Acting President and Chief Financial Officer
FOR IMMEDIATE RELEASE
(BURLINGAME, CA), March 2, 2016 — AeroCentury Corp. (NYSE MKT: ACY), an independent aircraft leasing company, today reported earnings totaling $3.1 million, or $1.99 per diluted share, in the fourth quarter of 2015, compared to $1.3 million, or $0.81 per diluted share, in the third quarter of 2015, and $0.5 million, or $0.32 per diluted share, in the fourth quarter of 2014. The fourth quarter 2015 results reflect increased lease revenue due to improved utilization and higher gains from sales of aircraft.
Net income increased to $6.4 million, or $4.17 per diluted share, for the full year in 2015, compared to a net loss of $11.3 million, or ($7.32) per diluted share, for 2014. The 2014 results included $18.7 million of non-cash pre-tax write-downs on older equipment. All reported results are unaudited.
During the fourth quarter of 2015, the Company sold three aircraft for cash, which generated gains totaling $6.3 million. For all of 2015, the Company recorded gains totaling $12.0 million for the sale of nine aircraft, including five pursuant to sales-type finance leases.
Average utilization improved to 96% in the fourth quarter compared to 94% in the third quarter and 88% in the yearago quarter. For the full years of 2015 and 2014, utilization was 92% and 82%, respectively.
"Neal Crispin, our Founder, Chairman and President since the Company's inception, passed away in January," said Toni Perazzo, Acting President and Chief Financial Officer. "His presence is greatly missed, and we are dedicated to carrying on his work and building on his legacy."
"Our niche in the aircraft leasing industry has gone through several cycles since we launched our business more than 25 years ago," Perazzo noted. "Increased competition in the acquisition market has led to higher aircraft prices and lower lease rates. Additional acquisitions are essential to the Company's continued success, and we carefully monitor market conditions and seek acquisition opportunities that make good economic sense."
Fourth Quarter 2015 Highlights (at or for the period ended December 31, 2015, compared to September 30, 2015 and December 31, 2014):
The following table shows the status of the Company's portfolio of aircraft and engines held for lease as of December 31, 2015, September 20, 2015 and December 31, 2014.
Please view PDF for tables by clicking here
AeroCentury is an aircraft operating lessor and finance company specializing in leasing regional aircraft and engines utilizing triple net leases. The Company's aircraft and engines are leased to regional airlines and commercial users worldwide.
This press release contains certain statements that may include "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including the Company’s statements regarding its strategy to sell older aircraft and focus on acquisition of larger, mid-life regional jets and new generation turboprops. All statements, other than statements of historical fact, included herein are "forward-looking statements." Although the Company believes that the expectations reflected in these forwardlooking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including the availability of appropriate aircraft for acquisition and financing therefor; the risks of reduced demand for leased aircraft of the types in the Company’s portfolio; the inability of the Company to lease certain of its aircraft; or the business failure of one or more of the Company’s lessees; as well as those discussed in the Company's reports that are filed with the Securities and Exchange Commission. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Other than as required by law, the Company does not assume a duty to update any forward-looking statement.