2016 Highlights (at or for the periods ended December 31, 2016, September 30, 2016, and December 31, 2015):
- Average portfolio utilization, as a percentage of net book value of assets held for lease, was 94% during the fourth quarter of 2016, compared to 93% in the third quarter of 2016 and 96% in the year ago quarter.
- Total revenues increased 3.8% to $7.7 million for the fourth quarter of 2016, compared to $7.4 million in the preceding quarter. Total revenues were $12.7 million in the fourth quarter a year ago, which included $6.3 million from the sale or disposition of assets.- Operating lease revenues increased 22.0% to $7.4 million in the fourth quarter of 2016, compared with $6.1 million in the third quarter of 2016, as a result of aircraft acquisitions during the third quarter of 2016. Operating lease revenues improved 20% from $6.2 million in the year ago fourth quarter, primarily as a result of lease revenue from recently acquired assets, the effects of which were partially offset by the loss of revenue from an aircraft that suffered a total loss in April 2016 and from other assets that were on lease in the 2015 quarter, but off lease in the 2016 period.- During the fourth quarter of 2016, the Company recorded a gain of $3,000 when a lessee exercised its purchase option under a sales-type finance lease. Two aircraft were sold on sales-type lease financing terms in the third quarter of 2016, generating gains of $1.2 million; no aircraft were sold pursuant to sales-type finance leases in the fourth quarter of 2015.- The Company recorded no gain on disposal of assets in the fourth quarter of 2016, compared to $3,000 in the preceding quarter and $6.3 million in the fourth quarter of 2015.
- Total expenses increased to $7.7 million from $6.6 million in the preceding quarter, due to higher depreciation, management fees and interest expense, as well as a $906,000 impairment provision for an off-lease engine. Total expenses declined 2% from $7.9 million in the fourth quarter a year ago primarily due to lower maintenance costs, which lower costs were partially offset by increases in depreciation, interest and management fees.
- Operating margin and net margin were 0% and -1%, respectively, in the fourth quarter of 2016, compared to 11% and 7%, respectively, for the preceding quarter, and 38% and 24%, respectively, in the fourth quarter of 2015.
- Book value per share was $27.13 at December 31, 2016, compared to $27.15 per share at September 30, 2016 and $26.35 per share at December 31, 2015.
- Liquidity available from the revolving credit facility was $39.9 million at December 31, 2016, unchanged from September 30, 2016 and up slightly from $39.6 million a year ago. The credit facility may be expanded by an additional $30.0 million.
|AIRCRAFT AND ENGINES HELD FOR LEASE|
|December 31, 2016||% of netbookvalue||September 30, 2016||% of netbookvalue||December 31,2015||% of netbookvalue|
|Total turboprop aircraft*:|
|Total turboprop aircraft||12||24||%||12||24||%||16||45||%|
|Regional jet aircraft:|
|Total regional jet aircraft||12||73||%||12||73||%||8||49||%|
|(*) Decreases from period to period reflect cash sales, sales pursuant to sales-type finance leases and the accidental loss of an aircraft.|
At December 31, 2016, total assets were $218.7 million, up 21% from $181.0 million a year ago, reflecting the net effect of aircraft purchases and sales during the past twelve months, and the accidental loss of one aircraft.AeroCentury is a global aircraft operating lessor and finance company specializing in leasing regional jet and turboprop aircraft and related engines. The Company's aircraft and engines are leased to regional airlines and commercial users worldwide. Selected Financial Information (in thousands, except share and per share data) (Unaudited)
|For the Three Months Ended||For the Years Ended|
|December 31,||September 30,||December 31,||December 31,||December 31,|
|Operating lease revenue||$||7,410||$||6,074||$||6,186||$||24,464||$||25,467|
|Finance lease revenue||296||200||214||868||490|
|Gain on disposal of assets||-||3||6,331||2,150||6,791|
|Gain on sales-type finance leases||3||1,166||-||1,217||5,179|
|Maintenance reserves revenue (1)||-||-||-||-||589|
|Provision for impairment||906||-||1,135||1,227||1,282|
|Professional fees and other||136||385||331||1,699||1,785|
|Bad debt expense||-||573||-||836||-|
|Income before income taxes||9||814||4,870||1,972||10,021|
|Income tax provision||49||284||1,795||750||3,583|
|Earnings per share:|
|Shares used in per share computations:|
|December 31,||September 30,||December 31,|
Toni PerazzoChief Financial Officer(650) 340-1888