![](/cdn/assets/images/search/clock.png)
We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type |
---|---|---|---|
Aerocentury Corp | AMEX:ACY | AMEX | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 2.45 | 0 | 01:00:00 |
Revenues and other income decreased by 47% to $2.5 million in the first quarter of 2021 from $4.8 million in the first quarter of 2020. The decrease was primarily a result of a 43% decrease in operating lease revenues to $2.7 million in the first quarter of 2021 from $4.8 million in the first quarter of 2020 as a result of reduced rent income from the sale of aircraft during the fourth quarter of 2020 and first quarter of 2021 and reduced rent for two assets in the 2021 quarter as a result of lease amendments related to the COVID-19 outbreak.
The results for the quarter ended March 31, 2021 also reflected reduced depreciation expense compared to the first quarter of 2020, primarily as a result of aircraft sales, and increased professional fees and other expenses, primarily due to higher legal expenses. During the first quarter of 2021, the Company recorded a bad debt allowance of $821,000 related to one of its sales-type finance leases. During the first quarter of 2021, the Company recorded an impairment loss of $1,940,400 on its two assets held for sale, based on expected sales proceeds, which had an aggregate fair value of $347,400.
The results for the quarter ended March 31, 2020 included impairment losses totaling $6.7 million, arising from estimated sales proceeds for three regional jet aircraft and an older turboprop aircraft that is being sold in parts. Results also included a $1.2 million bad debt allowance related to two of the Company’s aircraft that are subject to finance leases and a $1.9 million non-cash charge related to the Company’s interest rate swaps, which is included in interest expense.
As previously reported, the Company and its subsidiaries, JetFleet Holding Corp. and JetFleet Management Corp. (“the Debtors”) filed a voluntary petition for bankruptcy protection under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the District of Delaware on March 29, 2021. After the bankruptcy filing, the Company has continued to operate its businesses in the ordinary course as “debtors-in-possession” under the jurisdiction of the Court and in accordance with the applicable provisions of the Bankruptcy Code. The Bankruptcy Court has granted the Company’s motions designed primarily to minimize the effect of bankruptcy on the Company’s operations, customers and employees and make it possible for the Company to continue existing operations without interruption during the pendency of the Chapter 11 Case.The Bankruptcy Court also approved the conduct of a process to market and sell the Company’s assets as part of the Chapter 11 proceeding in order to permit the Company to satisfy the Company’s obligations to its creditors, including its sole secured creditor, Drake Asset Management Jersey Limited (“Drake”). The Company entered into a stalking horse agreement with Drake for the sale of certain of the aircraft assets securing the Drake Indebtedness (the “Drake Collateral”), which if approved by the Bankruptcy Court as the best and/or highest offer for the Drake Collateral, will, upon consummation, lead to full satisfaction of the Company’s obligations to Drake under the Drake Indebtedness.
No third party qualified bids were received for the Company’s assets in the Court-approved marketing and sale process, so the proposed auction for assets will not be conducted, and the Company anticipates that the sale of the Drake Collateral will proceed under the terms of the stalking horse agreement. There were non-qualified third party bids received by the Company for certain subsets of the Company’s aircraft assets, and the Company is currently reviewing and evaluating those offers. With respect to any asset purchases proposed in such non-qualified bids that include Drake Collateral, the Company is consulting with Drake.
First Quarter 2021 Highlights and Comparative Data
(1) EBITDA is a non-GAAP measure. See below for its method of calculation and reconciliation to its most directly comparable GAAP measure, as well as other information about the use of non-GAAP measures generally, at the end of this press release.
Aircraft and Engine Portfolio
AeroCentury’s portfolio currently consists of twelve aircraft, spread over four different aircraft types: (i) four regional jets and two turboprops that are on lease to three customers operating in three countries; (ii) two turboprops that are financed under sales-type leases (iii) one turboprop and three regional jets that are off lease and (iv) two turboprop aircraft that are being sold in parts and are held for sale. The off-lease aircraft were reclassified from held for sale to held for lease during the first quarter of 2021 as a result of the Company’s Chapter 11 filing and the Company’s consequent lack of authority to sell certain assets without the approval of the Bankruptcy Court.
