STAMFORD, Conn., May 4, 2016 /PRNewswire/ --
Key Financial Metrics
- Total revenues were $183.7
million for the first quarter of 2016
- Total lease rental and finance lease revenues were $183.1 million
- Net income was $36.3 million, or
$0.46 per diluted common share
- Adjusted net income was $44.1
million, or $0.56 per diluted
common share
- Adjusted EBITDA was $183.9
million for the first quarter
- Cash ROE was 15.2%; net cash interest margin was 8.8%
First Quarter 2016 Highlights
- Secured nearly $700 million in
new unsecured financing
- Sold twelve aircraft for more than $300
million and a gain of $12.8
million
- Closed or committed to acquire 29 aircraft this year for more
than $850 million
- Grew our joint venture with Ontario Teachers' Pension Plan and
established a new investment vehicle with IBJ Leasing of
Japan
- Repurchased over 1.6 million shares during the first quarter
for $31.1 million
- Declared our 40th consecutive quarterly
dividend
Aircastle Limited (the "Company" or "Aircastle") (NYSE: AYR)
reported first quarter 2016 net income of $36.3 million, or $0.46 per diluted common share and adjusted net
income of $44.1 million, or
$0.56 per diluted common share.
The first quarter results included total lease rental and finance
lease revenues of $183.1 million, an
increase of 2%, versus $178.8 million
in the first quarter of 2015.
Commenting on the results, Ron
Wainshal, Aircastle's CEO, stated "Aircastle raised more
than $1 billion in liquidity since
the start of the year, putting the Company in an excellent position
to capture attractive new investments. By not having our
capital tied up in long-term commitments, we are able to seize upon
good buying opportunities such as we are seeing in the market
presently. We closed or have line of sight to more than
$850 million in acquisitions for 2016
so far, and I'm optimistic about increasing this amount
substantially."
Mr. Wainshal continued, "At the same time, Aircastle continued
to deliver strong financial and operational results, with solid
earnings and cash ROE during the first quarter. Fleet
utilization during the period was nearly 100% and we continued to
make progress on de-risking the business and improving our
portfolio. Finally, we're realizing tangible benefits from
our strong relationship with our largest shareholder, Marubeni,
both in the financial markets and through a new leasing joint
venture."
____________________________
Note: Non-GAAP items reconciled in the Appendix.
|
Financial
Results
|
|
|
(in thousands, except
share data)
|
Three Months
Ended
March
31,
|
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
Total Lease Rental and
Finance Lease Revenues
|
$ 183,067
|
|
$ 178,753
|
|
|
|
|
|
|
|
Total
Revenues
|
$ 183,665
|
|
$ 194,296
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$ 183,879
|
|
$ 190,214
|
|
|
|
|
|
|
|
Net income
|
$ 36,262
|
|
$ 43,269
|
|
|
Per common share -
Diluted
|
$ 0.46
|
|
$ 0.53
|
|
|
|
|
|
|
|
Adjusted net
income
|
$ 44,091
|
|
$ 50,457
|
|
|
Per common share -
Diluted
|
$ 0.56
|
|
$ 0.62
|
|
First Quarter Results
Total revenues were $183.7
million, a decrease of $10.6
million, or 5% from the previous year, driven by a
$16.8 million decrease in maintenance
revenues. During the first quarter of 2015, we recorded
$18.1 million of maintenance revenue,
primarily from two scheduled lease expirations with significant
return compensation payments.
Adjusted EBITDA for the first quarter was $183.9 million, down $6.3
million, or 3% from the first quarter of 2015, due primarily
to lower maintenance revenues of $16.8
million, partially offset by higher gains from aircraft
sales of $6.6 million and higher
lease rental and finance lease revenues of $4.3 million.
Adjusted net income for the quarter was $44.1 million, down $6.4
million year over year. The decrease was due primarily
to lower total revenues of $10.6
million, partially offset by higher gains from aircraft
sales of $6.6 million.
Aviation Assets
During the first quarter of 2016, we acquired three aircraft for
approximately $100 million and have
commitments to acquire 26 additional aircraft later this year for
more than $750 million. These
29 aircraft have a weighted average age of seven years and most are
expected to close by the end of the third quarter.
Narrow-body aircraft comprise 26 of the total.
