STAMFORD, Conn., May 4, 2017 /PRNewswire/ --
Key Financial Metrics
- Total revenues were $204.3
million
- Total lease rental and finance and sales-type lease revenues
were $194.7 million
- Net income was $42.4 million, or
$0.54 per diluted common share
- Adjusted net income was $45.7
million, or $0.58 per diluted
common share
- Adjusted EBITDA was $193.4
million
- Cash ROE was 12.0%; net cash interest margin was 8.7%
First Quarter 2017 Highlights
- Issued $500 million of new seven
year, senior unsecured notes at a record low coupon of 4.125%
- Closed or committed to acquire eighteen aircraft this year for
more than $400 million
- Declared our 44th consecutive quarterly
dividend
Aircastle Limited (the "Company" or "Aircastle") (NYSE: AYR)
reported first quarter 2017 net income of $42.4 million, or $0.54 per diluted common share and adjusted net
income of $45.7 million, or
$0.58 per diluted common share.
The first quarter results included total lease rental and finance
and sales-type lease revenues of $194.7
million, an increase of 6.3%, versus $183.1 million in the first quarter of
2016.
|
Note: Non-GAAP
items reconciled in the Appendix.
|
Commenting on the results, Mike
Inglese, Aircastle's Chief Financial Officer and Acting CEO,
stated, "Amid a strong aircraft financing environment, Aircastle
has continued to benefit from our strategic flexibility, solid
balance sheet, and our opportunistic investment strategy. We have
remained disciplined in the pursuit of acquisitions and are
determined to act only where opportunities have appealing risk and
return profiles. With our unique ability to provide value-added
solutions to customers, we successfully closed $190 million of aircraft acquisitions during the
first quarter and secured commitments to close a further
$220 million. We also seized the
opportunity to sell or commit to sell several additional aircraft
on appealing terms, continuing our progress in optimizing the fleet
mix. A number of these aircraft sales are expected to close
in the second quarter."
Mr. Inglese added, "We also made significant strides in our
efforts to continue strengthening our balance sheet. Notably, we
successfully raised $500 million
during the first quarter to replace a maturing 6.75% debt financing
with highly attractive, seven year unsecured notes at a record low
coupon of 4.125%. This refinancing will generate more than
$13 million of annual interest
savings."
Mr. Inglese concluded, "In addition to achieving significant
improvements to our fleet and our balance sheet, Aircastle also
continued to deliver solid financial and operational results. We
increased our net income by $6.2
million versus the prior year's first quarter, to
$42.4 million, and achieved a solid
cash ROE of 12.0%, while maintaining fleet utilization of 98.3%, in
line with our historical average. Moving forward, Aircastle is in a
strong position to continue expanding our earnings power, enhance
our fleet, and provide our investors with an attractive, reliable
dividend."
Peter V. Ueberroth, Aircastle's
Chairman of the Board, also provided an update on the status of
Ron Wainshal's medical leave of
absence. Mr. Ueberroth, speaking on behalf of the Board of
Directors, stated, "Ron continues to work hard on his recovery and
is making progress; however, we do not expect him to return as CEO
during the second quarter." Mr. Ueberroth continued, "The
Board continues to have great faith in Acting CEO Mike Inglese's service in that role, and the
depth and capability of the management team at Aircastle."
Financial Results
(in thousands, except
share data)
|
Three Months
Ended
March
31,
|
|
|
2017
|
|
2016
|
|
|
|
|
|
|
Total Lease Rental and
Finance and Sales-Type Lease Revenues
|
$ 194,659
|
|
$ 183,067
|
|
|
|
|
|
|
Total
Revenues
|
$ 204,273
|
|
$ 183,665
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$ 193,391
|
|
$ 183,879
|
|
|
|
|
|
|
Net income
|
$
42,439
|
|
$
36,262
|
|
Per common share -
Diluted
|
$
0.54
|
|
$
0.46
|
|
|
|
|
|
|
Adjusted net
income
|
$
45,691
|
|
$
44,091
|
|
Per common share -
Diluted
|
$
0.58
|
|
$
0.56
|
|
First Quarter Results
Total revenues were $204.3
million, an increase of $20.6
million, or 11.2% from the previous year. The increase was
driven by an $11.6 million increase
in lease rental and finance and sales-type lease revenues, and an
$11.0 million increase in maintenance
revenues. Rental revenues were higher due to net fleet
growth, while maintenance revenues rose primarily due to return
compensation from two lessees during the first quarter of
2017. Total maintenance revenues were $12.3 million in the first quarter of 2017 versus
$1.3 million in the prior
year.
