Aircastle Limited
Nov 4, 2014
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Aircastle Announces Third Quarter 2014 Results

Quarterly Dividend Increased 10% to $0.22 per Share, and $100 Million Share Repurchase Authorization Approved by Aircastle's Board of Directors

STAMFORD, Conn., Nov. 4, 2014 /PRNewswire/ --

Highlights

  • Lease rental and finance lease revenues of $180.3 million, and Adjusted EBITDA1 of $177.4 million
  • Net income of $19.2 million, or $0.24 per diluted common share
  • Adjusted net income1 of $26.5 million, or $0.33 per diluted common share
  • Completed more than $1 billion of aircraft investments through the third quarter of 2014; more than $750 million of additional acquisitions expected to close by the end of Q1 2015
  • Sold eleven aircraft to third parties during the third quarter for proceeds of $201 million and a net pre-tax contribution of $11.4 million; also sold a 777-300ER on lease with LATAM to our joint venture with Ontario Teachers' Pension Plan
  • Fleet utilization of 100% with an aircraft portfolio yield of 13.2% and net cash interest margin of 9.9%
  • Increased the common dividend by 10%, to $0.22 per share; our 34th consecutive quarterly dividend declared
  • Board of Directors approved a $100 million share repurchase authorization

Aircastle Limited (the "Company" or "Aircastle") (NYSE: AYR) reported third quarter 2014 net income of $19.2 million, or $0.24 per diluted common share, and adjusted net income of $26.5 million, or $0.33 per diluted common share.  The third quarter results included lease rental and finance lease revenues of $180.3 million versus $165.3 million in the third quarter of 2013. 

Commenting on the results, Ron Wainshal, Aircastle's CEO, stated, "During the third quarter, we recorded 9% lease rental revenue growth while increasing our net cash interest margin to 9.9%, among the highest in the industry.  This strong performance demonstrates our success in improving Aircastle's portfolio through an active mix of acquisitions, sales and lease placements.  Aircastle completed more than $1 billion of aircraft acquisitions in the first three quarters of 2014, and we've built a substantial new investment pipeline to support strong and accretive growth.  We also sold 35 aircraft and designated two 747 freighters for sale for a net contribution of over $23 million as we exit older technology models." 

Mr. Wainshal continued, "We've been taking advantage of favorable market conditions to position the company for profitable growth and on a path towards obtaining investment grade ratings.  As market conditions evolve, we intend to remain disciplined investors with a flexible and nimble approach to aircraft acquisitions, focusing on situations that provide our shareholders with stable and attractive returns.  We remain committed to generating sustainable cash flow and allocating capital efficiently between value-enhancing investments and returning capital to shareholders.  To that end, our Board increased the quarterly dividend by 10%, to $0.22 per share, and authorized a $100 million repurchase program."   

1

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

Third Quarter Results

Third quarter of 2014 lease rental and finance lease revenues were $180.3 million, up $15.1 million, or 9% year over year, due primarily to the $43.3 million impact of aircraft acquisitions, offset by $21.1 million of lower revenues due to aircraft dispositions. 

Total revenues for the third quarter were $177.6 million, an increase of $7.5 million, or 4% above the previous year.  This increase was driven by $15.1 million in higher lease rental and finance lease revenue and $8.7 million in lower amortization of net lease discounts and incentives.1  These improvements were offset by lower maintenance revenue of $17.1 million.2 

During the third quarter of 2014, in connection with our annual fleet review, we shortened the expected lives and reduced the residual values of two MD-11 freighter aircraft and recorded impairment charges of $20.4 million, or $0.25 per diluted common share.

Adjusted EBITDA for the third quarter was $177.4 million, up $8.2 million, or 5% from the third quarter of 2013.  The increase was driven by higher lease rental and finance lease revenue of $15.1 million, and higher gain on sale of flight equipment of $8.3 million and other revenue and joint venture income of $1.8 million.  These improvements were offset by lower maintenance revenue of $17.1 million.

