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8-K - FORM 8-K - Aircastle LTD | y04651e8vk.htm |
Exhibit 99.1
FOR IMMEDIATE RELEASE
Contact:
Michael Inglese Chief Financial Officer
Tel: +1-203-504-1063
Michael Inglese Chief Financial Officer
Tel: +1-203-504-1063
The IGB Group
Leon Berman
Tel: +1-212-477-8438
lberman@igbir.com
Leon Berman
Tel: +1-212-477-8438
lberman@igbir.com
Aircastle Announces Fourth Quarter and Full Year 2010 Results
and Share Repurchase Program
and Share Repurchase Program
Highlights
| Lease rental revenue of $139.3 million and EBITDA1 of $134.8 million for the fourth quarter and $531.1 million and $491.2 million, respectively, for the full year |
| Net income of $20.2 million, or $0.25 per diluted common share, for the fourth quarter and $65.8 million, or $0.83 per diluted common share, for the full year |
| Adjusted net income1 of $14.2 million, or $0.18 per diluted common share, for the fourth quarter and $67.9 million, or $0.85 per diluted common share, for the full year |
| Adjusted net income plus depreciation and amortization1 of $76.6 million, or $0.96 per diluted common share, for the fourth quarter and $308.4 million, or $3.87 per diluted common share, for the full year |
| Fleet utilization of 99% for the fourth quarter and full year |
| Portfolio yield of 14.0% for the fourth quarter and 13.9% for the full year |
| Purchased 11 aircraft for approximately $500 million during 2010, including 6 during the fourth quarter |
| Secured $1.1 billion of financing commitments, including nearly $700 million of funding commitments for Airbus A330 deliveries and issued $300 million senior unsecured notes |
| Board of Directors approves $60 million share repurchase program. |
1 | Refer to the selected financial information accompanying this press release for a reconciliation of GAAP and non-GAAP numbers. |
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Stamford, CT. March 10, 2011 Aircastle Limited (the Company or Aircastle) (NYSE: AYR)
reported fourth quarter 2010 net income of $20.2 million, or $0.25 per diluted common share, and
adjusted net income of $14.2 million, or $0.18 per diluted common share. Net income for the year
ended December 31, 2010 was $65.8 million, or $0.83 per diluted common share, and adjusted net
income was $67.9 million, or $0.85 per diluted common share. The fourth quarter results include a
gain of $8.4 million from the disposal of aircraft, as well as $2.5 million of hedge
ineffectiveness charges in connection with aircraft sales.
Commenting on the results, Ron Wainshal, Aircastles CEO, stated: For our industry, 2010 was a
watershed year during which demand for passenger and freight aircraft rose above pre-recession
levels and growth rates returned to their long-term trajectory, buoyed by the strong performance of
emerging markets. We are encouraged by continuing improvements across key industry metrics
including rising traffic levels and all-time high load factors while the supply of parked current
generation aircraft remains very low.
Wainshal concluded: During the year, Aircastle delivered consistently strong portfolio performance
and cash flow, and our financial results have only started to reflect the significant built-in
asset growth of our $1.1 billion Airbus program and the investments made during the year. We are
continuing to source promising investment opportunities and believe Aircastle is in a terrific
position to capitalize on the industrys healthy growth trends.
We ended the year with $240 million in unrestricted cash, and our cash flows remain strong. Given
our liquidity position and the fact that our stock is still trading well below book value, our
board approved a $60 million share repurchase program. We believe repurchasing our shares is an
excellent investment which complements our growth plans as well as our dividend policy.
Fourth Quarter Results
Lease rental revenue for the fourth quarter was $139.3 million, up $11.6 million or 9% year over
year, due primarily to the impact of aircraft acquisitions net of disposals of $11.9 million.
Total revenues for the fourth quarter were $134.7 million, a decrease of $1.1 million from the
previous year, and reflect lower maintenance revenue of $10.0 million due to fewer scheduled and
unscheduled lease transitions in 2010, higher amortization of net lease discounts and lease
incentives of $2.8 million, partially offset by $11.6 million of higher lease rental revenue
discussed above.
EBITDA for the fourth quarter was $134.8 million, up $10.3 million from the fourth quarter of 2009,
due primarily to higher lease rental revenue of $11.6 million, lower SG&A and maintenance and other
costs totaling $2.5 million and higher other income of $6.0 million due principally to the increase
in gain on the sale of flight equipment. These increases were partially offset by lower maintenance
revenue totaling $10.0 million.
