QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Bermuda | 98-0444035 | |||||
(State or other jurisdiction of incorporation or organization) | (IRS Employer Identification No.) | |||||
c/o Aircastle Advisor LLC | ||||||
201 Tresser Boulevard, Suite 400 | ||||||
Stamford | ||||||
Connecticut | ||||||
06901 | ||||||
(Address of |
Title of Each Class | Trading Symbol | Name of Each Exchange on Which Registered | ||||||||||||
Common Shares, par value $0.01 per share | N/A | NONE | ||||||||||||
Preference Shares, par value $0.01 per share | N/A | NONE |
Large accelerated filer | Accelerated filer | ||||||||||
Non-accelerated filer | Smaller reporting company | ||||||||||
Emerging growth company |
Page No. | ||||||||
Item 1. | Consolidated Financial Statements | |||||||
Consolidated Balance Sheets as of | ||||||||
Consolidated Statements of Income (Loss) and Comprehensive Income (Loss) for the three and | ||||||||
Consolidated Statements of Cash Flows for the | ||||||||
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations | |||||||
Item 3. | ||||||||
Item 4. | ||||||||
Item 1. | ||||||||
Item 1A. | ||||||||
Item 2. | ||||||||
Item 3. | ||||||||
Item 4. | ||||||||
Item 5. | ||||||||
Item 6. | ||||||||
September 30, 2017 | December 31, 2016 | August 31, 2023 | February 28, 2023 | |||||||||||||||
(Unaudited) | (Unaudited) | |||||||||||||||||
ASSETS | ASSETS | |||||||||||||||||
Cash and cash equivalents | $ | 662,649 | $ | 455,579 | Cash and cash equivalents | $ | 726,428 | $ | 231,861 | |||||||||
Restricted cash and cash equivalents | 20,536 | 53,238 | ||||||||||||||||
Accounts receivable | 5,708 | 6,035 | Accounts receivable | 11,729 | 12,855 | |||||||||||||
Flight equipment held for lease, net of accumulated depreciation of $1,168,064 and $1,224,899, respectively | 5,490,164 | 6,247,585 | ||||||||||||||||
Net investment in finance and sales-type leases | 488,408 | 260,853 | ||||||||||||||||
Unconsolidated equity method investments | 76,098 | 72,977 | ||||||||||||||||
Flight equipment held for lease, net | Flight equipment held for lease, net | 6,501,828 | 6,567,606 | |||||||||||||||
Net investment in leases, net | Net investment in leases, net | 248,734 | 67,694 | |||||||||||||||
Unconsolidated equity method investment | Unconsolidated equity method investment | 41,367 | 40,505 | |||||||||||||||
Other assets | 131,395 | 148,398 | Other assets | 318,851 | 346,330 | |||||||||||||
Total assets | $ | 6,874,958 | $ | 7,244,665 | Total assets | $ | 7,848,937 | $ | 7,266,851 | |||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||||||||
LIABILITIES | LIABILITIES | |||||||||||||||||
Borrowings from secured financings, net of debt issuance costs | $ | 874,874 | $ | 1,219,034 | ||||||||||||||
Borrowings from unsecured financings, net of debt issuance costs | 3,286,240 | 3,287,211 | ||||||||||||||||
Borrowings from secured financings, net | Borrowings from secured financings, net | $ | 913,864 | $ | 752,298 | |||||||||||||
Borrowings from unsecured financings, net | Borrowings from unsecured financings, net | 3,991,875 | 3,842,454 | |||||||||||||||
Accounts payable, accrued expenses and other liabilities | 145,691 | 127,527 | Accounts payable, accrued expenses and other liabilities | 211,810 | 206,473 | |||||||||||||
Lease rentals received in advance | 51,937 | 62,225 | Lease rentals received in advance | 53,486 | 66,816 | |||||||||||||
Security deposits | 120,320 | 122,597 | Security deposits | 62,067 | 61,734 | |||||||||||||
Maintenance payments | 523,922 | 591,757 | Maintenance payments | 526,589 | 465,618 | |||||||||||||
Total liabilities | 5,002,984 | 5,410,351 | Total liabilities | 5,759,691 | 5,395,393 | |||||||||||||
Commitments and Contingencies | Commitments and Contingencies | |||||||||||||||||
SHAREHOLDERS’ EQUITY | SHAREHOLDERS’ EQUITY | |||||||||||||||||
Preference shares, $0.01 par value, 50,000,000 shares authorized, no shares issued and outstanding | — | — | ||||||||||||||||
Common shares, $0.01 par value, 250,000,000 shares authorized, 78,707,968 shares issued and outstanding at September 30, 2017; and 78,593,133 shares issued and outstanding at December 31, 2016 | 787 | 786 | ||||||||||||||||
Preference shares, $0.01 par value, 50,000,000 shares authorized, 400 (aggregate liquidation preference of $400,000) shares issued and outstanding at August 31, 2023 and February 28, 2023 | Preference shares, $0.01 par value, 50,000,000 shares authorized, 400 (aggregate liquidation preference of $400,000) shares issued and outstanding at August 31, 2023 and February 28, 2023 | — | — | |||||||||||||||
Common shares, $0.01 par value, 250,000,000 shares authorized, 15,564 and 14,048 shares issued and outstanding at August 31, 2023 and February 28, 2023, respectively | Common shares, $0.01 par value, 250,000,000 shares authorized, 15,564 and 14,048 shares issued and outstanding at August 31, 2023 and February 28, 2023, respectively | — | — | |||||||||||||||
Additional paid-in capital | 1,525,766 | 1,521,190 | Additional paid-in capital | 2,078,774 | 1,878,774 | |||||||||||||
Retained earnings | 347,248 | 315,890 | ||||||||||||||||
Accumulated other comprehensive loss | (1,827 | ) | (3,552 | ) | ||||||||||||||
Retained earnings (accumulated deficit) | Retained earnings (accumulated deficit) | 10,472 | (7,316) | |||||||||||||||
Total shareholders’ equity | 1,871,974 | 1,834,314 | Total shareholders’ equity | 2,089,246 | 1,871,458 | |||||||||||||
Total liabilities and shareholders’ equity | $ | 6,874,958 | $ | 7,244,665 | Total liabilities and shareholders’ equity | $ | 7,848,937 | $ | 7,266,851 |
Three Months Ended September 30, | Nine Months Ended September 30, | Three Months Ended August 31, | Six Months Ended August 31, | |||||||||||||||||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||||||||||
Revenues: | Revenues: | |||||||||||||||||||||||||||||||||||||
Lease rental revenue | $ | 171,687 | $ | 181,975 | $ | 551,371 | $ | 537,670 | Lease rental revenue | $ | 150,351 | $ | 146,508 | $ | 297,086 | $ | 290,652 | |||||||||||||||||||||
Finance and sales-type lease revenue | 6,412 | 5,354 | 16,363 | 13,026 | ||||||||||||||||||||||||||||||||||
Direct financing and sales-type lease revenue | Direct financing and sales-type lease revenue | 5,085 | 2,265 | 6,158 | 4,863 | |||||||||||||||||||||||||||||||||
Amortization of lease premiums, discounts and incentives | (2,388 | ) | (521 | ) | (8,780 | ) | (5,419 | ) | Amortization of lease premiums, discounts and incentives | (7,124) | (5,518) | (14,331) | (10,906) | |||||||||||||||||||||||||
Maintenance revenue | 14,507 | 6,829 | 55,738 | 20,603 | Maintenance revenue | 15,046 | 20,114 | 49,566 | 47,213 | |||||||||||||||||||||||||||||
Total lease revenue | 190,218 | 193,637 | 614,692 | 565,880 | Total lease revenue | 163,358 | 163,369 | 338,479 | 331,822 | |||||||||||||||||||||||||||||
Gain on sale of flight equipment | Gain on sale of flight equipment | 4,453 | 10,049 | 47,047 | 13,736 | |||||||||||||||||||||||||||||||||
Other revenue | 1,193 | 1,015 | 4,526 | 2,425 | Other revenue | 145 | 161 | 921 | 3,585 | |||||||||||||||||||||||||||||
Total revenues | 191,411 | 194,652 | 619,218 | 568,305 | Total revenues | 167,956 | 173,579 | 386,447 | 349,143 | |||||||||||||||||||||||||||||
Operating expenses: | Operating expenses: | |||||||||||||||||||||||||||||||||||||
Depreciation | 70,018 | 76,201 | 227,446 | 227,918 | Depreciation | 86,328 | 82,106 | 175,117 | 163,424 | |||||||||||||||||||||||||||||
Interest, net | 60,636 | 61,797 | 185,376 | 188,490 | Interest, net | 57,035 | 50,587 | 113,926 | 100,881 | |||||||||||||||||||||||||||||
Selling, general and administrative (including non-cash share-based payment expense of $2,506 and $2,059 for the three months ended, and $10,636 and $5,796 for the nine months ended September 30, 2017 and 2016, respectively) | 17,137 | 15,985 | 55,491 | 46,883 | ||||||||||||||||||||||||||||||||||
Selling, general and administrative | Selling, general and administrative | 18,882 | 17,393 | 39,717 | 37,309 | |||||||||||||||||||||||||||||||||
Provision for credit losses | Provision for credit losses | (834) | 109 | 6,125 | 689 | |||||||||||||||||||||||||||||||||
Impairment of flight equipment | — | 10,462 | 80,430 | 27,185 | Impairment of flight equipment | 1,100 | 33,671 | 2,197 | 38,099 | |||||||||||||||||||||||||||||
