STAMFORD, Conn., Feb. 11, 2016 /PRNewswire/ --
Key Financial Metrics
- Net income was $50.6 million, or
$0.63 per diluted common share for
the fourth quarter, and $121.7
million, or $1.50 per diluted
common share, for the full year
- Adjusted net income was $54.3
million, or $0.67 per diluted
common share for the fourth quarter, and $142.3 million, or $1.75 per diluted common share, for the full
year
- Adjusted EBITDA was $211.0
million for the fourth quarter and $832.1 million for the full year
- Record cash flow from operations of $526.3 million in 2015, up 14.7%
- Record gains from sales of flight equipment of $58.0 million in 2015
- Record cash ROE of 15.6% in 2015; 9.1% net cash interest
margin
Highlights
- Completed $1.4 billion in
acquisitions and entered into an agreement with Embraer to purchase
25 new technology E-Jet E2 aircraft
- Sold 31 aircraft for $563
million
- Unencumbered flight equipment grew to $3.9 billion
- Repurchased 2.6 million shares since November 2015; $100
million share repurchase program reauthorized
- Declared our 39th consecutive quarterly
dividend
Aircastle Limited (the "Company" or "Aircastle") (NYSE: AYR)
reported fourth quarter 2015 net income of $50.6 million, or $0.63 per diluted common share and adjusted net
income of $54.3 million, or
$0.67 per diluted common
share. Net income for the year ended December 31, 2015 was $121.7 million, or $1.50 per diluted common share, and adjusted net
income was $142.3 million, or
$1.75 per diluted common
share. The fourth quarter results included lease rental and
finance lease revenues of $185.7
million, an increase of 3%, versus $179.8 million in the fourth quarter of
2014. For the full year 2015, lease rental and finance lease
revenues were $741.1 million, up 2%
versus $725.6 million in 2014.
Commenting on the results, Ron
Wainshal, Aircastle's CEO, stated, "Aircastle's results for
the fourth quarter of 2015 were excellent and reflect our
continuing successes in seizing the opportunities available in the
market last year. For the full year, our accomplishments
include record gains from asset sales, consistently excellent
operating performance and the aggressive moves we completed to
address nearly all of our lease placement requirements for 2016
while actively pruning suboptimal exposures and assets.
Importantly, we also enhanced our liquidity base and broadened our
banking relationships, leveraging our strategic partnership with
Marubeni."
Mr. Wainshal continued, "Throughout the year we retained our
discipline as buyers while still managing to complete $1.4 billion in acquisitions, focusing on
narrow-body aircraft. We further demonstrated our commitment
to deploy capital efficiently by increasing our dividend and
pursuing share buy-backs during the recent stock market drop,
returning $123 million in capital to
shareholders since the beginning of 2015."
Mr. Wainshal concluded, "As we look at the current macroeconomic
and financial market turbulence, it reaffirms our approach of
selectively limiting future capital commitments and maintaining
investment flexibility, especially given the fluid historical
realities of the markets. The steps we've taken to de-risk our
business combined with our firm and principled commitment to
identifying and exploiting optimum value points in time continues
to stand us in good stead. I am confident that Aircastle is
fundamentally well positioned to grow and prosper going
forward."
Financial
Results
(in thousands, except
share data)
|
Three Months
Ended
December
31,
|
|
Twelve Months
Ended
December
31,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
Total
Revenues
|
$ 208,267
|
|
$ 238,257
|
|
$ 819,202
|
|
$ 818,602
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$ 210,972
|
|
$ 233,200
|
|
$ 832,105
|
|
$ 792,283
|
|
|
|
|
|
|
|
|
Net income
|
$ 50,641
|
|
$ 72,764
|
|
$ 121,729
|
|
$ 100,828
|
Per common share - Diluted
|
$ 0.63
|
|
$ 0.90
|
|
$ 1.50
|
|
$ 1.25
|
|
|
|
|
|
|
|
|
Adjusted net
income
|
$ 54,264
|
|
$ 80,145
|
|
$ 142,271
|
|
$ 167,642
|
Per common share - Diluted
|
$ 0.67
|
|
$ 0.99
|
|
$ 1.75
|
|
$ 2.07
|
Fourth Quarter Results
Total revenues for the fourth quarter were $208.3 million, a decline of $30.0 million, driven by lower maintenance
revenues, which typically arise at lease end. Maintenance
revenues were $37.1 million lower due
to fewer aircraft coming off lease during the fourth quarter of
2015, as compared to 2014 when we early terminated the leases of
several aircraft that had been leased to airlines based in
Russia and Ukraine.
