Aircastle Announces Second Quarter 2013 Results

               Aircastle Announces Second Quarter 2013 Results

Board Declares Third Quarter Dividend on Common Shares of $0.165

PR Newswire

STAMFORD, Conn., Aug. 6, 2013

STAMFORD, Conn., Aug.6, 2013 /PRNewswire/ -- 

Highlights

  oLease rental including finance lease revenues of $162.0 million and
    Adjusted EBITDA^1 of $183.4 million
  oNet income of $32.9 million, or $0.48 per diluted common share
  oAdjusted net income^1 of $46.0 million, or $0.67 per diluted common share
  oMore than $960 million of closed or committed aircraft investments year to
    date
  oEleven aircraft sold during the first half of 2013; second quarter gains
    on sale of $21.3 million
  oFleet utilization of 98% with an aircraft portfolio yield of 13.4%
  oIssued 12.3 million shares of common equity, at $17.00 per share, to
    Marubeni Corporation on July 12, 2013 for $209 million of gross proceeds
  oIncreased our unsecured revolving credit facility from $150 million to
    $335 million and expanded the size of the bank group to seven
  o29^th consecutive dividend declared by Aircastle's Board of Directors

Aircastle Limited (the "Company" or "Aircastle") (NYSE: AYR) reported second
quarter 2013 net income of $32.9 million, or $0.48 per diluted common share,
and adjusted net income of $46.0 million, or $0.67 per diluted common share.
The second quarter results included lease rental and finance lease revenues of
$162.0 million versus $154.6 million in the second quarter of 2012.

Commenting on the results, Ron Wainshal, Aircastle's CEO, stated: "Aircastle's
second quarter financial results were very good, reflecting strong portfolio
performance and effective asset management. I'm particularly encouraged by
our acquisition activity, where we have been able to find attractive
investment values consistent with our disciplined approach and return
targets. In that regard, the majority of our recent investments have been
for new wide-body aircraft on long-term leases with high quality lessees, and
this is gradually transforming and enhancing the mix of our portfolio. We're
in an excellent position to capitalize on our team's transaction origination
capabilities with the new capital we've sourced." Mr. Wainshal added, "We're
extremely pleased to welcome Marubeni as an important new strategic
shareholder. Marubeni brings a long-term, globally minded perspective to our
business and we believe there are exciting business opportunities for us as we
work together." 

Mike Inglese, Aircastle's CFO, stated: "We continue to broaden and diversify
our funding sources to strengthen Aircastle's overall liquidity profile. Our
enlarged unsecured revolving credit facility, along with the recent Marubeni
transaction, complements our capital markets and export credit agency funding
sources, strengthening our already deep access to capital."

Second Quarter Results

Lease rental and finance lease revenues for the second quarter were $162.0
million, up $7.5 million or 5% year over year, due primarily to the impact of
aircraft acquisitions of $26.1 million, partially offset by lower revenues due
to aircraft dispositions of $9.5 million and from the effect of lease
extensions, transitions and terminations of $9.1 million.

Total revenues for the second quarter were $170.4 million, a decrease of $1.8
million, or 1% versus the previous year. This was primarily due to the
amortization of lease premiums, discounts and lease incentives being $10.8
million higher in 2013. In the second quarter of 2012, lease incentive
amortization was driven lower by lease incentive reversals resulting from
early lease terminations. This revenue decrease was partially offset by $7.5
million of higher lease rental and finance lease revenue, and $1.8 million of
higher other revenues, primarily early lease termination fees relating to an
aircraft that transitioned during the quarter. 

Adjusted EBITDA for the second quarter was $183.4 million, up $26.3 million or
17% from the second quarter of 2012. The increase was primarily driven by
higher lease rental and finance lease revenue of $7.5 million, higher gain on
the sale of flight equipment of $18.5 million, and higher other revenue of
$1.8 million. The second quarter gain on sale included the disposition of
three A330-200 freighter aircraft.

Net income for the second quarter was $32.9 million, up $16.5 million, or
101%. The increase was primarily due to higher gains from the sale of
aircraft of $18.5 million and lower aircraft impairment charges of $10.1
million. These improvements were partially offset by higher depreciation of
$5.0 million, higher interest expense of $2.5 million, a higher tax provision
of $2.4 million and lower total revenues of $1.8 million.

Adjusted net income for the quarter was $46.0 million, up $20.3 million year
over year, and reflects higher gain on sale of $18.5 million, lower non-cash
impairment charges of $10.1 million, and lower adjusted interest of $1.1
million. Partially offsetting these increases were higher depreciation of
$5.0 million, a higher tax provision of $2.4 million and higher SG&A of $1.5
million.

