November 4, 2014
Aircastle reports third quarter 2014 results
Aircastle’s third quarter of 2014 lease rental and finance lease revenues were $180.3m, up $15.1m, or 9% year over year, due primarily to the $43.3m impact of aircraft acquisitions, offset by $21.1m of lower revenues due to aircraft dispositions. Total revenues for the third quarter were $177.6m, an increase of $7.5m, or 4% above the previous year. This increase was driven by $15.1m in higher lease rental and finance lease revenue and $8.7m in lower amortization of net lease discounts and incentives. These improvements were offset by lower maintenance revenue of $17.1m. During the third quarter of 2014, in connection with its annual fleet review, Aircastle shortened the expected lives and reduced the residual values of two MD-11 freighter aircraft and recorded impairment charges of $20.4m. Adjusted EBITDA for the third quarter was $177.4m, up $8.2m, or 5% from the third quarter of 2013. The increase was driven by higher lease rental and finance lease revenue of $15.1m, and higher gain on sale of flight equipment of $8.3m and other revenue and joint venture income of $1.8m. These improvements were offset by lower maintenance revenue of $17.1m. Net income for the third quarter was $19.2m, up $93.7m. The improvement was due primarily to non-cash aircraft impairment charges associated with our annual fleet review decreasing by $85.7m in the third quarter of 2014 versus the prior year.