Adjusted EBITDA for the fourth quarter was $211.0 million, down $22.2
million from the fourth quarter of 2014, due primarily to
lower maintenance revenues, partially offset by a $5.9 million increase in lease rental and finance
lease revenues and an increase of $5.2
million from gains on sale of flight equipment.
Adjusted net income for the quarter was $54.3 million, down $25.9
million year-over-year. The decrease was due primarily
to lower maintenance revenues and a $7.1
million increase in depreciation expense, partially offset
by a $9.5 million reduction in
non-cash impairment charges arising from the early return and sale
of several aircraft during the fourth quarter of 2014.
Full Year Results
Total revenues in 2015 were $819.2
million, essentially flat with the previous year. Lease
rental revenues increased $18.8
million versus the previous year, reflecting the growth in
flight equipment. However, this increase was largely offset
by a $17.0 million reduction in
maintenance revenues caused by a lower number of aircraft coming
off lease in 2015 compared to the previous year.
Adjusted EBITDA for the full year was $832.1 million, up $39.8
million versus 2014, primarily reflecting $34.9 million more in gains from the sale of
flight equipment and a $6.5 million
increase in other revenues which included termination fees
associated with the disposal of freighter aircraft during 2015.
Adjusted net income for the full year was $142.3 million compared to $167.6 million in 2014, a decrease of
$25.4 million. Adjusted net
income in 2014 excluded a $36.6
million charge associated with the early repayment of 9.75%
debt, which was refinanced at a substantially lower coupon.
Aviation Assets
During 2015, we acquired 46 aircraft for $1.4 billion, including 14 aircraft for
$384.8 million during the fourth
quarter. The average age of the aircraft acquired during 2015
was 5.0 years and the leases had an average remaining term of
approximately 8.6 years. Of the 46 aircraft purchased during
the year, 43 were narrow-bodies.
We currently have acquired or committed to acquire ten
narrow-body aircraft in 2016 for $380
million. In addition, during 2015 Aircastle entered into an
agreement with Embraer to acquire 25 new technology E-Jet E2
aircraft delivering in 2018 through 2021.
During 2015, we sold 31 aircraft for net proceeds of
$562.5 million, and realized a record
gain on the sale of flight equipment of $58.0 million. The weighted average age of
the aircraft sold during 2015 was 15.5 years.
In the fourth quarter of 2015, we completed the sale of eleven
aircraft, including two wide-body and two freighter aircraft. Our
portfolio activity helped reduce our freighter exposure to eleven
aircraft accounting for ten percent of our total fleet net book
value, representing a significant reduction in exposure.
During the first quarter, we continued executing our sales
program and we expect to sell six narrow-body aircraft to our joint
venture with Ontario Teachers' Pension Plan ("Teachers'") for gross
proceeds of more than $190 million.
The aircraft are leased to major customers and the sale will help
us manage portfolio concentrations while improving our return on
deployed capital. Upon completion, our joint venture with Teachers'
will have nearly $700 million in
assets.
2015 Aircraft
Sales through December 31
|
($ in
millions)
|
|
Aircraft
Type
|
Number of
Aircraft
|
Weighted
Average Age (years)
|
Maintenance
Revenue
|
Gain (Loss) on
Sale of Flight Equipment
|
Impairments
|
Pre-Tax
Impact
|
|
|
|
|
|
|
|
Narrow-bodies
|
21
|
14.8
|
$
|
12.3
|
$
|
41.4
|
$
|
(5.3)
|
$
|
48.4
|
|
|
|
|
|
|
|
Wide-bodies
|
6
|
15.9
|
-
|
17.9
|
-
|
17.9
|
|
|
|
|
|
|
|
Freighters
|
4
|
18.3
|
11.4
|
(1.3)
|
(17.9)
|
(7.8)
|
|
|
|
|
|
|
|
Total
|
31
|
15.5
|
$
|
23.7
|
$
|
58.0
|
$
|
(23.2)
|
$
|
58.6
|
As of December 31, 2015, Aircastle
owned 162 aircraft having a net book value of $6.1 billion and managed five aircraft on behalf
of our joint venture with Teachers'.
