STAMFORD, Conn., Feb. 25, 2014 /PRNewswire/ --
Highlights
- Operating and finance lease revenue of $173.3 million for the fourth quarter and
$661.1 million for the full year
- Net income of $48.4 million, or
$0.60 per diluted common share for
the fourth quarter, and $29.8
million, or $0.40 per diluted
common share, for the full year
- Adjusted EBITDA1 of $196.0
million for the fourth quarter and $717.2 million for the full year
- Adjusted net income1 of $54.9
million, or $0.68 per diluted
common share, for the fourth quarter and $59.3 million, or $0.80 per diluted common share, for the full
year
- Fleet utilization of 99.5% for the fourth quarter and 98.7% for
the full year, with aircraft portfolio yield of 13.6% for both the
fourth quarter and the full year
- Purchased eight aircraft during the fourth quarter for
$472 million, and closed 25 aircraft
investments in 2013 with a total cost of $1.45 billion
- Sold 22 aircraft during 2013 for $548
million; realized gain on sale of $37.2 million for the year
- Issued $400 million of 4.625%
unsecured Senior Notes due 2018 during the fourth quarter
- 31st consecutive quarterly dividend declared by
Aircastle's Board of Directors
- Established a joint venture with Ontario Teachers' Pension Plan
and we sold two A330 family aircraft to the joint venture in the
fourth quarter
Aircastle Limited (the "Company" or "Aircastle") (NYSE: AYR)
reported fourth quarter 2013 net income of $48.4 million, or $0.60 per diluted common share and adjusted net
income of $54.9 million, or
$0.68 per diluted common share.
Net income for the year ended December 31,
2013 was $29.8 million, or
$0.40 per diluted common share, and
adjusted net income was $59.3
million, or $0.80 per diluted
common share. The fourth quarter results included total
revenues of $192.0 million, an
increase of 9%, versus $176.6 million
in the fourth quarter of 2012. For the full year 2013, total
revenues were $708.6 million, up 3%
versus $686.6 million in
2012.
Commenting on the results, Ron
Wainshal, Aircastle's CEO, stated, "Thanks to a strong
fourth quarter, 2013 was a successful and important year for
Aircastle, as we grew and upgraded our portfolio with $1.5 billion of investments and significant and
profitable asset sales, including many end-of-life aircraft.
We strengthened our shareholder base and capital structure through
Marubeni's strategic investment, a larger unencumbered asset base,
several well priced debt financings and an expanded unsecured
revolver. Aircastle delivered strong results including a
full-year cash ROE of 12.1% and asset utilization of nearly 99%.
All in all, over the past twelve months I believe we
significantly enhanced the Company's competitive standing as a
nimble and flexible value-oriented investor. As we enter
2014, we remain well positioned to capitalize on a robust
acquisition pipeline, very attractive financial market conditions,
a terrific team and operating platform and an improving demand
environment for leased aircraft."
Fourth Quarter Results
Lease rental and finance lease revenues for the fourth quarter
were $173.3 million, up $11.3 million or 7% year over year, due primarily
to the impact of new aircraft acquisitions of $33.5 million, partially offset by lower revenue
due to aircraft sales of $16.8
million and the net year over year impact of lease
extensions, transitions and terminations and other changes of
$5.5 million.
Total revenues for the fourth quarter were $192.0 million, an increase of $15.4 million, or 9% from the previous year,
reflecting higher lease rental and finance lease revenue of
$11.3 million and higher maintenance
revenue of $9.2 million associated
with a year over year increase in lease transitions. These
increases were partially offset by a decline in other revenues of
$4.7 million reflecting early lease
termination fees earned in the fourth quarter of 2012 and the
maturity of a debt investment in the first quarter of
2013.
Adjusted EBITDA for the fourth quarter was $196.0 million, up $23.7
million, or 14% from the fourth quarter of 2012, due
primarily to higher total revenues excluding amortization of net
lease discounts and incentives of $15.8
million and higher gains from aircraft sales of $8.9 million. These improvements were
partially offset by an increase in net operating expenses of
$1.2 million.
Adjusted net income for the quarter was $54.9 million, up $18.5
million or 51%, year over year. The change reflects
higher total revenues of $15.4
million, higher gains from the sale of aircraft of
$8.9 million and lower aircraft
impairment charges of $2.7
million. These improvements were partially offset by
higher adjusted interest expense of $5.2
million, higher depreciation of $2.6
million and higher net operating expenses of $1.2 million.
