AeroCentury Corp (ACY, Financial) filed Quarterly Report for the period ended 2010-03-31.
Aerocentury Corp has a market cap of $34.7 million; its shares were traded at around $22.45 with a P/E ratio of 6.3 and P/S ratio of 1. Aerocentury Corp had an annual average earning growth of 16.6% over the past 10 years.ACY is in the portfolios of Jim Simons of Renaissance Technologies LLC.
During the quarter ended March 31, 2010, the Company borrowed $0 and repaid $500,000 of the outstanding principal under the Credit Facility. In April 2010, the Company repaid $3,000,000 of the outstanding principal under the Credit Facility. As of March 31, 2010, and December 31, 2009, the Company was in compliance with all covenants under the Credit Facility agreement.
As of March 31, 2010, the carrying amount of the Subordinated Notes was approximately $7,653,000 (outstanding principal amount of $8,008,500 less unamortized debt discount of approximately $355,500) and accrued interest payable was $0. As of December 31, 2009, the carrying amount of the Subordinated Notes was approximately $8,976,200 (outstanding principal amount of $9,462,000 less unamortized debt discount of approximately $485,800) and accrued interest payable was $0. The Company was in compliance with all covenants under the agreement to which the Subordinated Notes were first issued (“Subordinated Notes Agreement”) as of March 31, 2010 and December 31, 2009 and is currently in compliance.
During the quarter ended March 31, 2010, the Company received cash of $2,380,700 from the collection of insurance proceeds for (i) an aircraft that was damaged in January 2010 and (ii) an engine that was damaged in 2009. During the quarter ended March 31, 2010, the Company used cash of $212,400 for equipment that will be installed on several aircraft and for acquisition costs related to aircraft engines purchased in the fourth quarter of 2009. There were no investing activities in the same quarter of 2009.
In 2009 and early 2010, the Company agreed to defer a portion of the rent and maintenance reserves due from four customers that lease a total of eight of the Company s aircraft. The aggregate amount of such deferrals was approximately $4,000,000. The aggregate balance of the deferrals is currently approximately $2,252,000. At March 31, 2010, the Company recorded allowances totaling $662,500 against amounts due from two of the Company s lessees.
JMC has acted as the management company for two other aircraft portfolio owners, JetFleet III, which raised approximately $13,000,000 in bond issuance proceeds, and AeroCentury IV, Inc. (“AeroCentury IV”), which raised approximately $5,000,000 in bond issuance proceeds. In the first quarter of 2002, AeroCentury IV defaulted on certain bond obligations. In June 2002, the indenture trustee for AeroCentury IV s bondholders repossessed AeroCentury IV s assets and took over management of AeroCentury IV s remaining assets. JetFleet III defaulted on its bond obligation of $11,076,400 in May 2004. The indenture trustee for JetFleet III bondholders repossessed JetFleet III s unsold assets in late May 2004.
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Aerocentury Corp has a market cap of $34.7 million; its shares were traded at around $22.45 with a P/E ratio of 6.3 and P/S ratio of 1. Aerocentury Corp had an annual average earning growth of 16.6% over the past 10 years.ACY is in the portfolios of Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations:
The Company recognized $306,200 more in maintenance expense in the quarter ended March 31, 2010 than in the same period of 2009. The increase was due to increases in expense for off-lease aircraft and maintenance performed by lessees using non-refundable reserves. During the quarters ended March 31, 2010 and 2009, $1,015,600 and $783,100, respectively, of the Company s maintenance expense was funded by non-refundable maintenance reserves that had been recorded as income when accrued.During the quarter ended March 31, 2010, the Company borrowed $0 and repaid $500,000 of the outstanding principal under the Credit Facility. In April 2010, the Company repaid $3,000,000 of the outstanding principal under the Credit Facility. As of March 31, 2010, and December 31, 2009, the Company was in compliance with all covenants under the Credit Facility agreement.
As of March 31, 2010, the carrying amount of the Subordinated Notes was approximately $7,653,000 (outstanding principal amount of $8,008,500 less unamortized debt discount of approximately $355,500) and accrued interest payable was $0. As of December 31, 2009, the carrying amount of the Subordinated Notes was approximately $8,976,200 (outstanding principal amount of $9,462,000 less unamortized debt discount of approximately $485,800) and accrued interest payable was $0. The Company was in compliance with all covenants under the agreement to which the Subordinated Notes were first issued (“Subordinated Notes Agreement”) as of March 31, 2010 and December 31, 2009 and is currently in compliance.
During the quarter ended March 31, 2010, the Company received cash of $2,380,700 from the collection of insurance proceeds for (i) an aircraft that was damaged in January 2010 and (ii) an engine that was damaged in 2009. During the quarter ended March 31, 2010, the Company used cash of $212,400 for equipment that will be installed on several aircraft and for acquisition costs related to aircraft engines purchased in the fourth quarter of 2009. There were no investing activities in the same quarter of 2009.
In 2009 and early 2010, the Company agreed to defer a portion of the rent and maintenance reserves due from four customers that lease a total of eight of the Company s aircraft. The aggregate amount of such deferrals was approximately $4,000,000. The aggregate balance of the deferrals is currently approximately $2,252,000. At March 31, 2010, the Company recorded allowances totaling $662,500 against amounts due from two of the Company s lessees.
JMC has acted as the management company for two other aircraft portfolio owners, JetFleet III, which raised approximately $13,000,000 in bond issuance proceeds, and AeroCentury IV, Inc. (“AeroCentury IV”), which raised approximately $5,000,000 in bond issuance proceeds. In the first quarter of 2002, AeroCentury IV defaulted on certain bond obligations. In June 2002, the indenture trustee for AeroCentury IV s bondholders repossessed AeroCentury IV s assets and took over management of AeroCentury IV s remaining assets. JetFleet III defaulted on its bond obligation of $11,076,400 in May 2004. The indenture trustee for JetFleet III bondholders repossessed JetFleet III s unsold assets in late May 2004.
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