Welcome!

News Feed Item

AeroCentury Corp. Reports Fourth Quarter 2013 And Full Year 2013 Results

BURLINGAME, Calif., March 11, 2014 /PRNewswire/ -- AeroCentury Corp. (NYSE MKT: ACY), an independent aircraft leasing company, today reported its operating results for the fourth quarter and year ended December 31, 2013. 

"The Company diversified its portfolio through asset acquisitions and sales in 2013," said Neal Crispin, President of AeroCentury.  "A milestone in our diversification was the introduction of our first Bombardier Canadair CRJ700 series regional jet during the fourth quarter.  In early 2014, we purchased three more CRJ700 series aircraft.  At the same time, we disposed of some of the older aircraft in our portfolio.  These asset acquisitions and dispositions will help us adjust and grow our portfolio of aircraft assets to meet the projected needs of the regional aircraft business, all with an eye toward long-term enhancement of value for our stockholders."

The Company reported a net loss of $1.4 million, or ($0.90) per diluted share, for the fourth quarter of 2013, compared to net income of $1.8 million, or $1.14 per diluted share, for the fourth quarter of 2012.  However, for the year ended December 31, 2013, the Company reported net income of $3.2 million, or $2.03 per diluted share, compared to net income of $5.2 million, or $3.32 per diluted share, for the previous year. 

Total revenues were $5.2 million and $32.2 million for the fourth quarter and year ended December 31, 2013, respectively, compared to total revenues of $8.0 million and $29.4 million, respectively, for the same periods a year ago. 

Operating lease revenue was lower in the fourth quarter and year ended December 31, 2013 compared to the same periods a year ago primarily as a result of lower portfolio utilization and reduced revenue from assets for which the Company does not record revenue in advance of cash receipt as a result of substantial uncertainty of collectability.  The effects of these decreases were partially offset by increases in operating lease revenue from assets purchased during 2012 and 2013. 

Maintenance reserves revenue was lower in the fourth quarter of 2013 compared to the same period a year ago, primarily reflecting reduced revenue from leases under which the Company does not record revenue in advance of cash receipt as a result of substantial uncertainty of collectability.  Maintenance reserves revenue for the year ended December 31, 2013 was higher compared to the previous year.  The increase was primarily due to a one-time payment of $6.5 million received upon assignment of two leases from one lessee to a second lessee in 2012, which payment was recognized as maintenance reserves revenue upon the subsequent termination of the assigned leases in the first quarter of 2013.

During 2013, the Company sold five aircraft and an engine, all of which generated gains.  During the fourth quarter of 2013, the Company recorded a loss on disposal of a spare engine.  During 2012, the Company sold two aircraft and one engine, all of which generated gains.

Total expenses increased by $2.0 million and $5.8 million in the fourth quarter and year ended December 31, 2013, respectively, as compared to the same periods in 2012. 

Maintenance expense was higher in the 2013 periods as a result of increases in maintenance performed by lessees using nonrefundable reserves and maintenance performed by the Company on off-lease aircraft. 

Depreciation was higher in the 2013 periods primarily as a result of acquisitions and changes in residual assumptions from year to year. 

The Company's interest expense was lower in the 2013 periods as a result of a lower average outstanding debt balance and lower amortization of renewal fees related to the Company's credit facility.

The Company's portfolio now consists of five aircraft engines and forty-three aircraft, covering nine different aircraft types.  Our customer base continues to consist exclusively of regional carriers – fifteen different 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.

(see tables following)

 

AeroCentury Corp.

Selected Financial Information

(in thousands, except share and per share data)



For the Three Months

Ended December 31,

For the Year

Ended December 31,


2013

2012

2013

2012


(Unaudited)

(Unaudited)

(Unaudited)

(Audited)

Revenues and other income:





Operating lease revenue

$4,853

$6,274

$18,794

$23,662

Maintenance reserves revenue

618

1,072

8,879

4,099

Net (loss)/gain on disposal of assets

(340)

613

3,808

1,486

Other income

74

30

719

111


5,205

7,989

32,200

29,358

Expenses:





Maintenance costs

2,525

908

8,765

4,082

Depreciation

1,973

1,601

7,313

6,127

Management fees

1,134

1,081

4,352

4,166

Interest

1,041

1,168

4,075

4,627

Professional fees and other

654

570

2,789

2,469


7,327

5,328

27,294

21,471

(Loss)/income before income tax provision

(2,122)

2,661

4,906

7,887

Income tax (benefit)/provision

(726)

870

1,688

2,698

Net (loss)/income

$ (1,396)

$   1,791

$ 3,218

$  5,189

(Loss)/earnings per share:





  Basic

$(0.90)

$  1.16

$    2.08

$    3.36

  Diluted

$(0.90)

$  1.14

$    2.03

$    3.32

Weighted average shares used in

      (loss)/earnings per share computations:





  Basic

1,543,257

1,543,257

1,543,257

1,543,257

  Diluted

1,543,257

1,569,769

1,587,036

1,563,054



Summary Balance Sheet:

December 31,

2013

December 31,

2012




(Unaudited)

(Audited)