Full Year Results
Lease rental and finance lease revenues for the full year were
$661.1 million, up $29.2 million, or 5% year over year, reflecting
the net impact of 41 aircraft acquisitions made during 2013 and
2012 totaling $103.0 million and
higher full year finance lease revenues of $7.8 million. These increases were offset
by lower lease rentals due to aircraft sales and disposals of
$52.7 million and the impact of
transitions, extensions and terminations and other changes totaling
$28.8 million.
Total revenues for 2013 were $708.6
million, an increase of $22.1
million, up 3% from the previous year. The increase
reflects higher lease rental and finance lease revenue of
$29.2 million and higher maintenance
revenue from lease terminations of $15.0
million. These increases were partially offset by an
increase in the amortization of net lease discounts and lease
incentives of $19.6 million
associated with fleet expansion, and $2.6
million of lower other revenue, primarily from a debt
investment which matured in the first quarter of 2013.
During the year, we recorded maintenance revenue from seven
scheduled lease terminations of $20.6
million versus $18.4 million
for five scheduled lease terminations in 2012. In addition,
we recorded $47.7 million of
maintenance revenue from ten aircraft returned ahead of schedule in
2013, versus $34.9 million from ten
aircraft that were returned early in 2012.
We recorded total non-cash impairment charges of $117.3 million in 2013 versus $96.5 million in 2012. The year over year
increase was primarily driven by impairment charges taken during
the third quarter 2013 annual fleet review, where we wrote down the
value of six 747-400 converted freighters coming off lease in
2014. To date, three of these six converted freighters have
been placed.
Adjusted EBITDA for the full year was $717.2 million, up $69.6
million or 11% versus 2012, due primarily to higher total
revenues excluding amortization of net lease discounts and
incentives of $41.6 million and
higher gains from aircraft sales of $31.5
million. These improvements were partially offset by
an increase in net operating expenses of $3.7 million.
Adjusted net income for the full year was $59.3 million compared to $57.0 million in 2012, an increase of
$2.3 million. Higher total
revenues of $22.1 million, higher
gains from sale of aircraft of $31.5
million and higher other net income of $5.5 million were partially offset by higher
aircraft impairment charges of $20.9
million, higher adjusted interest expense of $15.9 million, higher depreciation of
$15.0 million, and higher SG&A,
taxes and other expenses, net of $5.1
million.
Aviation Assets
During 2013, we acquired 25 aircraft investments for
$1.45 billion. We also sold 22
aircraft for $548 million which
resulted in a pre-tax gain of approximately $37.2 million for the year.
As of December 31, 2013, Aircastle
owned 162 aircraft having a net book value of $5.2 billion.
|
Owned
Aircraft as
of
December 31,
2011(1)
|
|
Owned
Aircraft as
of
December 31,
2012(1)
|
|
Owned
Aircraft as
of
December 31,
2013(1)
|
Flight Equipment Held
for Lease ($ mils.)
|
$
|
4,388
|
|
|
$
|
4,783
|
|
|
$
|
5,190
|
|
Unencumbered Flight
Eqt. included in Flight Eqt. Held for Lease ($ mils.)
|
$
|
677
|
|
|
$
|
2,092
|
|
|
$
|
2,655
|
|
Number of
Aircraft
|
144
|
|
|
159
|
|
|
162
|
|
Number of
Unencumbered Aircraft
|
27
|
|
|
72
|
|
|
80
|
|
Passenger Aircraft (%
of NBV)
|
69%
|
|
|
71%
|
|
|
81%
|
|
Freighter Aircraft (%
of NBV)
|
31%
|
|
|
29%
|
|
|
19%
|
|
Weighted Average
Fleet Age – Combined
(years)(2)
|
10.9
|
|
|
10.7
|
|
|
9.9
|
|
Weighted Average
Remaining Combined Lease Term
(years)(3)
|
4.9
|
|
|
5.0
|
|
|
5.0
|
|
Weighted Average
Fleet Utilization for the year
ended(4)
|
99%
|
|
|
99%
|
|
|
99%
|
|
Portfolio Yield for
the year ended(5)
|
14%
|
|
|
14%
|
|
|
14%
|
|
(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
(years) by net book value.
|
(3) Weighted average
remaining lease term (years) 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.
|
2013 Financing Activity
During 2013, we raised approximately $971
million of capital, including the following:
- Issuing 12,320,000 common shares to an affiliate of Marubeni
Corporation, for gross proceeds of approximately $209 million, in the third quarter of 2013.
