Q1 RESULTS OUT FOR AIRCASTLE

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By TESTCustomwebLP TESTCustomwebLP May 5, 2011 08:41

Q1 RESULTS OUT FOR AIRCASTLE

Aircastle has reported first quarter 2011 net income of $42.7 million, or $0.54 per diluted common share, and adjusted net income of $32.9 million, or $0.41 per diluted common share.

Ron Wainshal, Aircastle’s CEO says: “During the first quarter, Aircastle sustained its consistently strong portfolio performance, and the company’s financial results started to reflect more fully the positive impact of the $500 million we invested in 2010.  We also made progress expanding our asset base to further enhance our future earnings prospects. Our new Airbus A330 deliveries are coming on line as planned and, so far this year, we acquired or signed letters of intent to acquire five additional aircraft, three of which are Boeing 747-400s which we intend to convert into freighter configuration.  At the same time, we are continuing to pursue asset sales selectively to take advantage of the market recovery and support our long-term goal of generating strong risk adjusted returns.”

Lease rental revenue for the first quarter was $141.1 million, up by $11.0 million, or 8%, year-over-year, due primarily to the impact of aircraft acquisitions net of dispositions of $14.9 million.  The increase was partially offset by lower lease rentals due to lease terminations of $2.1 million and lease transitions and extensions of $1.8 million.

Total revenues for the first quarter were $157.9 million, up by $27.4 million year-over-year.  The increase reflects higher lease rental revenue as well as higher maintenance and other revenue totaling $14.6 million, driven mainly by early lease terminations during the first quarter of 2011.

EBITDA for the first quarter was $154.3 million, up by $33.1 million from the first quarter of 2010, reflecting higher lease rental revenue of $11.0 million as well as increases totaling $14.6 million in maintenance and other revenue.  The increase in EBITDA also includes a gain of $9.7 million from the sale of four Boeing 737-400SF aircraft.  These increases were partially offset by an increase in SG&A, maintenance and other costs totaling $2.2 million.

Adjusted net income plus depreciation and amortization for the quarter was $95.6 million, a year-over-year increase of $16.0 million.  This was due primarily to an increase of $11.0 million in lease rental revenue as well as increases in maintenance and other revenues totaling $14.6 million, partially offset by an increase in adjusted interest expense of $6.4 million and an increase in SG&A and maintenance and other costs of $2.2 million.

Adjusted net income for the quarter was $32.9 million, up $12.3 million year-over-year, reflecting an increase of $27.4 million in total revenues, partially offset by an increase of $5.4 million in depreciation, $6.4 million in adjusted interest expense and $2.2 million in SG&A and maintenance and other costs.

In February 2011, Aircastle entered into a $72.8 million 12-year term loan with Sumitomo Mitsui Banking Corporation.  The loan is supported by a guarantee from Coface for the financing of a new Airbus A330-200 passenger aircraft.  This financing bears interest at a fixed rate of 3.7875%.  In March 2011, the lessor entered into a $72.9 million 12-year term loan with Sumitomo Mitsui Banking Corporation.  The loan is also supported by a guarantee from Coface for the financing of a new Airbus A330-200 passenger aircraft.  This financing bears interest at a fixed rate of 3.7344%.

As of March 31, 2011, Aircastle repurchased 1.3 million of its shares at a total cost of $15.0 million.  As of April 29, it repurchased an additional 1.6 million common shares for a total cost of $19.9 million.

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By TESTCustomwebLP TESTCustomwebLP May 5, 2011 08:41
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