STAMFORD, Conn., Aug. 6, 2015 /PRNewswire/ --
Second Quarter Highlights
- Net income of $41.8 million, or
$0.51 per diluted common share, vs.
$0.04 the prior year
- Cash ROE was 14.6% and net cash interest margin was 9.1%
- Acquired 19 aircraft for $553
million
- Ordered 25 new technology Embraer E-Jet E2 aircraft, with the
first delivery scheduled in 2018
- Sold ten aircraft for approximately $180
million and designated for sale two freighter aircraft;
total net pre-tax contribution of $16.2
million
- 37th consecutive quarterly dividend declared by
Aircastle's Board of Directors
Aircastle Limited (the "Company" or "Aircastle") (NYSE: AYR)
reported second quarter 2015 net income of $41.8 million, or $0.51 per diluted common share and adjusted net
income of $47.2 million, or
$0.58 per diluted common share on
total revenues of $204.6
million.
Commenting on the results, Ron
Wainshal, Aircastle's CEO, stated "We are continuing to
execute on our strategy of growing while upgrading Aircastle's
portfolio. So far this year we've originated $1.0 billion in large, value-add deals with our
airline customers while taking timely advantage of strong market
conditions to sell older assets at attractive pricing. In the
course of doing so, we drove our cash ROE to 14.6% during the
second quarter."
Mr. Wainshal added, "Aircastle generated strong operating
results by managing our portfolio through prudent and proactive
initiatives. Our portfolio utilization during the second
quarter was in excess of 99% as we successfully redeployed ahead of
schedule all of the aircraft we removed from Russia earlier this year. Moreover, we
continue to capitalize on strong lease demand by securing leases
for nearly all of the aircraft we have coming off lease through
next year, pushing the average remaining lease term to 5.8 years,
nearly a year longer than a year ago."
___________________________
Note: Non-GAAP items reconciled in the Appendix.
|
Financial
Results
|
|
|
|
|
(in thousands, except
share data)
|
Three Months
Ended
June
30,
|
|
Six Months
Ended
June
30,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
Total
Revenues
|
$ 204,565
|
|
$ 226,146
|
|
$ 398,861
|
|
$ 402,749
|
|
|
|
|
|
|
|
|
|
Lease Rental and
Finance Lease Revenues
|
$ 186,716
|
|
$ 187,128
|
|
$ 365,469
|
|
$ 365,450
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$ 214,608
|
|
$ 211,662
|
|
$ 404,822
|
|
$ 381,675
|
|
|
|
|
|
|
|
|
|
Net income
|
$ 41,808
|
|
$ 3,136
|
|
$ 85,077
|
|
$ 8,913
|
|
Per common share -
Diluted
|
$ 0.51
|
|
$ 0.04
|
|
$ 1.05
|
|
$ 0.11
|
|
|
|
|
|
|
|
|
|
Adjusted net
income
|
$ 47,229
|
|
$ 47,692
|
|
$ 97,686
|
|
$ 60,952
|
|
Per common share -
Diluted
|
$ 0.58
|
|
$ 0.59
|
|
$ 1.20
|
|
$ 0.75
|
Second Quarter Results
Total revenues were $204.6
million, a decrease of $21.6
million, or 9.5%, from the previous year, driven by lower
maintenance revenues of $14.8
million. During the second quarter of 2014, we
recorded $36.2 million of maintenance
revenue related to nine aircraft that were sold, parted out or
transitioned.
Lease rental and finance lease revenues during the second
quarter were $186.7 million.
The small change in this revenue versus last year reflects the
combined effects of asset acquisitions, aircraft dispositions and
lease extensions.
Adjusted EBITDA for the second quarter was $214.6 million, up 1.4% versus the prior year's
quarter reflecting higher gains from aircraft sales of $20.2 million, partially offset by lower
maintenance revenue of $14.8
million.
Adjusted net income for the quarter was $47.2 million, down 1.0% year over year.
Higher gains from aircraft sales of $20.2
million were offset by lower total revenues of $21.6 million.
Net income for the second quarter was $41.8 million versus $3.1
million the previous year. In the second quarter of
2014 we incurred bond redemption expenses of $36.6 million associated with refinancing
$450 million of 9.75% senior
unsecured notes due in 2018.