Combined with additional subsequent purchases of Aircastle common
shares in the secondary market, as of February 14, 2014, Marubeni Corporation owned
approximately 20% of Aircastle's issued and outstanding common
shares.
- Issuing $400 million in aggregate
principal amount of unsecured 4.625% Senior Notes due 2018, in the
fourth quarter of 2013.
- Entering into $177 million of
secured borrowings related to various aircraft.
- Increasing our unsecured revolving credit from $150 million to $335 million, expanding the bank
group from four to seven global financial institutions and
extending the maturity of the facility to a three year term
expiring in August 2016. This revolving credit facility
is currently undrawn.
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 we acquired in
2013.
Joint Venture with Ontario Teachers' Pension Plan
In December 2013, Aircastle formed
a joint venture to invest in leased aircraft with an affiliate of
Ontario Teachers' Pension Plan. The joint venture's first
investment is two Airbus A330 family aircraft manufactured in 2013
that we sold to the joint venture, also in December 2013.
Teachers' holds more than 5% of our common shares and,
therefore, the joint venture and the sale of the initial Airbus
A330 family aircraft are related party transactions under our
related party policy. Accordingly, the formation of the joint
venture and the sale of these aircraft was submitted to, and
approved by, our Audit Committee under that policy.
Common Dividend
On February 21, 2014, Aircastle's
Board of Directors declared a first quarter 2014 cash dividend on
its common shares of $0.20 per share,
payable on March 14, 2014 to
shareholders of record on March 7,
2014. This is our 31st consecutive dividend.
During 2013, Aircastle increased the dividend to common
shareholders to the current quarterly rate of $0.20 per share, a 21% increase over the
quarterly rate at the end of 2012.
Conference Call
In connection with this earnings release, management will host
an earnings conference call on Tuesday,
February 25, 2014 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) 556-4997 (from within the U.S. and
Canada) or (719) 457-2628 (from
outside of the U.S. and Canada)
ten minutes prior to the scheduled start and referencing the
passcode "6185816".
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 1:00 P.M.
Eastern time on Thursday, March 27,
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 "6185816".
About Aircastle Limited
Aircastle Limited acquires, leases and sells commercial jet
aircraft to airlines throughout the world. As of December 31, 2013, Aircastle's aircraft portfolio
consisted of 162 aircraft on lease with 64 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 ability to acquire, sell, lease or
finance aircraft, raise capital, pay dividends, and increase
revenues, earnings, EBITDA, Adjusted EBITDA and 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 report. 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 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 2012 Annual
Report on Form 10-K, and elsewhere in this report. 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 report. 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.