Adjusted net income plus depreciation and amortization for the quarter was $76.6 million, down $1.0
million year over year, due primarily to lower maintenance revenue totaling $10.0 million and
higher adjusted interest expense of $5.9 million, partially offset by higher lease rental revenue
of $11.6 million and lower SG&A and maintenance and other costs of $2.5 million.
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Adjusted net income for the quarter was $14.2 million, down $6.9 million year over year, and
reflects lower total revenues of $1.1 million, higher depreciation of $3.1 million and higher
adjusted interest expense of $5.9 million, partially offset by lower SG&A and maintenance and other
costs of $2.5 million.
Full Year Results
Lease rental revenue for the full year was $531.1 million, up $19.6 million or 4% year over year,
and reflects higher rental revenue due to the impact of aircraft acquisitions net of disposals of
$22.5 million, partially offset by lower rentals from lease transitions, extensions, and floating
rate leases totaling $2.9 million.
Total revenues for 2010 were $527.7 million, a decrease of $42.9 million from the previous year,
and reflect lower maintenance revenue of $43.0 million due to fewer scheduled and unscheduled lease
transitions in 2010, higher amortization of net lease discounts and lease incentives of $8.9
million and lower interest income and other revenue totaling $10.6 million due to the sale of our
debt investments in 2009 and the absence of lease termination payments in 2010. These decreases
were partially offset by $19.6 million of higher lease rental revenue discussed above.
EBITDA for the full year was $491.2 million, down $10.4 million from the fourth quarter of 2009,
due primarily to lower maintenance and lease termination revenue totaling $51.7 million, partially
offset by higher lease rental revenue of $19.6 million, lower impairment charges of $10.9 million,
lower maintenance and other costs of $9.8 million and higher other income of $2.7 million.
Adjusted net income plus depreciation and amortization for the full year was $308.4 million, down
$17.1 million year over year, due primarily to lower maintenance and lease termination revenue
totaling $51.7 million and higher adjusted interest expense of $5.6 million, partially offset by
higher lease rental revenue of $19.6 million, lower impairment charges of $10.9 million and lower
maintenance and other costs of $9.8 million.
Adjusted net income for the full year was $67.9 million, down $36.9 million year over year, and
reflects lower maintenance and lease termination revenue totaling $51.7 million, higher
amortization of net lease discounts and incentives of $8.9 million, higher depreciation expense of
$11.0 million and higher adjusted interest expense of $5.6 million, partially offset by higher
lease rental revenue of $19.6 million, lower impairment charges of $10.9 million and lower
maintenance and other costs of $9.8 million.
Aviation Assets
During 2010, we acquired 11 aircraft for approximately $500 million, including three Boeing 737-800
aircraft, two Boeing 747-400F production freighter aircraft and one Airbus A330-200F freighter
aircraft, which were acquired during the fourth quarter. During 2010, we also executed four
aircraft dispositions which resulted in a net gain on disposition of approximately $7.1 million.
In the first quarter of 2011, we completed the sale of four Boeing 737-400SF freighter aircraft and
we took delivery of one Airbus A330-200 passenger aircraft which is on lease to South African
Airways.
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As of December 31, 2010, Aircastle owned 136 aircraft having a net book value of $4.1 billion.
Owned Aircraft | ||
as of | ||
December 31, | ||
2010(A) | ||
111 Passenger Aircraft |
67% | |
25 Freighter Aircraft |
33% | |
Number of Lessees |
64 | |
Number of Countries |
36 | |
Weighted Average Remaining Lease Term (years)(B) |
4.7 | |
Percentage of Aircraft Leased Outside U.S. |
92% | |
Percentage of Latest Generation Aircraft |
90% | |
Weighted Average Fleet Utilization during the three months ended December 31, 2010(C) |
99% | |
Weighted Average Fleet Utilization during the year ended December 31, 2010(C) |
99% |
(A) | Percentages calculated using net book value. | |
(B) | Weighted average remaining lease term (years) by net value. | |
(C) | Aircraft on-lease days as a percent of total days in period weighted by net book value, excluding aircraft in freighter conversion. |
We had 19 aircraft with lease expirations originally scheduled for 2010. For these 2010 lease
expiries we executed lease renewals or new leases on 17 of these aircraft and sold two aircraft.
We have 11 aircraft with scheduled lease expirations in 2011 and we have executed lease commitments
or renewal commitments with respect to seven of these aircraft. We also executed sale agreements
for two of these aircraft and are actively marketing the remaining two aircraft for sale or lease.