|
Owned
Aircraft as
of
December 31,
2015(1)
|
|
Owned
Aircraft as
of
December 31,
2014(1)
|
|
Owned
Aircraft as
of
December 31,
2013(1)
|
|
|
|
|
|
|
Total Flight
Equipment Held for Lease ($ mils.)
|
$
|
6,068
|
|
|
$
|
5,686
|
|
|
$
|
5,190
|
|
Unencumbered Flight
Equipment Held for Lease ($ mils.)
|
$
|
3,928
|
|
|
$
|
3,341
|
|
|
$
|
2,655
|
|
Number of
Aircraft
|
162
|
|
|
148
|
|
|
162
|
|
Number of
Unencumbered Aircraft
|
118
|
|
|
95
|
|
|
80
|
|
Weighted Average
Fleet Age (years)(2)
|
7.5
|
|
|
8.4
|
|
|
9.9
|
|
Weighted Average
Remaining Lease Term
(years)(3)
|
5.9
|
|
|
5.4
|
|
|
5.0
|
|
Weighted Average
Fleet Utilization for the year
ended(4)
|
99.3%
|
|
|
99.6%
|
|
|
98.7%
|
|
Portfolio Yield for
the year ended(5)
|
12.6%
|
|
|
13.3%
|
|
|
13.6%
|
|
Net Cash Interest
Margin(6)
|
9.1%
|
|
|
10.0%
|
|
|
9.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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.
|
(6) Net Cash Interest Margin
= Lease rental yield 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.
|
|
Share Repurchases
Since November 2015, the Company
acquired 2.6 million shares at an average price of $19.19 per share, 955 thousand shares of which
were purchased at an average price of $19.81 per share during the fourth quarter of
2015. We acquired an additional 1.65 million shares at an
average price of $18.83 per share
since the start of 2016. Aircastle's Board of Directors just
reauthorized our $100 million share
repurchase program.
2015 Financing Activity
We raised $800 million of new
financing during 2015. This included $500 million of Senior Notes due in 2022 and
$150 million in long-term secured
bank loans obtained from Japanese institutions. We also
increased the size of our Revolving Credit Facility from
$450 million to $600 million and extended its maturity to
May 2019. The capital raised during
the year provided us with additional resources to pursue aircraft
acquisitions and enhanced our financial flexibility.
Common Dividend
On February 9, 2016, Aircastle's
Board of Directors declared a first quarter 2016 cash dividend on
its common shares of $0.24 per share,
payable on March 15, 2016 to
shareholders of record on February
29, 2016. Aircastle increased the dividend six times
since 2010.
Conference Call
In connection with this earnings release, management will host
an earnings conference call on Thursday,
February 11, 2016 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) 438-5525 (from within the U.S. and
Canada) or (719) 325-2464 (from
outside of the U.S. and Canada)
ten minutes prior to the scheduled start and referencing the
passcode "1343968".
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 Saturday, March 12,
2016 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 "1343968".
About Aircastle Limited
Aircastle Limited acquires, leases and sells commercial jet
aircraft to airlines throughout the world. As of December 31, 2015, Aircastle's aircraft portfolio
consisted of 162 aircraft on lease with 53 customers located in 34
countries.
