Aircastle Announces Fourth Quarter and Full Year 2008 Results
Fourth Quarter Highlights
- Total revenues of
$157.8 million and net income of $24.7 million, or $0.32 per diluted share - Adjusted net income(1) of
$46.6 million, or $0.60 per diluted share - Adjusted net income plus depreciation(1) of
$96.5 million, or $1.24 per diluted share - Weighted average fleet utilization was 98%
Full Year Highlights
- Total revenues of
$582.6 million and net income of $115.3 million, or $1.48 per diluted share - Adjusted net income(1) of
$150.9 million, or $1.94 per diluted share - Adjusted net income plus depreciation(1) of
$352.6 million, or $4.53 per diluted share - Completed the sale of eight aircraft resulting in gain and end of lease maintenance revenue totaling
$12.4 million, generating proceeds of $56.2 million after debt repayment - Entire owned aircraft portfolio long-term financed
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(1) Refer to the selected financial information accompanying this press release for a reconciliation of GAAP to Non-GAAP numbers.
STAMFORD, Conn.,
Fourth quarter total revenues were
Total revenues for the year were
Aircastle CEO
CFO
Aviation Assets
As of
Owned
Aircraft
as of
Sterling Airlines A/S ceased operations as of
Conference Call
In connection with this earnings release, management will host an earnings conference call on
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
About
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 "anticipate(s)," "expect(s)," "intend(s)," "plan(s)," "target(s)," "project(s)," "predict(s)," "believe(s)," "may," "will," "would," "could," "should," "seek(s)," "estimate(s)" 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 and Subsidiaries
Consolidated Balance Sheets
(Dollars in thousands, except share data)
December 31,
2007 2008
---- ----
ASSETS
Cash and cash equivalents $13,546 $80,947
Accounts receivable 4,957 3,161
Debt investments 113,015 14,349
Restricted cash and cash equivalents 161,317 182,623
Flight equipment held for lease, net of
accumulated depreciation
of $189,737 and $371,591 3,807,116 3,837,543
Aircraft purchase deposits and progress
payments 245,331 68,923
Leasehold improvements, furnishings and
equipment, net of accumulated depreciation
of $1,335 and $1,999 1,391 1,174
Other assets 80,969 62,852
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Total assets $4,427,642 $4,251,572
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LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES
Borrowings under credit facilities $798,186 $-
Borrowings from securitizations and term
debt financings 1,677,736 2,476,296
Accounts payable, accrued expenses and
other liabilities 65,967 60,789
Dividends payable 55,004 7,862
Lease rentals received in advance 31,016 28,463
Repurchase agreements 67,744 -
Security deposits 74,661 65,307
Maintenance payments 208,363 224,288
Fair value of derivative liabilities 154,388 276,401
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Total liabilities 3,133,065 3,139,406
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Commitments and Contingencies
SHAREHOLDERS' EQUITY
Preference shares,
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 Year Ended
------------------ ----------
December 31, December 31,
------------ ------------
2007 2008 2007 2008
---- ---- ---- ----
Net income $35,265 $24,739 $127,344 $115,291
Depreciation 42,025 49,919 126,403 201,759
Amortization of net lease
discounts and lease incentives (706) 5,114 (7,379) (1,815)
Interest, net 29,509 57,087 92,660 203,529
Income tax provision 2,723 2,879 7,658 7,541
Earnings from discontinued
operations, net of income taxes (1,347) - (12,941) -
-------- -------- -------- --------
EBITDA $107,469 $139,738 $333,745 $526,305
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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 Year Ended
-------------------- -----------------
December 31, December 31,
------------- ---------------
2007 2008 2007 2008
---- ---- ---- ----
Net income $35,265 $24,739 $127,344 $115,291
Ineffective portion and
termination of cash flow
hedges(1) 120 12,014 171 29,589
Write-off of deferred
financing fees(1) - - - 813
Mark to market adjustment on
undesignated derivatives(2) - 10,504 (1,154) 11,446
Loss on sale of debt
investments(2) - - - 245
Gain on sale of flight
equipment(3) - (627) (10,219) (6,525)
-------- -------- -------- --------
Adjusted net income 35,385 46,630 116,142 150,859
Depreciation 42,025 49,919 126,403 201,759
Depreciation included in
discontinued operations - - 761 -
-------- -------- --------- ---------
Adjusted net income plus
depreciation $77,410 $96,549 $243,306 $352,618
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(1) Included in Interest, net
(2) Included in Other income (expense)
(3) 2008 amounts included in Other income (expense); 2007 amounts
included in Discontinued operations
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 trends in our performance net of non-recurring items.
We use adjusted net income plus depreciation 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.
SOURCE:
CONTACT:
+1-203-504-1063
Web Site:
http://www.aircastle.com