Aviation Assets
During the second quarter of 2015, we acquired nineteen aircraft
for $553 million and committed to
acquire six additional aircraft in 2015 for approximately
$200 million. Year-to-date, we
acquired or committed to acquire a total of 31 aircraft that will
close in 2015, for approximately $1.0
billion. The aircraft acquired during the first half
of 2015 had a weighted average age of less than four years, an
average lease term of nearly nine years, and all but one were
narrow-body aircraft.
During the second quarter of 2015, we completed the sale of ten
aircraft, including two older A330s and one 767-300ER. We
also designated for sale in the third quarter two MD-11 freighter
aircraft. The total pre-tax impact from this activity during
the second quarter of 2015 was approximately $16.2 million.
|
Q2 2015
Opportunistic and
Exit Aircraft Sales
|
|
Number
|
|
|
|
Gain
on
|
|
|
|
|
|
$ in
thousands
|
|
of
|
|
Maintenance
|
|
Sale of
Flight
|
|
|
|
Pre-tax
|
|
|
Aircraft
|
|
Revenue
|
|
Equipment
|
|
Impairment
|
|
Impact
|
|
Opportunistic
Sales
|
|
8
|
|
|
$
|
—
|
|
|
$
|
19,572
|
|
|
$
|
—
|
|
|
$
|
19,572
|
|
|
Exit Sales
|
|
2
|
|
|
7,034
|
|
|
1,530
|
|
|
(5,328)
|
|
|
3,236
|
|
|
Total
Sales
|
|
10
|
|
|
7,034
|
|
|
21,102
|
|
|
(5,328)
|
|
|
22,808
|
|
|
Freighter Exits
(1)
|
|
2
|
|
|
11,200
|
|
|
—
|
|
|
(17,852)
|
|
|
(6,652)
|
|
|
Total
|
|
12
|
|
|
$
|
18,234
|
|
|
$
|
21,102
|
|
|
$
|
(23,180)
|
|
|
$
|
16,156
|
|
|
|
|
|
|
|
|
|
|
|
|
_______________
(1) We intend to sell these freighter aircraft in the third
quarter of 2015.
As of June 30, 2015, Aircastle
owned 161 aircraft having a net book value of $6.1 billion. We also manage five aircraft with a
net book value of approximately $500 million
dollars on behalf of our joint venture with Ontario
Teachers' Pension Plan.
|
|
|
Owned
Aircraft as of
June 30,
2015
|
|
Owned
Aircraft as of
June 30,
2014
|
|
Total Flight
Equipment Held for Lease ($ mils.)
|
|
|
|
|
$
|
6,076
|
|
|
$
|
5,651
|
|
|
Unencumbered Flight
Equipment Held for Lease ($ mils.)
|
|
|
|
|
$
|
3,705
|
|
|
$
|
3,187
|
|
|
Number of
Aircraft
|
|
|
|
161
|
|
|
148
|
|
|
Number of
Unencumbered Aircraft
|
|
|
|
110
|
|
|
91
|
|
|
Passenger Aircraft (%
of NBV)
|
|
|
|
87%
|
|
|
84%
|
|
|
Weighted Average
Fleet Age (years)(2)
|
|
|
|
8.0
|
|
|
8.6
|
|
|
Weighted Average
Remaining Lease Term
(years)(3)
|
|
|
|
5.8
|
|
|
4.9
|
|
|
Weighted Average
Fleet Utilization for the period
ended(4)
|
|
|
|
99.1%
|
|
|
100.0%
|
|
|
Portfolio Yield for
the period ended(5)
|
|
|
|
12.6%
|
|
|
13.1%
|
|
|
Net Cash Interest
Margin(6)
|
|
|
|
9.1%
|
|
|
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
by net book value.
|
|
(3)
|
Weighted average
remaining lease term by net book value.
|
|
(4)
|
Aircraft on-lease
days as a percent of total days in period weighted by net book
value.
|
|
(5)
|
Lease rental revenue
for the period as a percent of the average net book value of flight
equipment held for lease for the period; quarterly information is
annualized.
|
|
(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.
|
Embraer Order
On June 15, 2015, Aircastle
entered into an agreement to purchase 25 new technology E-Jet E2
aircraft from Embraer S.A. The deliveries are scheduled to
begin in 2018 at a rate of roughly seven units per year through
2021. The agreement includes purchase rights for an
additional 25 units, bringing the total potential order to up to 50
aircraft.