Net income for the third quarter was $19.2 million, up $93.7 million.  The improvement was due primarily to non-cash aircraft impairment charges associated with our annual fleet review decreasing by $85.7 million in the third quarter of 2014 versus the prior year.  In addition, total revenues increased $7.5 million, while gains from the sale of flight equipment were $8.3 million higher.  These improvements were offset by higher depreciation expense of $5.1 million from fleet net book value growth, and higher income tax expense of $4.1 million

Adjusted net income for the quarter was $26.5 million, up $95.6 million year over year, and reflects lower aircraft impairment charges of $85.7 million, higher total revenues of $7.5 million, higher gains on sale of flight equipment of $8.3 million and lower adjusted interest and maintenance expenses of $4.3 million.  These improvements were offset by higher depreciation of $5.1 million, higher taxes of $4.1 million and lower other income of $0.9 million.

1 

 

The lower amortization was due to a lease incentive reversal of $5.3 million related to maintenance work which will not be performed during the lease.



2

 

 

Driven by $12.1 million from an unscheduled lease termination in the third quarter of 2013 and $8.7 million of contra-maintenance revenue in the third quarter of 2014, related to engine restoration work completed by a lessee prior to the scheduled return of two 737-800 aircraft.

Aviation Assets

During the first nine months of the year, we acquired 14 aircraft for more than $1.0 billion.  Since the end of the third quarter, we have acquired or expect to acquire, prior to the end of the first quarter of 2015, three wide-body and 18 narrow-body aircraft for more than $750 million.

During the first nine months of 2014, we sold 34 aircraft to third parties for total proceeds of $447 million.  These sold aircraft had a weighted average age of approximately 17 years and included five freighter and eleven older technology aircraft.  During the third quarter of 2014, we sold eleven aircraft to third parties and one 777-300ER aircraft on lease with LATAM to our joint venture with Ontario Teachers' Pension Plan.  As with the prior transactions with our joint venture, this sale allows us to manage exposures and pursue larger transactions while also enhancing our return on equity.

As of September 30, 2014, Aircastle owned 140 aircraft having a net book value of $5.3 billion.


Owned

Aircraft as of

September 30,

2013(1)

Owned

Aircraft as of

September 30

2014(1)

Flight Equipment Held for Lease ($ mils.)

$       5,086

$     5,304

Unencumbered Flight Equipment ($ mils.)

$       2,712

$     2,924

Number of Aircraft

161

140

Number of Unencumbered Aircraft

80

85

Passenger Aircraft (% of NBV)

80%

84%

Freighter Aircraft (% of NBV)

20%

16%

Weighted Average Fleet Age - Combined (years)(2)

10.0

8.6

Weighted Average Remaining Combined Lease Term (years)(3)

5.1

5.0

Weighted Average Fleet Utilization for the three months ended(4)

100%

100%

Portfolio Yield for the three months ended(5)

13.7%

13.2%

Net Cash Interest Margin(6)

9.6%

9.9%

 

(1)

Calculated using net book value of flight equipment held for lease and net investment in finance leases at period end.

(2)

Weighted average age by net book value.

(3)

Weighted average remaining lease term by net book value.

(4)

Aircraft on-lease days as a percent of total days in period weighted by net book value.

(5)

 

Lease rental revenue for the period as a percent of the average net book value of flight equipment held for lease for the period; quarterly information is annualized.

(6)

 

 

Net Cash Interest Margin = Lease rental yield minus interest on borrowings, net of settlements on interest rate derivatives, and other liabilities  / average NBV of flight equipment for the period calculated on a quarterly basis, annualized. 

Common Dividend

On October 31, 2014, Aircastle's Board of Directors declared a fourth quarter 2014 cash dividend on its common shares of $0.22 per share, payable on December 15, 2014 to shareholders of record on November 28, 2014.  This is a 10% increase over the previous quarter's cash dividend and represents the fifth dividend increase since 2010.

Share Repurchase Authorization

On October 31, 2014, the Company's Board of Directors authorized the repurchase of up to $100 million of the Company's 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 Company's common shares, trading volume and general market conditions.

