AeroCentury Corp. (NYSE American: ACY) has reported a net loss of USD (13.5m), or USD (8.74) per share in the second quarter 2020, compared to a net loss of USD (0.1 million), or USD (0.05) per share, for the second quarter of 2019, the company said.
Results for the quarter ended June 30, 2020 included impairment losses totaling USD (9.7 million). Those losses arise from appraised values for three regional jet aircraft that are held for sale; estimated sales proceeds for an older turboprop aircraft that is held for sale and which the Company expects to sell during the fourth quarter of 2020, and estimated fair value of two regional jet aircraft that are held for lease.
Results for the second quarter of 2020 also included USD 2.0 million of charges arising from the conversion of the Company´s revolving credit facility to a term loan in May of 2020, including a USD 1.5 million write-off of a portion of the Company´s unamortized debt issuance costs included in interest expense and USD 0.5 million of costs that is included in professional fees and other.
On May 1, 2020, the Company and the MUFG Credit Facility Lenders executed an amendment to the MUFG Credit Facility to convert the MUFG Credit Facility into a term loan facility.
JetFleet Management Corp., a subsidiary of AeroCentury Corp., was granted a PPP loan from American Express National Bank in the aggregate amount of USD 276,353.
In the second quarter 2020, the company reported:
-EBITDA was USD (8.3) million compared to USD (4.7) million in the preceding quarter and USD 5.3 million a year ago
-Average portfolio utilization was 91% during the second quarter of 2020, compared to 83% in the preceding quarter and 99% in the second quarter of 2019. The year-to-year decrease was due to aircraft that were on lease in the 2019 period, but off lease in the 2020 period.
-Revenues in the second quarter of 2020 consisted primarily of operating lease revenue. Revenue of USD 4.4 million in the second quarter of 2020 was 8% less than the USD 4.8 million in revenue recorded in the first quarter of 2020 as a result of rent concessions granted to one of the Company´s customers due to the COVID-19 pandemic.
-Second quarter operating lease revenue in the current year was 37% lower than the USD 7.0 million in the second quarter of 2019 primarily due to rent concessions and reduced rent income resulting from the early termination of four aircraft leases with one of the Company´s customers in the third quarter of 2019.
-Total operating expenses increased by 9% to USD 19.2 million in the second quarter of 2020 from USD 17.7 million in the preceding quarter, and increased 72% from USD 7.3 million in the second quarter a year ago.
AeroCentury´s portfolio currently consists of 13 aircraft, spread over six different aircraft types. Eleven of the aircraft, comprised of nine regional jets and two turboprops, are held for lease. Two additional turboprops are held under sales-type leases. The company also has three turboprop aircraft, two of which are being sold in parts, and three regional jet aircraft that are held for sale.
AeroCentury is an independent global aircraft operating lessor and finance company specializing in leasing regional jet and turboprop aircraft and related engines. The Company´s aircraft and engines are leased to regional airlines and commercial users worldwide.