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
Aircastle Limited
and Subsidiaries
|
Consolidated
Balance Sheets
|
(Dollars in
thousands, except share data)
|
|
|
December 31,
|
|
2012
|
|
2013
|
ASSETS
|
|
|
|
Cash and cash
equivalents
|
$
|
618,217
|
|
|
$
|
654,613
|
|
Accounts
receivable
|
5,625
|
|
|
2,825
|
|
Restricted cash and
cash equivalents
|
111,942
|
|
|
122,773
|
|
Restricted liquidity
facility collateral
|
107,000
|
|
|
107,000
|
|
Flight equipment held
for lease, net of accumulated depreciation of $1,305,064
and
$1,430,325
|
4,662,661
|
|
|
5,044,410
|
|
Net investment in
finance leases
|
119,951
|
|
|
145,173
|
|
Unconsolidated equity
method investment
|
—
|
|
|
21,123
|
|
Aircraft purchase
deposits
|
131
|
|
|
10,000
|
|
Other
assets
|
186,633
|
|
|
143,976
|
|
Total
assets
|
$
|
5,812,160
|
|
|
$
|
6,251,893
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
LIABILITIES
|
|
|
|
Borrowings from
secured financings (including borrowings of ACS Ireland VIEs
of
$207,926 and
$152,545, respectively)
|
$
|
1,848,034
|
|
|
$
|
1,586,835
|
|
Borrowings from
unsecured financings
|
1,750,642
|
|
|
2,150,527
|
|
Accounts payable,
accrued expenses and other liabilities
|
108,593
|
|
|
111,661
|
|
Lease rentals
received in advance
|
53,189
|
|
|
49,235
|
|
Liquidity
facility
|
107,000
|
|
|
107,000
|
|
Security
deposits
|
87,707
|
|
|
118,804
|
|
Maintenance
payments
|
379,391
|
|
|
442,432
|
|
Fair value of
derivative liabilities
|
61,978
|
|
|
39,992
|
|
Total
liabilities
|
4,396,534
|
|
|
4,606,486
|
|
|
|
|
|
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, 68,639,729
shares issued and outstanding at December 31, 2012; and
80,806,975 shares issued and outstanding at December 31,
2013
|
686
|
|
|
808
|
|
Additional paid-in
capital
|
1,360,555
|
|
|
1,562,106
|
|
Retained
earnings
|
180,675
|
|
|
158,398
|
|
Accumulated other
comprehensive loss
|
(126,290)
|
|
|
(75,905)
|
|
Total shareholders'
equity
|
1,415,626
|
|
|
1,645,407
|
|
Total liabilities and
shareholders' equity
|
$
|
5,812,160
|
|
|
$
|
6,251,893
|
|
Aircastle Limited
and Subsidiaries
|
Consolidated
Statements of Operations
|
(Dollars in
thousands, except per share amounts)
|
(Unaudited)
|
|
|
Three Months
Ended
December
31,
|
|
Twelve Months
Ended
December
31,
|
|
2012
|
|
2013
|
|
2012
|
|
2013
|
Revenues:
|
|
|
|
|
|
|
|
Lease rental
revenue
|
$
|
158,090
|
|
|
$
|
169,273
|
|
|
$
|
623,503
|
|
|
$
|
644,929
|
|
Finance lease
revenue
|
3,919
|
|
|
4,045
|
|
|
8,393
|
|
|
16,165
|
|
Amortization of lease
premiums, discounts and lease incentives
|
(6,452)
|
|
|
(6,884)
|
|
|
(12,844)
|
|
|
(32,411)
|
|
Maintenance
revenue
|
16,194
|
|
|
25,359
|
|
|
53,320
|
|
|
68,342
|
|
Total lease
rentals
|
171,751
|
|
|
191,793
|
|
|
672,372
|
|
|
697,025
|
|
Other
revenue
|
4,859
|
|
|
195
|
|
|
14,200
|
|
|
11,620
|
|
Total
revenues
|
176,610
|
|
|
191,988
|
|
|
686,572
|
|
|
708,645
|
|
|
|
|
|
|
|
|
|
Expenses:
|
|
|
|
|
|
|
|
Depreciation
|
69,896
|
|
|
72,476
|
|
|
269,920
|
|
|
284,924
|
|
Interest,
net
|
55,605
|
|
|
60,106
|
|
|
222,808
|
|
|
243,757
|
|
Selling, general and
