AeroCentury Corp. (NYSE MKT: ACY) said it reported earnings growth of 80 percent to USD1.4 million, or USD0.87 per diluted share, in the second quarter of 2015, from USD752,000, or USD0.48 per diluted share, in the first quarter of 2015.
Second quarter profits were fueled by the company´s portfolio modernization program, which is generating gains from sale of older assets. Following the USD6.8 million non-cash, pre-tax write-down of certain older aircraft, the net loss in the second quarter of 2014 was USD3.9 million, or (USD2.54) per diluted share.
Net income improved to USD2.1 million, or USD1.36 per diluted share, for the first six months of 2015, compared to a net loss of USD3.6 million, or USD2.30 per diluted share, for the first six months of 2014. All reported results are unaudited.
Average portfolio utilization was 90 percent during both the first and second quarters of 2015, compared to 77 percent a year ago, reflecting the improved mix of assets in the lease portfolio.
Maintenance reserves revenue, which is generated when long-term leases end, was USD262,000 in the second quarter of 2015, compared to USD327,000 in the first quarter of 2015 when one aircraft was returned in each quarter, and USD1.7 million in the second quarter of 2014 when six aircraft were returned.
Total revenues increased 8.6 percent to USD9.4 million for the second quarter of 2015, compared to USD8.6 million in the preceding quarter, reflecting an increase in gain on sale of aircraft. The 18.9 percent increase in total revenues from USD7.9 million in the year ago quarter was due to increases in operating lease revenue and gain on sale of aircraft, which were partially offset by a decrease in maintenance reserves revenue in 2015, indicating fewer expirations of long-term leases this year.
AeroCentury is an aircraft operating lessor and finance company specializing in leasing regional aircraft and engines utilizing triple net leases. The company´s aircraft and engines are leased to regional airlines and commercial users worldwide.