Aviation Assets

To date, we have closed or committed to acquire 17 aircraft for more than $960
million in 2013. During the first half of the year, we acquired ten aircraft
for more than $450 million, including nine aircraft in the second quarter. In
addition, during the first half of the year we sold eleven aircraft, including
three A330-200 freighter aircraft and eight older aircraft with a total net
book value of approximately $250 million.

As of June 30, 2013, Aircastle owned 158 aircraft having a net book value of
$4.8 billion.

                                                                Owned

                                                                Aircraft as of

                                                                June 30,

                                                                2013^(1)
                                                                    

Flight Equipment Held for Lease ($ mils.)                       $     4,779
                                                                    

Unencumbered Flight Equipment. ($ mils.)                        $     2,346
                                                               

Number of Aircraft                                              158
                                                               

Number of Unencumbered Aircraft                                 76
                                                               

Passenger Aircraft (% of NBV)                                   77%
                                                               

Freighter Aircraft (% of NBV)                                   23%
                                                               

Weighted Average Fleet Age – Combined (years)^(^2^)             10.8
                                                               

Weighted Average Remaining Combined Lease Term (years)^(^3^)    4.7
                                                               

Weighted Average Fleet Utilization for the Three Months         98%
Ended^(^4^)
                                                               

Portfolio Yield for the Three Months Ended^(5)                  13.4%

(1) Calculated using net book value of flight equipment held for lease,
net investment in finance leases and flight equipment held for sale at period
end.
(2) Weighted average age (years) by net book value.
(3) Weighted average remaining lease term (years) 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.

Common Share Purchase by Marubeni Corporation

On July 12, 2013, we successfully completed the issuance to Marubeni
Corporation of 12,320,000 common shares, representing 15.25% of Aircastle's
issued and outstanding common shares, after giving effect to the issuance, at
a price of $17.00 per share, for gross proceeds of approximately $209 million.

Financing Update

In early August we increased our unsecured revolving credit facility from $150
million to $335 million. We also expanded the bank group from four to seven
global financial institutions and extended the maturity of the facility to a
three year term to expire in August 2016. The bank group includes Citibank,
N.A., Goldman Sachs Bank USA, J.P. Morgan Chase Bank N.A., Royal Bank of
Canada, Credit Agricole Corporate & Investment Bank, DBS Bank Ltd., Los
Angeles Agency, and Union Bank, N.A.

Common Dividend and Share Repurchases

On August 2, 2013, Aircastle's Board of Directors declared a third quarter
2013 cash dividend on its common shares of $0.165 per share, payable on
September 13, 2013 to shareholders of record on August 30, 2013.

Since early 2011, we have repurchased 11.7 million common shares at an average
cost of $11.87 per share, and we continue to have $30 million remaining under
the current repurchase authorization.

Conference Call

In connection with this earnings release, management will host an earnings
conference call on Tuesday, August 6, 2013 at 10:30AM Eastern time. All
interested parties are welcome to participate on the live call. The
conference call can be accessed by dialing (800) 575-5790 (from within the
U.S. and Canada) or (719) 457-2638 (from outside of the U.S. and Canada) ten
minutes prior to the scheduled start and referencing the passcode "7828965".

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 12:30PM Eastern time on Thursday, September 5, 2013 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 "7828965".

About Aircastle Limited

Aircastle Limited acquires, leases and sells high-utility commercial jet
aircraft to airlines throughout the world. As of June 30, 2013, Aircastle's
aircraft portfolio consisted of 158 aircraft on lease with 67 customers
located in 36 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 ability to acquire, sell,
lease or finance aircraft, raise capital, pay dividends, and increase
revenues, earnings, EBITDA, Adjusted EBITDA and 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 report. 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 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 in
North Africa, the Middle East or elsewhere, and other factors affecting the
creditworthiness of our airline customers and their ability to continue to
perform their obligations under our leases; termination payments on our
interest rate hedges; and other risks detailed from time to time in
Aircastle's filings with the SEC, including as previously disclosed in
Aircastle's 2012 Annual Report on Form 10-K, and elsewhere in this report. 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 report. 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.

1. Refer to Supplemental Financial Information accompanying this press release
for a reconciliation of GAAP to non-GAAP numbers.