Financing Activity
In the second quarter of 2015, we closed floating rate loans
with Bank of Tokyo Mitsubishi UFJ and Development Bank of
Japan, helping build our network
of strong global banking relationships. These loans, which
total $150 million, are secured by
two A330-300 aircraft acquired during the fourth quarter of
2014.
During the second quarter of 2015, we also extended the maturity
of our $600 million revolving credit
facility by one year, to May of 2019.
Common Dividend
On August 4, 2015, Aircastle's
Board of Directors declared a third quarter 2015 cash dividend on
its common shares of $0.22 per share,
payable on September 15, 2015 to
shareholders of record on August 31,
2015. This is our 37th consecutive
dividend.
Conference Call
In connection with this earnings release, management will host
an earnings conference call on Thursday,
August 6, 2015 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) 539-3612 (from within the U.S. and
Canada) or (719) 457-2085 (from
outside of the U.S. and Canada)
ten minutes prior to the scheduled start and referencing the
passcode "1175363".
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, September
5, 2015 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
"1175363".
About Aircastle Limited
Aircastle Limited acquires, leases and sells commercial jet
aircraft to airlines throughout the world. As of June 30, 2015, Aircastle's aircraft portfolio
consisted of 161 aircraft on lease with 52 customers located in 32
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 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.
|
Contact:
|
|
|
Aircastle Advisor
LLC
|
The IGB
Group
|
|
Frank Constantinople,
SVP Investor
Relations
|
Leon
Berman
|
|
Tel:
+1-203-504-1063
|
Tel:
+1-212-377-8483
|
|
fconstantinople@aircastle.com
|
lberman@igbir.com
|
|
Aircastle Limited
and Subsidiaries
|
|
Consolidated
Balance Sheets
|
|
(Dollars in
thousands, except share data)
|
|
|
June 30,
2015
|
|
December 31,
2014
|
|
(Unaudited)
|
|
|
|
ASSETS
|
|
|
|
|
Cash and cash
equivalents
|
$
|
242,941
|
|
|
$
|
169,656
|
|
|
Accounts
receivable
|
4,996
|
|
|
3,334
|
|
|
Restricted cash and
cash equivalents
|
161,854
|
|
|
98,884
|
|
|
Restricted liquidity
facility collateral
|
65,000
|
|
|
65,000
|
|
|
Flight equipment held
for lease, net of accumulated depreciation of $1,361,420 and
$1,294,063
|
5,953,555
|
|
|
5,579,718
|
|
|
Net investment in
finance leases
|
122,855
|
|
|
106,651
|
|
|
Unconsolidated equity
method investment
|
48,712
|
|
|
46,453
|
|
|
Other
assets
|
203,762
|
|
|
157,317
|
|
|
Total
assets
|
$
|
6,803,675
|
|
|
$
|
6,227,013
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
LIABILITIES
|
|
|
|
|
Borrowings from
secured financings
|
$
|
1,427,374
|
|
|
$
|
1,396,454
|
|
|
Borrowings from
unsecured financings
|
2,850,000
|
|
|
2,400,000
|
|
|
Accounts payable,
accrued expenses and other liabilities
|
156,045
|
|
|
140,863
|
|
|
Lease rentals
received in advance
|
56,785
|
|
|
53,216
|
|
|
Liquidity
facility
|
65,000
|
|
|
65,000
|
|
|
Security
deposits
|
111,765
|
|
|
117,689
|
|
|
Maintenance
payments
|
351,148
|
|
|
333,456
|
|
|
Total
liabilities
|
5,018,117
|
|
|
4,506,678
|
|
|
|
|
|
|
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, 81,181,495
shares issued and outstanding at June 30, 2015; and 80,983,249
shares issued and outstanding at December 31, 2014
|
