fleet Age – Combined
(years)(2)
|
10.9
|
|
9.1
|
|
|
Weighted Average
Remaining Combined Lease Term
(years)(3)
|
4.8
|
|
4.8
|
|
|
Weighted Average
Fleet Utilization for the three months
ended(4)
|
97%
|
|
99%
|
|
|
Portfolio Yield for
the three months ended(5)
|
13.6%
|
|
13.5%
|
|
(1) Calculated using net book value of
flight equipment held for lease and net investment in finance
leases at period end.
(2) Weighted average age by net book
value.
(3) Weighted average remaining lease term
by net book value.
(4) Aircraft on-lease days as a percent of
total days in period weighted by net book value.
(5) Lease rental revenue for the period as
a percent of the average net book value of flight equipment held
for lease for the period; quarterly information is
annualized.
Financing Update
In late March, we increased our unsecured revolving credit
facility from $335 million to
$450 million. We also expanded
the bank group from seven to nine global financial institutions, to
include Deutsche Bank and BNP Paribas, and extended the maturity
date to March 2018.
In March 2014, we issued
$500 million of 5.125% senior
unsecured notes due in 2021. The bonds were issued at par,
and Aircastle used the net proceeds from the offering to repay
$450 million par value 9.75% senior
notes due in 2018, plus accrued interest and fees in April
2014.
In February 2014, we repaid the
outstanding amount, plus accrued interest and fees, due under
Securitization No. 1 and terminated the related swap for a total
cash payment of $255 million.
In February 2014, we also raised
$303 million in secured financing for
two B777-300ER and one A330-200 aircraft acquired in
2013.
Common Dividend
On May 5, 2014, Aircastle's Board
of Directors declared a second quarter 2014 cash dividend on its
common shares of $0.20 per share,
payable on June 13, 2014 to
shareholders of record on May 30,
2014.
Conference Call
In connection with this earnings release, management will host
an earnings conference call on Wednesday,
May 7, 2014 at 10:00AM Eastern
time. All interested parties are welcome to
participate on the live call. The conference call can be
accessed by dialing (800) 723-6498 (from within the U.S. and
Canada) or (785) 830-7989 (from
outside of the U.S. and Canada)
ten minutes prior to the scheduled start and referencing the
passcode "3739822".
A simultaneous webcast of the conference call will be available
to the public on a listen-only basis at www.aircastle.com.
Please allow extra time prior to the call to visit the site and
download the necessary software required to listen to the internet
broadcast. A replay of the webcast will be available for one
month following the call. In addition to this earnings
release, an accompanying power point presentation has been posted
to the Investor Relations section of Aircastle's website.
For those who are not available to listen to the live call, a
replay will be available until 1:00PM
Eastern time on Friday, June 6,
2014 by dialing (888) 203-1112 (from within the U.S. and
Canada) or (719) 457-0820 (from
outside of the U.S. and Canada);
please reference passcode "3739822".
About Aircastle Limited
Aircastle Limited acquires, leases and sells commercial jet
aircraft to airlines throughout the world. As of March 31, 2014, Aircastle's aircraft portfolio
consisted of 164 aircraft on lease with 65 customers located in 37
countries.
Safe Harbor
Certain items in this press release and other information we
provide from time to time, may constitute forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995 including, but not necessarily limited to,
statements relating to our proposed public offering of notes and
our ability to acquire, sell, lease or finance aircraft, raise
capital, pay dividends, and increase revenues, earnings, EBITDA,
Adjusted EBITDA, Adjusted Net Income and the global aviation
industry and aircraft leasing sector. Words such as "anticipates,"
"expects," "intends," "plans," "projects," "believes," "may,"
"will," "would," "could," "should," "seeks," "estimates" and
variations on these words and similar expressions are intended to
identify such forward-looking statements. These statements are
based on management's current expectations and beliefs and are
subject to a number of factors that could lead to actual results
materially different from those described in the forward-looking
statements; Aircastle can give no assurance that its expectations
will be attained. Accordingly, you should not place undue reliance
on any forward-looking statements contained in this press release.
