aerocentury logo

Toni Perazzo
Chief Financial Officer
(650) 340-1888


AeroCentury Corp. Earns $530,000, or $0.34 per Share, in 3Q16;
Adds $69 Million of Regional Jet Aircraft to Portfolio;
Portfolio Utilization Remains Strong at 93%

(BURLINGAME, CA), November 8, 2016 — AeroCentury Corp. (NYSE MKT: ACY), an independent aircraft leasing company, today reported third quarter 2016 earnings were $530,000, or $0.34 per diluted share, improved from $299,000, or $0.19 per diluted share, for the second quarter of 2016, and down from $1.3 million, or $0.81 per diluted share, for the third quarter of 2015. Earnings included gains of $1.2 million in the third quarter of 2016, $2.2 million in the second quarter of 2016, and $1.1 million in the third quarter of 2015.

In the first nine months of 2016, net income totaled $1.3 million, or $0.81 per diluted share, compared to $3.4 million, or $2.17 per diluted share in the first nine months of 2015. Net income for the nine months ended September 30, 2016, included gains of $3.4 million related to aircraft dispositions pursuant to sales-type finance leases and insurance proceeds for one aircraft. In the first nine months of 2015, gains were $5.6 million related to dispositions of aircraft for cash and pursuant to sales-type finance leases. All reported results are unaudited.

"In my first few months working with AeroCentury, I have attended a number of international conferences to further expand our contacts in the aviation industry. I am pleased with the reception I received from industry experts at these events and was impressed by the strong reputation of AeroCentury within the industry earned by our team to date, and am excited to build upon that," said Michael G. Magnusson, Chief Executive Officer.

"With the addition of four regional jets purchased for approximately $69 million in the third quarter of 2016, we are continuing to rebuild and refresh our portfolio of leased regional aircraft with newer, more fuel-efficient models," Magnusson continued. "Our third quarter and year-to-date results for 2016 are beginning to show the improvement in the size and quality of our portfolio. We are working hard to deploy our capital profitably and expand our asset base."

"Our operating lease portfolio increased to $196.5 million, up 47% from June 30, 2016 and 20% from a year ago," said Toni M. Perazzo, Chief Financial Officer. "In the third quarter, we purchased two 100-seat Bombardier CRJ-1000 regional jet aircraft manufactured in 2010 on lease to Air Nostrum, one of the leading regional carriers in Europe. We also acquired two 86-seat Bombardier CRJ 900 aircraft on lease with Adria Airways, a current customer. These purchases were completed in the latter part of the third quarter, so the full effect of these transactions is not reflected in our third quarter results."

"We also continued to execute on our strategy to modernize our aircraft portfolio in the quarter. We sold two older turboprop aircraft pursuant to sales-type finance leases generating gains of $1.2 million. We also disposed of an older aircraft pursuant to a lessee purchase option in a sales-type finance lease," Perazzo continued.

Third Quarter 2016 Highlights (at or for the periods ended September 30, 2016, June 30, 2016, and September 30, 2015):

Please view PDF for tables by clicking here.

AeroCentury's portfolio currently consists of six aircraft that are held under sales-type finance leases and twenty-four aircraft and four engines that are held for lease. The Company also has one aircraft and three turboprop airframes being sold as parts as assets held for sale. The Company's portfolio consists of ten different aircraft types. The current customer base comprises twelve customers operating worldwide.

At September 30, 2016, total assets were $224.4 million, up 17% from $191.3 million a year ago, reflecting the net effect of aircraft purchases and sales during the past twelve months, and the accidental loss of one aircraft.

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 statement that the Company expects to deliver two aircraft under sales-type finance leases in September. All statements, other than statements of historical fact, included herein are "forward-looking statements.” Although the Company believes that the expectations reflected in these forward-looking 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 unanticipated events that affect the availability of appropriate aircraft for acquisition and financing therefor and unanticipated increases in interest under the Company’s credit facility, and inability to reach acceptable final agreements for the anticipated acquisition, 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.