administrative (including non-cash share
based payment expense
of $999 and $1,638 for the three months
ended, and $4,232 and
$4,569 for the twelve months ended
December 31, 2012 and
2013, respectively)
|
11,754
|
|
|
14,139
|
|
|
48,370
|
|
|
53,436
|
|
Impairment of
Aircraft
|
7,667
|
|
|
4,971
|
|
|
96,454
|
|
|
117,306
|
|
Maintenance and other
costs
|
2,713
|
|
|
2,167
|
|
|
14,656
|
|
|
13,631
|
|
Total
expenses
|
147,635
|
|
|
153,859
|
|
|
652,208
|
|
|
713,054
|
|
|
|
|
|
|
|
|
|
Other
income:
|
|
|
|
|
|
|
|
Gain on sale of
flight equipment
|
2,685
|
|
|
11,619
|
|
|
5,747
|
|
|
37,220
|
|
Other
|
(2)
|
|
|
1,116
|
|
|
602
|
|
|
6,132
|
|
Total other
income
|
2,683
|
|
|
12,735
|
|
|
6,349
|
|
|
43,352
|
|
|
|
|
|
|
|
|
|
Income from
continuing operations before income taxes
|
31,658
|
|
|
50,864
|
|
|
40,713
|
|
|
38,943
|
|
Income tax
provision
|
1,869
|
|
|
2,496
|
|
|
7,845
|
|
|
9,215
|
|
Earnings of
unconsolidated equity method investment
|
-
|
|
|
53
|
|
|
-
|
|
|
53
|
|
Net income
|
$
|
29,789
|
|
|
$
|
48,421
|
|
|
$
|
32,868
|
|
|
$
|
29,781
|
|
|
|
|
|
|
|
|
|
Earnings per common
share — Basic:
|
|
|
|
|
|
|
|
Net income per
share
|
$
|
0.43
|
|
|
$
|
0.60
|
|
|
$
|
0.46
|
|
|
$
|
0.40
|
|
|
|
|
|
|
|
|
|
Earnings per common
share — Diluted:
|
|
|
|
|
|
|
|
Net income per
share
|
$
|
0.43
|
|
|
$
|
0.60
|
|
|
$
|
0.46
|
|
|
$
|
0.40
|
|
|
|
|
|
|
|
|
|
Dividends declared
per share
|
$
|
0.165
|
|
|
$
|
0.20
|
|
|
$
|
0.615
|
|
|
$
|
0.695
|
|
Aircastle Limited
and Subsidiaries
|
Consolidated
Statements of Cash Flows
|
(Dollars in
thousands)
|
|
|
Year Ended
December 31,
|
|
2011
|
|
2012
|
|
2013
|
Cash flows from
operating activities:
|
|
|
|
|
|
Net income
|
$
|
124,270
|
|
|
$
|
32,868
|
|
|
$ 29,781
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
Depreciation
|
242,103
|
|
|
269,920
|
|
|
284,924
|
|
Amortization of
deferred financing costs
|
15,271
|
|
|
12,449
|
|
|
14,719
|
|
Amortization of net
lease discounts and lease incentives
|
16,445
|
|
|
12,844
|
|
|
32,411
|
|
Deferred income
taxes
|
5,615
|
|
|
6,828
|
|
|
4,416
|
|
Non-cash share based
payment expense
|
5,786
|
|
|
4,232
|
|
|
4,569
|
|
Net derivative loss
reclassified into earnings
|
23,078
|
|
|
30,777
|
|
|
33,265
|
|
Ineffective portion
of cash flow hedges
|
(101)
|
|
|
2,893
|
|
|
371
|
|
Security deposits and
maintenance payments included in earnings
|
(35,500)
|
|
|
(54,180)
|
|
|
(60,112)
|
|
Gain on the sale of
flight equipment
|
(39,092)
|
|
|
(5,747)
|
|
|
(37,220)
|
|
Impairment of
aircraft
|
6,436
|
|
|
96,454
|
|
|
117,306
|
|
Earnings of
unconsolidated equity method investment, net of tax
|
—
|
|
|
—
|
|
|
(53)
|
|
Other
|
742
|
|
|
(2,218)
|
|
|
(5,641)
|
|
Changes on certain
assets and liabilities:
|
|
|
|
|
|
Accounts
receivable
|
(4,818)
|
|
|
(2,530)
|
|
|
3,397
|
|
Restricted cash and
cash equivalents related to operating activities
|
4,418
|
|
|
—
|
|
|
—
|
|
Other
assets
|
(2,675)
|
|
|
919
|
|
|
1,164
|
|
Accounts payable,
accrued expenses and other liabilities
|
(1,848)
|
|
|
17,732
|
|
|
3,016
|
|
Lease rentals
received in advance
|
(753)
|
|
|
4,036
|
|
|
(2,276)
|
|
Net cash provided by
operating activities