In the first quarter of 2011 we terminated early the leases for five aircraft four Airbus
A320-200 aircraft leased to an airline based in Egypt and one Airbus A319-100 aircraft leased to an
airline in Jordan. These five aircraft represented approximately 2% of our lease rental revenue
during the fourth quarter of 2010. We are actively marketing these aircraft for sale or lease.
Financing Update
During 2010, Aircastle secured new financing commitments totaling approximately $1.1 billion,
including $700 million for our Airbus A330 Agreement which will benefit from an ECA guarantee
provided by Compagnie Francaise dAssurance pour le Commerce Exterieur, or COFACE. We also
completed our first senior unsecured notes offering with a private placement offering of 9.75%
senior unsecured notes due in 2018, in an aggregate principal amount of $300 million. In September
2010, we also entered into a $50 million senior unsecured revolving credit facility which has a
three-year term.
In February 2011, we entered into a $72.8 million twelve year term loan with Sumitomo Mitsui
Banking Corporation which 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%.
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Share Repurchase Program
The Companys Board of Directors authorized the repurchase of up to $60 million of the Companys
common shares. Under the program, the Company may purchase its common shares from time to time in
the open market or in privately negotiated transactions. The amount and timing of the purchases
will depend on a number of factors including the price and availability of the Companys common
shares, trading volume and general market conditions. The Company may also from time to time
establish a trading plan under Rule 10b5-1 of the Securities Exchange Act of 1934 to facilitate
purchases of its common shares under this authorization.
Conference Call
In connection with this earnings release, management will host an earnings conference call on
Thursday, March 10, 2011 at 10:00 A.M. Eastern time. All interested parties are welcome to
participate on the live call. The conference call can be accessed by dialing (866) 510-4578 (from
within the U.S.) or (706) 634-9537 (from outside of the U.S.) ten minutes prior to the scheduled
start and referencing the Aircastle Fourth Quarter Earnings Call.
A simultaneous webcast of the conference call will be available to the public on a listen-only
basis at www.aircastle.com. Please allow extra time prior to the call to visit the site and
download the necessary software required to listen to the internet broadcast. A replay of the
webcast will be available for three months following the call. In addition to this earnings
release an accompanying power point presentation has been posted to the Investor Relations section
of Aircastles website.
For those who are not available to listen to the live call, a replay will be available until 11:59
P.M. Eastern time on Thursday, March 25, 2011 by dialing (800) 642-1687 (from within the U.S.) or
(706) 645-9291 (from outside of the U.S.); please reference passcode 46542012.
About Aircastle Limited
Aircastle Limited is a global company that acquires, leases and sells high-utility commercial jet
aircraft to airlines throughout the world. As of December 31, 2010 Aircastles aircraft portfolio
consisted of 136 aircraft and had 64 lessees located in 36 countries.
Safe Harbor
Certain items in this press release and other information we provide from time to time, may
constitute forward-looking statements within the meaning of the Private Securities Litigation
Reform Act of 1995 including, but not necessarily limited to, statements relating to our ability to
acquire, sell, lease or finance aircraft, raise capital, pay dividends, and increase revenues,
earnings, EBITDA, Adjusted Net Income and Adjusted Net Income plus Depreciation and Amortization
and the global aviation industry and aircraft leasing sector. Words such as anticipates,
expects, intends, plans, projects,
believes, may, will, would, could, should, seeks, estimates and variations on these
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words and similar expressions are intended to identify such forward-looking statements. These
statements are based on managements current expectations and beliefs and are subject to a number
of factors that could lead to actual results materially different from those described in the
forward-looking statements; Aircastle Limited can give no assurance that its expectations will be
attained. Accordingly, you should not place undue reliance on any forward-looking statements
contained in this press release. Factors that could have a material adverse effect on our
operations and future prospects or that could cause actual results to differ materially from
Aircastle Limiteds expectations include, but are not limited to, significant capital markets
disruption and volatility, which may adversely affect our continued ability to obtain additional
capital to finance our working capital needs; volatility in the value of our aircraft or in
appraisals thereof, which may, among other things, result in increased principal payments under our
term financings and reduce our cash flow available for investment or dividends; general economic
conditions and business conditions affecting demand for aircraft and lease rates; our continued
ability to obtain favorable tax treatment in Bermuda, Ireland and other jurisdictions; our ability
to pay dividends; high or volatile fuel prices, lack of access to capital, reduced load factors
and/or reduced yields, operational disruptions or unavailability of capital caused by political
unrest in North Africa, the Middle East or elsewhere, and other factors affecting the
creditworthiness of our airline customers and their ability to continue to perform their
obligations under our leases; termination payments on our interest rate hedges; and other risks
detailed from time to time in Aircastle Limiteds filings with the SEC, including Risk Factors as
previously disclosed in Aircastles 2009 Annual Report on Form 10-K, and in our other filings with
the SEC, press releases and other communications. In addition, new risks and uncertainties emerge
from time to time, and it is not possible for Aircastle to predict or assess the impact of every
factor that may cause its actual results to differ from those contained in any forward-looking
statements. Such forward-looking statements speak only as of the date of this press release.
