Acting President and Chief Financial Officer
FOR IMMEDIATE RELEASE
(BURLINGAME, CA), May 10, 2016 — AeroCentury Corp. (NYSE MKT: ACY), an independent aircraft leasing company, today reported first quarter 2016 earnings of $434,000, or $0.28 per diluted share, compared to $752,000, or $0.48 per diluted share, for the first quarter of 2015, and $3.1 million, or $1.99 per diluted share, for the fourth quarter of 2015. The earnings reported for the first and fourth quarters of 2015 included $1.9 million and $6.3 million, respectively, in pretax gains on the sale of assets. All reported results are unaudited.
Last week, the Company announced that Evan Wallach, who has served as an independent director for nineteen years and was re-elected to the Board of Directors at the Company’s recent annual meeting of stockholders, has been appointed to serve as Chairman of the Board of the Company, to fill the vacancy left by the recent passing of Neal Crispin, the Company's Founder, Chairman and President. Toni Perazzo, Acting President and Chief Financial Officer, noted that "Evan’s experience in finance and aviation, along with his long-time service to the Company, make him an ideal Chairman for us at this time."
"Competition in our niche in the aircraft leasing industry remains high, fueled by abundant capital and new participants in the global markets we serve,” Perazzo continued. “While we are beginning to see rationality return to capital inflows for our asset classes, we do not expect to see the pace of our acquisitions accelerate in the near term. Our long-term goals remain to make strategic additions and to modernize and refresh our portfolio."
First Quarter 2016 Highlights (at or for the periods ended March 31, 2016, December 31, 2015 and March 31, 2015):
Perazzo remarked, "One of our newer aircraft was involved in an on-ground accident in April 2016. No passengers or crew on either aircraft were injured; however, the damage to our aircraft was extensive. The aircraft was fully insured by the lessee as required under our lease, and has been declared a total loss by the lessee's insurer. We believe the claim will be promptly resolved. The insurance proceeds will be used to repay the credit facility advance used to acquire the aircraft. Unfortunately, the total loss means that this lease will terminate. The Company will not realize the future anticipated lease revenue from that aircraft, and such revenue will not be replaced until the Company is able to make additional asset acquisitions. Until such replacement assets are acquired, the reduction in revenue however, will be partially offset by lower depreciation, interest expense and management fees."
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.
Please view PDF for tables by clicking here