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) November 4, 2015 (November 3, 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)) |
Section 2 – Financial Information
Item 2.02 Results of Operations and Financial Condition.
On November 3, 2015, Aircastle Limited (the “Company”) announced financial results for its third 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.
|
|
|
| 99.1 |
|
Press Release dated November 3, 2015 which is being furnished hereto pursuant to Item 2.02. |
2
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.
|
| AIRCASTLE LIMITED
(Registrant) |
|
| /s/ Michael Inglese |
| Michael Inglese |
| Chief Financial Officer |
Date: November 4, 2015
3
EXHIBIT INDEX
|
|
|
| Exhibit Number |
|
Description |
|
|
| 99.1 |
|
Press Release dated November 3, 2015 |
4
Exhibit 99.1
FOR IMMEDIATE RELEASE
|
|
|
| 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 Announces Third Quarter 2015 Results
Quarterly Dividend Increased to $0.24 per Common Share
Key Third Quarter Developments
| |
• |
|
Lease rental and finance lease revenue was $189.9 million, up 5.3% |
| |
• |
|
Net loss was $(14.0) million, or $(0.17) per diluted share |
| |
• |
|
Excluding the $66.0 million earnings impact from Malaysian Airline System bankruptcy and older freighter exits, net income was $52.0 million, or $0.64 per share |
| |
• |
|
Accelerated planned exit from freighters by agreeing or completing sale of four aircraft and declaring six remaining older units to be on last leases after which we expect to scrap them |
| |
• |
|
Cash ROE was 14.5%, net cash interest margin was 9.2% and fleet utilization was 99.9% |
| |
• |
|
Acquired seven aircraft for $233 million; year to date purchased 32 aircraft for $1.0 billion |
| |
• |
|
Sold eight aircraft for a net gain of $15.7 million; year to date sold 20 aircraft for a total net pre-tax contribution of $38.3 million |
| |
• |
|
Declared $0.24 dividend per common share; our 38th consecutive quarterly dividend |
Stamford, CT. November 3, 2015 – Aircastle Limited (the “Company” or “Aircastle”) (NYSE: AYR) reported a third quarter
2015 net loss of $(14.0) million, or $(0.17) per diluted common share, and an adjusted net loss of $(9.7) million, or $(0.12) per diluted common share. The third quarter results included total revenues of $212.1 million, an increase of 19.4%, versus
$177.6 million in the third quarter of 2014.
Commenting on the results, Ron Wainshal, Aircastle’s CEO, stated “During the third quarter we took
decisive measures to address the challenge presented by the Malaysian bankruptcy and to accelerate our planned exit from freighter investments. Notwithstanding the resulting impairments, our operating performance was excellent as evidenced by the
14.5% cash ROE and 99.9% utilization results.”
Note: Non-GAAP items reconciled in the Appendix.
Mr. Wainshal added, “Increased asset sales have been a key driver for our results as we’ve seized
on robust investor demand for aircraft both to enhance our financial performance and to improve our portfolio quality considerably.”
Mr. Wainshal concluded, “We continue to demonstrate the value of the Aircastle franchise and our distinct competitive positioning by originating an
attractive flow of investments we believe will have an accretive long-term earnings profile. This capability, together with the improving quality of our assets and strong operating cash flows, gave us confidence to increase our dividend once
again.”
Financial Results
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (in thousands, except share data) |
|
Three Months Ended
September 30, |
|
|
Nine Months Ended
September 30, |
|
| |
|
2015 |
|
|
2014 |
|
|
2015 |
|
|
2014 |
|
| Total Revenues |
|
$ |
212,074 |
|
|
$ |
177,596 |
|
|
$ |
610,935 |
|
|
$ |
580,345 |
|
| Lease Rental and Finance Lease Revenues |
|
$ |
189,906 |
|
|
$ |
180,349 |
|
|
$ |
555,375 |
|
|
$ |
545,799 |
|
| Adjusted EBITDA |
|
$ |
216,311 |
|
|
$ |
177,408 |
|
|
$ |
621,133 |
|
|
$ |
559,083 |
|
| Net income (loss) |
|
$ |
(13,989 |
) |
|
$ |
19,151 |
|
|
$ |
71,088 |
|
|
$ |
28,064 |
|
| Per common share - Diluted |
|
$ |
(0.17 |
) |
|
$ |
0.24 |
|
|
$ |
0.88 |
|
|
$ |
0.35 |
|
| Adjusted net income (loss) |
|
$ |
(9,679 |
) |
|
$ |
26,545 |
|
|
$ |
88,007 |
|
|
$ |
87,497 |
|
| Per common share - Diluted |
|
$ |
(0.12 |
) |
|
$ |
0.33 |
|
|
$ |
1.08 |
|
|
$ |
1.08 |
|
Third Quarter Results
Total revenues were $212.1 million, an increase of $34.5 million, or 19.4%, from the previous year. The increase was driven by higher maintenance revenues
of $19.9 million and higher lease rental and finance lease revenues of $9.6 million.
Lease rental and finance lease revenues during the third quarter were
$189.9 million versus $180.3 million the prior year. The 5.3% increase reflects net year over year growth in the fleet and the impact from aircraft acquisitions, dispositions and lease extensions.
Adjusted EBITDA for the third quarter was $216.3 million, up 21.9%, or $38.9 million, versus the prior year’s quarter and primarily reflects higher lease
rental, finance lease and maintenance revenues of $29.5 million, and higher gains from aircraft sales of $4.3 million.
The net loss for the third quarter
was $(14.0) million versus net income of $19.2 million the previous year. Higher total revenues of $34.5 million were offset by higher non-cash impairment charges of $58.0 million and higher depreciation charges of $9.8 million associated with net
fleet growth and accelerated depreciation on three MD-11 freighters, two of which were sold during the third quarter.
The adjusted net loss for the
quarter was $(9.7) million versus adjusted net income $26.5 million the prior year. Higher revenues of $34.5 million and higher gains from aircraft sales of $4.3 million were offset by higher non-cash aircraft impairment charges of $58.0
million year over year.
2
Aviation Assets
During the third quarter of 2015, we acquired seven aircraft for $233 million. We closed or committed to acquire five additional aircraft during the balance of
2015 for approximately $165 million. Year-to-date, we acquired or committed to acquire a total of 37 aircraft that will close in 2015, for approximately $1.2 billion. The 32 aircraft acquired during the first nine months of 2015 had a weighted
average age of less than four years, an average lease term of more than nine years, and all but one were narrow-body aircraft.
During the third quarter
of 2015, we completed the sale of eight aircraft, including two MD-11 freighter aircraft, one A330 and five mid-aged narrow-body aircraft. The total pre-tax impact from our third quarter sales activity was $15.7 million and gross proceeds were $111
million.
During the first three quarters of 2015, we sold twenty aircraft that generated a total pre-tax impact of $38.3 million and gross proceeds of
$341 million. The weighted-average age of the aircraft sold was approximately 15 years.
During October, we completed several additional sales, including
one 747-400 converted freighter, one older A330 and our last 767. These sales have been profitable, in aggregate. In addition, we concluded an agreement to sell our last remaining MD-11 freighter in January 2016 for an amount approximately equal to
break-even.
2015 Aircraft Sales through September 30
($ in millions)
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|
| Aircraft Type |
|
Weighted
Average Age
(years) |
|
|
Number of
Aircraft |
|
|
Maintenance
Revenue |
|
|
Gain (Loss)
on Sale of
Flight
Equipment |
|
|
Impairments |
|
|
Pre-Tax
Impact |
|
| Narrow-bodies |
|
|
14.4 |
|
|
|
14 |
|
|
$ |
7.0 |
|
|
$ |
30.6 |
|
|
$ |
(5.3 |
) |
|
$ |
32.3 |
|
| Wide-bodies |
|
|
15.8 |
|
|
|
4 |
|
|
|
— |
|
|
|
12.8 |
|
|
|
— |
|
|
|
12.8 |
|
| Freighters |
|
|
17.7 |
|
|
|
2 |
|
|
|
11.4 |
|
|
|
(0.4 |
) |
|
|
(17.9 |
) |
|
|
(6.8 |
) |
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total |
|
|
14.9 |
|
|
|
20 |
|
|
$ |
18.4 |
|
|
$ |
43.0 |
|
|
$ |
(23.2 |
) |
|
$ |
38.3 |
|
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|
As of September 30, 2015, Aircastle owned 160 aircraft having a net book value of $6.0 billion. We also manage five
aircraft with a net book value of nearly $500 million dollars on behalf of our joint venture with Ontario Teachers’ Pension Plan.
3
|
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| |
|
Owned
Aircraft as of
September 30,
2015 |
|
|
Owned
Aircraft as of
September 30,
2014 |
|
| Total Flight Equipment Held for Lease ($ mils.) |
|
$ |
6,007 |
|
|
$ |
5,304 |
|
| Unencumbered Flight Equipment Held for Lease ($ mils.) |
|
$ |
3,722 |
|
|
$ |
2,924 |
|
| Number of Aircraft |
|
|
160 |
|
|
|
140 |
|
| Number of Unencumbered Aircraft |
|
|
109 |
|
|
|
85 |
|
| Passenger Aircraft (% of NBV) |
|
|
88 |
% |
|
|
84 |
% |
| Weighted Average Fleet Age (years)(2) |
|
|
7.7 |
|
|
|
8.6 |
|
| Weighted Average Remaining Lease Term (years)(3) |
|
|
5.9 |
|
|
|
5.0 |
|
| Weighted Average Fleet Utilization for the quarter ended(4) |
|
|
99.9 |
% |
|
|
100.0 |
% |
| Portfolio Yield for the quarter ended(5) |
|
|
12.7 |
% |
|
|
13.2 |
% |
| Net Cash Interest Margin(6) |
|
|
9.2 |
% |
|
|
9.9 |
% |
| (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. |
Annual Fleet Review & Impairments
During the third quarter of 2015, in connection with our annual fleet review, we determined each of our six remaining Boeing 747-400 converted freighter
aircraft are now on last leases. We reduced our residual value assumptions for these aircraft and expect to scrap them following lease expiry. This resulted in an impairment of $34.6 million and $1.9 million of additional depreciation during Q3,
partly offset by $6.0 million of maintenance and other revenues. This determination reflects the persisting glut of supply in the air cargo market. In addition, our older freighters were affected specifically by the imposition of age limits in
certain countries and by lower utilization levels.
