EX-99.1 3 formofpressrelease.htm FORM OF PRESS RELEASE formofpressrelease.htm

 
Toni Perazzo
Chief Financial Officer
(650) 340-1888FOR IMMEDIATE RELEASE

AEROCENTURY CORP. REPORTS SECOND QUARTER 2008 RESULTS

(BURLINGAME, CA), August 12, 2008 — AeroCentury Corp. (AMEX:ACY), an independent aircraft leasing company, today reported its operating results for the second quarter ended June 30, 2008.

For the quarter ended June 30, 2008, the Company reported total revenues of $7.7 million compared with revenues of $5.1 million for the same period a year ago.  For the six months ended June 30, 2008, the Company reported total revenues of $15.5 million compared with revenues of $10.2 million for the same period in 2007.

The Company reported net income of $1,585,000 or $1.03 per basic share and $0.99 per diluted share for the second quarter of 2008, compared to net income of $513,000 or $0.33 per basic share and $0.32 per diluted share for the second quarter of 2007. The Company reported net income of $1,881,000 or $1.22 per basic share and $1.17 per diluted share for the first six months of 2008, compared to net income of $1,537,000 or $1.00 per basic share and $0.98 per diluted share for the first six months of 2007.

Operating lease revenue was approximately $1.5 million and $3.1 million higher in the three months and six months ended June 30, 2008, respectively, versus the same periods in 2007, primarily because of lease revenue from additional aircraft purchased during 2007 and 2008 and re-leases during 2007 at increased rental rates for several of the Company’s aircraft.  The aggregate effect of these increases was partially offset by a decrease in revenue related to aircraft that were off lease for all or part of the 2008 periods.

Maintenance reserves income, comprised of non-refundable reserves which are earned based on lessee aircraft usage, was approximately $1.1 million and $2.0 million higher in the three months and six months ended June 30, 2008, respectively, versus the three months and six months ended June 30, 2007 as a result of the acquisition of additional aircraft in 2007.

Total expenses were approximately $1.0 million and $4.8 million higher in the three months and six months ended June 30, 2008, respectively, as compared to the same periods in 2007, primarily because of higher maintenance expense of approximately $0.5 million and $2.7 million, respectively, due to higher total lessee reserves claims.  Depreciation was also higher by approximately $0.5 million and $1.0 million in the three months and six months ended June 30, 2008, respectively, versus the same periods in 2007 as a result of aircraft purchases in 2007 and 2008.  Interest expense was approximately $0.3 million lower in the three-month period of 2008 as compared to the same period in 2007, primarily as a result of the change in fair value of the Company’s interest rate swap.  Interest expense was approximately $0.6 million higher in the six months ended June 30, 2008 than in the six months ended June 30, 2007, primarily as a result of higher average senior and subordinated debt balances, the effect of which was partially offset by a decrease in the average rates applicable to the Company’s senior debt.  

AeroCentury is an aircraft operating lessor and finance company specializing in leasing regional aircraft and engines utilizing triple net leases. The Company’s aircraft and engines are on lease to regional airlines and commercial users worldwide.

(See tables following.)


 
 
 

AeroCentury Corp.
Selected Financial Information
(Unaudited)
(000’s)

   
For the Three Months
Ended June 30,
    
For the Six Months
Ended June 30,
  
   
2008
    
2007
    
2008
    
2007
  
         
(as restated)
          
(as restated)
  
Revenues and other income:
                        
                         
Operating lease revenue
   $ 5,759     $ 4,228     $ 11,653     $ 8,511  
Maintenance reserves income
     1,901       847       3,650       1,674  
Gain on sale of aircraft and aircraft engines
     -       -       15       -  
Other
     25       1       190       9  
                                 
      7,685       5,076       15,508       10,194  
Expenses:
                                
                                 
Interest
     1,101       1,424       3,230       2,646  
Depreciation
     1,743       1,258       3,450       2,493  
Management fees
     889       684       1,772       1,367  
Maintenance costs
     1,253       701       3,635       926  
Professional fees and general and administrative
     157       174       435       331  
Other taxes
     35       10       (45 )     22  
Insurance
     93       49       171       75  
Bad debt expense
     -       -       -       16  
                                 
      5,271       4,300       12,648       7,876  
                                 
Income before income taxes
     2,414       776       2,860       2,318  
                                 
Income tax provision
     829       263       979       781  
                                 
Net income
   $ 1,585     $ 513     $ 1,881     $ 1,537  
                                 
Earnings per share:
                                
  Basic
   $ 1.03     $ 0.33     $ 1.22     $ 1.00  
  Diluted
   $ 0.99     $ 0.32     $ 1.17     $ 0.98  
Shares used in per share computations:
                                
  Basic
     1,543,257       1,543,257       1,543,257       1,543,257  
  Diluted
     1,594,410       1,601,423       1,610,969       1,572,502  


Summary Balance Sheet:

   
June 30,
2008
    
December 31,
2007
    
June 30,
2007
  
               
(as restated)
  
Total assets
   $ 136,928     $ 126,653     $ 109,093  
Total liabilities
   $ 102,907     $ 94,513     $ 79,188  
Shareholders’ equity
   $ 34,021     $ 32,140     $ 29,905  

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