About AeroCentury: AeroCentury is an independent global aircraft operating lessor and finance company specializing in leasing regional jet and turboprop aircraft and related engines. The Company's aircraft are leased to regional airlines and commercial users worldwide.
This press release contains forward-looking statements within the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. All statements in this press release other than statements that are purely historical are forward-looking statements. Forward-looking statements in this press release include statements regarding the Company’s continuation of operations during the pendency of its bankruptcy proceeding, the sale of the Drake Collateral pursuant to the terms of a stalking horse agreement; and anticipated sale of one of is turboprops. The forward-looking statements in this press release and the Company’s future results of operations are subject to additional risks and uncertainties set forth under the heading “Factors that May Affect Future Results and Liquidity” in documents filed by the Company with the Securities and Exchange Commission, including the Company's quarterly reports on Form 10-Q and the Company’s latest annual report on Form 10-K, and are based on information available to the Company on the date hereof. The Company does not intend, and assumes no obligation, to update any forward-looking statements made in this press release. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date of this press release.
Condensed Consolidated Statements of Income (in thousands, except share and per share data) (Unaudited)
For the Three Months Ended | |||||||||
March 31, | December 31, | March 31, | |||||||
2021 | 2020 | 2020 | |||||||
Operating lease revenue | $ | 2,737 | $ | 3,072 | $ | 4,768 | |||
Finance lease revenue | - | - | 56 | ||||||
Net (loss)/gain on disposal of assets | (202 | ) | 124 | (24 | ) | ||||
Other (loss)/income | (1 | ) | 302 | (23 | ) | ||||
2,534 | 3,498 | 4,777 | |||||||
Impairment | 1,940 | 11,931 | 6,655 | ||||||
Interest | 1,915 | 3,326 | 6,013 | ||||||
Professional fees and other | 1,869 | 470 | 1,063 | ||||||
Bad debt expense | 821 | 333 | 1,170 | ||||||
Depreciation | 699 | 1,512 | 2,170 | ||||||
Salaries and employee benefits | 506 | 510 | 517 | ||||||
Maintenance costs | 145 | 56 | 80 | ||||||
7,895 | 18,138 | 17,668 | |||||||
Loss before income tax provision/(benefit) | (5,361 | ) | (14,640 | ) | (12,891 | ) | |||
Income tax provision/(benefit) | 49 | (174 | ) | (2,713 | ) | ||||
Net loss | $ | (5,410 | ) | $ | (14,466 | ) | $ | (10,178 | ) |
Loss per share: | |||||||||
Basic | $ | (3.50 | ) | $ | (9.36 | ) | $ | (0.85 | ) |
Diluted | $ | (3.50 | ) | $ | (9.36 | ) | $ | (0.85 | ) |
Shares used in per share computations: | |||||||||
Basic | 1,545,884 | 1,545,884 | 1,545,884 | ||||||
Diluted | 1,545,884 | 1,545,884 | 1,545,884 | ||||||
Condensed Consolidated Balance Sheets(in thousands) (Unaudited)
ASSETS | ||||||
March 31, | December 31, | |||||
2021 | 2020 | |||||
Cash and cash equivalents | $ | 4,225 | $ | 2,409 | ||
Cash and cash equivalents held for sale | - | 346 | ||||
Restricted cash held for sale | - | 2,346 | ||||
Accounts receivable | 310 | 257 | ||||
Finance leases receivable, net of allowance for doubtful accounts | 1,626 | 2,547 | ||||
Aircraft, net of accumulated depreciation | 56,085 | 45,763 | ||||
Assets held for sale | 347 | 38,147 | ||||
Property, equipment and furnishings, net of accumulated depreciation | 12 | 15 | ||||
Office lease right of use, net of accumulated amortization | 126 | 142 | ||||
Deferred tax asset | 4 | 1,151 | ||||
Taxes receivable | 1,161 | - | ||||
Prepaid expenses and other assets | 539 | 255 | ||||
