AIRCASTLE LIMITED STAMFORD, Conn., Aug. 4, 2016 /PRNewswire/ --
Key Financial Metrics
-- Total revenues were $190.0 million for the second quarter of 2016
-- Total lease rental and finance and sales-type lease revenues were $180.3
million
-- Net income was $20.0 million, or $0.25 per diluted common share
-- Adjusted net income was $24.2 million, or $0.31 per diluted common share
-- Adjusted EBITDA was $182.4 million for the second quarter
-- Cash ROE was 14.0%; net cash interest margin was 8.5%
Highlights
-- Acquired nineteen aircraft for $560 million during the quarter
-- Obtained $1.1 billion in new financing year-to-date, including a $400
million term loan facility closed during the second quarter
-- Signed leases for three new 737-800s and three Embraer E2 aircraft from
our order stream
-- Continued de-risking our business by selling two older freighters
-- Completed our annual recoverability analysis for freighter and wide-body
aircraft, and reduced the carrying value of an older wide-body
-- Declared our 41(st) consecutive quarterly dividend
Aircastle Limited (the "Company" or "Aircastle") (NYSE: AYR) reported second quarter 2016 net income of $20.0 million, or $0.25 per diluted common share and adjusted net income of $24.2 million, or $0.31 per diluted common share. The second quarter results included total lease rental and finance and sales-type lease revenues of $180.3 million, a decrease of 3%, as compared to $186.7 million in the second quarter of 2015.
Commenting on the results, Ron Wainshal, Aircastle's CEO, stated "We mark the ten year anniversary of Aircastle's initial public offering with yet another successful quarter, noting that we've built an aircraft portfolio that is worth nearly four and half times more today and has delivered excellent performance along the way. We've also created a truly unique and relevant company that is both the world's largest aircraft value investor and one that is positioned to prosper and grow both in stable and turbulent times."
Mr. Wainshal continued, "Thanks to our talented team, supportive partners and our conservative and flexible capital structure, we are seizing on prime investment opportunities arising from the heightened volatility we see in the world today. Our reliability as a trading partner allowed us to purchase $660 million in aircraft during the first half of the year and our strong investment pipeline gives us confidence that we'll exceed last year's $1.4 billion in acquisitions. At the same time our strength and agility as a borrower enabled us to raise $1.1 billion of attractively priced debt capital in moments when the market was favorable."
Concluding, Mr. Wainshal added, "By limiting our long-term capital commitments, maintaining our financial flexibility and continuing to de-risk our portfolio, we are in a very strong position today. Aircastle is continuing to grow profitably, consistently originating investments with attractive returns despite the extremely low yield environment and competition for new business. We are also building on our track record of sharing profits with our shareholders by declaring our 41(st) consecutive quarterly dividend."
Financial Results
(in thousands, except share data) Three Months Ended Six Months Ended
June 30, June 30,
-------- --------
2016 2015 2016 2015
---- ---- ---- ----
Total Revenues $189,988 $204,565 $373,653 $398,861
Lease Rental and Finance and Sales-Type Lease Revenues $180,299 $186,716 $363,367 $365,469
Adjusted EBITDA $182,436 $214,608 $366,315 $404,822
Net income $20,030 $41,808 $56,292 $85,077
Per common share - Diluted $0.25 $0.51 $0.71 $1.05
Adjusted net income $24,205 $47,229 $68,296 $97,686
Per common share - Diluted $0.31 $0.58 $0.86 $1.20
Second Quarter Results
Total revenues were $190.0 million, a decrease of $14.6 million, or 7% from the previous year. A decrease of $8.8 million in maintenance revenues and a $6.4 million drop in lease rental and finance and sales-type lease revenue accounted for most of the change. During the second quarter of 2015, we recorded $21.3 million of maintenance revenue, primarily due to the expiration of four leases with significant return compensation payments. The decline in lease rental and finance lease revenue was due to the sale of 43 aircraft since the second quarter of 2015.
During the second quarter, we agreed to sell two 25-year old 747-400 freighters scheduled to come off lease within the next twelve months and recorded an impairment charge of $5.1 million. Both aircraft were sold in July.
We completed our annual fleet review for wide-body and freighter aircraft during the second quarter this year given weaker market dynamics for these aircraft. In connection with this review, we recorded impairment charges of $11.7 million and maintenance revenue of $4.0 million related to one sixteen-year old A330-200 approaching lease expiry. We will perform our annual fleet review for narrow-body aircraft in the third quarter.
Adjusted EBITDA for the second quarter was $182.4 million, down $32.2 million, or 15% from the second quarter of 2015, mostly due to lower revenues of $14.6 million and lower gains from the sale of flight equipment of $18.9 million.
