Aircastle Limited
Nov 6, 2009
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Aircastle Announces Third Quarter 2009 Results

Third Quarter Highlights

STAMFORD, Conn.., Nov 06, 2009 /PRNewswire-FirstCall via COMTEX/ -- Aircastle Limited (the "Company" or "Aircastle") (NYSE: AYR) reported third quarter net income of $33.5 million, or $0.42 per diluted common share and adjusted net income of $35.7 million, or $0.45 per diluted common share.

Aircastle CEO Ron Wainshal commented, "Operating performance during the third quarter was excellent with utilization at almost 100 percent and with unrestricted cash building to $132 million at September 30th. Combined with our strong operating performance and access to capital, we are poised for growth and are actively pursuing new opportunities."

Third quarter total revenues were $165.7 million, an increase of $21.3 million from the third quarter 2008. The increase was driven by higher maintenance revenue of $25.9 million and $9.4 million of lease termination revenue over the same period a year ago. These increases were offset by higher lease incentive amortization of $5.8 million and a reduction in lease rental revenue of $8.3 million.

Lease rental revenue of $128.3 million declined by $8.3 million from the third quarter 2008. An increase in revenues of $4.5 million related to aircraft acquisitions was offset by a decrease of $5.8 million related to aircraft sold, $2.2 million due to aircraft in freighter conversion and $4.1 million related to lease transitions and extensions.

EBITDA was $135.0 million, up $5.8 million from the third quarter of 2008 due primarily to higher maintenance and lease termination revenue totaling $35.3 million, offset by lower lease rental revenue of $8.3 million, higher maintenance and other costs of $3.9 million due mainly to transitions, and $18.2 million of impairment charges.

Adjusted net income plus depreciation and amortization was $92.8 million, an increase of $7.5 million compared to the third quarter of 2008. The year over year change was driven primarily by higher maintenance and lease termination revenue totaling $35.3 million, and lower adjusted interest, net of $2.2 million, offset by lower lease rental revenue of $8.3 million, higher maintenance and other costs of $3.9 million, and $18.2 million of impairment charges.

Adjusted net income was $35.7 million, up $0.7 million compared to the third quarter of 2008. The year over year change reflects higher maintenance and lease termination revenue totaling $35.3 million, and lower adjusted interest, net of $2.2 million, offset by lower lease rental revenue of $8.3 million, higher lease incentive amortization of $5.8 million, higher maintenance and other costs of $3.9 million, and $18.2 million of impairment charges.

In connection with the sale and early return of aircraft in the third quarter of 2009, Aircastle's results included maintenance revenue of $11.6 million and lease termination revenue of $9.4 million, which were offset by $18.2 million in aircraft impairment charges and a gain on the sale of the aircraft of $0.2 million, resulting in incremental pre-tax income of $3.0 million.

(1) Refer to the selected financial information accompanying this press release for a reconciliation of GAAP to Non-GAAP numbers.

    Aviation Assets

    As of September 30, 2009, Aircastle owned 128 aircraft having a net book
    value of $3.8 billion.

                                                        Owned Aircraft
                                                             as of
                                                         September 30,
                                                             2009(A)
                                                           -----------
    107 Passenger Aircraft                                     70%
    21 Freighter Aircraft(B)                                   30%
    Number of Lessees                                          60
    Number of Countries                                        34
    Weighted Average Remaining Lease Term (years) (B)         4.9
    Percentage of Aircraft Leased Outside U.S.                 90%
    Percentage of "Latest Generation" Aircraft                 88%
    Weighted Average Fleet Utilization during Q3 2009         100%


        (A) -Percentages calculated using net book value.
        (B) -Four Boeing Model 737-400 aircraft which will be converted to
             freighter configuration are included as "Freighter" aircraft; the
             remaining lease terms for these aircraft, for which we have
             executed leases post-conversion, are measured on the ten-year
             terms of the post-conversion leases.



