Aircastle full year results

Victoria
By Victoria February 26, 2013 11:09

Aircastle full year results

Aircastle reported fourth quarter 2012 net income of $29.8 million – a drop of 16.3% compared to the same period last year. The change reflects higher net revenues of $19.7 million that was offset by higher aircraft impairment charges of $7.7 million, lower gains from the sale of aircraft of $7.4 million, higher depreciation of $6.1 million, higher selling, general and administrative costs of $2.1 million, and higher adjusted interest expense of $1.9 million. The fourth quarter results included total revenues of $176.6 million, an increase of 13%, versus $156.9 million in the fourth quarter of 2011.
Full year net income was $32.9 million, down $88.0 million year over year. The change reflects higher revenues of $81.4 million, primarily offset by higher aircraft impairment charges of $90.0 million, lower gains from the sale of aircraft of $33.3 million, higher depreciation of $27.8 million, and higher adjusted interest expense of $13.6 million. For the full year 2012 total revenues were $686.6 million, up 13% versus $605.2 million in 2011.
Ron Wainshal, Aircastle’s CEO, stated: “Aircastle continued to execute on its value-oriented growth strategy in 2012, finishing the year with solid top line growth thanks to $843 million of investments and 99% portfolio utilization. We also continued to transform our balance sheet by building the unencumbered asset base to over $2 billion in aircraft and more than $600 million in unrestricted cash while pushing out the nearest debt maturity to 2017. We demonstrated our strong standing in the capital markets, where we raised $1.3 billion in unsecured debt during the year, including a $500 million issue in late November, which provides us with attractive growth capital for 2013. Looking ahead, we believe the market for new acquisitions looks good and we will continue pursuing investment opportunities in a disciplined way.”

Lease rental revenue for the fourth quarter was $158.1 million, up $8.2 million or 6% year over year, due primarily to the impact of new aircraft acquisitions of $25 million, partially offset by lower revenue due to aircraft sales of $5.2 million and the year over year impact of lease extensions, transitions and terminations of $11.6 million. For the full year lease rental revenue was $623.5 million, up $43.3 million, or 7% year over year, reflecting the net impact of aircraft acquisitions made during 2012 and 2011 totaling $106.1 million, offset by lower lease rentals due to aircraft sales and disposals of $28.6 million and the impact of transitions, extensions and terminations totaling $34.2 million.
Total revenues for 2012 were $686.6 million, an increase of $81.4 million, up 13% from the previous year. The increase reflects higher lease rental revenue of $43.3 million, higher maintenance revenue of $16.4 million, lower amortization of net lease discounts and lease incentives of $3.6 million, higher revenues resulting from interest on our debt investments and finance leases of $12.2 million, and an increase of $5.9 million in early termination fees paid by lessees during 2012 versus 2011.
During 2012, Aircastle acquired 24 aircraft investments for $843 million and sold or disposed of eight aircraft, which resulted in a pre-tax gain of approximately $5.7 million for the year.
As of December 31, 2012, Aircastle owned 159 aircraft having a net book value of $4.8 billion.
During 2012 Aircastle raised approximately $1.6 billion of total debt financing, including more than $730 million during the fourth quarter.
In December 2012, it closed a $150 million unsecured revolving credit facility with Citibank, Goldman Sachs, JP Morgan Chase and an affiliate of RBC Capital Markets, which has a three-year term scheduled to expire in December 2015. This facility is currently undrawn.
In late November of 2012, Aircastle issued $500 million aggregate principal amount of unsecured 6.25% Senior Notes due 2019. The proceeds will be used for general corporate purposes, including the purchase of aviation assets. The notes were issued at par value.
In April 2012, Aircastle closed an $800 million unsecured notes offering, consisting of $500 million of 6.75% senior notes due 2017 and $300 million of 7.63% senior notes due in 2020, both of which were issued at par. Aircastle used the net proceeds from the offering to repay outstanding indebtedness under its Term Financing No. 1 and the termination of associated interest rate derivatives, with the balance used for general corporate purposes, including the purchase of aviation assets.
During 2012, the lessor also entered into two 12 year term loans which are supported by guarantees from Compagnie Francaise d’Assurance pour le Commerce Exterieur, or COFACE, for the financing of two new Airbus Model A330-200 aircraft. The borrowings under these financings at December 31, 2012 had a weighted average rate of interest equal to 3.22%.

Victoria
By Victoria February 26, 2013 11:09
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