Maintenance and other costs | 2,572 | 1,834 | 7,846 | 5,504 | Maintenance and other costs | 8,854 | 5,212 | 17,387 | 13,277 | |||||||||||||||||||||||||||||
Total expenses | 150,363 | 166,279 | 556,589 | 495,980 | ||||||||||||||||||||||||||||||||||
Total operating expenses | Total operating expenses | 171,365 | 189,078 | 354,469 | 353,679 | |||||||||||||||||||||||||||||||||
Other income (expense): | Other income (expense): | |||||||||||||||||||||||||||||||||||||
Gain (loss) on sale of flight equipment | 21,642 | (73 | ) | 35,926 | 14,932 | |||||||||||||||||||||||||||||||||
Loss on extinguishment of debt | Loss on extinguishment of debt | — | — | — | (463) | |||||||||||||||||||||||||||||||||
Other | (360 | ) | (210 | ) | (3,069 | ) | (136 | ) | Other | 3,372 | 2,072 | 4,709 | 2,072 | |||||||||||||||||||||||||
Total other income (expense) | 21,282 | (283 | ) | 32,857 | 14,796 | |||||||||||||||||||||||||||||||||
Total other income | Total other income | 3,372 | 2,072 | 4,709 | 1,609 | |||||||||||||||||||||||||||||||||
Income from continuing operations before income taxes and earnings of unconsolidated equity method investments | 62,330 | 28,090 | 95,486 | 87,121 | ||||||||||||||||||||||||||||||||||
Income tax provision | 6,195 | 2,458 | 8,536 | 8,782 | ||||||||||||||||||||||||||||||||||
Earnings of unconsolidated equity method investments, net of tax | 1,296 | 1,805 | 5,804 | 5,390 | ||||||||||||||||||||||||||||||||||
Net income | $ | 57,431 | $ | 27,437 | $ | 92,754 | $ | 83,729 | ||||||||||||||||||||||||||||||
Income (loss) from continuing operations before income taxes and earnings of unconsolidated equity method investment | Income (loss) from continuing operations before income taxes and earnings of unconsolidated equity method investment | (37) | (13,427) | 36,687 | (2,927) | |||||||||||||||||||||||||||||||||
Income tax provision (benefit) | Income tax provision (benefit) | (5,099) | (4,068) | 9,261 | (739) | |||||||||||||||||||||||||||||||||
Earnings of unconsolidated equity method investment, net of tax | Earnings of unconsolidated equity method investment, net of tax | 456 | 666 | 862 | 1,177 | |||||||||||||||||||||||||||||||||
Earnings per common share — Basic: | ||||||||||||||||||||||||||||||||||||||
Net income per share | $ | 0.73 | $ | 0.35 | $ | 1.18 | $ | 1.06 | ||||||||||||||||||||||||||||||
Net income (loss) | Net income (loss) | $ | 5,518 | $ | (8,693) | $ | 28,288 | $ | (1,011) | |||||||||||||||||||||||||||||
Earnings per common share — Diluted: | ||||||||||||||||||||||||||||||||||||||
Net income per share | $ | 0.73 | $ | 0.35 | $ | 1.18 | $ | 1.06 | ||||||||||||||||||||||||||||||
Preference share dividends | Preference share dividends | (10,500) | (10,500) | (10,500) | (10,500) | |||||||||||||||||||||||||||||||||
Dividends declared per share | $ | 0.26 | $ | 0.24 | $ | 0.78 | $ | 0.72 | ||||||||||||||||||||||||||||||
Net income (loss) available to common shareholders | Net income (loss) available to common shareholders | $ | (4,982) | $ | (19,193) | $ | 17,788 | $ | (11,511) | |||||||||||||||||||||||||||||
Total comprehensive income (loss) available to common shareholders | Total comprehensive income (loss) available to common shareholders | $ | (4,982) | $ | (19,193) | $ | 17,788 | $ | (11,511) |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Net income | $ | 57,431 | $ | 27,437 | $ | 92,754 | $ | 83,729 | |||||||
Other comprehensive income, net of tax: | |||||||||||||||
Net change in fair value of derivatives, net of tax expense of $0 for all periods presented | — | — | — | (1 | ) | ||||||||||
Net derivative loss reclassified into earnings | 569 | 705 | 1,725 | 9,074 | |||||||||||
Other comprehensive income | 569 | 705 | 1,725 | 9,073 | |||||||||||
Total comprehensive income | $ | 58,000 | $ | 28,142 | $ | 94,479 | $ | 92,802 |
Six Months Ended August 31, | |||||||||||
2023 | 2022 | ||||||||||
Cash flows from operating activities: | |||||||||||
Net income (loss) | $ | 28,288 | $ | (1,011) | |||||||
Adjustments to reconcile net income to net cash and restricted cash provided by operating activities: | |||||||||||
Depreciation | 175,117 | 163,424 | |||||||||
Amortization of deferred financing costs | 8,321 | 7,095 | |||||||||
Amortization of lease premiums, discounts and incentives | 14,331 | 10,906 | |||||||||
Deferred income taxes | 6,179 | 6,588 | |||||||||
Collections on net investment in leases | 1,598 | 4,016 | |||||||||
Security deposits and maintenance payments included in earnings | (9,895) | (2,133) | |||||||||
Gain on sale of flight equipment | (47,047) | (13,736) | |||||||||
Loss on extinguishment of debt | — | 463 | |||||||||
Impairment of flight equipment | 2,197 | 38,099 | |||||||||
Provision for credit losses | 6,125 | 689 | |||||||||
Other | (845) | (1,179) | |||||||||
Changes in certain assets and liabilities: | |||||||||||
Accounts receivable | 1,437 | 5,808 | |||||||||
Other assets | (9,723) | (8,223) | |||||||||
Accounts payable, accrued expenses and other liabilities | (3,833) | (2,284) | |||||||||
Lease rentals received in advance | 14,165 | 7,094 | |||||||||
Net cash and restricted cash provided by operating activities | 186,415 | 215,616 | |||||||||
Cash flows from investing activities: | |||||||||||
Acquisition and improvement of flight equipment | (379,349) | (372,474) | |||||||||
Proceeds from sale of flight equipment | 126,011 | 171,065 | |||||||||
Aircraft purchase deposits and progress payments, net of deposits returned and aircraft sales deposits | 6,852 | 4,504 | |||||||||
Other | (4,026) | 1,500 | |||||||||
Net cash and restricted cash used in investing activities | (250,512) | (195,405) | |||||||||
Cash flows from financing activities: | |||||||||||
Proceeds from issuance of common shares | 200,000 | — | |||||||||
Proceeds from secured and unsecured debt financings | 1,273,709 | 75,000 | |||||||||
Repayments of secured and unsecured debt financings | (963,507) | (58,355) | |||||||||
Debt extinguishment costs | — | (291) | |||||||||
Deferred financing costs | (7,536) | (1,903) | |||||||||
Security deposits and maintenance payments received | 77,006 | 63,758 | |||||||||
Security deposits and maintenance payments returned | (10,508) | (11,239) | |||||||||
Dividends paid | (10,500) | (10,500) | |||||||||
Net cash and restricted cash provided by financing activities | 558,664 | 56,470 | |||||||||
Net increase in cash and restricted cash: | 494,567 | 76,681 | |||||||||
Cash and restricted cash at beginning of period | 231,861 | 170,682 | |||||||||
Cash and restricted cash at end of period | $ | 726,428 | $ | 247,363 |
Nine Months Ended September 30, | |||||||
2017 | 2016 | ||||||
Cash flows from operating activities: | |||||||
Net income | $ | 92,754 | $ | 83,729 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation | 227,446 | 227,918 | |||||
Amortization of deferred financing costs | 15,860 | 13,567 | |||||
Amortization of lease premiums, discounts and incentives | 8,780 | 5,419 | |||||
Deferred income taxes | (1,369 | ) | 3,129 | ||||
Non-cash share-based payment expense | 10,636 | 5,796 | |||||
Cash flow hedges reclassified into earnings | 1,725 | 9,074 | |||||
Security deposits and maintenance payments included in earnings | (17,147 | ) | (12,844 | ) | |||
Gain on sale of flight equipment | (35,926 | ) | (14,932 | ) | |||
Impairment of flight equipment | 80,430 | 27,185 | |||||
Other | 2,078 | (4,712 | ) | ||||
Changes in certain assets and liabilities: | |||||||
Accounts receivable | 415 | 1,699 | |||||
Other assets | (6,980 | ) | 3,815 | ||||
Accounts payable, accrued expenses and other liabilities | 17,648 | 16,459 | |||||
Lease rentals received in advance | (2,892 | ) | 2,111 | ||||
Net cash and restricted cash provided by operating activities | 393,458 | 367,413 | |||||
Cash flows from investing activities: | |||||||
Acquisition and improvement of flight equipment | (353,492 | ) | (792,270 | ) | |||
Proceeds from sale of flight equipment | 764,984 | 488,749 | |||||
Net investment in finance and sales-type leases | (246,871 | ) | (78,892 | ) | |||
Collections on finance and sales-type leases | 23,673 | 14,413 | |||||
Aircraft purchase deposits and progress payments, net of returned deposits and aircraft sales deposits | (14,068 | ) | (14,035 | ) | |||
