Aircastle Announces Second Quarter 2024 Results
Highlights for the Three Months Ended August 31, 2024
Total revenues of $217 million and net income of $29 million
Adjusted EBITDA(1) of $199 million
Lease rental revenue and direct financing and sales-type lease revenue increased 8%
Sold 10 aircraft and other flight equipment for proceeds of $304 million and gains on sale of $35 million; extended leases on 22 aircraft
Acquired 4 aircraft for $120 million
Fleet utilization over 99%
Liquidity
Issued $500 million 5.75% unsecured senior notes due 2031
Net debt-to-equity of 1.9 times at August 31, 2024
Total liquidity as of October 1, 2024 of $3.1 billion includes $2.1 billion of undrawn facilities, $0.5 billion of projected adjusted operating cash flows and sales through October 1, 2025, and $0.5 billion of unrestricted cash
214 unencumbered aircraft and other flight equipment with a net book value of $6.0 billion
STAMFORD, Conn., Oct. 10, 2024 /PRNewswire/ -- Mike Inglese, Aircastle's CEO, stated, "Global demand for passenger air travel is at an all-time high, with load factors close to operational limits. However, Boeing and Airbus forecast only minimal delivery improvements in the near term. These conditions have led to robust lease rates and steady demand for placements and extensions of the narrow-body aircraft that comprise most of our fleet. In the second fiscal quarter, we capitalized on this momentum by extending 22 leases, selling 10 aircraft, and achieving a net income of $29 million."
Mr. Inglese concluded, "In the second half of our fiscal year, we look forward to expanding our fleet with a focus on new-technology aircraft. Despite the strong competition we're seeing among aircraft investors, we believe Aircastle has a competitive edge due to our outstanding team, ample liquidity, strong balance sheet as well as the outstanding support of our shareholders, Marubeni Corporation and Mizuho Leasing."
Aviation Assets
As of August 31, 2024, Aircastle owned 244 aircraft and other flight equipment having a net book value of $7.1 billion. We also manage 9 aircraft with a net book value of $265 million on behalf of our joint venture with Mizuho Leasing.
Owned Aircraft
As ofAugust 31, 2024
As ofAugust 31, 2023
Net Book Value of Flight Equipment
$ 7,077
$ 6,751
Net Book Value of Unencumbered Flight Equipment
$ 6,043
$ 5,208
Number of Aircraft
244
239
Number of Unencumbered Aircraft
214
201
Number of Lessees
77
73
Number of Countries
46
43
Weighted Average Fleet Age (Years)(1)
9.7
9.7
Weighted Average Remaining Lease Term (Years)(1)
5.3
5.2
Weighted Average Fleet Utilization during the three months ended August 31, 2024 and 2023(2)
99.2 %
98.3 %
Managed Aircraft on behalf of Joint Ventures
Net Book Value of Flight Equipment
$ 265
$ 278
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.
Conference Call
In connection with this press release, management will host a conference call on Thursday, October 10, 2024, at 9:00 A.M. Eastern Time. All interested parties are welcome to participate on the live call. The conference call can be accessed by dialing 1 (800) 836-8184 (from within the U.S. and Canada) or +1 (646) 357-8785 (outside the U.S. and Canada) ten minutes prior to the scheduled start. Please reference our company name "Aircastle" when prompted by the operator.
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.
For those who are not available to listen to the live call, a replay will be available on Aircastle's website shortly after the live call.
About Aircastle Limited
Aircastle Limited acquires, leases and sells commercial jet aircraft to airlines throughout the world. As of August 31, 2024, Aircastle owned and managed on behalf of its joint ventures 253 aircraft leased to 78 airline customers located in 46 countries.
Safe Harbor
All statements in this press release, other than characterizations of historical fact, are forward-looking statements within the meaning of the federal securities laws, including the Private Securities Litigation Reform Act of 1995. Examples of forward-looking statements include, but are not necessarily limited to, statements relating to our proposed public offering of notes and our ability to acquire, sell, lease or finance aircraft, raise capital, pay dividends, and increase revenues, earnings, EBITDA and Adjusted EBITDA 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 our historical performance and that of our subsidiaries and on our current plans, estimates and expectations 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 such forward-looking statements which are subject to certain risks and uncertainties that could cause actual results to differ materially from those anticipated as of the date of this press release. These risks or uncertainties include, but are not limited to, those described from time to time in Aircastle's filings with the SEC and previously disclosed under "Risk Factors" in Item 1A of Aircastle's most recent Form 10-K and any subsequent filings with the SEC. 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 press release. Aircastle expressly disclaims any obligation to revise or update publicly any forward-looking statement to reflect future events or circumstances.
Aircastle Limited and SubsidiariesConsolidated Balance Sheets(Dollars in thousands, except share data)
August 31,2024
February 29,2024
(Unaudited)
ASSETS
Cash and cash equivalents
$ 432,564
$ 129,977
Accounts receivable
12,778
12,518
Flight equipment held for lease, net
6,798,327
6,940,502
Net investment in leases, net
278,270
282,439
Unconsolidated equity method investment
43,709
42,710
Other assets
267,907
271,807
Total assets
$ 7,833,555
$ 7,679,953
LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES
Borrowings from secured financings, net
$ 636,410
$ 875,397
Borrowings from unsecured financings, net
3,823,665
3,823,099
Accounts payable, accrued expenses and other liabilities
212,315
219,588
Lease rentals received in advance
62,894
52,654
Security deposits
71,689
69,544
Maintenance payments
558,568
505,897
Total liabilities
5,365,541
5,546,179
Commitments and Contingencies
