AeroCentury Corp. Reports Second Quarter 2012 Results

BURLINGAME, Calif., Aug. 10, 2012 /PRNewswire/ -- AeroCentury Corp. (NYSE Amex: ACY), an independent aircraft leasing company, today reported its operating results for the second quarter ended June 30, 2012.

The Company reported net income of $1.0 million, or $0.61 per diluted share, for the second quarter of 2012, compared to a net loss of $0.1 million, or ($0.10) per diluted share, for the second quarter of 2011.  The Company reported net income of $2.3 million, or $1.47 per diluted share, for the six months ended June 30, 2012, compared to a net loss of $2.4 million, or ($1.57) per diluted share, for the six months ended June 30, 2011. 

Total revenues were $7.5 million and $14.3 million for the second quarter and six months ended June 30, 2012, respectively, compared with total revenues of $6.8 million and $11.7 million for the same periods a year ago.  The year-to-year increases were primarily due to increases in operating lease revenue and maintenance reserves revenue resulting from higher average utilization of the Company's asset portfolio in the 2012 periods and revenue from assets purchased since June 30, 2011.  In addition, the 2011 periods included reductions in operating lease revenue and maintenance reserves revenue due to uncertainty about the collectability of the related receivables.  The net increases in operating lease revenue and maintenance reserves were partially offset by a lower gain on sale of aircraft in the 2012 periods compared to the 2011 periods.

Total expenses decreased by approximately $0.9 million and $4.5 million in the second quarter and six months of 2012 as compared to the same periods in 2011, resulting primarily from a year-over-year decrease in maintenance expense, the effect of which was partially offset by an increase in interest expense. During the 2011 period, the Company incurred significant maintenance expense, funded by non-refundable maintenance reserves, on aircraft returned to the Company during 2010.  Interest expense was higher in the 2012 periods, primarily as a result of a higher fee amortization related to the Company's credit facility, which was extended for one year in March 2012, and a higher average credit facility balance in 2012 as a result of aircraft acquisitions.

AeroCentury is an aircraft operating lessor and finance company specializing in leasing regional aircraft and engines utilizing triple net leases. The Company's aircraft and engines are leased to regional airlines and commercial users worldwide.

(see tables following)

AeroCentury Corp.

Selected Financial Information

(in thousands, except share and per share data)





For the Three Months

Ended June 30,

For the Six Months

Ended June 30,


2012

2011

2012

2011


(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

Revenues and other income:










Operating lease revenue

$5,689

$4,662

$11,596

$  8,867

Maintenance reserves revenue

913

635

1,763

1,175

Gain on disposal of assets

874

1,371

874

1,371

Other income

27

87

54

237


7,503

6,755

14,287

11,650

Expenses:










Maintenance costs

1,613

2,940

2,367

7,508

Depreciation

1,493

1,423

2,980

2,662

Interest

1,153

966

2,225

1,933

Management fees

1,007

931

1,993

1,876

Professional fees and other

790

740

1,258

1,355


6,056

7,000

10,823

15,334






Income/(loss) before income tax provision/(benefit)

1,447

(245)

3,464

(3,684)






Income tax provision/(benefit)

487

(96)

1,179

(1,256)






Net income/(loss)

$   960

$   (149)

$  2,285

$(2,428)






Earnings/(loss) per share:





  Basic

$  0.62

$  (0.10)

$    1.48

$  (1.57)

  Diluted

$  0.61

$  (0.10)

$    1.47

$  (1.57)






Weighted average shares used in earnings per share computations:





  Basic

1,543,257

1,543,257

1,543,257

1,543,257

  Diluted

1,563,580

1,543,257

1,557,810

1,543,257









Summary Balance Sheet:

June 30,

2012

December 31,

2011

June 30,

2011


(Unaudited)

(Audited)

(Unaudited)

Total assets

$154,399

$130,826

$129,162

Total liabilities

$111,423

$ 90,136

$ 89,449

Stockholders' equity

$ 42,976

$ 40,690

$ 39,713

 

SOURCE AeroCentury Corp.



RELATED LINKS
http://www.aerocentury.com

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