Also during the first quarter of 2016, we sold twelve aircraft
and other flight equipment for more than $300 million and recorded a gain on sale of
$12.8 million. The aircraft
sold consisted of two A330s and ten A320s including four newer
A320s sold into our joint venture with Ontario Teachers' Pension
Plan. The weighted average age of aircraft sold was approximately
nine years.
As of March 31, 2016, Aircastle
owned and managed 162 aircraft with a value of $6.4 billion. Of these, 153 aircraft having
a net book value of $5.8 billion are
owned. We also manage nine aircraft with a net book value of
approximately $590 million dollars on
behalf of our joint venture with Ontario Teachers'.
|
Owned
Aircraft
|
|
|
As
of
March 31,
2016(1)
|
|
As
of
March 31,
2015(1)
|
|
Total Flight
Equipment Held for Lease ($ mils.)
|
|
|
|
|
$
|
5,771
|
|
|
$
|
5,817
|
|
|
Unencumbered Flight
Equipment Held for Lease ($ mils.)
|
|
|
|
|
$
|
3,752
|
|
|
$
|
3,497
|
|
|
Number of
Aircraft
|
|
|
|
153
|
|
|
152
|
|
|
Number of
Unencumbered Aircraft
|
|
|
|
111
|
|
|
99
|
|
|
Weighted Average
Fleet Age (years)(2)
|
|
|
|
7.6
|
|
|
8.3
|
|
|
Weighted Average
Remaining Lease Term
(years)(3)
|
|
|
|
5.6
|
|
|
5.6
|
|
|
Weighted Average
Fleet Utilization for the period
ended(4)
|
|
|
|
99.6%
|
|
|
98.7%
|
|
|
Portfolio Yield for
the year ended(5)
|
|
|
|
12.4%
|
|
|
12.6%
|
|
|
Net Cash Interest
Margin(6)
|
|
|
|
8.8%
|
|
|
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 2016, we issued $500 million in unsecured Senior Notes due 2023
bearing a coupon of 5.00%, at par, and further increased the size
of our unsecured revolving credit facility by $75 million, to $675
million. The term of our revolver was also extended
one year to May 2020. We also closed a three-year
$120 million term financing facility
with a group of Japanese financial institutions led by Development
Bank of Japan.
We submitted notice to prepay our Securitization No. 2 in
May. Repaying this facility will free up approximately
$500 million in collateral, further
enhancing the Company's financial position.
IBJ Leasing Joint Venture
Through our relationship with Marubeni Corporation, we
established a new joint venture with the leasing arm of Industrial
Bank of Japan. This new venture is targeted at new
narrow-body aircraft leased to premier airlines providing Aircastle
with better access to this market sector and to these
customers.
Common Dividend and Share Repurchase Activity
On May 2, 2016, Aircastle's Board
of Directors declared a second quarter 2016 cash dividend on its
common shares of $0.24 per share,
payable on June 15, 2016 to
shareholders of record on May 31,
2016. This is our 40th consecutive
dividend.
During the first quarter, we repurchased over 1.6 million shares
at an average cost of $18.83.
Since 2011, we've repurchased $188.5
million of our shares, at an average cost of $13.21.
Conference Call
In connection with this earnings release, management will host
an earnings conference call on Wednesday,
May 4, 2016 at 10:00 A.M. Eastern
time. All interested parties are welcome to
participate on the live call. The conference call can be
accessed by dialing (888) 395-3227 (from within the U.S. and
Canada) or (719) 325-2329 (from
outside of the U.S. and Canada)
ten minutes prior to the scheduled start and referencing the
passcode "1241960".
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 3,
2016 by dialing (888) 203-1112 (from within the U.S. and
Canada) or (719) 457-0820
(from outside of the U.S. and Canada); please reference passcode
"1241960".
About Aircastle Limited
Aircastle Limited acquires, leases and sells commercial jet
aircraft to airlines throughout the world. As of March 31, 2016, Aircastle owned and managed on
behalf of its joint ventures 162 aircraft on lease with 53
customers located in 33 countries.