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

Aircastle Limited and Subsidiaries

Consolidated Balance Sheets

(Dollars in thousands, except share data)
                                                     December31,  June30,
                                                     2012          2013
                                                                   (Unaudited)
ASSETS
Cash and cash equivalents                            $  618,217    $ 430,270
Accounts receivable                                  5,625         6,025
Restricted cash and cash equivalents                 111,942       193,606
Restricted liquidity facility collateral             107,000       107,000
Flight equipment held for lease, net of accumulated  4,662,661     4,651,553
depreciation of $1,305,064 and $1,333,775
Net investment in finance leases                     119,951       127,504
Other assets                                         186,764       168,385
Total assets                                         $  5,812,160  $ 5,684,343
LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES
Borrowings from secured financings (including
borrowings of ACS Ireland VIEs of $207,926 and       $  1,848,034  $ 1,638,835
$176,599, respectively)
Borrowings from unsecured financings                 1,750,642     1,750,585
Accounts payable, accrued expenses and other         108,593       118,853
liabilities
Lease rentals received in advance                    53,189        45,011
Liquidity facility                                   107,000       107,000
Security deposits                                    87,707        104,455
Maintenance payments                                 379,391       400,162
Fair value of derivative liabilities                 61,978        46,946
Total liabilities                                    4,396,534     4,211,847
Commitments and Contingencies
SHAREHOLDERS' EQUITY
Preference shares, $.01par value, 50,000,000shares
authorized, no shares issued and outstanding
Common shares, $.01par value, 250,000,000shares
authorized, 68,639,729 shares issued and outstanding 686           685
at December31, 2012; and 68,460,299 shares issued
and outstanding at June 30, 2013
Additional paid-in capital                           1,360,555     1,354,135
Retained earnings                                    180,675       214,028
Accumulated other comprehensive loss                 (126,290)     (96,352)
Total shareholders' equity                           1,415,626     1,472,496
Total liabilities and shareholders' equity           $  5,812,160  $ 5,684,343



Aircastle Limited and Subsidiaries

Consolidated Statements of Income

(Dollars in thousands, except per share amounts)

(Unaudited)
                                    Three Months Ended    Six Months Ended
                                    June 30,
                                                          June 30,
                                    2012       2013       2012       2013
Revenues:
Lease rental revenue                $ 153,624  $ 157,918  $ 305,866  $ 314,508
Finance lease revenue               956        4,114      956        7,998
Amortization of lease premiums,     2,044      (8,709)    446        (15,790)
discounts and lease incentives
Maintenance revenue                 13,535     13,185     26,182     30,051
Total lease revenue                 170,159    166,508    333,450    336,767
Other revenue                       2,022      3,870      3,646      9,800
Total revenues                      172,181    170,378    337,096    346,567
Operating expenses:
Depreciation                        67,097     72,079     131,611    141,979
Interest, net                       64,121     66,656     113,102    125,808
Selling, general and administrative
(including non-cash share based
payment expense of $929 and $1,053
for the three months ended, and     11,511     13,182     24,709     26,467
$2,105 and $1,864 for the six
months ended June 30, 2012 and
2013, respectively)
Impairment of Aircraft              10,111     —          10,111     6,199
Maintenance and other costs         5,243      6,138      8,017      9,550
Total expenses                      158,083    158,055    287,550    310,003
Other income:
Gain on sale of flight equipment    2,855      21,317     3,051      22,509
Other                               717        2,946      604        4,161
Total other income                  3,572      24,263     3,655      26,670
Income from continuing operations   17,670     36,586     53,201     63,234
before income taxes
Income tax provision                1,346      3,732      4,275      7,316
Net income                          $ 16,324   $ 32,854   $ 48,926   $ 55,918
Earnings per common share — Basic:
Net income per share                $ 0.23     $ 0.48     $ 0.68     $ 0.82
Earnings per common share —
Diluted:
Net income per share                $ 0.23     $ 0.48     $ 0.68     $ 0.82
Dividends declared per share        $ 0.15     $ 0.165    $ 0.30     $ 0.330



Aircastle Limited and Subsidiaries

Consolidated Statements of Comprehensive Income

(Dollars in thousands)

(Unaudited)
                                        Three Months Ended  Six Months Ended
                                        June 30,
                                                            June 30,
                                        2012      2013      2012      2013
Net income                              $ 16,324  $ 32,854  $ 48,926  $ 55,918
Other comprehensive income, net of tax:
Net change in fair value of
derivatives, net of tax expense of $139
and $193 for the three months ended and 5,799     8,127     22,282    11,953
$428 and $311 for the six months ended,
June 30, 2012 and 2013, respectively
Net derivative loss reclassified into   8,866     9,711     12,937    17,985
earnings
Other comprehensive income              14,665    17,838    35,219    29,938
Total comprehensive income              $ 30,989  $ 50,692  $ 84,145  $ 85,856