Unconsolidated equity method investments and associated costs | — | (12,686 | ) | ||||
Other | (405 | ) | (812 | ) | |||
Net cash and restricted cash provided by (used in) investing activities | 173,821 | (395,533 | ) | ||||
Cash flows from financing activities: | |||||||
Repurchase of shares | (4,862 | ) | (36,573 | ) | |||
Proceeds from secured and unsecured debt financings | 500,000 | 999,350 | |||||
Repayments of secured and unsecured debt financings | (852,451 | ) | (489,134 | ) | |||
Deferred financing costs | (8,540 | ) | (17,273 | ) | |||
Restricted secured liquidity facility collateral | — | 65,000 | |||||
Liquidity facility | — | (65,000 | ) | ||||
Security deposits and maintenance payments received | 138,813 | 123,767 | |||||
Security deposits and maintenance payments returned | (104,475 | ) | (37,036 | ) | |||
Dividends paid | (61,396 | ) | (56,702 | ) | |||
Other | — | (2,073 | ) | ||||
Net cash and restricted cash (used in) provided by financing activities | (392,911 | ) | 484,326 | ||||
Net increase in cash and restricted cash | 174,368 | 456,206 | |||||
Cash and restricted cash at beginning of period | 508,817 | 254,041 | |||||
Cash and restricted cash at end of period | $ | 683,185 | $ | 710,247 |
Nine Months Ended September 30, | |||||||
2017 | 2016 | ||||||
Supplemental disclosures of cash flow information: | |||||||
Cash paid for interest, net of capitalized interest | $ | 156,428 | $ | 141,653 | |||
Cash paid for income taxes | $ | 3,622 | $ | 12,904 | |||
Supplemental disclosures of non-cash investing activities: | |||||||
Advance lease rentals, security deposits and maintenance payments assumed in asset acquisitions | $ | 133,389 | $ | 110,472 | |||
Advance lease rentals, security deposits, and maintenance payments settled in sale of flight equipment | $ | 22,542 | $ | 26,671 | |||
Transfers from Flight equipment held for lease to Net investment in finance and sales-type leases, Other assets, and Maintenance reserves | $ | 154,213 | $ | 140,150 |
Six Months Ended August 31, | |||||||||||
2023 | 2022 | ||||||||||
Reconciliation to Consolidated Balance Sheets: | |||||||||||
Cash and cash equivalents | $ | 726,428 | $ | 246,713 | |||||||
Restricted cash and cash equivalents | — | 650 | |||||||||
Unrestricted and restricted cash and cash equivalents | $ | 726,428 | $ | 247,363 | |||||||
Supplemental disclosures of cash flow information: | |||||||||||
Cash paid for interest, net of amounts capitalized | $ | 116,827 | $ | 93,007 | |||||||
Cash paid for income taxes | $ | 5,631 | $ | 200 | |||||||
Supplemental disclosures of non-cash investing activities: | |||||||||||
Advance lease rentals, security deposits, maintenance payments, other liabilities and other assets assumed in asset acquisitions | $ | 12,927 | $ | 6,100 | |||||||
Advance lease rentals, security deposits, maintenance payments, other liabilities and other assets settled in sale of flight equipment | $ | 11,974 | $ | 14,791 | |||||||
Transfers from flight equipment held for lease to Net investment in leases and Other assets | $ | 182,818 | $ | 8,895 |
Common Shares | Preference Shares | Additional Paid-In Capital | Retained Earnings (Accumulated Deficit) | Total Shareholders’ Equity | |||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||||||||||
Balance, February 28, 2023 | 14,048 | $ | — | 400 | $ | — | $ | 1,878,774 | $ | (7,316) | $ | 1,871,458 | |||||||||||||||||||||||||||||
Net income | — | — | — | — | — | 22,770 | 22,770 | ||||||||||||||||||||||||||||||||||
Balance, May 31, 2023 | 14,048 | $ | — | 400 | $ | — | 1,878,774 | 15,454 | 1,894,228 | ||||||||||||||||||||||||||||||||
Issuance of common shares | 1,516 | — | — | — | 200,000 | — | 200,000 | ||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | 5,518 | 5,518 | ||||||||||||||||||||||||||||||||||
Preference share dividends | — | — | — | — | — | (10,500) | (10,500) | ||||||||||||||||||||||||||||||||||
Balance, August 31, 2023 | 15,564 | $ | — | 400 | $ | — | $ | 2,078,774 | $ | 10,472 | $ | 2,089,246 | |||||||||||||||||||||||||||||
Common Shares | Preference Shares | Additional Paid-In Capital | Accumulated Deficit | Total Shareholders’ Equity | |||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||||||||||
Balance, February 28, 2022 | 14,048 | $ | — | 400 | $ | — | $ | 1,878,774 | $ | (49,075) | $ | 1,829,699 | |||||||||||||||||||||||||||||
Net income | — | — | — | — | — | 7,682 | 7,682 | ||||||||||||||||||||||||||||||||||
Balance, May 31, 2022 | 14,048 | $ | — | 400 | $ | — | 1,878,774 | (41,393) | 1,837,381 | ||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | (8,693) | (8,693) | ||||||||||||||||||||||||||||||||||
Preference share dividends | — | — | — | — | — | (10,500) | (10,500) | ||||||||||||||||||||||||||||||||||
Balance, August 31, 2022 | 14,048 | $ | — | 400 | $ | — | $ | 1,878,774 | $ | (60,586) | $ | 1,818,188 |
Fair Value Measurements at August 31, 2023 Using Fair Value Hierarchy | |||||||||||||||||||||||||||||
Fair Value as of August 31, 2023 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Valuation Technique | |||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 726,428 | $ | 726,428 | $ | — | $ | — | Market | ||||||||||||||||||||
Investment in debt securities | 5,029 | — | — | 5,029 | Income | ||||||||||||||||||||||||
Investment in equity securities | 5,757 | 2,313 | — | 3,444 | Market/Income | ||||||||||||||||||||||||
Total | $ | 737,214 | $ | 728,741 | $ | — | $ | 8,473 | |||||||||||||||||||||
Fair Value Measurements at September 30, 2017 Using Fair Value Hierarchy | |||||||||||||||||
Fair Value as of September 30, 2017 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Valuation Technique | |||||||||||||
Assets: | |||||||||||||||||
Cash and cash equivalents | $ | 662,649 | $ | 662,649 | $ | — | $ | — | Market | ||||||||
Restricted cash and cash equivalents | 20,536 | 20,536 | — | — | Market | ||||||||||||
Derivative assets | 2,663 | — | 2,663 | — | Market | ||||||||||||
Total | $ | 685,848 | $ | 683,185 | $ | 2,663 | $ | — |
Fair Value Measurements at December 31, 2016 Using Fair Value Hierarchy | Fair Value Measurements at February 28, 2023 Using Fair Value Hierarchy | |||||||||||||||||||||||||||||||||||||||||||||
Fair Value as of December 31, 2016 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Valuation Technique | Fair Value as of February 28, 2023 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Valuation Technique | |||||||||||||||||||||||||||||||||||||
Assets: | Assets: | |||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 455,579 | $ | 455,579 | $ | — | $ | — | Market | Cash and cash equivalents | $ | 231,861 | $ | 231,861 | $ | — | $ | — | Market | |||||||||||||||||||||||||||
Restricted cash and cash equivalents | 53,238 | 53,238 | — | — | Market | |||||||||||||||||||||||||||||||||||||||||
Derivative assets | 5,735 | — | 5,735 | — | Market | |||||||||||||||||||||||||||||||||||||||||
Investment in debt securities | Investment in debt securities | 5,029 | — | — | 5,029 | Income | ||||||||||||||||||||||||||||||||||||||||
Investment in equity securities | Investment in equity securities | 5,790 | 2,346 | — | 3,444 | Market/Income | ||||||||||||||||||||||||||||||||||||||||
Total | $ | 514,552 | $ | 508,817 | $ | 5,735 | $ | — | Total | $ | 242,680 | $ | 234,207 | $ | — | $ | 8,473 |
September 30, 2017 | December 31, 2016 | ||||||||||||||
Carrying Amount of Liability | Fair Value of Liability | Carrying Amount of Liability | Fair Value of Liability | ||||||||||||
Unsecured Term Loan | $ | 120,000 | $ | 120,000 | $ | 120,000 | $ | 120,000 | |||||||
ECA Financings | 236,879 | 243,880 | 305,276 | 316,285 | |||||||||||
Bank Financings | 651,434 | 649,557 | 933,541 | 925,783 | |||||||||||
Senior Notes | 3,200,000 | 3,422,824 | 3,200,000 | 3,387,125 |
Year Ending December 31, | Amount | |||
Remainder of 2017 | $ | 163,587 | ||
2018 | 630,237 | |||
2019 | 532,026 | |||
2020 | 424,140 | |||
2021 | 350,093 | |||
Thereafter | 830,674 | |||
Total | $ | 2,930,757 |
August 31, 2023 | February 28, 2023 | ||||||||||||||||||||||
Carrying Amount of Asset | Fair Value of Asset | Carrying Amount of Asset | Fair Value of Asset | ||||||||||||||||||||
Investment in debt securities | $ | 5,029 | $ | 5,029 | $ | 5,029 | $ | 5,029 | |||||||||||||||