812
|
|
|
810
|
|
|
Additional paid-in
capital
|
1,566,268
|
|
|
1,565,180
|
|
|
Retained
earnings
|
242,159
|
|
|
192,805
|
|
|
Accumulated other
comprehensive loss
|
(23,681)
|
|
|
(38,460)
|
|
|
Total shareholders'
equity
|
1,785,558
|
|
|
1,720,335
|
|
|
Total liabilities and
shareholders' equity
|
$
|
6,803,675
|
|
|
$
|
6,227,013
|
|
|
Aircastle Limited
and Subsidiaries
|
|
Consolidated
Statements of Income
|
|
(Dollars in
thousands, except per share amounts)
|
|
(Unaudited)
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
Revenues:
|
|
|
|
|
|
|
|
|
Lease rental
revenue
|
$
|
184,839
|
|
|
$
|
183,231
|
|
|
$
|
361,985
|
|
|
$
|
357,566
|
|
|
Finance lease
revenue
|
1,877
|
|
|
3,897
|
|
|
3,484
|
|
|
7,884
|
|
|
Amortization of lease
premiums, discounts and lease incentives
|
(4,351)
|
|
|
414
|
|
|
(8,175)
|
|
|
(6,177)
|
|
|
Maintenance
revenue
|
21,349
|
|
|
36,182
|
|
|
39,422
|
|
|
39,224
|
|
|
Total lease
revenue
|
203,714
|
|
|
223,724
|
|
|
396,716
|
|
|
398,497
|
|
|
Other
revenue
|
851
|
|
|
2,422
|
|
|
2,145
|
|
|
4,252
|
|
|
Total
revenues
|
204,565
|
|
|
226,146
|
|
|
398,861
|
|
|
402,749
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Depreciation
|
77,368
|
|
|
75,784
|
|
|
152,214
|
|
|
149,711
|
|
|
Interest,
net
|
61,551
|
|
|
60,494
|
|
|
123,682
|
|
|
124,757
|
|
|
Selling, general and
administrative (including non-cash share based payment expense of
$1,387 and $1,228 for the three months ended and $2,557 and $2,218
for the six months ended June 30, 2015 and 2014,
respectively)
|
14,699
|
|
|
14,057
|
|
|
28,631
|
|
|
28,001
|
|
|
Impairment of
Aircraft
|
23,955
|
|
|
28,306
|
|
|
23,955
|
|
|
46,569
|
|
|
Maintenance and other
costs
|
3,663
|
|
|
2,646
|
|
|
6,606
|
|
|
4,509
|
|
|
Total
expenses
|
181,236
|
|
|
181,287
|
|
|
335,088
|
|
|
353,547
|
|
|
|
|
|
|
|
|
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
|
Gain on sale of
flight equipment
|
21,102
|
|
|
884
|
|
|
27,355
|
|
|
1,994
|
|
|
Loss on
extinguishment of debt
|
—
|
|
|
(36,570)
|
|
|
—
|
|
|
(36,570)
|
|
|
Other
|
277
|
|
|
—
|
|
|
271
|
|
|
757
|
|
|
Total other income
(expense)
|
21,379
|
|
|
(35,686)
|
|
|
27,626
|
|
|
(33,819)
|
|
|
|
|
|
|
|
|
|
|
Income from
continuing operations before income taxes
|
44,708
|
|
|
9,173
|
|
|
91,399
|
|
|
15,383
|
|
|
Income tax
provision
|
4,465
|
|
|
6,558
|
|
|
9,328
|
|
|
7,441
|
|
|
Earnings of
unconsolidated equity method investment, net of tax
|
1,565
|
|
|
521
|
|
|
3,006
|
|
|
971
|
|
|
Net income
|
$
|
41,808
|
|
|
$
|
3,136
|
|
|
$
|
85,077
|
|
|
$
|
8,913
|
|
|
|
|
|
|
|
|
|
|
Earnings per common
share — Basic:
|
|
|
|
|
|
|
|
|
Net income per
share
|
$
|
0.51
|
|
|
$
|
0.04
|
|
|
$
|
1.05
|
|
|
$
|
0.11
|
|
|
|
|
|
|
|
|
|
|
Earnings per common
share — Diluted:
|
|
|
|
|
|
|
|
|
Net income per
share
|
$
|
0.51
|
|
|
$
|
0.04
|
|
|
$
|
1.05
|
|
|
$
|
0.11
|
|
|
|
|
|
|
|
|
|
|
Dividends declared
per share
|
$
|
0.22
|
|
|
$
|
0.20
|
|
|
$
|
0.44
|
|
|
$
|
0.40
|
|
|
Aircastle Limited
and Subsidiaries
|
|
Consolidated
Statements of Cash Flows
|
|
(Dollars in
thousands)
|
|
(Unaudited)
|
|
|
Six Months Ended
June 30,
|
|
2015
|
|
2014
|
|
Cash flows from
operating activities:
|
|
|
|
|
Net income
(loss)
|
$
|
85,077
|
|
|
$
|
8,913
|
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
Depreciation
|
152,214
|
|
|
149,711
|
|
|
Amortization of