Safe Harbor
All statements in this press 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 proposed public
offering of notes and 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 press 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 1A of Aircastle's 2015 Annual Report on Form
10-K. 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 press
release. Aircastle expressly disclaims any obligation to revise or
update publicly any forward-looking statement to reflect future
events or circumstances.
|
Aircastle Limited
and Subsidiaries
|
|
Consolidated
Balance Sheets
|
|
(Dollars in
thousands, except share data)
|
|
|
March 31,
2016
|
|
December 31,
2015
|
|
(Unaudited)
|
|
|
|
ASSETS
|
|
|
|
|
Cash and cash
equivalents
|
$
|
594,376
|
|
|
$
|
155,904
|
|
|
Accounts
receivable
|
7,388
|
|
|
8,566
|
|
|
Restricted cash and
cash equivalents
|
76,692
|
|
|
98,137
|
|
|
Restricted liquidity
facility collateral
|
65,000
|
|
|
65,000
|
|
|
Flight equipment held
for lease, net of accumulated depreciation of $1,213,047 and
$1,306,024,
respectively
|
5,558,666
|
|
|
5,867,062
|
|
|
Net investment in
finance and sales-type leases
|
212,336
|
|
|
201,211
|
|
|
Unconsolidated equity
method investment
|
59,087
|
|
|
50,377
|
|
|
Other
assets
|
129,287
|
|
|
123,707
|
|
|
Total
assets
|
$
|
6,702,832
|
|
|
$
|
6,569,964
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
LIABILITIES
|
|
|
|
|
Borrowings from
secured financings, net of debt issuance costs
|
$
|
1,021,829
|
|
|
$
|
1,146,238
|
|
|
Borrowings from
unsecured financings, net of debt issuance costs
|
3,162,551
|
|
|
2,894,918
|
|
|
Accounts payable,
accrued expenses and other liabilities
|
141,604
|
|
|
131,058
|
|
|
Lease rentals
received in advance
|
54,756
|
|
|
67,327
|
|
|
Liquidity
facility
|
65,000
|
|
|
65,000
|
|
|
Security
deposits
|
112,719
|
|
|
115,642
|
|
|
Maintenance
payments
|
373,489
|
|
|
370,281
|
|
|
Total
liabilities
|
4,931,948
|
|
|
4,790,464
|
|
|
|
|
|
|
Commitments and
Contingencies
|
|
|
|
|
|
|
|
|
SHAREHOLDERS'
EQUITY
|
|
|
|
|
Preference shares,
$0.01 par value, 50,000,000 shares authorized, no shares
issued and outstanding
|
—
|
|
|
—
|
|
|
Common shares,
$0.01 par value, 250,000,000 shares authorized,
78,810,706 shares issued and
outstanding at March 31, 2016; and 80,232,260 shares issued and
outstanding at December 31, 2015
|
788
|
|
|
802
|
|
|
Additional paid-in
capital
|
1,519,017
|
|
|
1,550,337
|
|
|
Retained
earnings
|
258,921
|
|
|
241,574
|
|
|
Accumulated other
comprehensive loss
|
(7,842)
|
|
|
(13,213)
|
|
|
Total shareholders'
equity
|
1,770,884
|
|
|
1,779,500
|
|
|
Total liabilities and
shareholders' equity
|
$
|
6,702,832
|
|
|
$
|
6,569,964
|
|
|
Aircastle Limited
and Subsidiaries
|
|
Consolidated
Statements of Income
|
|
(Dollars in
thousands, except per share amounts)
|
|
(Unaudited)
|
|
|
Three Months Ended
March 31,
|
|
2016
|
|
2015
|
|
Revenues:
|
|
|
|
|
Lease rental
revenue
|
$
|
179,570
|
|
|
$
|
177,146
|
|
|
Finance and
sales-type lease revenue
|
3,498
|
|
|
1,607
|
|
|
Amortization of net
lease discounts and lease incentives
|
(1,070)
|
|
|
(3,824)
|
|
|
Maintenance
revenue
|
1,260
|
|
|
18,073
|
|
|
Total lease
revenue
|
183,258
|
|
|
193,002
|
|
|
Other
revenue
|
407
|
|
|
1,294
|
|
|
Total
revenues
|
183,665
|
|
|
194,296
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
Depreciation
|
76,647
|
|
|
74,846
|
|
|
Interest,
net
|
64,241
|
|
|
62,131
|
|
|