Net income in the second quarter was $20.0 million, down 52%, or $21.8 million. The decrease was primarily due to lower revenues of $14.6 million and lower gain on sale of $18.9 million, partially offset by lower aircraft impairment charges of $7.2 million and lower depreciation and taxes of $4.4 million.
Adjusted net income for the quarter was $24.2 million, down $23.0 million compared to the prior year period. The decrease was primarily due to lower revenues of $14.6 million, and lower gain on sale of $18.9 million, partially offset by lower aircraft impairment charges of $7.2 million.
Aviation Assets
During the second quarter of 2016, we acquired nineteen aircraft for approximately $560 million. In the first half of 2016, we acquired a total of 22 aircraft for $660 million. These aircraft have a weighted average remaining lease term of 5.7 years. Narrow-body aircraft comprise all but three of this total, with the remainder being wide-body aircraft assumed to be on last leases.
During the second quarter we executed leases with two customers in China for three Boeing 737-800 aircraft acquired new upon delivery from the manufacturer. These aircraft had been part of a Brazilian airline's order stream and were purchased on spec. We expect to deliver all three of these aircraft on lease before the end of the third quarter. We also signed leases with Azul, a Brazilian airline, for three Embraer E2 E195 aircraft from our order stream.
During the first half of 2016, we sold fourteen aircraft and other flight equipment for proceeds of approximately $340 million and recorded a gain on sale of $15.0 million. The aircraft sold consisted of two A330s, one 777-200 and six A320s sold to third parties. In addition five newer A320s were sold to our joint ventures with Ontario Teachers' Pension Plan and IBJ Leasing. The weighted average age of the aircraft sold, excluding sales to our joint ventures, was approximately eleven years.
As of June 30, 2016, Aircastle owned and managed 179 aircraft with a net book value of $6.8 billion. Of this total, 169 aircraft having a net book value of $6.2 billion are owned, while we manage an additional ten aircraft with a net book value of approximately $612 million dollars on behalf of our joint ventures with Ontario Teachers' and IBJ Leasing.
Owned Aircraft As of As of
June 30, June 30,
2016(1) 2015(1)
Total Flight Equipment Held for Lease ($ mils.) $6,168 $6,076
Unencumbered Flight Equipment Held for Lease ($ mils.) $4,499 $3,705
Number of Aircraft 169 161
Number of Unencumbered Aircraft(2) 142 110
Weighted Average Fleet Age (years)((3)) 7.7 8.0
Weighted Average Remaining Lease Term (years)(4) 5.5 5.8
Weighted Average Fleet Utilization for the period ended(5) 99.0% 99.1%
Portfolio Yield for the year ended(6) 12.4% 12.6%
Net Cash Interest Margin(7) 8.5% 9.1%
(1) Calculated using net book value
of flight equipment held for
lease and net investment in
finance and sales-type leases
at period end.
(2) The second quarter of 2016
includes ten aircraft with a
net book value of $318.6
million that will secure our
ACS 2016 Bank Financing.
(3) Weighted average age by net
book value.
(4) Weighted average remaining
lease term by net book value.
(5) Aircraft on-lease days as a
percent of total days in
period weighted by net book
value.
(6) 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.
(7) 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
Year-to-date, we've secured $1.1 billion of new financing. During the second quarter of 2016, we closed a $400 million term financing secured by seventeen aircraft, marking our return to the secured bank financing market. This financing can be enlarged by approximately $68 million by including two additional aircraft as collateral. We also prepaid our Securitization No. 2 in May which freed up approximately $500 million in collateral, further enhancing the Company's financial position.
Common Dividend and Share Repurchase Activity
On August 2, 2016, Aircastle's Board of Directors declared a third quarter 2016 cash dividend on its common shares of $0.24 per share, payable on September 15, 2016 to shareholders of record on August 26, 2016. This is our 41(st) consecutive dividend. In addition, since the beginning of this year we repurchased 1.8 million shares at an average cost of $18.84, including 176,574 shares purchased during June and July for an average cost of $18.92 per share.
Conference Call
In connection with this earnings release, management will host an earnings conference call on Thursday, August 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) 430-8709 (from within the U.S. and Canada) or (719) 325-2323 (from outside of the U.S. and Canada) ten minutes prior to the scheduled start and referencing the passcode "8881544".
A simultaneous webcast of the conference call will be available to the public on a listen-only basis at www.aircastle.com. Please allow extra time prior to the call to visit the site and download the necessary software required to listen to the internet broadcast. A replay of the webcast will be available for one month following the call. In addition to this earnings release an accompanying power point presentation has been posted to the Investor Relations section of Aircastle's website.
