Aircastle released its Q2/17 financial results. Below is a summary of the findings from the report.

• Total revenues were $223.5 million for Q2/17, up 18%.
• Total lease rental and finance and sales-type lease revenues were $195.0 million, up 8%.
• Net loss was $7.1 million, or $0.09 per diluted common share; including $65.7 million of net aircraft impairment charges related to freighter aircraft sales and $5.1 million of separation and disability compensation paid to the company’s former chief executive.
• Adjusted net income was $2.4 million, or $0.03 per diluted common share.
• Adjusted EBITDA was $224.1 million for the second quarter, up 23%.
• Cash ROE was 12.9%; net cash interest margin was 8.8%.
• Acquired seven mid-aged narrow-body aircraft for approximately $86 million during the quarter.
• Sold 13 aircraft during the second quarter for proceeds of $221.5 million and a gain on sale of $13.5 million.
• Further reduced its exposure to freighter aircraft by agreeing to sell two 747-400 production freighters and one converted freighter.
• Repaid $500 million of 6.75% coupon debt and borrowed $500 million of 4.125% coupon debt; $13.1 million of annual interest expense savings.

Commenting on the results, Mike Inglese, Aircastle’s CEO, said, “Our strong core results in the second quarter highlight the portfolio de-risking that we have pursued since the beginning of 2015.  Over the past two and a half years, we have taken advantage of market conditions to sell 75 aircraft, generating $111 million in gains on sale, while also enhancing the quality of our fleet. During that time, we also acquired 121 aircraft for $3.3 billion.

“In addition to our solid operating performance, during the first six months of 2017, we opportunistically sold fourteen aircraft and realized gains of more than $14 million.  During the second quarter, we also reduced our freighter exposure by more than 45% by taking the opportunity to sell two younger production freighters to a carrier in Asia.  Our three remaining production freighters are on longer term leases, and our orderly exit from the cargo market, which began several years ago, is nearing completion.

“Aircastle’s core business is strong, and we are poised for accretive growth in the second half of 2017. Our limited long-term capital commitments, significant financial flexibility, and proven value investment approach position us to continue to grow the business in a disciplined and profitable manner.”