Stamford’s Aircastle Ltd., which acquires and leases commercial jet aircraft worldwide, posted a decrease of $27.3 million in sales for the fourth quarter, but a $23.7 million increase in full-year sales.
The firm said its fourth-quarter figures were impacted by a $12.4 million decline in lease rental and finance and sales-type lease revenues, as well as a $12.6 million decrease in maintenance revenues.
Net income for the quarter was $55.1 million, a decrease of $12.6 million, while adjusted net income declined by $13.5 million to $57 million. Lower total revenues of $27.3 million and a $5 million reduction in gains from the sale of flight equipment were partially offset by an $11.3 million decrease in interest expense and lower depreciation of $6.1 million.
CEO Mike Inglese said, “As competitive investment market conditions are expected to persist into 2018, we believe that Aircastle will once again benefit from our outstanding team, a strong balance sheet and a nuanced investment approach that prioritizes flexibility and disciplined growth, in order to maximize risk-adjusted returns and increase sustainable earnings and operating cash flow over time.”
Total revenues in 2017 were $796.6 million, an increase of $23.7 million, while lease rental and finance and sales-type lease revenues were $747 million, an increase of $4.6 million. The increase in total revenues was primarily driven by $22.5 million of higher maintenance revenues and higher lease rental and finance and sales-type lease revenues associated with net fleet growth.
Net income for the full year was $147.9 million, down $3.6 million year-over-year, while adjusted net income was $169.6 million, an increase of $1 million. Higher total revenues of $23.7 million, higher gains from the sale of flight equipment of $16 million, and lower interest expense of $14.4 million offset higher aircraft impairment charges of $51.8 million.