|
359,377
|
|
|
427,277
|
|
|
424,037
|
|
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
Acquisition and
improvement of flight equipment
|
(776,750)
|
|
|
(693,227)
|
|
|
(1,263,706)
|
|
Proceeds from sale of
flight equipment
|
489,196
|
|
|
61,489
|
|
|
568,045
|
|
Restricted cash and
cash equivalents related to sale of flight equipment
|
(35,762)
|
|
|
35,762
|
|
|
—
|
|
Aircraft purchase
deposits and progress payments, net of returned deposits
and
aircraft sales deposits
|
(122,069)
|
|
|
(20,553)
|
|
|
(6,094)
|
|
Net investment in
finance leases
|
—
|
|
|
(91,500)
|
|
|
(11,595)
|
|
Collections on
finance leases
|
—
|
|
|
3,852
|
|
|
9,508
|
|
Unconsolidated equity
method investment and associated costs
|
—
|
|
|
—
|
|
|
(20,189)
|
|
Purchase of debt
investment
|
—
|
|
|
(43,626)
|
|
|
—
|
|
Principal repayments
on debt investment
|
—
|
|
|
6,585
|
|
|
42,001
|
|
Other
|
(35)
|
|
|
(691)
|
|
|
(903)
|
|
Net cash used in
investing activities
|
(445,420)
|
|
|
(741,909)
|
|
|
(682,933)
|
|
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
Issuance of shares
net of repurchases
|
(91,610)
|
|
|
(44,180)
|
|
|
197,437
|
|
Proceeds from notes
and term debt financings
|
669,047
|
|
|
1,459,690
|
|
|
563,230
|
|
Securitization and
term debt financing repayments
|
(390,945)
|
|
|
(847,415)
|
|
|
(510,162)
|
|
Deferred financing
costs
|
(20,179)
|
|
|
(31,691)
|
|
|
(10,865)
|
|
Restricted secured
liquidity facility collateral
|
(35,000)
|
|
|
3,000
|
|
|
—
|
|
Secured liquidity
facility collateral
|
35,000
|
|
|
(3,000)
|
|
|
—
|
|
Restricted cash and
cash equivalents related to security deposits and
maintenance payments
|
(25,056)
|
|
|
99,748
|
|
|
(10,831)
|
|
Security deposits
received
|
20,574
|
|
|
17,453
|
|
|
20,889
|
|
Security deposits
returned
|
(7,914)
|
|
|
(6,152)
|
|
|
(5,104)
|
|
Maintenance payments
received
|
122,050
|
|
|
142,122
|
|
|
179,789
|
|
Maintenance payments
returned
|
(89,300)
|
|
|
(57,822)
|
|
|
(77,033)
|
|
Payments for
terminated cash flow hedges and payment for option
|
—
|
|
|
(50,757)
|
|
|
—
|
|
Dividends
paid
|
(45,059)
|
|
|
(43,669)
|
|
|
(52,058)
|
|
Net cash provided by
financing activities
|
141,608
|
|
|
637,327
|
|
|
295,292
|
|
|
|
|
|
|
|
|
|
|
Net increase in
cash and cash equivalents
|
55,565
|
|
|
322,695
|
|
|
36,396
|
|
Cash and cash
equivalents at beginning of year
|
239,957
|
|
|
295,522
|
|
|
618,217
|
|
Cash and cash
equivalents at end of year
|
$
295,522
|
|
|
$
618,217
|
|
|
$ 654,613
|
|
Aircastle Limited
and Subsidiaries
|
Supplemental
Financial Information
|
(Amount in
thousands, except per share amounts)
|
(Unaudited)
|
|
|
Three Months
Ended
December
31,
|
|
Twelve Months
Ended
December
31,
|
|
2012
|
|
2013
|
|
2012
|
|
2013
|
|
|
|
|
|
|
|
|
Revenues
|
$ 176,610
|
|
$ 191,988
|
|
$ 686,572
|
|
$ 708,645
|
|
|
|
|
|
|
|
|
EBITDA
|
$ 163,611
|
|
$ 190,383
|
|
$ 546,285
|
|
$ 600,088
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$ 172,279
|
|
$ 195,965
|
|
$ 647,622
|
|
$ 717,209
|
|
|
|
|
|
|
|
|
Adjusted net
income
|
$
36,372
|
|
$
54,899
|
|
$
57,009
|
|
$
59,260
|
|
|
|
|
|
|
|
|
Adjusted net income
allocable to common shares
|
$
36,079