Total assets

$164,065

$152,426



Total liabilities

$114,968

$106,547



Stockholders' equity

$  49,097

$  45,879



SOURCE AeroCentury Corp.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
When growing capacity and power in the data center, the architectural trade-offs between server scale-up vs. scale-out continue to be debated. Both approaches are valid: scale-out adds multiple, smaller servers running in a distributed computing model, while scale-up adds fewer, more powerful servers that are capable of running larger workloads. It’s worth noting that there are additional, unique advantages that scale-up architectures offer. One big advantage is large memory and compute capacity...
A look across the tech landscape at the disruptive technologies that are increasing in prominence and speculate as to which will be most impactful for communications – namely, AI and Cloud Computing. In his session at 20th Cloud Expo, Curtis Peterson, VP of Operations at RingCentral, highlighted the current challenges of these transformative technologies and shared strategies for preparing your organization for these changes. This “view from the top” outlined the latest trends and developments i...
Artificial intelligence, machine learning, neural networks. We’re in the midst of a wave of excitement around AI such as hasn’t been seen for a few decades. But those previous periods of inflated expectations led to troughs of disappointment. Will this time be different? Most likely. Applications of AI such as predictive analytics are already decreasing costs and improving reliability of industrial machinery. Furthermore, the funding and research going into AI now comes from a wide range of com...
It is ironic, but perhaps not unexpected, that many organizations who want the benefits of using an Agile approach to deliver software use a waterfall approach to adopting Agile practices: they form plans, they set milestones, and they measure progress by how many teams they have engaged. Old habits die hard, but like most waterfall software projects, most waterfall-style Agile adoption efforts fail to produce the results desired. The problem is that to get the results they want, they have to ch...
No hype cycles or predictions of zillions of things here. IoT is big. You get it. You know your business and have great ideas for a business transformation strategy. What comes next? Time to make it happen. In his session at @ThingsExpo, Jay Mason, Associate Partner at M&S Consulting, presented a step-by-step plan to develop your technology implementation strategy. He discussed the evaluation of communication standards and IoT messaging protocols, data analytics considerations, edge-to-cloud tec...
Cloud Expo, Inc. has announced today that Andi Mann and Aruna Ravichandran have been named Co-Chairs of @DevOpsSummit at Cloud Expo Silicon Valley which will take place Oct. 31-Nov. 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. "DevOps is at the intersection of technology and business-optimizing tools, organizations and processes to bring measurable improvements in productivity and profitability," said Aruna Ravichandran, vice president, DevOps product and solutions marketing...
"When we talk about cloud without compromise what we're talking about is that when people think about 'I need the flexibility of the cloud' - it's the ability to create applications and run them in a cloud environment that's far more flexible,” explained Matthew Finnie, CTO of Interoute, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
"Loom is applying artificial intelligence and machine learning into the entire log analysis process, from start to finish and at the end you will get a human touch,” explained Sabo Taylor Diab, Vice President, Marketing at Loom Systems, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
We build IoT infrastructure products - when you have to integrate different devices, different systems and cloud you have to build an application to do that but we eliminate the need to build an application. Our products can integrate any device, any system, any cloud regardless of protocol," explained Peter Jung, Chief Product Officer at Pulzze Systems, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA
With major technology companies and startups seriously embracing Cloud strategies, now is the perfect time to attend 21st Cloud Expo October 31 - November 2, 2017, at the Santa Clara Convention Center, CA, and June 12-14, 2018, at the Javits Center in New York City, NY, and learn what is going on, contribute to the discussions, and ensure that your enterprise is on the right path to Digital Transformation.
The Internet giants are fully embracing AI. All the services they offer to their customers are aimed at drawing a map of the world with the data they get. The AIs from these companies are used to build disruptive approaches that cannot be used by established enterprises, which are threatened by these disruptions. However, most leaders underestimate the effect this will have on their businesses. In his session at 21st Cloud Expo, Rene Buest, Director Market Research & Technology Evangelism at Ara...
In his session at @ThingsExpo, Eric Lachapelle, CEO of the Professional Evaluation and Certification Board (PECB), provided an overview of various initiatives to certify the security of connected devices and future trends in ensuring public trust of IoT. Eric Lachapelle is the Chief Executive Officer of the Professional Evaluation and Certification Board (PECB), an international certification body. His role is to help companies and individuals to achieve professional, accredited and worldwide re...
Wooed by the promise of faster innovation, lower TCO, and greater agility, businesses of every shape and size have embraced the cloud at every layer of the IT stack – from apps to file sharing to infrastructure. The typical organization currently uses more than a dozen sanctioned cloud apps and will shift more than half of all workloads to the cloud by 2018. Such cloud investments have delivered measurable benefits. But they’ve also resulted in some unintended side-effects: complexity and risk. ...
"We are a monitoring company. We work with Salesforce, BBC, and quite a few other big logos. We basically provide monitoring for them, structure for their cloud services and we fit into the DevOps world" explained David Gildeh, Co-founder and CEO of Outlyer, in this SYS-CON.tv interview at DevOps Summit at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
21st International Cloud Expo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Me...