AeroCentury earns US$1.2m in 2016

AeroCentury, an independent aircraft leasing company, reported 2016 earnings were US$1.2m compared to 2015 earnings of US$6.4m. “AeroCentury made investments in leased assets totaling US$69m in the third quarter of 2016, the impact of which we are now seeing in the form of increasing operating lease revenue,” said Michael G. Magnusson, Chief Executive Officer. Operating lease revenue in the fourth quarter of 2016 was US$7.4m, reflecting an increase of 22% compared to operating lease revenue in the third quarter of 2016 of US$6.1m and an increase of 20%, compared to the fourth quarter of 2015 of US$6.2m. In the fourth quarter of 2016, AeroCentury recorded a loss of US$40,000, reflecting a US$906,000 impairment charge. There was an atypical tax rate due to differences in the book and tax treatment of certain items. In the third quarter of 2016, earnings were US$530,000, which included US$1.2m in gains from sales-type finance leases. In the fourth quarter of 2015, earnings were US$3.1m, which included US$6.3m in gains on disposal of assets.