AeroCentury Corp. Earns $1.2 Million, or $0.78 per Share, in 2016

Eleanor Steed
By Eleanor Steed March 10, 2017 17:58

AeroCentury Corp. Earns $1.2 Million, or $0.78 per Share, in 2016

AeroCentury, an independent aircraft leasing company, has reported 2016 earnings of $1.2 million, or $0.78 per diluted share. In 2015, earnings were $6.4 million, or $4.17 per diluted share.

“AeroCentury made investments in leased assets totaling $69 million in the third quarter of 2016, the impact of which we are now seeing in the form of increasing operating lease revenue,” said Michael G. Magnusson, Chief Executive Officer.

Operating lease revenue in the fourth quarter of 2016 was $7.4 million, reflecting an increase of 22% compared to operating lease revenue in the third quarter of 2016 of $6.1 million and an increase of 20%, compared to the fourth quarter of 2015 of $6.2 million.

In the fourth quarter of 2016, AeroCentury recorded a loss of $40,000, or $0.03 per share, reflecting a $906,000 impairment charge. There was an atypical tax rate due to differences in the book and tax treatment of certain items. In the third quarter of 2016, earnings were $530,000, or $0.34 per diluted share, which included $1.2 million in gains from sales-type finance leases. In the fourth quarter of 2015, earnings were $3.1 million, or $1.99 per diluted share, which included $6.3 million in gains on disposal of assets.

“In 2016, we continued to rebuild and refresh our portfolio of leased regional aircraft,” Magnusson continued. “Our strategy is to grow the size of the portfolio, but also to improve the overall quality of the assets that comprise the portfolio by adding newer more fuel efficient models. We continue to see great competition among buyers for the purchase of the type of assets that we seek to acquire. While AeroCentury did not purchase any aircraft in the fourth quarter of 2016, over the course of 2016, AeroCentury added four regional jet aircraft, and sold four older regional jet aircraft and one aircraft engine for cash, and sold three older turboprop aircraft pursuant to sales-type finance leases. Toni M. Perazzo, Chief Financial Officer noted, “The four regional jet aircraft acquired in 2016 consisted of two Bombardier CRJ-1000 regional jet aircraft on lease to Air Nostrum and two Bombardier CJR-900 aircraft on lease with Adria Airways. These acquisitions resulted in a 24% increase in the net  book value of our aggregate asset portfolio, to $192.8 million from $155.3 million a year ago.”

Eleanor Steed
By Eleanor Steed March 10, 2017 17:58