In September 2015, Malaysian Airline System (“MAS”) informed us that they were rejecting the
lease on our Boeing 777-200ER aircraft as part of their restructuring. Under the terms of our lease with MAS, we were due to receive $18 million in rent payments and another estimated $25 million in lease end return compensation. We repossessed the
aircraft in early October 2015 and are currently evaluating our deployment alternatives. This aircraft, which was manufactured in 1998, is the only one of its type in our fleet and is the only aircraft we had on lease to MAS.
We reduced the carrying value of this 777-200ER aircraft to an amount equal to our best estimate of scrap value. While we haven’t made a decision to
dispose of the aircraft, this write-down was driven by weak overall demand for older wide-body aircraft, an increase in the supply of competing aircraft and the difficulty of recovering high redeployment costs given the proliferation of aircraft age
limits across the world. This write-down resulted in an impairment of $37.8 million, partly offset by a $1.2 million letter of credit we drew following the lease rejection. We will pursue remedies to recover amounts due to us.
4
Breakdown of Third Quarter Results
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|
|
| ($ in millions except per share amounts) |
|
Q3:15 Results |
|
|
747
Freighters |
|
|
MAS
Bankruptcy |
|
|
Adjusted
Q3:15 Results |
|
| Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Lease Rentals |
|
$ |
188.0 |
|
|
$ |
0.2 |
|
|
$ |
|
|
|
$ |
187.9 |
|
| Maintenance / Other Revenues |
|
|
24.0 |
|
|
|
5.9 |
|
|
|
1.2 |
|
|
|
17.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Revenues |
|
|
212.1 |
|
|
|
6.0 |
|
|
|
1.2 |
|
|
|
204.8 |
|
| Operating Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Depreciation |
|
|
85.3 |
|
|
|
1.9 |
|
|
|
|
|
|
|
83.4 |
|
| Aircraft Impairment Charges |
|
|
78.4 |
|
|
|
34.6 |
|
|
|
37.8 |
|
|
|
6.1 |
|
| All Other Expenses |
|
|
76.9 |
|
|
|
|
|
|
|
|
|
|
|
76.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Operating Expenses |
|
|
240.7 |
|
|
|
36.5 |
|
|
|
37.8 |
|
|
|
166.4 |
|
| Other Income (Expense) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Gain on Sale of Flight Equipment |
|
|
15.7 |
|
|
|
|
|
|
|
|
|
|
|
15.7 |
|
| All Other Income (Expense) |
|
|
0.1 |
|
|
|
|
|
|
|
|
|
|
|
0.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Other Income (Expense) |
|
|
15.8 |
|
|
|
|
|
|
|
|
|
|
|
15.8 |
|
| Pre-Tax Income |
|
|
(12.8 |
) |
|
|
(30.4 |
) |
|
|
(36.6 |
) |
|
|
54.2 |
|
| Income Taxes |
|
|
(2.7 |
) |
|
|
1.0 |
|
|
|
|
|
|
|
(3.7 |
) |
| Joint Venture Income |
|
|
1.6 |
|
|
|
|
|
|
|
|
|
|
|
1.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net Income (Loss) |
|
$ |
(14.0 |
) |
|
$ |
(29.4 |
) |
|
$ |
(36.6 |
) |
|
$ |
52.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Per Share |
|
$ |
(0.17 |
) |
|
$ |
(0.36 |
) |
|
$ |
(0.45 |
) |
|
$ |
0.64 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ANI Per Share |
|
$ |
(0.12 |
) |
|
$ |
(0.36 |
) |
|
$ |
(0.45 |
) |
|
$ |
0.69 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Dividend
On
October 30, 2015, Aircastle’s Board of Directors declared a fourth quarter 2015 cash dividend on its common shares of $0.24 per share, payable on December 15, 2015 to shareholders of record on November 30, 2015. This is our 38th consecutive dividend and represents a 9% increase over the previous quarter’s cash dividend. Since 2010, Aircastle has increased the dividend six times.
Conference Call
In connection with this earnings
release, management will host an earnings conference call on Tuesday, November 3, 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) 417-8533 (from within the U.S. and Canada) or (719) 325-2354 (from outside of the U.S. and Canada) ten minutes prior to the scheduled start and referencing the passcode “9463401”.
A simultaneous webcast of the conference call will be available to the public on a listen-only basis at www.aircastle.com. Please allow extra time prior to
the call to visit the site and download the necessary software required to listen to the internet broadcast. A replay of the webcast will be available for one month following the call. In addition to this earnings release an accompanying power point
presentation has been posted to the Investor Relations section of Aircastle’s website.
For those who are not available to listen to the live call, a
replay will be available until 1:00 P.M. Eastern time on Thursday, December 3, 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
“9463401”.
5
About Aircastle Limited
Aircastle Limited acquires, leases and sells commercial jet aircraft to airlines throughout the world. As of September 30, 2015, Aircastle’s aircraft
portfolio consisted of 160 aircraft on lease with 51 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 our Form 10-Q filed for the quarter ended June 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.
6
Aircastle Limited and Subsidiaries
Consolidated Balance Sheets
(Dollars in thousands, except share data)
|
|
|
|
|
|
|
|
|
| |
|
September 30,
2015 |
|
|
December 31,
2014 |
|
| |
|
(Unaudited) |
|
|
|
|
| ASSETS |
|
|
|
|
|
|
|
|
| Cash and cash equivalents |
|
$ |
149,041 |
|
|
$ |
169,656 |
|
| Accounts receivable |
|
|
3,046 |
|
|
|
3,334 |
|
| Restricted cash and cash equivalents |
|
|
84,258 |
|
|
|
98,884 |
|
| Restricted liquidity facility collateral |
|
|
65,000 |
|
|
|
65,000 |
|
| Flight equipment held for lease, net of accumulated depreciation of $1,403,443 and $1,294,063, respectively |
|
|
5,885,807 |
|
|
|
5,579,718 |
|
| Net investment in finance leases |
|
|
120,882 |
|
|
|
106,651 |
|
| Unconsolidated equity method investment |
|
|
49,131 |
|
|
|
46,453 |
|
| Other assets |
|
|
131,231 |
|
|
|
105,450 |
|
|
|
|
|
|
|
|
|
|
| Total assets |
|
$ |
6,488,396 |
|
|
$ |
6,175,146 |
|
|
|
|
|
|
|
|
|
|
| LIABILITIES AND SHAREHOLDERS’ EQUITY LIABILITIES |
|
|
|
|
|
|
|
|
| Borrowings from secured financings, net of debt issuance costs |
|
$ |
1,277,361 |
|
|
$ |
1,373,131 |
|
| Borrowings from unsecured financings, net of debt issuance costs |
|
|
2,717,859 |
|
|
|
2,371,456 |
|
| Accounts payable, accrued expenses and other liabilities |
|
|
154,209 |
|
|
|
140,863 |
|
| Lease rentals received in advance |
|
|
60,447 |
|
|
|
53,216 |
|
| Liquidity facility |
|
|
65,000 |
|
|
|
65,000 |
|
| Security deposits |
|
|
114,594 |
|
|
|
117,689 |
|
| Maintenance payments |
|
|
338,515 |
|
|
|
333,456 |
|
|
|
|
|
|
|
|
|
|
| Total liabilities |
|
|
4,727,985 |
|
|
|
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, 81,181,495 shares issued and outstanding at September 30,
2015; and 80,983,249 shares issued and outstanding at December 31, 2014 |
|
|
812 |
|
|
|
810 |
|
| Additional paid-in capital |
|
|
1,567,692 |
|
|
|
1,565,180 |
|
| Retained earnings |
|
|
210,310 |
|
|
|
192,805 |
|
| Accumulated other comprehensive loss |
|
|
(18,403 |
) |
|
|
(38,460 |
) |
|
|
|
|
|
|
|
|
|
| Total shareholders’ equity |
|
|
1,760,411 |
|
|
|
1,720,335 |
|
|
|
|
|
|
|
|
|
|
| Total liabilities and shareholders’ equity |
|
$ |
6,488,396 |
|
|
$ |
6,175,146 |
|
|
|
|
|
|
|
|
|
|
7
Aircastle Limited and Subsidiaries
Consolidated Statements of Income
(Dollars in thousands, except per share amounts)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended
September 30, |
|
|
Nine Months Ended
September 30, |
|
| |
|
2015 |
|
|
2014 |
|
|
2015 |
|
|
2014 |
|
| Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Lease rental revenue |
|
$ |
188,038 |
|
|
$ |