Total assets | $ | 64,435 | $ | 93,378 | ||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||
Liabilities: | ||||||
Accounts payable and accrued expenses | $ | 215 | $ | 368 | ||
Accrued payroll | 222 | 190 | ||||
Notes payable and accrued interest, net of unamortized debt issuance costs | - | 88,793 | ||||
Notes payable and accrued interest held for sale, net of unamortized debt issuance costs | - | 13,837 | ||||
Derivative liability held for sale | - | 768 | ||||
Derivative termination liability | - | 3.075 | ||||
Lease liability | 151 | 172 | ||||
Maintenance reserves | 2,100 | 2,001 | ||||
Accrued maintenance costs | - | 46 | ||||
Security deposits | 466 | 716 | ||||
Unearned revenues | 549 | 1,027 | ||||
Income taxes payable | 1 | 1 | ||||
Total liabilities not subject to compromise | 3,704 | 110,994 | ||||
Liabilities subject to compromise | 83,755 | - | ||||
Total liabilities | 87,459 | 110.994 | ||||
Stockholders’ equity: | ||||||
Preferred stock, $0.001 par value | - | - | ||||
Common stock, $0.001 par value | 2 | 2 | ||||
Paid-in capital | 16,783 | 16,783 | ||||
Accumulated deficit | (36,772 | ) | (31,362 | ) | ||
Accumulated other comprehensive loss | - | (2 | ) | |||
19,987 | 14,579 | |||||
Treasury stock | (3,037 | ) | (3,037 | ) | ||
Total stockholders’ deficit | (23,024 | ) | (17,616 | ) | ||
Total liabilities and stockholders’ deficit | $ | 64,435 | $ | 93,378 | ||
Use of Non-GAAP Financial Measures
To supplement the Company’s financial information presented in accordance with accounting principles generally accepted in the United States of America (“GAAP”), this press release includes the non-GAAP financial measure of EBITDA. The Company defines EBITDA as net (loss)/income, plus depreciation expense, plus interest expense and plus/(minus) income tax provision/(benefit). The table below provides a reconciliation of this non-GAAP financial measure to its most directly comparable financial measure calculated and presented in accordance with GAAP. This non-GAAP financial measure should not be considered as an alternative to GAAP measures such as net (loss)/income or any other measure of financial performance calculated and presented in accordance with GAAP. Rather, the Company presents this measure as supplemental information because it believes it provides meaningful additional information about the Company’s performance for the following reasons: (1) this measure allows for greater transparency with respect to key metrics used by management, as management uses this measure to assess the Company’s operating performance and for financial and operational decision-making; (2) this measure excludes the impact of items management believes are not directly attributable to the Company’s core operating performance and may obscure trends in the business; and (3) this measure may be used by institutional investors and the analyst community to help analyze the Company’s business. The Company’s non-GAAP financial measures may not be comparable to similarly-titled measures of other companies because they may not calculate such measures in the same manner as the Company does.
For the Three Months Ended(in thousands) | |||||||||
March 31, | December 31, | March 31, | |||||||
2021 | 2020 | 2020 | |||||||
Reconciliation of Net loss to EBITDA: | |||||||||
Net loss | $ | (5,410 | ) | $ | (14,466 | ) | $ | (10,178 | ) |
Depreciation | 699 | 1,512 | 2,170 | ||||||
Interest | 1,915 | 3,326 | 6,013 | ||||||
Income tax provision/(benefit) | 49 | (174 | ) | (2,713 | ) | ||||
EBITDA | (2,747 | ) | (9,802 | ) | (4,708 | ) |
Hal LyonsChief Financial Officer(650) 340-1888
1 Year Aerocentury Chart |
1 Month Aerocentury Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions