Aircastle Limited Reports Unaudited Consolidated Earnings Results for the Fourth Quarter and Full Year Ended December 31, 2014; Reports Impairment for the Fourth Quarter of 2014; Provides Earnings Guidance for the First Quarter of 2015 and Effective Tax Rate Guidance for the Full Year 2015
Feb 19 15
Aircastle Limited reported unaudited consolidated earnings results for the fourth quarter and full year ended December 31, 2014. For the quarter, the company reported total revenues of $238,257,000 compared to $191,988,000 a year ago. Income from continuing operations before income taxes was $74,546,000 compared to $50,864,000 a year ago. Net income was $72,764,000 or $0.90 per basic and diluted share compared to $48,421,000 or $0.60 per basic and diluted share a year ago. EBITDA was $205,584,000 compared to $190,383,000 a year ago. Adjusted EBITDA was $195,965,000 compared to $233,200,000 a year ago. Adjusted net income allocable to common shares was $79,545,000 or $0.99 per basic and diluted share compared to $54,433,000 or $0.68 per basic and diluted share a year ago. Total revenues for the fourth quarter increased $46.3 million, driven by higher maintenance revenues of $27.6 million reflecting the early return of several aircraft on lease with Russia-based airlines and higher lease rentals of $8.9 million. Adjusted EBITDA for the fourth quarter up $37.2 million, or 19% from the fourth quarter of 2013, due primarily to higher total revenues, excluding amortization of net lease discounts and incentives, of $38.3 million. Adjusted net income up $25.2 million or 46%, year over year, the increase was due primarily to higher total revenues of $46.3 million partially offset by higher non-cash impairment charges of $22.0 million primarily related to the early return and exit of aircraft.
For the year, the company reported total revenues of $818,602,000 compared to $708,645,000 a year ago. Income from continuing operations before income taxes was $111,637,000 compared to $38,943,000 a year ago. Net income was $100,828,000 or $1.25 per basic and diluted share compared to $29,781,000 or $0.40 per basic and diluted share a year ago. Net cash provided by operating activities was $458,786,000 compared to $424,037,000 a year ago. Acquisition and improvement of flight equipment was $1,672,460,000 compared to $1,263,706,000 a year ago. EBITDA was $658,606,000 compared to $600,088,000 a year ago. Adjusted EBITDA was $792,283,000 compared to $717,209,000 a year ago. Adjusted net income allocable to common shares was $166,425,000 or $2.07 per basic and diluted share compared to $58,786,000 or $0.80 per basic and diluted share a year ago. Total revenues for 2014 increased of $110.0 million, up 16% from the previous year, the increase reflects higher lease rental and finance lease revenue of $64.5 million, higher maintenance revenue of $19.7 million and lower amortization of lease premiums, discounts and lease incentive amortization of $26.2 million. Adjusted EBITDA for the full year was up $75.1 million or 10% versus 2013, reflecting higher total revenues excluding amortization of net lease discounts and lease incentives of $83.7 million, partially offset by lower gains from the sale of flight equipment of $14.1 million. Adjusted net income for the full year increased $108.4 million, higher total revenues of $110.0 million and lower adjusted operating expenses of $15.4 million were partially offset by lower gains from the sale of flight equipment of $14.1 million. Full year 2014 cash ROE was 11.7%.
For the fourth quarter ended December 31, 2014, the company reported impairment of aircraft of $26,988,000 compared to $4,971,000 a year ago.
The company provided earnings guidance for the first quarter of 2015 and effective tax rate guidance for the full year 2015. For the quarter, the company expects depreciation of $75 million to $77 million, interest, net of $62 million to $64 million, finance lease revenue of $1 million to $2 million, maintenance revenue of $15 million to $17 million and lease rental revenue of $177 million to $180 million.
For the full year the company expects effective tax rate of 12% to 13%.