Safe Harbor
All statements included or incorporated by reference in this
Press Release (this "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 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 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 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 1 A of Aircastle's 2014 Annual Report on
Form 10-K and our Form 10-Q filed for the quarter ended
September 30, 2015, and elsewhere in
this Release. 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
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)
|
|
|
December 31,
|
|
2015
|
|
2014
|
ASSETS
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
155,904
|
|
|
$
|
169,656
|
|
Accounts
receivable
|
8,566
|
|
|
3,334
|
|
Restricted cash and
cash equivalents
|
98,137
|
|
|
98,884
|
|
Restricted liquidity
facility collateral
|
65,000
|
|
|
65,000
|
|
Flight equipment held
for lease, net of accumulated depreciation of $1,306,024 and
$1,294,063, respectively
|
5,867,062
|
|
|
5,579,718
|
|
Net investment in
finance and sales-type leases
|
201,211
|
|
|
106,651
|
|
Unconsolidated equity
method investment
|
50,377
|
|
|
46,453
|
|
Other
assets
|
123,707
|
|
|
105,450
|
|
Total
assets
|
$
|
6,569,964
|
|
|
$
|
6,175,146
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
Borrowings from
secured financings, net of debt issuance costs
|
$
|
1,146,238
|
|
|
$
|
1,373,131
|
|
Borrowings from
unsecured financings, net of debt issuance costs
|
2,894,918
|
|
|
2,371,456
|
|
Accounts payable,
accrued expenses and other liabilities
|
131,058
|
|
|
140,863
|
|
Lease rentals
received in advance
|
67,327
|
|
|
53,216
|
|
Liquidity
facility
|
65,000
|
|
|
65,000
|
|
Security
deposits
|
115,642
|
|
|
117,689
|
|
Maintenance
payments
|
370,281
|
|
|
333,456
|
|
Total
liabilities
|
4,790,464
|
|
|
4,454,811
|
|
|
|
|
|
|
|
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,
80,232,260 shares issued and
outstanding at December 31, 2015; and 80,983,249 shares
issued and outstanding at
December 31, 2014
|
802
|
|
|
810
|
|
Additional paid-in
capital
|
1,550,337
|
|
|
1,565,180
|
|
Retained
earnings
|
241,574
|
|
|
192,805
|
|
Accumulated other
comprehensive loss
|
(13,213)
|
|
|
(38,460)
|
|
Total shareholders'
equity
|
1,779,500
|
|
|
1,720,335
|
|
Total liabilities and
shareholders' equity
|
$
|
6,569,964
|
|
|
$
|
6,175,146
|
|
Aircastle Limited
and Subsidiaries
|
Consolidated
Statements of Income
|
(Dollars in
thousands, except per share amounts)
|
(Unaudited)
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
Twelve Months
Ended December 31,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
Lease rental
revenue
|
$
|
183,394
|
|
$
|
|
178,202
|
|
|
$
|
733,417
|
|
|
$
|
714,654
|
|
Finance and
sales-type lease revenue
|
2,306
|
|
|
1,559
|
|
|
7,658
|
|
|
10,906
|
|
Amortization of lease
premiums, discounts and lease incentives
|
(376)
|
|
|
1,080
|
|
|
(10,664)
|
|
|
(6,172)
|
|
Maintenance
revenue
|
15,901
|
|
|
52,971
|
|
|
71,049
|
|
|
88,006
|
|
Total lease
revenue
|
201,225
|
|
|
233,812
|
|
|
801,460
|
|
|
807,394
|
|
Other
revenue
|
7,042
|
|
|
4,445
|
|
|
17,742
|
|
|
11,208
|
|
Total
revenues
|
208,267
|
|
|
238,257
|
|
|
819,202
|
|
|
818,602
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation
|
81,245
|
|
|
74,135
|
|
|
318,783
|
|
|
299,365
|
|
Interest,
net
|
59,514
|
|
|
56,827
|
|
|
243,577
|
|
|
238,378
|
|
Selling, general and
administrative (including non-cash share based
payment expense of $1,556 and $1,077 for the three months ended
and $5,537 and $4,244 for the twelve months ended December 31,
2015 and 2014, respectively)
|
13,535
|
|
|
13,955
|
|
|
56,198
|
|
|
55,773
|
|
Impairment of
aircraft
|
17,477
|
|
|
26,988
|
|
|
119,835
|
|
|
93,993
|
|
Maintenance and other
costs
|
2,376
|
|
|
2,017
|
|
|
11,502
|
|
|
7,239
|
|
Total
expenses
