Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2017 | Aug. 11, 2017 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | AEROCENTURY CORP | |
Entity Central Index Key | 1,036,848 | |
Current Fiscal Year End Date | --12-31 | |
Entity Well-known Seasoned Issuer | No | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 1,416,699 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q2 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2017 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 |
Assets: | ||
Cash and cash equivalents | $ 4,161,800 | $ 2,194,400 |
Accounts receivable, including deferred rent of $64,700 and $604,800 at June 30, 2017 and December 31, 2016, respectively | 6,155,100 | 4,046,100 |
Finance leases receivable | 25,280,400 | 17,468,300 |
Aircraft and aircraft engines held for lease, net of accumulated depreciation of $37,263,800 and $32,639,600 at June 30, 2017 and December 31, 2016, respectively | 203,142,000 | 192,799,800 |
Assets held for sale | 1,925,300 | 1,998,100 |
Prepaid expenses and other | 925,500 | 229,400 |
Total assets | 241,590,100 | 218,736,100 |
Liabilities: | ||
Accounts payable and accrued expenses | 1,702,100 | 1,218,100 |
Notes payable and accrued interest, net of unamortized debt issuance costs of $1,634,200 and $1,999,900 at June 30, 2017 and December 31, 2016, respectively | 147,433,700 | 125,837,900 |
Maintenance reserves | 29,089,400 | 29,424,100 |
Accrued maintenance costs | 467,900 | 965,000 |
Security deposits | 4,361,200 | 3,933,200 |
Unearned revenues | 4,033,600 | 1,903,900 |
Deferred income taxes | 13,244,500 | 12,830,500 |
Income taxes payable | 293,000 | 123,200 |
Total liabilities | 200,625,400 | 176,235,900 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Preferred stock, $0.001 par value, 2,000,000 shares authorized, no shares issued and outstanding | 0 | 0 |
Common stock, $0.001 par value, 10,000,000 shares authorized, 1,629,999 shares issued, 1,416,699 and 1,566,699 shares outstanding at June 30, 2017 and December 31, 2016, respectively | 1,600 | 1,600 |
Paid-in capital | 14,780,100 | 14,780,100 |
Retained earnings | 29,219,800 | 28,222,600 |
Shareholders equity before treasury stock | 44,001,500 | 43,004,300 |
Treasury stock at cost, 213,300 and 63,300 shares at June 30, 2017 and December 31, 2016, respectively | (3,036,800) | (504,100) |
Total stockholders' equity | 40,964,700 | 42,500,200 |
Total liabilities and stockholders' equity | $ 241,590,100 | $ 218,736,100 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 |
Assets: | ||
Accounts receivable, deferred rent | $ 64,700 | $ 604,800 |
Aircraft and aircraft engines held for lease, accumulated depreciation | 37,263,800 | 32,639,600 |
Liabilities: | ||
Unamortized debt issuance costs | $ 1,634,200 | $ 1,999,900 |
Stockholders' equity: | ||
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, authorized (in shares) | 2,000,000 | 2,000,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Preferred stock, outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, authorized (in shares) | 10,000,000 | 10,000,000 |
Common stock, issued (in shares) | 1,629,999 | 1,629,999 |
Common stock, outstanding (in shares) | 1,416,699 | 1,566,699 |
Treasury stock (in shares) | 213,300 | 63,300 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Revenues and other income: | ||||
Operating lease revenue | $ 7,110,100 | $ 4,935,200 | $ 14,427,000 | $ 10,979,500 |
Finance lease revenue | 432,300 | 187,000 | 757,700 | 372,100 |
Maintenance reserves revenue2 | 686,000 | 0 | 686,000 | 0 |
Net gain on sales-type finance leases | 0 | 42,000 | 297,400 | 47,400 |
Net (loss)/gain on disposal of assets | (147,700) | 2,146,500 | (133,900) | 2,146,500 |
Other income | 400 | 300 | 600 | 1,700 |
Total Income | 8,081,100 | 7,311,000 | 16,034,800 | 13,547,200 |
Expenses: | ||||
Depreciation | 2,943,000 | 1,871,100 | 5,879,100 | 3,950,600 |
Interest | 1,742,800 | 1,138,800 | 3,353,000 | 2,427,900 |
Management fees | 1,498,300 | 1,172,500 | 3,005,100 | 2,436,500 |
Professional fees, general and administrative and other | 418,000 | 557,800 | 924,100 | 982,400 |
Maintenance | 405,300 | 1,501,100 | 661,400 | 1,821,000 |
Provision for impairment in value of aircraft | 454,300 | 246,200 | 454,300 | 321,200 |
Insurance | 57,700 | 73,400 | 130,900 | 150,000 |
Other taxes | 22,500 | 22,500 | 45,200 | 45,300 |
Bad debt expense | 0 | 262,900 | 0 | 262,900 |
Total expenses | 7,541,900 | 6,846,300 | 14,453,100 | 12,397,800 |
Income before income tax provision | 539,200 | 464,700 | 1,581,700 | 1,149,400 |
Income tax provision | 183,500 | 166,100 | 584,500 | 417,100 |
Net income | $ 355,700 | $ 298,600 | $ 997,200 | $ 732,300 |
Earnings per share: | ||||
Basic (in dollars per share) | $ 0.25 | $ 0.19 | $ 0.67 | $ 0.47 |
Diluted (in dollars per share) | $ 0.25 | $ 0.19 | $ 0.67 | $ 0.47 |
Weighted average shares used in earnings per share computations: | ||||
Basic (in shares) | 1,416,699 | 1,566,699 | 1,482,997 | 1,566,699 |
Diluted (in shares) | 1,416,699 | 1,566,699 | 1,482,997 | 1,566,699 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Condensed Consolidated Statements of Cash Flows (Unaudited) [Abstract] | ||
Net cash provided by operating activities | $ 8,706,500 | $ 8,125,800 |
Investing activities: | ||
Proceeds from sale of aircraft and aircraft engines held for lease, net of re-sale fees | 1,397,300 | 2,062,600 |
Proceeds from sale of assets held for sale, net of re-sale fees | 112,600 | 3,059,900 |
Proceeds from insurance | 0 | 18,886,700 |
Investment in direct financing leases | (7,614,200) | 0 |
Investment in aircraft parts and acquisition costs | (21,735,900) | (971,100) |
Net cash (used in)/provided by investing activities | (27,840,200) | 23,038,100 |
Financing activities: | ||
Issuance of notes payable - Credit Facility | 26,000,000 | 0 |
Repayment of notes payable - Credit Facility | (2,800,000) | (31,600,000) |
Repayment of notes payable - special purpose financing | (2,033,900) | 0 |
Debt issuance costs | (65,000) | (65,000) |
Net cash provided by/(used in) financing activities | 21,101,100 | (31,665,000) |