deferred financing costs
|
7,465
|
|
|
6,987
|
|
|
Amortization of net
lease discounts and lease incentives
|
8,175
|
|
|
6,177
|
|
|
Deferred income
taxes
|
(1,363)
|
|
|
3,999
|
|
|
Non-cash share based
payment expense
|
2,557
|
|
|
2,218
|
|
|
Cash flow hedges
reclassified into earnings
|
14,343
|
|
|
18,181
|
|
|
Security deposits and
maintenance payments included in earnings
|
(22,382)
|
|
|
(40,006)
|
|
|
Gain on sale of
flight equipment
|
(27,355)
|
|
|
(1,994)
|
|
|
Loss on
extinguishment of debt
|
—
|
|
|
36,570
|
|
|
Impairment of
aircraft
|
23,955
|
|
|
46,569
|
|
|
Other
|
108
|
|
|
(91)
|
|
|
Changes in certain
assets and liabilities:
|
|
|
|
|
Accounts
receivable
|
(1,697)
|
|
|
(3,619)
|
|
|
Other
assets
|
(2,155)
|
|
|
(1,914)
|
|
|
Accounts payable,
accrued expenses and other liabilities
|
7,018
|
|
|
(20,438)
|
|
|
Lease rentals
received in advance
|
3,646
|
|
|
2,742
|
|
|
Net cash provided by
operating activities
|
249,606
|
|
|
214,005
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
Acquisition and
improvement of flight equipment and lease incentives
|
(797,136)
|
|
|
(834,467)
|
|
|
Proceeds from sale of
flight equipment
|
231,842
|
|
|
246,037
|
|
|
Restricted cash and
cash equivalents related to sale of flight equipment
|
(76,433)
|
|
|
(7,600)
|
|
|
Aircraft purchase
deposits and progress payments
|
(3,461)
|
|
|
(3,785)
|
|
|
Net investment in
finance leases
|
(24,000)
|
|
|
(14,258)
|
|
|
Collections on
finance leases
|
4,795
|
|
|
6,219
|
|
|
Other
|
(256)
|
|
|
87
|
|
|
Net cash used in
investing activities
|
(664,649)
|
|
|
(607,767)
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
Issuance of shares
net of repurchases
|
(1,960)
|
|
|
(2,091)
|
|
|
Proceeds from notes
and term debt financings
|
800,000
|
|
|
803,200
|
|
|
Securitization and
term debt financing repayments
|
(319,994)
|
|
|
(827,512)
|
|
|
Debt extinguishment
costs
|
—
|
|
|
(32,835)
|
|
|
Deferred financing
costs
|
(11,658)
|
|
|
(15,834)
|
|
|
Restricted liquidity
facility collateral
|
—
|
|
|
42,000
|
|
|
Liquidity
facility
|
—
|
|
|
(42,000)
|
|
|
Restricted cash and
cash equivalents related to financing activities
|
13,463
|
|
|
29,015
|
|
|
Security deposits and
maintenance payments received
|
71,536
|
|
|
83,144
|
|
|
Security deposits and
maintenance payments returned
|
(27,336)
|
|
|
(44,577)
|
|
|
Payments for
terminated cash flow hedges
|
—
|
|
|
(33,427)
|
|
|
Dividends
paid
|
(35,723)
|
|
|
(32,402)
|
|
|
Net cash provided by
(used in) financing activities
|
488,328
|
|
|
(73,319)
|
|
|
Net increase
(decrease) in cash and cash equivalents
|
73,285
|
|
|
(467,081)
|
|
|
Cash and cash
equivalents at beginning of period
|
169,656
|
|
|
654,613
|
|
|
Cash and cash
equivalents at end of period
|
$
|
242,941
|
|
|
$
|
187,532
|
|
|
Aircastle Limited
and Subsidiaries
|
|
Selected Financial
Guidance Elements for the Third Quarter of 2015
|
|
($ in millions,
except for percentages)
|
|
(Unaudited)
|
|
|
Guidance
Item
|
Q3:15(1)
|
|
Lease rental
revenue
|
$182 -
$186
|
|
Finance lease
revenue
|
$1 - $2
|
|
Maintenance
revenue
|
$2 - $4
|
|
Amortization of net
lease discounts and lease incentives
|
($5) –
($6)
|
|
SG&A
|
$14 - $15
|
|
Depreciation
|
$76 - $78
|
|
Interest, net
(2)
|
$60 - $62
|
|
Gain on
sale
|
$12 - $15
|
|
Full year effective
tax rate
|
10% - 11%
|
|
(1)
|
Excludes the impact
of lease end part outs.