Factors that could have a material adverse effect on our operations
and future prospects or that could cause actual results to differ
materially from Aircastle's expectations include, but are not
limited to, capital markets disruption or volatility which could
adversely affect our continued ability to obtain additional capital
to finance new investments or our working capital needs; government
fiscal or tax policies, general economic and business conditions or
other factors affecting demand for aircraft or aircraft values and
lease rates; our continued ability to obtain favorable tax
treatment in Bermuda, Ireland and other jurisdictions; our ability
to pay dividends; high or volatile fuel prices, lack of access to
capital, reduced load factors and/or reduced yields, operational
disruptions caused by political unrest and other factors affecting
the creditworthiness of our airline customers and their ability to
continue to perform their obligations under our leases and other
risks detailed from time to time in Aircastle's filings with the
SEC, including as previously disclosed in Aircastle's 2013 Annual
Report on Form 10-K, and in our other filings with the SEC, press
releases and other communications. In addition, new risks and
uncertainties emerge from time to time, and it is not possible for
Aircastle to predict or assess the impact of every factor that may
cause its actual results to differ from those contained in any
forward-looking statements. Such forward-looking statements speak
only as of the date of this press release. Aircastle Limited
expressly disclaims any obligation to release publicly any updates
or revisions to any forward-looking statements contained herein to
reflect any change in its expectations with regard thereto or
change in events, conditions or circumstances on which any
statement is based.
1. Refer to Supplemental Financial Information
accompanying this press release for a reconciliation of GAAP to
non-GAAP numbers.
|
Aircastle Limited
and Subsidiaries
Consolidated
Balance Sheets
(Dollars in
thousands, except share data)
|
|
|
|
December 31,
2013
|
|
March 31,
2014
|
|
|
|
(Unaudited)
|
|
ASSETS
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
654,613
|
|
|
$
|
614,096
|
|
|
Accounts
receivable
|
2,825
|
|
|
4,437
|
|
|
Restricted cash and
cash equivalents
|
122,773
|
|
|
102,463
|
|
|
Restricted liquidity
facility collateral
|
107,000
|
|
|
65,000
|
|
|
Flight equipment held
for lease, net of accumulated depreciation of $1,430,325 and
$1,450,597
|
5,044,410
|
|
|
5,679,723
|
|
|
Net investment in
finance leases
|
145,173
|
|
|
142,400
|
|
|
Unconsolidated equity
method investment
|
21,123
|
|
|
21,440
|
|
|
Other
assets
|
153,976
|
|
|
148,706
|
|
|
Total
assets
|
$
|
6,251,893
|
|
|
$
|
6,778,265
|
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
|
Borrowings from
secured financings (including borrowings of ACS Ireland VIEs of
$152,545 and $93,938, respectively)
|
$
|
1,586,835
|
|
|
$
|
1,641,727
|
|
|
Borrowings from
unsecured financings
|
2,150,527
|
|
|
2,650,498
|
|
|
Accounts payable,
accrued expenses and other liabilities
|
111,661
|
|
|
156,765
|
|
|
Lease rentals
received in advance
|
49,235
|
|
|
51,660
|
|
|
Liquidity
facility
|
107,000
|
|
|
65,000
|
|
|
Security
deposits
|
118,804
|
|
|
117,024
|
|
|
Maintenance
payments
|
442,432
|
|
|
446,742
|
|
|
Fair value of
derivative liabilities
|
39,992
|
|
|
4,765
|
|
|
Total
liabilities
|
4,606,486
|
|
|
5,134,181
|
|
|
|
|
|
|
|
|
Commitments and
Contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
SHAREHOLDERS'
EQUITY
|
|
|
|
|
|
|
Preference shares,