Net increase/(decrease) in cash and cash equivalents | 1,967,400 | (501,100) |
Cash and cash equivalents, beginning of period | 2,194,400 | 2,721,000 |
Cash and cash equivalents, end of period | $ 4,161,800 | $ 2,219,900 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows (Unaudited) (Parenthetical) - USD ($) | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Condensed Consolidated Statements of Cash Flows (Unaudited) [Abstract] | ||
Interest paid | $ 2,890,700 | $ 2,058,200 |
Income taxes paid | $ 800 | $ 800 |
Organization and Summary of Sig
Organization and Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2017 | |
Organization and Summary of Significant Accounting Policies [Abstract] | |
Organization and Summary of Significant Accounting Policies | 1. (a) AeroCentury Corp., a Delaware corporation incorporated in 1997, typically acquires used regional aircraft and engines for lease to foreign and domestic regional carriers. In August 2016, AeroCentury Corp. formed two wholly-owned subsidiaries, ACY 19002 Limited ("ACY 19002") and ACY 19003 Limited ("ACY 19003") for the purpose of acquiring aircraft using a combination of cash and financing ("SPE Financing") separate from the parent's credit facility. Financial information for AeroCentury Corp., ACY 19002 and ACY 19003 (collectively, the "Company") is presented on a consolidated basis in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information, the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. All intercompany balances and transactions have been eliminated in consolidation. For further information, refer to the financial statements and footnotes thereto included in the Company's annual report on Form 10-K for the year ended December 31, 2016. (b) The Company's condensed consolidated financial statements have been prepared in accordance with GAAP. The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable for making judgments that are not readily apparent from other sources. The most significant estimates with regard to these condensed consolidated financial statements are the residual values and useful lives of the Company's long lived assets, the amount and timing of future cash flows associated with each asset that are used to evaluate whether assets are impaired, accrued maintenance costs, accounting for income taxes, and the amounts recorded as allowances for doubtful accounts. (c) Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs, to the extent possible. The fair value hierarchy under GAAP is based on three levels of inputs. Level 1 - Quoted prices in active markets for identical assets or liabilities. Level 2 - Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Assets and Liabilities Measured and Recorded at Fair Value on a Recurring Basis The carrying amount of the Company's money market funds included in cash and cash equivalents was $2,848,700 and $1,348,100 at June 30, 2017 and December 31, 2016, respectively. The fair value of the Company's money market funds is categorized as Level 1 under the GAAP fair value hierarchy. As of June 30, 2017 and December 31, 2016, there were no liabilities that were required to be measured and recorded at fair value on a recurring basis. Assets Measured and Recorded at Fair Value on a Nonrecurring Basis The Company determines fair value of long-lived assets held and used, such as aircraft and aircraft engines held for lease and assets held for sale, by reference to independent appraisals, quoted market prices (e.g., offers to purchase) and other factors. An impairment charge is recorded when the Company believes that the carrying value of an asset will not be recovered through future net cash flows and that the asset's carrying value exceeds its fair value. Assets held for lease The Company recorded an impairment charge of $454,300 on one of its assets held for lease in the quarter ended June 30, 2017. Assets held for sale The Company recorded no impairment charges on its aircraft held for sale during the three months or six months ended June 30 , 2017. June 30 Fair Value of Other Financial Instruments The Company's financial instruments, other than cash and cash equivalents, consist principally of finance leases receivable, amounts borrowed under its credit facility (the "Credit Facility") and notes payable under special purpose financing. The fair value of accounts receivable, finance leases receivable, accounts payable and the Company's maintenance reserves and accrued maintenance costs approximates the carrying value of these financial instruments. Borrowings under the Company's Credit Facility bear floating rates of interest that reset periodically to a market benchmark rate plus a credit margin. The Company believes that the effective interest rate under the Credit Facility approximates current market rates for such indebtedness at the balance sheet date, and therefore that the outstanding principal and accrued interest of $133,453,200 and $110,183,600 at June 30 The amounts payable under the Company's SPE Financing are payable through the fourth quarter of 2020 and bear a fixed rate of interest, as described in Note 4(b) to the condensed consolidated financial statements. The Company believes that the effective interest rate under the SPE Financing approximates current market rates for such indebtedness at the balance sheet date, and therefore that the outstanding principal and accrued interest of $15,614,700 and $17,654,200 approximates the fair value of such notes at June 30 (d) As of June 30, 2017, the Company had six aircraft subject to sales-type finance leases and three aircraft subject to direct financing leases. All such leases contain lessee bargain purchase options at prices substantially below the assets' estimated residual values at the exercise date for the options. Consequently, the Company has classified each of these leases as finance leases for financial accounting purposes. For such finance leases, the Company reports the discounted present value of (i) future minimum lease payments (including the bargain purchase option) and (ii) any residual value not subject to a bargain purchase option as a finance lease receivable on its balance sheet and accrues interest on the balance of the finance lease receivable based on the interest rate inherent in the applicable lease over the term of the lease. For sales-type finance leases, the Company recognizes as a gain or loss the amount equal to (i) the net investment in sales-type finance leases plus any initial direct costs and lease incentives less (ii) the net book value of the aircraft. The Company recognized interest earned on finance leases in the amount of $432,300 and $187,000 in the quarters ended June 30, 2017 and 2016, respectively and $757,700 and $372,100 in the six month periods ended 30, 2017 and 2016, respectively. (e) In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-09 that created the new Topic 606 ("Topic 606") in the Accounting Standards Codification ("ASC"). Topic 606 also included numerous conforming additions and amendments to other Topics within the ASC. Topic 606 established new rules that affect the amount and timing of revenue recognition for contracts with customers, but does not affect lease accounting and reporting. As such, adoption of these provisions will not affect the Company's lease revenues but may affect the reporting of other of the Company's revenues. On August 12, 2015, the FASB deferred the effective date of the provisions included in Topic 606 to years commencing after December 15, 2017. Topic 606 can be adopted early for years commencing after December 15, 2016, and may be reflected using either a full retrospective method or a simplified method that does not recast prior periods but does disclose the effect of the adoption on the current period consolidated financial statements. The Company has not yet determined either the potential impact on its consolidated financial statements or the method it will elect to use in connection with the adoption of the changes included in Topic 606. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) The new standard requires a lessor to classify leases as sales-type, finance or operating. A lease will be treated as a sale if it transfers all of the risks and rewards, as well as control of the underlying asset, to the lessee. If risks and rewards are conveyed without the transfer of control, the lease is treated as a financing. If the lessor does not convey risks and rewards or control, an operating lease results. A modified retrospective transition approach is required for lessors for sales-type, finance, and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. The Company is reviewing those agreements under which it is the lessor and is evaluating the impact of the adoption of ASU 2016-02 on its consolidated financial statements and related disclosures. The Company does not expect to adopt ASU 2016-02 early, and does expect to elect practical expedients in connection with its adoption, including not re-evaluating lease classification or capitalized initial direct costs on existing leases. The Company is not an obligor under any agreements that would be considered leases under ASU 2016-02, and so would be unaffected with respect to its adoption with respect to lessee accounting. In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805) In January 2017, the FASB issued ASU 2017-04, Intangibles -- Goodwill and Other (Topic 350) |
Finance Leases Receivable
Finance Leases Receivable | 6 Months Ended |
Jun. 30, 2017 | |
Finance Leases Receivable [Abstract] | |
Finance Leases Receivable | 2. At June 30, 2017 and December 31, 2016, the net investment included in sales-type finance leases and direct financing leases receivable were as follows: June 30 2017 December 31, 2016 Gross minimum lease payments receivable $ 29,607,600 $ 20,829,200 Less unearned interest (4,327,200 ) (3,360,900 ) Finance leases receivable $ 25,280,400 $ 17,468,300 As of June 30 Years ending Remainder of 2017 $ 2,983,800 2018 5,811,600 2019 7,087,600 2020 5,036,600 2021 5,381,000 Thereafter 3,307,000 $ 29,607,600 |
Aircraft and Aircraft Engines H
Aircraft and Aircraft Engines Held for Lease or Sale | 6 Months Ended |
Jun. 30, 2017 | |
Aircraft and Aircraft Engines Held for Lease or Sale [Abstract] | |
Aircraft and Aircraft Engines Held for Lease or Sale | 3. (a) At June 30 June 30 December 31 Type Number owned % of net book value Number owned % of net book value Turboprop aircraft 11 21 % 12 23 % Regional jet aircraft 14 77 % 12 73 % Engines 1 2 % 4 4 % The Company used $21,172,700 for the acquisition of two Embraer 175 aircraft on lease to a customer in the United States in the second quarter of 2017. The Company also paid a $500,000 deposit for a third Embraer 175 aircraft which was acquired in the third quarter of 2017 and is on lease to the same customer. During the second quarter of 2016, the Company used cash of $963,600 primarily for deposits associated with aircraft acquired during the third quarter of 2016. During the second quarter of 2017, the Company sold two spare turboprop engines and recorded a loss of $173,700. Six of the Company's assets held for lease, comprised of five turboprop aircraft and one engine, were off lease at June 30, 2017, representing 7% of the net book value of the Company's aircraft and engines held for lease. As discussed in Note 9, a turboprop aircraft was returned to the Company in August 2017. As of June 30 Years ending Remainder of 2017 $ 13,271,400 2018 24,683,000 2019 24,255,200 2020 21,803,000 2021 14,701,600 Thereafter 39,294,700 $ 138,008,900 (b) Assets Held for Sale Assets held for sale at June 30 During the three months ended June 30 |
Notes Payable and Accrued Inter
Notes Payable and Accrued Interest | 6 Months Ended |
Jun. 30, 2017 | |
Notes Payable and Accrued Interest [Abstract] | |
