Aircastle Limited (AYR) has reported a 17.03 percent rise in profit for the quarter ended Mar. 31, 2017. The company has earned $42.44 million, or $0.54 a share in the quarter, compared with $36.26 million, or $0.46 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $45.69 million, or $0.58 a share compared with $44.09 million or $0.56 a share, a year ago.
Revenue during the quarter grew 11.22 percent to $204.27 million from $183.66 million in the previous year period. Gross margin for the quarter contracted 67 basis points over the previous year period to 98.57 percent. Total expenses were 47.98 percent of quarterly revenues, up from 43.94 percent for the same period last year. That has resulted in a contraction of 404 basis points in operating margin to 52.02 percent.
Operating income for the quarter was $106.26 million, compared with $102.96 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $193.39 million compared with $183.88 million in the prior year period.
Commenting on the results, Mike Inglese, Aircastle's Chief Financial Officer and Acting chief executive officer, stated "Amid a strong aircraft financing environment, Aircastle has continued to benefit from our strategic flexibility, solid balance sheet, and our opportunistic investment strategy. We have remained disciplined in the pursuit of acquisitions and are determined to act only where opportunities have appealing risk and return profiles. With our unique ability to provide value-added solutions to customers, we successfully closed $190 million of aircraft acquisitions during the first quarter and secured commitments to close a further $220 million. We also seized the opportunity to sell or commit to sell several additional aircraft on appealing terms, continuing our progress in optimizing the fleet mix. A number of these aircraft sales are expected to close in the second quarter."
Operating cash flow improves
Aircastle Limited has generated cash of $131.58 million from operating activities during the quarter, up 8.50 percent or $10.31 million, when compared with the last year period.
The company has spent $157.25 million cash to meet investing activities during the quarter as against cash inflow of $198.10 million in the last year period.
Cash flow from financing activities was $439.47 million for the quarter, up 349.98 percent or $341.81 million, when compared with the last year period.
Debt moves up
Aircastle Limited has witnessed an increase in total debt over the last one year. It stood at $4,971.18 million as on Mar. 31, 2017, up 18.80 percent or $786.80 million from $4,184.38 million on Mar. 31, 2016. Total debt was 64.22 percent of total assets as on Mar. 31, 2017, compared with 62.43 percent on Mar. 31, 2016. Debt to equity ratio was at 2.68 as on Mar. 31, 2017, up from 2.36 as on Mar. 31, 2016.
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