|
|
$
54,433
|
|
$
56,539
|
|
$
58,786
|
Per common share -
Basic
|
$
0.52
|
|
$
0.68
|
|
$
0.80
|
|
$
0.80
|
Per common share -
Diluted
|
$
0.52
|
|
$
0.68
|
|
$
0.80
|
|
$
0.80
|
|
|
|
|
|
|
|
|
Basic common shares
outstanding
|
69,120
|
|
80,154
|
|
70,717
|
|
73,653
|
Diluted common shares
outstanding
|
69,120
|
|
80,154
|
|
70,717
|
|
73,653
|
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
December
31,
|
|
Twelve Months
Ended
December
31,
|
|
2012
|
|
2013
|
|
2012
|
|
2013
|
Net income
|
$
|
29,789
|
|
|
$
|
48,421
|
|
|
$
|
32,868
|
|
|
$
|
29,781
|
|
Depreciation
|
69,896
|
|
|
72,476
|
|
|
269,920
|
|
|
284,924
|
|
Amortization of net
lease discounts and lease incentives
|
6,452
|
|
|
6,884
|
|
|
12,844
|
|
|
32,411
|
|
Interest,
net
|
55,605
|
|
|
60,106
|
|
|
222,808
|
|
|
243,757
|
|
Income tax
provision
|
1,869
|
|
|
2,496
|
|
|
7,845
|
|
|
9,215
|
|
EBITDA
|
|
163,611
|
|
|
|
190,383
|
|
|
|
546,285
|
|
|
|
600,088
|
|
Adjustments:
|
|
|
|
|
|
|
|
Impairment of
aircraft
|
7,667
|
|
|
4,971
|
|
|
96,454
|
|
|
117,306
|
|
Non-cash share
based payment expense
|
999
|
|
|
1,638
|
|
|
4,232
|
|
|
4,569
|
|
Loss (gain) on
mark to market of interest rate derivative contracts
|
2
|
|
|
(1,027)
|
|
|
(597)
|
|
|
(4,754)
|
|
Contract
termination expense
|
-
|
|
|
-
|
|
|
1,248
|
|
|
-
|
|
Adjusted
EBITDA
|
$
|
172,279
|
|
|
$
|
195,965
|
|
|
$
|
647,622
|
|
|
$
|
717,209
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
We define EBITDA as income 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-GAAP measure is helpful in
identifying trends in our performance. Using EBITDA assists us in
comparing our operating performance on a consistent basis by
removing the impact of our capital structure (primarily interest
charges on our outstanding debt) and asset base (primarily
depreciation and amortization) from our operating results. 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 (Loss) Reconciliation
|
(Dollars in
thousands)
|
(Unaudited)
|
|
|
Three Months
Ended
December
31,
|
|
Twelve Months
Ended
December 31,
|
|
2012
|
|
2013
|
|
2012
|
|
2013
|
|
(Dollars in
thousands)
|
Net income
|
$
|
29,789
|
|
|
$
|
48,421
|
|
|
$
|
32,868
|
|
|
$
|
29,781
|
|
Loan termination
fee(1)
|
-
|
|
|
-
|
|
|
-
|
|
|
2,954
|
|
Ineffective portion
and termination of hedges(1)
|
1,053
|
|
|
171
|
|
|
2,893
|
|
|
2,393
|
|
Gain (loss) on mark
to market of interest rate derivative
contracts(2)
|
2
|
|
|
(1,027)
|
|
|
(597)
|
|
|
(4,754)
|
|
Write-off of deferred financing fees(1)
|
120
|
|
|
-
|
|
|
3,034
|
|
|
3,975
|
|
Stock compensation
expense(3)
|
999
|
|
|
1,638
|
|
|
4,232
|
|
|
4,569
|
|
Term
Financing No. 1 hedge loss amortization
charges(1)
|
4,409
|
|
|
4,365
|
|
|
13,331
|
|
|
17,843
|
|
Securitization No. 1 hedge loss amortization charges
(1)
|
-
|
|
|
1,331
|
|
|
-
|
|
|
2,499
|
|
Contract
termination expense
|
-
|
|
|
-
|
|
|
1,248
|
|
|
-
|
|
Adjusted net
income
|
$
|
36,372
|
|
|
$
|
54,899
|
|
|
$
|
57,009
|
|
|
$
|
59,260
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 below
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 and gains or losses
related to flight equipment and debt investments.