Adjusted EBITDA for the first quarter was $193.4 million, up $9.5
million, or 5.2% from the first quarter of 2016, due
primarily to higher rental and maintenance revenues of $22.6 million, partially offset by lower gains
from aircraft sales of $12.1
million. We sold twelve aircraft for a gain on sale of
$12.8 million during the first
quarter of 2016 versus one aircraft sale that was closed during the
current year's first quarter.
Adjusted net income for the quarter was $45.7 million, an increase of $1.6 million versus the prior year. Higher
total rental and maintenance revenues were mostly offset by lower
gains from aircraft sales along with higher maintenance,
depreciation and other expenses.
Aviation Assets
During the first quarter of 2017, we acquired eight aircraft for
approximately $190 million and had
commitments to acquire ten additional aircraft for more than
$220 million. These eighteen
aircraft have a weighted average age of approximately 7.9 years and
a weighted average remaining lease term of 7.6 years.
Narrow-body aircraft comprise seventeen of the total aircraft
acquired.
As of March 31, 2017, Aircastle
owned 200 aircraft having a net book value of $6.6 billion. We also managed thirteen aircraft
with a net book value of $682 million
on behalf of our joint ventures.
Owned
Aircraft
|
|
As
of
March 31,
2017(1) |
|
As
of
March 31,
2016(1) |
|
|
|
|
|
|
|
|
|
Net Book Value of
Flight Equipment ($ mils.)
|
|
$
|
6,596
|
|
|
$
|
5,771
|
|
Net Book Value of
Unencumbered Flight Equipment ($ mils.)
|
|
$
|
4,725
|
|
|
$
|
3,752
|
|
Number of
Aircraft
|
|
200
|
|
|
153
|
|
Number of
Unencumbered Aircraft
|
|
163
|
|
|
111
|
|
Weighted Average
Fleet Age (years)(2)
|
|
8.2
|
|
|
7.6
|
|
Weighted Average
Remaining Lease Term (years)(2)
|
|
4.8
|
|
|
5.6
|
|
Weighted Average
Fleet Utilization for the period ended(3)
|
|
98.3%
|
|
|
99.6%
|
|
Portfolio Yield for
the period ended(4)
|
|
12.3%
|
|
|
12.5%
|
|
Net Cash Interest
Margin(5)
|
|
8.7%
|
|
|
9.0%
|
|
|
|
|
|
|
|
|
Managed Aircraft on
behalf of Joint Ventures
|
|
|
|
|
|
|
Net Book Value of
Flight Equipment ($ mils.)
|
|
$
682
|
|
|
$
590
|
|
Number of
Aircraft
|
|
13
|
|
|
9
|
|
|
|
(1)
|
Calculated using net
book value of flight equipment held for lease and net investment in
finance leases at period end.
|
(2)
|
Weighted by net book
value.
|
(3)
|
Aircraft on-lease
days as a percent of total days in period weighted by net book
value.
|
(4)
|
Lease rental revenue,
interest income and cash collections on our net investment in
finance and sales-type leases for the period as a percent of the
average net book value for the period; quarterly information is
annualized. Based on the growing level of finance and
sales-type lease revenue management revised the calculation of
portfolio yield to include our net investment in finance and
sales-type leases in the average net book value and to include the
interest income and cash collections on our net investment in
finance and sales-type leases in lease rentals.
|
(5)
|
Net Cash Interest
Margin = Lease rental yield plus finance lease revenue and
collections minus interest on borrowings, net of settlements on
interest rate derivatives, and other liabilities / average
NBV of flight equipment for the period calculated on a quarterly
basis, annualized.
|
Financing Activity
During the first quarter of 2017, we issued $500 million in unsecured Senior Notes due 2024
bearing a coupon of 4.125%. On April
17, 2017 we repaid $500
million of maturing, unsecured Senior Notes bearing a coupon
of 6.75%. The associated annual interest expense savings is
approximately $13.1
million.