Aircastle Limited expressly disclaims any obligation to release publicly any updates or revisions
to any forward-looking statements contained herein to reflect any change in its expectations with
regard thereto or change in events, conditions or circumstances on which any statement is based.
9
Aircastle Limited and Subsidiaries
Consolidated Balance Sheets
(Dollars in thousands, except share data)
(Unaudited)
Consolidated Balance Sheets
(Dollars in thousands, except share data)
(Unaudited)
December 31, | ||||||||
2009 | 2010 | |||||||
ASSETS |
||||||||
Cash and cash equivalents |
$ | 142,666 | $ | 239,957 | ||||
Accounts receivable |
2,941 | 1,815 | ||||||
Restricted cash and cash equivalents |
207,834 | 191,052 | ||||||
Restricted liquidity facility collateral |
81,000 | 75,000 | ||||||
Flight equipment held for lease, net of accumulated
depreciation of $586,537 and $785,490 |
3,812,970 | 4,065,780 | ||||||
Aircraft purchase deposits and progress payments |
141,822 | 219,898 | ||||||
Other assets |
65,279 | 65,557 | ||||||
Total assets |
$ | 4,454,512 | $ | 4,859,059 | ||||
LIABILITIES AND SHAREHOLDERS EQUITY |
||||||||
LIABILITIES |
||||||||
Borrowings from secured and unsecured financings
(including borrowings of ACS Ireland VIEs of $331,856
and $314,877, respectively |
$ | 2,464,560 | $ | 2,707,958 | ||||
Accounts payable, accrued expenses and other liabilities |
60,392 | 76,470 | ||||||
Dividends payable |
7,955 | 7,964 | ||||||
Lease rentals received in advance |
34,381 | 43,790 | ||||||
Liquidity facility |
81,000 | 75,000 | ||||||
Security deposits |
82,533 | 83,241 | ||||||
Maintenance payments |
253,175 | 342,333 | ||||||
Fair value of derivative liabilities |
179,279 | 179,585 | ||||||
Total liabilities |
3,163,275 | 3,516,341 | ||||||
Commitments and Contingencies |
||||||||
SHAREHOLDERS EQUITY |
||||||||
Preference shares, $.01 par value, 50,000,000 shares
authorized, no shares issued and outstanding |
| | ||||||
Common shares, $.01 par value, 250,000,000 shares
authorized, 79,550,421 shares issued and outstanding at
December 31, 2009; and 79,640,285 shares issued and
outstanding at December 31, 2010 |
796 | 796 | ||||||
Additional paid-in capital |
1,479,995 | 1,485,841 | ||||||
Retained earnings |
70,294 | 104,301 | ||||||
Accumulated other comprehensive loss |
(259,848 | ) | (248,220 | ) | ||||
Total shareholders equity |
1,291,237 | 1,342,718 | ||||||
Total liabilities and shareholders equity |
$ | 4,454,512 | $ | 4,859,059 | ||||
10
Aircastle Limited and Subsidiaries
Consolidated Statements of Income
(Dollars in thousands, except per share amounts)
(Unaudited)
Consolidated Statements of Income
(Dollars in thousands, except per share amounts)
(Unaudited)
Three Months Ended | Year Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2009 | 2010 | 2009 | 2010 | |||||||||||||
Revenues: |
||||||||||||||||
Lease rental revenue |
$ | 127,776 | $ | 139,335 | $ | 511,459 | $ | 531,076 | ||||||||
Amortization of net lease discounts and lease
incentives |
(3,310 | ) | (6,124 | ) | (11,229 | ) | (20,081 | ) | ||||||||
Maintenance revenue |
11,117 | 1,073 | 58,733 | 15,703 | ||||||||||||
Total lease rentals |
135,583 | 134,284 | 558,963 | 526,698 | ||||||||||||
Interest income |
141 | | 1,924 | | ||||||||||||
Other revenue |
70 | 434 | 9,698 | 1,012 | ||||||||||||
Total revenues |
135,794 | 134,718 | 570,585 | 527,710 | ||||||||||||
Expenses: |
||||||||||||||||
Depreciation |
53,102 | 56,204 | 209,481 | 220,476 | ||||||||||||
Interest, net |
41,885 | 49,684 | 169,810 | 178,262 | ||||||||||||
Selling, general and administrative (including
non-cash share based payment expense of $1,739 and
$2,266 for the three months ended, and $6,868 and
