PR Newswire
STAMFORD, Conn., Nov. 1, 2016
STAMFORD, Conn., Nov. 1, 2016 /PRNewswire/ --
Key Financial Metrics
Highlights
(1) Refer to the selected financial information accompanying this press release for a reconciliation of GAAP to Non-GAAP numbers.
Aircastle Limited (the "Company" or "Aircastle") (NYSE: AYR) reported a third quarter 2016 net income of $27.4 million, or $0.35 per diluted common share, and adjusted net income of $29.7 million, or $0.38 per diluted common share. The third quarter results included total revenues of $194.7 million, a decrease of 8.2%, versus $212.1 million in the third quarter of 2015.
Commenting on the results, Ron Wainshal, Aircastle's CEO, stated "Over the past several months, investor demand for aircraft increased markedly, causing prices to rise. We seized on this opportunity to improve the quality of our portfolio by reducing our freighter and wide-body aircraft holdings while also planting the seeds for profitable future asset sales."
Mr. Wainshal added, "We expect to complete $1.5 billion in acquisitions in 2016, taking Aircastle's owned and managed fleet to nearly 200 aircraft. This investment level exceeds last year's, though we've slowed our pace of growth during the second half as we remain disciplined buyers with limited investment commitments. Despite the competitive market, we're still generating attractive new investments by providing aircraft sellers with value-added propositions that play to our strengths."
Mr. Wainshal concluded, "Aircastle continues to grow profitably and responsibly as we reshape our portfolio towards modern, narrow-body aircraft that offer solid long-term return profiles. At the same time, we are replacing less promising assets, even if they have higher near-term accounting yields. We are encouraged with our success in building and enhancing the company's sustainable earnings power, and to that end, we are increasing our quarterly dividend to $0.26 per share."
Michael Inglese, Aircastle's CFO, added, "We are working to drive our net cash interest margins higher as older and more expensive debt rolls off and gets replaced by flexible and attractively priced new financings and as we deploy our strong cash balances. Similarly, we expect our portfolio management efforts to enhance the strength and duration of our revenue yields."
Financial Results | |||||||
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(in thousands, except share data) | Three Months Ended September 30, | | Nine Months Ended September 30, | ||||
| 2016 | | 2015 | | 2016 | | 2015 |
| | | | | | | |
Total revenues | $ 194,652 | | $ 212,074 | | $ 568,305 | | $ 610,935 |
| | | | | | | |
Lease rental and finance and sales-type lease | $ 187,329 | | $ 189,906 | | $ 550,696 | | $ 555,375 |
| | | | | | | |
Adjusted EBITDA(1) | $ 181,145 | | $ 216,311 | | $ 547,460 | | $ 621,133 |
| | | | | | | |
Net income (loss) | $ 27,437 | | $ (13,989 ) | | $ 83,729 | | $ 71,088 |
Per common share - Diluted | $ 0.35 | | $ (0.17 ) | | $ 1.06 | | $ 0.88 |
| | | | | | | |
Adjusted net income (loss)(1) | $ 29,706 | | $ (9,679 ) | | $ 98,002 | | $ 88,007 |
Per common share - Diluted | $ 0.38 | | $ (0.12 ) | | $ 1.24 | | $ 1.08 |
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(1) Refer to the selected financial information accompanying this press release for a reconciliation of GAAP to Non-GAAP |
Third Quarter Results
Total revenues were $194.7 million, a decrease of $17.4 million, or 8.2%, from the prior year. The decrease was driven by $8.9 million less in maintenance revenue and a $7.5 million drop in lease termination fees, stemming from a decline in scheduled lease expirations this year.
Lease rental and finance and sales-type lease revenues during the third quarter were $187.3 million versus $189.9 million the prior year. The 1.4% decrease reflects the net year-over-year impact from aircraft acquisitions, dispositions and lease extensions.
Net income for the third quarter was $27.4 million, an improvement of $41.4 million compared to a net loss of ($14.0) million in the previous year, while adjusted net income for the third quarter of 2016 improved by $39.4 million. Lower total revenues and gains from aircraft sales were offset by a $67.9 million reduction in aircraft impairment charges and $9.1 million less in depreciation expense.
Adjusted EBITDA for the third quarter was $181.1 million, down 16.3%, or $35.2 million, versus the same quarter last year. This result is driven primarily by declines of $15.8 million in gains from aircraft sales, $11.5 million in total lease revenue and finance lease and maintenance revenue, and $7.5 million in early termination fees.
Aviation Assets
We acquired ten aircraft for $303 million during the third quarter. During the first nine months of 2016, we purchased 32 aircraft for $961 million. The aircraft we acquired year to date had an average age of 6.8 years and an average remaining lease term of 6.4 years. For the full year, we expect to complete $1.5 billion in aircraft acquisitions, of which $1.4 billion will be narrow-body aircraft.
During the third quarter of 2016, we sold five aircraft, including two freighters and two wide-bodies. These sales reduced our freighter fleet to nine aircraft, accounting for 8.6% of the total net book value of our flight equipment held for lease. We also sold one A321 aircraft to our joint venture with IBJ Leasing. Total sales proceeds during the third quarter were approximately $150 million. We expect to record increased asset sales activity during the fourth quarter of 2016.
During the first three quarters of 2016, we sold nineteen aircraft for proceeds of $489 million and a net gain on sale of $14.9 million. These sales included five wide-body and two freighter aircraft. Excluding the six aircraft sold to our joint ventures with Ontario Teachers' Pension Plan and IBJ Leasing, the average age of the other thirteen aircraft sold was approximately seventeen years.
Our fleet utilization during the third quarter was 98.2%. During the quarter, we delivered three aircraft that had been off-lease to airline customers. Two of these were 737-800s acquired from a Brazilian airline prior to their delivery from Boeing and had been undergoing reconfiguration for a new lessee in China. The other aircraft was a mid-aged A330-200 that underwent maintenance prior to its delivery to Aerolineas Argentinas. We expect fleet utilization during the fourth quarter of 2016 to be in excess of 99%.
As of September 30, 2016, Aircastle owned 175 aircraft having a net book value of $6.3 billion. We also manage eleven aircraft with a net book value of $629 million dollars on behalf of our joint ventures with Ontario Teachers' Pension Plan and IBJ Leasing of Japan.
| | | Owned | | Owned | ||||||
Total Flight Equipment Held for Lease ($ mils.) | | | | | $ | 6,270 | | | $ | 6,007 | |
Unencumbered Flight Equipment Held for Lease ($ mils.) | | | | | $ | 4,343 | | | $ | 3,722 | |
Number of Aircraft | | | | 175 | | | 160 | | |||
Number of Unencumbered Aircraft | | | | 139 | | | 109 | | |||
Weighted Average Fleet Age (years)(2) | | | | 7.6 | | | 7.7 | | |||
Weighted Average Remaining Lease Term (years)(2) | | | | 5.3 | | | 5.9 | | |||
Weighted Average Fleet Utilization for the period ended(3) | | | | 98.2% | | | 99.9% | | |||
Portfolio Yield for the quarter ended(4) | | | | 12.4% | | | 12.7% Werbung Mehr Nachrichten zur Aircastle Aktie kostenlos abonnieren
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