PALO ALTO, Calif., Nov. 19, 2021 /PRNewswire/ -- AeroCentury Corp.
("AeroCentury" or the "Company") (NYSE American: ACY), today
announced financial results for its fiscal third quarter ended
September 30, 2021.
As previously 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.
Yucheng Hu, 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 of the 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").
- Net income in 2021 Q3 was $27.5
million as compared to a net loss of $4.1 million in 2020 Q3.
- 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.
- 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.
About AeroCentury: AeroCentury is an independent
global aircraft operating lessor and finance company specializing
in leasing regional jet and turboprop aircraft and related engines.
AeroCentury intends to focus on new lines of business other
than the aircraft leasing business going forward.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of the "safe harbor" provisions of the United States
Private Securities Litigation Reform Act of 1995. All statements in
this press release other than statements that are purely historical
are forward-looking statements. When used in this press release,
the words "estimates," "projected," "expects," "anticipates,"
"forecasts," "plans," "intends," "believes," "seeks," "may,"
"will," "should," "future," "propose," and variations of these
words or similar expressions (or the negative versions of such
words or expressions) are intended to identify forward-looking
statements. These forward-looking statements are not guarantees for
future performance, conditions or results, and involve a number of
known and unknown risks, uncertainties, assumptions and other
important factors, many of which are outside the Company's control,
that could cause actual results or outcomes to differ materially
from those discussed in the forward-looking statements. Important
factors, among others, are: the ability to manage growth; ability
to identify and integrate other future acquisitions; ability to
obtain additional financing in the future to fund capital
expenditures; fluctuations in general economic and business
conditions; costs or other factors adversely affecting the
Company's profitability; litigation involving patents, intellectual
property, and other matters; potential changes in the legislative
and regulatory environment; a pandemic or epidemic. The
forward-looking statements in this press release and the Company's
future results of operations are subject to additional risks and
uncertainties set forth under the heading "Factors that May Affect
Future Results and Liquidity" in documents filed by the Company
with the Securities and Exchange Commission, including the
Company's quarterly reports on Form 10-Q and the Company's latest
annual report on Form 10-K, and are based on information available
to the Company on the date hereof. In addition, such risks and
uncertainties include the Company's inability to predict or control
bankruptcy proceedings and the uncertainties surrounding the
ability to generate cash proceeds through the sale or other
monetization of the Company's assets. The Company undertakes no
obligation to update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise,
except as required by applicable law. Readers are cautioned not to
place undue reliance on forward-looking statements, which speak
only as of the date of this press release.