Common Dividend
On May 2, 2017, Aircastle's Board
of Directors declared a second quarter 2017 cash dividend on its
common shares of $0.26 per share,
payable on June 15, 2017 to
shareholders of record on May 31,
2017. This is our 44th consecutive
dividend.
Conference Call
In connection with this earnings release, management will host
an earnings conference call on Thursday, May
4, 2017 at 10:00 A.M. Eastern
time. All interested parties are welcome to
participate on the live call. The conference call can be
accessed by dialing (888) 300-2343 (from within the U.S. and
Canada) or (719) 325-2170 (from
outside of the U.S. and Canada)
ten minutes prior to the scheduled start and referencing the
passcode "5337956".
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 3:00 P.M.
Eastern time on Saturday, June 3,
2017 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
"5337956".
About Aircastle Limited
Aircastle Limited acquires, leases and sells commercial jet
aircraft to airlines throughout the world. As of March 31, 2017, Aircastle owned and managed on
behalf of its joint ventures 213 aircraft leased to 72 customers
located in 37 countries.
Safe Harbor
All statements in this press release, other than
characterizations of historical fact, are forward-looking
statements within the meaning of the federal securities laws,
including the Private Securities Litigation Reform Act of 1995.
Examples of forward-looking statements include, but are 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,
Cash Return on Equity and Net Cash Interest Margin 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 our historical performance and that of our
subsidiaries and on our current plans, estimates and expectations
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 such forward-looking statements which
are subject to certain risks and uncertainties that could cause
actual results to differ materially from those anticipated as of
the date of this press release. These risks or uncertainties
include, but are not limited to, those described from time to time
in Aircastle's filings with the SEC and previously disclosed under
"Risk Factors" in Item 1A of Aircastle's 2016 Annual Report on Form
10- K. 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 expressly disclaims any obligation to
revise or update publicly any forward-looking statement to reflect
future events or circumstances.
Aircastle Limited
and Subsidiaries
|
Consolidated
Balance Sheets
|
(Dollars in
thousands, except share data)
|
|
|
|
|
March
31,
|
|
December
31,
|
|
2017
|
|
2016
|
ASSETS
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
871,858
|
|
|
$
|
455,579
|
|
Restricted cash and
cash equivalents
|
50,754
|
|
|
53,238
|
|
Accounts
receivable
|
7,442
|
|
|
6,035
|
|
Flight equipment held
for lease, net of accumulated depreciation of $1,284,855 and
$1,224,899, respectively
|
6,295,690
|
|
|
6,247,585
|
|
Net investment in
finance and sales-type leases
|
299,969
|
|
|
260,853
|
|
Unconsolidated equity
method investments
|
74,653
|
|
|
72,977
|
|
Other
assets
|
140,544
|
|
|
148,398
|
|
Total
assets
|
$
|
7,740,910
|
|
|
$
|
7,244,665