For those who are not available to listen to the live call, a replay will be available until 1:00 P.M. Eastern time on Saturday, September 3, 2016 by dialing (866) 375-1919 (from within the U.S. and Canada) or (719) 457-0820 (from outside of the U.S. and Canada); please reference passcode "8881544".
About Aircastle Limited
Aircastle Limited acquires, leases and sells commercial jet aircraft to airlines throughout the world. As of June 30, 2016, Aircastle owned and managed on behalf of its joint ventures 179 aircraft leased to 63 customers located in 35 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.
Note: Non-GAAP items reconciled in the Appendix.
Aircastle Limited and Subsidiaries
Consolidated Balance Sheets
(Dollars in thousands, except share data)
June 30, December 31,
2016 2015
---- ----
(Unaudited)
ASSETS
Cash and cash equivalents $493,233 $155,904
Accounts receivable 4,500 8,566
Restricted cash and cash
equivalents 51,418 98,137
Restricted liquidity facility
collateral - 65,000
Flight equipment held for lease,
net of accumulated depreciation
of $1,207,844 and $1,306,024,
respectively 5,875,935 5,867,062
Net investment in finance and
sales-type leases 291,903 201,211
Unconsolidated equity method
investment 64,357 50,377
Other assets 164,529 123,707
------- -------
Total assets $6,945,875 $6,569,964
========== ==========
LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES
Borrowings from secured
financings, net of debt
issuance costs $1,078,823 $1,146,238
Borrowings from unsecured
financings, net of debt
issuance costs 3,283,971 2,894,918
Accounts payable, accrued
expenses and other liabilities 135,363 131,058
Lease rentals received in
advance 57,178 67,327
Liquidity facility - 65,000
Security deposits 123,533 115,642
Maintenance payments 490,521 370,281
------- -------
Total liabilities 5,169,389 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,
78,777,771 shares issued and
outstanding at June 30, 2016;
and 80,232,260 shares issued
and outstanding at December 31,
2015 788 802
Additional paid-in capital 1,520,507 1,550,337
Retained earnings 260,036 241,574
Accumulated other comprehensive
loss (4,845) (13,213)
------ -------
Total shareholders' equity 1,776,486 1,779,500
--------- ---------
Total liabilities and
shareholders' equity $6,945,875 $6,569,964
========== ==========
Aircastle Limited and Subsidiaries
Consolidated Statements of Income
(Dollars in thousands, except per share amounts)
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
--------
2016 2015 2016 2015
---- ---- ---- ----
Revenues:
Lease rental revenue $176,125 $184,839 $355,695 $361,985
Finance and sales-type lease revenue 4,174 1,877 7,672 3,484
Amortization of lease premiums, discounts and lease incentives (3,828) (4,351) (4,898) (8,175)
Maintenance revenue 12,514 21,349 13,774 39,422
------ ------ ------ ------
Total lease revenue 188,985 203,714 372,243 396,716
Other revenue 1,003 851 1,410 2,145
----- --- ----- -----
Total revenues 189,988 204,565 373,653 398,861
------- ------- ------- -------
Operating expenses:
Depreciation 75,070 77,368 151,717 152,214
Interest, net 62,452 61,551 126,693 123,682
15,406 14,699 30,898 28,631
Selling, general and administrative (including non-cash share based payment
expense of $2,094 and $1,387 for the three months ended and $3,737 and
$2,557 for the six months ended June 30, 2016 and 2015, respectively)
Impairment of aircraft 16,723 23,955 16,723 23,955
Maintenance and other costs 2,267 3,663 3,670 6,606
----- ----- ----- -----
Total expenses 171,918 181,236 329,701 335,088
------- ------- ------- -------
Other income:
Gain on sale of flight equipment 2,172 21,102 15,005 27,355
Other 147 277 74 271
Total other income 2,319 21,379 15,079 27,626
----- ------ ------ ------