Conference Call

In connection with this earnings release, management will host an earnings conference call on Tuesday, November 4, 2014 at 10:00AM Eastern time.  All interested parties are welcome to participate on the live call.  The conference call can be accessed by dialing (800) 768-6563 (from within the U.S. and Canada) or (785) 830-7991 (from outside of the U.S. and Canada) ten minutes prior to the scheduled start and referencing the passcode "1608678".

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 one month following the call.  In addition to this earnings release, an accompanying power point presentation has been posted to the Investor Relations section of Aircastle's website.

For those who are not available to listen to the live call, a replay will be available until 12:00PM Eastern time on Thursday, December 4, 2014 by dialing (888) 203-1112 (from within the U.S. and Canada) or (719) 457-0820 (from outside of the U.S. and Canada); please reference passcode "1608678".

About Aircastle Limited

Aircastle Limited acquires, leases and sells commercial jet aircraft to airlines throughout the world.  As of September 30, 2014, Aircastle's aircraft portfolio consisted of 140 aircraft on lease with 61 customers located in 37 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 proposed public offering of notes and our ability to acquire, sell, lease or finance aircraft, raise capital, pay dividends, and increase revenues, earnings, EBITDA, Adjusted EBITDA, Adjusted Net Income 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 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's expectations include, but are not limited to, capital markets disruption or volatility which could adversely affect our continued ability to obtain additional capital to finance new investments or our working capital needs; government fiscal or tax policies, general economic and business conditions or other factors affecting demand for aircraft or aircraft values 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 caused by political unrest and other factors affecting the creditworthiness of our airline customers and their ability to continue to perform their obligations under our leases and other risks detailed from time to time in Aircastle's filings with the SEC, including as previously disclosed in Aircastle's 2013 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)



December 31,
 2013


September 30,
 2014





(Unaudited)

ASSETS






Cash and cash equivalents

$

654,613



$

474,338


Accounts receivable

2,825



3,896


Restricted cash and cash equivalents

122,773



114,392


Restricted liquidity facility collateral

107,000



65,000


Flight equipment held for lease, net of accumulated depreciation of $1,430,325 and $1,350,950

5,044,410



5,232,940


Net investment in finance leases

145,173



70,723


Unconsolidated equity method investment

21,123



30,501


Other assets

153,976



175,454


Total assets

$

6,251,893



$

6,167,244








LIABILITIES AND SHAREHOLDERS' EQUITY






LIABILITIES






Borrowings from secured financings (including borrowings of ACS Ireland VIEs of $152,545 and $78,418, respectively)

$

1,586,835



$

1,485,033


Borrowings from unsecured financings

2,150,527



2,200,000


Accounts payable, accrued expenses and other liabilities

111,661



162,970


Lease rentals received in advance

49,235



48,027


Liquidity facility

107,000



65,000


Security deposits

118,804



125,765


Maintenance payments

442,432



422,157


Fair value of derivative liabilities

39,992



3,090


Total liabilities

4,606,486



4,512,042








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, 80,806,975 shares issued and outstanding at December 31, 2013; and 80,949,219 shares issued and outstanding at September 30, 2014

808



809


Additional paid-in capital

1,562,106



1,563,685


Retained earnings

158,398



137,858


Accumulated other comprehensive loss

(75,905)



(47,150)


Total shareholders' equity

1,645,407



1,655,202


Total liabilities and shareholders' equity

$

6,251,893



$

6,167,244


 

Aircastle Limited and Subsidiaries

Consolidated Statements of Income

(Dollars in thousands, except per share amounts)

(Unaudited)



Three Months Ended

September 30,


Nine Months Ended

September 30,


2013


2014


2013


2014

Revenues:












Lease rental revenue

$

161,148



$

178,886



$

475,656



$

536,452


Finance lease revenue

4,122



1,463



12,120



9,347


Amortization of lease premiums, discounts and lease incentives

(9,737)



(1,075)



(25,527)



(7,252)