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
Borrowings from
secured financings, net of debt issuance costs
|
$
|
1,189,423
|
|
$
|
|
1,219,034
|
|
Borrowings from
unsecured financings, net of debt issuance costs
|
3,781,761
|
|
|
3,287,211
|
|
Accounts payable,
accrued expenses and other liabilities
|
144,384
|
|
|
127,527
|
|
Lease rentals
received in advance
|
60,302
|
|
|
62,225
|
|
Security
deposits
|
123,673
|
|
|
122,597
|
|
Maintenance
payments
|
585,283
|
|
|
591,757
|
|
Total
liabilities
|
5,884,826
|
|
|
5,410,351
|
|
|
|
|
|
|
|
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,
78,717,916 shares issued and outstanding at March 31,
2017; and 78,593,133 shares issued and outstanding at
December 31, 2016
|
787
|
|
|
786
|
|
Additional paid-in
capital
|
1,520,405
|
|
|
1,521,190
|
|
Retained
earnings
|
337,863
|
|
|
315,890
|
|
Accumulated other
comprehensive loss
|
(2,971)
|
|
|
(3,552)
|
|
Total shareholders'
equity
|
1,856,084
|
|
|
1,834,314
|
|
Total liabilities and
shareholders' equity
|
$
|
7,740,910
|
|
|
$
|
7,244,665
|
|
Aircastle Limited
and Subsidiaries
|
Consolidated
Statements of Income
|
(Dollars in
thousands, except per share amounts)
|
(Unaudited)
|
|
|
Three Months Ended
March 31,
|
|
2017
|
|
2016
|
Revenues:
|
|
|
|
Lease rental
revenue
|
$
|
190,586
|
|
|
$
|
179,570
|
|
Finance and
sales-type lease revenue
|
4,073
|
|
|
3,498
|
|
Amortization of lease
premiums, discounts and incentives
|
(3,112)
|
|
|
(1,070)
|
|
Maintenance
revenue
|
12,287
|
|
|
1,260
|
|
Total lease
revenue
|
203,834
|
|
|
183,258
|
|
Other
revenue
|
439
|
|
|
407
|
|
Total
revenues
|
204,273
|
|
|
183,665
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
Depreciation
|
79,174
|
|
|
76,647
|
|
Interest,
net
|
63,068
|
|
|
64,241
|
|
Selling, general and
administrative (including non-cash share based payment expense of
$2,102 and $1,643 for the three months ended March 31, 2017 and
2016, respectively)
|
16,167
|
|
|
15,492
|
|
Impairment of flight
equipment
|
500
|
|
|
-
|
|
Maintenance and other
costs
|
2,931
|
|
|
1,403
|
|
Total
expenses
|
161,840
|
|
|
157,783
|
|
|
|
|
|
Other income
(expense):
|
|
|
|
Gain on sale of
flight equipment
|
759
|
|
|
12,833
|
|
Other
|
(1,149)
|
|
|
(73)
|
|
Total other income
(expense)
|
(390)
|
|
|
12,760
|
|
|
|
|
|
Income from
continuing operations before income taxes and earnings of
unconsolidated equity method investment
|
42,043
|
|
|
38,642
|
|
Income tax
provision
|
1,846
|
|
|
3,939
|
|
Earnings of
unconsolidated equity method investments, net of tax
|
2,242
|
|
|
1,559
|
|
Net income
|
$
|
42,439
|
|
|
$
|
36,262
|
|
|
|
|
|
Earnings per common
share — Basic:
|
|
|
|
Net income per
share
|
$
|
0.54
|
|
|
$
|
0.46
|
|
|
|
|
|
Earnings per common
share — Diluted:
|
|
|
|
Net income per
share
|
$
|
0.54
|
|
|
$
|
0.46
|
|
|
|
|
|
Dividends declared
per share
|
$
|
0.26
|
|
|
$
|
0.24
|
|
Aircastle Limited
and Subsidiaries
|
|
Consolidated
Statements of Cash Flows
|
|
(Dollars in
thousands) (Unaudited)
|
|
|
|
|
Three Months Ended
March 31,
|
|
|
2017
|
|
2016
|
|
Cash flows from
operating activities:
|
|
|
|
|
Net income
|
$
|
42,439
|
|
|
$
|
36,262
|
