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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 |
Delaware
|
94-3263974
|
|
(State or Other Jurisdiction of Incorporation or Organization)
|
(IRS Employer Identification No.)
|
Title of each class
|
Name of each exchange on which registered
|
Common Stock, par value $0.001 per share
|
NYSE MKT Exchange
|
Period
|
High
|
Low
|
||||||
Fiscal year ended December 31, 2015:
|
||||||||
Fourth Quarter
|
$
|
13.00
|
$
|
8.21
|
||||
Third Quarter
|
13.00
|
7.70
|
||||||
Second Quarter
|
13.45
|
8.01
|
||||||
First Quarter
|
14.00
|
7.61
|
||||||
Fiscal year ended December 31, 2014:
|
||||||||
Fourth Quarter
|
$
|
11.82
|
$
|
8.05
|
||||
Third Quarter
|
16.40
|
10.90
|
||||||
Second Quarter
|
18.90
|
15.25
|
||||||
First Quarter
|
19.00
|
15.03
|
Type
|
Number
owned
|
% of net
book value
|
||||||
Turboprop aircraft
|
16
|
45
|
%
|
|||||
Regional jet aircraft
|
8
|
49
|
%
|
|||||
Engines
|
5
|
6
|
%
|
Region
|
Number
of lessees
|
% of
operating
lease revenue
|
||||||
Europe
|
4
|
28
|
%
|
|||||
North America
|
2
|
28
|
%
|
|||||
Africa
|
2
|
22
|
%
|
|||||
Asia
|
3
|
14
|
%
|
|||||
Australia
|
1
|
5
|
%
|
|||||
Central and South America
|
2
|
3
|
%
|
ASSETS
|
||||||||
December 31,
|
December 31,
|
|||||||
2015
|
2014
|
|||||||
Assets:
|
||||||||
Cash and cash equivalents
|
$
|
2,721,000
|
$
|
1,840,500
|
||||
Accounts receivable, including deferred rent of $359,200 and $111,300 at
December 31, 2015 and December 31, 2014, respectively
|
5,693,500
|
2,128,600
|
||||||
Finance leases receivable
|
11,895,600
|
-
|
||||||
Aircraft and aircraft engines held for lease, net of accumulated
depreciation of $31,074,600 and $38,962,800 at
December 31, 2015 and December 31, 2014, respectively
|
155,258,100
|
186,762,600
|
||||||
Assets held for sale
|
5,228,400
|
6,522,900
|
||||||
Prepaid expenses and other
|
228,400
|
415,900
|
||||||
Total assets
|
$
|
181,025,000
|
$
|
197,670,500
|
||||
LIABILITIES AND STOCKHOLDERS' EQUITY
|
||||||||
Liabilities:
|
||||||||
Accounts payable and accrued expenses
|
$
|
1,138,400
|
$
|
2,818,200
|
||||
Notes payable and accrued interest, net of unamortized debt issuance
costs of $2,814,000 and $4,104,400 at December 31, 2015 and
December 31, 2014, respectively
|
107,621,600
|
129,486,200
|
||||||
Maintenance reserves
|
13,230,000
|
12,927,700
|
||||||
Accrued maintenance costs
|
382,300
|
2,115,700
|
||||||
Security deposits
|
3,212,600
|
5,218,300
|
||||||
Unearned revenues
|
1,957,400
|
1,642,200
|
||||||
Deferred income taxes
|
12,204,200
|
8,621,300
|
||||||
Total liabilities
|
139,746,500
|
162,829,600
|
||||||
Commitments and contingencies
|
||||||||
Stockholders' equity:
|
||||||||
Preferred stock, $0.001 par value, 2,000,000 shares
authorized, no shares issued and outstanding
|
-
|
-
|
||||||
Common stock, $0.001 par value, 10,000,000 shares authorized,
1,629,999 and 1,606,557 shares issued and outstanding at
December 31, 2015 and December 31, 2014, respectively
|
1,600
|
1,600
|
||||||
Paid-in capital
|
14,780,100
|
14,780,100
|
||||||
Retained earnings
|
27,000,900
|
20,563,300
|
||||||
41,782,600
|
35,345,000
|
|||||||
Treasury stock at cost, 63,300 shares
|
(504,100
|
)
|
(504,100
|
)
|
||||
Total stockholders' equity
|
41,278,500
|
34,840,900
|
||||||
Total liabilities and stockholders' equity
|
$
|
181,025,000
|
$
|
197,670,500
|
For the Years Ended December 31,
|
||||||||
2015
|
2014
|
|||||||
Revenues and other income:
|
||||||||
Operating lease revenue, net
|
$
|
25,467,200
|
$
|
21,913,300
|
||||
Net gain on disposal of assets
|
6,790,700
|
3,147,200
|
||||||
Net gain on sales-type finance leases
|
5,179,200
|
-
|
||||||
Maintenance reserves revenue, net
|
589,000
|
3,393,600
|
||||||
Other income
|
507,600
|
252,400
|
||||||
38,533,700
|
28,706,500
|
|||||||
Expenses:
|
||||||||
Depreciation
|
9,062,100
|
7,299,000
|
||||||
Interest
|
6,141,400
|
5,134,200
|
||||||
Management fees, net of approximately $1,200,000
of fees waived by JMC in 2014
|
5,581,400
|
3,864,900
|
||||||
Maintenance
|
4,660,600
|
7,478,400
|
||||||
Provision for impairment in value of aircraft
|
1,282,300
|
18,736,500
|
||||||
Professional fees, general and administrative and other
|
1,187,700
|
1,718,800
|
||||||
Insurance
|
409,600
|
1,255,300
|
||||||
Other taxes
|
187,300
|
465,200
|
||||||
28,512,400
|
45,952,300
|
|||||||
Income/(loss) before income tax provision/(benefit)
|
10,021,300
|
(17,245,800
|
)
|
|||||
Income tax provision/(benefit)
|
3,583,700
|
(5,951,800
|
)
|
|||||
Net income/(loss)
|
$
|
6,437,600
|
$
|
(11,294,000
|
)
|
|||
Earnings/(loss) per share:
|
||||||||
Basic
|
$
|
4.17
|
$
|
(7.32
|
)
|
|||
Diluted
|
$
|
4.17
|
$
|
(7.32
|
)
|
|||
Weighted average shares used in earnings/(loss) per share computations:
|
||||||||
Basic
|
1,544,285
|
1,543,257
|
||||||
Diluted
|
1,544,285
|
1,543,257
|
Common
Stock
|
Paid-in
Capital
|
Retained
Earnings
|
Treasury
Stock
|
Total
|
||||||||||||||||
Balance, December 31, 2013
|
$
|
1,600
|
$
|
14,780,100
|
$
|
31,857,300
|
$
|
(504,100
|
)
|
$
|
46,134,900
|
|||||||||
Net loss
|
-
|
-
|
(11,294,000
|
)
|
-
|
(11,294,000
|
)
|
|||||||||||||
Balance, December 31, 2014
|
1,600
|
14,780,100
|
20,563,300
|
(504,100
|
)
|
34,840,900
|
||||||||||||||
Net income
|
-
|
-
|
6,437,600
|
-
|
6,437,600
|
|||||||||||||||
Balance, December 31, 2015
|
$
|
1,600
|
$
|
14,780,100
|
$
|
27,000,900
|
$
|
(504,100
|
)
|
$
|
41,278,500
|
For the Years Ended December 31,
|
||||||||
2015
|
2014
|
|||||||
Operating activities:
|
||||||||
Net income/(loss)
|
$
|
6,437,600
|
$
|
(11,294,000
|
)
|
|||
Adjustments to reconcile net income/(loss) to net cash
|
||||||||
provided by operating activities:
|
||||||||
Net gain on disposal of assets
|
(6,790,700
|
)
|
(3,147,200
|
)
|
||||
Net gain on sales-type finance leases
|
(5,179,200
|
)
|
-
|
|||||
Depreciation
|
9,062,100
|
7,299,000
|
||||||
Provision for impairment in value of aircraft
|
1,282,300
|
18,736,500
|
||||||
Non-cash interest
|
1,394,000
|
950,100
|
||||||
Deferred income taxes
|
3,582,900
|
(5,952,600
|
)
|
|||||
Changes in operating assets and liabilities:
|
||||||||
Accounts receivable
|
(2,363,100
|
)
|
(498,000
|
)
|
||||
Finance leases receivable
|
(44,700
|
)
|
1,895,200
|
|||||
Income taxes receivable
|
(25,000
|
)
|
-
|
|||||
Prepaid expenses and other
|
168,500
|
486,700
|
||||||
Accounts payable and accrued expenses
|
(359,500
|
)
|
(132,400
|
)
|
||||
Accrued interest on notes payable
|
(155,000
|
)
|
163,300
|
|||||
Maintenance reserves and accrued costs
|
3,977,100
|
(1,313,700
|
)
|
|||||
Security deposits
|
(745,700
|
)
|
(2,167,700
|
)
|
||||
Unearned revenue
|
315,200
|
210,200
|
||||||
Net cash provided by operating activities
|
10,556,800
|
5,235,400
|
||||||
Investing activities:
|
||||||||
Proceeds from sale of aircraft and aircraft engines held for lease,
net of re-sale fees
|
11,100,600
|
15,854,800
|
||||||
Proceeds from sale of assets held for sale, net of re-sale fees
|
3,616,400
|
312,100
|
||||||
Purchases of aircraft and aircraft engines
|
(1,333,700
|
)
|
(74,529,000
|
)
|
||||
Net cash provided by/(used in) investing activities
|
13,383,300
|
(58,362,100
|
)
|
|||||
Financing activities:
|
||||||||
Borrowings under Credit Facility
|
-
|
71,100,000
|
||||||
Repayments of Credit Facility
|
(23,000,000
|
)
|
(15,200,000
|
)
|
||||
Debt issuance costs
|
(59,600
|
)
|
(3,045,500
|
)
|
||||
Net cash (used in)/provided by financing activities
|
(23,059,600
|
)
|
52,854,500
|
|||||
Net increase/(decrease) in cash and cash equivalents
|
880,500
|
(272,200
|
)
|
|||||
Cash and cash equivalents, beginning of year
|
1,840,500
|
2,112,700
|
||||||
Cash and cash equivalents, end of year
|
$
|
2,721,000
|
$
|
1,840,500
|
December 31, 2014
|
||||||||||||
As reported
previously
|
As adjusted
|
Effect of change
|
||||||||||
Prepaid expenses and other
|
$
|
4,520,300
|
$
|
415,900
|
$
|
(4,104,400
|
)
|
|||||
Total assets
|
$
|
201,774,900
|
$
|
197,670,500
|
$
|
(4,104,400
|
)
|
|||||
Notes payable and accrued interest
|
$
|
133,590,600
|
$
|
129,486,200
|
$
|
(4,104,400
|
)
|
|||||
Total liabilities and stockholders' equity
|
$
|
201,774,900
|
$
|
197,670,500
|
$
|
(4,104,400
|
)
|
December 31,
2015
|
December 31,
2014
|
|||||||
Gross minimum lease payments receivable
|
$
|
14,074,500
|
$
|
-
|
||||
Less unearned interest
|
(2,178,900
|
)
|
-
|
|||||
Finance leases receivable
|
$
|
11,895,600
|
$
|
-
|
Years ending
|
||||
2016
|
$
|
3,268,800
|
||
2017
|
2,378,100
|
|||
2018
|
2,106,600
|
|||
2019
|
3,175,600
|
|||
2020
|
963,600
|
|||
Thereafter
|
2,181,800
|
|||
$
|
14,074,500
|
December 31, 2015
|
December 31, 2014
|
|||||||||||||||
Type
|
Number
owned
|
% of net book value
|
Number
owned
|
% of net book value
|
||||||||||||
Turboprop aircraft
|
16
|
45
|
%
|
25
|
52
|
%
|
||||||||||
Regional jet aircraft
|
8
|
49
|
%
|
8
|
43
|
%
|
||||||||||
Engines
|
5
|
6
|
%
|
5
|
5
|
%
|
For the Years Ended December 31,
|
||||||||
Operating Lease Revenue
|
2015
|
2014
|
||||||
Europe and United Kingdom
|
$
|
7,181,600
|
$
|
2,952,300
|
||||
North America
|
6,519,100
|
6,423,700
|
||||||
Africa
|
5,096,300
|
5,183,600
|
||||||
Asia
|
3,783,000
|
3,460,400
|
||||||
Central and South America
|
1,790,200
|
3,533,300
|
||||||
Australia
|
1,097,000
|
360,000
|
||||||
$
|
25,467,200
|
$
|
21,913,300
|
December 31,
|
||||||||
Net Book Value of Aircraft and Aircraft Engines Held for Lease
|
2015
|
2014
|
||||||
North America
|
$
|
44,368,100
|
$
|
65,423,400
|
||||
Europe and United Kingdom
|
42,162,900
|
43,468,700
|
||||||
Africa
|
27,234,800
|
28,858,200
|
||||||
Asia
|
27,132,800
|
16,588,900
|
||||||
Off lease
|
7,443,200
|
17,106,000
|
||||||
Australia
|
4,376,300
|
5,171,300
|
||||||
Central and South America
|
2,540,000
|
10,146,100
|
||||||
$
|
155,258,100
|
$
|
186,762,600
|
Years ending
|
||||
2016
|
$
|
22,041,900
|
||
2017
|
18,391,300
|
|||
2018
|
14,351,200
|
|||
2019
|
13,651,900
|
|||
2020
|
12,510,100
|
|||
Thereafter
|
25,086,200
|
|||
$
|
106,032,600
|
December 31,
2015
|
December 31,
2014
|
|||||||
Credit Facility principal
|
$
|
110,400,000
|
$
|
133,400,000
|
||||
Unamortized debt issuance costs
|
(2,814,000
|
)
|
(4,104,400
|
)
|
||||
Credit Facility accrued interest
|
35,600
|
190,600
|
||||||
$
|
107,621,600
|
$
|
129,486,200
|
For the Years Ended December 31,
|
||||||||
2015
|
2014
|
|||||||
Current tax provision:
|
||||||||
Federal
|
$
|
-
|
$
|
-
|
||||
State
|
800
|
800
|
||||||
Foreign
|
-
|
-
|
||||||
Current tax provision
|
800
|
800
|
||||||
Deferred tax provision/(benefit):
|
||||||||
Federal
|
3,539,900
|
(5,854,400
|
)
|
|||||
State
|
43,000
|
(98,200
|
)
|
|||||
Deferred tax provision/(benefit)
|
3,582,900
|
(5,952,600
|
)
|
|||||
Total income tax provision/(benefit)
|
$
|
3,583,700
|
$
|
(5,951,800
|
)
|
For the Years Ended December 31,
|
||||||||
2015
|
2014
|
|||||||
Income tax provision/(benefit) at statutory federal income tax rate
|
$
|
3,407,200
|
$
|
(5,863,600
|
)
|
|||
State tax provision/(benefit), net of federal benefit
|
44,300
|
(97,500
|
)
|
|||||
Prior year withholding tax adjustment
|
132,200
|
-
|
||||||
Other
|
-
|
9,300
|
||||||
Total income tax provision/(benefit)
|
$
|
3,583,700
|
$
|
(5,951,800
|
)
|
December 31,
|
||||||||
2015
|
2014
|
|||||||
Deferred tax assets:
|
||||||||
Maintenance reserves
|
$
|
1,121,600
|
$
|
2,138,900
|
||||
Current year tax losses
|
313,200
|
-
|
||||||
Alternative minimum tax credit
|
45,500
|
10,800
|
||||||
Bad debt allowance and other
|
34,700
|
961,100
|
||||||
Deferred tax assets
|
1,515,000
|
3,110,800
|
||||||
Deferred tax liabilities:
|
||||||||
Accumulated depreciation on aircraft and aircraft engines
|
(12,965,900
|
)
|
(10,450,000
|
)
|
||||
Deferred income
|
(753,300
|
)
|
(1,282,100
|
)
|
||||
Net deferred tax liabilities
|
$
|
(12,204,200
|
)
|
$
|
(8,621,300
|
)
|
For the Years Ended December 31,
|
||||||||
2015
|
2014
|
|||||||
Net income/(loss)
|
$
|
6,437,600
|
$
|
(11,294,000
|
)
|
|||
Weighted average shares outstanding for the period
|
1,544,285
|
1,543,257
|
||||||
Dilutive effect of warrants
|
-
|
-
|
||||||
Weighted average diluted shares used in calculation
of diluted earnings/(loss) per share
|
1,544,285
|
1,543,257
|
||||||
Basic earnings/(loss) per share
|
$
|
4.17
|
$
|
(7.32
|
)
|
|||
Diluted earnings/(loss) per share
|
$
|
4.17
|
$
|
(7.32
|
)
|
For the Years Ended December 31,
|
||||||||
2015
|
2014
|
|||||||
Management fees, net of approximately $1,200,000
of fees waived by JMC in 2014
|
$
|
5,581,400
|
$
|
3,864,900
|
||||
Acquisition fees
|
-
|
2,100,000
|
||||||
Remarketing fees
|
871,600
|
64,000
|
Exhibit
Number |
Description
|
10.24
|
Second Amended and Restated Management Agreement between JetFleet Management Corp. and the Company, dated August 17, 2015, incorporated herein by reference to Exhibit 99.1 to the Report on Form 8-K filed with the Securities Exchange Commission on August 17, 2015
|
31.1
|
Certification of Toni M. Perazzo, Interim Chief Executive Officer, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
31.2
|
Certification of Toni M. Perazzo, Chief Financial Officer, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
32.1*
|
Certification of Toni M. Perazzo, Interim Chief Executive Officer, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
32.2*
|
Certification of Toni M. Perazzo, Chief Financial Officer, pursuant to
Section 906 of the Sarbanes-Oxley Act of 2002
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101.INS
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XBRL Instance Document
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101.SCH
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XBRL Schema Document
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101.CAL
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XBRL Calculation Linkbase Document
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101.LAB
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XBRL Label Linkbase Document
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101.PRE
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XBRL Presentation Linkbase Document
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101.DEF
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XBRL Definition Linkbase Document
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Signature
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Title
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Dated
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Director, Interim President and Interim Chair of the Board of Directors (Principal Executive Officer) and
Senior Vice President-Finance and Secretary of the Registrant
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/s/ Toni M. Perazzo
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(Principal Financial and Accounting Officer)
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March 11, 2016
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Toni M. Perazzo
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/s/ Roy E. Hahn
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Director
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March 11, 2016
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Roy E. Hahn
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/s/ Thomas W. Orr
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Director
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March 11, 2016
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Thomas W. Orr
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/s/ Evan M. Wallach
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Director
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March 11, 2016
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Evan M. Wallach
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/s/ David P. Wilson
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Director
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March 11, 2016
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David P. Wilson
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I, Toni M. Perazzo, certify that:
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1. I have reviewed this annual report on Form 10-K of AeroCentury Corp.;
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2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
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3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
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4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the small business issuer and have:
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(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
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(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
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(c) Evaluated the effectiveness of the registrant business issuer’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
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(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
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5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
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(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
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(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
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March 11, 2016
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By:
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/s/ Toni M. Perazzo | |
Name: Toni M. Perazzo | |||
Title: Interim President & Chief Executive Officer | |||
I, Toni M. Perazzo, certify that:
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1. I have reviewed this annual report on Form 10-K of AeroCentury Corp.;
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2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
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3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
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4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the small business issuer and have:
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(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
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(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
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(c) Evaluated the effectiveness of the registrant business issuer’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
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(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the small business issuer’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
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5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
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(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
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(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
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March 11, 2016
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By:
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/s/ Toni M. Perazzo | |
Name: Toni M. Perazzo | |||
Title: Sr. V.P. Finance and Chief Financial Officer | |||
(1) the Report fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934, and
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(2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company at the dates and for the periods indicated.
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March 11, 2016
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By:
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/s/ Toni M. Perazzo | |
Name: Toni M. Perazzo | |||
Title: Interim President & Chief Executive Officer | |||
(1) the Report fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934, and
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(2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company at the dates and for the periods indicated.
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March 11, 2016
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By:
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/s/ Toni M. Perazzo | |
Name: Toni M. Perazzo | |||
Title: Sr. V.P. - Finance & Chief Financial Officer | |||
Document and Entity Information - USD ($) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Mar. 31, 2016 |
Jun. 30, 2015 |
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Document and Entity Information [Abstract] | |||
Entity Registrant Name | AEROCENTURY CORP | ||
Entity Central Index Key | 0001036848 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Public Float | $ 0 | ||
Entity Common Stock, Shares Outstanding | 1,566,699 | ||
Document Fiscal Year Focus | 2015 | ||
Document Fiscal Period Focus | FY | ||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2015 |
Balance Sheets (Parenthetical) - USD ($) |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|
Assets: | ||
Accounts receivable, deferred rent | $ 359,200 | $ 111,300 |
Aircraft and aircraft engines held for lease, accumulated depreciation | 31,074,600 | 38,962,800 |
Liabilities: | ||
Unamortized debt issuance costs | $ 2,814,000 | $ 4,104,400 |
Stockholders' equity: | ||
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, authorized (in shares) | 2,000,000 | 2,000,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Preferred stock, outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, authorized (in shares) | 10,000,000 | 10,000,000 |
Common stock, issued (in shares) | 1,629,999 | 1,606,557 |
Common stock, outstanding (in shares) | 1,629,999 | 1,606,557 |
Treasury stock (in shares) | 63,300 | 63,300 |
Statements of Operations (Parenthetical) |