Income from continuing operations before income taxes and earnings from 20,389 44,708 59,031 91,399
unconsolidated equity method investment
Income tax provision 2,385 4,465 6,324 9,328
Earnings of unconsolidated equity method investment, net of tax 2,026 1,565 3,585 3,006
----- ----- ----- -----
Net income $20,030 $41,808 $56,292 $85,077
======= ======= ======= =======
Earnings per common share - Basic:
Net income per share $0.25 $0.51 $0.71 $1.05
===== ===== ===== =====
Earnings per common share - Diluted:
Net income per share $0.25 $0.51 $0.71 $1.05
===== ===== ===== =====
Dividends declared per share $0.24 $0.22 $0.48 $0.44
===== ===== ===== =====
Aircastle Limited and Subsidiaries
Consolidated Statements of Cash Flows
(Dollars in thousands)
(Unaudited)
Six Months Ended June 30,
2016 2015
---- ----
Cash flows from operating activities:
Net income $56,292 $85,077
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation 151,717 152,214
Amortization of deferred financing costs 9,470 7,465
Amortization of net lease discounts and lease incentives 4,898 8,175
Deferred income taxes 2,243 (1,363)
Non-cash share based payment expense 3,737 2,557
Cash flow hedges reclassified into earnings 8,369 14,343
Security deposits and maintenance payments included in earnings (5,651) (22,382)
Gain on sale of flight equipment (15,005) (27,355)
Impairment of aircraft 16,723 23,955
Other (2,843) 108
Changes in certain assets and liabilities:
Accounts receivable 3,262 (1,697)
Other assets (85) (2,155)
Accounts payable, accrued expenses and other liabilities 4,284 7,018
Lease rentals received in advance (2,714) 3,646
------ -----
Net cash provided by operating activities 234,697 249,606
------- -------
Cash flows from investing activities:
Acquisition and improvement of flight equipment and lease incentives (478,026) (797,136)
Proceeds from sale of flight equipment 339,507 231,842
Restricted cash and cash equivalents related to sale of flight equipment 17,000 (76,433)
Aircraft purchase deposits and progress payments (9,801) (3,461)
Net investment in finance leases (78,365) (24,000)
Collections on finance leases 7,833 4,795
Unconsolidated equity method investment and associated costs (11,688) -
Other (509) (256)
---- ----
Net cash used in investing activities (214,049) (664,649)
-------- --------
Cash flows from financing activities:
Issuance of shares net of repurchases (33,854) (1,960)
Proceeds from notes and term debt financings 787,310 800,000
Securitization and term debt financing repayments (459,021) (319,994)
Deferred financing costs (16,121) (11,658)
Restricted liquidity facility collateral 65,000 -
Liquidity facility (65,000) -
Restricted cash and cash equivalents related to financing activities 29,719 13,463
Security deposits and maintenance payments received 72,572 71,536
Security deposits and maintenance payments returned (26,094) (27,336)
Dividends paid (37,830) (35,723)
------- -------
Net cash provided by financing activities 316,681 488,328
------- -------
Net increase in cash and cash equivalents 337,329 73,285
Cash and cash equivalents at beginning of period 155,904 169,656
------- -------
Cash and cash equivalents at end of period $493,233 $242,941
======== ========
Aircastle Limited and Subsidiaries
Selected Financial Guidance Elements for the Third
Quarter of 2016
($ in millions, except for percentages)
(Unaudited)
Guidance Item Q3:16
--- ---
Lease rental revenue $180 - $184
Finance lease revenue $5 - $6
Maintenance revenue $0 - $2
Amortization of net lease
discounts and lease incentives ($3) - ($4)
SG&A(1) $15 - $16
Depreciation $74 - $76
Interest, net $62 - $64
Gain on sale $2 - $8
Full year effective tax rate 10% - 11%
---------------------------- --------
1. Includes $2.1M of non-cash share based payment
expense.