Aircastle Limited
and Subsidiaries
|
Reconciliation of
GAAP to Non-GAAP Measures
|
Cash Earnings and
Cash ROE
|
(Dollars in
thousands)
|
(Unaudited)
|
|
|
|
2009
|
2010
|
2011
|
2012
|
2013
|
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
|
$ 327,641
|
$ 356,530
|
$ 359,377
|
$ 427,277
|
$ 424,037
|
|
|
|
|
|
|
|
Collections on
Finance Leases
|
|
-
|
-
|
-
|
3,852
|
9,508
|
Gain on Sale of
Flight Equipment
|
|
1,162
|
7,084
|
39,092
|
5,747
|
37,220
|
Less:
Depreciation
|
|
(209,481)
|
(220,476)
|
(242,103)
|
(269,920)
|
(284,924)
|
|
|
|
|
|
|
|
Cash
Earnings
|
|
$ 119,322
|
$ 143,138
|
$ 156,366
|
$ 166,956
|
$ 185,841
|
|
|
|
|
|
|
|
Average Shareholder's
Equity
|
|
$1,201,702
|
$1,316,978
|
$1,373,663
|
$1,410,117
|
$1,530,516
|
|
|
|
|
|
|
|
Cash Earnings /
Average Shareholder's Equity
|
|
9.9%
|
10.9%
|
11.4%
|
11.8%
|
12.1%
|
|
|
|
|
|
|
|
Note: Average Shareholder's Equity is the sum of the
current and prior year shareholder's equity divided by two.
Management believes that the cash return on equity metric (Cash
ROE) when viewed in conjunction with the Company's results under US
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
|
Reconciliation of
Net Income Allocable to Common Shares
|
(In
thousands)
|
(Unaudited)
|
|
|
Three Months
Ended
December 31,
2013
|
|
|
Twelve Months
Ended
December 31,
2013
|
|
Weighted-average
shares:
|
Shares
|
|
Percent(2)
|
|
|
Shares
|
|
Percent(2)
|
|
Common shares
outstanding – Basic
|
80,154
|
|
|
99.15%
|
|
|
73,653
|
|
|
99.20%
|
|
Unvested restricted
common shares
|
686
|
|
|
0.85%
|
|
|
594
|
|
|
0.80%
|
|
Total
weighted-average shares outstanding
|
80,839
|
|
|
100.00%
|
|
|
74,247
|
|
|
100.00%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
allocation
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
$48,421
|
|
|
100.00%
|
|
|
$29,781
|
|
|
100.00%
|
|
Distributed and
undistributed earnings allocated to unvested restricted
shares
|
(411)
|
|
|
(0.85%)
|
|
|
(238)
|
|
|
(0.80%)
|
|
Earnings available to
common shares
|
$48,010
|
|
|
99.15%
|
|
|
$29,543
|
|
|
99.20%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net
income allocation
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net
income
|
$54,899
|
|
|
100.00%
|
|
|
$59,260
|
|
|
100.00%
|
|
Amounts allocated to
unvested restricted
shares
|
(466)
|
|
|
(0.85%)
|
|
|
(474)
|
|
|
(0.80%)
|
|
Amounts allocated to
common shares
|
$54,433
|
|
|
99.15%
|
|
|
$58,786
|
|
|
99.20%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) For the three and
twelve months ended December 31, 2013, the company had no dilutive
shares.
|
(2) Percentages
rounded to two decimal places.
|
Aircastle Limited
and Subsidiaries
|
|
Reconciliation of
GAAP to Non-GAAP Measures
|
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Reconciliation of
Net Income Allocable to Common Shares
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(In
thousands)
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(Unaudited)
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Three Months
Ended
December 31,
2012
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Twelve Months
Ended
December 31,
2012
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Weighted-average
shares:
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Shares
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Percent(2)
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Shares
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Percent(2)
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Common shares
outstanding – Basic
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69,120
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99.19%
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70,717
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99.18%
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Unvested restricted
common shares
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561
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0.81%
|
|
|
588
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0.82%
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Total
weighted-average shares outstanding
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69,681
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100.00%
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|
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71,305
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100.00%
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|
|
|
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|
|
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Net income
allocation
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Net income
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$29,789
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100.00%
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$32,868
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100.00%
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Distributed and
undistributed earnings allocated to unvested restricted
shares
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(240)
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(0.81%)
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(271)
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(0.82%)
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Earnings available to
common shares
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$29,549
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99.19%
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|
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$32,597
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99.18%
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|
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Adjusted net
income (loss) allocation
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Adjusted net
income
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$36,372
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100.00%
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$57,009
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100.00%
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Amounts allocated to
unvested restricted shares
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(293)
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(0.81%)
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(470)
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(0.82%)
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Amounts allocated to
common shares
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$36,079
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99.19%
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|
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$56,539
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99.18%
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(1) For the three and
twelve months ended December 31, 2012, the company had no dilutive
shares.
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(2) Percentages
rounded to two decimal places.
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SOURCE Aircastle Limited