In short, with significant unrestricted cash balance today, good operating cash flow going forward, no debt maturities for several years and no major remaining capital commitments, we are excited about Aircastle’s position to continue executing on our strategy of discipline, return oriented growth.
Now let’s turn to our performance during the first quarter of 2012. Regarding our topline results, total revenue grew to $165 million, with lease rental revenue accounting for around $152 million of that. Lease rental revenue is up 8% due to our investments in 2011, more than offsetting the revenue loss from last year’s profitable asset sales.
Net income was $32.6 million or $0.45 per diluted common share, while adjusted net income was $32.4 million. At the end of the first quarter, our fleet stood at 145 aircraft, which are leased to 64 customers in 34 countries. The average remaining lease term was 4.7 years, providing the company with the diverse and long lasting contractual revenue base.
Portfolio performance during Q1 was solid with fleet utilization coming in at 99%, while rental yield stayed at 14%. As evidence by these results, we continue to keep our fleet well deployed as we done throughout the business cycle and despite geopolitical development such as the Arab Spring last year. In fact, managing through customers issues is something all leasing companies must address and do well.Over the past several weeks we reacted quickly to the bankruptcy filling with World Airways which leased two 747-400 freighters from us. We agreed with the World to terminate lease for one aircraft and quickly sign new lease agreement with another operator. We also re-negotiate the lease for the other aircraft which World is continuing to operate. Our team did a terrific job of managing through this situation and keeping plains flying. This morning one of our customers, Cimber Sterling, a small airline in Denmark filed for bankruptcy. We had four 737-700 on lease there, representing less than 2% of the net book value of our fleet, one aircraft had already completed it return process and another was schedule to come off lease later this quarter. Last unit is schedule to come off lease in Q1 next year. Read the rest of this transcript for free on seekingalpha.com