Aircastle Limited and Subsidiaries

Consolidated Statements of Cash Flows

(Dollars in thousands)

(Unaudited)
                                                     Six Months Ended June 30,
                                                     2012           2013
Cash flows from operating activities:
Net income                                           $  48,926      $  55,918
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation                                         131,611        141,979
Amortization of deferred financing costs             7,691          8,781
Amortization of net lease discounts and lease        (446)          15,790
incentives
Deferred income taxes                                2,457          3,237
Non-cash share based payment expense                 2,105          1,864
Cash flow hedges reclassified into earnings          12,937         17,985
Ineffective portion of cash flow hedges              366            104
Security deposits and maintenance payments included  (25,818)       (25,538)
in earnings
Gain on sale of flight equipment                     (3,051)        (22,509)
Impairment of aircraft                               10,111         6,199
Other                                                (1,222)        (3,921)
Changes in certain assets and liabilities:
Accounts receivable                                  (4,434)        (410)
Other assets                                         (1,970)        4,834
Accounts payable, accrued expenses and other         12,183         (3,824)
liabilities
Lease rentals received in advance                    662            (7,050)
Net cash provided by operating activities            192,108        193,439
Cash flows from investing activities:
Acquisition and improvement of flight equipment and  (324,831)      (331,067)
lease incentives
Proceeds from sale of flight equipment               36,013         253,909
Restricted cash and cash equivalents related to sale 4,762          —
of flight equipment
Aircraft purchase deposits and progress payments     (23,955)       (1,869)
Net investment in finance leases                     (91,500)       (11,605)
Collections on finance leases                        1,476          4,052
Purchase of debt investment                          (43,626)       —
Principal repayments on debt investment              3,245          42,001
Other                                                (126)          (829)
Net cash used in investing activities                (438,542)      (45,408)
Cash flows from financing activities:
Repurchase of shares                                 (2,129)        (7,940)
Proceeds from notes and term debt financings         877,100        —
Securitization and term debt financing repayments    (688,424)      (294,064)
Deferred financing costs                             (17,710)       (557)
Restricted secured liquidity facility collateral     3,000          —
Secured liquidity facility collateral                (3,000)        —
Restricted cash and cash equivalents related to      104,887        (81,664)
financing activities
Security deposits received                           8,310          17,015
Security deposits returned                           (3,067)        (3,320)
Maintenance payments received                        62,496         87,772
Maintenance payments returned                        (27,020)       (30,655)
Payments for terminated cash flow hedges             (50,757)       —
Dividends paid                                       (21,712)       (22,565)
Net cash (used in) provided by financing activities  241,974        (335,978)
Net increase (decrease) in cash and cash equivalents (4,460)        (187,947)
Cash and cash equivalents at beginning of period     295,522        618,217
Cash and cash equivalents at end of period           $  291,062     $  430,270





Aircastle Limited and Subsidiaries

Supplemental Financial Information

(Amount in thousands, except per share amounts)

(Unaudited)
                             Three Months Ended        Six Months Ended

                             June 30,                  June 30,
                             2012         2013         2012        2013
Revenues                     $ 172,181    $ 170,378    $ 337,096   $ 346,567
EBITDA                       $ 146,844    $ 184,030    $ 297,468   $ 346,811
Adjusted EBITDA              $ 157,172    $ 183,426    $ 309,085   $ 352,002
Adjusted net income          $ 25,756    $ 46,040    $ 58,128    $ 73,452
Adjusted net income          $ 25,546    $ 45,615    $ 57,638    $ 72,906
allocable to common shares
Per common share - Basic     $   0.36  $   0.67  $   0.80  $   1.07
Per common share - Diluted   $   0.36  $   0.67  $   0.80  $   1.07
Basic common shares          71,723       67,829       71,710      67,863
outstanding
Diluted common shares        71,723       67,829       71,710      67,863
outstanding

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 June 30,  Six Months Ended June 30,
                        2012           2013          2012           2013
                        (Dollars in thousands)
Net income              $  16,324      $  32,854     $  48,926      $  55,918
Depreciation            67,097         72,079        131,611        141,979
Amortization of net
lease discounts and     (2,044)        8,709         (446)          15,790
lease incentives
Interest, net           64,121         66,656        113,102        125,808
Income tax provision    1,346          3,732         4,275          7,316
EBITDA                  $  146,844     $  184,030    $  297,468     $  346,811
Adjustments:
 Impairment of         10,111         —             10,111         6,199
aircraft
 Non-cash share based  929            1,053         2,105          1,864
payment expense
 Gain on mark to
market of interest rate (712)          (1,657)       (599)          (2,872)
derivative contracts
Adjusted EBITDA         $  157,172     $  183,426    $  309,085     $  352,002