Investment in equity securities | 5,757 | 5,757 | 5,790 | 5,790 | |||||||||||||||||||
Carrying Amount of Liability | Fair Value of Liability | Carrying Amount of Liability | Fair Value of Liability | ||||||||||||||||||||
Credit Facilities | $ | 20,000 | $ | 20,000 | $ | 20,000 | $ | 20,000 | |||||||||||||||
Unsecured Term Loan | 155,000 | 154,932 | 155,000 | 151,449 | |||||||||||||||||||
Term Financings | 922,688 | 918,700 | 761,283 | 739,804 | |||||||||||||||||||
Senior Notes | 3,850,000 | 3,685,049 | 3,700,000 | 3,524,563 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||
Region | 2017 | 2016 | 2017 | 2016 | |||||||
Asia and Pacific | 35 | % | 40 | % | 38 | % | 40 | % | |||
Europe | 24 | % | 22 | % | 23 | % | 23 | % | |||
Middle East and Africa | 12 | % | 12 | % | 12 | % | 12 | % | |||
North America | 9 | % | 7 | % | 8 | % | 6 | % | |||
South America | 20 | % | 19 | % | 19 | % | 19 | % | |||
Total | 100 | % | 100 | % | 100 | % | 100 | % |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Number of Lessees | Combined % of Lease Rental Revenue | Number of Lessees | Combined % of Lease Rental Revenue | Number of Lessees | Combined % of Lease Rental Revenue | Number of Lessees | Combined % of Lease Rental Revenue | ||||||||
Largest lessees by lease rental revenue | 4 | 25% | 4 | 25% | 4 | 24% | 4 | 25% |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||||||||||
Country | Revenue | % of Total Revenue | Revenue | % of Total Revenue | Revenue | % of Total Revenue | Revenue | % of Total Revenue | |||||||||||||||
Indonesia(1) | $ | — | —% | $ | 21,745 | 11% | $ | — | —% | $ | 61,195 | 11% |
September 30, 2017 | December 31, 2016 | ||||||||||
Region | Number of Aircraft | Net Book Value % | Number of Aircraft | Net Book Value % | |||||||
Asia and Pacific | 54 | 31 | % | 61 | 38 | % | |||||
Europe | 67 | 28 | % | 66 | 23 | % | |||||
Middle East and Africa | 13 | 9 | % | 14 | 11 | % | |||||
North America | 34 | 11 | % | 26 | 8 | % | |||||
South America | 24 | 21 | % | 23 | 18 | % | |||||
Off-lease | — | — | % | 3 | (1) | 2 | % | ||||
Total | 192 | 100 | % | 193 | 100 | % |
Amount | ||||||||
Balance at February 28, 2023 | $ | 6,567,606 | ||||||
Additions | 365,025 | |||||||
Depreciation | (174,652) | |||||||
Disposals and transfers to net investment in leases and held for sale | (255,054) | |||||||
Impairments | (1,097) | |||||||
Balance at August 31, 2023 | $ | 6,501,828 | ||||||
Accumulated depreciation as of | $ | 2,254,500 |
Year Ending February 28/29, | Amount(1) | |||||||
2024 (Remainder of fiscal year) | $ | 302,190 | ||||||
2025 | 540,128 | |||||||
2026 | 426,677 | |||||||
2027 | 361,015 | |||||||
2028 | 290,367 | |||||||
Thereafter | 862,123 | |||||||
Total | $ | 2,782,500 |
August 31, 2023 | February 28, 2023 | |||||||||||||
Lease receivable | $ | 133,663 | $ | 31,674 | ||||||||||
Unguaranteed residual value of flight equipment | 122,184 | 37,287 | ||||||||||||
Net investment leases | 255,847 | 68,961 | ||||||||||||
Allowance for credit losses | (7,113) | (1,267) | ||||||||||||
Net investment in leases, net | $ | 248,734 | $ | 67,694 |
Amount | ||||
Total lease payments to be received | $ | 297,061 | ||
Less: Unearned income | (153,253 | ) | ||
Estimated residual values of leased flight equipment (unguaranteed) | 344,600 | |||
Net investment in finance and sales-type leases | $ | 488,408 |
Year Ending December 31, | Amount | |||
Remainder of 2017 | $ | 14,948 | ||
2018 | 54,842 | |||
2019 | 54,507 | |||
2020 | 52,287 | |||
2021 | 42,691 | |||
Thereafter | 77,786 | |||
Total lease payments to be received | $ | 297,061 |
Amount | ||||||||
Balance at February 28, 2023 | $ | 1,267 | ||||||
Provision for credit losses | 6,125 | |||||||
Write-offs | (279) | |||||||
Balance at August 31, 2023 | $ | 7,113 |
Year Ending February 28/29, | Amount | |||||||
2024 (Remainder of fiscal year) | $ | 12,290 | ||||||
2025 | 23,711 | |||||||
2026 | 22,884 | |||||||
2027 | 23,111 | |||||||
2028 | 23,111 | |||||||
Thereafter | 73,548 | |||||||
Total lease payments to be received | 178,655 | |||||||
Present value of lease payments - lease receivable | (133,663) | |||||||
Difference between undiscounted lease payments and lease receivable | $ | 44,992 |
August 31, 2023 | February 28, 2023 | ||||||||||||||||||||||
Region | Number of Aircraft | Net Book Value % | Number of Aircraft | Net Book Value % | |||||||||||||||||||
Asia and Pacific | 62 | 28 | % | 62 | 28 | % | |||||||||||||||||
Europe | 90 | 30 | % | 88 | 30 | % | |||||||||||||||||
Middle East and Africa | 7 | 2 | % | 8 | 3 | % | |||||||||||||||||
North America | 43 | 23 | % | 38 | 20 | % | |||||||||||||||||
South America | 31 | 15 | % | 29 | 14 | % | |||||||||||||||||
Off-lease | 6 | (1) | 2 | % | 14 | 5 | % | ||||||||||||||||
Total | 239 | 100 | % | 239 | 100 | % |
August 31, 2023 | February 28, 2023 | ||||||||||||||||||||||
Country | Net Book Value | Net Book Value % | Number of Lessees | Net Book Value | Net Book Value % | Number of Lessees | |||||||||||||||||
United States(1) | $ | 671,246 | 10% | 5 | $ | — | —% | — |
Three Months Ended August 31, | Six Months Ended August 31, | ||||||||||||||||||||||
Region | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
Asia and Pacific | 29 | % | 35 | % | 30 | % | 34 | % | |||||||||||||||
Europe | 31 | % | 29 | % | 30 | % | 29 | % | |||||||||||||||
Middle East and Africa | 4 | % | 5 | % | 4 | % | 5 | % | |||||||||||||||
North America | 23 | % | 18 | % | 23 | % | 17 | % | |||||||||||||||
South America | 13 | % | 13 | % | 13 | % | 15 | % | |||||||||||||||
Total | 100 | % | 100 | % | 100 | % | 100 | % |
Three Months Ended August 31, | Six Months Ended August 31, | ||||||||||||||||||||||||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||||||||||||||||||||||
Number of Lessees | Combined % of Lease Rental Revenue | Number of Lessees | Combined % of Lease Rental Revenue | Number of Lessees | Combined % of Lease Rental Revenue | Number of Lessees | Combined % of Lease Rental Revenue | ||||||||||||||||||||||||||||||||||||||||
Largest lessees by lease rental revenue | 3 | 21% | 4 | 28% | 3 | 21% | 3 | 23% |
Amount | ||||
Investment in joint ventures at December 31, 2016 | $ | 72,977 | ||
Investment in joint ventures | 2,117 | |||
Earnings from joint ventures, net of tax | 5,804 | |||
Distributions | (4,800 | ) | ||
Investment in joint ventures at September 30, 2017 | $ | 76,098 |
Amount | ||||||||
Balance at February 28, 2023 | $ | 40,505 | ||||||
Earnings of unconsolidated equity method investment, net of tax | 862 | |||||||
Balance at August 31, 2023 | $ | 41,367 |
At August 31, 2023 | At February 28, 2023 | ||||||||||||||||||||||||||||
Debt Obligation | Outstanding Borrowings | Number of Aircraft | Interest Rate | Final Stated Maturity | Outstanding Borrowings | ||||||||||||||||||||||||
Secured Debt Financings: | |||||||||||||||||||||||||||||
Term Financings(1) | $ | 922,688 | 38 | 2.36% to 7.74% | 09/13/24 to 06/27/32 | $ | 761,283 | ||||||||||||||||||||||
Less: Debt issuance costs and discounts | (8,824) | — | (8,985) | ||||||||||||||||||||||||||
Total secured debt financings, net of debt issuance costs and discounts | 913,864 | 38 | 752,298 | ||||||||||||||||||||||||||
Unsecured Debt Financings: | |||||||||||||||||||||||||||||
5.000% Senior Notes due 2023 | — | 5.00% | 04/01/23 | 500,000 | |||||||||||||||||||||||||
4.400% Senior Notes due 2023 | 650,000 | 4.40% | 09/25/23 | 650,000 | |||||||||||||||||||||||||
Senior Notes due 2024 | 500,000 | 4.125% | 05/01/24 | 500,000 | |||||||||||||||||||||||||
Senior Notes due 2025 | 650,000 | 5.25% | 08/11/25 | 650,000 | |||||||||||||||||||||||||
Senior Notes due 2026 | 650,000 | 4.25% | 06/15/26 | 650,000 | |||||||||||||||||||||||||
2.850% Senior Notes due 2028 | 750,000 | 2.85% | 01/26/28 | 750,000 | |||||||||||||||||||||||||
6.500% Senior Notes due 2028 | 650,000 | 6.50% | 07/18/28 | — | |||||||||||||||||||||||||
Unsecured Term Loans | 155,000 | 6.90% | 02/27/24 | 155,000 | |||||||||||||||||||||||||
Revolving Credit Facilities | 20,000 | 7.21% | 02/28/24 to 05/24/25 | 20,000 | |||||||||||||||||||||||||
Less: Debt issuance costs and discounts | (33,125) | (32,546) | |||||||||||||||||||||||||||
Total unsecured debt financings, net of debt issuance costs and discounts | 3,991,875 | 3,842,454 | |||||||||||||||||||||||||||
