AeroCentury earns US$434,000 in 1Q16

AeroCentury, an independent aircraft leasing company, reported first quarter 2016 earnings of US$434,000 compared to US$752,000 for the first quarter of 2015 and US$3.1m for the fourth quarter of 2015. The earnings reported for the first and fourth quarters of 2015 included US$1.9m and US$6.3m, respectively, in pretax gains on the sale of assets. Average portfolio utilization, as a percentage of net book value of assets held for lease, remained at 95% during the first quarter of 2016, unchanged from the fourth quarter of 2015, and up from 88% in the year-ago quarter. Total revenues were US$6.2m for the first quarter of 2016, compared to US$12.7m in the fourth quarter, and US$8.6m in the first quarter a year ago. Operating lease revenues declined 2% to US$6.0m in the first quarter of 2016 from US$6.2m in the preceding quarter, and declined 6% from US$6.4m a year ago, primarily as a result of asset sales in 2015. One aircraft was sold, pursuant to a lessee purchase option in a sales-type finance lease, generating US$5,400 in gains in the first quarter of 2016. Three aircraft were sold on a cash basis during the fourth quarter of 2015, generating US$6.3m in gains. In the first quarter of 2015, one aircraft was sold for cash and another was sold pursuant to a sales-type finance lease, generating gains totaling UD$1.8m.