AeroCentury reports fourth quarter net loss of US$3.8 million

Aircraft Leasing Company AeroCentury has reported a fourth quarter net loss of US$3.8 million compared to a net loss of US$4.5 million for the third quarter of 2018 and net income of US$6.0 million for the fourth quarter of 2017. Fourth quarter 2018 results reflect the combined operations of AeroCentury and its newly acquired subsidiary, JetFleet Holding (JetFleet), which was acquired on October 1, 2018. Fourth quarter 2017 results included a US$5.4 million tax benefit from the revaluation of the Company’s deferred tax liability caused by the passage of the Tax Cuts and Jobs Act of 2017.

Net loss for the year ended December 31, 2018, was US$8.1 million, as compared to net income of US$7.4 million in 2017.

The results for the fourth quarter and the year ended December 31, 2018, included a settlement loss of US$2.5 million in connection with the acquisition of JetFleet., the parent of the management company for the Company, which closed on October 1, 2018. The 2018 fourth quarter and full year results also included US$1.0 million and US$3.4 million, respectively, of net losses related to the sale of off-lease, older turboprop aircraft. The 2018 full year results also included impairment provisions totaling US$3.0 million on five off-lease turboprop aircraft that were identified for sale, two of which were sold during the year, as well as US$1.6 million of maintenance reserves revenue resulting from payments received from a lessee that returned three leased aircraft to the Company in 2017 which payments the Company has recorded as they were received.

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