Total secured and unsecured debt financings, net of debt issuance costs and discounts | $ | 4,905,739 | $ | 4,594,752 |
At September 30, 2017 | At December 31, 2016 | |||||||||||||
Debt Obligation | Outstanding Borrowings | Number of Aircraft | Interest Rate | Final Stated Maturity | Outstanding Borrowings | |||||||||
Secured Debt Financings: | ||||||||||||||
ECA Financings(1) | $ | 236,879 | 6 | 3.02% to 3.96% | 12/03/21 to 11/30/24 | $ | 305,276 | |||||||
Bank Financings(2) | 651,434 | 23 | 2.22% to 4.45% | 9/11/18 to 01/19/26 | 933,541 | |||||||||
Less: Debt Issuance Costs | (13,439 | ) | — | (19,783 | ) | |||||||||
Total secured debt financings, net of debt issuance costs | 874,874 | 29 | 1,219,034 | |||||||||||
Unsecured Debt Financings: | ||||||||||||||
Senior Notes due 2017 | — | 6.75% | 04/15/17 | 500,000 | ||||||||||
Senior Notes due 2018 | 400,000 | 4.625% | 12/15/18 | 400,000 | ||||||||||
Senior Notes due 2019 | 500,000 | 6.25% | 12/01/19 | 500,000 | ||||||||||
Senior Notes due 2020 | 300,000 | 7.625% | 04/15/20 | 300,000 | ||||||||||
Senior Notes due 2021 | 500,000 | 5.125% | 03/15/21 | 500,000 | ||||||||||
Senior Notes due 2022 | 500,000 | 5.50% | 02/15/22 | 500,000 | ||||||||||
Senior Notes due 2023 | 500,000 | 5.00% | 04/01/23 | 500,000 | ||||||||||
Senior Notes due 2024 | 500,000 | 4.125% | 05/01/24 | — | ||||||||||
Unsecured Term Loan | 120,000 | 3.320% | 04/28/19 | 120,000 | ||||||||||
Revolving Credit Facilities | — | N/A | 11/21/19 to 05/13/20 | — | ||||||||||
Less: Debt Issuance Costs | (33,760 | ) | (32,789 | ) | ||||||||||
Total unsecured debt financings, net of debt issuance costs | 3,286,240 | 3,287,211 | ||||||||||||
Total secured and unsecured debt financings, net of debt issuance costs | $ | 4,161,114 | $ | 4,506,245 |
Declaration Date | Dividend per Common Share | Aggregate Dividend Amount | Record Date | Payment Date | |||||||
August 4, 2017 | $ | 0.26 | $ | 20,464 | August 31, 2017 | September 15, 2017 | |||||
May 2, 2017 | $ | 0.26 | $ | 20,482 | May 31, 2017 | June 15, 2017 | |||||
February 9, 2017 | $ | 0.26 | $ | 20,466 | February 28, 2017 | March 15, 2017 | |||||
October 28, 2016 | $ | 0.26 | $ | 20,434 | November 29, 2016 | December 15, 2016 | |||||
August 2, 2016 | $ | 0.24 | $ | 18,872 | August 26, 2016 | September 15, 2016 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||
Weighted-average shares: | |||||||||||
Common shares outstanding | 78,237,199 | 77,989,933 | 78,197,091 | 78,230,011 | |||||||
Restricted common shares | 569,617 | 680,249 | 569,453 | 646,299 | |||||||
Total weighted-average shares | 78,806,816 | 78,670,182 | 78,766,544 | 78,876,310 | |||||||
Percentage of weighted-average shares: | |||||||||||
Common shares outstanding | 99.28 | % | 99.14 | % | 99.28 | % | 99.18 | % | |||
Restricted common shares | 0.72 | % | 0.86 | % | 0.72 | % | 0.82 | % | |||
Total percentage of weighted-average shares | 100.00 | % | 100.00 | % | 100.00 | % | 100.00 | % |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Earnings per share – Basic: | |||||||||||||||
Net income | $ | 57,431 | $ | 27,437 | $ | 92,754 | $ | 83,729 | |||||||
Less: Distributed and undistributed earnings allocated to restricted common shares(1) | (415 | ) | (237 | ) | (671 | ) | (686 | ) | |||||||
Earnings available to common shareholders – Basic | $ | 57,016 | $ | 27,200 | $ | 92,083 | $ | 83,043 | |||||||
Weighted-average common shares outstanding – Basic | 78,237,199 | 77,989,933 | 78,197,091 | 78,230,011 | |||||||||||
Earnings per common share – Basic | $ | 0.73 | $ | 0.35 | $ | 1.18 | $ | 1.06 | |||||||
Earnings per share – Diluted: | |||||||||||||||
Net income | $ | 57,431 | $ | 27,437 | $ | 92,754 | $ | 83,729 | |||||||
Less: Distributed and undistributed earnings allocated to restricted common shares(1) | (415 | ) | (237 | ) | (671 | ) | (686 | ) | |||||||
Earnings available to common shareholders – Diluted | $ | 57,016 | $ | 27,200 | $ | 92,083 | $ | 83,043 | |||||||
Weighted-average common shares outstanding – Basic | 78,237,199 | 77,989,933 | 78,197,091 | 78,230,011 | |||||||||||
Effect of dilutive shares(2) | 137,810 | 32,235 | 169,053 | 35,804 | |||||||||||
Weighted-average common shares outstanding – Diluted | 78,375,009 | 78,022,168 | 78,366,144 | 78,265,815 | |||||||||||
Earnings per common share – Diluted | $ | 0.73 | $ | 0.35 | $ | 1.18 | $ | 1.06 |
Three Months Ended August 31, | Six Months Ended August 31, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
U.S. operations | $ | 6,588 | $ | 4,790 | $ | 10,870 | $ | 10,126 | |||||||||||||||
Non-U.S. operations | (6,625) | (18,217) | 25,817 | (13,053) | |||||||||||||||||||
Income (loss) from continuing operations before income taxes and earnings of unconsolidated equity method investment | $ | (37) | $ | (13,427) | $ | 36,687 | $ | (2,927) |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
U.S. operations | $ | 531 | $ | (92 | ) | $ | 2,029 | $ | 1,652 | ||||||
Non-U.S. operations | 61,799 | 28,182 | 93,457 | 85,469 | |||||||||||
Income from continuing operations before income taxes and earnings of unconsolidated equity method investments | $ | 62,330 | $ | 28,090 | $ | 95,486 | $ | 87,121 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Notional U.S. federal income tax expense at the statutory rate | $ | 21,815 | $ | 9,831 | $ | 33,420 | $ | 30,492 | |||||||
U.S. state and local income tax, net | 33 | 14 | 122 | 139 | |||||||||||
Non-U.S. operations: | |||||||||||||||
Bermuda | (12,260 | ) | (6,025 | ) | (10,632 | ) | (16,687 | ) | |||||||
Ireland | (315 | ) | 82 | (569 | ) | 2,155 | |||||||||
Singapore | (1,518 | ) | (823 | ) | (9,107 | ) | (4,874 | ) | |||||||
Other low tax jurisdictions | (1,450 | ) | (752 | ) | (4,377 | ) | (2,835 | ) | |||||||
Non-deductible expenses in the U.S. | (104 | ) | 133 | (298 | ) | 418 | |||||||||
Other | (6 | ) | (2 | ) | (23 | ) | (26 | ) | |||||||
Provision for income taxes | $ | 6,195 | $ | 2,458 | $ | 8,536 | $ | 8,782 |
Three Months Ended August 31, | Six Months Ended August 31, | |||||||||||||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||||||||||||
Interest on borrowings and other liabilities | Interest on borrowings and other liabilities | $ | 58,133 | $ | 48,392 | $ | 114,005 | $ | 95,633 | |||||||||||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||||||||||||||||||||||||
Interest on borrowings and other liabilities(1) | $ | 54,527 | $ | 57,589 | $ | 170,225 | $ | 166,692 | ||||||||||||||||||||||||||||||
Amortization of deferred losses related to interest rate derivatives | 569 | 705 | 1,725 | 9,074 | ||||||||||||||||||||||||||||||||||
Amortization of deferred financing fees and debt discount | 6,735 | 4,097 | 15,860 | 13,567 | 4,290 | 3,498 | 8,321 | 7,095 | ||||||||||||||||||||||||||||||
Interest expense | 61,831 | 62,391 | 187,810 | 189,333 | Interest expense | 62,423 | 51,890 | 122,326 | 102,728 | |||||||||||||||||||||||||||||
Less: Interest income | (1,061 | ) | (546 | ) | (2,089 | ) | (768 | ) | Less: Interest income | (4,736) | (748) | (7,028) | (1,007) | |||||||||||||||||||||||||
Less: Capitalized interest | (134 | ) | (48 | ) | (345 | ) | (75 | ) | Less: Capitalized interest | (652) | (555) | (1,372) | (840) | |||||||||||||||||||||||||
Interest, net | $ | 60,636 | $ | 61,797 | $ | 185,376 | $ | 188,490 | Interest, net | $ | 57,035 | $ | 50,587 | $ | 113,926 | $ | 100,881 |
Year Ending February 28/29, | Amount | |||||||
2024 (Remainder of fiscal year) | $ | 1,368 | ||||||
2025 | 2,944 | |||||||
2026 | 2,790 | |||||||
2027 | 2,728 | |||||||
2028 | 2,760 | |||||||
Thereafter | 17,681 | |||||||
Total | $ | 30,271 |
Year Ending February 28/29, | Amount | |||||||
2024 (Remainder of fiscal year) | $ | 131,307 | ||||||
2025 | 173,169 | |||||||
2026 | 97,877 | |||||||
2027 | — | |||||||
2028 | — | |||||||
Thereafter | — | |||||||
Total | $ | 402,353 |
Year Ending December 31, | Amount | |||
Remainder of 2017 | $ | 862,760 | ||
2018 | 52,518 | |||
2019 | 371,673 | |||
2020 | 375,216 | |||
2021 | 141,643 | |||
Thereafter | — | |||
Total | $ | 1,803,810 |
September 30, 2017 | December 31, 2016 | August 31, 2023 | February 28, 2023 | |||||||||||||||
Deferred income tax asset | $ | 1,736 | $ | 1,902 | Deferred income tax asset | $ | 268 | $ | 304 | |||||||||