Maintenance revenue (including contra maintenance revenue of $0
and $8,655 for the three months ended and $0 and $25,037 for the
nine months ended September 30, 2013 and 2014, respectively)

12,932



(4,189)



42,983



35,035


Total lease revenue

168,465



175,085



505,232



573,582


Other revenue

1,625



2,511



11,425



6,763


Total revenues

170,090



177,596



516,657



580,345














Operating expenses:












Depreciation

70,469



75,519



212,448



225,230


Interest, net

57,843



56,794



183,651



181,551


Selling, general and administrative (including non-cash share based payment expense of $1,067 and $949 for the three months ended and $2,931 and $3,167 for the nine months ended September 30, 2013 and 2014, respectively)

12,830



13,817



39,297



41,818


Impairment of Aircraft

106,136



20,436



112,335



67,005


Maintenance and other costs

1,914



713



11,464



5,222


Total expenses

249,192



167,279



559,195



520,826














Other income (expense):












Gain on sale of flight equipment

3,092



11,390



25,601



13,384


Loss on extinguishment of debt







(36,570)


Other

855



1



5,016



758


Total other income (expense)

3,947



11,391



30,617



(22,428)














Income (loss) from continuing operations before income taxes

(75,155)



21,708



(11,921)



37,091


Income tax provision

(597)



3,484



6,719



10,925


Earnings of unconsolidated equity method investment, net of tax



927





1,898


Net income (loss)

$

(74,558)



$

19,151



$

(18,640)



$

28,064














Earnings per common share — Basic:












Net income (loss) per share

$

(0.95)



$

0.24



$

(0.26)



$

0.35














Earnings per common share — Diluted:












Net income (loss) per share

$

(0.95)



$

0.24



$

(0.26)



$

0.35














Dividends declared per share

$

0.165



$

0.200



$

0.495



$

0.600


 


Aircastle Limited and Subsidiaries

Consolidated Statements of Comprehensive Income

(Dollars in thousands)

(Unaudited)



Three Months Ended

September 30,


Nine Months Ended

September 30,


2013


2014


2013


2014













Net income (loss)

$

(74,558)



$

19,151



$

(18,640)



$

28,064


Other comprehensive income, net of tax:












Net change in fair value of derivatives, net of tax expense of
$78 and $21 for the three months ended and $389 and $825 for
the nine months ended September 30, 2013 and 2014,
respectively

1,798



1,643



13,751



2,025


Net derivative loss reclassified into earnings

7,300



8,549



25,285



26,730


Other comprehensive income

9,098



10,192



39,036



28,755


Total comprehensive income (loss)

$

(65,460)



$

29,343



$

20,396



$

56,819


 

Aircastle Limited and Subsidiaries

Consolidated Statements of Cash Flows

(Dollars in thousands)

(Unaudited)



Nine Months Ended

September 30,


2013


2014

Cash flows from operating activities:






Net income (loss)

$

(18,640)



$

28,064


Adjustments to reconcile net income to net cash provided by operating activities:






Depreciation

212,448



225,230


Amortization of deferred financing costs

11,757



10,493


Amortization of net lease discounts and lease incentives

25,527



7,252


Deferred income taxes

3,419



(2,623)


Non-cash share based payment expense

2,931



3,167


Cash flow hedges reclassified into earnings

25,285



26,730


Security deposits and maintenance payments included in earnings

(32,047)



(38,257)


Gain on sale of flight equipment

(25,601)



(13,384)


Loss on extinguishment of debt



36,570


Impairment of aircraft

112,335



67,005


Other

(4,284)



(2,278)


Changes in certain assets and liabilities:






Accounts receivable

1,588



(1,603)


Other assets

1,155



(1,691)


Accounts payable, accrued expenses and other liabilities

7,978



17,138


Lease rentals received in advance

(4,538)



4,162


Net cash provided by operating activities

319,313



365,975


Cash flows from investing activities:






Acquisition and improvement of flight equipment and lease incentives

(837,183)



(939,651)


Proceeds from sale of flight equipment

285,199



563,882


Restricted cash and cash equivalents related to sale of flight equipment

(2,200)