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
Depreciation
|
79,174
|
|
|
76,647
|
|
|
Amortization of
deferred financing costs
|
4,155
|
|
|
5,607
|
|
|
Amortization of lease
premiums, discounts and incentives
|
3,112
|
|
|
1,070
|
|
|
Deferred income
taxes
|
1,309
|
|
|
(392)
|
|
|
Non-cash share based
payment expense
|
2,102
|
|
|
1,643
|
|
|
Cash flow hedges
reclassified into earnings
|
581
|
|
|
5,372
|
|
|
Security deposits and
maintenance payments included in earnings
|
(10,524)
|
|
|
(1,648)
|
|
|
Gain on sale of
flight equipment
|
(759)
|
|
|
(12,833)
|
|
|
Impairment of flight
equipment
|
500
|
|
|
-
|
|
|
Other
|
112
|
|
|
(1,558)
|
|
|
Changes in certain
assets and liabilities:
|
|
|
|
|
Accounts
receivable
|
(1,407)
|
|
|
992
|
|
|
Other
assets
|
(1,000)
|
|
|
(1,137)
|
|
|
Accounts payable,
accrued expenses and other liabilities
|
14,334
|
|
|
15,066
|
|
|
Lease rentals
received in advance
|
(2,552)
|
|
|
(3,827)
|
|
|
Net cash and
restricted cash provided by operating activities
|
131,576
|
|
|
121,264
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
Acquisition and
improvement of flight equipment
|
(142,053)
|
|
|
(96,524)
|
|
|
Proceeds from sale of
flight equipment
|
16,819
|
|
|
306,029
|
|
|
Aircraft purchase
deposits and progress payments, net of returned deposits and
aircraft sales deposits
|
(1,935)
|
|
|
(7,162)
|
|
|
Net investment in
finance and sales-type leases
|
(35,785)
|
|
|
-
|
|
|
Collections on
finance and sales-type leases
|
5,614
|
|
|
3,663
|
|
|
Unconsolidated equity
method investments and associated costs
|
-
|
|
|
(7,731)
|
|
|
Other
|
88
|
|
|
(176)
|
|
|
Net cash and
restricted cash provided by (used in) investing
activities
|
(157,252)
|
|
|
198,099
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
Repurchase of
shares
|
(2,513)
|
|
|
(33,250)
|
|
|
Proceeds from secured
and unsecured debt financings
|
500,000
|
|
|
500,000
|
|
|
Repayments of secured
and unsecured debt financings
|
(31,178)
|
|
|
(352,928)
|
|
|
Deferred financing
costs
|
(8,038)
|
|
|
(9,454)
|
|
|
Security deposits and
maintenance payments received
|
41,049
|
|
|
33,147
|
|
|
Security deposits and
maintenance payments returned
|
(39,383)
|
|
|
(20,936)
|
|
|
Dividends
paid
|
(20,466)
|
|
|
(18,915)
|
|
|
Net cash and
restricted cash provided by financing activities
|
439,471
|
|
|
97,664
|
|
|
Net increase in
cash and restricted cash
|
413,795
|
|
|
417,027
|
|
|
Cash and restricted
cash at beginning of period
|
508,817
|
|
|
254,041
|
|
|
Cash and restricted
cash at end of period
|
$
|
922,612
|
|
|
$
|
671,068
|
|
|
Aircastle Limited
and Subsidiaries
|
Selected Financial
Guidance Elements for the Second Quarter of 2017
|
($ in millions,
except for percentages)
|
(Unaudited)
|
|
Guidance
Item
|
Q2:17
|
Lease rental
revenue
|
$184 -
$188
|
Finance lease
revenue
|
$5 - $6
|
Maintenance
revenue
|
$14 - $16
|
Amortization of net
lease discounts and lease incentives
|
($2) -
($3)
|
SG&A(1)
|
$16 - $17
|
Depreciation
|
$77 - $79
|
Interest,
net
|
$62 - $64
|
Gain on
sale
|
$6 - $14
|
Full year effective
tax rate
|
4% - 7%
|
|
(1) Includes ~$2.8M
of non-cash share based payment expense.
