Aircastle posts fourth quarter and full year 2015 results

Aircastle reported total revenues for the fourth quarter of US$208.3m, a decline of US$30.0m, driven by lower maintenance revenues, which typically arise at lease end. Maintenance revenues were US$37.1m lower due to fewer aircraft coming off lease during the fourth quarter of 2015, as compared to 2014 when we early terminated the leases of several aircraft that had been leased to airlines based in Russia and Ukraine. Adjusted EBITDA for the fourth quarter was US$211.0m, down US$22.2m from the fourth quarter of 2014, due primarily to lower maintenance revenues, partially offset by a US$5.9m increase in lease rental and finance lease revenues and an increase of US$5.2m from gains on sale of flight equipment. Adjusted net income for the quarter was US$54.3m, down US$25.9m year-over-year. The decrease was due primarily to lower maintenance revenues and a US$7.1m increase in depreciation expense, partially offset by a US$9.5 million reduction in non-cash impairment charges arising from the early return and sale of several aircraft during the fourth quarter of 2014.
Total revenues in 2015 were US$819.2m, essentially flat with the previous year. Lease rental revenues increased US$18.8m versus the previous year, reflecting the growth in flight equipment. However, this increase was largely offset by a US$17.0m reduction in maintenance revenues caused by a lower number of aircraft coming off lease in 2015 compared to the previous year. Adjusted EBITDA for the full year was US$832.1m, up US$39.8 million versus 2014, primarily reflecting US$34.9m more in gains from the sale of flight equipment and a US$6.5m increase in other revenues which included termination fees associated with the disposal of freighter aircraft during 2015. Adjusted net income for the full year was US$142.3 million compared to US$167.6m in 2014, a decrease of US$25.4m. Adjusted net income in 2014 excluded a US$36.6m charge associated with the early repayment of 9.75% debt, which was refinanced at a substantially lower coupon.