|
|
(2)
|
Includes non-cash
hedge loss amortization charges related to the payoff of
Securitization No.1 of $2.7 million.
|
|
Aircastle Limited
and Subsidiaries
|
|
Supplemental
Financial Information
|
|
(Amount in
thousands, except per share amounts)
|
|
(Unaudited)
|
|
|
Three Months
Ended
June
30,
|
|
Six Months
Ended
June
30,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
Revenues
|
$ 204,565
|
|
$ 226,146
|
|
$ 398,861
|
|
$ 402,749
|
|
|
|
|
|
|
|
|
|
EBITDA
|
$ 189,543
|
|
$ 145,558
|
|
$ 378,476
|
|
$ 296,999
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$ 214,608
|
|
$ 211,662
|
|
$ 404,822
|
|
$ 381,675
|
|
|
|
|
|
|
|
|
|
Adjusted net
income
|
$ 47,229
|
|
$ 47,692
|
|
$ 97,686
|
|
$ 60,952
|
|
|
|
|
|
|
|
|
|
Adjusted net income
allocable to common shares
|
$ 46,851
|
|
$ 47,313
|
|
$ 96,984
|
|
$ 60,521
|
|
Per common share -
Basic
|
$ 0.58
|
|
$ 0.59
|
|
$ 1.20
|
|
$ 0.75
|
|
Per common share -
Diluted
|
$ 0.58
|
|
$ 0.59
|
|
$ 1.20
|
|
$ 0.75
|
|
|
|
|
|
|
|
|
|
Basic common shares
outstanding
|
80,566
|
|
80,390
|
|
80,565
|
|
80,389
|
|
Diluted common shares
outstanding
|
80,566
|
|
80,390
|
|
80,565
|
|
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
June
30,
|
|
Six Months
Ended
June
30,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
(Dollars in
thousands)
|
|
Net income
|
$
|
41,808
|
|
|
$
|
3,136
|
|
|
$
|
85,077
|
|
|
$
|
8,913
|
|
|
Depreciation
|
77,368
|
|
|
75,784
|
|
|
152,214
|
|
|
149,711
|
|
|
Amortization of net
lease discounts and lease incentives
|
4,351
|
|
|
(414)
|
|
|
8,175
|
|
|
6,177
|
|
|
Interest,
net
|
61,551
|
|
|
60,494
|
|
|
123,682
|
|
|
124,757
|
|
|
Income tax
provision
|
4,465
|
|
|
6,558
|
|
|
9,328
|
|
|
7,441
|
|
|
EBITDA
|
189,543
|
|
|
145,558
|
|
|
378,476
|
|
|
296,999
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
Impairment of
aircraft
|
23,955
|
|
|
28,306
|
|
|
23,955
|
|
|
46,569
|
|
|
Loss on
extinguishment of debt
|
—
|
|
|
36,570
|
|
|
—
|
|
|
36,570
|
|
|
Non-cash share
based payment expense
|
1,387
|
|
|
1,228
|
|
|
2,557
|
|
|
2,218
|
|
|
Gain on mark
to market of interest rate derivative contracts
|
(277)
|
|
|
—
|
|
|
(166)
|
|
|
(681)
|
|
|
Adjusted EBITDA
|
$
|
214,608
|
|
|
$
|
211,662
|
|
|
$
|
404,822
|
|
|
$
|
381,675
|
|
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
June
30,
|
|
Six Months
Ended
June
30,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
(Dollars in
thousands)
|
|
Net income
|
$
|
41,808
|
|
|
$
|
3,136
|
|
|
$
|
85,077
|
|
|
$
|
8,913
|
|
|
Loss on extinguishment
of debt(2)
|
—
|
|
|
36,570
|
|
|
—
|
|
|
36,570
|
|
|
Ineffective portion
and termination of hedges(1)
|
294
|
|
|
9
|
|
|
294
|
|
|
62
|
|
|
Gain on mark to market
of interest rate derivative contracts(2)
|
(277)
|
|
|
—
|
|
|
(166)
|
|
|
(681)
|
|
|
Non-cash share based payment expense(3)
|
1,387
|
|
|
1,228
|
|
|
2,557
|
|
|
2,218
|
|
|
Term
Financing No. 1 hedge loss amortization
charges(1)
|
1,275
|
|
|
3,839
|
|
|
4,401
|
|
|
7,943
|
|
|
Securitization No. 1 hedge loss amortization charges
(1)
|
2,742
|
|
|
2,910
|
|
|
5,523
|
|
|
5,927
|
|
|
Adjusted net
income
|
$
|
47,229
|
|
|
$
|
47,692
|
|
|
$
|
97,686
|
|
|
$
|
60,952
|
|
|
(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)
|
|
|
Cash Flow from
Operations
|
Collections on
Finance Leases
|
Gain (Loss) on
Sale of Eqt.