Selling, general and
administrative (including non-cash share based payment expense of
$1,643 and $1,170
for the three months ended March 31, 2016 and 2015,
respectively)
|
15,492
|
|
|
13,932
|
|
|
Maintenance and other
costs
|
1,403
|
|
|
2,943
|
|
|
Total
expenses
|
157,783
|
|
|
153,852
|
|
|
|
|
|
|
Other income
(expense):
|
|
|
|
|
Gain on sale of
flight equipment
|
12,833
|
|
|
6,253
|
|
|
Other
|
(73)
|
|
|
(6)
|
|
|
Total other
income
|
12,760
|
|
|
6,247
|
|
|
|
|
|
|
Income from
continuing operations before income taxes and earnings of
unconsolidated equity method
investment
|
38,642
|
|
|
46,691
|
|
|
Income tax
provision
|
3,939
|
|
|
4,863
|
|
|
Earnings of
unconsolidated equity method investment, net of tax
|
1,559
|
|
|
1,441
|
|
|
Net income
|
$
|
36,262
|
|
|
$
|
43,269
|
|
|
|
|
|
|
Earnings per common
share — Basic:
|
|
|
|
|
Net income per
share
|
$
|
0.46
|
|
|
$
|
0.53
|
|
|
|
|
|
|
Earnings per common
share — Diluted:
|
|
|
|
|
Net income per
share
|
$
|
0.46
|
|
|
$
|
0.53
|
|
|
|
|
|
|
Dividends declared
per share
|
$
|
0.24
|
|
|
$
|
0.22
|
|
|
Aircastle Limited
and Subsidiaries
|
|
Consolidated
Statements of Cash Flows
|
|
(Dollars in
thousands)
|
|
(Unaudited)
|
|
|
Three Months Ended
March 31,
|
|
2016
|
|
2015
|
|
Cash flows from
operating activities:
|
|
|
|
|
Net income
|
$
|
36,262
|
|
|
$
|
43,269
|
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
Depreciation
|
76,647
|
|
|
74,846
|
|
|
Amortization of
deferred financing costs
|
5,607
|
|
|
3,699
|
|
|
Amortization of net
lease discounts and lease incentives
|
1,070
|
|
|
3,824
|
|
|
Deferred income
taxes
|
(392)
|
|
|
2,110
|
|
|
Non-cash share based
payment expense
|
1,643
|
|
|
1,170
|
|
|
Cash flow hedges
reclassified into earnings
|
5,372
|
|
|
8,233
|
|
|
Security deposits and
maintenance payments included in earnings
|
(1,648)
|
|
|
(4,481)
|
|
|
Gain on sale of
flight equipment
|
(12,833)
|
|
|
(6,253)
|
|
|
Other
|
(1,558)
|
|
|
209
|
|
|
Changes in certain
assets and liabilities:
|
|
|
|
|
Accounts
receivable
|
992
|
|
|
948
|
|
|
Other
assets
|
(1,137)
|
|
|
(7,176)
|
|
|
Accounts payable,
accrued expenses and other liabilities
|
15,066
|
|
|
12,874
|
|
|
Lease rentals
received in advance
|
(3,827)
|
|
|
(344)
|
|
|
Net cash provided by
operating activities
|
121,264
|
|
|
132,928
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
Acquisition and
improvement of flight equipment
|
(96,524)
|
|
|
(264,271)
|
|
|
Proceeds from sale of
flight equipment
|
306,029
|
|
|
50,525
|
|
|
Restricted cash and
cash equivalents related to investing activities
|
17,000
|
|
|
—
|
|
|
Aircraft purchase
deposits and progress payments, net of returned deposits and
aircraft sales deposits
|
(7,162)
|
|
|
(1,250)
|
|
|
Collections on
finance and sales-type leases
|
3,663
|
|
|
2,274
|
|
|
Unconsolidated equity
method investment and associated costs
|
(7,731)
|
|
|
—
|
|
|
Other
|
(176)
|
|
|
(372)
|
|
|
Net cash provided by
(used in) investing activities
|
215,099
|
|
|
(213,094)
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
Repurchase of
shares
|
(33,250)
|
|
|
(1,960)
|
|
|
Proceeds from secured
and unsecured debt financings
|
500,000
|
|
|
500,000
|
|
|
Repayments of secured
and unsecured debt financings
|
(352,928)
|
|
|
(253,681)
|
|
|
Deferred financing
costs
|
(9,454)
|
|
|
(8,971)
|
|
|
Restricted cash and
cash equivalents related to financing activities
|
4,445
|
|
|
11,923
|
|
|