(24,606)


Aircraft purchase deposits and progress payments

(5,655)



1,315


Net investment in finance leases

(11,595)



(14,258)


Collections on finance leases

6,658



8,096


Unconsolidated equity method investment and associated costs



(8,592)


Distributions from unconsolidated equity method investment in excess of earnings



997


Principal repayments on debt investment

42,001




Other

(852)



(466)


Net cash used in investing activities

(523,627)



(413,283)


Cash flows from financing activities:






Issuance of shares net of repurchases

197,478



(2,092)


Proceeds from notes and term debt financings

78,230



803,200


Securitization and term debt financing repayments

(430,482)



(895,459)


Debt extinguishment costs



(32,835)


Deferred financing costs

(2,910)



(15,843)


Restricted secured liquidity facility collateral



42,000


Secured liquidity facility collateral



(42,000)


Restricted cash and cash equivalents related to financing activities

(77,701)



32,987


Security deposits and maintenance payments received

154,303



131,136


Security deposits and maintenance payments returned

(58,776)



(72,030)


Payments for terminated cash flow hedges



(33,427)


Dividends paid

(35,895)



(48,604)


Net cash used in financing activities

(175,753)



(132,967)


Net increase (decrease) in cash and cash equivalents

(380,067)



(180,275)


Cash and cash equivalents at beginning of period

618,217



654,613


Cash and cash equivalents at end of period

$

238,150



$

474,338


 

Aircastle Limited and Subsidiaries

Supplemental Financial Information

(Amount in thousands, except per share amounts)

(Unaudited)



Three Months Ended

September 30,


Nine Months Ended

September 30,


2013


2014


2013


2014









Revenues

$ 170,090


$ 177,596


$ 516,657


$ 580,345









EBITDA

$   62,894


$ 156,023


$ 409,705


$ 453,022









Adjusted EBITDA

$ 169,242


$ 177,408


$ 521,244


$ 559,083









Adjusted net income (loss)

$ (69,091)


$  26,545


$     4,361


$   87,497









Adjusted net income (loss) allocable to common shares

$ (69,091)


$  26,348


$     4,327


$  86,868

Per common share - Basic

$     (0.88)


$      0.33


$       0.06


$      1.08

Per common share - Diluted

$     (0.88)


$      0.33


$       0.06


$      1.08









Basic common shares outstanding

78,544


80,390


71,462


80,389

Diluted common shares outstanding

78,544


80,390


71,462


80,389



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 and Adjusted EBITDA Reconciliation

(Dollars in thousands)

(Unaudited)



Three Months Ended

September 30,


Nine Months Ended

September 30,


2013


2014


2013


2014


(Dollars in thousands)

Net income (loss)

$

(74,558)



$

19,151



$

(18,640)



$

28,064


Depreciation

70,469



75,519



212,448



225,230


Amortization of net lease discounts and lease incentives

9,737



1,075



25,527



7,252


Interest, net

57,843



56,794



183,651



181,551


Income tax provision

(597)



3,484



6,719



10,925


     EBITDA

$

62,894



$

156,023



$

409,705



$

453,022


Adjustments:












  Impairment of aircraft

106,136



20,436



112,335



67,005


  Loss on extinguishment of debt







36,570


  Non-cash share based payment expense

1,067



949



2,931



3,167


  Gain on mark to market of interest rate derivative contracts

(855)





(3,727)



(681)


     Adjusted EBITDA

$

169,242



$

177,408



$

521,244



$

559,083




We define EBITDA as income (loss) 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-US GAAP measure is helpful in identifying trends in our performance.




This measure provides an assessment of controllable expenses and affords management the ability to make decisions which are expected to facilitate meeting current financial goals as well as achieving optimal financial performance. It provides an indicator for management to determine if adjustments to current spending decisions are needed.




EBITDA provides us with a measure of operating performance because it assists us in comparing our operating performance on a consistent basis as it removes the impact of our capital structure (primarily interest charges on our outstanding debt) and asset base (primarily depreciation and amortization) from our operating results. Accordingly, this metric measures our financial performance based on operational factors that management can impact in the short-term, namely the cost structure, or expenses, of the organization. EBITDA is one of the metrics used by senior management and the board of directors to review the consolidated financial performance of our business.




