8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

  Date of Report (Date of Earliest Event Reported):     May 12, 2010  

AEROCENTURY CORP.

_________________________________________

(Exact name of registrant as specified in its charter)

Delaware	94-3263974
(State or Other Jurisdiction of incorporation)	(I.R.S. Employer Identification No.)
1440 Chapin Avenue, Suite 310 Burlingame, CA	94010
(Address of principal executive offices)	(Zip Code)

(650)-340-1888

Registrant’s telephone number, including area code:

Not Applicable

Former Name or Former Address, if changed since last report

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: 

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

oSoliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

oPre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

oPre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02:      Earnings Announcement

On May 12, 2010, AeroCentury Corp. (the "Company") announced via press release the Company's preliminary results for its first quarter ended March 31, 2010. A copy of the Company's press release is attached hereto as Exhibit 99.1. This Form 8-K and the attached exhibit are provided under Item 2.02 of Form 8-K and are furnished to, but not filed with, the Securities and Exchange Commission.

	AEROCENTURY CORP.
Date: May 13, 2010	By:	/s/  Neal D. Crispin
		Title: Chairman and CEO

EX-99.1

Toni Perazzo

Chief Financial Officer

650-340-1888

FOR IMMEDIATE RELEASE

AEROCENTURY CORP. REPORTS FIRST QUARTER 2010 RESULTS

(BURLINGAME, CA), May 12, 2010 — AeroCentury Corp. (NYSE Amex: ACY), an independent aircraft leasing company, today reported its preliminary, unaudited operating results for the first quarter ended March 31, 2010.

For the quarter ended March 31, 2010, the Company reported total revenues of $8.8 million compared with total revenues of $8.0 million for the same period of the prior year.

The Company reported net income of $1,896,000, or $1.20 per diluted share, for the first quarter of 2010, compared to net income of $1,238,000, or $0.80 per diluted share, for the first quarter of 2009.  

Operating lease revenue increased by approximately $0.3 million in the quarter ended March 31, 2010, compared to the same period in 2009, primarily because of operating lease revenue from aircraft engines purchased during 2009, the effect of which was partially offset by (i) a reduction in operating lease revenue due to uncertainty about the collectibility of the related receivable and (ii) a decrease in revenue related to aircraft that were off lease for all or part of the 2010 quarter.

Maintenance reserves income is comprised of non-refundable reserves and is earned based on lessee aircraft usage.  Maintenance reserves income decreased by approximately $0.1 million in the quarter ended March 31, 2010, compared to the same period in 2009, primarily because of a reduction in maintenance reserves revenue due to uncertainty about the collectibility of the related receivable, the effect of which was partially offset by higher average usage for lessees.

Other income increased by $0.6 million in the quarter ended March 31, 2010, compared to the same period in 2009, primarily because the 2010 period included a net gain on insurance proceeds that the Company received for one of its DHC-8-100 aircraft that had sustained significant damage in January 2010 and because the Company recorded recovery of a bad debt related to amounts due from a lessee in 2009, which were received in 2010.

Total expenses decreased by approximately $0.2 million in the quarter ended March 31, 2010, compared to the same period in 2009.  

Maintenance expense increased by approximately $0.3 million in the quarter ended March 31, 2010, compared to the same period in 2009, due to increases in expense for off-lease aircraft and maintenance performed by lessees using non-refundable reserves.

Interest expense decreased by $0.4 million in the quarter ended March 31, 2010, compared to the same period in 2009, primarily as a result of a lower average outstanding principal amount of the Company’s subordinated notes and the resulting reduction in both interest payments and discount amortization.

Professional fees and general and administrative expense decreased by $0.1 million in the quarter ended March 31, 2010, compared to the quarter ended March 31, 2009, primarily as a result of lower accounting and legal fees.

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 leased to regional airlines and commercial users worldwide.

(more)

AeroCentury Corp.

Selected Financial Information

(Unaudited)

(in thousands, except share and per share data)

	For the Three Months Ended March 31,
	2010		2009
Revenues and other income:
Operating lease revenue	$	6,720	$	6,469
Maintenance reserves income		1,478		1,568
Other income		648		6
		8,846		8,043
Expenses:
Depreciation		1,836		1,908
Maintenance costs		1,811		1,505
Interest		1,057		1,410
Management fees		934		927
Professional fees and other		316		407
		5,954		6,157
Income before income tax provision		2,892		1,886
Income tax provision		996		648
Net income	$	1,896	$	1,238
Earnings per share:
Basic	$	1.23	$	0.80
Diluted	$	1.20	$	0.80
Weighted average shares used in   earnings per share computations:
Basic		1,543,257		1,543,257
Diluted		1,581,224		1,543,257

Summary Balance Sheet:	March 31, 2010		December 31, 2009		March 31, 2009
	(Unaudited)		(Audited)		(Unaudited)
Total assets	$	133,505	$	132,179	$	129,787
Total liabilities	$	91,117	$	91,687	$	93,714
Shareholders’ equity	$	42,388	$	40,492	$	36,073

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