$.01 par value, 50,000,000 shares authorized, no shares
issued and outstanding
|
—
|
|
|
—
|
|
|
Common shares,
$.01 par value, 250,000,000 shares authorized, 80,806,975
shares issued and outstanding at December 31, 2013; and
81,004,031 shares issued and outstanding at March 31,
2014
|
808
|
|
|
810
|
|
|
Additional paid-in
capital
|
1,562,106
|
|
|
1,561,508
|
|
|
Retained
earnings
|
158,398
|
|
|
147,974
|
|
|
Accumulated other
comprehensive loss
|
(75,905)
|
|
|
(66,208)
|
|
|
Total shareholders'
equity
|
1,645,407
|
|
|
1,644,084
|
|
|
Total liabilities and
shareholders' equity
|
$
|
6,251,893
|
|
|
$
|
6,778,265
|
|
|
Aircastle Limited
and Subsidiaries
Consolidated
Statements of Operations
(Dollars in
thousands, except per share amounts)
(Unaudited)
|
|
|
|
Three Months
Ended
March
31,
|
|
2013
|
|
2014
|
|
Revenues:
|
|
|
|
|
|
|
Lease rental
revenue
|
$
|
156,590
|
|
|
$
|
174,335
|
|
|
Finance lease
revenue
|
3,884
|
|
|
3,987
|
|
|
Amortization of lease
premiums, discounts and lease incentives
|
(7,081)
|
|
|
(6,591)
|
|
|
Maintenance revenue
(including contra maintenance revenue of $0 and $16,382 for the
three months ended March 31, 2013 and 2014,
respectively)
|
16,866
|
|
|
3,042
|
|
|
Total lease
revenue
|
170,259
|
|
|
174,773
|
|
|
Other
revenue
|
5,930
|
|
|
1,830
|
|
|
Total
revenues
|
176,189
|
|
|
176,603
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
Depreciation
|
69,900
|
|
|
73,927
|
|
|
Interest,
net
|
59,152
|
|
|
64,263
|
|
|
Selling, general and
administrative (including non-cash share based payment expense of
$811 and $990 for the three months ended March 31, 2013 and 2014,
respectively)
|
13,285
|
|
|
13,944
|
|
|
Impairment of
Aircraft
|
6,199
|
|
|
18,263
|
|
|
Maintenance and other
costs
|
3,412
|
|
|
1,863
|
|
|
Total
expenses
|
151,948
|
|
|
172,260
|
|
|
|
|
|
|
|
|
Other
income:
|
|
|
|
|
|
|
Gain on sale of
flight equipment
|
1,192
|
|
|
1,110
|
|
|
Other
|
1,215
|
|
|
757
|
|
|
Total other
income
|
2,407
|
|
|
1,867
|
|
|
|
|
|
|
|
|
Income from
continuing operations before income taxes
|
26,648
|
|
|
6,210
|
|
|
Income tax
provision
|
3,584
|
|
|
883
|
|
|
Earnings of
unconsolidated equity method investment, net of tax
|
—
|
|
|
450
|
|
|
Net income
|
$
|
23,064
|
|
|
$
|
5,777
|
|
|
|
|
|
|
|
|
Earnings per common
share — Basic:
|
|
|
|
|
|
|
Net income per
share
|
$
|
0.34
|
|
|
$
|
0.07
|
|
|
|
|
|
|
|
|
Earnings per common
share — Diluted:
|
|
|
|
|
|
|
Net income per
share
|
$
|
0.34
|
|
|
$
|
0.07
|
|
|
|
|
|
|
|
|
Dividends declared
per share
|
$
|
0.165
|
|
|
$
|
0.200
|
|
|
Aircastle Limited
and Subsidiaries
Consolidated
Statements of Comprehensive Income
(Dollars in
thousands)
(Unaudited)
|
|
|
|
Three Months
Ended
March
31,
|
|
2013
|
|
2014
|
|
|
|
|
|
|
|
Net income
|
$
|
23,064
|
|
|
$
|
5,777
|
|
|
Other comprehensive
income, net of tax:
|
|
|
|
|
|
|
Net change in fair
value of derivatives, net of tax expense of $118 and $804 for the
three months ended March 2013 and 2014, respectively
|
3,826
|
|
|
370
|
|
|
Net derivative loss
reclassified into earnings
|
8,274
|
|
|
9,327
|
|
|
Other comprehensive
income
|
12,100
|
|
|
9,697
|
|
|
Total comprehensive
income
|
$
|
35,164
|
|
|
$
|
15,474
|
|
|
Aircastle Limited
and Subsidiaries
Consolidated
Statements of Cash Flows
(Dollars in
thousands)
(Unaudited)
|
|
|
|
Three Months Ended
March 31,
|
|
2013
|
|
2014
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
Net income
|
$
|
23,064
|
|
|
$
|
5,777
|
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
|
Depreciation
|
69,900
|
|
|
73,927
|
|
|
Amortization of
deferred financing costs
|
2,435
|
|
|
3,420
|
|
|
Amortization of net
