Chief Financial Officer
(BURLINGAME, CA), August 10, 2017 — AeroCentury Corp. (NYSE American: ACY), an aircraft leasing company, today reported second quarter 2017 earnings grew 19% to $356,000, or $0.25 per diluted share, compared to $299,000, or $0.19 per share in the second quarter of 2016, and compared to $642,000, or $0.41 per share in the first quarter of 2017.
In the first six months of 2017, net income grew 36% to $997,000, or $0.67 per share, from $732,000, or $0.47 per share in the first six months of 2016./p>
"We have continued to grow our portfolio of mid-life leased aircraft, acquiring two Embraer 175 aircraft in the second quarter of 2017 and a third Embraer 175 aircraft in July. All three aircraft are on long-term leases to Republic Airline which is operating them for American Airlines in the United States," said Michael G. Magnusson, Chief Executive Officer. "These recent acquisitions, combined with our purchases of Embraer 145 aircraft earlier this year, bring our total number of Embraer aircraft to six, further diversifying our portfolio into this workhorse regional aircraft brand. We now have eleven regional aircraft types and the weighted average aircraft age of our portfolio of aircraft held for lease is approximately eleven years. In addition, and consistent with our decision to de-emphasize engine leasing, we sold two spare engines during the second quarter."
In July 2017, the Company expanded its credit facility to $170 million from $150 million and it may be expanded, subject to certain terms and conditions, to $180 million.
Operating lease revenue in the second quarter of 2017 increased 44% to $7.1 million, compared to $4.9 million in the second quarter of 2016, and was down slightly from $7.3 million in the preceding quarter.
Primarily as a result of aircraft acquisitions during the last twelve months, operating lease revenues for the six months ended June 30, 2017 increased 31% to $14.4 million from $11.0 million a year ago, and the lease portfolio grew 52% to $203.1 million at June 30, 2017 compared to $133.4 million a year ago.
Second Quarter 2017 Highlights (at or for the periods ended June 30, 2017, March 31, 2017, and June 30, 2016):
AeroCentury's portfolio currently consists of nine aircraft that are held under sales-type finance leases and twenty-six aircraft and one engine that are held for lease. The Company also has two turboprop aircraft that are held for sale, one of which is being sold in parts.
The Company's portfolio consists of twelve different aircraft types. The current customer base comprises twelve airlines operating in ten countries.
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AeroCentury is a global aircraft operating lessor and finance company specializing in leasing regional jet and turboprop aircraft and related engines. The Company's aircraft and engines are leased to regional airlines and commercial users worldwide.