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AeroCentury Corp. (NYSE American: ACY), today announced financial results for its fiscal third quarter ended September 30, 2021.
Aspreviously reported, the Company and its U.S. subsidiaries previously filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Court on March 29, 2021. On August 31, 2021, the Bankruptcy Court confirmed the Company’s Plan of Reorganization. On September 30,2021, the Company completed its Chapter 11 restructuring process and emerged from its Chapter 11 bankruptcy.
Financial Highlights:
· Net income in the third quarter of 2021 was $27.5 million as compared to a net loss of $4.1 million in the same period in 2020.
· The Company recorded$28.7 million of reorganization gains in the third quarter of 2021.
· The Company adopted fresh start reporting adjustments following its emergence from bankruptcy.
YuchengHu, the Company’s Chief Executive Officer, said: “We are very pleased to announce the Company’s financial results for the third quarter of 2021, representing the fresh start for the Company from both from financial and strategic perspectives. After the completion of the Company’s reorganization, we look forward to continuing to enjoy a portion of the growth and development of the Company’s legacy aircraft leasing business through our majority stake in the Company’s previously wholly-owned subsidiary, JetFleet Holding Corp., but we will also be opportunistic and look for additional growth investments in the future to diversify our revenue streams and potential high growth earnings to our shareholders.”
Third Quarter 2021 Financial Results:
Because the Company’s consolidated financial statements reflects fresh start reporting adjustments following its emergence from bankruptcy, any effects of the transactions contemplated by the Plan and Plan Sponsor Agreement, and financial information relating to results of operations, the Company cannot adequately benchmark the operating results of the 1-day period ended September 30, 2021 against any ofthe previous periods reported in its Condensed Consolidated Financial Statements. As such, the following operating results for the Company’s fiscal third quarter is based on the period from July 1, 2021 through September 29, 2021 (“2021 Q3”).
l Net income in 2021 Q3was $27.5 million as compared to a net loss of $4.1 million in 2020 Q3.
l Revenues and other income decreased by 54% to $1.6 million in 2021 Q3 from $3.5 million in 2020 Q3, primarily due to a decrease in operating lease revenue and reduced rent for two assets.
l In 2021 Q3, the Company had total operating expenses of $2.7 million as compared to $7.0 million in 2020 Q3, primarily comprised of professional fees and administrative expenses and salary and employee benefits, due to no impairment charges after the assets used to settle the liabilities subject to compromise, less interest expense accrued on the Drake Indebtedness after the Company’s Chapter 11 filing in late March 2021 and the decreased depreciation expenses.