Notes Payable and Accrued Interest | 4. At June 30, 2017 and December 31, 2016, the Company's notes payable and accrued interest consisted of the following: June 30 2017 December 31 2016 Credit Facility: Principal $ 133,300,000 $ 110,100,000 Unamortized debt issuance costs (1,634,200 ) (1,999,900 ) Accrued interest 153,200 83,600 SPE Financing: Principal 15,589,700 17,623,600 Accrued interest 25,000 30,600 $ 147,433,700 $ 125,837,900 (a) The Company's Credit Facility is provided by a syndicate of banks and is secured by all of the assets of the Company, including its aircraft and engine portfolio. As discussed in Note 9, in July 2017, the Credit Facility was amended to increase the total amount available from $150 million to $170 million, as well as to revise certain financial covenants. The Credit Facility, which expires on May 31, 2019, can be expanded to a maximum of $180 million. The Company was in compliance with all covenants under the Credit Facility at June 30 The unused amount of the Credit Facility (under the prior $150 million maximum amount) was $16,700,000 and $39,900,000 as of June 30 , 2017 and December 31, 2016, The weighted average interest rate on the Credit Facility was 4.68% and 4.15% at June 30, 2017 and December 31, 2016, respectively. (b) In August 2016, the Company acquired two regional jet aircraft using cash and financing separate from its Credit Facility. The separate SPE Financing resulted in note obligations of $9,805,600 and $9,804,300, which are being paid from a portion of the rent payments on the related aircraft leases through October 3, 2020 and November 7, 2020, respectively, and which bear interest at the rate of 4.455%. The borrower under each note obligation is the special purpose entity that owns each aircraft. The notes are collateralized by the aircraft and are recourse only to the special purpose entity borrower and its aircraft asset, subject to standard exceptions for this type of financing. Payments due under the notes consist of quarterly principal and interest. The combined balance of the notes payable and accrued interest on these notes at June 30, 2017 and December 31, 2016 was $15,614,700 and $17,654,200, respectively. |
Acquisition Costs
Acquisition Costs | 6 Months Ended |
Jun. 30, 2017 | |
Acquisition Costs [Abstract] | |
Acquisition Costs | 5. During the quarter and six months ended June 30 condensed consolidated statements of operations. |
Contingencies
Contingencies | 6 Months Ended |
Jun. 30, 2017 | |
Contingencies [Abstract] | |
Contingencies | 6. In the ordinary conduct of the Company's business, the Company is subject to lawsuits, arbitrations and administrative proceedings from time to time. The Company believes that the outcome of any existing or known threatened proceedings, even if determined adversely, should not have a material adverse effect on the Company's business, financial condition, liquidity or results of operations. |
Computation of Earnings Per Sha
Computation of Earnings Per Share | 6 Months Ended |
Jun. 30, 2017 | |
Computation of Earnings Per Share [Abstract] | |
Computation of Earnings Per Share | 7. Basic and diluted earnings per share are calculated as follows: For the Six Months Ended June 30, For the Three Months Ended June 30, 2017 2016 2017 2016 Net income $ 997,200 $ 732,300 $ 355,700 $ 298,600 Weighted average shares outstanding for the period 1,482,997 1,566,699 1,416,699 1,566,699 Basic earnings per share $ 0.67 $ 0.47 $ 0.25 $ 0.19 Diluted earnings per share $ 0.67 $ 0.47 $ 0.25 $ 0.19 Basic earnings per common share is computed using net income and the weighted average number of common shares outstanding during the period. Diluted earnings per common share are computed using net income and the weighted average number of common shares outstanding, assuming dilution. Weighted average common shares |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 8 The Company's portfolio of leased aircraft assets is managed and administered under the terms of a management agreement with JetFleet Management Corp. ("JMC"), which is an integrated aircraft management, marketing and financing business and a subsidiary of JetFleet Holding Corp. ("JHC"). Certain officers of the Company are also officers of JHC and JMC and hold significant ownership positions in both JHC and the Company. Under the management agreement, JMC receives a monthly management fee based on the net asset value of the assets under management. JMC also receives an acquisition fee for locating assets for the Company. Acquisition fees are included in the cost basis of the asset purchased. JMC may receive a remarketing fee in connection with the re-lease or sale of the Company's assets. Remarketing fees are amortized over the applicable lease term or included in the gain or loss on sale. Fees incurred during the three months and six months ended June 30, 2017 and 2016 were as follows: For the Six Months Ended June 30, For the Three Months Ended June 30, 2017 2016 2017 2016 Management fees $ 3,005,100 $ 2,436,500 $ 1,498,300 $ 1,172,500 Acquisition fees 641,900 - 421,400 - Remarketing fees 51,100 58,800 - 58,800 In August 2009, the Company entered into an agreement (the "Assignment Agreement") with Lee G. Beaumont in which Mr. Beaumont assigned to the Company his rights to purchase certain aircraft engines from an unrelated third party seller. In January 2012, Mr. Beaumont became a "related person" with respect to the Company due to his open market acquisitions of shares representing over 5% of the Company's common stock. In March 2017, the Company exchanged one of its engines for 150,000 shares of common stock of the Company held by Mr. Beaumont. The Company recorded no gain or loss related to the exchange. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | 9. In July 2017, the Credit Facility was amended to increase the total amount available to $170 million. Covenants regarding a debt to equity ratio and customer concentration were also modified. In July 2017, the Company acquired an Embraer 175 aircraft. The aircraft was purchased from the same seller as two aircraft purchased during the second quarter and is on lease to the same customer in the United States. In August 2017, one of the Company's lessees returned a turboprop aircraft at lease expiration. The difference between the maintenance reserves and security deposit held at the time of the return and the amount of rent receivable was recorded as gain of approximately $332,000. The Company has signed consignment agreements with two vendors to sell the airframe and one engine in parts. The Company intends to lease the second engine. |
Organization and Summary of S16
Organization and Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2017 | |
Organization and Summary of Significant Accounting Policies [Abstract] | |
The Company and Basis of Presentation | (a) AeroCentury Corp., a Delaware corporation incorporated in 1997, typically acquires used regional aircraft and engines for lease to foreign and domestic regional carriers. In August 2016, AeroCentury Corp. formed two wholly-owned subsidiaries, ACY 19002 Limited ("ACY 19002") and ACY 19003 Limited ("ACY 19003") for the purpose of acquiring aircraft using a combination of cash and financing ("SPE Financing") separate from the parent's credit facility. Financial information for AeroCentury Corp., ACY 19002 and ACY 19003 (collectively, the "Company") is presented on a consolidated basis in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information, the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. All intercompany balances and transactions have been eliminated in consolidation. For further information, refer to the financial statements and footnotes thereto included in the Company's annual report on Form 10-K for the year ended December 31, 2016. |
Use of Estimates | (b) The Company's condensed consolidated financial statements have been prepared in accordance with GAAP. The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable for making judgments that are not readily apparent from other sources. The most significant estimates with regard to these condensed consolidated financial statements are the residual values and useful lives of the Company's long lived assets, the amount and timing of future cash flows associated with each asset that are used to evaluate whether assets are impaired, accrued maintenance costs, accounting for income taxes, and the amounts recorded as allowances for doubtful accounts. |
Fair Value Measurements | (c) Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs, to the extent possible. The fair value hierarchy under GAAP is based on three levels of inputs. Level 1 - Quoted prices in active markets for identical assets or liabilities. Level 2 - Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Assets and Liabilities Measured and Recorded at Fair Value on a Recurring Basis The carrying amount of the Company's money market funds included in cash and cash equivalents was $2,848,700 and $1,348,100 at June 30, 2017 and December 31, 2016, respectively. The fair value of the Company's money market funds is categorized as Level 1 under the GAAP fair value hierarchy. As of June 30, 2017 and December 31, 2016, there were no liabilities that were required to be measured and recorded at fair value on a recurring basis. Assets Measured and Recorded at Fair Value on a Nonrecurring Basis The Company determines fair value of long-lived assets held and used, such as aircraft and aircraft engines held for lease and assets held for sale, by reference to independent appraisals, quoted market prices (e.g., offers to purchase) and other factors. An impairment charge is recorded when the Company believes that the carrying value of an asset will not be recovered through future net cash flows and that the asset's carrying value exceeds its fair value. Assets held for lease The Company recorded an impairment charge of $454,300 on one of its assets held for lease in the quarter ended June 30, 2017. Assets held for sale The Company recorded no impairment charges on its aircraft held for sale during the three months or six months ended June 30 , 2017. June 30 Fair Value of Other Financial Instruments The Company's financial instruments, other than cash and cash equivalents, consist principally of finance leases receivable, amounts borrowed under its credit facility (the "Credit Facility") and notes payable under special purpose financing. The fair value of accounts receivable, finance leases receivable, accounts payable and the Company's maintenance reserves and accrued maintenance costs approximates the carrying value of these financial instruments. Borrowings under the Company's Credit Facility bear floating rates of interest that reset periodically to a market benchmark rate plus a credit margin. The Company believes that the effective interest rate under the Credit Facility approximates current market rates for such indebtedness at the balance sheet date, and therefore that the outstanding principal and accrued interest of $133,453,200 and $110,183,600 at June 30 The amounts payable under the Company's SPE Financing are payable through the fourth quarter of 2020 and bear a fixed rate of interest, as described in Note 4(b) to the condensed consolidated financial statements. The Company believes that the effective interest rate under the SPE Financing approximates current market rates for such indebtedness at the balance sheet date, and therefore that the outstanding principal and accrued interest of $15,614,700 and $17,654,200 approximates the fair value of such notes at June 30 |
Finance Leases | (d) As of June 30, 2017, the Company had six aircraft subject to sales-type finance leases and three aircraft subject to direct financing leases. All such leases contain lessee bargain purchase options at prices substantially below the assets' estimated residual values at the exercise date for the options. Consequently, the Company has classified each of these leases as finance leases for financial accounting purposes. For such finance leases, the Company reports the discounted present value of (i) future minimum lease payments (including the bargain purchase option) and (ii) any residual value not subject to a bargain purchase option as a finance lease receivable on its balance sheet and accrues interest on the balance of the finance lease receivable based on the interest rate inherent in the applicable lease over the term of the lease. For sales-type finance leases, the Company recognizes as a gain or loss the amount equal to (i) the net investment in sales-type finance leases plus any initial direct costs and lease incentives less (ii) the net book value of the aircraft. The Company recognized interest earned on finance leases in the amount of $432,300 and $187,000 in the quarters ended June 30, 2017 and 2016, respectively and $757,700 and $372,100 in the six month periods ended 30, 2017 and 2016, respectively. |