Lease incentives and lease premiums, net of amortization of $38,827 and $39,638, respectively | 69,721 | 96,587 | ||||||||||||||||
Lease incentives and premiums, net of accumulated amortization of $84,863 and $77,722, respectively | Lease incentives and premiums, net of accumulated amortization of $84,863 and $77,722, respectively | 34,342 | 54,208 | |||||||||||||||
Flight equipment held for sale | 3,627 | 3,834 | Flight equipment held for sale | 24,902 | 59,370 | |||||||||||||
Aircraft purchase deposits and progress payments | 28,541 | 12,923 | ||||||||||||||||
Fair value of interest rate cap | 2,663 | 5,735 | ||||||||||||||||
Aircraft purchase deposits and Embraer E-2 progress payments | Aircraft purchase deposits and Embraer E-2 progress payments | 40,382 | 43,494 | |||||||||||||||
Right-of-use asset(1) | Right-of-use asset(1) | 16,721 | 16,930 | |||||||||||||||
Deferred rent receivable | Deferred rent receivable | 32,353 | 35,631 | |||||||||||||||
Investments, at fair value | Investments, at fair value | 10,786 | 10,819 | |||||||||||||||
Other assets | 25,107 | 27,417 | Other assets | 159,097 | 125,574 | |||||||||||||
Total other assets | $ | 131,395 | $ | 148,398 | Total other assets | $ | 318,851 | $ | 346,330 |
August 31, 2023 | February 28, 2023 | ||||||||||
Accounts payable, accrued expenses and other liabilities | $ | 64,237 | $ | 60,225 | |||||||
Deferred income tax liability | 86,133 | 79,990 | |||||||||
Accrued interest payable | 38,355 | 42,752 | |||||||||
Lease liability | 19,998 | 19,951 | |||||||||
Lease discounts, net of amortization of $45,183 and $45,586, respectively | 3,087 | 3,555 | |||||||||
Total accounts payable, accrued expenses and other liabilities | $ | 211,810 | $ | 206,473 | |||||||
September 30, 2017 | December 31, 2016 | ||||||
Accounts payable and accrued expenses | $ | 33,499 | $ | 24,337 | |||
Deferred income tax liability | 42,706 | 44,241 | |||||
Accrued interest payable | 56,611 | 43,107 | |||||
Lease discounts, net of amortization of $35,296 and $29,016, respectively | 12,875 | 15,842 | |||||
Total accounts payable, accrued expenses and other liabilities | $ | 145,691 | $ | 127,527 |
Changes in accumulated other comprehensive loss by component(1) | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Beginning balance | $ | (2,396 | ) | $ | (4,845 | ) | $ | (3,552 | ) | $ | (13,213 | ) | |||
Amounts recognized in other comprehensive loss on derivatives, net of tax expense of $0 for all periods presented | — | — | — | (690 | ) | ||||||||||
Amounts reclassified from accumulated other comprehensive loss into income, net of tax expense of $0 for all periods presented | 569 | 705 | 1,725 | 9,763 | |||||||||||
Net current period other comprehensive income | 569 | 705 | 1,725 | 9,073 | |||||||||||
Ending balance | $ | (1,827 | ) | $ | (4,140 | ) | $ | (1,827 | ) | $ | (4,140 | ) |
Reclassifications from accumulated other comprehensive loss(1) | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Amount of effective amortization of net deferred interest rate derivative losses(2) | $ | 569 | $ | 705 | $ | 1,725 | $ | 9,074 | |||||||
Effective amount of net settlements of interest rate derivatives, net of tax expense of $0 for all periods presented | — | — | — | 689 | |||||||||||
Amount of loss reclassified from accumulated other comprehensive loss into income | $ | 569 | $ | 705 | $ | 1,725 | $ | 9,763 |
Owned Aircraft | As of September 30, 2017(1) | As of September 30, 2016(1) | |||||
Net Book Value of Flight Equipment | $ | 5,979 | $ | 6,270 | |||
Net Book Value of Unencumbered Flight Equipment | $ | 4,572 | $ | 4,343 | |||
Number of Aircraft | 192 | 175 | |||||
Number of Unencumbered Aircraft | 163 | 139 | |||||
Number of Lessees | 71 | 65 | |||||
Number of Countries | 38 | 35 | |||||
Weighted Average Age (years)(2) | 8.7 | 7.6 | |||||
Weighted Average Remaining Lease Term (years)(2) | 4.7 | 5.3 | |||||
Weighted Average Fleet Utilization during the three months ended September 30, 2017 and 2016(3) | 100.0 | % | 98.2 | % | |||
Weighted Average Fleet Utilization during the nine months ended September 30, 2017 and 2016(3) | 99.2 | % | 98.9 | % | |||
Portfolio Yield for the three months ended September 30, 2017 and 2016(4) | 12.3 | % | 12.4 | % | |||
Portfolio Yield for the nine months ended September 30, 2017 and 2016(4) | 12.3 | % | 12.4 | % | |||
Managed Aircraft on behalf of Joint Ventures | |||||||
Net Book Value of Flight Equipment | $ | 661 | $ | 629 | |||
Number of Aircraft | 13 | 11 |
Owned Aircraft as of September 30, 2017 | Owned Aircraft as of September 30, 2016 | ||||||||||
Number of Aircraft | % of Net Book Value(1) | Number of Aircraft | % of Net Book Value(1) | ||||||||
Aircraft Type | |||||||||||
Passenger: | |||||||||||
Narrow-body | 159 | 60 | % | 134 | 52 | % | |||||
Wide-body | 28 | 34 | % | 32 | 40 | % | |||||
Total Passenger | 187 | 94 | % | 166 | 92 | % | |||||
Freighter | 5 | 6 | % | 9 | 8 | % | |||||
Total | 192 | 100 | % | 175 | 100 | % | |||||
Manufacturer | |||||||||||
Airbus | 108 | 53 | % | 87 | 50 | % | |||||
Boeing | 79 | 45 | % | 83 | 48 | % | |||||
Embraer | 5 | 2 | % | 5 | 2 | % | |||||
Total | 192 | 100 | % | 175 | 100 | % | |||||
Regional Diversification | |||||||||||
Asia and Pacific | 54 | 31 | % | 55 | 39 | % | |||||
Europe | 67 | 28 | % | 57 | 22 | % | |||||
Middle East and Africa | 13 | 9 | % | 14 | 11 | % | |||||
North America | 34 | 11 | % | 24 | 8 | % | |||||
South America | 24 | 21 | % | 23 | 19 | % | |||||
Off-lease | — | — | % | 2 | (2) | 1 | % | ||||
Total | 192 | 100 | % | 175 | 100 | % |
Owned Aircraft | As of August 31, 2023 | As of August 31, 2022 | |||||||||
(Dollars in millions) | |||||||||||
Net Book Value of Flight Equipment | $ | 6,751 | $ | 6,493 | |||||||
Net Book Value of Unencumbered Flight Equipment | $ | 5,208 | $ | 5,447 | |||||||
Number of Aircraft | 239 | 243 | |||||||||
Number of Unencumbered Aircraft | 201 | 212 | |||||||||
Number of Lessees | 73 | 74 | |||||||||
Number of Countries | 43 | 45 | |||||||||
Weighted Average Age (Years)(1) | 9.7 | 10.3 | |||||||||
Weighted Average Remaining Lease Term (Years)(1) | 5.2 | 5.0 | |||||||||
Weighted Average Fleet Utilization during the three months ended August 31, 2023 and 2022(2) | 98.3 | % | 94.9 | % | |||||||
Weighted Average Fleet Utilization during the six months ended August 31, 2023 and 2022(2) | 97.4 | % | 94.8 | % | |||||||
Portfolio Yield for the three months ended August 31, 2023 and 2022(3) | 9.1 | % | 9.2 | % | |||||||
Portfolio Yield for the six months ended August 31, 2023 and 2022(3) | 9.0 | % | 9.2 | % | |||||||
Managed Aircraft on behalf of Joint Venture | |||||||||||
Net Book Value of Flight Equipment | $ | 278 | $ | 292 | |||||||
Number of Aircraft | 9 | 9 |
Owned Aircraft as of August 31, 2023 | Owned Aircraft as of August 31, 2022 | ||||||||||||||||||||||
Number of Aircraft | % of Net Book Value | Number of Aircraft | % of Net Book Value | ||||||||||||||||||||
Aircraft Type | |||||||||||||||||||||||
Passenger: | |||||||||||||||||||||||
Narrow-body - new technology(1) | 50 | 32 | % | 31 | 21 | % | |||||||||||||||||
Narrow-body - current technology | 168 | 54 | % | 186 | 61 | % | |||||||||||||||||
Wide-body - current technology | 17 | 12 | % | 21 | 15 | % | |||||||||||||||||
Total Passenger | 235 | 98 | % | 238 | 97 | % | |||||||||||||||||
Freighter - current technology | 4 | 2 | % | 5 | 3 | % | |||||||||||||||||
Total | 239 | 100 | % | 243 | 100 | % | |||||||||||||||||
Manufacturer | |||||||||||||||||||||||
Airbus | 153 | 65 | % | 159 | 66 | % | |||||||||||||||||
Boeing | 67 | 27 | % | 72 | 29 | % | |||||||||||||||||
Embraer | 19 | 8 | % | 12 | 5 | % | |||||||||||||||||
Total | 239 | 100 | % | 243 | 100 | % | |||||||||||||||||
Regional Diversification | |||||||||||||||||||||||
Asia and Pacific | 62 | 28 | % | 65 | 29 | % | |||||||||||||||||
Europe | 90 | 30 | % | 90 | 29 | % | |||||||||||||||||
Middle East and Africa | 7 | 2 | % | 10 | 4 | % | |||||||||||||||||
North America | 43 | 23 | % | 37 | 19 | % | |||||||||||||||||
South America | 31 | 15 | % | 26 | 13 | % | |||||||||||||||||
Off-lease | 6 | (2) | 2 | % | 15 | 6 | % | ||||||||||||||||
Total | 239 | 100 | % | 243 | 100 | % |
Customer | Country | Percent of Net Book Value | Number of Aircraft | |||||||||||||||||
IndiGo | India | 8.7% | 13 | |||||||||||||||||
