AYR Aircastle Limited

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

Pursuant to Section 13 OR 15(d)

of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported) May 7, 2015 (May 6, 2015)

 

 

Aircastle Limited

(Exact name of registrant as specified in its charter)

 

 

 

Bermuda		001-32959		98-0444035
(State or other jurisdiction of incorporation)		(Commission File Number)		(IRS Employer Identification No.)

 

c/o Aircastle Advisor LLC, 300 First Stamford Place, Stamford, Connecticut		06902
(Address of principal executive offices)		(Zip Code)

Registrant’s telephone number, including area code (203) 504-1020

(Former name or former address, if changed since last report.)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

¨	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

¨	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

¨	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

¨	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

 

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Section 2 – Financial Information

Item 2.02 Results of Operations and Financial Condition.

On May 6, 2015, Aircastle Limited (the “Company”) announced financial results for its first quarter 2015 as described in the press release furnished hereto as Exhibit 99.1, which is incorporated herein by reference.

The information furnished pursuant to this Current Report on Form 8-K, including the exhibit hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be incorporated by reference into any of the Company’s filings under the Securities Act of 1933, as amended, or the Exchange Act, unless expressly set forth as being incorporated by reference into such filing.

Section 9 – Financial Statements and Exhibits

Item 9.01 Financial Statements and Exhibits.

 

(d)

Exhibits

99.1 Press Release dated May 6, 2015 which is being furnished hereto pursuant to Item 2.02.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

Date: May 7, 2015

 

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EXHIBIT INDEX

 

Exhibit Number		Description
99.1		Press Release dated May 6, 2015

 

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Exhibit 99.1

 

FOR IMMEDIATE RELEASE

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 Announces First Quarter 2015 Results

Board Declares Second Quarter 2015 Dividend of $0.22 per Common Share

Key Financial Metrics

 

•

Total revenues were $194.3 million for the first quarter of 2015, up 10% versus the prior year

 

•

Net income was $43.3 million, or $0.53 per diluted common share versus $0.07 the prior year

 

•

Adjusted net income was $50.5 million, or $0.62 per diluted common share versus $0.16 the prior year

 

•

Adjusted EBITDA was $190.2 for the first quarter, up 12% versus the prior year

 

•

Cash ROE was 13.5% and net cash interest margin was 9.0%

Highlights

 

•

Closed or committed to acquire 25 aircraft for $770 million during 2015

 

•

Raised $500 million of 5.50% senior, unsecured notes maturing in 2022

 

•

36th consecutive quarterly dividend declared by Aircastle’s Board of Directors

Stamford, CT. May 6, 2015 – Aircastle Limited (the “Company” or “Aircastle”) (NYSE: AYR) reported first quarter 2015 net income of $43.3 million, or $0.53 per diluted common share and adjusted net income of $50.5 million, or $0.62 per diluted common share. The first quarter results included total revenues of $194.3 million, an increase of 10%, versus $176.6 million in the first quarter of 2014.

Commenting on the results, Ron Wainshal, Aircastle’s CEO, stated “We’re off to a strong start in 2015 as earnings and cash returns increased. We are finding attractive investments by delivering more unique and value-additive transactions to our customers, and so far this year we closed or committed to close $770 million in acquisitions. We continue to improve our portfolio quality, increased our average lease term to 5.6 years and secured new operators for all of the aircraft we removed from Russia over the past several months. During the first quarter, we further strengthened our funding capacity and flexibility by issuing $500 million of new unsecured notes and enlarging our revolving credit facility to $600 million.”

 

Note: Non-GAAP items reconciled in the Appendix.

 

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Mr. Wainshal continued, “Market conditions remain solid and, as a consequence, more investors are being drawn to our sector. We are capitalizing on this through our asset sales and capital market initiatives, yet we also remain optimistic about our ability to grow profitably by leveraging our differentiated business approach and our team strengths.”

Financial Results

 

(in thousands, except share data)		Three Months Ended March 31,
		2014				2015
Total Revenues		$	176,603			$	194,296
Adjusted EBITDA		$	170,013			$	190,214
Net income		$	5,777			$	43,269
Per common share—Diluted		$	0.07			$	0.53
Adjusted net income		$	13,260			$	50,457
Per common share—Diluted		$	0.16			$	0.62

First Quarter Results

Total revenues were $194.3 million, an increase of $17.7 million, or 10%, from the previous year, driven by higher maintenance revenues of $15.0 million. During the first quarter of 2014, we recorded $16.4 million of contra maintenance revenue in connection with engine restoration work completed by a lessee prior to the scheduled return of three aircraft.