Aircastle entered into a commitment with Aerovias del Continente Americano ("Avianca") to purchase and lease back a new A330-200 delivering in December 2009. This new transaction would represent an advancement of one of Aircastle's new A330 aircraft order positions. We anticipate this transaction will be funded with ECA-supported financing along terms similar to the transaction we completed in May 2009.

Conference Call

In connection with this earnings release, management will host an earnings conference call on Friday, November 6, 2009 at 11:00 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 Third Quarter Earnings Call."

A 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.

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 Friday, November 13, 2009 by dialing (800) 642-1687 (from within the U.S.) or (706) 645-9291 (from outside of the U.S.); please reference passcode "36526839."

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 September 30, 2009 Aircastle's aircraft portfolio consisted of 128 aircraft and had 60 lessees located in 34 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 and lease aircraft, raise capital, pay dividends, and increase revenues, earnings and EBITDA 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 words and similar expressions are intended to identify such forward-looking statements. These statements are based on management's 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 Limited's expectations include, but are not limited to, prolonged capital markets disruption and volatility, which may adversely affect our continued ability to obtain additional capital to finance our working capital needs, our pre-delivery payment obligations and other aircraft acquisition commitments, our ability to extend or replace our existing financings, and the demand for and value of aircraft; our exposure to increased bank and counterparty risk caused by credit and capital markets disruptions; 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 yields 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 Limited's filings with the SEC, including "Risk Factors" as previously disclosed in Aircastle's 2008 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.

                       Aircastle Limited and Subsidiaries
                          Consolidated Balance Sheets
                    (Dollars in thousands, except share data)

                                                         Dec. 31,    Sept. 30,
                                                            2008         2009
                                                            ----         ----
                                                                  (Unaudited)
    ASSETS
    Cash and cash equivalents                            $80,947     $132,408
    Accounts receivable                                    3,161        4,065
    Debt investments                                      14,349        7,136
    Restricted cash and cash equivalents                 182,623      218,079
    Restricted liquidity facility collateral                   -       81,000
    Flight equipment held for lease, net of
     accumulated depreciation of
     $371,591 and $521,251                             3,837,543    3,767,314
    Aircraft purchase deposits and progress
     payments                                             68,923      109,454
    Leasehold improvements, furnishings and
     equipment, net of accumulated depreciation
     of $1,999 and $2,349                                  1,174          907
    Other assets                                          62,852       70,519
                                                          ------       ------
      Total assets                                    $4,251,572   $4,390,882
                                                      ==========   ==========

    LIABILITIES AND SHAREHOLDERS' EQUITY
    LIABILITIES
    Borrowings from securitizations and term debt
     financings                                       $2,476,296   $2,435,593
    Accounts payable, accrued expenses and other
     liabilities                                          60,789       59,205
    Dividends payable                                      7,862        7,923
    Lease rentals received in advance                     28,463       27,758
    Liquidity facility                                         -       81,000
    Security deposits                                     65,307       73,131
    Maintenance payments                                 224,288      250,018
    Fair value of derivative liabilities                 276,401      205,549
                                                         -------      -------
      Total liabilities                                3,139,406    3,140,177
                                                       ---------    ---------

    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, 78,620,320 shares issued
     and outstanding at December 31, 2008; and
     79,234,663 shares issued and outstanding at
     September 30, 2009                                      786          792
    Additional paid-in capital                         1,474,455    1,478,275
    Retained earnings (deficit)                             (473)      55,256
    Accumulated other comprehensive loss                (362,602)    (283,618)
                                                       ---------    ---------
      Total shareholders' equity                       1,112,166    1,250,705
                                                       ---------    ---------
      Total liabilities and shareholders' equity      $4,251,572   $4,390,882
                                                      ==========   ==========



                       Aircastle Limited and Subsidiaries
                        Consolidated Statements of Income
                 (Dollars in thousands, except per share amounts)
                                   (Unaudited)