Recent Accounting Pronouncements | (e) In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-09 that created the new Topic 606 ("Topic 606") in the Accounting Standards Codification ("ASC"). Topic 606 also included numerous conforming additions and amendments to other Topics within the ASC. Topic 606 established new rules that affect the amount and timing of revenue recognition for contracts with customers, but does not affect lease accounting and reporting. As such, adoption of these provisions will not affect the Company's lease revenues but may affect the reporting of other of the Company's revenues. On August 12, 2015, the FASB deferred the effective date of the provisions included in Topic 606 to years commencing after December 15, 2017. Topic 606 can be adopted early for years commencing after December 15, 2016, and may be reflected using either a full retrospective method or a simplified method that does not recast prior periods but does disclose the effect of the adoption on the current period consolidated financial statements. The Company has not yet determined either the potential impact on its consolidated financial statements or the method it will elect to use in connection with the adoption of the changes included in Topic 606. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) The new standard requires a lessor to classify leases as sales-type, finance or operating. A lease will be treated as a sale if it transfers all of the risks and rewards, as well as control of the underlying asset, to the lessee. If risks and rewards are conveyed without the transfer of control, the lease is treated as a financing. If the lessor does not convey risks and rewards or control, an operating lease results. A modified retrospective transition approach is required for lessors for sales-type, finance, and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. The Company is reviewing those agreements under which it is the lessor and is evaluating the impact of the adoption of ASU 2016-02 on its consolidated financial statements and related disclosures. The Company does not expect to adopt ASU 2016-02 early, and does expect to elect practical expedients in connection with its adoption, including not re-evaluating lease classification or capitalized initial direct costs on existing leases. The Company is not an obligor under any agreements that would be considered leases under ASU 2016-02, and so would be unaffected with respect to its adoption with respect to lessee accounting. In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805) In January 2017, the FASB issued ASU 2017-04, Intangibles -- Goodwill and Other (Topic 350) |
Finance Leases Receivable (Tabl
Finance Leases Receivable (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Finance Leases Receivable [Abstract] | |
Net investment included in sales-type finance leases and direct financing leases receivable | At June 30, 2017 and December 31, 2016, the net investment included in sales-type finance leases and direct financing leases receivable were as follows: June 30 2017 December 31, 2016 Gross minimum lease payments receivable $ 29,607,600 $ 20,829,200 Less unearned interest (4,327,200 ) (3,360,900 ) Finance leases receivable $ 25,280,400 $ 17,468,300 |
Minimum future lease revenue payments receivable under finance leases | As of June 30 Years ending Remainder of 2017 $ 2,983,800 2018 5,811,600 2019 7,087,600 2020 5,036,600 2021 5,381,000 Thereafter 3,307,000 $ 29,607,600 |
Aircraft and Aircraft Engines18
Aircraft and Aircraft Engines Held for Lease or Sale (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Aircraft and Aircraft Engines Held for Lease or Sale [Abstract] | |
Aircraft and aircraft engines held for lease | At June 30 June 30 December 31 Type Number owned % of net book value Number owned % of net book value Turboprop aircraft 11 21 % 12 23 % Regional jet aircraft 14 77 % 12 73 % Engines 1 2 % 4 4 % |
Minimum future lease revenue payments receivable | As of June 30 Years ending Remainder of 2017 $ 13,271,400 2018 24,683,000 2019 24,255,200 2020 21,803,000 2021 14,701,600 Thereafter 39,294,700 $ 138,008,900 |
Notes Payable and Accrued Int19
Notes Payable and Accrued Interest (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Notes Payable and Accrued Interest [Abstract] | |
Notes payable and accrued interest | At June 30, 2017 and December 31, 2016, the Company's notes payable and accrued interest consisted of the following: June 30 2017 December 31 2016 Credit Facility: Principal $ 133,300,000 $ 110,100,000 Unamortized debt issuance costs (1,634,200 ) (1,999,900 ) Accrued interest 153,200 83,600 SPE Financing: Principal 15,589,700 17,623,600 Accrued interest 25,000 30,600 $ 147,433,700 $ 125,837,900 |
Computation of Earnings Per S20
Computation of Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Computation of Earnings Per Share [Abstract] | |
Basic and diluted earnings per share | Basic and diluted earnings per share are calculated as follows: For the Six Months Ended June 30, For the Three Months Ended June 30, 2017 2016 2017 2016 Net income $ 997,200 $ 732,300 $ 355,700 $ 298,600 Weighted average shares outstanding for the period 1,482,997 1,566,699 1,416,699 1,566,699 Basic earnings per share $ 0.67 $ 0.47 $ 0.25 $ 0.19 Diluted earnings per share $ 0.67 $ 0.47 $ 0.25 $ 0.19 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Related Party Transactions [Abstract] | |
Related party fees | Fees incurred during the three months and six months ended June 30, 2017 and 2016 were as follows: For the Six Months Ended June 30, For the Three Months Ended June 30, 2017 2016 2017 2016 Management fees $ 3,005,100 $ 2,436,500 $ 1,498,300 $ 1,172,500 Acquisition fees 641,900 - 421,400 - Remarketing fees 51,100 58,800 - 58,800 |
