Highlights for the Three Months Ended May 31, 2024
Liquidity
Aviation Assets
As of May 31, 2024, Aircastle owned 250 aircraft and other flight equipment having a net book value of $7.3 billion. We also manage 9 aircraft with a net book value of $268 million on behalf of our joint venture with Mizuho Leasing.
Owned Aircraft | As of | As of | |
Net Book Value of Flight Equipment | $ 7,327 | $ 6,862 | |
Net Book Value of Unencumbered Flight Equipment | $ 5,958 | $ 5,348 | |
Number of Aircraft | 250 | 244 | |
Number of Unencumbered Aircraft | 212 | 206 | |
Number of Lessees | 76 | 73 | |
Number of Countries | 44 | 43 | |
Weighted Average Fleet Age (Years)(1) | 9.6 | 9.6 | |
Weighted Average Remaining Lease Term (Years)(1) | 5.2 | 5.4 | |
Weighted Average Fleet Utilization during the three months ended May 31, 2024 and 2023(2) | 99.1 % | 95.6 % | |
Managed Aircraft on behalf of Joint Ventures | |||
Net Book Value of Flight Equipment | $ 268 | $ 282 | |
Number of Aircraft | 9 | 9 |
_______________ |
1. Weighted by Net Book Value. |
2. Aircraft on-lease days as a percentage of total days in period weighted by Net Book Value. |
Aircastle Limited and Subsidiaries | |||
May 31, | February 29, | ||
(Unaudited) | |||
ASSETS | |||
Cash and cash equivalents | $ 164,604 | $ 129,977 | |
Accounts receivable | 9,380 | 12,518 | |
Flight equipment held for lease, net | 7,047,120 | 6,940,502 | |
Net investment in leases, net | 279,901 | 282,439 | |
Unconsolidated equity method investment | 43,229 | 42,710 | |
Other assets | 278,458 | 271,807 | |
Total assets | $ 7,822,692 | $ 7,679,953 | |
LIABILITIES AND SHAREHOLDERS' EQUITY | |||
LIABILITIES | |||
Borrowings from secured financings, net | $ 855,908 | $ 875,397 | |
Borrowings from unsecured financings, net | 3,876,765 | 3,823,099 | |
Accounts payable, accrued expenses and other liabilities | 271,701 | 219,588 | |
Lease rentals received in advance | 63,137 | 52,654 | |
Security deposits | 71,488 | 69,544 | |
Maintenance payments | 533,838 | 505,897 | |
Total liabilities | 5,672,837 | 5,546,179 | |
Commitments and Contingencies | |||
SHAREHOLDERS' EQUITY | |||
Preference shares, $0.01 par value, 50,000,000 shares authorized, 400 (aggregate | — | — | |
Common shares, $0.01 par value, 250,000,000 shares authorized, 15,564 shares | — | — | |
Additional paid-in capital | 2,078,774 | 2,078,774 | |
Retained earnings | 71,081 | 55,000 | |
Total shareholders' equity | 2,149,855 | 2,133,774 | |
Total liabilities and shareholders' equity | $ 7,822,692 | $ 7,679,953 |
Aircastle Limited and Subsidiaries | |||
Three Months Ended May 31, | |||
2024 | 2023 | ||
Revenues: | |||
Lease rental revenue | $ 162,570 | $ 146,735 | |
Direct financing and sales-type lease revenue | 5,457 | 1,073 | |
Amortization of lease premiums, discounts and incentives | (6,649) | (7,207) | |
Maintenance revenue | 42,149 | 34,520 | |
Total lease revenue | 203,527 | 175,121 | |
Gain on sale or disposition of flight equipment | 1,010 | 42,594 | |
Other revenue | 636 | 776 | |
Total revenues | 205,173 | 218,491 | |
Operating expenses: | |||
Depreciation | 89,358 | 88,789 | |
Interest, net | 64,813 | 56,891 | |
Selling, general and administrative | 22,055 | 20,835 | |
Provision for credit losses | (145) | 6,959 | |
Impairment of flight equipment | 5,211 | 1,097 | |
Maintenance and other costs | 4,443 | 8,533 | |