We define Adjusted EBITDA as EBITDA (as defined above) further adjusted to give effect to adjustments required in calculating covenant ratios and compliance as that term is defined in the indenture governing our senior unsecured notes. Adjusted EBITDA is a material component of these covenants.


 

Aircastle Limited and Subsidiaries

Reconciliation of GAAP to Non-GAAP Measures

Adjusted Net Income Reconciliation

(Dollars in thousands)

(Unaudited)



Three Months Ended

September 30,


Nine Months Ended

September 30,


2013


2014


2013


2014


(Dollars in thousands)

Net income (loss)

$

(74,558)



$

19,151



$

(18,640)



$

28,064


Loss on extinguishment of debt(2)







36,570


Loan termination fee(1)





2,954




Ineffective portion and termination of hedges(1)

91



(21)



2,222



41


Gain on mark to market of interest rate derivative contracts(2)

(855)





(3,727)



(681)


Write-off of deferred financing fees(1)

150





3,975




Non-cash share based payment expense(3)

1,067



949



2,931



3,167


        Term Financing No. 1 hedge loss amortization charges(1)

4,591



3,601



13,478



11,544


        Securitization No. 1 hedge loss amortization charges (1)

423



2,865



1,168



8,792


Adjusted net income (loss)

$

(69,091)



$

26,545



$

4,361



$

87,497




(1) Included in Interest, net.


(2) Included in Other income (expense).


(3) Included in Selling, general and administrative expenses.


 

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

September 30, 2014


Nine Months Ended

September 30, 2014


Weighted-average shares:

Shares


Percent(2)


Shares


Percent(2)


Common shares outstanding - Basic

80,390


99.26%



80,389


99.28%


Unvested restricted common shares

601


0.74%



582


0.72%


Total weighted-average shares outstanding

80,991


100.00%



80,971


100.00%














Net income allocation












Net income

$19,151


100.00%



$28,064


100.00%


Distributed and undistributed earnings allocated to unvested restricted
shares

(142)


(0.74%)



(202)


(0.72%)


Earnings available to common shares

$19,009


99.26%



$27,862


99.28%














Adjusted net income allocation












Adjusted net income

$26,545


100.00%



$87,497


100.00%


Amounts allocated to unvested restricted shares

(197)


(0.74%)



(629)


(0.72%)


Amounts allocated to common shares

$26,348


99.26%



$86,868


99.28%














(1) For the three and nine months ended September 30, 2014 the company had no dilutive shares.

(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

September 30, 2013


Nine Months Ended

September 30, 2013


Weighted-average shares:

Shares


Percent(2)


Shares


Percent(2)


Common shares outstanding - Basic

78,544


99.15%


71,462


99.22%


Unvested restricted common shares

669


0.85%


563


0.78%


Total weighted-average shares outstanding

79,214


100.00%


72,025


100.00%












Net income allocation










Net (loss)

$(74,558)


100.00%


$(18,640)


100.00%


Distributed and undistributed earnings allocated to unvested restricted
shares


(0.00%)



(0.00%)


Earnings available to common shares

$(74,558)


100.00%


$(18,640)


100.00%












Adjusted net income allocation










Adjusted net income (loss)

$(69,091)


100.00%


$4,361


100.00%


Amounts allocated to unvested restricted shares


(0.00%)


(34)


(0.78%)


Amounts allocated to common shares

$(69,091)


100.00%


$4,327


99.22%













(1) For the three and six months ended September 30, 2013 the company had no dilutive shares.


(2) Percentages rounded to two decimal places.


 

Contact:
Frank Constantinople, SVP Investor Relations
Tel: +1-203-504-1063
fconstantinople@aircastle.com  

The IGB Group
Leon Berman
Tel: +1-212-477-8438
lberman@igbir.com

SOURCE Aircastle Limited

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