178,886 |
|
|
$ |
550,023 |
|
|
$ |
536,452 |
|
| Finance lease revenue |
|
|
1,868 |
|
|
|
1,463 |
|
|
|
5,352 |
|
|
|
9,347 |
|
| Amortization of lease premiums, discounts and lease incentives |
|
|
(2,113 |
) |
|
|
(1,075 |
) |
|
|
(10,288 |
) |
|
|
(7,252 |
) |
| Maintenance revenue |
|
|
15,726 |
|
|
|
(4,189 |
) |
|
|
55,148 |
|
|
|
35,035 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total lease revenue |
|
|
203,519 |
|
|
|
175,085 |
|
|
|
600,235 |
|
|
|
573,582 |
|
| Other revenue |
|
|
8,555 |
|
|
|
2,511 |
|
|
|
10,700 |
|
|
|
6,763 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total revenues |
|
|
212,074 |
|
|
|
177,596 |
|
|
|
610,935 |
|
|
|
580,345 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Depreciation |
|
|
85,324 |
|
|
|
75,519 |
|
|
|
237,538 |
|
|
|
225,230 |
|
| Interest, net |
|
|
60,381 |
|
|
|
56,794 |
|
|
|
184,063 |
|
|
|
181,551 |
|
| Selling, general and administrative (including non-cash share based payment expense of $1,424 and $949 for the three months ended and
$3,981 and $3,167 for the nine months ended September 30, 2015 and 2014, respectively) |
|
|
14,032 |
|
|
|
13,817 |
|
|
|
42,663 |
|
|
|
41,818 |
|
| Impairment of Aircraft |
|
|
78,403 |
|
|
|
20,436 |
|
|
|
102,358 |
|
|
|
67,005 |
|
| Maintenance and other costs |
|
|
2,520 |
|
|
|
713 |
|
|
|
9,126 |
|
|
|
5,222 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total expenses |
|
|
240,660 |
|
|
|
167,279 |
|
|
|
575,748 |
|
|
|
520,826 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Gain on sale of flight equipment |
|
|
15,679 |
|
|
|
11,390 |
|
|
|
43,034 |
|
|
|
13,384 |
|
| Loss on extinguishment of debt |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(36,570 |
) |
| Other |
|
|
70 |
|
|
|
1 |
|
|
|
341 |
|
|
|
758 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total other income (expense) |
|
|
15,749 |
|
|
|
11,391 |
|
|
|
43,375 |
|
|
|
(22,428 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Income (loss) from continuing operations before income taxes |
|
|
(12,837 |
) |
|
|
21,708 |
|
|
|
78,562 |
|
|
|
37,091 |
|
| Income tax provision |
|
|
2,709 |
|
|
|
3,484 |
|
|
|
12,037 |
|
|
|
10,925 |
|
| Earnings of unconsolidated equity method investment, net of tax |
|
|
1,557 |
|
|
|
927 |
|
|
|
4,563 |
|
|
|
1,898 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income (loss) |
|
$ |
(13,989 |
) |
|
$ |
19,151 |
|
|
$ |
71,088 |
|
|
$ |
28,064 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Earnings (loss) per common share — Basic: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income (loss) per share |
|
$ |
(0.17 |
) |
|
$ |
0.24 |
|
|
$ |
0.88 |
|
|
$ |
0.35 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Earnings (loss) per common share — Diluted: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income (loss) per share |
|
$ |
(0.17 |
) |
|
$ |
0.24 |
|
|
$ |
0.88 |
|
|
$ |
0.35 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Dividends declared per share |
|
$ |
0.22 |
|
|
$ |
0.20 |
|
|
$ |
0.66 |
|
|
$ |
0.60 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8
Aircastle Limited and Subsidiaries
Consolidated Statements of Cash Flows
(Dollars in thousands)
(Unaudited)
|
|
|
|
|
|
|
|
|
| |
|
Nine Months Ended September 30, |
|
| |
|
2015 |
|
|
2014 |
|
| Cash flows from operating activities: |
|
|
|
|
|
|
|
|
| Net income |
|
$ |
71,088 |
|
|
$ |
28,064 |
|
| Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
|
|
|
|
| Depreciation |
|
|
237,538 |
|
|
|
225,230 |
|
| Amortization of deferred financing costs |
|
|
11,211 |
|
|
|
10,493 |
|
| Amortization of net lease discounts and lease incentives |
|
|
10,288 |
|
|
|
7,252 |
|
| Deferred income taxes |
|
|
(1,455 |
) |
|
|
(2,623 |
) |
| Non-cash share based payment expense |
|
|
3,981 |
|
|
|
3,167 |
|
| Cash flow hedges reclassified into earnings |
|
|
19,349 |
|
|
|
26,730 |
|
| Security deposits and maintenance payments included in earnings |
|
|
(20,645 |
) |
|
|
(38,257 |
) |
| Gain on sale of flight equipment |
|
|
(43,034 |
) |
|