Security deposits and
maintenance payments received
|
33,147
|
|
|
33,365
|
|
|
Security deposits and
maintenance payments returned
|
(20,936)
|
|
|
(22,314)
|
|
|
Dividends
paid
|
(18,915)
|
|
|
(17,860)
|
|
|
Net cash provided by
financing activities
|
102,109
|
|
|
240,502
|
|
|
Net increase in
cash and cash equivalents
|
438,472
|
|
|
160,336
|
|
|
Cash and cash
equivalents at beginning of period
|
155,904
|
|
|
169,656
|
|
|
Cash and cash
equivalents at end of period
|
$
|
594,376
|
|
|
$
|
329,992
|
|
|
Aircastle Limited
and Subsidiaries
|
|
Selected Financial
Guidance Elements for the Second Quarter of 2016
|
|
($ in millions,
except for percentages)
|
|
(Unaudited)
|
|
|
|
Guidance
Item
|
Q2:16
|
|
Lease rental
revenue
|
$177 -
$181
|
|
Finance lease
revenue
|
$3 - $4
|
|
Maintenance
revenue
|
$6 - $8
|
|
Amortization of net
lease discounts and lease incentives
|
($3) -
($4)
|
|
SG&A
|
$14 - $15
|
|
Depreciation
|
$76 - $78
|
|
Interest,
net(1)
|
$63 - $65
|
|
Gain on
sale
|
$0 - $2
|
|
Full year effective
tax rate
|
10% - 11%
|
|
|
|
(1) Includes non-cash
hedge loss amortization charges related to the payoff of
Securitization No.1 of $2.2 million.
|
|
Aircastle Limited
and Subsidiaries
|
|
Supplemental
Financial Information
|
|
(Amount in
thousands, except per share amounts)
|
|
(Unaudited)
|
|
|
Three Months
Ended
March
31,
|
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
Revenues
|
$ 183,665
|
|
$ 194,296
|
|
|
|
|
|
|
|
EBITDA
|
$ 182,159
|
|
$ 188,933
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$ 183,879
|
|
$ 190,214
|
|
|
|
|
|
|
|
Adjusted net
income
|
$ 44,091
|
|
$ 50,457
|
|
|
|
|
|
|
|
Adjusted net income
allocable to common shares
|
$ 43,772
|
|
$ 50,136
|
|
|
Per common share -
Basic
|
$ 0.56
|
|
$ 0.62
|
|
|
Per common share -
Diluted
|
$ 0.56
|
|
$ 0.62
|
|
|
|
|
|
|
|
Basic common shares
outstanding
|
78,543
|
|
80,564
|
|
|
Diluted common shares
outstanding
|
78,543
|
|
80,564
|
|
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
March 31,
|
|
2016
|
|
2015
|
|
(Dollars in
thousands)
|
|
Net income
|
$
|
36,262
|
|
|
$
|
43,269
|
|
|
Depreciation
|
76,647
|
|
|
74,846
|
|
|
Amortization of net
lease discounts and lease incentives
|
1,070
|
|
|
3,824
|
|
|
Interest,
net
|
64,241
|
|
|
62,131
|
|
|
Income tax
provision
|
3,939
|
|
|
4,863
|
|
|
EBITDA
|
182,159
|
|
|
188,933
|
|
|
Adjustments:
|
|
|
|
|
Non-cash share based
payment expense
|
1,643
|
|
|
1,170
|
|
|
Gain on
mark-to-market of interest rate derivative contracts
|
77
|
|
|
111
|
|
|
Adjusted
EBITDA
|
$
|
183,879
|
|
|
$
|
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.
|
Aircastle Limited
and Subsidiaries
|
|
Reconciliation of
GAAP to Non-GAAP Measures
|
|
Adjusted Net
Income Reconciliation
|
|
(Dollars in
thousands)
|
|
(Unaudited)
|
|
|
Three Months Ended
March 31,
|
|
2016
|
|
2015
|
|
(Dollars in
thousands)
|
|
Net income
|
$
|
36,262
|
|
|
$
|
43,269
|
|
|
Loan termination
fee(1)
|
1,509
|
|
|
—
|
|
|
Gain on mark to market
of interest rate derivative contracts(2)
|
77
|
|
|
111
|
|
|
Write-off of deferred
financing fees(1)
|
1,972
|
|
|
—
|
|
|
Non-cash share based payment expense(3)
|
1,643
|
|
|
1,170
|
|
|
Term
Financing No. 1 hedge loss amortization
charges(1)
|
—
|
|
|
3,126
|
|
|
Securitization No. 1 hedge loss amortization charges
(1)
|
2,628
|
|
|
2,781
|
|
|
Adjusted net
income
|
$
|
44,091
|
|
|
$
|
50,457
|
|
|
______________
|
|
|
(1) Included in
Interest, net.