$7,509 for the year ended, December 31, 2009 and
2010, respectively) |
12,725 | 11,731 | 46,016 | 45,774 | ||||||||||||
Impairment of aircraft |
| | 18,211 | 7,342 | ||||||||||||
Maintenance and other costs |
4,317 | 2,783 | 19,431 | 9,612 | ||||||||||||
Total expenses |
112,029 | 120,402 | 462,949 | 461,466 | ||||||||||||
Other income (expense): |
||||||||||||||||
Gain on sale of flight equipment |
1,000 | 8,375 | 1,162 | 7,084 | ||||||||||||
Other |
1,499 | 131 | 2,354 | (916 | ) | |||||||||||
Total other income (expense) |
2,499 | 8,506 | 3,516 | 6,168 | ||||||||||||
Income from continuing operations before income
taxes |
26,264 | 22,822 | 111,152 | 72,412 | ||||||||||||
Income tax provision |
3,272 | 2,593 | 8,660 | 6,596 | ||||||||||||
Net income |
$ | 22,992 | $ | 20,229 | $ | 102,492 | $ | 65,816 | ||||||||
Earnings per common share Basic |
$ | 0.29 | $ | 0.25 | $ | 1.29 | $ | 0.83 | ||||||||
Earnings per common share Diluted |
$ | 0.29 | $ | 0.25 | $ | 1.29 | $ | 0.83 | ||||||||
Dividends declared per share |
$ | 0.10 | $ | 0.10 | $ | 0.40 | $ | 0.40 | ||||||||
11
Aircastle Limited and Subsidiaries
Consolidated Statements of Cash Flows
(Dollars in thousands)
(Unaudited)
Consolidated Statements of Cash Flows
(Dollars in thousands)
(Unaudited)
Year Ended December 31, | ||||||||
2009 | 2010 | |||||||
Cash flows from operating activities: |
||||||||
Net income |
$ | 102,492 | $ | 65,816 | ||||
Adjustments to reconcile net income to net cash provided by operating activities Depreciation |
209,481 | 220,476 | ||||||
Amortization of deferred financing costs |
12,232 | 15,065 | ||||||
Amortization of net lease discounts and lease incentives |
11,229 | 20,081 | ||||||
Deferred income taxes |
6,176 | 3,727 | ||||||
Accretion of purchase discounts on debt investments |
(469 | ) | | |||||
Non-cash share based payment expense |
6,868 | 7,509 | ||||||
Cash flow hedges reclassified into earnings |
12,894 | 9,634 | ||||||
Ineffective portion of cash flow hedges |
463 | 5,039 | ||||||
Security deposits and maintenance payments included in earnings |
(47,934 | ) | (14,004 | ) | ||||
Gain on the sale of flight equipment |
(1,162 | ) | (7,084 | ) | ||||
Gain on sale of debt investments |
(4,965 | ) | | |||||
Impairment of aircraft |
18,211 | 7,342 | ||||||
Other |
(959 | ) | 848 | |||||
Changes on certain assets and liabilities: |
||||||||
Accounts receivable |
364 | (412 | ) | |||||
Restricted cash and cash equivalents |
(25,211 | ) | 16,782 | |||||
Other assets |
(1,796 | ) | (3,097 | ) | ||||
Accounts payable, accrued expenses and other liabilities |
(3,189 | ) | 18,478 | |||||
Lease rentals received in advance |
6,086 | 8,672 | ||||||
Net cash provided by operating activities |
300,811 | 374,872 | ||||||
Cash flows from investing activities: |
||||||||
Acquisition and improvement of flight equipment |
(215,117 | ) | (465,529 | ) | ||||
Proceeds from sale of flight equipment |
11,601 | 68,622 | ||||||
Aircraft purchase deposits and progress payments, net of returned deposits |
(83,081 | ) | (144,143 | ) | ||||
Principal repayments on debt investments |
3,786 | | ||||||
Proceeds from sale of debt investments |
13,461 | | ||||||
Leasehold improvements, furnishings and equipment |
(84 | ) | (65 | ) | ||||
Net cash used in investing activities |
(269,434 | ) | (541,115 | ) | ||||
Cash flows from financing activities: |
||||||||
Repurchase of shares from directors and employees |
(262 | ) | (1,663 | ) | ||||
Proceeds from debt financings |
142,228 | 547,719 | ||||||
Securitization and term debt financing repayments |
(153,964 | ) | (304,533 | ) | ||||
Deferred financing costs |
(6,127 | ) | (15,365 | ) | ||||
Restricted secured liquidity facility collateral |