12 Months Ended |
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Dec. 31, 2014
USD ($)
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Expenses: | |
Management fee, net waived by JMC | $ 1,200,000 |
Statements of Stockholders' Equity - USD ($) |
Common Stock [Member] |
Paid-in Capital [Member] |
Retained Earnings [Member] |
Treasury Stock [Member] |
Total |
---|---|---|---|---|---|
Balance at Dec. 31, 2013 | $ 1,600 | $ 14,780,100 | $ 31,857,300 | $ (504,100) | $ 46,134,900 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income (loss) | 0 | 0 | (11,294,000) | 0 | (11,294,000) |
Balance at Dec. 31, 2014 | 1,600 | 14,780,100 | 20,563,300 | (504,100) | 34,840,900 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income (loss) | 0 | 0 | 6,437,600 | 0 | 6,437,600 |
Balance at Dec. 31, 2015 | $ 1,600 | $ 14,780,100 | $ 27,000,900 | $ (504,100) | $ 41,278,500 |
Statements of Cash Flows (Parenthetical) - USD ($) |
12 Months Ended | |
---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
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Statements of Cash Flows [Abstract] | ||
Interest paid | $ 5,037,900 | $ 4,117,900 |
Income taxes paid | $ 25,800 | $ 800 |
Organization and Summary of Significant Accounting Policies |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization and Summary of Significant Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization and Summary of Significant Accounting Policies | 1. Organization and Summary of Significant Accounting Policies (a) The Company and Basis of Presentation AeroCentury Corp. ("the Company"), a Delaware corporation incorporated in 1997, typically acquires used regional aircraft and engines for lease to foreign and domestic regional carriers. (b) Use of Estimates The Company's financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP"). The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable for making judgments that are not readily apparent from other sources. The most significant estimates with regard to these financial statements are the residual values and useful lives of the assets, the amount and timing of cash flows associated with each asset that are used to evaluate whether assets are impaired, accrued maintenance costs, accounting for income taxes, and the amounts recorded as allowances for doubtful accounts. (c) Cash and cash equivalents The Company considers highly liquid investments readily convertible into known amounts of cash, with original maturities of 90 days or less from the date of acquisition, as cash equivalents. (d) Aircraft Capitalization and Depreciation The Company's interests in aircraft and aircraft engines are recorded at cost, which includes acquisition costs. Since inception, the Company has typically purchased only used aircraft and aircraft engines. It is the Company's policy to hold aircraft for approximately twelve years unless market conditions dictate otherwise. Therefore, depreciation of aircraft is initially computed using the straight-line method over the anticipated holding period, usually twelve years, to an estimated residual value based on appraisal. For an aircraft engine held for lease as a spare, the Company estimates the length of time that it will hold the aircraft engine based upon estimated usage, repair costs and other factors, and depreciates it to the appraised residual value over such period using the straight-line method. The Company periodically reviews plans for lease or sale of its aircraft and aircraft engines and changes, as appropriate, the remaining expected holding period for such assets. Estimated residual values are reviewed and adjusted periodically, based upon updated estimates obtained from an independent appraiser. Decreases in the fair value of aircraft could affect not only the current value, discussed below, but also the estimated residual value. Assets that are held for sale are not subject to depreciation and are separately classified on the balance sheet. Such assets are carried at the lower of their carrying value or estimated fair values, less costs to sell. (e) Fair Value Measurements Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs, to the extent possible. The fair value hierarchy under GAAP is based on three levels of inputs. Level 1 - Quoted prices in active markets for identical assets or liabilities. Level 2 - Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Assets and Liabilities Measured and Recorded at Fair Value on a Recurring Basis The carrying amount of the Company's money market funds included in cash and cash equivalents was $1,946,600 and $1,044,300 at December 31, 2015 and December 31, 2014, respectively. The fair value of the Company's money market funds would be categorized as Level 1 under the GAAP fair value hierarchy. As of December 31, 2015 and December 31, 2014, there were no liabilities that were required to be measured and recorded at fair value on a recurring basis. Assets Measured and Recorded at Fair Value on a Nonrecurring Basis The Company determines fair value of long-lived assets held and used, such as aircraft and aircraft engines held for lease and assets held for sale, by reference to independent appraisals, quoted market prices (e.g., offers to purchase) and other factors. An impairment charge is recorded when the Company believes that the carrying value of an asset will not be recovered through future net cash flows and that the asset's carrying value exceeds its fair value. Assets held for lease The Company recorded impairment charges on its aircraft held for lease of $147,500 and $3,124,200 in 2015 and 2014, respectively. Assets held for sale During 2015 and 2014, the Company recorded impairment charges of $1,134,800 and $15,612,300, respectively, related to its assets held for sale. The fair values of such assets as of December 31, 2015 and December 31, 2014 were $3,689,100 and $6,522,900, respectively. The fair value of such assets would be categorized as Level 3 under the GAAP fair value hierarchy. Fair Value of Other Financial Instruments The Company's financial instruments, other than cash and cash equivalents, consist principally of finance leases receivable and amounts borrowed under its credit facility (the "Credit Facility"). The fair value of accounts receivable, finance leases receivable, accounts payable and the Company's maintenance reserves and accrued maintenance costs approximates the carrying value of these financial instruments. Borrowings under the Company's Credit Facility bear floating rates of interest that reset periodically to a market benchmark rate plus a credit margin. The Company believes the effective interest rate under the Credit Facility approximates current market rates for such indebtedness at the balance sheet date, and therefore that the outstanding principal and accrued interest of $110,435,600 and $133,590,600 at December 31, 2015 and December 31, 2014, respectively, approximate its fair value. The fair value of the Company's outstanding balance of its Credit Facility would be categorized as Level 3 under the GAAP fair value hierarchy. (f) Impairment of Long-lived Assets The Company reviews assets for impairment when there has been an event or a change in circumstances indicating that the carrying amount of a long-lived asset may not be recoverable. In addition, the Company routinely reviews all long-lived assets for impairment annually. Recoverability of an asset is measured by comparison of its carrying amount to the future estimated undiscounted cash flows (without interest charges) that the asset is expected to generate. Estimates are based on currently available market data and independent appraisals and are subject to fluctuation from time to time. If these estimated future cash flows are less than the carrying value of an asset at the time of evaluation, any impairment to be recognized is measured by the amount by which the carrying amount of the asset exceeds its fair value. Fair value is determined by reference to independent appraisals and other factors considered relevant by management. Significant management judgment is required in the forecasting of future operating results that are used in the preparation of estimated future undiscounted cash flows and, if different conditions prevail in the future, material write-downs may occur. As discussed in (e) Fair Value Measurements above, the Company recorded impairment provisions totaling $1,282,300 and $18,736,500 in 2015 and 2014, respectively. (g) Deferred Financing Costs and Commitment Fees Costs incurred in connection with debt financing are deferred and amortized over the term of the debt using the effective interest method or, in certain instances where the differences are not material, using the straight-line method. Costs incurred in connection with the Company's Credit Facility are deferred and amortized using the straight-line method in accordance with Note 1(o). Commitment fees for unused funds are expensed as incurred. (h) Security deposits The Company's leases are typically structured so that if any event of default occurs under a lease, the Company may apply all or a portion of the lessee's security deposit to cure such default. If such application of the security deposit is made, the lessee typically is required to replenish and maintain the full amount of the deposit during the remaining lease term. All of the security deposits received by the Company are refundable to the lessee at the end of the lease upon satisfaction of all lease terms. (i) Taxes As part of the process of preparing the Company's financial statements, management estimates income taxes in each of the jurisdictions in which the Company operates. This process involves estimating the Company's current tax exposure under the most recent tax laws and assessing temporary differences resulting from differing treatment of items for tax and GAAP purposes. These differences result in deferred tax assets and liabilities, which are included in the balance sheet. Management also assesses the likelihood that the Company's deferred tax assets will be recovered from future taxable income, and, to the extent management believes it is more likely than not that some portion or all of the deferred tax assets will not be realized, the Company establishes a valuation allowance. To the extent the Company establishes a valuation allowance or changes the allowance in a period, the Company reflects the corresponding increase or decrease within the tax provision in the statement of operations. Significant management judgment is required in determining the Company's future taxable income for purposes of assessing the Company's ability to realize any benefit from its deferred taxes. The Company accrues non-income based sales, use, value added and franchise taxes as other tax expense in the statements of operations. (j) Revenue Recognition, Accounts Receivable and Allowance for Doubtful Accounts Revenue from leasing of aircraft assets pursuant to operating leases is recognized as revenue on a straight-line basis over the terms of the applicable lease agreements. Deferred payments are recorded as accrued rent when the cash rent received is lower than the straight-line revenue recognized. Such receivables decrease over the term of the applicable leases. Interest income is recognized on finance leases based on the interest rate implicit in the lease and the outstanding balance of the lease receivable. Maintenance reserves retained by the Company at lease-end are recognized as maintenance reserves revenue. In instances where collectability is not reasonably assured, the Company recognizes revenue as cash payments are received. The Company estimates and charges to income a provision for bad debts based on its experience with each specific customer, the amount and length of payment arrearages, and its analysis of the lessee's overall financial condition. If the financial condition of any of the Company's customers deteriorates, it could result in actual losses exceeding any estimated allowances. The Company had no allowance for doubtful accounts at December 31, 2015 and 2014. (k) Comprehensive Income/(Loss) The Company does not have any comprehensive income other than the revenue and expense items included in the statements of operations. As a result, comprehensive income/(loss) equals net income/(loss) for the years ended December 31, 2015 and 2014. (l) Finance Leases The five aircraft finance leases that commenced in 2015 contain lessee purchase options at prices substantially below the assets' estimated residual values at the exercise date for the option. Consequently, the Company considers the purchase options to be bargain purchase options and has classified the leases as sales-type finance leases for financial accounting purposes. The Company reports the discounted present value of (i) future minimum lease payments (including the bargain purchase option) and (ii) any residual value not subject to a bargain purchase option as a finance lease receivable on its balance sheets and accrues interest on the balance of the finance lease receivable based on the interest rate inherent in the applicable lease over the term of the lease. For sales-type finance leases, the Company recognizes the difference between the net book value of the aircraft and the net investment in sales-type finance leases as a gain or loss, less any initial direct costs and lease incentives. Two engines that were previously subject to finance leases were returned to the Company during 2014 and the finance lease receivable balances were reclassified to aircraft and aircraft engines held for lease on the Company's balance sheet. The Company recognized interest earned on finance leases as "other income" in the amount of $489,700 and $150,000 in 2015 and 2014, respectively. (m) Maintenance Reserves and Accrued Maintenance Costs Maintenance costs under the Company's triple net leases are generally the responsibility of the lessees. Most of the Company's leases require payment of maintenance reserves, which are based upon lessee-reported usage and billed monthly, and are intended to accumulate and be applied by the Company toward reimbursement of most or all of the cost of the lessees' performance of certain maintenance obligations under the leases. Such reimbursements reduce the associated maintenance reserve liability. Maintenance reserves are characterized as either refundable or non-refundable depending on their disposition at lease-end. The Company retains non-refundable maintenance reserves at lease-end, even if the lessee has met all of its obligations under the lease, including any return conditions applicable to the leased asset, while refundable reserves are returned to the lessee under such circumstances. Any reserves retained by the Company at lease end are recorded as revenue at that time. Accrued maintenance costs include (i) maintenance for work performed for off-lease aircraft, which is not related to the release of maintenance reserves received from lessees and which is expensed as incurred and (ii) lessor maintenance obligations assumed and recognized as a liability upon acquisition of aircraft subject to a lease with such provisions. (n) Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update No. 2014-09 that created the new Topic 606 ("Topic 606") in the Accounting Standards Codification ("ASC"). Topic 606 also included numerous conforming additions and amendments to other Topics within the ASC. Topic 606 established new rules that affect the amount and timing of revenue recognition for contracts with customers, but does not affect lease accounting and reporting. As such, adoption of these provisions will not affect the Company's lease revenues but may affect the reporting of other of the Company's revenues. On August 12, 2015, the FASB deferred the effective date of the provisions included in Topic 606 to years commencing after December 15, 2017. Topic 606 can be adopted early for years commencing after December 15, 2016, and may be reflected using either a full retrospective method or a simplified method that does not recast prior periods but does disclose the effect of the adoption on the current period financial statements. The Company has not yet determined either the potential impact on its financial statements or the method it will elect to use in connection with the adoption of the changes included in Topic 606. In August 2014, the FASB issued ASU 2014-15, "Presentation of Financial Statements - Going Concern," which added Subtopic 205-40 to the ASC ("Subtopic 205-40"). Subtopic 205-40 requires management to determine whether substantial doubt exists concerning the reporting entity's ability to continue as a going concern, in which case certain disclosures will be required. Subtopic 205-40 affects financial statement presentation but not methods of accounting, and is effective on a prospective basis for annual periods ending after December 15, 2016 and each reporting period thereafter, although early adoption is permitted. The Company has not early adopted Subtopic 205-40. In January 2016, the FASB issued ASU 2016-01, "Financial Instruments - Overall - Recognition and Measurement of Financial Assets and Financial Liabilities," which added and amended several ASC Subtopics ("ASU 2016-01"). ASU 2016-01 affects recognition, measurement and disclosures concerning financial instruments, including changes to (i) accounting for equity investments, (ii) accounting for financial liabilities accounted for under the fair value option, (iii) measurement of fair value of financial assets and liabilities based on the exit price notion in ASC 820, and (iv) presentation and disclosure requirements for financial instruments. ASU 2016-01 is effective on a prospective basis for annual periods beginning after December 15, 2017 and each reporting period thereafter. The Company has not yet determined the impact of adopting ASU 2016-01 on its financial statements. In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)" ("ASU 2016-02"). ASU 2016-02 is effective for public companies for years beginning after December 15, 2018, although early adoption is permitted. ASU 2016-02 substantially modifies lessee accounting for leases, requiring that lessees recognize lease assets and liabilities for leases extending beyond one year. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The new standard requires a lessor to classify leases as sales-type, finance or operating. A lease will be treated as a sale if it transfers all of the risks and rewards, as well as control of the underlying asset, to the lessee. If risks and rewards are conveyed without the transfer of control, the lease is treated as a financing. If the lessor doesn't convey risks and rewards or control, an operating lease results. A modified retrospective transition approach is required for lessors for sales-type, direct financing, and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. The Company has not yet determined the effect of adopting ASU 2016-02 on its financial statements. (o) Change in Accounting Principle The Company historically presented deferred debt issuance costs, or fees related to directly issuing debt, as assets on its balance sheets. On April 7, 2015, the FASB issued ASU 2015-03, "Interest: Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs" ("Subtopic 835-30"). Subtopic 835-30 requires the presentation of unamortized debt issuance costs on the Company's balance sheet as a direct deduction from the debt's value. Subtopic 835-30 affects financial statement presentation only. The recognition and measurement guidance for debt issuance costs is not affected. Therefore, these costs will continue to be amortized as interest expense. Subtopic 835-30 is effective on a prospective basis for reporting periods that start after December 15, 2015, although early adoption is permitted. The Company has early adopted Subtopic 835-30 effective beginning the first quarter ended March 31, 2015 and applied this guidance retrospectively to all prior periods presented in the Company's financial statements. In conjunction with this adoption, the Company has made an accounting policy election to present debt issuance costs related to revolving credit facility arrangements as a deduction from the related liability. The reclassification does not impact net income as previously reported or any prior amounts reported in the statement of cash flows. The following table presents the effect of the retrospective application of this change in accounting principle on the Company's balance sheet as of December 31, 2014.
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Finance Leases Receivable |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2015 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Finance Leases Receivable [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Finance Leases Receivable | 2. Finance Leases Receivable During 2015, the Company leased three turboprop aircraft pursuant to sales-type finance leases and recorded related gains totaling $4,262,800. The Company also amended and extended the leases for two aircraft that had been subject to operating leases. The two aircraft became subject to sales-type finance leases, for which the Company recorded gains totaling $916,400 during 2015. As discussed in Note 13, in January 2016, one of the two aircraft was sold to the lessee pursuant to a purchase option. At December 31, 2015 and December 31, 2014, the net investment included in sales-type finance leases receivable were as follows:
As of December 31, 2015, minimum future lease revenue payments receivable under sales-type finance leases were as follows:
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Aircraft and Aircraft Engines Held for Lease or Sale |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2015 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Aircraft and Aircraft Engines Held for Lease or Sale [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Aircraft and Aircraft Engines Held for Lease or Sale | 3. Aircraft and Aircraft Engines Held for Lease or Sale (a) Assets Held for Lease At December 31, 2015 and December 31, 2014, the Company's aircraft and aircraft engines held for lease consisted of the following:
During 2015 and 2014, the Company used cash of $1,333,700 and $74,529,000, respectively, for the purchase and capital improvement of aircraft and engines. During 2015, the Company recorded net gains totaling $5,713,600 from the sale of two turboprop aircraft. During 2014, the Company recorded net gains totaling $3,147,200 from the sale of nine turboprop aircraft and an engine. During 2015, the Company extended the leases for six of its assets and leased two assets that had been off lease at December 31, 2014. Six of the Company's assets held for lease, comprised of three turboprop aircraft and three engines, were off lease at December 31, 2015, representing 5% of the net book value of the Company's aircraft and engines held for lease. (b) Assets Held for Sale Assets held for sale at December 31, 2015 consist of a turboprop aircraft, three turboprop airframes being sold in parts, and four regional jet aircraft. During 2015 and 2014, the Company received $313,800 and $312,100, respectively, from the sale of parts belonging to the two airframes, which proceeds reduced their carrying values. During 2015, the Company also sold a turboprop aircraft and a regional jet aircraft that had been held for sale at December 31, 2014 and recorded gains totaling $1,077,100. As discussed in Note 13, the Company sold two of the regional jet aircraft in February 2016. |
Operating Segments |
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Operating Segments [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating Segments | 4. Operating Segments The Company operates in one business segment, the leasing of regional aircraft to foreign and domestic regional airlines, and therefore does not present separate segment information for lines of business. Approximately 16% and 18% of the Company's operating lease revenue was derived from lessees domiciled in the United States during 2015 and 2014, respectively. All revenues relating to aircraft leased and operated internationally are denominated and payable in U.S. dollars. The tables below set forth geographic information about the Company's operating lease revenue for leased aircraft and aircraft equipment, grouped by domicile of the lessee:
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Concentration of Credit Risk |
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Concentration of Credit Risk [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||
Concentration of Credit Risk | 5. Concentration of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash deposits and receivables. The Company places its deposits with financial institutions and other creditworthy issuers and limits the amount of credit exposure to any one party. For the year ended December 31, 2015 the Company had three significant customers, which accounted for 17%, 16% and 15%, respectively, of lease revenue. For the year ended December 31, 2014 the Company had four significant customers, which accounted for 20%, 18%, 14% and 11%, respectively, of lease revenue. At December 31, 2015, the Company had a receivable of $1,201,800 for an approved insurance claim related to one of the Company's turboprop aircraft that is held for sale. The Company expects to receive the insurance proceeds in early 2016. At December 31, 2015, the Company also had receivables from three customers totaling $2,719,700 representing 51% of the Company's total accounts receivable. In early 2016, the Company received payments totaling $1,473,700 related to these receivables. At December 31, 2014, the Company had receivables from two customers totaling $1,130,000, representing 56% of the Company's total receivables. The two customers paid the amounts owed in full in early 2015. As of December 31, 2015, minimum future lease revenue payments receivable under noncancelable operating leases were as follows:
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Notes Payable and Accrued Interest |
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Notes Payable and Accrued Interest [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||
Notes Payable and Accrued Interest | 6. Notes Payable and Accrued Interest At December 31, 2015 and December 31, 2014, the Company's notes payable and accrued interest consisted of the following:
The Company's $150 million Credit Facility is provided by a syndicate of banks and is secured by all of the assets of the Company, including its aircraft and engine portfolio. The Credit Facility, which expires on May 31, 2019, can be expanded to a maximum of $180 million. The Company was in compliance with all covenants under the Credit Facility at December 31, 2015 and December 31, 2014. The unused amount of the Credit Facility was $39,600,000 and $16,600,000 as of December 31, 2015 and December 31, 2014, respectively. The weighted average interest rate on the Credit Facility was 3.80% and 3.58% at December 31, 2015 and December 31, 2014, respectively. |
Contingencies |
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Dec. 31, 2015 | |
Contingencies [Abstract] | |
Contingencies | 7. Contingencies In the ordinary conduct of the Company's business, the Company is subject to lawsuits, arbitrations and administrative proceedings from time to time. The Company believes that the outcome of any existing or known threatened proceedings, even if determined adversely, should not have a material adverse effect on the Company's business, financial condition, liquidity or results of operations. |
Stockholder Rights Plan |
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Dec. 31, 2015 | |
Stockholder Rights Plan [Abstract] | |
Stockholder Rights Plan | 8. Stockholder Rights Plan In December 2009, the Company's Board of Directors adopted a stockholder rights plan granting a dividend of one stock purchase right for each share of the Company's common stock outstanding as of December 18, 2009 and the Company entered into a rights agreement dated December 1, 2009 in connection therewith. The rights become exercisable only upon the occurrence of certain events specified in the rights agreement, including the acquisition of 15% of the Company's outstanding common stock by a person or group in certain circumstances. Each right allows the holder, other than an "acquiring person," to purchase one one-hundredth of a share (a unit) of Series A Preferred Stock at an initial purchase price of $97.00 under circumstances described in the rights agreement. The purchase price, the number of units of preferred stock and the type of securities issuable upon exercise of the rights are subject to adjustment. The rights expire at the close of business December 1, 2019 unless earlier redeemed or exchanged. Until a right is exercised, the holder thereof, as such, has no rights as a stockholder of the Company, including the right to vote or to receive dividends. |
Income Taxes |
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Income Taxes [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes | 9. Income Taxes The items comprising the income tax provision are as follows:
Total income tax expense/(benefit) differs from the amount that would be provided by applying the statutory federal income tax rate to pretax earnings as illustrated below:
Temporary differences and carry-forwards that give rise to a significant portion of deferred tax assets and liabilities as of December 31, 2015 and 2014 were as follows:
The current year federal operating loss carryovers of approximately $922,000 will be available to offset taxable income in the two preceding years and in future years through 2035. The current year state operating loss carryovers of approximately $24,000 will be available to offset taxable income in the two preceding years and in future years through 2035. The Company expects to utilize the net operating loss carryovers remaining at December 31, 2015 in future years. At December 31, 2015 and December 31, 2014, the Company had no material uncertain tax positions. The Company accounts for interest related to uncertain tax positions as interest expense, and for income tax penalties as tax expense. All of the Company's tax years remain open to examination other than as barred in the various jurisdictions by statutes of limitation. |
Computation of Earnings Per Share |
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Computation of Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Computation of Earnings Per Share | 10. Computation of Earnings Per Share Basic and diluted earnings per share are calculated as follows:
Basic earnings per common share is computed using net income and the weighted average number of common shares outstanding during the period. Diluted earnings per common share are computed using net income and the weighted average number of common shares outstanding, assuming dilution. Weighted average common shares outstanding, assuming dilution, include potentially dilutive common shares outstanding during the period. Potentially dilutive common shares include the assumed exercise of warrants using the treasury stock method. For the year ended December 31, 2014, warrants for 81,224 shares were not included in the calculation of diluted loss per share because the effect would have been anti-dilutive. As discussed in Note 12, the warrants were exercised on December 16, 2015 and 23,442 shares of Common Stock were issued to the warrantholders. |
Related Party Transactions |
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Related Party Transactions [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||
Related Party Transactions | 11. Related Party Transactions The Company's portfolio of leased aircraft assets is managed and administered under the terms of a management agreement with JetFleet Management Corp. ("JMC"), which is an integrated aircraft management, marketing and financing business and a subsidiary of JetFleet Holding Corp. ("JHC"). Certain officers of the Company are also officers of JHC and JMC and hold significant ownership positions in both JHC and the Company. Under the management agreement, JMC receives a monthly management fee based on the net asset value of the assets under management. Such fee, totaling approximately $1,200,000, was waived by JMC for the fourth quarter of 2014. JMC also receives an acquisition fee for locating assets for the Company. Acquisition fees are included in the cost basis of the asset purchased. JMC may receive a remarketing fee in connection with the re-lease or sale of the Company's assets. Remarketing fees are amortized over the applicable lease term or included in the gain or loss on sale. Fees incurred during 2015 and 2014 were as follows:
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Warrants |
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Dec. 31, 2015 | |
Warrants [Abstract] | |
Warrants | 12. Warrants As part of a previous subordinated debt financing, which was fully repaid in December 2011, the Company issued warrants to purchase up to 81,224 shares of the Company's common stock at $8.75 per share. The warrants were exercised on December 16, 2015 on a "cashless" basis, resulting in the issuance on that date of 23,442 net shares of Common Stock to the exercising holders of the warrants. |
Subsequent Events |
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Dec. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | 13. Subsequent Events In January 2016, the Company sold a turboprop aircraft and recorded a gain of approximately $19,000. The aircraft had been subject to a sales-type finance lease and was sold pursuant to a lessee purchase option. In February 2016, the Company sold two regional jet aircraft that had been held for sale and had been written down to their estimated sales proceeds at December 31, 2015. |
Organization and Summary of Significant Accounting Policies (Policies) |
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Organization and Summary of Significant Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The Company and Basis of Presentation | (a) The Company and Basis of Presentation AeroCentury Corp. ("the Company"), a Delaware corporation incorporated in 1997, typically acquires used regional aircraft and engines for lease to foreign and domestic regional carriers. |
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Use of Estimates | (b) Use of Estimates The Company's financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP"). The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable for making judgments that are not readily apparent from other sources. The most significant estimates with regard to these financial statements are the residual values and useful lives of the assets, the amount and timing of cash flows associated with each asset that are used to evaluate whether assets are impaired, accrued maintenance costs, accounting for income taxes, and the amounts recorded as allowances for doubtful accounts. |
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Cash and Cash equivalents | (c) Cash and cash equivalents The Company considers highly liquid investments readily convertible into known amounts of cash, with original maturities of 90 days or less from the date of acquisition, as cash equivalents. |
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Aircraft Capitalization and Depreciation | (d) Aircraft Capitalization and Depreciation The Company's interests in aircraft and aircraft engines are recorded at cost, which includes acquisition costs. Since inception, the Company has typically purchased only used aircraft and aircraft engines. It is the Company's policy to hold aircraft for approximately twelve years unless market conditions dictate otherwise. Therefore, depreciation of aircraft is initially computed using the straight-line method over the anticipated holding period, usually twelve years, to an estimated residual value based on appraisal. For an aircraft engine held for lease as a spare, the Company estimates the length of time that it will hold the aircraft engine based upon estimated usage, repair costs and other factors, and depreciates it to the appraised residual value over such period using the straight-line method. The Company periodically reviews plans for lease or sale of its aircraft and aircraft engines and changes, as appropriate, the remaining expected holding period for such assets. Estimated residual values are reviewed and adjusted periodically, based upon updated estimates obtained from an independent appraiser. Decreases in the fair value of aircraft could affect not only the current value, discussed below, but also the estimated residual value. Assets that are held for sale are not subject to depreciation and are separately classified on the balance sheet. Such assets are carried at the lower of their carrying value or estimated fair values, less costs to sell. |
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Fair Value Measurements | (e) Fair Value Measurements Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs, to the extent possible. The fair value hierarchy under GAAP is based on three levels of inputs. Level 1 - Quoted prices in active markets for identical assets or liabilities. Level 2 - Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Assets and Liabilities Measured and Recorded at Fair Value on a Recurring Basis The carrying amount of the Company's money market funds included in cash and cash equivalents was $1,946,600 and $1,044,300 at December 31, 2015 and December 31, 2014, respectively. The fair value of the Company's money market funds would be categorized as Level 1 under the GAAP fair value hierarchy. As of December 31, 2015 and December 31, 2014, there were no liabilities that were required to be measured and recorded at fair value on a recurring basis. Assets Measured and Recorded at Fair Value on a Nonrecurring Basis The Company determines fair value of long-lived assets held and used, such as aircraft and aircraft engines held for lease and assets held for sale, by reference to independent appraisals, quoted market prices (e.g., offers to purchase) and other factors. An impairment charge is recorded when the Company believes that the carrying value of an asset will not be recovered through future net cash flows and that the asset's carrying value exceeds its fair value. Assets held for lease The Company recorded impairment charges on its aircraft held for lease of $147,500 and $3,124,200 in 2015 and 2014, respectively. Assets held for sale During 2015 and 2014, the Company recorded impairment charges of $1,134,800 and $15,612,300, respectively, related to its assets held for sale. The fair values of such assets as of December 31, 2015 and December 31, 2014 were $3,689,100 and $6,522,900, respectively. The fair value of such assets would be categorized as Level 3 under the GAAP fair value hierarchy. Fair Value of Other Financial Instruments The Company's financial instruments, other than cash and cash equivalents, consist principally of finance leases receivable and amounts borrowed under its credit facility (the "Credit Facility"). The fair value of accounts receivable, finance leases receivable, accounts payable and the Company's maintenance reserves and accrued maintenance costs approximates the carrying value of these financial instruments. Borrowings under the Company's Credit Facility bear floating rates of interest that reset periodically to a market benchmark rate plus a credit margin. The Company believes the effective interest rate under the Credit Facility approximates current market rates for such indebtedness at the balance sheet date, and therefore that the outstanding principal and accrued interest of $110,435,600 and $133,590,600 at December 31, 2015 and December 31, 2014, respectively, approximate its fair value. The fair value of the Company's outstanding balance of its Credit Facility would be categorized as Level 3 under the GAAP fair value hierarchy. |
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Impairment of Long-lived Assets | (f) Impairment of Long-lived Assets The Company reviews assets for impairment when there has been an event or a change in circumstances indicating that the carrying amount of a long-lived asset may not be recoverable. In addition, the Company routinely reviews all long-lived assets for impairment annually. Recoverability of an asset is measured by comparison of its carrying amount to the future estimated undiscounted cash flows (without interest charges) that the asset is expected to generate. Estimates are based on currently available market data and independent appraisals and are subject to fluctuation from time to time. If these estimated future cash flows are less than the carrying value of an asset at the time of evaluation, any impairment to be recognized is measured by the amount by which the carrying amount of the asset exceeds its fair value. Fair value is determined by reference to independent appraisals and other factors considered relevant by management. Significant management judgment is required in the forecasting of future operating results that are used in the preparation of estimated future undiscounted cash flows and, if different conditions prevail in the future, material write-downs may occur. As discussed in (e) Fair Value Measurements above, the Company recorded impairment provisions totaling $1,282,300 and $18,736,500 in 2015 and 2014, respectively. |
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Deferred Financing Costs and Commitment Fees | (g) Deferred Financing Costs and Commitment Fees Costs incurred in connection with debt financing are deferred and amortized over the term of the debt using the effective interest method or, in certain instances where the differences are not material, using the straight-line method. Costs incurred in connection with the Company's Credit Facility are deferred and amortized using the straight-line method in accordance with Note 1(o). Commitment fees for unused funds are expensed as incurred. |
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Security deposits | (h) Security deposits The Company's leases are typically structured so that if any event of default occurs under a lease, the Company may apply all or a portion of the lessee's security deposit to cure such default. If such application of the security deposit is made, the lessee typically is required to replenish and maintain the full amount of the deposit during the remaining lease term. All of the security deposits received by the Company are refundable to the lessee at the end of the lease upon satisfaction of all lease terms. |
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Taxes | (i) Taxes As part of the process of preparing the Company's financial statements, management estimates income taxes in each of the jurisdictions in which the Company operates. This process involves estimating the Company's current tax exposure under the most recent tax laws and assessing temporary differences resulting from differing treatment of items for tax and GAAP purposes. These differences result in deferred tax assets and liabilities, which are included in the balance sheet. Management also assesses the likelihood that the Company's deferred tax assets will be recovered from future taxable income, and, to the extent management believes it is more likely than not that some portion or all of the deferred tax assets will not be realized, the Company establishes a valuation allowance. To the extent the Company establishes a valuation allowance or changes the allowance in a period, the Company reflects the corresponding increase or decrease within the tax provision in the statement of operations. Significant management judgment is required in determining the Company's future taxable income for purposes of assessing the Company's ability to realize any benefit from its deferred taxes. The Company accrues non-income based sales, use, value added and franchise taxes as other tax expense in the statements of operations. |