lease discounts and lease incentives
|
7,081
|
|
|
6,591
|
|
|
Deferred income
taxes
|
2,194
|
|
|
1,347
|
|
|
Non-cash share based
payment expense
|
811
|
|
|
990
|
|
|
Cash flow hedges
reclassified into earnings
|
8,274
|
|
|
9,327
|
|
|
Security deposits and
maintenance payments included in earnings
|
(23,259)
|
|
|
(14,786)
|
|
|
Gain on sale of
flight equipment
|
(1,192)
|
|
|
(1,110)
|
|
|
Impairment of
aircraft
|
6,199
|
|
|
18,263
|
|
|
Other
|
(2,773)
|
|
|
(2,162)
|
|
|
Changes in certain
assets and liabilities:
|
|
|
|
|
|
|
Accounts
receivable
|
1,866
|
|
|
(1,496)
|
|
|
Other
assets
|
(95)
|
|
|
(1,171)
|
|
|
Accounts payable,
accrued expenses and other liabilities
|
1,144
|
|
|
2,907
|
|
|
Lease rentals
received in advance
|
(2,902)
|
|
|
1,167
|
|
|
Net cash provided by
operating activities
|
92,747
|
|
|
102,991
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
Acquisition and
improvement of flight equipment and lease incentives
|
(4,157)
|
|
|
(663,038)
|
|
|
Proceeds from sale of
flight equipment
|
19,750
|
|
|
28,018
|
|
|
Aircraft purchase
deposits and progress payments
|
(3,869)
|
|
|
3,280
|
|
|
Net investment in
finance leases
|
(11,595)
|
|
|
—
|
|
|
Collections on
finance leases
|
1,845
|
|
|
2,773
|
|
|
Unconsolidated equity
method investment and associated costs
|
—
|
|
|
(159)
|
|
|
Distributions from
unconsolidated equity method investment in excess of
earnings
|
—
|
|
|
388
|
|
|
Principal repayments
on debt investment
|
42,001
|
|
|
—
|
|
|
Other
|
5
|
|
|
(248)
|
|
|
Net cash used in
investing activities
|
43,980
|
|
|
(628,986)
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
Issuance of shares
net of repurchases
|
(7,940)
|
|
|
(2,091)
|
|
|
Proceeds from notes
and term debt financings
|
—
|
|
|
803,200
|
|
|
Securitization and
term debt financing repayments
|
(82,681)
|
|
|
(287,778)
|
|
|
Deferred financing
costs
|
(441)
|
|
|
(14,755)
|
|
|
Restricted secured
liquidity facility collateral
|
—
|
|
|
42,000
|
|
|
Secured liquidity
facility collateral
|
—
|
|
|
(42,000)
|
|
|
Restricted cash and
cash equivalents related to financing activities
|
2,819
|
|
|
20,310
|
|
|
Security deposits
received
|
11,349
|
|
|
636
|
|
|
Security deposits
returned
|
(425)
|
|
|
(4,463)
|
|
|
Maintenance payments
received
|
34,142
|
|
|
41,265
|
|
|
Maintenance payments
returned
|
(7,196)
|
|
|
(21,218)
|
|
|
Payments for
terminated cash flow hedges
|
—
|
|
|
(33,427)
|
|
|
Dividends
paid
|
(11,268)
|
|
|
(16,201)
|
|
|
Net cash (used in)
provided by financing activities
|
(61,641)
|
|
|
485,478
|
|
|
Net increase
(decrease) in cash and cash equivalents
|
75,086
|
|
|
(40,517)
|
|
|
Cash and cash
equivalents at beginning of period
|
618,217
|
|
|
654,613
|
|
|
Cash and cash
equivalents at end of period
|
$
|
693,303
|
|
|
$
|
614,096
|
|
|
Aircastle Limited
and Subsidiaries
Supplemental
Financial Information
(Amount in
thousands, except per share amounts)
(Unaudited)
|
|
|
|
Three Months
Ended
March 31,
|
|
2013
|
|
2014
|
|
|
|
|
|
Revenues
|
$176,189
|
|
$176,603
|
|
|
|
|
|
EBITDA
|
$162,781
|
|
$151,441
|
|
|
|
|
|
Adjusted
EBITDA
|
$168,576
|
|
$170,013
|
|
|
|
|
|
Adjusted net
income
|
$
27,412
|
|
$
13,260
|
|
|
|
|
|
Adjusted net income
allocable to common shares
|
$
27,214
|
|
$
13,178
|
|
Per common share -
Basic
|
$
0.40
|
|
$
0.16
|
|
Per common share -
Diluted
|
$
0.40
|
|
$
0.16
|
|
|
|
|
|
Basic common shares
outstanding
|
67,896
|
|
80,387
|
|
Diluted common shares
outstanding
|
67,896
|
|
80,387
|
Refer to the selected information accompanying this press
release for a reconciliation of GAAP to Non-GAAP
information.