|
(13,384 |
) |
| Loss on extinguishment of debt |
|
|
— |
|
|
|
36,570 |
|
| Impairment of aircraft |
|
|
102,358 |
|
|
|
67,005 |
|
| Other |
|
|
269 |
|
|
|
(2,278 |
) |
| Changes in certain assets and liabilities: |
|
|
|
|
|
|
|
|
| Accounts receivable |
|
|
253 |
|
|
|
(1,603 |
) |
| Other assets |
|
|
(4,382 |
) |
|
|
(1,691 |
) |
| Accounts payable, accrued expenses and other liabilities |
|
|
14,085 |
|
|
|
17,138 |
|
| Lease rentals received in advance |
|
|
7,566 |
|
|
|
4,162 |
|
|
|
|
|
|
|
|
|
|
| Net cash provided by operating activities |
|
|
408,470 |
|
|
|
365,975 |
|
|
|
|
|
|
|
|
|
|
| Cash flows from investing activities: |
|
|
|
|
|
|
|
|
| Acquisition and improvement of flight equipment and lease incentives |
|
|
(1,034,578 |
) |
|
|
(939,651 |
) |
| Proceeds from sale of flight equipment |
|
|
343,020 |
|
|
|
563,882 |
|
| Restricted cash and cash equivalents related to sale of flight equipment |
|
|
— |
|
|
|
(24,606 |
) |
| Aircraft purchase deposits and progress payments |
|
|
(4,421 |
) |
|
|
1,315 |
|
| Net investment in finance leases |
|
|
(24,000 |
) |
|
|
(14,258 |
) |
| Collections on finance leases |
|
|
6,768 |
|
|
|
8,096 |
|
| Unconsolidated equity method investment and associated costs |
|
|
— |
|
|
|
(8,592 |
) |
| Distributions from unconsolidated equity method investment in excess of earnings |
|
|
— |
|
|
|
997 |
|
| Other |
|
|
(260 |
) |
|
|
(466 |
) |
|
|
|
|
|
|
|
|
|
| Net cash used in investing activities |
|
|
(713,471 |
) |
|
|
(413,283 |
) |
|
|
|
|
|
|
|
|
|
| Cash flows from financing activities: |
|
|
|
|
|
|
|
|
| Issuance of shares net of repurchases |
|
|
(1,960 |
) |
|
|
(2,092 |
) |
| Proceeds from secured and unsecured debt financings |
|
|
800,000 |
|
|
|
803,200 |
|
| Repayments of secured and unsecured debt financings |
|
|
(548,359 |
) |
|
|
(895,459 |
) |
| Debt extinguishment costs |
|
|
— |
|
|
|
(32,835 |
) |
| Deferred financing costs |
|
|
(12,185 |
) |
|
|
(15,843 |
) |
| Restricted liquidity facility collateral |
|
|
— |
|
|
|
42,000 |
|
| Liquidity facility |
|
|
— |
|
|
|
(42,000 |
) |
| Restricted cash and cash equivalents related to financing activities |
|
|
14,626 |
|
|
|
32,987 |
|
| Security deposits and maintenance payments received |
|
|
114,644 |
|
|
|
131,136 |
|
| Security deposits and maintenance payments returned |
|
|
(28,797 |
) |
|
|
(72,030 |
) |
| Payments for terminated cash flow hedges |
|
|
— |
|
|
|
(33,427 |
) |
| Dividends paid |
|
|
(53,583 |
) |
|
|
(48,604 |
) |
|
|
|
|
|
|
|
|
|
| Net cash provided by (used in) financing activities |
|
|
284,386 |
|
|
|
(132,967 |
) |
|
|
|
|
|
|
|
|
|
| Net increase (decrease) in cash and cash equivalents |
|
|
(20,615 |
) |
|
|
(180,275 |
) |
| Cash and cash equivalents at beginning of period |
|
|
169,656 |
|
|
|
654,613 |
|
|
|
|
|
|
|
|
|
|
| Cash and cash equivalents at end of period |
|
$ |
149,041 |
|
|
$ |
474,338 |
|
|
|
|
|
|
|
|
|
|
9
Aircastle Limited and Subsidiaries
Selected Financial Guidance Elements for the Fourth Quarter of 2015
($ in millions, except for percentages)
(Unaudited)
|
|
|
| Guidance Item |
|
Q4:15(1) |
| Lease rental revenue |
|
$178 - $182 |
| Finance lease revenue |
|
$1 - $2 |
| Maintenance revenue |
|
$6 - $8 |
| Amortization of net lease discounts and lease incentives |
|
$(5) - $(6) |
| SG&A |
|
$14 - $15 |
| Depreciation |
|
$79 - $81 |
| Interest, net (2) |
|
$59 - $60 |
| Gain on sale |
|
$5 - $10 |
| Full year effective tax rate |
|
13% - 14% |
| (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. |
10
Aircastle Limited and Subsidiaries
Supplemental Financial Information
(Amount in thousands, except per share amounts)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended
Sept. 30, |
|
|
Nine Months Ended
Sept. 30, |
|
| |
|
2015 |
|
|
2014 |
|
|
2015 |
|
|
2014 |
|
| Revenues |
|
$ |
212,074 |
|
|
$ |
177,596 |
|
|
$ |
610,935 |
|
|
$ |
580,345 |
|
| EBITDA |
|
$ |
136,538 |
|
|
$ |
156,023 |
|
|
$ |
515,014 |
|
|
$ |
453,022 |
|
| Adjusted EBITDA |
|
$ |
216,311 |
|
|
$ |
177,408 |
|
|