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Revenue Recognition, Accounts Receivable and Allowance for Doubtful Accounts | (j) Revenue Recognition, Accounts Receivable and Allowance for Doubtful Accounts Revenue from leasing of aircraft assets pursuant to operating leases is recognized as revenue on a straight-line basis over the terms of the applicable lease agreements. Deferred payments are recorded as accrued rent when the cash rent received is lower than the straight-line revenue recognized. Such receivables decrease over the term of the applicable leases. Interest income is recognized on finance leases based on the interest rate implicit in the lease and the outstanding balance of the lease receivable. Maintenance reserves retained by the Company at lease-end are recognized as maintenance reserves revenue. In instances where collectability is not reasonably assured, the Company recognizes revenue as cash payments are received. The Company estimates and charges to income a provision for bad debts based on its experience with each specific customer, the amount and length of payment arrearages, and its analysis of the lessee's overall financial condition. If the financial condition of any of the Company's customers deteriorates, it could result in actual losses exceeding any estimated allowances. The Company had no allowance for doubtful accounts at December 31, 2015 and 2014. |
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Comprehensive Income/(Loss) | (k) Comprehensive Income/(Loss) The Company does not have any comprehensive income other than the revenue and expense items included in the statements of operations. As a result, comprehensive income/(loss) equals net income/(loss) for the years ended December 31, 2015 and 2014. |
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Finance Leases | (l) Finance Leases The five aircraft finance leases that commenced in 2015 contain lessee purchase options at prices substantially below the assets' estimated residual values at the exercise date for the option. Consequently, the Company considers the purchase options to be bargain purchase options and has classified the leases as sales-type finance leases for financial accounting purposes. The Company reports the discounted present value of (i) future minimum lease payments (including the bargain purchase option) and (ii) any residual value not subject to a bargain purchase option as a finance lease receivable on its balance sheets and accrues interest on the balance of the finance lease receivable based on the interest rate inherent in the applicable lease over the term of the lease. For sales-type finance leases, the Company recognizes the difference between the net book value of the aircraft and the net investment in sales-type finance leases as a gain or loss, less any initial direct costs and lease incentives. Two engines that were previously subject to finance leases were returned to the Company during 2014 and the finance lease receivable balances were reclassified to aircraft and aircraft engines held for lease on the Company's balance sheet. The Company recognized interest earned on finance leases as "other income" in the amount of $489,700 and $150,000 in 2015 and 2014, respectively. |
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Maintenance Reserves and Accrued Maintenance Costs | (m) Maintenance Reserves and Accrued Maintenance Costs Maintenance costs under the Company's triple net leases are generally the responsibility of the lessees. Most of the Company's leases require payment of maintenance reserves, which are based upon lessee-reported usage and billed monthly, and are intended to accumulate and be applied by the Company toward reimbursement of most or all of the cost of the lessees' performance of certain maintenance obligations under the leases. Such reimbursements reduce the associated maintenance reserve liability. Maintenance reserves are characterized as either refundable or non-refundable depending on their disposition at lease-end. The Company retains non-refundable maintenance reserves at lease-end, even if the lessee has met all of its obligations under the lease, including any return conditions applicable to the leased asset, while refundable reserves are returned to the lessee under such circumstances. Any reserves retained by the Company at lease end are recorded as revenue at that time. Accrued maintenance costs include (i) maintenance for work performed for off-lease aircraft, which is not related to the release of maintenance reserves received from lessees and which is expensed as incurred and (ii) lessor maintenance obligations assumed and recognized as a liability upon acquisition of aircraft subject to a lease with such provisions. |
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Recent Accounting Pronouncements | (n) Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update No. 2014-09 that created the new Topic 606 ("Topic 606") in the Accounting Standards Codification ("ASC"). Topic 606 also included numerous conforming additions and amendments to other Topics within the ASC. Topic 606 established new rules that affect the amount and timing of revenue recognition for contracts with customers, but does not affect lease accounting and reporting. As such, adoption of these provisions will not affect the Company's lease revenues but may affect the reporting of other of the Company's revenues. On August 12, 2015, the FASB deferred the effective date of the provisions included in Topic 606 to years commencing after December 15, 2017. Topic 606 can be adopted early for years commencing after December 15, 2016, and may be reflected using either a full retrospective method or a simplified method that does not recast prior periods but does disclose the effect of the adoption on the current period financial statements. The Company has not yet determined either the potential impact on its financial statements or the method it will elect to use in connection with the adoption of the changes included in Topic 606. In August 2014, the FASB issued ASU 2014-15, "Presentation of Financial Statements - Going Concern," which added Subtopic 205-40 to the ASC ("Subtopic 205-40"). Subtopic 205-40 requires management to determine whether substantial doubt exists concerning the reporting entity's ability to continue as a going concern, in which case certain disclosures will be required. Subtopic 205-40 affects financial statement presentation but not methods of accounting, and is effective on a prospective basis for annual periods ending after December 15, 2016 and each reporting period thereafter, although early adoption is permitted. The Company has not early adopted Subtopic 205-40. In January 2016, the FASB issued ASU 2016-01, "Financial Instruments - Overall - Recognition and Measurement of Financial Assets and Financial Liabilities," which added and amended several ASC Subtopics ("ASU 2016-01"). ASU 2016-01 affects recognition, measurement and disclosures concerning financial instruments, including changes to (i) accounting for equity investments, (ii) accounting for financial liabilities accounted for under the fair value option, (iii) measurement of fair value of financial assets and liabilities based on the exit price notion in ASC 820, and (iv) presentation and disclosure requirements for financial instruments. ASU 2016-01 is effective on a prospective basis for annual periods beginning after December 15, 2017 and each reporting period thereafter. The Company has not yet determined the impact of adopting ASU 2016-01 on its financial statements. In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)" ("ASU 2016-02"). ASU 2016-02 is effective for public companies for years beginning after December 15, 2018, although early adoption is permitted. ASU 2016-02 substantially modifies lessee accounting for leases, requiring that lessees recognize lease assets and liabilities for leases extending beyond one year. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The new standard requires a lessor to classify leases as sales-type, finance or operating. A lease will be treated as a sale if it transfers all of the risks and rewards, as well as control of the underlying asset, to the lessee. If risks and rewards are conveyed without the transfer of control, the lease is treated as a financing. If the lessor doesn't convey risks and rewards or control, an operating lease results. A modified retrospective transition approach is required for lessors for sales-type, direct financing, and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. The Company has not yet determined the effect of adopting ASU 2016-02 on its financial statements. |
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Change in Accounting Principle | (o) Change in Accounting Principle The Company historically presented deferred debt issuance costs, or fees related to directly issuing debt, as assets on its balance sheets. On April 7, 2015, the FASB issued ASU 2015-03, "Interest: Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs" ("Subtopic 835-30"). Subtopic 835-30 requires the presentation of unamortized debt issuance costs on the Company's balance sheet as a direct deduction from the debt's value. Subtopic 835-30 affects financial statement presentation only. The recognition and measurement guidance for debt issuance costs is not affected. Therefore, these costs will continue to be amortized as interest expense. Subtopic 835-30 is effective on a prospective basis for reporting periods that start after December 15, 2015, although early adoption is permitted. The Company has early adopted Subtopic 835-30 effective beginning the first quarter ended March 31, 2015 and applied this guidance retrospectively to all prior periods presented in the Company's financial statements. In conjunction with this adoption, the Company has made an accounting policy election to present debt issuance costs related to revolving credit facility arrangements as a deduction from the related liability. The reclassification does not impact net income as previously reported or any prior amounts reported in the statement of cash flows. The following table presents the effect of the retrospective application of this change in accounting principle on the Company's balance sheet as of December 31, 2014.
