Aircastle Announces Third Quarter 2023 Results

Highlights for the Three Months Ended November 30, 2023

• Total revenues of $239 million and net income of $26 million
• Adjusted EBITDA⁽¹⁾ of $213 million
• Acquired 6 aircraft, including 4 Airbus A320neo family aircraft; total number of new technology aircraft increased 46% compared to third quarter 2022
• Sold 8 aircraft with an average age of 19 years for proceeds of $73 million and a gain on sale of $20 million
• Quarter end fleet utilization at 99%
• In December 2023, subsequently received $43 million in settlement proceeds relating to aircraft formerly on lease to two Russian airlines

Liquidity

• Ratings upgrade from Fitch to BBB+, Outlook Stable
• Net debt-to-equity ratio was 2.3 times at November 30, 2023
• Repaid $650 million of unsecured senior notes
• Total liquidity as of January 5, 2024 of $2.8 billion includes $1.8 billion of undrawn facilities, $0.6 billion of projected adjusted operating cash flows and sales through January 5, 2024, $0.3 billion of equity commitments and $0.1 billion of unrestricted cash
• 198 unencumbered aircraft and other flight equipment with a net book value of $5.4 billion
• In January 2024, expanded the size of one unsecured revolving credit facility from $375 million to $600 million and extended its maturity date from May 2025 to January 2028

STAMFORD, Conn., Jan. 11, 2024 /PRNewswire/ -- Mike Inglese, Aircastle's Chief Executive Officer, commented, "In the third quarter, we began the process of putting our new shareholder equity to work with 6 aircraft acquisitions. We expect the robust demand for narrow-body passenger aircraft seen in 2023 will extend into 2024.  In conjunction with our investment strategy, new technology aircraft now comprise 35% of the book value of our fleet.  Meanwhile, the uptick in technical groundings for certain new technology engines is bolstering the demand for our current technology aircraft."

Mr. Inglese concluded, "Our IG status was strengthened in the third quarter with an upgrade from Fitch to BBB+. Our conservative balance sheet and considerable liquidity position will enable us to grow our fleet in the fourth quarter while we continue to provide the most sought-after aircraft solutions for our customers. Along with our shareholders, Marubeni Corporation and Mizuho Leasing, we're optimistic about the near and long term horizons of our unique business model."

Aviation Assets

As of November 30, 2023, Aircastle owned 236 aircraft and other flight equipment having a net book value of $6.8 billion.  We also manage 9 aircraft with a net book value of $275 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, January 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 (877) 870-4263 (from within the U.S. and Canada) or +1 (412) 317-0790 (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 November 30, 2023, Aircastle owned and managed on behalf of its joint ventures 245 aircraft leased to 73 airline customers located in 42 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
Jim Connelly, SVP ESG & Corporate Communications
Tel: +1-203-504-1871
[email protected] 

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SOURCE Aircastle Advisor LLC