Aircastle Ltd. Reports Operating Results (10-K)
Aircastle Ltd has a market cap of $1.01 billion; its shares were traded at around $13.7 with a P/E ratio of 12.9 and P/S ratio of 1.9. The dividend yield of Aircastle Ltd stocks is 4.3%. Aircastle Ltd had an annual average earning growth of 17.7% over the past 5 years.
Highlight of Business Operations:Typically, we lease our aircraft on an operating lease basis. Under an operating lease, we retain the benefit, and bear the risk, of re-leasing and of the residual value of the aircraft upon expiration or early termination of the lease. Operating leasing can be an attractive alternative to ownership for airlines because leasing (i) increases fleet flexibility, (ii) requires a lower capital commitment for the airline, and (iii) significantly reduces aircraft residual value risk for the airline. Under our leases, the lessees agree to lease the aircraft for a fixed term, although certain of our operating leases allow the lessee the option to extend the lease for an additional term or, in rare cases, terminate the lease prior to its expiration. As a percentage of lease rental revenue for the year ended December 31, 2011, our three largest customers, Martinair (including its affiliates, KLM, Transavia and Transavia France), U.S. Airways, Inc., and Hainan Airlines Company, accounted for 11%, 7% and 6%, respectively.
We are a global company that acquires, leases, and sells high-utility commercial jet aircraft to passenger and cargo airlines throughout the world. High-utility aircraft are generally modern, operationally efficient jets with a large operator base and long useful lives. As of December 31, 2011, our aircraft portfolio consisted of 144 aircraft that were leased to 65 lessees located in 36 countries, and managed through our offices in the United States, Ireland and Singapore. Typically, our aircraft are subject to net operating leases whereby the lessee is generally responsible for maintaining the aircraft and paying operational, maintenance and insurance costs, although in a majority of cases we are obligated to pay a portion of specified maintenance or modification costs. From time to time, we also make investments in other aviation assets, including debt investments secured by commercial jet aircraft. Our revenues and income from continuing operations for the year ended December 31, 2011 were $605.2 million and $124.3 million, respectively, and for the fourth quarter 2011 were $156.9 million and $35.6 million, respectively.
Total revenues increased by 14.7%, or $77.5 million, for the year ended December 31, 2011 as compared to the year ended December 31, 2010, primarily as a result of the following:
Lease rental revenue. The increase in lease rental revenue of $49.1 million for the year ended December 31, 2011 as compared to the same period in 2010 was primarily the result of:
Lease rental revenue. The increase in lease rental revenue of $19.6 million for the year ended December 31, 2010 as compared to the same period in 2009 was primarily the result of:
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