|
Depreciation
|
Distributions from
JV
|
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%
|
|
LTM
|
$494,387
|
$8,888
|
$48,507
|
$301,868
|
$131
|
$250,045
|
$1,711,152
|
14.6%
|
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%
|
|
(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
|
|
Reconciliation of
GAAP to Non-GAAP Measures
|
|
Reconciliation of
Net Income Allocable to Common Shares
|
|
(In
thousands)
|
|
(Unaudited)
|
|
|
Three Months
Ended
June 30,
2015
|
|
Six Months
Ended
June 30,
2015
|
|
|
Weighted-average
shares(1):
|
Shares
|
|
Percent(2)
|
|
Shares
|
|
Percent(2)
|
|
|
Common shares
outstanding – Basic
|
80,566
|
|
|
99.20%
|
|
|
80,565
|
|
|
99.28%
|
|
|
Unvested restricted
common shares
|
650
|
|
|
0.80%
|
|
|
583
|
|
|
0.72%
|
|
|
Total
weighted-average shares outstanding
|
81,217
|
|
|
100.00%
|
|
|
81,149
|
|
|
100.00%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
allocation
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
$41,808
|
|
|
100.00%
|
|
|
$85,077
|
|
|
100.00%
|
|
|
Distributed and
undistributed earnings allocated to unvested restricted
shares
|
(335)
|
|
|
(0.80%)
|
|
|
(611)
|
|
|
(0.72%)
|
|
|
Earnings available to
common shares
|
$41,473
|
|
|
99.20%
|
|
|
$84,466
|
|
|
99.28%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net
income allocation
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net
income
|
$47,229
|
|
|
100.00%
|
|
|
$97,686
|
|
|
100.00%
|
|
|
Amounts allocated to
unvested restricted shares
|
(378)
|
|
|
(0.80%)
|
|
|
(702)
|
|
|
(0.72%)
|
|
|
Amounts allocated to
common shares
|
$46,851
|
|
|
99.20%
|
|
|
$96,984
|
|
|
99.28%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
For the three and six
months ended June 30, 2015 the company had no dilutive
shares.
|
|
(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
June 30,
2014
|
|
Six Months
Ended
June 30,
2014
|
|
Weighted-average
shares(1):
|
Shares
|
|
Percent(2)
|
|
Shares
|
|
Percent(2)
|
|
Common shares
outstanding – Basic
|
80,390
|
|
|
99.21%
|
|
|
80,389
|
|
|
99.29%
|
|
Unvested restricted
common shares
|
644
|
|
|
0.79%
|
|
|
572
|
|
|
0.71%
|
|
Total
weighted-average shares outstanding
|
81,034
|
|
|
100.00%
|
|
|
80,961
|
|
|
100.00%
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
allocation
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
$3,136
|
|
|
100.00%
|
|
|
$8,913
|
|
|
100.00%
|
|
Distributed and
undistributed earnings allocated to unvested restricted
shares
|
(25)
|
|
|
(0.79%)
|
|
|
(63)
|
|
|
(0.71%)
|
|
Earnings available to
common shares
|
$3,111
|
|
|
99.21%
|
|
|
$8,850
|
|
|
99.29%
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net
income allocation
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net
income
|
$47,692
|
|
|
100.00%
|
|
|
$60,952
|
|
|
100.00%
|
|
Amounts allocated to
unvested restricted shares
|
(379)
|
|
|
(0.79%)
|
|
|
(431)
|
|
|
(0.71%)
|
|
Amounts allocated to
common shares
|
$47,313
|
|
|
99.21%
|
|
|
$60,521
|
|
|
99.29%
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
For the three and six
months ended June 30, 2014 the company had no dilutive
shares.
|
|
(2)
|
Percentages rounded
to two decimal places.
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/aircastle-announces-second-quarter-2015-results-300124624.html
SOURCE Aircastle Limited