                                Three Months Ended    Nine Months Ended
                                  September 30,         September 30,
                                  -------------         -------------
                                 2008       2009       2008       2009
                                 ----       ----       ----       ----
    Revenues:
    Lease rental revenue     $136,578   $128,283   $405,206   $383,683
    Amortization of net
     lease discounts and
     lease incentives           1,781     (3,992)     6,929     (7,919)
    Maintenance revenue         5,433     31,376      9,575     47,616
                                -----     ------      -----     ------
      Total lease rentals     143,792    155,667    421,710    423,380
    Interest income               628        556      2,533      1,783
    Other revenue                  34      9,517        562      9,628
                                   --      -----        ---      -----
      Total revenues          144,454    165,740    424,805    434,791
                              -------    -------    -------    -------

    Expenses:
    Depreciation               52,020     53,130    151,840    156,379
    Interest, net              54,112     43,032    146,442    127,925
    Selling, general and
     administrative
     (including non-cash
     share based payment
     expense of $1,659 and
     $1,742 for the three
     months ended, and
     $4,872 and $5,129 for
     the nine months ended
     September 30, 2008 and
     2009, respectively)       11,641     11,074     34,484     33,291
    Impairment of aircraft          -     18,211          -     18,211
    Maintenance and other
     costs                        891      4,836      2,133     15,114
                                  ---      -----      -----     ------
     Total expenses           118,664    130,283    334,899    350,920
                              -------    -------    -------    -------

    Other income (expense):
     Gain on sale of
      aircraft                    772        162      5,898        162
     Other                     (1,673)      (738)      (590)       855
                              -------      -----      -----        ---
      Total other income
       (expense)                 (901)      (576)     5,308      1,017
                                -----      -----      -----      -----

    Income from continuing
     operations before
     income taxes              24,889     34,881     95,214     84,888
    Income tax provision        1,315      1,423      4,662      5,388
                                -----      -----      -----      -----
    Net income                $23,574    $33,458    $90,552    $79,500
                              =======    =======    =======    =======


    Earnings per common
     share - Basic              $0.30      $0.42      $1.15      $1.00
                                =====      =====      =====      =====

    Earnings per common
     share - Diluted            $0.30      $0.42      $1.15      $1.00
                                =====      =====      =====      =====

    Dividends declared per
     share                      $0.25      $0.10      $0.75      $0.30
                                =====      =====      =====      =====



                       Aircastle Limited and Subsidiaries
                     Consolidated Statements of Cash Flows
                             (Dollars in thousands)
                                   (Unaudited)

                                                        Nine Months Ended
                                                          September 30,
                                                          -------------

                                                        2008          2009
                                                        ----          ----
    Cash flows from operating activities:
    Net income                                       $90,552       $79,500
      Adjustments to reconcile net income to net
        cash provided by operating activities:
       Depreciation                                   151,840       156,379
       Amortization of deferred financing costs         9,773         8,808
       Amortization of net lease discounts and
        lease incentives                              (6,929)        7,919
       Deferred income taxes                           3,344         4,560
       Accretion of purchase discounts on debt
        investments                                     (419)         (430)
       Non-cash share based payment expense            4,872         5,129
       Cash flow hedges reclassified into earnings    10,740        13,690
       Ineffective portion of cash flow hedges         7,977        (2,874)
       Gain on sale of flight equipment               (5,898)         (162)
       Security deposits and maintenance payments
        included in earnings                          (9,171)      (36,982)
       Loss on sale of investments                       245           131
       Impairment of aircraft                              -        18,211
       Other                                             943          (556)
       Changes in certain assets and liabilities:
        Accounts receivable                              903          (909)
        Restricted cash and cash equivalents         (47,923)      (35,456)
        Other assets                                   1,797        (1,975)
        Accounts payable, accrued expenses and other
         liabilities                                   3,911        (8,397)
        Payable to affiliates                           (200)            -
        Lease rentals received in advance             (2,796)         (537)
                                                     -------         -----
         Net cash provided by operating activities   213,561       206,049
                                                     -------       -------