$ |
621,133 |
|
|
$ |
559,083 |
|
| Adjusted net income (loss) |
|
$ |
(9,679 |
) |
|
$ |
26,545 |
|
|
$ |
88,007 |
|
|
$ |
87,497 |
|
| Adjusted net income (loss) allocable to common shares |
|
$ |
(9,679 |
) |
|
$ |
26,348 |
|
|
$ |
87,352 |
|
|
$ |
86,868 |
|
| Per common share - Basic |
|
$ |
(0.12 |
) |
|
$ |
0.33 |
|
|
$ |
1.08 |
|
|
$ |
1.08 |
|
| Per common share - Diluted |
|
$ |
(0.12 |
) |
|
$ |
0.33 |
|
|
$ |
1.08 |
|
|
$ |
1.08 |
|
| Basic common shares outstanding |
|
|
80,566 |
|
|
|
80,390 |
|
|
|
80,566 |
|
|
|
80,389 |
|
| Diluted common shares outstanding |
|
|
80,566 |
|
|
|
80,390 |
|
|
|
80,566 |
|
|
|
80,389 |
|
Refer to the selected information accompanying this press release for a reconciliation of GAAP to Non-GAAP information.
11
Aircastle Limited and Subsidiaries
Reconciliation of GAAP to Non-GAAP Measures
EBITDA and Adjusted EBITDA Reconciliation
(Dollars in thousands)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended
September 30, |
|
|
Nine Months Ended
September 30, |
|
| |
|
2015 |
|
|
2014 |
|
|
2015 |
|
|
2014 |
|
| |
|
(Dollars in thousands) |
|
| Net income (loss) |
|
$ |
(13,989 |
) |
|
$ |
19,151 |
|
|
$ |
71,088 |
|
|
$ |
28,064 |
|
| Depreciation |
|
|
85,324 |
|
|
|
75,519 |
|
|
|
237,538 |
|
|
|
225,230 |
|
| Amortization of net lease discounts and lease incentives |
|
|
2,113 |
|
|
|
1,075 |
|
|
|
10,288 |
|
|
|
7,252 |
|
| Interest, net |
|
|
60,381 |
|
|
|
56,794 |
|
|
|
184,063 |
|
|
|
181,551 |
|
| Income tax provision |
|
|
2,709 |
|
|
|
3,484 |
|
|
|
12,037 |
|
|
|
10,925 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| EBITDA |
|
|
136,538 |
|
|
|
156,023 |
|
|
|
515,014 |
|
|
|
453,022 |
|
| Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Impairment of aircraft |
|
|
78,403 |
|
|
|
20,436 |
|
|
|
102,358 |
|
|
|
67,005 |
|
| Loss on extinguishment of debt |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
36,570 |
|
| Non-cash share based payment expense |
|
|
1,424 |
|
|
|
949 |
|
|
|
3,981 |
|
|
|
3,167 |
|
| Gain on mark to market of interest rate derivative contracts |
|
|
(54 |
) |
|
|
— |
|
|
|
(220 |
) |
|
|
(681 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusted EBITDA |
|
$ |
216,311 |
|
|
$ |
177,408 |
|
|
$ |
621,133 |
|
|
$ |
559,083 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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.
12
Aircastle Limited and Subsidiaries
Reconciliation of GAAP to Non-GAAP Measures
Adjusted Net Income Reconciliation
(Dollars in thousands)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended
September 30, |
|
|
Nine Months Ended
September 30, |
|
| |
|
2015 |
|
|
2014 |
|
|
2015 |
|
|
2014 |
|
| |
|
(Dollars in thousands) |
|
| Net income (loss) |
|
$ |
(13,989 |
) |
|
$ |
19,151 |
|
|
$ |
71,088 |
|
|
$ |
28,064 |
|
| Loss on extinguishment of debt(2) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
36,570 |
|
| Ineffective portion and termination of hedges(1) |
|
|
215 |
|
|
|
(21 |
) |
|
|
509 |
|
|
|
41 |
|
| Gain on mark to market of interest rate derivative contracts(2) |
|
|
(54 |
) |
|
|
— |
|
|
|
(220 |
) |
|
|
(681 |
) |
| Non-cash share based payment expense(3) |
|
|
1,424 |
|
|
|
949 |
|
|
|
3,981 |
|
|
|
3,167 |
|
| Term Financing No. 1 hedge loss amortization charges(1) |
|
|
— |
|
|
|
3,601 |
|
|
|
4,401 |
|
|
|
11,544 |
|
| Securitization No. 1 hedge loss amortization charges (1) |
|
|
2,725 |
|
|
|
2,865 |
|
|
|
8,248 |
|
|
|
8,792 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusted net income (loss) |
|
$ |
(9,679 |
) |
|
$ |
26,545 |
|
|
$ |
88,007 |
|
|
$ |
87,497 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (1) |
Included in Interest, net. |
| (2) |
Included in Other income (expense). |
| (3) |
Included in Selling, general and administrative expenses. |
13
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 |
|
$ |
501,281 |
|
|
$ |
8,984 |
|
|
$ |
52,796 |
|
|
$ |
311,673 |
|
|
$ |
(14 |
) |
|
$ |
251,374 |
|
|
$ |
1,735,012 |
|
|
|
14.5 |
% |
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.