|
174,147
|
|
|
173,922
|
|
|
749,895
|
|
|
694,748
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
|
|
|
|
Gain on sale of
flight equipment
|
14,983
|
|
|
9,762
|
|
|
58,017
|
|
|
23,146
|
|
Loss on
extinguishment of debt
|
—
|
|
|
—
|
|
|
—
|
|
|
(36,570)
|
|
Other
|
578
|
|
|
449
|
|
|
919
|
|
|
1,207
|
|
Total other income
(expense)
|
15,561
|
|
|
10,211
|
|
|
58,936
|
|
|
(12,217)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
continuing operations before income taxes
|
49,681
|
|
|
74,546
|
|
|
128,243
|
|
|
111,637
|
|
Income tax
provision
|
734
|
|
|
2,938
|
|
|
12,771
|
|
|
13,863
|
|
Earnings of
unconsolidated equity method investment, net of tax
|
1,694
|
|
|
1,156
|
|
|
6,257
|
|
|
3,054
|
|
Net income
|
$
|
50,641
|
|
|
$
|
72,764
|
|
|
$
|
121,729
|
|
|
$
|
100,828
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common
share — Basic:
|
|
|
|
|
|
|
|
|
|
|
|
Net income per
share
|
$
|
0.63
|
|
|
$
|
0.90
|
|
|
$
|
1.50
|
|
|
$
|
1.25
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common
share — Diluted:
|
|
|
|
|
|
|
|
|
|
|
|
Net income per
share
|
$
|
0.63
|
|
|
$
|
0.90
|
|
|
$
|
1.50
|
|
|
$
|
1.25
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends declared
per share
|
$
|
0.24
|
|
|
$
|
0.22
|
|
|
$
|
0.90
|
|
|
$
|
0.82
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aircastle Limited
and Subsidiaries
|
Consolidated
Statements of Cash Flows
|
(Dollars in
thousands)
|
|
|
|
Years Ended
December 31,
|
|
|
2015
|
|
2014
|
Cash flows from
operating activities:
|
|
|
|
|
|
Net income
|
$
|
121,729
|
|
|
$
|
100,828
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
Depreciation
|
318,783
|
|
|
299,365
|
|
Amortization of
deferred financing costs
|
14,878
|
|
|
13,961
|
|
Amortization of net
lease discounts and lease incentives
|
10,664
|
|
|
6,172
|
|
Deferred income
taxes
|
(6,889)
|
|
|
2,863
|
|
Non-cash share based
payment expense
|
5,537
|
|
|
4,244
|
|
Cash flow hedges
reclassified into earnings
|
24,023
|
|
|
34,979
|
|
Security deposits and
maintenance payments included in earnings
|
(35,843)
|
|
|
(107,031)
|
|
Gain on the sale of
flight equipment
|
(58,017)
|
|
|
(23,146)
|
|
Loss on
extinguishment of debt
|
—
|
|
|
36,570
|
|
Impairment of
aircraft
|
119,835
|
|
|
93,993
|
|
Other
|
(896)
|
|
|
(878)
|
|
Changes on certain
assets and liabilities:
|
|
|
|
|
|
Accounts
receivable
|
(5,406)
|
|
|
(509)
|
|
Other
assets
|
(5,033)
|
|
|
(11,146)
|
|
Accounts payable,
accrued expenses and other liabilities
|
7,255
|
|
|
1,345
|
|
Lease rentals
received in advance
|
15,665
|
|
|
7,176
|
|
Net cash provided by
operating activities
|
526,285
|
|
|
458,786
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
Acquisition and
improvement of flight equipment
|
(1,320,669)
|
|
|
(1,672,460)
|
|
Proceeds from sale of
flight equipment
|
562,518
|
|
|
832,961
|
|
Restricted cash and
cash equivalents related to sale of flight equipment
|
(17,000)
|
|
|
—
|
|
Aircraft purchase
deposits and progress payments, net of returned deposits and
aircraft sales deposits
|
(6,812)
|
|
|
—
|
|
Net investment in
finance leases
|
(91,648)
|
|
|
(14,258)
|
|
Collections on
finance leases
|
9,559
|
|
|
10,312
|
|
Unconsolidated equity
method investment and associated costs
|
—
|
|
|
(18,255)
|
|
Distributions from
unconsolidated equity method investment in excess of
earnings
|
—
|
|
|
667
|
|
Other
|
(610)
|
|
|
(569)
|
|
Net cash used in
investing activities
|
(864,662)
|
|
|
(861,602)
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
Issuance of shares
net of repurchases
|
(20,881)
|
|
|
(2,092)
|
|
Proceeds from notes
and term debt financings
|
975,000
|
|
|
1,003,200
|
|
Securitization and
term debt financing repayments
|
(681,393)
|
|
|
(984,517)
|
|
Deferred financing
costs
|
(11,881)
|
|
|
(15,843)
|
|
Restricted secured