LATAM | Chile | 6.8% | 13 | |||||||||||||||||
KLM | Netherlands | 5.4% | 11 | |||||||||||||||||
Lion Air(1) | Indonesia | 4.5% | 10 | |||||||||||||||||
Viva Aerobus | Mexico | 4.1% | 7 | |||||||||||||||||
American Airlines | United States | 3.6% | 9 | |||||||||||||||||
Aerolineas Argentinas | Argentina | 3.3% | 6 | |||||||||||||||||
Volaris | Mexico | 3.2% | 6 | |||||||||||||||||
Air Canada | Canada | 3.2% | 5 | |||||||||||||||||
Frontier Airlines | United States | 2.8% | 4 | |||||||||||||||||
Total top ten customers | 45.6% | 84 | ||||||||||||||||||
All other customers | 54.4% | 155 | ||||||||||||||||||
Total all customers | 100.0% | 239 |
Three Months Ended August 31, | |||||||||||
2023 | 2022 | ||||||||||
(Dollars in thousands) | |||||||||||
Revenues: | |||||||||||
Lease rental revenue | $ | 150,351 | $ | 146,508 | |||||||
Direct financing and sales-type lease revenue | 5,085 | 2,265 | |||||||||
Amortization of lease premiums, discounts and incentives | (7,124) | (5,518) | |||||||||
Maintenance revenue | 15,046 | 20,114 | |||||||||
Total lease revenue | 163,358 | 163,369 | |||||||||
Gain on sale of flight equipment | 4,453 | 10,049 | |||||||||
Other revenue | 145 | 161 | |||||||||
Total revenues | 167,956 | 173,579 | |||||||||
Operating expenses: | |||||||||||
Depreciation | 86,328 | 82,106 | |||||||||
Interest, net | 57,035 | 50,587 | |||||||||
Selling, general and administrative | 18,882 | 17,393 | |||||||||
Provision for credit losses | (834) | 109 | |||||||||
Impairment of flight equipment | 1,100 | 33,671 | |||||||||
Maintenance and other costs | 8,854 | 5,212 | |||||||||
Total operating expenses | 171,365 | 189,078 | |||||||||
Other income: | |||||||||||
Other | 3,372 | 2,072 | |||||||||
Total other income | 3,372 | 2,072 | |||||||||
Loss from continuing operations before income taxes and earnings of unconsolidated equity method investment | (37) | (13,427) | |||||||||
Income tax benefit | (5,099) | (4,068) | |||||||||
Earnings of unconsolidated equity method investment, net of tax | 456 | 666 | |||||||||
Net income (loss) | $ | 5,518 | $ | (8,693) |
Three Months Ended September 30, | |||||||
2017 | 2016 | ||||||
(Dollars in thousands) | |||||||
Revenues: | |||||||
Lease rental revenue | $ | 171,687 | $ | 181,975 | |||
Finance and sales-type lease revenue | 6,412 | 5,354 | |||||
Amortization of net lease discounts and lease incentives | (2,388 | ) | (521 | ) | |||
Maintenance revenue | 14,507 | 6,829 | |||||
Total lease revenue | 190,218 | 193,637 | |||||
Other revenue | 1,193 | 1,015 | |||||
Total revenues | 191,411 | 194,652 | |||||
Operating expenses: | |||||||
Depreciation | 70,018 | 76,201 | |||||
Interest, net | 60,636 | 61,797 | |||||
Selling, general and administrative | 17,137 | 15,985 | |||||
Impairment of aircraft | — | 10,462 | |||||
Maintenance and other costs | 2,572 | 1,834 | |||||
Total operating expenses | 150,363 | 166,279 | |||||
Other income (expense): | |||||||
Gain (loss) on sale of flight equipment | 21,642 | (73 | ) | ||||
Other | (360 | ) | (210 | ) | |||
Total other income (expense) | 21,282 | (283 | ) | ||||
Income from continuing operations before income taxes and earnings of unconsolidated equity method investments | 62,330 | 28,090 | |||||
Income tax provision | 6,195 | 2,458 | |||||
Earnings of unconsolidated equity method investments, net of tax | 1,296 | 1,805 | |||||
Net income | $ | 57,431 | $ | 27,437 |
Three Months Ended August 31, | |||||||||||
2023 | 2022 | ||||||||||
(Dollars in thousands) | |||||||||||
Amortization of lease premiums | $ | (2,795) | $ | (2,723) | |||||||
Amortization of lease discounts | 223 | 126 | |||||||||
Amortization of lease incentives | (4,552) | (2,921) | |||||||||
Amortization of lease premiums, discounts and incentives | $ | (7,124) | $ | (5,518) |
Three Months Ended September 30, | |||||||
2017 | 2016 | ||||||
(Dollars in thousands) | |||||||
Amortization of lease incentives | $ | (1,810 | ) | $ | 42 | ||
Amortization of lease premiums | (2,266 | ) | (2,894 | ) | |||
Amortization of lease discounts | 1,688 | 2,331 | |||||
Amortization of net lease discounts and lease incentives | $ | (2,388 | ) | $ | (521 | ) |
Three Months Ended September 30, | |||||||
2017 | 2016 | ||||||
(Dollars in thousands) | |||||||
Interest on borrowings, net of settlements on interest rate derivatives, and other liabilities(1) | $ | 54,527 | $ | 57,589 | |||
Amortization of interest rate derivatives related to deferred losses | 569 | 705 | |||||
Amortization of deferred financing fees and debt discount(2) | 6,735 | 4,097 | |||||
Interest expense | 61,831 | 62,391 | |||||
Less: Interest income | (1,061 | ) | (546 | ) | |||
Less: Capitalized interest | (134 | ) | (48 | ) | |||
Interest, net | $ | 60,636 | $ | 61,797 |
Six Months Ended August 31, | |||||||||||
2023 | 2022 | ||||||||||
(Dollars in thousands) | |||||||||||
Revenues: | |||||||||||
Lease rental revenue | $ | 297,086 | $ | 290,652 | |||||||
Direct financing and sales-type lease revenue | 6,158 | 4,863 | |||||||||
Amortization of lease premiums, discounts and incentives | (14,331) | (10,906) | |||||||||
Maintenance revenue | 49,566 | 47,213 | |||||||||
Total lease revenue | 338,479 | 331,822 | |||||||||
Gain on sale of flight equipment | 47,047 | 13,736 | |||||||||
Other revenue | 921 | 3,585 | |||||||||
Total revenues | 386,447 | 349,143 | |||||||||
Operating expenses: | |||||||||||
Depreciation | 175,117 | 163,424 | |||||||||
Interest, net | 113,926 | 100,881 | |||||||||
Selling, general and administrative | 39,717 | 37,309 | |||||||||
Provision for credit losses | 6,125 | 689 | |||||||||
Impairment of flight equipment | 2,197 | 38,099 | |||||||||
Maintenance and other costs | 17,387 | 13,277 | |||||||||
Total operating expenses | 354,469 | 353,679 | |||||||||
Other income (expense): | |||||||||||
Loss on extinguishment of debt | — | (463) | |||||||||
Other | 4,709 | 2,072 | |||||||||
Total other income | 4,709 | 1,609 | |||||||||
Income (loss) from continuing operations before income taxes and earnings of unconsolidated equity method investment | 36,687 | (2,927) | |||||||||
Income tax provision (benefit) | 9,261 | (739) | |||||||||
Earnings of unconsolidated equity method investment, net of tax | 862 | 1,177 | |||||||||
Net income (loss) | $ | 28,288 | $ | (1,011) |
Three Months Ended September 30, | |||||||
2017 | 2016 | ||||||
(Dollars in thousands) | |||||||
Net income | $ | 57,431 | $ | 27,437 | |||
Derivative loss reclassified into earnings | 569 | 705 | |||||
Total comprehensive income | $ | 58,000 | $ | 28,142 |
Nine Months Ended September 30, | |||||||
2017 | 2016 | ||||||
(Dollars in thousands) | |||||||
Revenues: | |||||||
Lease rental revenue | $ | 551,371 | $ | 537,670 | |||
Finance and sales-type lease revenue | 16,363 | 13,026 | |||||
Amortization of lease premiums, discounts and incentives | (8,780 | ) | (5,419 | ) | |||
Maintenance revenue | 55,738 | 20,603 | |||||
Total lease revenue | 614,692 | 565,880 | |||||
Other revenue | 4,526 | 2,425 | |||||
Total revenues | 619,218 | 568,305 | |||||
Operating expenses: | |||||||
Depreciation | 227,446 | 227,918 | |||||
Interest, net | 185,376 | 188,490 | |||||
Selling, general and administrative | 55,491 | 46,883 | |||||
Impairment of flight equipment | 80,430 | 27,185 | |||||
Maintenance and other costs | 7,846 | 5,504 | |||||
Total operating expenses | 556,589 | 495,980 | |||||
Other income (expense): | |||||||
Gain on sale of flight equipment | 35,926 | 14,932 | |||||
Other | (3,069 | ) | (136 | ) | |||
Total other income | 32,857 | 14,796 | |||||
Income from continuing operations before income taxes and earnings of unconsolidated equity method investments | 95,486 | 87,121 | |||||
Income tax provision | 8,536 | 8,782 | |||||
Earnings of unconsolidated equity method investments, net of tax | 5,804 | 5,390 | |||||
Net income | $ | 92,754 | $ | 83,729 |
Six Months Ended August 31, | |||||||||||
2023 | 2022 | ||||||||||
(Dollars in thousands) | |||||||||||
Amortization of lease premiums | $ | (5,782) | $ | (5,278) | |||||||
Amortization of lease discounts | 467 | 255 | |||||||||
Amortization of lease incentives | (9,016) | (5,883) | |||||||||
Amortization of lease premiums, discounts and incentives | $ | (14,331) | $ | (10,906) |
Nine Months Ended September 30, | |||||||
2017 | 2016 | ||||||