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-USGAAP 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 June 30,  Six Months Ended June 30,
                        2012            2013         2012           2013
                        (Dollars in thousands)
Net income              $   16,324      $  32,854    $   48,926     $  55,918
Loan termination        —               2,954        —              2,954
fee^(1)
Ineffective portion and
termination of          1,885           2,003        366            2,131
hedges^(1)
Gain on mark to market
of interest rate        (712)           (1,657)      (599)          (2,872)
derivative
contracts^(2)
Write-off of deferred   2,914           3,825        2,914          3,825
financing fees^(1)
Stock compensation      929             1,053        2,105          1,864
expense^(3)
Term Financing No. 1
hedge loss amortization 4,416           4,604        4,416          8,887
charges^(1)
Securitization No. 1
hedge loss amortization —               404          —              745
charges ^(1)
 Adjusted net income   $   25,756      $  46,040    $   58,128     $  73,452



(1) Included in Interest, net.
(2) Included in Other income (expense).
(3) Included in Selling, general and administrative expenses.

Beginning with our report for the quarter ended March31, 2012, management, to
be more consistent with reporting practices of peer aircraft leasing
companies, has revised the calculation of ANI to no longer exclude gains
(losses) on sales of assets, and to exclude non-cash share based payment
expense in the calculation of ANI. Beginning with our quarterly report for
the quarter ended June30, 2012, we also excluded Term Financing No.1 hedge
loss amortization charges which will be reported in Interest, net on our
consolidated statement of income from the calculation of ANI. The same applies
to hedge loss amortization charges associated with Securitization No. 1, which
began in the first quarter of 2013. The calculation of ANI for the three
months ended March31, 2012 has been revised to be comparable with the current
period presentation.

Management believes that ANI, when viewed in conjunction with the Company's
results under USGAAP and the below reconciliation, provides useful
information about operating and period-over-period performance, and provides
additional information that is useful for evaluating the underlying operating
performance of our business without regard to periodic reporting elements
related to interest rate derivative accounting and gains or losses related to
flight equipment and debt investments.

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    Six Months Ended

                                    June 30, 2013         June 30, 2013
                                                                   
Weighted-average shares:            Shares   Percent^(2)  Shares
                                                                   Percent^(2)
                                                                   
Common shares outstanding – Basic   67,829   99.08%       67,863
                                                                   99.26%
                                                                   
Unvested restricted common shares   631      0.92%        508
                                                                   0.74%
Total weighted-average shares                                      
outstanding                         68,460   100.00%      68,371
                                                                   100.00%
Net income allocation
Net income                          $32,854  100.00%      $55,918  100.00%
Distributed and undistributed                                      
earnings allocated to unvested      (303)    (0.92%)      (416)
restricted shares                                                  (0.74%)
                                                                   
Earnings available to common shares $32,551  99.08%       $55,502
                                                                   99.26%
Adjusted net income allocation
Adjusted net income                 $46,040  100.00%      $73,452  100.00%
Amounts allocated to unvested                                      
restricted shares                   (425)    (0.92%)      (546)
                                                                   (0.74%)
                                                                   
Amounts allocated to common shares  $45,615  99.08%       $72,906
                                                                   99.26%

(1) For the three and twelve months ended June 30, 2013 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    Six Months Ended

                                    June 30, 2012         June 30, 2012
Weighted-average shares:            Shares   Percent^(2)  Shares   Percent^(2)
Common shares outstanding – Basic   71,723   99.19%       71,710   99.16%
Unvested restricted common shares   589      0.81%        610      0.84%
Total weighted-average shares       72,312   100.00%      72,320   100.00%
outstanding
Net income allocation
Net income                          $16,324  100.00%      $48,926  100.00%
Distributed and undistributed
earnings allocated to unvested      (133)    (0.81%)      (412)    (0.84%)
restricted shares
Earnings available to common shares $16,191  99.19%       $48,514  99.16%
Adjusted net income allocation
Adjusted net income                 $25,756  100.00%      $58,128  100.00%
Amounts allocated to unvested       (210)    (0.81%)      (490)    (0.84%)
restricted shares
Amounts allocated to common shares  $25,546  99.19%       $57,638  99.16%

(1) For the three and twelve months ended June 30, 2012 the company had no
dilutive shares.
(2) Percentages rounded to two decimal places.

SOURCE Aircastle Limited

Website: http://www.aircastle.com
 
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