|
|
(2) Included in
Other income (expense).
|
|
(3) Included in
Selling, general and administrative expenses.
|
|
|
Aircastle Limited
and Subsidiaries
Reconciliation of GAAP to Non-GAAP Measures
Cash Return on Equity Calculation
(Dollars in thousands)
(Unaudited)
|
|
|
|
|
CFFO
|
Finance Lease
Collections
|
(Gain) Loss on
Sale of Eqt.
|
Deprec.
|
Distributions
in
excess (less
than) Equity
Earnings
|
Cash
Earnings
|
Average
Shareholders'
Equity
|
12 Month Cash
ROE
|
|
|
2011
|
$359,377
|
|
$39,092
|
$242,103
|
|
$156,366
|
$1,370,513
|
11.4%
|
|
|
2012
|
$427,277
|
$3,852
|
$5,747
|
$269,920
|
|
$166,956
|
$1,425,658
|
11.7%
|
|
|
2013
|
$424,037
|
$9,508
|
$37,220
|
$284,924
|
|
$185,841
|
$1,513,156
|
12.3%
|
|
|
2014
|
$458,786
|
$10,312
|
$23,146
|
$299,365
|
$667
|
$193,546
|
$1,661,228
|
11.7%
|
|
|
2015
|
$526,285
|
$9,559
|
$58,017
|
$318,783
|
($52)
|
$275,026
|
$1,759,871
|
15.6%
|
|
|
LTM
|
$514,621
|
$10,948
|
$64,597
|
$320,584
|
($1,235)
|
$268,347
|
$1,769,981
|
15.2%
|
|
|
|
|
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
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
|
|
$ 188,037
|
|
$
51,428
|
|
9.2%
|
|
Q4:15
|
|
$ 5,835,547
|
|
$ 183,394
|
|
$
51,250
|
|
9.1%
|
|
Q1:16
|
|
$ 5,781,858
|
|
$ 179,570
|
|
$
51,815
|
|
8.8%
|
|
|
1.
|
Excludes loan
termination payments of $3.2 million and $3.0 million in the second
quarter of 2011 and 2013 respectively and $1.5 million in the first
quarter of 2016
|
|
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,
2016
|
|
|
|
Weighted-average
shares(1):
|
Shares
|
|
Percent(2)
|
|
|
|
Common shares
outstanding – Basic
|
78,543
|
|
99.28%
|
|
|
|
Unvested restricted
common shares
|
572
|
|
0.72%
|
|
|
|
Total
weighted-average shares outstanding
|
79,116
|
|
100.00%
|
|
|
|
|
|
|
|
|
|
|
|
Net income
allocation
|
|
|
|
|
|
|
|
|
Net income
|
$36,262
|
|
100.00%
|
|
|
|
Distributed and
undistributed earnings allocated to unvested restricted
shares
|
(262)
|
|
(0.72%)
|
|
|
|
Earnings available to
common shares
|
$36,000
|
|
99.28%
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net
income allocation
|
|
|
|
|
|
|
|
|
Adjusted net
income
|
$44,091
|
|
100.00%
|
|
|
|
Amounts allocated to
unvested restricted shares
|
(319)
|
|
(0.72%)
|
|
|
|
Amounts allocated to
common shares
|
$43,772
|
|
99.28%
|
|
|
|
|
(1) For the three months
ended March 31, 2016 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
March 31,
2015
|
|
|
|
Weighted-average
shares(1):
|
Shares
|
|
Percent(2)
|
|
|
|
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.
|
|
Contact:
|
|
|
Aircastle Advisor
LLC
|
The IGB
Group
|
|
Frank Constantinople,
SVP Investor Relations
|
Leon
Berman
|
|
Tel:
+1-203-504-1063
|
Tel:
+1-212-477-8438
|
|
fconstantinople@aircastle.com
|
lberman@igbir.com
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/aircastle-announces-first-quarter-2016-results-300262420.html
SOURCE Aircastle Limited