(Dollars in thousands) | |||||||
Amortization of lease incentives | $ | (7,124 | ) | $ | (3,989 | ) | |
Amortization of lease premiums | (7,935 | ) | (8,571 | ) | |||
Amortization of lease discounts | 6,279 | 7,141 | |||||
Amortization of lease premiums, discounts and incentives | $ | (8,780 | ) | $ | (5,419 | ) |
Nine Months Ended September 30, | |||||||
2017 | 2016 | ||||||
(Dollars in thousands) | |||||||
Interest on borrowings and other liabilities(1) | $ | 170,225 | $ | 166,692 | |||
Amortization of interest rate derivatives related to deferred losses | 1,725 | 9,074 | |||||
Amortization of deferred financing fees and debt discount(2) | 15,860 | 13,567 | |||||
Interest expense | 187,810 | 189,333 | |||||
Less: Interest income | (2,089 | ) | (768 | ) | |||
Less: Capitalized interest | (345 | ) | (75 | ) | |||
Interest, net | $ | 185,376 | $ | 188,490 |
Nine Months Ended September 30, | |||||||
2017 | 2016 | ||||||
(Dollars in thousands) | |||||||
Net income | $ | 92,754 | $ | 83,729 | |||
Net change in fair value of derivatives, net of tax expense of $0 for both periods presented | — | (1 | ) | ||||
Derivative loss reclassified into earnings | 1,725 | 9,074 | |||||
Total comprehensive income | $ | 94,479 | $ | 92,802 |
Nine Months Ended September 30, | |||||||
2017 | 2016 | ||||||
(Dollars in thousands) | |||||||
Net cash flow provided by operating activities | $ | 393,458 | $ | 367,413 | |||
Net cash flow provided by (used in) investing activities | 173,821 | (395,533 | ) | ||||
Net cash flow (used in) provided by financing activities | (392,911 | ) | 484,326 |
Six Months Ended August 31, | |||||||||||
2023 | 2022 | ||||||||||
(Dollars in thousands) | |||||||||||
Net cash flow provided by operating activities | $ | 186,415 | $ | 215,616 | |||||||
Net cash flow used in investing activities | (250,512) | (195,405) | |||||||||
Net cash flow provided by financing activities | 558,664 | 56,470 |
Payments Due by Period as of September 30, 2017 | |||||||||||||||||||
Contractual Obligations | Total | 1 year or less | 2-3 years | 4-5 years | More than 5 years | ||||||||||||||
(Dollars in thousands) | |||||||||||||||||||
Principal payments: | |||||||||||||||||||
Senior Notes due 2018 - 2024 | $ | 3,200,000 | $ | — | $ | 1,200,000 | $ | 1,000,000 | $ | 1,000,000 | |||||||||
Unsecured Term Loan | 120,000 | — | 120,000 | — | — | ||||||||||||||
Revolving Credit Facilities | — | — | — | — | — | ||||||||||||||
ECA Financings | 236,879 | 38,071 | 80,321 | 80,475 | 38,012 | ||||||||||||||
Bank Financings | 652,138 | 76,123 | 134,734 | 125,244 | 316,037 | ||||||||||||||
Total principal payments | 4,209,017 | 114,194 | 1,535,055 | 1,205,719 | 1,354,049 | ||||||||||||||
Interest payments on debt obligations(1) | 827,298 | 211,809 | 356,308 | 178,026 | 81,155 | ||||||||||||||
Office leases(2) | 21,335 | 1,259 | 4,971 | 4,901 | 10,204 | ||||||||||||||
Purchase obligations(3) | 1,803,810 | 896,818 | 765,349 | 141,643 | — | ||||||||||||||
Total | $ | 6,861,460 | $ | 1,224,080 | $ | 2,661,683 | $ | 1,530,289 | $ | 1,445,408 |
Three Months Ended August 31, | Six Months Ended August 31, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Net income (loss) | $ | 5,518 | $ | (8,693) | $ | 28,288 | $ | (1,011) | |||||||||||||||
Depreciation | 86,328 | 82,106 | 175,117 | 163,424 | |||||||||||||||||||
Amortization of lease premiums, discounts and incentives | 7,124 | 5,518 | 14,331 | 10,906 | |||||||||||||||||||
Interest, net | 57,035 | 50,587 | 113,926 | 100,881 | |||||||||||||||||||
Income tax provision (benefit) | (5,099) | (4,068) | 9,261 | (739) | |||||||||||||||||||
EBITDA | 150,906 | 125,450 | 340,923 | 273,461 | |||||||||||||||||||
Adjustments: | |||||||||||||||||||||||
Impairment of flight equipment | 1,100 | 33,671 | 2,197 | 38,099 | |||||||||||||||||||
Loss on extinguishment of debt | — | — | — | 463 | |||||||||||||||||||
Adjusted EBITDA | $ | 152,006 | $ | 159,121 | $ | 343,120 | $ | 312,023 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Net income | $ | 57,431 | $ | 27,437 | $ | 92,754 | $ | 83,729 | |||||||
Depreciation | 70,018 | 76,201 | 227,446 | 227,918 | |||||||||||
Amortization of lease premiums, discounts and incentives | 2,388 | 521 | 8,780 | 5,419 | |||||||||||
Interest, net | 60,636 | 61,797 | 185,376 | 188,490 | |||||||||||
Income tax provision | 6,195 | 2,458 | 8,536 | 8,782 | |||||||||||
EBITDA | 196,668 | 168,414 | 522,892 | 514,338 | |||||||||||
Adjustments: | |||||||||||||||
Impairment of flight equipment | — | 10,462 | 80,430 | 27,185 | |||||||||||
Non-cash share-based payment expense | 2,506 | 2,059 | 10,636 | 5,796 | |||||||||||
Loss on mark-to-market of interest rate derivative contracts | 361 | 210 | 3,073 | 141 | |||||||||||
Adjusted EBITDA | $ | 199,535 | $ | 181,145 | $ | 617,031 | $ | 547,460 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Net income | $ | 57,431 | $ | 27,437 | $ | 92,754 | $ | 83,729 | |||||||
Loan termination fee(1) | 1,070 | — | 2,058 | 1,509 | |||||||||||
Loss on mark-to-market of interest rate derivative contracts(2) | 361 | 210 | 3,073 | 141 | |||||||||||
Write-off of deferred financing fees(1) | 3,019 | — | 4,005 | 1,972 | |||||||||||
Non-cash share-based payment expense(3) | 2,506 | 2,059 | 10,636 | 5,796 | |||||||||||
Hedge loss amortization charges (1) | — | — | — | 4,855 | |||||||||||
Adjusted net income | $ | 64,387 | $ | 29,706 | $ | 112,526 | $ | 98,002 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||
Weighted-average shares: | 2017 | 2016 | 2017 | 2016 | |||||||
Common shares outstanding | 78,237,199 | 77,989,933 | 78,197,091 | 78,230,011 | |||||||
Restricted common shares | 569,617 | 680,249 | 569,453 | 646,299 | |||||||
Total weighted-average shares | 78,806,816 | 78,670,182 | 78,766,544 | 78,876,310 |
Three Months Ended September 30, | �� | Nine Months Ended September 30, | |||||||||
Percentage of weighted-average shares: | 2017 | 2016 | 2017 | 2016 | |||||||
Common shares outstanding | 99.28 | % | 99.14 | % | 99.28 | % | 99.18 | % | |||
Restricted common shares(1) | 0.72 | % | 0.86 | % | 0.72 | % | 0.82 | % | |||
Total percentage of weighted-average shares | 100.00 | % | 100.00 | % | 100.00 | % | 100.00 | % |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||
Weighted-average common shares outstanding – Basic | 78,237,199 | 77,989,933 | 78,197,091 | 78,230,011 | |||||||
Effect of dilutive shares(2) | 137,810 | 32,235 | 169,053 | 35,804 | |||||||
Weighted average common shares outstanding – Diluted | 78,375,009 | 78,022,168 | 78,366,144 | 78,265,815 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
(Dollars in thousands, except per share amounts) | |||||||||||||||
Adjusted net income allocation: | |||||||||||||||
Adjusted net income | $ | 64,387 | $ | 29,706 | $ | 112,526 | $ | 98,002 | |||||||
Less: Distributed and undistributed earnings allocated to restricted common shares(2) | (465 | ) | (257 | ) | (814 | ) | (803 | ) | |||||||
Adjusted net income allocable to common shares – Basic and Diluted | $ | 63,922 | $ | 29,449 | $ | 111,712 | $ | 97,199 | |||||||
Adjusted net income per common share – Basic and Diluted | $ | 0.82 | $ | 0.38 | $ | 1.43 | $ | 1.24 |
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS |
Period | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs(1) | Maximum Number (or Approximate Dollar Value) of Shares that May Yet Be Purchased Under the Plans or Programs (1) | |||||||||
(Dollars in thousands, except per share amounts) | |||||||||||||
July 1 through July 31 | — | $ | — | — | $ | 95,888 | |||||||
August 1 through August 31 | 104,594 | 0.01 | — | 95,888 | |||||||||
September 1 through September 30 | — | — | — | 95,888 | |||||||||
Total | 104,594 | $ | 0.01 | — | $ | 95,888 |
Description of Exhibit | |||||||||||
3.1 | |||||||||||
3.2 | |||||||||||
3.3 | |||||||||||
4.1 | |||||||||||
4.2 | |||||||||||
4.6 | |||||||||||
4.7 | |||||||||||
4.8 | |||||||||||
4.9 | |||||||||||
10.1 | |||||||||||
31.2 | |||||||||||
32.1 | |||||||||||
32.2 | |||||||||||
The following materials from the Company’s Quarterly Report on Form 10-Q for the quarter ended | |||||||||||
104 | Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document. |
AIRCASTLE LIMITED | ||||||||
(Registrant) | ||||||||
By: | /s/ | |||||||
Chief Accounting Officer and Authorized Officer |