SCHEDULE I — CONDENSED BALANCE SHEETS

Parent Company Information

December 31, 2013 and 2012

(In thousands, except share data)

	December 31, 2013		December 31, 2012
ASSETS
Cash and cash equivalents	$	1,520	$	4,142
Equipment held for operating lease, less accumulated depreciation	464,912		266,302
Equipment held for sale	26,382		18,271
Operating lease related receivable, net of allowances	1,911		3,688
Due from affiliate	1,393		—
Investments	23,485		21,831
Investment in subsidiaries	97,869		198,443
Deferred income taxes	—		2,774
Property, equipment & furnishings, less accumulated depreciation	4,868		5,989
Intangible assets, net	271		—
Equipment purchase deposits	1,369		1,369
Other assets, net	9,774		9,257
Total assets	$	633,754	$	532,066

LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities:
Accounts payable and accrued expenses	$	8,813	$	11,313
Due to subsidiaries, net	—		2,648
Liabilities under derivative instruments	—		1,690
Deferred income taxes	6,993		—
Notes payable	378,828		301,671
Maintenance reserves	15,282		11,787
Security deposits	10,008		1,994
Unearned lease revenue	1,225		1,800
Total liabilities	421,149		332,903

Shareholders’ equity:
Preferred stock ($0.01 par value, 5,000,000 shares authorized; 0 shares issued and outstanding at December 31, 2013 and 2012)	—		—
Common stock ($0.01 par value, 20,000,000 shares authorized; 8,399,739 and 8,715,580 shares issued and outstanding at December 31, 2013 and 2012, respectively)	84		87
Paid-in capital in excess of par	44,741		47,785
Retained earnings	167,455		151,829
Accumulated other comprehensive loss, net of income (loss) tax expense (benefit)	325		(538		)
Total shareholders’ equity	212,605		199,163
Total liabilities and shareholders’ equity	$	633,754	$	532,066

SCHEDULE I — CONDENSED STATEMENTS OF INCOME (LOSS)

Parent Company Information

Years Ended December 31, 2013, 2012 and 2011

(In thousands)

	Years Ended December 31,
	2013			2012			2011
REVENUE
Lease rent revenue	$	36,593		$	30,564		$	36,181
Maintenance reserve revenue	14,046			13,139			11,344
Gain on sale of leased equipment	3,472			3,605			7,895
Other revenue	8,022			10,809			12,487
Total revenue	62,133			58,117			67,907

EXPENSES
Depreciation expense	19,699			18,764			17,783
Write-down of equipment	4,204			2,621			2,306
General and administrative	29,907			30,565			34,151
Technical expense	5,478			3,336			3,711
Net finance costs:
Interest expense	15,030			11,471			14,328
Interest income	—			—			(40		)
Loss on debt extinguishment	—			94			343
Total net finance costs	15,030			11,565			14,631
Total expenses	74,318			66,851			72,582

Loss from operations	(12,185		)	(8,734		)	(4,675		)

Earnings from joint ventures	3,526			1,759			1,295

Loss before income taxes	(8,659		)	(6,975		)	(3,380		)
Income tax benefit/(expense)	4,525			2,196			(628		)

Equity in income of subsidiaries, net of tax of $199, $3,357, and $8,749 at December 31, 2013, 2012 and 2011, respectively	19,760			6,314			18,516

Net income	$	15,626		$	1,535		$	14,508

Preferred stock dividends	—			2,493			3,128
Preferred stock redemption costs	—			2,835			—

Net income (loss) attributable to common shareholders	$	15,626		$	(3,793	)	$	11,380

SCHEDULE I — CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

Parent Company Information

Years Ended December 31, 2013, 2012 and 2011

(In thousands)

	Twelve Months Ended December 31
	2013			2012			2011
Net income	$	15,626		$	1,535		$	14,508

Other comprehensive income (loss):
Derivative instruments
Unrealized losses on derivative instruments	(187		)	(1,039		)	(2,144		)
Reclassification adjustment for losses included in net income	1,485			1,511			2,965
Net gain (loss) recognized in other comprehensive income	1,298			472			821
Tax benefit related to items of other comprehensive income (loss)	(435		)	(16		)	(30		)

Other comprehensive income from parent	863			456			791

Other comprehensive income from subsidiaries	—			7,205			787
Total other comprehensive income (loss)	863			7,661			1,578