liquidity facility collateral
|
—
|
|
|
42,000
|
|
Liquidity
facility
|
—
|
|
|
(42,000)
|
|
Restricted cash and
cash equivalents related to financing activities
|
17,747
|
|
|
23,889
|
|
Debt extinguishment
costs
|
—
|
|
|
(32,835)
|
|
Security deposits and
maintenance payments received
|
152,391
|
|
|
178,805
|
|
Security deposits and
maintenance payments returned
|
(33,398)
|
|
|
(152,900)
|
|
Payments for
terminated cash flow hedges and payment for option
|
—
|
|
|
(33,427)
|
|
Dividends
paid
|
(72,960)
|
|
|
(66,421)
|
|
Net cash provided by
(used in) financing activities
|
324,625
|
|
|
(82,141)
|
|
Net increase in
cash and cash equivalents
|
(13,752)
|
|
|
(484,957)
|
|
Cash and cash
equivalents at beginning of year
|
169,656
|
|
|
654,613
|
|
Cash and cash
equivalents at end of year
|
$
|
155,904
|
|
|
$
|
169,656
|
|
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,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
Revenues
|
$
|
208,267
|
|
$
|
238,257
|
|
$
|
819,202
|
|
$
|
818,602
|
|
|
|
|
|
|
|
|
EBITDA
|
$
|
192,510
|
|
$
|
205,584
|
|
$
|
707,524
|
|
$
|
658,606
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$
|
210,972
|
|
$
|
233,200
|
|
$
|
832,105
|
|
$
|
792,283
|
|
|
|
|
|
|
|
|
Adjusted net
income
|
$
|
54,264
|
|
$
|
80,145
|
|
$
|
142,271
|
|
$
|
167,642
|
|
|
|
|
|
|
|
|
Adjusted net income
allocable to common shares
|
$
|
53,828
|
|
$
|
79,545
|
|
$
|
141,191
|
|
$
|
166,425
|
Per common share –
Basic
|
$
|
0.67
|
|
$
|
0.99
|
|
$
|
1.75
|
|
$
|
2.07
|
Per common share –
Diluted
|
$
|
0.67
|
|
$
|
0.99
|
|
$
|
1.75
|
|
$
|
2.07
|
|
|
|
|
|
|
|
|
Basic common shares
outstanding
|
80,263
|
|
80,390
|
|
80,489
|
|
80,389
|
Diluted common shares
outstanding
|
80,263
|
|
80,390
|
|
80,489
|
|
80,389
|
|
|
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,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
(Dollars in
thousands)
|
Net income
|
$
|
50,641
|
|
|
$
|
72,764
|
|
|
$
|
121,729
|
|
|
$
|
100,828
|
|
Depreciation
|
81,245
|
|
|
74,135
|
|
|
318,783
|
|
|
299,365
|
|
Amortization of net
lease discounts and lease incentives
|
376
|
|
|
(1,080)
|
|
|
10,664
|
|
|
6,172
|
|
Interest,
net
|
59,514
|
|
|
56,827
|
|
|
243,577
|
|
|
238,378
|
|
Income tax
provision
|
734
|
|
|
2,938
|
|
|
12,771
|
|
|
13,863
|
|
EBITDA
|
$
|
192,510
|
|
|
$
|
205,584
|
|
|
$
|
707,524
|
|
|
$
|
658,606
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
Impairment of
aircraft
|
17,477
|
|
|
26,988
|
|
|
119,835
|
|
|
93,993
|
|
Loss on
extinguishment of debt
|
—
|
|
|
—
|
|
|
—
|
|
|
36,570
|
|
Non-cash share
based payment expense
|
1,556
|
|
|
1,077
|
|
|
5,537
|
|
|
4,244
|
|
Gain on mark
to market of interest rate derivative contracts
|
(571)
|
|
|
(449)
|
|
|
(791)
|
|
|
(1,130)
|
|
Adjusted EBITDA
|
$
|
210,972
|
|
|
$
|
233,200
|
|
|
$
|
832,105
|
|
|
$
|
792,283
|
|
|
|
|
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
December 31,
|
|
Twelve Months
Ended December 31,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
(Dollars in
thousands)
|
Net income
|
$
|
50,641
|
|
|
$
|
72,764
|
|
|
$
|
121,729
|
|
|
$
|
100,828
|
|
Loss on extinguishment
of debt(2)
|
—
|
|
|
—
|
|
|
—
|
|
|
36,570
|
|
Ineffective portion
and termination of hedges(1)
|
(54)
|
|
|
619
|
|
|
455
|
|
|
660
|
|
Gain on mark to market
of interest rate derivative contracts(2)
|
(571)
|
|
|
(449)
|
|
|
(791)
|
|
|
(1,130)
|
|
Non-cash share based
payment expense(3)
|
1,556
|
|
|
1,077
|
|
|
5,537
|
|
|
4,244
|
|
Term
Financing No. 1 hedge loss amortization
charges(1)
|
—
|
|
|
3,310
|
|
|
4,401
|
|
|
14,854
|
|
Securitization
No. 1 hedge loss amortization charges (1)
|
2,692
|
|
|
2,824
|
|
|
10,940
|
|
|
11,616
|
|
Adjusted net
income
|
$
|
54,264
|
|
|
$
|
80,145
|
|
|
$
|
142,271
|
|
|
$
|
167,642
|
|
|
|
|
|
|
|
|
|
(1) Included in
Interest, net.