Organization and Summary of S22
Organization and Summary of Significant Accounting Policies (Details) | Aug. 31, 2016Subsidiary | Jun. 30, 2017USD ($)Aircraft | Jun. 30, 2016USD ($) | Jun. 30, 2017USD ($)Aircraft | Jun. 30, 2016USD ($) | Dec. 31, 2016USD ($) |
Organization and Summary of Significant Accounting Policies [Abstract] | ||||||
Number of wholly owned subsidiaries | Subsidiary | 2 | |||||
Capital Leased Assets [Line Items] | ||||||
Impairment charge | $ 454,300 | $ 246,200 | $ 454,300 | $ 321,200 | ||
Notes payable and accrued interest | 147,433,700 | $ 147,433,700 | $ 125,837,900 | |||
Finance Leases [Abstract] | ||||||
Number of aircraft with sales type finance leases | Aircraft | 6 | |||||
Number of aircraft with direct financing leases | Aircraft | 3 | |||||
Interest earned on finance lease | 432,300 | 187,000 | $ 757,700 | 372,100 | ||
SPE Financing [Member] | ||||||
Capital Leased Assets [Line Items] | ||||||
Notes payable and accrued interest | 15,614,700 | 15,614,700 | 17,654,200 | |||
Credit Facility [Member] | ||||||
Capital Leased Assets [Line Items] | ||||||
Notes payable and accrued interest | 133,453,200 | 133,453,200 | 110,183,600 | |||
Held for Sale [Member] | ||||||
Capital Leased Assets [Line Items] | ||||||
Impairment charge | 70,400 | 41,100 | ||||
Recurring [Member] | ||||||
Assets and Liabilities Measured and Recorded at Fair Value on a Recurring Basis [Abstract] | ||||||
Money market funds included in cash and cash equivalents | 2,848,700 | 2,848,700 | 1,348,100 | |||
Liabilities recorded at fair value | 0 | $ 0 | $ 0 | |||
Aircraft [Member] | Held for Lease [Member] | ||||||
Capital Leased Assets [Line Items] | ||||||
Impairment charge | $ 454,300 | |||||
Number of aircraft held for sale | Aircraft | 1 | 1 | ||||
Aircraft [Member] | Held for Sale [Member] | ||||||
Capital Leased Assets [Line Items] | ||||||
Impairment charge | $ 0 | $ 246,200 | $ 0 | $ 321,200 |
Finance Leases Receivable (Deta
Finance Leases Receivable (Details) - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 |
Net Investment [Abstract] | ||
Gross minimum lease payments receivable | $ 29,607,600 | $ 20,829,200 |
Less unearned interest | (4,327,200) | (3,360,900) |
Finance leases receivable | 25,280,400 | 17,468,300 |
Minimum Future Lease Revenue Payments [Abstract] | ||
Remainder of 2017 | 2,983,800 | |
2,018 | 5,811,600 | |
2,019 | 7,087,600 | |
2,020 | 5,036,600 | |
2,021 | 5,381,000 | |
Thereafter | 3,307,000 | |
Total | $ 29,607,600 | $ 20,829,200 |
Aircraft and Aircraft Engines24
Aircraft and Aircraft Engines Held for Lease or Sale (Details) | 3 Months Ended | 6 Months Ended | ||||
Sep. 30, 2017USD ($)Aircraft | Jun. 30, 2017USD ($)Aircraft | Jun. 30, 2016USD ($) | Jun. 30, 2017USD ($)AircraftAsset | Jun. 30, 2016USD ($) | Dec. 31, 2016Aircraft | |
Aircraft and aircraft engines held for lease or sale [Abstract] | ||||||
Payment for equipment and acquisition costs related to aircraft purchased | $ 7,614,200 | $ 0 | ||||
Gain (loss) on sale of assets | $ (147,700) | $ 2,146,500 | (133,900) | 2,146,500 | ||
Proceeds from the sale of airframe parts | 112,600 | 3,059,900 | ||||
Asset Impairment Charges | 454,300 | 246,200 | 454,300 | $ 321,200 | ||
Minimum future lease revenue payments receivable under noncancelable operating leases [Abstract] | ||||||
Remainder of 2017 | 13,271,400 | 13,271,400 | ||||
2,018 | 24,683,000 | 24,683,000 | ||||
2,019 | 24,255,200 | 24,255,200 | ||||
2,020 | 21,803,000 | 21,803,000 | ||||
2,021 | 14,701,600 | 14,701,600 | ||||
Thereafter | 39,294,700 | 39,294,700 | ||||
Total | $ 138,008,900 | $ 138,008,900 | ||||
Turboprop Aircraft [Member] | ||||||
Aircraft and aircraft engines held for lease or sale [Abstract] | ||||||
Number owned | Aircraft | 11 | 11 | 12 | |||
Percentage of net book value | 21.00% | 21.00% | 23.00% | |||
Regional Jet Aircraft [Member] | ||||||
Aircraft and aircraft engines held for lease or sale [Abstract] | ||||||
Number owned | Aircraft | 14 | 14 | 12 | |||
Percentage of net book value | 77.00% | 77.00% | 73.00% | |||
Engines [Member] | ||||||
Aircraft and aircraft engines held for lease or sale [Abstract] | ||||||
Number owned | Aircraft | 1 | 1 | 4 | |||
Percentage of net book value | 2.00% | 2.00% | 4.00% | |||
Embraer 175 Aircraft [Member] | ||||||
Aircraft and aircraft engines held for lease or sale [Abstract] | ||||||
Number of aircraft purchased | Aircraft | 2 | |||||
Held for Lease [Member] | ||||||
Aircraft and aircraft engines held for lease or sale [Abstract] | ||||||
Percentage of net book value | 7.00% | 7.00% | ||||
Payment for equipment and acquisition costs related to aircraft purchased | 963,600 | |||||
Number of assets held for lease, off lease | Asset | 6 | |||||
Held for Lease [Member] | Turboprop Aircraft [Member] | ||||||
Aircraft and aircraft engines held for lease or sale [Abstract] | ||||||
Number of assets held for lease, off lease | Asset | 5 | |||||
Held for Lease [Member] | Engines [Member] | ||||||
Aircraft and aircraft engines held for lease or sale [Abstract] | ||||||
Number of aircraft sold | Aircraft | 2 | |||||
Gain (loss) on sale of assets | $ (173,700) | |||||
Number of assets held for lease, off lease | Asset | 1 | |||||
Held for Lease [Member] | Embraer 175 Aircraft [Member] | ||||||
Aircraft and aircraft engines held for lease or sale [Abstract] | ||||||
Number of aircraft purchased | Aircraft | 2 | |||||
Payment for equipment and acquisition costs related to aircraft purchased | $ 21,172,700 | |||||
Held for Lease [Member] | Embraer 175 Aircraft [Member] | Forecast [Member] | ||||||
Aircraft and aircraft engines held for lease or sale [Abstract] | ||||||
Number of aircraft purchased | Aircraft | 1 | |||||
Payment for equipment and acquisition costs related to aircraft purchased | $ 500,000 | |||||
Held for Sale [Member] | ||||||
Aircraft and aircraft engines held for lease or sale [Abstract] | ||||||
Proceeds from the sale of airframe parts | 96,300 | 41,100 | ||||
Asset Impairment Charges | $ 70,400 | $ 41,100 | ||||
Held for Sale [Member] | Turboprop Aircraft [Member] | ||||||
Aircraft and aircraft engines held for lease or sale [Abstract] | ||||||
Number of assets held for sale | Aircraft | 1 | 1 | ||||
Held for Sale [Member] | Turboprop Airframe [Member] | ||||||
Aircraft and aircraft engines held for lease or sale [Abstract] | ||||||
Number of aircraft sold | Aircraft | 2 | |||||
Gain (loss) on sale of assets | $ 25,900 | |||||
Number of assets held for sale | Aircraft | 1 | 1 | ||||
Held for Sale [Member] | Aircraft [Member] | ||||||
Aircraft and aircraft engines held for lease or sale [Abstract] | ||||||
Number of assets held for sale | Aircraft | 3 | 3 |
Notes Payable and Accrued Int25
Notes Payable and Accrued Interest (Details) | Aug. 31, 2016USD ($)Aircraft | Jul. 31, 2017USD ($) | Jun. 30, 2017USD ($) | Dec. 31, 2016USD ($) |
Credit Facility [Abstract] | ||||
Unamortized debt issuance costs | $ (1,634,200) | $ (1,999,900) | ||
SPE Financing [Abstract] | ||||
Notes payable and accrued interest | 147,433,700 | 125,837,900 | ||
SPE Financing [Member] | ||||
SPE Financing [Abstract] | ||||
Principal | 15,589,700 | 17,623,600 | ||
Interest rate | 4.455% | |||
Accrued interest | 25,000 | 30,600 | ||
Notes payable and accrued interest | 15,614,700 | 17,654,200 | ||
SPE Financing [Member] | October 3, 2020 [Member] | ||||
SPE Financing [Abstract] | ||||
Principal | $ 9,805,600 | |||
SPE Financing [Member] | November 7, 2020 [Member] | ||||
SPE Financing [Abstract] | ||||
Principal | $ 9,804,300 | |||
SPE Financing [Member] | Regional Jet Aircraft [Member] | ||||
SPE Financing [Abstract] | ||||
Number of aircraft purchased | Aircraft | 2 | |||
Credit Facility [Member] | ||||
Credit Facility [Abstract] | ||||
Principal | 133,300,000 | 110,100,000 | ||
Unamortized debt issuance costs | (1,634,200) | (1,999,900) | ||
Credit facility current borrowing capacity | 150,000,000 | |||
Credit facility maximum borrowing capacity | 180,000,000 | |||
Unused amount of the credit facility | $ 16,700,000 | $ 39,900,000 | ||
Weighted average interest rate on credit facility | 4.68% | 4.15% | ||
SPE Financing [Abstract] | ||||
Accrued interest | $ 153,200 | $ 83,600 | ||
Credit Facility [Member] | Subsequent Event [Member] | ||||
Credit Facility [Abstract] | ||||
Credit facility current borrowing capacity | $ 170,000,000 |
Acquisition Costs (Details)
Acquisition Costs (Details) - USD ($) | 3 Months Ended | 6 Months Ended |
Jun. 30, 2017 | Jun. 30, 2017 | |
Acquisition Costs [Abstract] | ||
Acquisition costs | $ 24,100 | $ 125,900 |
Computation of Earnings Per S27
Computation of Earnings Per Share (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Basic and diluted earnings per share [Abstract] | ||||
Net income | $ 355,700 | $ 298,600 | $ 997,200 | $ 732,300 |
Weighted average shares outstanding for the period (in shares) | 1,416,699 | 1,566,699 | 1,482,997 | 1,566,699 |
Basic earnings per share (in dollars per share) | $ 0.25 | $ 0.19 | $ 0.67 | $ 0.47 |
Diluted earnings per share (in dollars per share) | $ 0.25 | $ 0.19 | $ 0.67 | $ 0.47 |
Related Party Transactions (Det
Related Party Transactions (Details) | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
Mar. 31, 2017USD ($)Aircraftshares | Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | Jan. 31, 2012 | |
Related Party Transaction [Line Items] | ||||||
Management fees | $ 1,498,300 | $ 1,172,500 | $ 3,005,100 | $ 2,436,500 | ||
Jet Fleet Management Corp. [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Management fees | 1,498,300 | 1,172,500 | 3,005,100 | 2,436,500 | ||
Acquisition fees | 421,400 | 0 | 641,900 | 0 | ||
Remarketing fees | $ 0 | $ 58,800 | $ 51,100 | $ 58,800 | ||
Lee G. Beaumont [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Percentage of shares acquired by related party | 5.00% | |||||
Lee G. Beaumont [Member] | Engines [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Number of aircraft engines exchanged | Aircraft | 1 | |||||
Number of shares held by the related party (in shares) | shares | 150,000 | |||||
Gain (loss) on exchange of sale of assets | $ 0 |
Subsequent Events (Details)
Subsequent Events (Details) | Aug. 10, 2017USD ($)AircraftVendor | Jul. 31, 2017USD ($)Aircraft | Jun. 30, 2017USD ($)Aircraft | Jun. 30, 2016USD ($) | Jun. 30, 2017USD ($)Aircraft | Jun. 30, 2016USD ($) |
Subsequent Event [Line Items] | ||||||
Gain on financing lease | $ | $ 0 | $ 42,000 | $ 297,400 | $ 47,400 | ||
Number of assets intended for lease | 6 | |||||
Embraer 175 Aircraft [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Number of aircraft purchased | 2 | |||||
Embraer 175 Aircraft [Member] | Held for Lease [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Number of aircraft purchased | 2 | |||||
Turboprop Aircraft [Member] | Held for Sale [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Number of assets held for sale | 1 | 1 | ||||
Turboprop Airframe [Member] | Held for Sale [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Number of assets held for sale | 1 | 1 | ||||
Subsequent Event [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Number of vendor in consignment agreements | Vendor | 2 | |||||
Subsequent Event [Member] | Embraer 175 Aircraft [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Number of aircraft purchased | 1 | |||||
Subsequent Event [Member] | Turboprop Aircraft [Member] | Held for Lease [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Number of assets returned | 1 | |||||
Gain on financing lease | $ | $ 332,000,000,000 | |||||
Subsequent Event [Member] | Turboprop Airframe [Member] | Held for Sale [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Number of assets held for sale | 1 | |||||
Subsequent Event [Member] | Engines [Member] | Held for Lease [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Number of assets intended for lease | 1 | |||||
Subsequent Event [Member] | Engines [Member] | Held for Sale [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Number of assets held for sale | 1 | |||||
Subsequent Event [Member] | Credit Facility [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Credit facility current borrowing capacity | $ | $ 170,000,000 |