|
AeroCentury
Corp.
|
|
Condensed
Consolidated Balance Sheets
|
|
(Unaudited)
|
|
|
|
Successor
|
|
|
Predecessor
|
|
|
|
September 30,
|
|
|
September 29,
|
|
|
December 31,
|
|
|
|
2021
|
|
|
2021
|
|
|
2020
|
|
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
10,625,600
|
|
|
$
|
10,527,200
|
|
|
$
|
2,408,700
|
|
|
Accounts
receivable
|
|
|
-
|
|
|
|
-
|
|
|
|
256,600
|
|
|
Finance leases
receivable, net
|
|
|
450,000
|
|
|
|
450,000
|
|
|
|
2,547,000
|
|
|
Aircraft held for
lease, net
|
|
|
-
|
|
|
|
-
|
|
|
|
45,763,100
|
|
|
Property, equipment
and furnishings, net
|
|
|
-
|
|
|
|
-
|
|
|
|
14,900
|
|
|
Office lease right of
use, net
|
|
|
-
|
|
|
|
-
|
|
|
|
142,400
|
|
|
Deferred tax
asset
|
|
|
-
|
|
|
|
-
|
|
|
|
1,150,900
|
|
|
Taxes
receivable
|
|
|
1,234,500
|
|
|
|
1,234,500
|
|
|
|
-
|
|
|
Prepaid expenses and
other assets
|
|
|
1,884,400
|
|
|
|
1,884,400
|
|
|
|
255,300
|
|
|
Goodwill
|
|
|
4,688,600
|
|
|
|
-
|
|
|
|
-
|
|
|
Assets held for
sale
|
|
|
-
|
|
|
|
31,149,300
|
|
|
|
40,838,900
|
|
|
Total
assets
|
|
$
|
18,883,100
|
|
|
$
|
45,245,400
|
|
|
$
|
93,377,800
|
|
|
LIABILITIES AND
STOCKHOLDERS' DEFICIT
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts payable and
accrued expenses
|
|
$
|
1,512,100
|
|
|
$
|
1,513,700
|
|
|
$
|
367,700
|
|
|
Accrued
payroll
|
|
|
232,100
|
|
|
|
232,100
|
|
|
|
190,100
|
|
|
Notes payable and
accrued interest, net
|
|
|
-
|
|
|
|
-
|
|
|
|
88,793,200
|
|
|
Derivative
termination liability
|
|
|
-
|
|
|
|
-
|
|
|
|
3,075,300
|
|
|
Lease
liability
|
|
|
-
|
|
|
|
-
|
|
|
|
172,000
|
|
|
Maintenance
reserves
|
|
|
-
|
|
|
|
-
|
|
|
|
2,000,600
|
|
|
Accrued maintenance
costs
|
|
|
-
|
|
|
|
-
|
|
|
|
46,100
|
|
|
Security
deposits
|
|
|
-
|
|
|
|
-
|
|
|
|
716,000
|
|
|
Unearned
revenues
|
|
|
-
|
|
|
|
-
|
|
|
|
1,027,400
|
|
|
Income taxes
payable
|
|
|
19,600
|
|
|
|
19,600
|
|
|
|
900
|
|
|
Deferred tax
liabilities
|
|
|
114,500
|
|
|
|
114,500
|
|
|
|
-
|
|
|
Subscription fee
advanced from the Plan Sponsor
|
|
|
-
|
|
|
|
10,953,100
|
|
|
|
-
|
|
|
Liabilities held for
sale
|
|
|
-
|
|
|
|
-
|
|
|
|
14,604,800
|
|
|
Liabilities subject
to compromise
|
|
|
-
|
|
|
|
42,029,100
|
|
|
|
-
|
|
|
Total
liabilities
|
|
|
1,878,300
|
|
|
|
54,862,100
|
|
|
|
110,994,100
|
|
|
Commitments and
contingencies (Note 8)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders'
deficit:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred stock,
$0.001 par value, 2,000,000 shares
authorized, no shares issued and outstanding
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Common stock, $0.001
par value, 10,000,000 shares
authorized, 4,416,811 and 1,545,884 shares
outstanding at September 30, 2021 and December
31, 2020
|
|
|
4,700
|
|
|
|
1,800
|
|
|
|
1,800
|
|
|
Paid-in
capital
|
|
|
17,000,100
|
|
|
|
16,817,800
|
|
|
|
16,782,800
|
|
|
Accumulated
deficit
|
|
|
-
|
|
|
|
(23,399,000)
|
|
|
|
(31,361,600)
|
|
|
Accumulated other
comprehensive loss
|
|
|
-
|
|
|
|
-
|
|
|
|
(2,000)
|
|
|
|
|
17,004,800
|
|
|
|
(6,579,400)
|
|
|
|
(14,579,000)
|
|
|
Treasury stock at
cost, 0 and 213,332 shares at
September 30, 2021 and December 31, 2020
|
|
|
-
|
|
|
|
(3,037,300)
|
|
|
|
(3,037,300)
|
|
|
Total stockholders'
deficit
|
|
|
17,004,800
|
|
|
|
(9,616,700)
|
|
|
|
(17,616,300)
|
|
|
Total liabilities and
stockholders' deficit
|
|
$
|
18,883,100
|
|
|
$
|
45,245,400
|
|
|
$
|
93,377,800
|
|
|
AeroCentury
Corp.