    Cash flows from investing activities:
      Acquisition and improvement of flight
       equipment and lease incentives               (228,934)     (124,082)
      Aircraft purchase deposits and progress
       payments, net of returned deposits             (2,154)      (41,912)
      Proceeds from sale of flight equipment          48,882        10,601
      Restricted cash from disposition of flight
       equipment                                     (12,294)            -
      Proceeds from sale of debt investments          65,335         5,423
      Principal repayments on debt investments        11,674         3,787
      Collateral call payments on derivatives and
       repurchase agreements                        (349,123)            -
      Collateral call receipts on derivatives and
       repurchase agreements                         375,066             -
      Leasehold improvements, furnishings and
       equipment                                        (365)          (82)
                                                       -----          ----
        Net cash used in investing activities        (91,913)     (146,265)
                                                    --------     ---------

    Cash flows from financing activities:
      Issuance, net of repurchases, of common
       shares to directors and employees              (1,263)         (247)
      Proceeds from term debt financings             992,715        70,916
      Securitization and term debt financing
       repayments                                    (85,055)     (111,619)
      Restricted cash and cash equivalents related
       to unreleased term debt financing
       borrowings                                    (87,462)            -
      Deferred financing costs                       (23,346)       (3,588)
      Credit facility borrowings                     482,723             -
      Credit facility repayments                  (1,167,578)            -
      Restricted secured liquidity facility
       collateral                                          -       (81,000)
      Secured liquidity facility collateral                -        81,000
      Principal repayments on repurchase
       agreements                                    (67,744)            -
      Security deposits and maintenance payments
       received                                       83,966        96,162
      Security deposits and maintenance payments
       returned                                      (22,493)      (33,479)
      Payments for terminated cash flow hedges       (68,332)       (2,758)
      Dividends paid                                 (94,291)      (23,710)
                                                    --------      --------
       Net cash (used in) provided by financing
        activities                                   (58,160)       (8,323)
                                                    --------       -------

    Net increase in cash and cash equivalents         63,488        51,461
    Cash and cash equivalents at beginning of
     period                                           13,546        80,947
                                                      ------        ------
    Cash and cash equivalents at end of period       $77,034      $132,408
                                                     =======      ========



                       Aircastle Limited and Subsidiaries
                       Supplemental Financial Information
                 (Amount in thousands, except per share amounts)
                                   (Unaudited)


                                      Three Months Ended    Nine Months Ended
                                         September 30,        September 30,
                                         -------------        -------------
                                      2008          2009     2008        2009
                                      ----          ----     ----        ----

    Revenues                         $144,454    $165,740   $424,805  $434,791

    EBITDA                           $129,240    $135,035   $386,567  $377,111

    Adjusted net income               $35,019     $35,668   $104,229   $83,677

    Adjusted net income allocable to
     common shares                    $34,602     $35,060   $103,056   $82,295
       Per common share - Basic         $0.44       $0.45      $1.33     $1.06
       Per common share - Diluted       $0.44       $0.45      $1.33     $1.06

    Adjusted net income plus
     depreciation and amortization    $85,258     $92,790   $249,140  $247,975

    Adjusted net income plus
     depreciation and amortization
     allocable to common shares       $84,242     $91,208   $246,336  $243,880
       Per common share - Basic         $1.08       $1.17      $3.17     $3.13
       Per common share - Diluted       $1.08       $1.17      $3.17     $3.13

    Basic common shares outstanding    77,768      78,013     77,744    77,977
    Diluted common shares outstanding  77,768      78,013     77,744    77,977


    Refer to the selected information accompanying this press release for a
    reconciliation of GAAP to Non-GAAP information.



                       Aircastle Limited and Subsidiaries
                  Reconciliation of GAAP to Non-GAAP Measures
                             EBITDA Reconciliation
                             (Dollars in thousands)
                                   (Unaudited)

                                       Three Months Ended    Nine Months Ended
                                          September 30,         September 30,
                                          -------------         -------------
                                        2008       2009       2008      2009
                                        ----       ----       ----      ----
    Net income                       $23,574    $33,458    $90,552   $79,500
    Depreciation                      52,020     53,130    151,840   156,379
    Amortization of net lease
     discounts and lease incentives   (1,781)     3,992     (6,929)    7,919
    Interest, net                     54,112     43,032    146,442   127,925
    Income tax provision               1,315      1,423      4,662     5,388
                                       -----      -----      -----     -----
    EBITDA                          $129,240   $135,035   $386,567  $377,111
                                    ========   ========   ========  ========


    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.



                       Aircastle Limited and Subsidiaries
                   Reconciliation of GAAP to Non-GAAP Measures
               Adjusted Net Income plus Depreciation Reconciliation
                             (Dollars in thousands)
                                   (Unaudited)


                                     Three Months Ended      Nine Months Ended
                                        September 30,           September 30,
                                        -------------           -------------
                                     2008        2009         2008      2009
                                     ----        ----         ----      ----
    Net income                    $23,574     $33,458      $90,552   $79,500
    Ineffective portion and
     termination of cash
     flow hedges(1)                10,545       1,633       17,575     4,764
    Mark to market adjustment on
     undesignated derivatives(2)    1,672         608          942      (556)
    Write-off of deferred
     financing fees                     -           -          813         -
    Gain on sale of aircraft         (772)       (162)      (5,898)     (162)
    Loss on sale of
     debt investments(2)                -         131          245       131
                                      ---         ---          ---       ---
    Adjusted net income           $35,019     $35,668     $104,229   $83,677

    Depreciation                   52,020      53,130      151,840   156,379
    Amortization of net
     lease discounts and
     lease incentives              (1,781)      3,992       (6,929)    7,919
                                   ------       -----       ------     -----
    Adjusted net income
     plus depreciation
     and amortization             $85,258     $92,790     $249,140  $247,975
                                  =======     =======     ========  ========

         (1)  Included in Interest, net
         (2)  Included in Other income (expense)


    We adjust net income for ineffective portion and termination of cash flow
    hedges, write-off of deferred financing fees, mark to market and
    termination of interest rate swaps, loss on sale of debt investments and
    gain on sale of flight equipment. We use adjusted net income to assess our
    consolidated financial and operating performance, and we believe this non-
    GAAP measure is helpful in identifying long-term trends in our performance
    net of non-recurring items.

    We use adjusted net income plus depreciation and amortization to assess
    our consolidated financial and operating performance, and we believe this
    non-GAAP measure is helpful in identifying trends in our performance on an
    operating cash flow basis after taking into account interest expense on
    our outstanding indebtedness.



                       Aircastle Limited and Subsidiaries
                   Reconciliation of GAAP to Non-GAAP Measures
             Reconciliation of Net Income Allocable to Common Shares
                                  (in thousands)
                                   (Unaudited)


                              Three Months Ended      Nine Months Ended
                              September 30, 2009      September 30, 2009
                              ------------------      ------------------
                              Shares      Percent(2)  Shares    Percent(2)
    Weighted average shares
    -----------------------
    Common shares
     outstanding - Basic       78,013      98.30%      77,977       98.35%
    Unvested restricted
     common shares
     outstanding                1,353       1.70%       1,309        1.65%
                                -----      -----        -----        -----
    Total weighted Average
     shares outstanding        79,366     100.00%      79,286      100.00%
                               ======     ======       ======      =======

    Common shares
     outstanding - Basic       78,013     100.00%      77,977      100.00%
    Effect of dilutive
     shares(1)                      -          -            -           -
                               ------     ------       ------      ------
    Common shares
     outstanding - Diluted     78,013     100.00%      77,977      100.00%
                               ======     ======       ======      ======