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Organization and Summary of Significant Accounting Policies (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization and Summary of Significant Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of the effect of retrospective application of a change in accounting priniciple | The following table presents the effect of the retrospective application of this change in accounting principle on the Company's balance sheet as of December 31, 2014.
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Finance Leases Receivable (Tables) |
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Dec. 31, 2015 | ||||||||||||||||||||||||||||||||||||||||||||||
Finance Leases Receivable [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||
Net investment included in sales-type finance leases receivable | At December 31, 2015 and December 31, 2014, the net investment included in sales-type finance leases receivable were as follows:
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Minimum future lease revenue payments receivable under sales-type finance leases | As of December 31, 2015, minimum future lease revenue payments receivable under sales-type finance leases were as follows:
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Aircraft and Aircraft Engines Held for Lease or Sale (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2015 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Aircraft and Aircraft Engines Held for Lease or Sale [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Aircraft and aircraft engines held for lease | At December 31, 2015 and December 31, 2014, the Company's aircraft and aircraft engines held for lease consisted of the following:
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Operating Segments (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2015 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating Segments [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Geographic information of operating lease revenue | The tables below set forth geographic information about the Company's operating lease revenue for leased aircraft and aircraft equipment, grouped by domicile of the lessee:
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Net book value of aircraft and aircraft engines held for lease |
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Concentration of Credit Risk (Tables) |
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Dec. 31, 2015 | ||||||||||||||||||||||||||||||||||||||||||||||
Concentration of Credit Risk [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||
Future minimum lease payments receivable under noncancelable leases | As of December 31, 2015, minimum future lease revenue payments receivable under noncancelable operating leases were as follows:
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Notes Payable and Accrued Interest (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2015 | ||||||||||||||||||||||||||||||||||||||||||||||
Notes Payable and Accrued Interest [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||
Notes payable and accrued interest | At December 31, 2015 and December 31, 2014, the Company's notes payable and accrued interest consisted of the following:
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Income Taxes (Tables) |
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Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income tax provision | The items comprising the income tax provision are as follows:
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Income tax reconciliation | Total income tax expense/(benefit) differs from the amount that would be provided by applying the statutory federal income tax rate to pretax earnings as illustrated below:
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Deferred tax assets and liabilities | Temporary differences and carry-forwards that give rise to a significant portion of deferred tax assets and liabilities as of December 31, 2015 and 2014 were as follows:
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Computation of Earnings Per Share (Tables) |
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Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Computation of Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Computation of basic and diluted earnings per share | Basic and diluted earnings per share are calculated as follows:
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Related Party Transactions (Tables) |
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Dec. 31, 2015 | ||||||||||||||||||||||||||||||||||||||||||||||
Related Party Transactions [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||
Related party fees | Fees incurred during 2015 and 2014 were as follows:
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Notes Payable and Accrued Interest (Details) - USD ($) |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|
Notes payable and accrued interest [Abstract] | ||
Unamortized debt issuance costs | $ (2,814,000) | $ (4,104,400) |
Notes payable and accrued interest | 107,621,600 | 129,486,200 |
Credit Facility [Member] | ||
Notes payable and accrued interest [Abstract] | ||
Credit Facility principal | 110,400,000 | 133,400,000 |
Unamortized debt issuance costs | (2,814,000) | (4,104,400) |
Credit Facility accrued interest | 35,600 | 190,600 |
Notes payable and accrued interest | 107,621,600 | 129,486,200 |
Credit Facility [Abstract] | ||
Credit facility maximum borrowing capacity | 150,000,000 | |
Credit facility potential maximum borrowing capacity | 180,000,000 | |
Unused amount of the credit facility | $ 39,600,000 | $ 16,600,000 |
Weighted average interest rate on credit facility | 3.80% | 3.58% |
Stockholder Rights Plan (Details) - $ / shares |
12 Months Ended | |
---|---|---|
Dec. 31, 2015 |
Dec. 31, 2009 |
|
Class of Stock [Line Items] | ||
Number of stock purchase right for each share as dividends under plan (in shares) | 1 | |
Percentage of stock acquisition for exercise of rights as specified in right agreement | 15.00% | |
Series A Preferred Stock [Member] | ||
Class of Stock [Line Items] | ||
Number of shares to be purchased by each right exercised (in shares) | 0.01 | |
Initial purchase price of unit under right agreement (in dollars per share) | $ 97.00 |
Computation of Earnings Per Share (Details) - USD ($) |
12 Months Ended | |
---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Basic and diluted earnings per share [Abstract] | ||
Net income/(loss) | $ 6,437,600 | $ (11,294,000) |
Weighted average shares outstanding for the period (in shares) | 1,544,285 | 1,543,257 |
Dilutive effect of warrants (in shares) | 0 | 0 |
Weighted average diluted shares used in calculation of diluted earnings/(loss) per share (in shares) | 1,544,285 | 1,543,257 |
Basic earnings/(loss) per share (in dollars per share) | $ 4.17 | $ (7.32) |
Diluted earnings/(loss) per share (in dollars per share) | $ 4.17 | $ (7.32) |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Common stock issued to warrant holders (in shares) | 23,442 | |
Warrant [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 81,224 |
Related Party Transactions (Details) - USD ($) |
3 Months Ended | 12 Months Ended | |
---|---|---|---|
Dec. 31, 2014 |
Dec. 31, 2015 |
Dec. 31, 2014 |
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Related Party Transaction [Line Items] | |||
Management fees, net of approximately $1,200,000 of fees waived by JMC in 2014 | $ 5,581,400 | $ 3,864,900 | |
Management fee, net waived by JMC | 1,200,000 | ||
Jet Fleet Management Corp. [Member] | |||
Related Party Transaction [Line Items] | |||
Management fees, net of approximately $1,200,000 of fees waived by JMC in 2014 | 5,581,400 | 3,864,900 | |
Acquisition fees | 0 | 2,100,000 | |
Remarketing fees | $ 871,600 | $ 64,000 | |
Jet Fleet Management Corp. [Member] | Waiver of Fees [Member] | |||
Related Party Transaction [Line Items] | |||
Management fee, net waived by JMC | $ 1,200,000 |
Warrants (Details) |
Dec. 31, 2015
$ / shares
shares
|
---|---|
Warrants [Abstract] | |
Number of shares callable by warrants (in shares) | 81,224 |
Exercise price of warrants (in dollars per share) | $ / shares | $ 8.75 |
Common stock issued to warrant holders (in shares) | 23,442 |
Subsequent Events (Details) - Subsequent Event [Member] |
1 Months Ended | |
---|---|---|
Feb. 29, 2016
Aircraft
|
Jan. 31, 2016
USD ($)
Aircraft
|
|
Turboprop Aircraft [Member] | ||
Subsequent Event [Line Items] | ||
Gain on sale of asset | $ | $ 19,000 | |
Number of aircraft sold | 1 | |
Regional Jet Aircraft [Member] | ||
Subsequent Event [Line Items] | ||
Number of aircraft sold | 2 |
1 Year Aerocentury Chart |
1 Month Aerocentury Chart |
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