Adjusted EBITDA for the first quarter was $190.2 million, up $20.2 million, or 12% from the first quarter of 2014, due primarily to higher maintenance revenues of $15.0 million and higher gains from aircraft sales of $5.1 million.

Adjusted net income for the quarter was $50.5 million, up $37.2 million year over year. The increase was due primarily to higher total revenues of $17.7 million and lower non-cash aircraft impairment charges of $18.3 million.

Aviation Assets

During the first quarter of 2015, we acquired six aircraft for $254 million and are currently committed to acquire an additional 19 aircraft for $515 million. The aircraft acquired during the first quarter had a weighted average age of less than two years and are on long term leases.

Also during the first quarter of 2015, we completed the profitable sale of two aircraft leased to an airline based in India and other flight equipment for a total of $50.5 million.

 

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As of March 31, 2015, Aircastle owned 152 aircraft having a net book value of $5.8 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 March 31, 2014(1)				Owned Aircraft as of March 31, 2015(1)
Total Flight Equipment Held for Lease ($ mils.)		$	5,822			$	5,817
Unencumbered Flight Equipment Held for Lease ($ mils.)		$	3,280			$	3,497
Number of Aircraft			164				152
Number of Unencumbered Aircraft			104				99
Passenger Aircraft (% of NBV)			84	%			86	%
Freighter Aircraft (% of NBV)			16	%			14	%
Weighted Average Fleet Age (years)(2)			9.1				8.3
Weighted Average Remaining Lease Term (years)(3)			4.8				5.6
Weighted Average Fleet Utilization for the year ended(4)			98.9	%			98.7	%
Portfolio Yield for the year ended(5)			13.5	%			12.6	%
Net Cash Interest Margin(6)			9.5	%			9.0	%

 

(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.

Financing Activity

During the first quarter of 2015, we issued $500 million in unsecured Senior Notes due 2022 bearing a coupon of 5.50% at par, and further increased the size of our unsecured revolving credit facility to $600 million. In doing so, we maintained the weighted average maturity of our debt at 4.4 years, enhanced our financial flexibility and obtained capital to fund recent acquisitions.

Common Dividend

On May 4, 2015, Aircastle’s Board of Directors declared a second quarter 2015 cash dividend on its common shares of $0.22 per share, payable on June 15, 2015 to shareholders of record on May 29, 2015. This is our 36^th consecutive dividend.

Conference Call

In connection with this earnings release, management will host an earnings conference call on Wednesday, May 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) 337-8198 (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 “8126530”.

 

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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 Friday, June 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 “8126530”.

About Aircastle Limited

Aircastle Limited acquires, leases and sells commercial jet aircraft to airlines throughout the world. As of March 31, 2015, Aircastle’s aircraft portfolio consisted of 152 aircraft on lease with 54 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 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.

 

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Aircastle Limited and Subsidiaries

Consolidated Balance Sheets

(Dollars in thousands, except share data)

 

		December 31, 2014				March 31, 2015
						(Unaudited)
ASSETS
Cash and cash equivalents		$	169,656			$	329,992
Accounts receivable			3,334				2,386
Restricted cash and cash equivalents			98,884				86,961
Restricted liquidity facility collateral			65,000				65,000
Flight equipment held for lease, net of accumulated depreciation of $1,294,063 and $1,362,647			5,579,718				5,712,950
Net investment in finance leases			106,651				104,377
Unconsolidated equity method investment			46,453				47,842
Other assets			157,317				174,858
Total assets		$	6,227,013			$	6,524,366
LIABILITIES AND SHAREHOLDERS’ EQUITY
LIABILITIES
Borrowings from secured financings		$	1,396,454			$	1,343,237
Borrowings from unsecured financings			2,400,000				2,700,000
Accounts payable, accrued expenses and other liabilities			140,863				157,175
Lease rentals received in advance			53,216				53,300
Liquidity facility			65,000				65,000
Security deposits			117,689				107,016
Maintenance payments			333,456				345,086
Total liabilities			4,506,678				4,770,814
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, 80,983,249 shares issued and outstanding at December 31, 2014; and 81,181,133 shares issued and outstanding at March 31, 2015			810				812
Additional paid-in capital			1,565,180				1,564,881
Retained earnings			192,805				218,214
Accumulated other comprehensive loss			(38,460	)			(30,355	)
Total shareholders’ equity			1,720,335				1,753,552
Total liabilities and shareholders’ equity		$	6,227,013			$	6,524,366

 

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Aircastle Limited and Subsidiaries

Consolidated Statements of Income

(Dollars in thousands, except per share amounts)

(Unaudited)

 

