Aircastle Limited (AYR) swung to a net profit for the quarter ended Sep. 30, 2016. The company has made a net profit of $27.44 million, or $ 0.35 a share in the quarter, against a net loss of $13.99 million, or $0.17 a share in the last year period. On an adjusted basis, net profit for the quarter stood at $29.71 million, or $0.38 a share compared with a net loss of $9.68 million, or $0.12 a share in the last year period. Revenue during the quarter dropped 8.22 percent to $194.65 million from $212.07 million in the previous year period. Gross margin for the quarter expanded 25 basis points over the previous year period to 99.06 percent. Operating margin for the quarter period stood at positive 14.58 percent as compared to a negative 13.48 percent for the previous year period.
Operating income for the quarter was $28.37 million, compared with an operating loss of $28.59 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $181.14 million compared with $216.31 million in the prior year period.
Commenting on the results, Ron Wainshal, Aircastle's chief executive officer, stated "Over the past several months, investor demand for aircraft increased markedly, causing prices to rise. We seized on this opportunity to improve the quality of our portfolio by reducing our freighter and wide-body aircraft holdings while also planting the seeds for profitable future asset sales."
Operating cash flow declines
Aircastle Limited has generated cash of $367.41 million from operating activities during the nine month period, down 10.05 percent or $41.06 million, when compared with the last year period. The company has spent $378.53 million cash to meet investing activities during the nine month period as against cash outgo of $713.47 million in the last year period. It has incurred net capital expenditure of $303.52 million on net basis during the nine month period, down 56.11 percent or $388.04 million from year ago period.
Cash flow from financing activities was $511.46 million for the nine month period, up 79.85 percent or $227.08 million, when compared with the last year period.
Cash and cash equivalents stood at $656.25 million as on Sep. 30, 2016, up 340.31 percent or $507.21 million from $149.04 million on Sep. 30, 2015.
Debt moves up
Aircastle Limited has witnessed an increase in total debt over the last one year. It stood at $4,547.73 million as on Sep. 30, 2016, up 13.83 percent or $552.51 million from $3,995.22 million on Sep. 30, 2015. Total debt was 63.31 percent of total assets as on Sep. 30, 2016, compared with 61.57 percent on Sep. 30, 2015. Debt to equity ratio was at 2.55 as on Sep. 30, 2016, up from 2.27 as on Sep. 30, 2015.
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