(81,000 | ) | 6,000 | |||||
Secured liquidity facility collateral |
81,000 | (6,000 | ) | |||||
Security deposits received |
52,351 | 14,218 | ||||||
Security deposits returned |
(14,687 | ) | (14,281 | ) | ||||
Maintenance payments received |
84,030 | 119,118 | ||||||
Maintenance payments returned |
(38,837 | ) | (46,174 | ) | ||||
Payments for terminated cash flow hedges and payment for option |
(2,758 | ) | (3,705 | ) | ||||
Dividends paid |
(31,632 | ) | (31,800 | ) | ||||
Net cash provided by financing activities |
30,342 | 263,534 | ||||||
Net increase in cash and cash equivalents |
61,719 | 97,291 | ||||||
Cash and cash equivalents at beginning of year |
80,947 | 142,666 | ||||||
Cash and cash equivalents at end of year |
$ | 142,666 | $ | 239,957 | ||||
12
Aircastle Limited and Subsidiaries
Supplemental Financial Information
(Amount in thousands, except per share amounts)
(Unaudited)
Supplemental Financial Information
(Amount in thousands, except per share amounts)
(Unaudited)
Three Months Ended | Year Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2009 | 2010 | 2009 | 2010 | |||||||||||||
Revenues |
$ | 135,794 | $ | 134,718 | $ | 570,585 | $ | 527,710 | ||||||||
EBITDA |
$ | 124,561 | $ | 134,834 | $ | 501,672 | $ | 491,231 | ||||||||
Adjusted net income |
$ | 21,116 | $ | 14,230 | $ | 104,793 | $ | 67,868 | ||||||||
Adjusted net income allocable to common shares |
$ | 20,751 | $ | 14,040 | $ | 103,052 | $ | 66,914 | ||||||||
Per common share Basic |
$ | 0.27 | $ | 0.18 | $ | 1.32 | $ | 0.85 | ||||||||
Per common share Diluted |
$ | 0.27 | $ | 0.18 | $ | 1.32 | $ | 0.85 | ||||||||
Adjusted net income plus depreciation and amortization |
$ | 77,528 | $ | 76,558 | $ | 325,503 | $ | 308,425 | ||||||||
Adjusted net income plus depreciation and
amortization allocable to common shares |
$ | 76,188 | $ | 75,535 | $ | 320,095 | $ | 304,091 | ||||||||
Per common share Basic |
$ | 0.98 | $ | 0.96 | $ | 4.10 | $ | 3.87 | ||||||||
Per common share Diluted |
$ | 0.98 | $ | 0.96 | $ | 4.10 | $ | 3.87 | ||||||||
Basic common shares outstanding |
78,013 | 78,541 | 77,986 | 78,488 | ||||||||||||
Diluted common shares outstanding |
78,013 | 78,541 | 77,986 | 78,488 |
Refer to the selected information accompanying this press release for a
reconciliation of GAAP to Non-GAAP information.
13
Aircastle Limited and Subsidiaries
Reconciliation of GAAP to Non-GAAP Measures
EBITDA Reconciliation
(Dollars in thousands)
(Unaudited)
Reconciliation of GAAP to Non-GAAP Measures
EBITDA Reconciliation
(Dollars in thousands)
(Unaudited)
Three Months Ended | Year Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2009 | 2010 | 2009 | 2010 | |||||||||||||
Net income |
$ | 22,992 | $ | 20,229 | $ | 102,492 | $ | 65,816 | ||||||||
Depreciation |
53,102 | 56,204 | 209,481 | 220,476 | ||||||||||||
Amortization of net
lease discounts and
lease incentives |
3,310 | 6,124 | 11,229 | 20,081 | ||||||||||||
Interest, net |
41,885 | 49,684 | 169,810 | 178,262 | ||||||||||||
Income tax provision |
3,272 | 2,593 | 8,660 | 6,596 | ||||||||||||
EBITDA |
$ | 124,561 | $ | 134,834 | $ | 501,672 | $ | 491,231 | ||||||||
We define EBITDA as income from continuing operations before income taxes, interest expense,
and depreciation and amortization. We use EBITDA to assess our consolidated financial and
operating performance, and we believe this non-GAAP measure is helpful in identifying trends in
our performance. Using EBITDA assists us in comparing our operating performance on a consistent
basis by removing the impact of our capital structure (primarily interest charges on our
outstanding debt) and asset base (primarily depreciation and amortization) from our operating
results.