		Three Months Ended March 31,
		2014				2015
Revenues:
Lease rental revenue		$	174,335			$	177,146
Finance lease revenue			3,987				1,607
Amortization of lease premiums, discounts and lease incentives			(6,591	)			(3,824	)
Maintenance revenue			3,042				18,073
Total lease revenue			174,773				193,002
Other revenue			1,830				1,294
Total revenues			176,603				194,296
Operating expenses:
Depreciation			73,927				74,846
Interest, net			64,263				62,131
Selling, general and administrative (including non-cash share based payment expense of $990 and $1,170 for the three months ended March 31, 2014 and 2015, respectively)			13,944				13,932
Impairment of Aircraft			18,263				—
Maintenance and other costs			1,863				2,943
Total expenses			172,260				153,852
Other income (expense):
Gain on sale of flight equipment			1,110				6,253
Other			757				(6	)
Total other income (expense)			1,867				6,247
Income from continuing operations before income taxes			6,210				46,691
Income tax provision			883				4,863
Earnings of unconsolidated equity method investment, net of tax			450				1,441
Net income		$	5,777			$	43,269
Earnings per common share — Basic:
Net income per share		$	0.07			$	0.53
Earnings per common share — Diluted:
Net income per share		$	0.07			$	0.53
Dividends declared per share		$	0.200			$	0.220

 

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Aircastle Limited and Subsidiaries

Consolidated Statements of Cash Flows

(Dollars in thousands)

(Unaudited)

 

		Three Months Ended March 31,
		2014				2015
Cash flows from operating activities:
Net income (loss)		$	5,777			$	43,269
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation			73,927				74,846
Amortization of deferred financing costs			3,420				3,699
Amortization of net lease discounts and lease incentives			6,591				3,824
Deferred income taxes			1,347				2,110
Non-cash share based payment expense			990				1,170
Cash flow hedges reclassified into earnings			9,327				8,233
Security deposits and maintenance payments included in earnings			(14,786	)			(4,481	)
Gain on sale of flight equipment			(1,110	)			(6,253	)
Impairment of aircraft			18,263				—
Other			(2,162	)			209
Changes in certain assets and liabilities:
Accounts receivable			(1,496	)			948
Other assets			(1,171	)			(7,176	)
Accounts payable, accrued expenses and other liabilities			2,907				12,874
Lease rentals received in advance			1,167				(344	)
Net cash provided by operating activities			102,991				132,928
Cash flows from investing activities:
Acquisition and improvement of flight equipment and lease incentives			(663,038	)			(264,271	)
Proceeds from sale of flight equipment			28,018				50,525
Aircraft purchase deposits and progress payments			3,280				(1,250	)
Collections on finance leases			2,773				2,274
Other			(19	)			(372	)
Net cash used in investing activities			(628,986	)			(213,094	)
Cash flows from financing activities:
Issuance of shares net of repurchases			(2,091	)			(1,960	)
Proceeds from notes and term debt financings			803,200				500,000
Securitization and term debt financing repayments			(287,778	)			(253,681	)
Deferred financing costs			(14,755	)			(8,971	)
Restricted liquidity facility collateral			42,000				—
Liquidity facility			(42,000	)			—
Restricted cash and cash equivalents related to financing activities			20,310				11,923
Security deposits and maintenance payments received			41,901				33,365
Security deposits and maintenance payments returned			(25,681	)			(22,314	)
Payments for terminated cash flow hedges			(33,427	)			—
Dividends paid			(16,201	)			(17,860	)
Net cash provided by financing activities			485,478				240,502
Net increase (decrease) in cash and cash equivalents			(40,517	)			160,336
Cash and cash equivalents at beginning of period			654,613				169,656
Cash and cash equivalents at end of period		$	614,096			$	329,992

 

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Aircastle Limited and Subsidiaries

Selected Financial Guidance Elements for the Second Quarter of 2015

($ in millions, except for percentages)

(Unaudited)

 

Guidance Item		Q2:151
Lease rental revenue		$180 - $184
Finance lease revenue		$1 - $2
Maintenance revenue		$3 - $4
Amortization of net lease discounts and lease incentives		($4) - ($5)
SG&A		$13 - $14
Depreciation		$78 - $80
Interest, net 2		$62 - $64
Gain on sale		$2 - $10
Full year effective tax rate		11% - 12%

 

1.	Excludes the impact of lease end part outs.

2.	Includes non-cash hedge loss amortization charges related to the payoff of Term Financing No. 1 and Securitization No. 1 of $4.0 million.

 

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Aircastle Limited and Subsidiaries

Supplemental Financial Information

(Amount in thousands, except per share amounts)

(Unaudited)

 

		Three Months Ended March 31,
		2014				2015
Revenues		$	176,603			$	194,296
EBITDA		$	151,441			$	188,933
Adjusted EBITDA		$	170,013			$	190,214
Adjusted net income		$	13,260			$	50,457
Adjusted net income allocable to common shares		$	13,178			$	50,136
Per common share—Basic		$	0.16			$	0.62
Per common share—Diluted		$	0.16			$	0.62
Basic common shares outstanding			80,387				80,564
Diluted common shares outstanding			80,387				80,564

Refer to the selected information accompanying this press release for a reconciliation of GAAP to Non-GAAP information.

 

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Aircastle Limited and Subsidiaries

Reconciliation of GAAP to Non-GAAP Measures

EBITDA and Adjusted EBITDA Reconciliation

(Dollars in thousands)

(Unaudited)

 

		Three Months Ended March 31,
		2014				2015
Net income		$	5,777			$	43,269
Depreciation			73,927				74,846
Amortization of net lease discounts and lease incentives			6,591				3,824
Interest, net			64,263				62,131
Income tax provision			883				4,863
EBITDA		$	151,441			$	188,933
Adjustments:
Impairment of aircraft			18,263				—
Non-cash share based payment expense			990				1,170
(Gain) loss on mark to market of interest rate derivative contracts			(681	)			111
Adjusted EBITDA		$	170,013			$	190,214

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.

 

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Aircastle Limited and Subsidiaries

Reconciliation of GAAP to Non-GAAP Measures

Adjusted Net Income Reconciliation

(Dollars in thousands)

(Unaudited)

 

		Three Months Ended March 31,
		2014				2015
Net income		$	5,777			$	43,269
Ineffective portion and termination of hedges(1)			53				—
(Gain) loss on mark to market of interest rate derivative contracts(2)			(681	)			111
Non-cash share based payment expense(3)			990				1,170
Term Financing No. 1 hedge loss amortization charges(1)			4,104				3,126
Securitization No. 1 hedge loss amortization charges (1)			3,017				2,781
Adjusted net income		$	13,260			$	50,457

 

(1)	Included in Interest, net.

(2)	Included in Other income (expense).

(3)	Included in Selling, general and administrative expenses.

 

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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.				Dividends 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		$	488,723			$	9,813			$	28,289			$	300,284			$	279			$	226,820			$	1,682,857				13.5	%

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.

 

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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 Interest1				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			$	48,173				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	%

 

1.	Excludes loan termination payments of $3.2 million and $3.0 million in the second quarter of 2011 and 2013 respectively.

 

13

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Aircastle Limited and Subsidiaries

Reconciliation of GAAP to Non-GAAP Measures

Reconciliation of Net Income Allocable to Common Shares

(In thousands)

(Unaudited)

 

		Three Months Ended March 31, 2015
		Shares				Percent(2)
Weighted-average shares:
Common shares outstanding – Basic			80,564				99.36	%
Unvested restricted common shares			515				0.64	%
Total weighted-average shares outstanding			81,080				100.00	%
Net income allocation
Net income		$	43,269				100.00	%
Distributed and undistributed earnings allocated to unvested restricted shares			(275	)			(0.64	%)
Earnings available to common shares		$	42,994				99.36	%
Adjusted net income allocation
Adjusted net income		$	50,457				100.00	%
Amounts allocated to unvested restricted shares			(321	)			(0.64	%)
Amounts allocated to common shares		$	50,136				99.36	%

 

(1)	For the three months ended March 31, 2015 the company had no dilutive shares.

(2)	Percentages rounded to two decimal places.

 

14

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Aircastle Limited and Subsidiaries

Reconciliation of GAAP to Non-GAAP Measures

Reconciliation of Net Income Allocable to Common Shares

(In thousands)

(Unaudited)

 

		Three Months Ended March 31, 2014
		Shares				Percent(2)
Weighted-average shares:
Common shares outstanding – Basic			80,387				99.38	%
Unvested restricted common shares			501				0.62	%
Total weighted-average shares outstanding			80,888				100.00	%
Net income allocation
Net income		$	5,777				100.00	%
Distributed and undistributed earnings allocated to unvested restricted shares			(36	)			(0.62	%)
Earnings available to common shares		$	5,741				99.38	%
Adjusted net income allocation
Adjusted net income		$	13,260				100.00	%
Amounts allocated to unvested restricted shares			(82	)			(0.62	%)
Amounts allocated to common shares		$	13,178				99.38	%

 

(1)	For the three months ended March 31, 2014 the company had no dilutive shares.

(2)	Percentages rounded to two decimal places.

 

15