Aircastle Announces First Quarter 2024 Results

Highlights for the Three Months Ended May 31, 2024

• Total revenues of $205 million and net income of $16 million
• Adjusted EBITDA⁽¹⁾ of $186 million
• Lease rental revenue and direct financing and sales-type lease revenue increased 14% compared to first quarter 2023
• Acquired 9 aircraft for $223 million; net book value of flight equipment is $7.3 billion, up 7% compared to first quarter 2023
• Fleet utilization at 99%

Liquidity

• Ratings Outlook revised to Positive by S&P
• Received $300 million equity from shareholders in June 2024, completing a $500 million total commitment
• Total liquidity as of July 5, 2024 of $2.6 billion includes $2.0 billion of undrawn facilities, $0.5 billion of projected adjusted operating cash flows and sales through July 5, 2025, and $0.1 billion of unrestricted cash
• 212 unencumbered aircraft and other flight equipment with a net book value of $6.0 billion

STAMFORD, Conn., July 11, 2024 /PRNewswire/ -- Mike Inglese, Aircastle's Chief Executive Officer, commented, "The increasing demand for air travel has enabled global traffic to meet, and in some regions, exceed 2019 levels.  While IATA is predicting world passengers to increase 3.8% annually over the next 20 years, aircraft and engine manufacturers are not providing the output that meets even baseline needs of airlines.  As a result, we're seeing strong long-term demand for all narrow-body passenger aircraft types and extended viability of current technology aircraft."

Mr. Inglese concluded, "We recently announced that our shareholders, Marubeni Corporation and Mizuho Leasing, have completed their $500 million equity commitment. During the first quarter, our IG status was further bolstered by an Outlook revision to Positive from S&P. With positive tailwinds, we're pleased to be putting our equity to work and growing our fleet with the most sought-after narrow-body passenger aircraft."

(1)  Refer to the selected financial information accompanying this press release for a reconciliation of GAAP to Non-GAAP numbers.

Aviation Assets

As of May 31, 2024, Aircastle owned 250 aircraft and other flight equipment having a net book value of $7.3 billion.  We also manage 9 aircraft with a net book value of $268 million on behalf of our joint venture with Mizuho Leasing.

Conference Call

In connection with this press release, management will host a conference call on Thursday, July 11, 2024, at 9:00 A.M. Eastern Time.  All interested parties are welcome to participate on the live call.  The conference call can be accessed by dialing 1 (800) 836-8184 (from within the U.S. and Canada) or +1 (646) 357-8785 (outside the U.S. and Canada) ten minutes prior to the scheduled start. Please reference our company name "Aircastle" when prompted by the operator.

A simultaneous webcast of the conference call will be available to the public on a listen-only basis at www.aircastle.com.  Please allow extra time prior to the call to visit the site and download the necessary software required to listen to the internet broadcast. 

For those who are not available to listen to the live call, a replay will be available on Aircastle's website shortly after the live call.

About Aircastle Limited

Aircastle Limited acquires, leases and sells commercial jet aircraft to airlines throughout the world.  As of May 31, 2024, Aircastle owned and managed on behalf of its joint ventures 259 aircraft leased to 77 airline customers located in 44 countries.

Safe Harbor

All statements in this press release, other than characterizations of historical fact, are forward-looking statements within the meaning of the federal securities laws, including the Private Securities Litigation Reform Act of 1995.  Examples of forward-looking statements include, but are not necessarily limited to, statements relating to our proposed public offering of notes and our ability to acquire, sell, lease or finance aircraft, raise capital, pay dividends, and increase revenues, earnings, EBITDA and Adjusted EBITDA and the global aviation industry and aircraft leasing sector. Words such as "anticipates," "expects," "intends," "plans," "projects," "believes," "may," "will," "would," "could," "should," "seeks," "estimates" and variations on these words and similar expressions are intended to identify such forward-looking statements.  These statements are based on our historical performance and that of our subsidiaries and on our current plans, estimates and expectations and are subject to a number of factors that could lead to actual results materially different from those described in the forward-looking statements; Aircastle can give no assurance that its expectations will be attained.  Accordingly, you should not place undue reliance on any such forward-looking statements which are subject to certain risks and uncertainties that could cause actual results to differ materially from those anticipated as of the date of this press release.  These risks or uncertainties include, but are not limited to, those described from time to time in Aircastle's filings with the SEC and previously disclosed under "Risk Factors" in Item 1A of Aircastle's most recent Form 10-K and any subsequent filings with the SEC.  In addition, new risks and uncertainties emerge from time to time, and it is not possible for Aircastle to predict or assess the impact of every factor that may cause its actual results to differ from those contained in any forward-looking statements.  Such forward-looking statements speak only as of the date of this press release.  Aircastle expressly disclaims any obligation to revise or update publicly any forward-looking statement to reflect future events or circumstances.

We define EBITDA as income (loss) from continuing operations before income taxes, interest expense, and depreciation and amortization.  We use EBITDA to assess our consolidated financial and operating performance, and we believe this non-U.S. GAAP measure is helpful in identifying trends in our performance.

This measure provides an assessment of controllable expenses and affords management the ability to make decisions which are expected to facilitate meeting current financial goals, as well as achieving optimal financial performance.  It provides an indicator for management to determine if adjustments to current spending decisions are needed.

EBITDA provides us with a measure of operating performance because it assists us in comparing our operating performance on a consistent basis as it removes the impact of our capital structure (primarily interest charges on our outstanding debt) and asset base (primarily depreciation and amortization) from our operating results.  Accordingly, this metric measures our financial performance based on operational factors that management can impact in the short-term, namely the cost structure, or expenses, of the organization.  EBITDA is one of the metrics used by senior management and the Board of Directors to review the consolidated financial performance of our business.

We define Adjusted EBITDA as EBITDA (as defined above) further adjusted to give effect to adjustments required in calculating covenant ratios and compliance as that term is defined in the indenture governing our senior unsecured notes.  Adjusted EBITDA is a material component of these covenants.

Contact:
Aircastle Advisor LLC
James Connelly, SVP ESG & Corporate Communications
Tel: +1-203-504-1871
[email protected]

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SOURCE Aircastle Advisor LLC