(
)
Aircastle Limited and Subsidiaries
Supplemental Financial Information
(Amount in thousands, except per share amounts)
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
-------- --------
2016 2015 2016 2015
---- ---- ---- ----
Revenues $189,988 $204,565 $373,653 $398,861
EBITDA $163,765 $189,543 $345,924 $378,476
Adjusted EBITDA $182,436 $214,608 $366,315 $404,822
Net Income $20,030 $41,808 $56,292 $85,077
Net income allocable to common shares $19,856 $41,473 $55,844 $84,466
Per common share - Basic $0.25 $0.51 $0.71 $1.05
Per common share - Diluted $0.25 $0.51 $0.71 $1.05
Adjusted net income $24,205 $47,229 $68,296 $97,686
Adjusted net income allocable to common shares $23,994 $46,851 $67,752 $96,984
Per common share - Basic $0.31 $0.58 $0.86 $1.20
Per common share - Diluted $0.31 $0.58 $0.86 $1.20
Basic common shares outstanding 78,159 80,566 78,351 80,565
Diluted common shares outstanding 78,159 80,566 78,351 80,565
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 Six Months Ended
June 30, June 30,
-------- --------
2016 2015 2016 2015
---- ---- ---- ----
(Dollars in thousands)
---------------------
Net income $20,030 $41,808 $56,292 $85,077
Depreciation 75,070 77,368 151,717 152,214
Amortization of net lease discounts and lease incentives 3,828 4,351 4,898 8,175
Interest, net 62,452 61,551 126,693 123,682
Income tax provision 2,385 4,465 6,324 9,328
----- ----- ----- -----
EBITDA 163,765 189,543 345,924 378,476
Adjustments:
Impairment of aircraft 16,723 23,955 16,723 23,955
Non-cash share based payment expense 2,094 1,387 3,737 2,557
Gain on mark-to-market of interest rate derivative contracts (146) (277) (69) (166)
Adjusted EBITDA $182,436 $214,608 $366,315 $404,822
======== ======== ======== ========
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-U.S. 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 Six Months Ended
June 30, June 30,
2016 2015 2016 2015
---- ---- ---- ----
(Dollars in thousands)
---------------------
Net income $20,030 $41,808 $56,292 $85,077
Loan termination fee(1) - - 1,509 -
Ineffective portion and termination of hedges(1) - 294 - 294
Gain on mark to market of interest rate derivative contracts(2) (146) (277) (69) (166)
Write-off of deferred financing fees(1) - - 1,972 -
Non-cash share based payment expense(3) 2,094 1,387 3,737 2,557
Term Financing No. 1 hedge loss amortization charges(1) - 1,275 - 4,401
Securitization No. 1 hedge loss amortization charges (1) 2,227 2,742 4,855 5,523
-----
Adjusted net income $24,205 $47,229 $68,296 $97,686
======= ======= ======= =======
(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 Gain (Loss) on Deprec. Distributions in Cash Earnings Average 12 Month Cash
Collections Sale of Eqt. excess (less than) Shareholders' ROE
Equity Earnings Equity
--- --- ---
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 $511,376 $12,597 $45,667 $318,286 ($2,202) $249,152 $1,774,568 14.0%
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 U.S. 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 Quarterly Cash Interest(1) Annualized
of Flight Lease Rental Net Cash
Equipment Revenue 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%
Q2:16 $5,677,121 $176,125 $55,779 8.5%
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 Six Months Ended
June 30, 2016 June 30, 2016
------------- -------------
Weighted-average shares(1): Shares Percent(2) Shares Percent(2)
--------------------------- ------ --------- ------ ---------
Common shares outstanding - Basic 78,159 99.13% 78,351 99.20%
Unvested restricted common shares 686 0.87% 629 0.80%
--- ---- --- ----
Total weighted-average shares outstanding 78,845 100.00% 78,981 100.00%
====== ====== ====== ======
Net income allocation
---------------------
Net income $20,030 100.00% $56,292 100.00%
Distributed and undistributed earnings allocated to unvested restricted (174) (0.87%) (448) (0.80%)
shares
Earnings available to common shares $19,856 99.13% $55,844 99.20%
======= ===== ======= =====
Adjusted net income allocation
------------------------------
Adjusted net income $24,205 100.00% $68,296 100.00%
Amounts allocated to unvested restricted shares (211) (0.87%) (544) (0.80%)
---- ------ ---- ------
Amounts allocated to common shares $23,994 99.13% $67,752 99.20%
======= ===== ======= =====
(1) For the three and six months ended June 30, 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 Six Months Ended
June 30, 2015 June 30, 2015
------------- -------------
Weighted-average shares(1): Shares Percent(2) Shares Percent(2)
--------------------------- ------ --------- ------ ---------
Common shares outstanding - Basic 80,566 99.20% 80,565 99.28%
Unvested restricted common shares 650 0.80% 583 0.72%
--- ---- --- ----
Total weighted-average shares outstanding 81,217 100.00% 81,149 100.00%
====== ====== ====== ======
Net income allocation
---------------------
Net income $41,808 100.00% $85,077 100.00%
Distributed and undistributed earnings allocated to unvested restricted shares (335) (0.80%) (611) (0.72%)
---- ------ ---- ------
Earnings available to common shares $41,473 99.20% $84,466 99.28%
======= ===== ======= =====
Adjusted net income allocation
------------------------------
Adjusted net income $47,229 100.00% $97,686 100.00%
Amounts allocated to unvested restricted shares (378) (0.80%) (702) (0.72%)
---- ------ ---- ------
Amounts allocated to common shares $46,851 99.20% $96,984 99.28%
======= ===== ======= =====
(1) For the three and six months ended June 30, 2015 the company had no dilutive shares.
(2) Percentages rounded to two decimal places.
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-second-quarter-2016-results-300309010.html
SOURCE Aircastle Limited