|
Aircastle Limited
and Subsidiaries
Reconciliation of
GAAP to Non-GAAP Measures
EBITDA and
Adjusted EBITDA Reconciliation
(Dollars in
thousands)
(Unaudited)
|
|
|
|
Three Months
Ended
March
31,
|
|
2013
|
|
2014
|
|
(Dollars in
thousands)
|
|
Net income
|
$
|
23,064
|
|
|
$
|
5,777
|
|
|
Depreciation
|
69,900
|
|
|
73,927
|
|
|
Amortization of net
lease discounts and lease incentives
|
7,081
|
|
|
6,591
|
|
|
Interest,
net
|
59,152
|
|
|
64,263
|
|
|
Income tax
provision
|
3,584
|
|
|
883
|
|
|
EBITDA
|
$
|
162,781
|
|
|
$
|
151,441
|
|
|
Adjustments:
|
|
|
|
|
Impairment of
aircraft
|
6,199
|
|
|
18,263
|
|
|
Non-cash share based
payment expense
|
811
|
|
|
990
|
|
|
Gain on mark to
market of interest rate derivative contracts
|
(1,215)
|
|
|
(681)
|
|
|
Adjusted
EBITDA
|
$
|
168,576
|
|
|
$
|
170,013
|
|
We define EBITDA as income (loss) from continuing operations
before income taxes, interest expense, and depreciation and
amortization. We use EBITDA to assess our consolidated
financial and operating performance, and we believe this
non-US GAAP measure is helpful in identifying trends in our
performance. This measure provides an assessment of
controllable expenses and affords management the ability to make
decisions which are expected to facilitate meeting current
financial goals as well as achieving optimal financial performance.
It provides an indicator for management to determine if adjustments
to current spending decisions are needed. EBITDA provides us
with a measure of operating performance because it assists us in
comparing our operating performance on a consistent basis as it
removes the impact of our capital structure (primarily interest
charges on our outstanding debt) and asset base (primarily
depreciation and amortization) from our operating results.
Accordingly, this metric measures our financial performance based
on operational factors that management can impact in the
short-term, namely the cost structure, or expenses, of the
organization. EBITDA is one of the metrics used by senior
management and the board of directors to review the consolidated
financial performance of our business. We define Adjusted
EBITDA as EBITDA (as defined above) further adjusted to give effect
to adjustments required in calculating covenant ratios and
compliance as that term is defined in the indenture governing our
senior unsecured notes. Adjusted EBITDA is a material
component of these covenants.
|
Aircastle Limited
and Subsidiaries
Reconciliation of
GAAP to Non-GAAP Measures
Adjusted Net
Income Reconciliation
(Dollars in
thousands)
(Unaudited)
|
|
|
|
Three Months Ended
March 31,
|
|
2013
|
|
2014
|
|
(Dollars in
thousands)
|
|
Net income
|
$
|
23,064
|
|
|
$
|
5,777
|
|
|
Ineffective portion
and termination of hedges(1)
|
128
|
|
|
53
|
|
|
Gain on mark to
market of interest rate derivative
contracts(2)
|
(1,215)
|
|
|
(681)
|
|
|
Stock compensation
expense(3)
|
811
|
|
|
990
|
|
|
Term Financing No. 1
hedge loss amortization charges(1)
|
4,283
|
|
|
4,104
|
|
|
Securitization No. 1
hedge loss amortization charges (1)
|
341
|
|
|
3,017
|
|
|
Adjusted net
income
|
$
|
27,412
|
|
|
$
|
13,260
|
|
(1) Included in Interest, net.