14
Aircastle Limited and Subsidiaries
Reconciliation of GAAP to Non-GAAP Measures
Adjusted Net Income plus Depreciation Reconciliation
(Dollars in thousands)
(Unaudited)
Reconciliation of GAAP to Non-GAAP Measures
Adjusted Net Income plus Depreciation Reconciliation
(Dollars in thousands)
(Unaudited)
Three Months Ended | Year Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2009 | 2010 | 2009 | 2010 | |||||||||||||
Net income |
$ | 22,992 | $ | 20,229 | $ | 102,492 | $ | 65,816 | ||||||||
Ineffective portion and termination of cash flow hedges(1) |
623 | 2,506 | 5,387 | 5,805 | ||||||||||||
Mark to market of interest rate derivative contracts(2) |
(403 | ) | (130 | ) | (959 | ) | 860 | |||||||||
Accelerated write off of deferred financing fees |
| | | 2,471 | ||||||||||||
Gain on sale of flight equipment(2) |
(1,000 | ) | (8,375 | ) | (1,162 | ) | (7,084 | ) | ||||||||
Gain on sale of debt investments(2) |
(5,096 | ) | | (4,965 | ) | | ||||||||||
Termination of engine purchase agreement(2) |
4,000 | | 4,000 | | ||||||||||||
Adjusted net income |
21,116 | 14,230 | 104,793 | 67,868 | ||||||||||||
Depreciation |
53,102 | 56,204 | 209,481 | 220,476 | ||||||||||||
Amortization of net lease discounts and lease incentives |
3,310 | 6,124 | 11,229 | 20,081 | ||||||||||||
Adjusted net income plus depreciation and amortization |
$ | 77,528 | $ | 76,558 | $ | 325,503 | $ | 308,425 | ||||||||
(1) | Included in Interest, net | |
(2) | Included in Other income (expense) |
Management believes that Adjusted Net Income (ANI) and Adjusted Net Income plus Depreciation
and Amortization (ANIDA), when viewed in conjunction with the Companys results under GAAP and
the above reconciliation, provide useful information about operating and period-over-period
performance, and provide additional information that is useful for evaluating the underlying
operating performance of our business without regard to periodic reporting elements related to
interest rate derivative accounting as well as gains/(losses) related to flight equipment and debt
investments. Additionally, management believes that ANIDA provides investors with an additional
metric to enhance their understanding of the factors and trends affecting our ongoing cash
earnings, from which capital investments are made, debt is serviced and dividends are paid.
However, ANI and ANIDA are not measures of financial performance or liquidity under GAAP and,
accordingly, should not be considered as alternatives to net income (loss) or cash flow from
operating activities as indicators of operating performance or liquidity.
