Acting President and Chief Financial Officer
FOR IMMEDIATE RELEASE
(BURLINGAME, CA), November 9, 2015 — AeroCentury Corp. (NYSE MKT: ACY), an independent aircraft leasing company, today reported earnings totaling $1.3 million, or $0.81 per diluted share, in the third quarter of 2015, compared to $1.4 million, or $0.87 per diluted share, in the second quarter of 2015. Third quarter profits reflect an improvement in utilization as the Company continues to adjust the composition of its portfolio of regional aircraft and engines. Following the $11.7 million non-cash, pre-tax write-down of certain older aircraft, the net loss in the third quarter of 2014 was $8.2 million, or ($5.34) per diluted share.
Net income improved to $3.4 million, or $2.17 per diluted share, for the first nine months of 2015, compared to a net loss of $11.8 million, or ($7.64) per diluted share, for the first nine months of 2014, which included $18.5 million of non-cash pre-tax write-downs on older equipment. All reported results are unaudited.
"Utilization improved to 94% in the third quarter, reflecting acquisitions made in 2014 and our success in re-leasing aircraft that were off lease in 2014," said Neal D. Crispin, President and Chief Executive Officer. "We continued to implement our strategy to reposition our portfolio by selling older aircraft. During the third quarter, we sold three aircraft pursuant to sales-type finance leases, which generated gains totaling $1.1 million and, in October, we sold an additional two aircraft for cash, for a $5.7 million gain. As buyers, we are carefully monitoring market conditions and are currently reluctant to purchase newer aircraft until pricing becomes more rational."
Third Quarter 2015 Highlights (at or for the period ended September 30, 2015, compared to June 30, 2015 and September 30, 2014):
Currently, AeroCentury's portfolio consists of thirty-six aircraft, five of which are operating under sales-type finance leases, covering ten different aircraft types and five engines, compared to thirty-eight aircraft, one of which was operating under a sales-type finance lease, and five engines at September 30, 2014. At September 30, 2015, total assets were $191.3 million, compared to $172.8 million a year ago. The current customer base comprises fourteen airlines operating worldwide.
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.
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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 Company’s statements regarding its strategy to sell older aircraft and focus on acquisition of larger, mid-life regional jets and new generation turboprops. All statements, other than statements of historical fact, included herein are "forward-looking statements." Although the Company believes that the expectations reflected in these forwardlooking 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 the availability of appropriate aircraft for acquisition and financing therefor; the risks of reduced demand for leased aircraft of the types in the Company’s portfolio; the inability of the Company to lease certain of its aircraft; or the business failure of one or more of the Company’s lessees; 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.