|
|
|
|
|
|
|
|
(2) Included in
Other income (expense).
|
|
|
|
|
|
|
|
(3) Included in
Selling, general and administrative expenses.
|
|
|
|
|
|
|
|
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
|
2008
|
|
$333,626
|
|
|
|
$6,525
|
|
$201,759
|
|
|
|
$138,392
|
|
$1,242,635
|
|
11.1%
|
2009
|
|
$327,641
|
|
|
|
$1,162
|
|
$209,481
|
|
|
|
$119,322
|
|
$1,205,284
|
|
9.9%
|
2010
|
|
$356,530
|
|
|
|
$7,084
|
|
$220,476
|
|
|
|
$143,138
|
|
$1,300,953
|
|
11.0%
|
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%
|
|
|
|
|
|
|
|
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 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
|
Net Cash Interest
Margin Calculation
|
(Dollars in
thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average NBV
of Flight
Equipment
|
|
Quarterly
Lease Rental
Revenue
|
|
Cash
Interest(1)
|
|
Annualized
Net
Cash Interest
Margin
|
|
Q1:11
|
|
$
|
4,041,967
|
|
$
|
141,116
|
|
$
|
41,278
|
|
9.9%
|
|
Q2:11
|
|
$
|
4,143,446
|
|
$
|
143,356
|
|
$
|
43,217
|
|
9.7%
|
|
Q3:11
|
|
$
|
4,222,512
|
|
$
|
145,890
|
|
$
|
42,066
|
|
9.8%
|
|
Q4:11
|
|
$
|
4,374,921
|
|
$
|
149,848
|
|
$
|
43,041
|
|
9.8%
|
|
Q1:12
|
|
$
|
4,388,008
|
|
$
|
152,242
|
|
$
|
44,969
|
|
9.8%
|
|
Q2:12
|
|
$
|
4,516,973
|
|
$
|
153,624
|
|
$
|
48,798
|
|
9.3%
|
|
Q3:12
|
|
$
|
4,602,185
|
|
$
|
159,546
|
|
$
|
41,373
|
|
10.3%
|
|
Q4:12
|
|
$
|
4,605,783
|
|
$
|
158,090
|
|
$
|
43,461
|
|
10.0%
|
|
Q1:13
|
|
$
|
4,619,204
|
|
$
|
156,590
|
|
$
|
48,591
|
|
9.4%
|
|
Q2:13
|
|
$
|
4,711,790
|
|
$
|
157,918
|
|
$
|
47,869
|
|
9.3%
|
|
Q3:13
|
|
$
|
4,717,877
|
|
$
|
161,148
|
|
$
|
47,682
|
|
9.6%
|
|
Q4:13
|
|
$
|
4,972,040
|
|
$
|
169,274
|
|
$
|
49,080
|
|
9.7%
|
|
Q1:14
|
|
$
|
5,168,851
|
|
$
|
174,335
|
|
$
|
51,685
|
|
9.5%
|
|
Q2:14
|
|
$
|
5,582,359
|
|
$
|
183,231
|
|
$
|
48,172
|
|
9.7%
|
|
Q3:14
|
|
$
|
5,412,299
|
|
$
|
178,886
|
|
$
|
44,820
|
|
9.9%
|
|
Q4:14
|
|
$
|
5,373,733
|
|
$
|
178,202
|
|
$
|
44,459
|
|
10.0%
|
|
Q1:15
|
|
$
|
5,637,513
|
|
$
|
177,146
|
|
$
|
50,235
|
|
9.0%
|
|
Q2:15
|
|
$
|
5,850,516
|
|
$
|
184,839
|
|
$
|
51,413
|
|
9.1%
|
|
Q3:15
|
|
$
|
5,926,459
|
|
$
|
188,037
|
|
$
|
51,428
|
|
9.2%
|
|
Q4:15
|
|
$
|
5,835,547
|
|
$
|
183,394
|
|
$
|
51,250
|
|
9.1%
|
|
|
|
(1) Excludes loan
termination payments of $3.2 million and $3.0 million in the second
quarter of 2011 and 2013 respectively.
