Aircastle Q4 and full year results

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By admin February 23, 2015 14:44

Aircastle Q4 and full year results

Aircastle has reported fourth quarter 2014 net income of $72.8 million, or $0.90 per diluted common share and adjusted net income of $80.1 million, or $0.99 per diluted common share.  Net income for the year ended December 31, 2014 was $100.8 million, or $1.25 per diluted common share, and adjusted net income was $167.6 million, or $2.07 per diluted common share.  The fourth quarter results included total revenues of $238.3 million, an increase of 24%, versus $192.0 million in the fourth quarter of 2013.  For the full year 2014, total revenues were $818.6 million, up 16% versus $708.6 million in 2013.

Commenting on the results, Ron Wainshal, Aircastle’s CEO, stated: “2014 was a year full of significant activity in which we solidified Aircastle’s position as the leading value investor in the aircraft leasing industry.  Aircastle’s strategy is differentiated from that of our competitors, and we saw the merits of this approach in the great progress we made over the past year in growing our business and improving our financial metrics while simultaneously improving the quality of our portfolio despite a very competitive and fluid business environment.”

Wainshal added: “We plan to continue demonstrating the competitive advantages of our leading position as a value investor, supported by our world-class team, our flexible capital structure and our key long term shareholders.  We are gratified and energized by the steady progress we are making.  We are intent on driving further improvements in our financial performance, and I believe achieving an investment grade credit rating will bring us closer to realizing the company’s full potential.”

Total revenues for the fourth quarter rose 24% to  $238.3 million, driven by higher maintenance revenues of $27.6 million reflecting the early return of several aircraft on lease with Russia-based airlines and higher lease rentals of $8.9 million.

Adjusted EBITDA for the fourth quarter rose 19% compared to the previous year’s fourth quarter to $233.2 million, due primarily to higher total revenues, excluding amortization of net lease discounts and incentives, of $38.3 million.

Adjusted net income for the quarter was $80.1 million, up 46%, year over year.  The increase was due primarily to higher total revenues of $46.3 million partially offset by higher non-cash impairment charges of $22.0 million primarily related to the early return and exit of aircraft.

Total revenues for 2014 rose 16% to $818.6 million, which reflects higher lease rental and finance lease revenue of $64.5 million, higher maintenance revenue of $19.7 million and lower amortization of lease premiums, discounts and lease incentive amortization of $26.2 million, the lessor said.

Adjusted EBITDA for the full year was $792.3 million, up $75.1 million or 10% versus 2013, reflecting higher total revenues excluding amortization of net lease discounts and lease incentives of $83.7 million, partially offset by lower gains from the sale of flight equipment of $14.1 million.

Adjusted net income for the full year was $167.6 million compared to $59.3 million in 2013, an increase of $108.4 million.  Higher total revenues of $110.0 million and lower adjusted operating expenses of $15.4 million were partially offset by lower gains from the sale of flight equipment of $14.1 million.

During 2014, Aircastle acquired 35 aircraft for $1.8 billion, including 21 aircraft for $749.2 million during the fourth quarter.  Most of the 2014 acquisitions by value were aircraft less than five years old that are on long term leases with relatively strong operators.  Additionally, the lessor also acquired $467.4 million in mid-aged narrow-body aircraft, including twelve aircraft through a purchase and lease-back transaction with a major European flag carrier.

During 2014, Aircastle sold 49 aircraft for net proceeds of $833.0 million, resulting in a pre-tax impact of $40.2 million.  Three of these aircraft were sold to its joint venture with Ontario Teachers’, which grew to $545 million in total assets at year end 2014.

The other 46 sold aircraft had an average age of 19 years, which included five freighter aircraft.

Aircastle has reduced its passenger aircraft exposure to Russia-based airlines from ten to three aircraft today.

As of December 31, 2014, Aircastle owned 148 aircraft having a net book value of $5.7 billion.

admin
By admin February 23, 2015 14:44