15
Aircastle Limited and Subsidiaries
Reconciliation of GAAP to Non-GAAP Measures
Reconciliation of Net Income Allocable to Common Shares
(In thousands)
(Unaudited)
Reconciliation of GAAP to Non-GAAP Measures
Reconciliation of Net Income Allocable to Common Shares
(In thousands)
(Unaudited)
Three Months Ended | Year Ended | |||||||||||||||
December 31, 2010 | December 31, 2010 | |||||||||||||||
Shares | Percent(2) | Shares | Percent(2) | |||||||||||||
Weighted average shares |
||||||||||||||||
Common shares outstanding Basic |
78,541 | 98.66 | % | 78,488 | 98.59 | % | ||||||||||
Unvested restricted common shares
outstanding |
1,063 | 1.34 | % | 1,119 | 1.41 | % | ||||||||||
Total weighted average shares outstanding |
79,604 | 100.00 | % | 79,607 | 100.00 | % | ||||||||||
Common shares outstanding Basic |
78,541 | 100.00 | % | 78,488 | 100.00 | % | ||||||||||
Effect of dilutive shares(1) |
| | | | ||||||||||||
Common shares outstanding Diluted |
78,541 | 100.00 | % | 78,488 | 100.00 | % | ||||||||||
Net income allocation |
||||||||||||||||
Net income |
$ | 20,229 | 100.00 | % | $ | 65,816 | 100.00 | % | ||||||||
Distributed and undistributed earnings
allocated to unvested restricted shares |
(270 | ) | (1.34 | )% | (925 | ) | (1.41 | )% | ||||||||
Earnings available to common shares |
$ | 19,959 | 98.66 | % | $ | 64,891 | 98.59 | % | ||||||||
Adjusted net income allocation |
||||||||||||||||
Adjusted net income |
$ | 14,230 | 100.00 | % | $ | 67,868 | 100.00 | % | ||||||||
Amounts allocated to unvested restricted
shares |
(190 | ) | (1.34 | )% | (954 | ) | (1.41 | )% | ||||||||
Amounts allocated to common shares |
$ | 14,040 | 98.66 | % | $ | 66,914 | 98.59 | % | ||||||||
Adjusted net income plus depreciation
and amortization allocation |
||||||||||||||||
Adjusted net income plus depreciation
and amortization |
$ | 76,558 | 100.00 | % | $ | 308,425 | 100.00 | % | ||||||||
Amounts allocated to unvested restricted
shares |
(1,023 | ) | (1.34 | )% | (4,334 | ) | (1.41 | )% | ||||||||
Amounts allocated to common shares |
$ | 75,535 | 98.66 | % | $ | 304,091 | 98.59 | % | ||||||||
(1) | The Company had no dilutive common share equivalents for the periods presented. | |
(2) | Percentages rounded to two decimal places. |
16
Aircastle Limited and Subsidiaries
Reconciliation of GAAP to Non-GAAP Measures
Reconciliation of Net Income Allocable to Common Shares
(In thousands)
(Unaudited)
Reconciliation of GAAP to Non-GAAP Measures
Reconciliation of Net Income Allocable to Common Shares
(In thousands)
(Unaudited)
Three Months Ended | Year Ended | |||||||||||||||
December 31, 2009 | December 31, 2009 | |||||||||||||||
Shares | Percent(2) | Shares | Percent(2) | |||||||||||||
Weighted average shares |
||||||||||||||||
Common shares outstanding Basic |
78,013 | 98.27 | % | 77,986 | 98.34 | % | ||||||||||
Unvested restricted common shares
outstanding |
1,372 | 1.73 | % | 1,318 | 1.66 | % | ||||||||||
Total weighted average shares outstanding |
79,385 | 100.00 | % | 79,304 | 100.00 | % | ||||||||||
Common shares outstanding Basic |
78,013 | 100.00 | % | 77,986 | 100.00 | % | ||||||||||
Effect of dilutive shares(1) |
| | | | ||||||||||||
Common shares outstanding Diluted |
78,013 | 100.00 | % | 77,986 | 100.00 | % | ||||||||||
Net income allocation |
||||||||||||||||
Net income |
$ | 22,992 | 100.00 | % | $ | 102,492 | 100.00 | % | ||||||||
Distributed and undistributed earnings
allocated to unvested restricted shares |
(397 | ) | (1.73 | )% | (1,703 | ) | (1.66 | )% | ||||||||
Earnings available to common shares |
$ | 22,595 | 98.27 | % | $ | 100,789 | 98.34 | % | ||||||||
Adjusted net income allocation |
||||||||||||||||
Adjusted net income |
$ | 21,116 | 100.00 | % | $ | 104,793 | 100.00 | % | ||||||||
Amounts allocated to unvested restricted
shares |
(365 | ) | (1.73 | )% | (1,741 | ) | (1.66 | )% | ||||||||
Amounts allocated to common shares |
$ | 20,571 | 98.27 | % | $ | 103,052 | 98.34 | % | ||||||||
Adjusted net income plus depreciation
and amortization allocation |
||||||||||||||||
Adjusted net income plus depreciation
and amortization |
$ | 77,528 | 100.00 | % | $ | 325,503 | 100.00 | % | ||||||||
Amounts allocated to unvested restricted
shares |
(1,340 | ) | (1.73 | )% | (5,408 | ) | (1.66 | )% | ||||||||
Amounts allocated to common shares |
$ | 76,188 | 98.27 | % | $ | 320,095 | 98.34 | % | ||||||||
(1) | The Company had no dilutive common share equivalents for the periods presented. | |
(2) | Percentages rounded to two decimal places |
17