(2) Included in Other income (expense).
(3) Included in Selling, general and administrative
expenses.
Management believes that ANI, when viewed in conjunction with
the Company's results under US GAAP and the above
reconciliation, provides useful information about operating and
period-over-period performance, and provides additional information
that is useful for evaluating the underlying operating performance
of our business without regard to periodic reporting elements
related to interest rate derivative accounting, changes related to
refinancing activity and non-cash share based payment
expense.
|
Aircastle Limited
and Subsidiaries
Reconciliation of
GAAP to Non-GAAP Measures
Reconciliation of
Net Income Allocable to Common Shares
(In
thousands)
(Unaudited)
|
|
|
|
Three Months
Ended
March 31,
2014
|
|
Shares
|
|
Percent(2)
|
|
Weighted average
shares
|
|
|
|
|
Common shares
outstanding – Basic
|
80,387
|
|
99.38 %
|
|
Unvested restricted
common shares outstanding
|
501
|
|
0.62 %
|
|
Total weighted
average shares outstanding
|
80,888
|
|
100.00 %
|
|
|
|
|
|
Common shares
outstanding – Basic
|
80,387
|
|
100.00 %
|
|
Effect of dilutive
shares(1)
|
—
|
|
—
|
|
Common shares
outstanding – Diluted
|
80,387
|
|
100.00 %
|
|
|
|
|
|
Net income
allocation
|
|
|
|
|
Net income
|
$
5,777
|
|
100.00 %
|
|
Distributed and
undistributed earnings allocated to unvested restricted
shares
|
(36)
|
|
(0.62)%
|
|
Earnings available to
common shares
|
$
5,741
|
|
99.38 %
|
|
|
|
|
|
Adjusted net
income allocation
|
|
|
|
|
Adjusted net
income
|
$13,260
|
|
100.00 %
|
|
Amounts allocated to
unvested restricted shares
|
(82)
|
|
(0.62) %
|
|
Amounts allocated to
common shares
|
$13,178
|
|
99.38 %
|
|
|
|
|
|
|
|
|
|
(1) The Company had no dilutive common share
equivalents for the periods presented.
(2) Percentages rounded to two decimal
places.
|
Aircastle Limited
and Subsidiaries
Reconciliation of
GAAP to Non-GAAP Measures
Reconciliation of
Net Income Allocable to Common Shares
(In
thousands)
(Unaudited)
|
|
|
|
Three Months
Ended
March 31,
2013
|
|
Shares
|
|
Percent(2)
|
|
Weighted average
shares
|
|
|
|
|
Common shares
outstanding – Basic
|
67,896
|
|
99.28 %
|
|
Unvested restricted
common shares outstanding
|
493
|
|
0.72 %
|
|
Total weighted
average shares outstanding
|
68,389
|
|
100.00 %
|
|
|
|
|
|
Common shares
outstanding – Basic
|
67,896
|
|
100.00 %
|
|
Effect of dilutive
shares(1)
|
—
|
|
—
|
|
Common shares
outstanding – Diluted
|
67,896
|
|
100.00 %
|
|
|
|
|
|
Net income
allocation
|
|
|
|
|
Net income
|
$23,064
|
|
100.00 %
|
|
Distributed and
undistributed earnings allocated to unvested restricted
shares
|
(166)
|
|
(0.72)%
|
|
Earnings available to
common shares
|
$22,898
|
|
99.28 %
|
|
|
|
|
|
Adjusted net
income allocation
|
|
|
|
|
Adjusted net
income
|
$27,412
|
|
100.00 %
|
|
Amounts allocated to
unvested restricted shares
|
(198)
|
|
(0.72)%
|
|
Amounts allocated to
common shares
|
$27,214
|
|
99.28 %
|
|
|
|
|
|
|
|
|
|
(1) The Company had no dilutive common share
equivalents for the periods presented.
(2) Percentages rounded to two decimal
places.
Contact:
Frank Constantinople, SVP Investor Relations
Tel: +1-203-504-1063
fconstantinople@aircastle.com
The IGB Group
Leon Berman
Tel: +1-212-477-8438
lberman@igbir.com
SOURCE Aircastle Limited