Total operating expenses | 185,735 | 183,104 | |
Other income (expense): | |||
Other | (304) | 1,337 | |
Total other income (expense) | (304) | 1,337 | |
Income from continuing operations before income taxes and earnings of unconsolidated equity method investment | 19,134 | 36,724 | |
Income tax provision | 3,572 | 14,360 | |
Earnings of unconsolidated equity method investment, net of tax | 519 | 406 | |
Net income | $ 16,081 | $ 22,770 | |
Net income available to common shareholders | $ 16,081 | $ 22,770 | |
Total comprehensive income available to common shareholders | $ 16,081 | $ 22,770 |
Aircastle Limited and Subsidiaries | |||
Three Months Ended May 31, | |||
2024 | 2023 | ||
Cash flows from operating activities: | |||
Net income | $ 16,081 | $ 22,770 | |
Adjustments to reconcile net income to net cash and cash equivalents provided by operating activities: | |||
Depreciation | 89,358 | 88,789 | |
Amortization of deferred financing costs | 4,343 | 4,031 | |
Amortization of lease premiums, discounts and incentives | 6,649 | 7,207 | |
Deferred income taxes | 5,314 | 3,812 | |
Collections on net investment in leases | 713 | 927 | |
Security deposits and maintenance payments included in earnings | (2,210) | (3,203) | |
Gain on sale or disposition of flight equipment | (1,010) | (42,594) | |
Impairment of flight equipment | 5,211 | 1,097 | |
Provision for credit losses | (145) | 6,959 | |
Other | (508) | (397) | |
Changes in certain assets and liabilities: | |||
Accounts receivable | (1,273) | 3,209 | |
Other assets | (2,927) | (3,607) | |
Accounts payable, accrued expenses and other liabilities | 17,967 | 2,272 | |
Lease rentals received in advance | 9,441 | 9,178 | |
Net cash and cash equivalents provided by operating activities | 147,004 | 100,450 | |
Cash flows from investing activities: | |||
Acquisition and improvement of flight equipment | (224,935) | (322,151) | |
Proceeds from sale of flight equipment | 25,379 | 53,782 | |
Aircraft purchase deposits and progress payments, net of returned deposits and aircraft sales deposits | 35,181 | 4,947 | |
Other | (209) | (2,900) | |
Net cash and cash equivalents used in investing activities | (164,584) | (266,322) | |
Cash flows from financing activities: | |||
Proceeds from secured and unsecured debt financings | 550,000 | 624,911 | |
Repayments of secured and unsecured debt financings | (520,118) | (569,206) | |
Deferred financing costs | (48) | (527) | |
Security deposits and maintenance payments received | 34,960 | 31,620 | |
Security deposits and maintenance payments returned | (2,087) | (6,131) | |
Dividends paid | (10,500) | (10,500) | |
Net cash and cash equivalents provided by financing activities | 52,207 | 70,167 | |
Net increase (decrease) in cash and cash equivalents | 34,627 | (95,705) | |
Cash and cash equivalents at beginning of period | 129,977 | 231,861 | |
Cash and cash equivalents at end of period | $ 164,604 | $ 136,156 |
Aircastle Limited and Subsidiaries | |||
Three Months Ended May 31, | |||
2024 | 2023 | ||
Net income | $ 16,081 | $ 22,770 | |
Depreciation | 89,358 | 88,789 | |
Amortization of lease premiums, discounts and incentives | 6,649 | 7,207 | |
Interest, net | 64,813 | 56,891 | |
Income tax provision | 3,572 | 14,360 | |
EBITDA | 180,473 | 190,017 | |
Adjustments: | |||
Impairment of flight equipment | 5,211 | 1,097 | |
Adjusted EBITDA | $ 185,684 | $ 191,114 |