Total comprehensive income	$	16,489		$	9,196		$	16,086

SCHEDULE I — CONDENSED STATEMENTS OF CASH FLOWS

Parent Company Information

Years Ended December 31, 2013, 2012 and 2011

(In thousands)

	Years Ended December 31,
	2013			2012			2011
Cash flows from operating activities:
Net income	$	15,626		$	1,535		$	14,508
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in income of subsidiaries	(19,760		)	(6,314		)	(18,516		)
Depreciation expense	19,699			18,764			17,783
Write-down of equipment	4,204			2,621			2,306
Stock-based compensation expenses	3,439			3,144			3,173
Amortization of deferred costs	2,286			2,215			1,360
Amortization of interest rate derivative cost	(404		)	(236		)	483
Allowances and provisions	(94		)	34			(157		)
Gain on sale of leased equipment	(3,472		)	(3,605		)	(7,895		)
Gain on insurance settlement	(351		)	(173		)	—
Other non-cash items	—			—			(1,113		)
Income from joint ventures, net of distributions	(3,526		)	(957		)	(485		)
Non-cash portion of loss on debt extinguishment	0			94			343
Deferred income taxes	(4,072		)	(2,408		)	3,283
Changes in assets and liabilities:
Receivables	1,871			(292		)	(1,037		)
Notes receivable	—			5			78
Other assets	(2,165		)	(1,329		)	(910		)
Accounts payable and accrued expenses	(943		)	(2,209		)	(8,024		)
Due to / from subsidiaries	(4,041		)	4,946			553
Maintenance reserves	3,495			2,898			3,008
Security deposits	426			(641		)	759
Unearned lease revenue	(575		)	335			(72		)
Net cash provided by operating activities	11,643			18,427			9,428

Cash flows from investing activities:
Increase in investment in subsidiaries	(34,098		)	(100,649		)	(1,800		)
Distributions received from subsidiaries	69,548			106,183			22,851
Proceeds from sale of equipment held for operating lease (net of selling expenses)	21,644			21,371			61,309
Capital contribution to joint venture	(11,219		)	(5,636		)	(8,943		)
Acquisition of J.T. Power, net of cash acquired	(4,171		)	—			—
Acquisition of WOLF, net of cash acquired	(1,000		)	—			—
Purchase of equipment held for operating lease	(132,140		)	(40,465		)	(99,132		)
Purchase of property, equipment and furnishings	(450		)	(1,219		)	(904		)
Net cash used in investing activities	(91,886		)	(20,415		)	(26,619		)

Cash flows from financing activities:
Proceeds from issuance of notes payable	130,000			236,392			132,409
Debt issuance cost	(637		)	(516		)	(3,565		)
Preferred stock dividends	—			(2,493		)	(3,128		)
Proceeds from shares issued under stock compensation plans	680			1,725			672
Cancellation of restricted stock units in satisfaction of withholding tax	(1,248		)	(1,194		)	(968		)
Excess tax benefit from stock-based compensation	—			—			779
Redemption of preferred stock	—			(34,750		)	—
Security deposit	7,588			—			—
Repurchase of common stock	(5,918		)	(12,736		)	(5,661		)
Cash settlement of stock options	—			—			(1,262		)
Principal payments on notes payable	(52,844		)	(186,727		)	(97,858		)
Net cash provided by (used in) financing activities	77,621			(299		)	21,418
Increase/(Decrease) in cash and cash equivalents	(2,622		)	(2,287		)	4,227
Cash and cash equivalents at beginning of period	4,142			6,429			2,202

Cash and cash equivalents at end of period	$	1,520		$	4,142		$	6,429
Supplemental disclosures of cash flow information:
Net cash paid for:
Interest	$	11,903		$	8,105		$	9,307
Income Taxes	$	111		$	101		$	155
Supplemental disclosures of non-cash investing activities:
During the years ended December 31, 2013, 2012, 2011, engines and equipment totaling $422, $14,156 and $17,067, respectively, were transferred from Held for Operating Lease to Held for Sale but not settled.
During the years ended December 31, 2013, 2012, 2011, engines and equipment totaling $116,020, $(56,562) and $(2,448), respectively, were transferred to (from) the parent to its subsidiaries.