|
|
Aircastle Limited
and Subsidiaries
|
Supplemental
Financial Information
|
(Amount in
thousands, except per share amounts)
|
(Unaudited)
|
|
|
Three Months
Ended
March
31,
|
|
|
2017
|
|
2016
|
|
|
|
|
|
|
Revenues
|
$ 204,273
|
|
$ 183,665
|
|
|
|
|
|
|
EBITDA
|
$ 189,639
|
|
$ 182,159
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$ 193,391
|
|
$ 183,879
|
|
|
|
|
|
|
Adjusted net
income
|
$
45,691
|
|
$
44,091
|
|
|
|
|
|
|
Adjusted net income
allocable to common shares
|
$
45,398
|
|
$
43,772
|
|
Per common share -
Basic
|
$
0.58
|
|
$
0.56
|
|
Per common share -
Diluted
|
$
0.58
|
|
$
0.56
|
|
|
|
|
|
|
Basic common shares
outstanding
|
78,177
|
|
78,543
|
|
Diluted common shares
outstanding
|
78,372
|
|
78,543
|
|
|
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,
|
|
2017
|
|
2016
|
|
(Dollars in
thousands)
|
Net income
|
$
|
42,439
|
|
|
$
|
36,262
|
|
Depreciation
|
79,174
|
|
|
76,647
|
|
Amortization of net
lease discounts and lease incentives
|
3,112
|
|
|
1,070
|
|
Interest,
net
|
63,068
|
|
|
64,241
|
|
Income tax
provision
|
1,846
|
|
|
3,939
|
|
EBITDA
|
189,639
|
|
|
182,159
|
|
Adjustments:
|
|
|
|
Impairment of flight
equipment
|
500
|
|
|
-
|
|
Non-cash share based
payment expense
|
2,102
|
|
|
1,643
|
|
Loss on
mark-to-market of interest rate derivative contracts
|
1,150
|
|
|
77
|
|
Adjusted
EBITDA
|
$
|
193,391
|
|
|
$
|
183,879
|
|
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,
|
|
2017
|
|
2016
|
|
(Dollars in
thousands)
|
Net income
|
$
|
42,439
|
|
|
$
|
36,262
|
|
Loan termination
fee(1)
|
—
|
|
|
1,509
|
|
Loss on mark-to-market
of interest rate derivative contracts(2)
|
1,150
|
|
|
77
|
|
Write-off of deferred
financing fees(1)
|
—
|
|
|
1,972
|
|
Non-cash
share based payment expense(3)
|
2,102
|
|
|
1,643
|
|
Securitization
No. 1 hedge loss amortization charges (1)
|
—
|
|
|
2,628
|
|
Adjusted net
income
|
$
|
45,691
|
|
|
$
|
44,091
|
|
__________________
|
(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 U.S. 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
|
Cash Return on
Equity Calculation
|
(Dollars in
thousands)
|
(Unaudited)
|
|
|
CFFO
|
Finance Lease
Collections
|
Gain (Loss) on Sale
of Eqt.
|
Deprec.
|
Distributions in
excess (less than) Equity Earnings
|
Cash
Earnings
|
Average Shareholders'
Equity
|
12 Month
Cash ROE
|
2011
|
$
359,377
|
$
-
|
$
39,092
|
$
242,103
|
$
-
|
$
156,366
|
$
1,370,513
|
11.4%
|
2012
|
$
427,277
|
$
3,852
|
$
5,747
|
$
269,920
|
$
-
|
$
166,956
|
$
1,425,658
|
11.7%
|
2013
|
$
424,037
|
$
9,508
|
$
37,220
|
$
284,924
|
$
-
|
$
185,841
|
$
1,513,156
|
12.3%
|
2014
|
$
458,786
|
$
10,312
|
$
23,146
|
$
299,365
|
$
667
|
$
193,546
|
$
1,661,228
|
11.7%
|
2015
|
$
526,285
|
$
9,559
|
$
58,017
|
$
318,783
|
$
(530)
|
$
274,548
|
$
1,759,871
|
15.6%
|
2016
|
$
468,092
|
$
19,413
|
$
39,126
|
$
305,216
|
$
(1,782)
|
$
219,633
|
$
1,789,256
|
12.3%
|
LTM Q1:17
|
$
478,404
|
$
21,364
|
$
27,052
|
$
307,743
|
$
(2,067)
|
$
217,010
|
$
1,804,573
|
12.0%
|
|
Note: LTM
Average Shareholders' Equity is the average of the most recent five
quarters period end Shareholders' Equity. Management believes
that the cash return on equity metric ("Cash ROE") when viewed in
conjunction with the Company's results under U.S. GAAP and
the above reconciliation, provide useful information about
operating and period-over-period performance, and provide
additional information that is useful for evaluating the underlying
operating performance of our business without regard to periodic
reporting impacts related to non-cash revenue and expense items and
interest rate derivative accounting, while recognizing the
depreciating nature of our assets.
|
Aircastle Limited
and Subsidiaries
|
Reconciliation of
GAAP to Non-GAAP Measures
|
Net Cash Interest
Margin Calculation
|
(Dollars in
thousands)
|
(Unaudited)
|
|
|
|
Average
NBV
|
|
Quarterly
Rental
Revenue
|
|
Cash
Interest(1)
|
|
Annualized
Net Cash
Interest Margin(2)
|
Q1:12
|
|
$
4,388,008
|
|
$
152,242
|
|
$
44,969
|
|
9.8%
|
Q2:12
|
|
$
4,542,477
|
|
$
156,057
|
|
$
48,798
|
|
9.4%
|
Q3:12
|
|
$
4,697,802
|
|
$
163,630
|
|
$
41,373
|
|
10.4%
|
Q4:12
|
|
$
4,726,457
|
|
$
163,820
|
|
$
43,461
|
|
10.2%
|
Q1:13
|
|
$
4,740,161
|
|
$
162,319
|
|
$
48,591
|
|
9.6%
|
Q2:13
|
|
$
4,840,396
|
|
$
164,239
|
|
$
44,915
|
|
9.9%
|
Q3:13
|
|
$
4,863,444
|
|
$
167,876
|
|
$
47,682
|
|
9.9%
|
Q4:13
|
|
$
5,118,601
|
|
$
176,168
|
|
$
49,080
|
|
9.9%
|
Q1:14
|
|
$
5,312,651
|
|
$
181,095
|
|
$
51,685
|
|
9.7%
|
Q2:14
|
|
$
5,721,521
|
|
$
190,574
|
|
$
48,172
|
|
10.0%
|
Q3:14
|
|
$
5,483,958
|
|
$
182,227
|
|
$
44,820
|
|
10.0%
|
Q4:14
|
|
$
5,468,637
|
|
$
181,977
|
|
$
44,459
|
|
10.1%
|
Q1:15
|
|
$
5,743,035
|
|
$
181,027
|
|
$
50,235
|
|
9.1%
|
Q2:15
|
|
$
5,967,898
|
|
$
189,238
|
|
$
51,413
|
|
9.2%
|
Q3:15
|
|
$
6,048,330
|
|
$
191,878
|
|
$
51,428
|
|
9.3%
|
Q4:15
|
|
$
5,962,874
|
|
$
188,491
|
|
$
51,250
|
|
9.2%
|
Q1:16
|
|
$
5,988,076
|
|
$
186,730
|
|
$
51,815
|
|
9.0%
|
Q2:16
|
|
$
5,920,030
|
|
$
184,469
|
|
$
55,779
|
|
8.7%
|
Q3:16
|
|
$
6,265,175
|
|
$
193,909
|
|
$
57,589
|
|
8.7%
|
Q4:16
|
|
$
6,346,361
|
|
$
196,714
|
|
$
58,631
|
|
8.7%
|
Q1:17
|
|
$
6,505,355
|
|
$
200,273
|
|
$
58,839
|
|
8.7%
|
|
|
|
|
(1)
|
Excludes loan
termination payments of $3.0 million in the second quarter of
2013. Also excludes loan termination payments of $1.5 million
and $3.5 million in the first quarter and fourth quarter of 2016
respectively.
|
|
|
|
|
(2)
|
Net Cash Interest
Margin = Lease rental yield plus finance lease revenue and
collections minus interest on borrowings, net of settlements on
interest rate derivatives, and other liabilities / average
NBV of flight equipment for the period calculated on a quarterly
basis, annualized. Based on the growing level of
finance and sales-type lease revenue, management revised the
calculation of portfolio yield to include our net investment in
finance and sales-type leases in the average net book value and to
include the interest income and cash collections on our net
investment in finance and sales-type leases in lease
rentals.
|
|
|
|
|
Management
believes that net cash interest margin, when viewed in conjunction
with the Company's results under U.S. GAAP and the above
reconciliation, provides useful information about the effective
deployment of our capital in the context of the yield on our
aircraft assets, the utilization of those assets by our lessees,
and our ability to borrow efficiently.
|
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,
2017
|
Weighted-average
shares:
|
Shares
|
|
Percent(2)
|
Common shares
outstanding – Basic
|
78,177
|
|
|
99.36%
|
|
Unvested restricted
common shares
|
504
|
|
|
0.64%
|
|
Total
weighted-average shares outstanding
|
78,681
|
|
|
100.00%
|
|
|
|
|
|
|
|
Common shares
outstanding – Basic
|
78,177
|
|
|
99.75%
|
|
Effect of dilutive
shares(1)
|
195
|
|
|
0.25%
|
|
Common shares
outstanding – Diluted
|
78,372
|
|
|
100.00%
|
|
|
|
|
|
|
|
Net income
allocation
|
|
|
|
|
|
Net income
|
$42,439
|
|
|
100.00%
|
|
Distributed and
undistributed earnings allocated to unvested restricted
shares
|
(272)
|
|
|
(0.64%)
|
|
Earnings available to
common shares – Basic
|
$42,167
|
|
|
99.36%
|
|
|
|
|
|
|
|
Adjusted net
income allocation
|
|
|
|
|
|
Adjusted net
income
|
$45,691
|
|
|
100.00%
|
|
Amounts allocated to
unvested restricted shares
|
(293)
|
|
|
(0.64%)
|
|
Amounts allocated to
common shares – Basic and Diluted
|
$45,398
|
|
|
99.36%
|
|
|
|
|
|
|
|
(1) For the
three months ended March 31, 2017, dilutive shares represented
contingently issuable shares related
to the Company's
PSUs.
|
(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,
2016
|
Weighted-average
shares:
|
Shares
|
|
Percent(2)
|
Common shares
outstanding – Basic
|
78,543
|
|
|
99.28%
|
|
Unvested restricted
common shares
|
572
|
|
|
0.72%
|
|
Total
weighted-average shares outstanding
|
79,116
|
|
|
100.00%
|
|
|
|
|
|
|
|
Common shares
outstanding – Basic
|
78,543
|
|
|
100.00%
|
|
Effect of dilutive
shares(1)
|
--
|
|
|
--
|
|
Common shares
outstanding – Diluted
|
78,543
|
|
|
100.00%
|
|
|
|
|
|
|
|
Net income
allocation
|
|
|
|
|
|
Net income
|
$36,262
|
|
|
100.00%
|
|
Distributed and
undistributed earnings allocated to unvested restricted
shares
|
(262)
|
|
|
(0.72%)
|
|
Earnings available to
common shares -- Basic
|
$36,000
|
|
|
99.28%
|
|
|
|
|
|
|
|
Adjusted net
income allocation
|
|
|
|
|
|
Adjusted net
income
|
$44,091
|
|
|
100.00%
|
|
Amounts allocated to
unvested restricted shares
|
(319)
|
|
|
(0.72%)
|
|
Amounts allocated to
common shares – Basic and Diluted
|
$43,772
|
|
|
99.28%
|
|
|
|
|
|
|
|
(1) For the
three months ended March 31, 2016 the company had no dilutive
shares.
|
(2) Percentages
rounded to two decimal places.
|
Contact:
|
|
Aircastle Advisor
LLC
|
The IGB
Group
|
Frank Constantinople,
SVP Investor Relations
|
Leon
Berman
|
Tel:
+1-203-504-1063
|
Tel:
+1-212-477-8438
|
fconstantinople@aircastle.com
|
lberman@igbir.com
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/aircastle-announces-first-quarter-2017-results-300451238.html
SOURCE Aircastle Limited