|
|
Condensed
Consolidated Statements of Operations and Comprehensive Income
(Loss)
|
|
(Unaudited)
|
|
|
|
Successor
|
|
|
Predecessor
|
|
|
|
September 30,
2021
|
|
|
Period from
July 1, 2021
through September 29, 2021
|
|
|
Three months
ended
September 30,2020
|
|
|
Revenues and other
income:
|
|
|
|
|
|
|
|
|
|
|
Operating lease
revenue
|
|
$
|
-
|
|
|
$
|
1,546,300
|
|
|
$
|
3,249,100
|
|
|
Maintenance reserves
revenue, net
|
|
|
-
|
|
|
|
65,100
|
|
|
|
221,400
|
|
|
Net gain on disposal
of assets
|
|
|
-
|
|
|
|
-
|
|
|
|
19,800
|
|
|
Other
income
|
|
|
-
|
|
|
|
500
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
1,611,900
|
|
|
|
3,490,300
|
|
|
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impairment in value
of aircraft
|
|
$
|
-
|
|
|
|
-
|
|
|
|
439,000
|
|
|
Interest
|
|
|
-
|
|
|
|
1,500
|
|
|
|
3,020,100
|
|
|
Professional fees,
general and administrative and other
|
|
|
-
|
|
|
|
2,001,000
|
|
|
|
1,370,600
|
|
|
Depreciation
|
|
|
-
|
|
|
|
10,200
|
|
|
|
1,342,100
|
|
|
Salaries and employee
benefits
|
|
|
-
|
|
|
|
448,800
|
|
|
|
498,800
|
|
|
Insurance
|
|
|
-
|
|
|
|
197,500
|
|
|
|
191,400
|
|
|
Maintenance
|
|
|
-
|
|
|
|
33,300
|
|
|
|
78,000
|
|
|
Other
taxes
|
|
|
-
|
|
|
|
25,600
|
|
|
|
26,500
|
|
|
Total operating
expenses
|
|
|
-
|
|
|
|
2,717,900
|
|
|
|
6,966,500
|
|
|
Reorganization gains,
net
|
|
|
-
|
|
|
|
28,691,100
|
|
|
|
-
|
|
|
Gain (loss) before
income tax provision
|
|
|
-
|
|
|
|
27,585,100
|
|
|
|
(3,476,200)
|
|
|
Income tax
provision
|
|
|
-
|
|
|
|
76,900
|
|
|
|
604,900
|
|
|
Net income
(loss)
|
|
$
|
-
|
|
|
$
|
27,508,200
|
|
|
$
|
(4,081,100)
|
|
|
Earnings (Loss) per
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
-
|
|
|
$
|
17.79
|
|
|
$
|
(2.64)
|
|
|
Diluted
|
|
$
|
-
|
|
|
$
|
17.79
|
|
|
$
|
(2.64)
|
|
|
Weighted average
shares used in loss per share computations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
4,416,811
|
|
|
|
1,545,884
|
|
|
|
1,545,884
|
|
|
Diluted
|
|
|
4,416,811
|
|
|
|
1,545,884
|
|
|
|
1,545,884
|
|
|
Net income
(loss)
|
|
|
-
|
|
|
|
27,508,200
|
|
|
|
(4,081,100)
|
|
|
Other comprehensive
income/(loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized losses on
derivative instruments
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Reclassification of
net unrealized losses on
derivative instruments to interest expense
|
|
|
-
|
|
|
|
-
|
|
|
|
149,100
|
|
|
Tax expense related
to items of other comprehensive loss
|
|
|
-
|
|
|
|
-
|
|
|
|
(32,400)
|
|
|
Other comprehensive
income
|
|
|
-
|
|
|
|
-
|
|
|
|
116,700
|
|
|
Total comprehensive
loss
|
|
$
|
-
|
|
|
$
|
27,508,200
|
|
|
$
|
(3,964,400)
|
|
View original
content:https://www.prnewswire.com/news-releases/aerocentury-corp-reports-third-quarter-2021-financial-results-301429354.html
SOURCE AeroCentury Corp.