    Net income allocation
    ---------------------
    Net income                $33,458     100.00%     $79,500      100.00%
    Distributed and
     Undistributed earnings
     allocated to unvested
     restricted shares           (570)    (1.70)%      (1,313)     (1.65)%
                                 -----     -----       ------        ----
    Earnings available to
     common shares            $32,888      98.30%     $78,187       98.35%
                              =======      =====      =======       =====

    Adjusted net income
     allocation
    -------------------
    Adjusted net income       $35,668     100.00%     $83,677      100.00%
    Amounts allocated to
     unvested restricted
     shares                      (608)    (1.70)%      (1,382)     (1.65)%
                                 -----    -----        ------      -----
    Amounts allocated
     to common shares         $35,060      98.30%     $82,295       98.35%
                              =======      =====      =======       =====

    Adjusted net income plus
     depreciation and
     amortization allocation
    ------------------------
    Adjusted net income plus
     depreciation and
     amortization             $92,790     100.00%    $247,975      100.00%
    Amounts allocated to
     unvested restricted
     shares                    (1,582)    (1.70)%      (4,095)     (1.65)%
                               -------     -----        ------       ----
    Amounts allocated
     to common shares         $91,208      98.30%    $243,880       98.35%
                              =======      =====     ========       =====


    (1) The Company had no dilutive common share equivalents for the periods
        presented.
    (2) Percentages rounded to two decimal places.



                       Aircastle Limited and Subsidiaries
                   Reconciliation of GAAP to Non-GAAP Measures
             Reconciliation of Net Income Allocable to Common Shares
                                 (in thousands)
                                   (Unaudited)


                              Three Months Ended      Nine Months Ended
                              September 30, 2008      September 30, 2008
                              ------------------      ------------------
                              Shares      Percent(2)  Shares    Percent(2)
    Weighted average
     shares
    ----------------
    Common shares
     outstanding -
     Basic                     77,768      98.81%      77,744       98.87%
    Unvested
     restricted
     common shares
     outstanding                  938       1.19%         885        1.13%
                                  ---      -----          ---        ----
    Total weighted
     average shares
     outstanding               78,706     100.00%      78,629      100.00%
                               ======     ======       ======      ======

    Common shares
     outstanding -
     Basic                     77,768     100.00%      77,744      100.00%
    Effect of dilutive
     shares(1)                      -           -           -           -
                               ------      ------      ------      ------
    Common shares
     outstanding -
     Diluted                   77,768     100.00%      77,744      100.00%
                               ======     ======       ======        ====

    Net income
     allocation
    -----------
    Net income                $23,574     100.00%     $90,552      100.00%
    Distributed and
     undistributed earnings
     allocated to
     unvested
     restricted
     shares                      (281)    (1.19)%      (1,019)     (1.13)%
                                -----      -----        ------      -----
    Earnings Available
     to common shares         $23,293      98.81%     $89,533       98.87%
                              =======      =====      =======       =====

    Adjusted net income
     allocation
    -------------------
    Adjusted net
     income                   $35,019     100.00%    $104,229      100.00%
    Amounts allocated
     to unvested restricted
     shares                      (417)    (1.19)%      (1,173)     (1.13)%
                                -----      -----       ------       -----
    Amounts allocated
     to common shares         $34,602      98.81%    $103,056       98.87%
                              =======      =====     ========        ====

    Adjusted net income plus
     depreciation and
     amortization allocation
    ------------------------
    Adjusted net income plus
     depreciation and
     amortization             $85,258     100.00%    $249,140      100.00%
    Amounts allocated
     to unvested restricted
     shares                    (1,016)    (1.19)%      (2,804)     (1.13)%
                               ------      -----       ------        ----
    Amounts allocated
     to common shares          84,242      98.81%    $246,336       98.87%
                               ======      =====     ========       =====


    (1) The Company had no dilutive common share equivalents for the periods
        presented.
    (2) Percentages rounded to two decimal places.


SOURCE Aircastle Limited

 
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