14
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 |
|
|
$ |
48,172 |
|
|
|
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 |
|
|
$ |
188,038 |
|
|
$ |
51,428 |
|
|
|
9.2 |
% |
| (1) |
Excludes loan termination payments of $3.2 million and $3.0 million in the second quarter of 2011 and 2013 respectively. |
15
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
September 30, 2015 |
|
|
Nine Months Ended
September 30, 2015 |
|
| |
|
Shares |
|
|
Percent(2) |
|
|
Shares |
|
|
Percent(2) |
|
| Weighted-average shares(1): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Common shares outstanding – Basic |
|
|
80,566 |
|
|
|
99.21 |
% |
|
|
80,566 |
|
|
|
99.26 |
% |
| Unvested restricted common shares |
|
|
645 |
|
|
|
0.79 |
% |
|
|
604 |
|
|
|
0.74 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total weighted-average shares outstanding |
|
|
81,212 |
|
|
|
100.00 |
% |
|
|
81,170 |
|
|
|
100.00 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income (loss) allocation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income (loss) |
|
$ |
(13,989 |
) |
|
|
100.00 |
% |
|
$ |
71,088 |
|
|
|
100.00 |
% |
| Distributed and undistributed earnings allocated to unvested restricted shares |
|
|
— |
|
|
|
— |
|
|
|
(529 |
) |
|
|
(0.74 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Earnings (loss) available to common shares |
|
$ |
(13,989 |
) |
|
|
100.00 |
% |
|
$ |
70,559 |
|
|
|
99.26 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusted net income (loss) allocation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusted net income (loss) |
|
$ |
(9,679 |
) |
|
|
100.00 |
% |
|
$ |
88,007 |
|
|
|
100.00 |
% |
| Amounts allocated to unvested restricted shares |
|
|
— |
|
|
|
— |
|
|
|
(655 |
) |
|
|
(0.74 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Amounts allocated to common shares |
|
$ |
(9,679 |
) |
|
|
100.00 |
% |
|
$ |
87,352 |
|
|
|
99.26 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (1) |
For the three and nine months ended September 30, 2015 the company had no dilutive shares. |
| (2) |
Percentages rounded to two decimal places. |
16
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
September 30, 2014 |
|
|
Nine Months Ended
September 30, 2014 |
|
| |
|
Shares |
|
|
Percent(2) |
|
|
Shares |
|
|
Percent(2) |
|
| Weighted-average shares(1): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Common shares outstanding – Basic |
|
|
80,390 |
|
|
|
99.26 |
% |
|
|
80,389 |
|
|
|
99.28 |
% |
| Unvested restricted common shares |
|
|
601 |
|
|
|
0.74 |
% |
|
|
582 |
|
|
|
0.72 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total weighted-average shares outstanding |
|
|
80,991 |
|
|
|
100.00 |
% |
|
|
80,971 |
|
|
|
100.00 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income allocation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income |
|
$ |
19,151 |
|
|
|
100.00 |
% |
|
$ |
28,064 |
|
|
|
100.00 |
% |
| Distributed and undistributed earnings allocated to unvested restricted shares |
|
|
(142 |
) |
|
|
(0.74 |
%) |
|
|
(202 |
) |
|
|
(0.72 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Earnings available to common shares |
|
$ |
19,009 |
|
|
|
99.26 |
% |
|
$ |
27,862 |
|
|
|
99.28 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusted net income allocation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusted net income |
|
$ |
26,545 |
|
|
|
100.00 |
% |
|
$ |
87,497 |
|
|
|
100.00 |
% |
| Amounts allocated to unvested restricted shares |
|
|
(197 |
) |
|
|
(0.74 |
%) |
|
|
(629 |
) |
|
|
(0.72 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Amounts allocated to common shares |
|
$ |
26,348 |
|
|
|
99.26 |
% |
|
$ |
86,868 |
|
|
|
99.28 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (1) |
For the three and nine months ended September 30, 2014 the company had no dilutive shares. |
| (2) |
Percentages rounded to two decimal places. |
17
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