|
Aircastle Limited
and Subsidiaries
|
Selected Financial
Guidance Elements for the First Quarter of 2016
|
($ in millions,
except for percentages)
|
(Unaudited)
|
|
|
Guidance
Item
|
Q1:16
|
|
|
Lease rental
revenue
|
$177 -
$181
|
|
|
Finance lease
revenue
|
$3 - $4
|
|
|
Maintenance
revenue
|
$0 - $2
|
|
|
Amortization of net
lease discounts and lease incentives
|
($4) -
($5)
|
|
|
SG&A
|
$13 - $15
|
|
|
Depreciation
|
$76 - $78
|
|
|
Interest,
net
|
$59 - $61
|
|
|
Gain on
sale
|
$8 - $10
|
|
|
Full year effective
tax rate
|
10% - 11%
|
|
|
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,
2015
|
|
Twelve Months
Ended
December 31,
2015
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
shares:
|
Shares
|
|
Percent(1)
|
|
Shares
|
|
Percent(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
Common shares
outstanding – Basic
|
80,263
|
|
99.20%
|
|
|
80,489
|
|
|
99.24%
|
|
|
|
|
|
|
|
|
|
|
|
|
Unvested restricted
common shares
|
650
|
|
0.80%
|
|
|
616
|
|
|
0.76%
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
weighted-average shares outstanding
|
80,912
|
|
100.00%
|
|
|
81,105
|
|
|
100.00%
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
allocation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
$50,641
|
|
100.00%
|
|
|
$121,729
|
|
|
100.00%
|
|
Distributed and
undistributed earnings allocated to unvested restricted
shares
|
(407)
|
|
(0.80%)
|
|
|
(924)
|
|
|
(0.76%)
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings available to
common shares
|
$50,234
|
|
99.20%
|
|
|
$120,805
|
|
|
99.24%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net
income allocation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net
income
|
$54,264
|
|
100.00%
|
|
|
$142,271
|
|
|
100.00%
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts allocated to
unvested restricted shares
|
(436)
|
|
(0.80%)
|
|
|
(1,080)
|
|
|
(0.76%)
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts allocated to
common shares
|
$53,828
|
|
99.20%
|
|
|
$141,191
|
|
|
99.24%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) 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
December 31,
2014
|
|
Twelve Months
Ended
December 31,
2014
|
|
|
|
|
|
|
|
Weighted-average
shares:
|
|
Shares
|
|
Percent(1)
|
|
Shares
|
|
Percent(1)
|
|
|
|
|
|
|
|
|
|
|
|
Common shares
outstanding – Basic
|
|
80,390
|
|
|
99.25%
|
|
|
80,389
|
|
|
99.27%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unvested restricted
common shares
|
|
606
|
|
|
0.75%
|
|
|
588
|
|
|
0.73%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
weighted-average shares outstanding
|
|
80,996
|
|
|
100.00%
|
|
|
80,977
|
|
|
100.00%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
allocation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$72,764
|
|
|
100.00%
|
|
|
$100,828
|
|
|
100.00%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributed and
undistributed earnings allocated to unvested restricted
shares
|
|
(544)
|
|
|
(0.75%)
|
|
|
(732)
|
|
|
(0.73%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings available to
common shares
|
|
$72,220
|
|
|
99.25%
|
|
|
$100,096
|
|
|
99.27%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net
income allocation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net
income
|
|
$80,145
|
|
|
100.00%
|
|
|
$167,642
|
|
|
100.00%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts allocated to
unvested restricted shares
|
|
(600)
|
|
|
(0.75%)
|
|
|
(1,217)
|
|
|
(0.73%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts allocated to
common shares
|
|
$79,545
|
|
|
99.25%
|
|
|
$166,425
|
|
|
99.27%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
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-fourth-quarter-and-full-year-2015-results-300218561.html
SOURCE Aircastle Limited