AeroCentury Corp., an independent aircraft leasing company, has reported first quarter earnings of US$0.3 million, compared to US$6.02 million for the fourth quarter of 2017 and US$0.6 million for the first quarter of 2017.
First quarter 2018 included US$1.1 million of other income resulting from cash received from the previous lessee of three aircraft that were returned to the Company during 2017. Such payments were for unpaid maintenance reserves as well as amounts due pursuant to the unsatisfied return conditions of the applicable leases and were not accrued by the Company at the time of lease termination based on management's evaluation of the creditworthiness of the lessee.
Therefore, the Company is accounting for payments as they are received and recorded in other income. Fourth quarter 2017 results included a US$5.4 million tax benefit arising from the revaluation of the Company's deferred tax liability prompted by the passage of the Tax Cuts and Jobs Act of 2017.
