Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Mar. 12, 2015 | Jun. 30, 2014 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | AEROCENTURY CORP | ||
Entity Central Index Key | 1036848 | ||
Current Fiscal Year End Date | -19 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Public Float | $15,332,400 | ||
Entity Common Stock, Shares Outstanding | 1,543,257 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 31-Dec-14 |
Balance_Sheets
Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Assets: | ||
Cash and cash equivalents | $1,840,500 | $2,112,700 |
Accounts receivable, including deferred rent of $111,300 and $217,200 at December 31, 2014 and December 31, 2013, respectively | 2,128,600 | 3,303,800 |
Finance lease receivable | 0 | 1,895,200 |
Aircraft and aircraft engines held for lease, net of accumulated depreciation of $38,962,800 and $50,679,300 at December 31, 2014 and December 31, 2013, respectively | 186,762,600 | 152,954,600 |
Assets held for sale | 6,522,900 | 735,000 |
Prepaid expenses and other | 4,520,300 | 3,633,000 |
Total assets | 201,774,900 | 164,634,300 |
Liabilities: | ||
Accounts payable and accrued expenses | 2,818,200 | 1,202,700 |
Notes payable and accrued interest | 133,590,600 | 77,527,300 |
Maintenance reserves | 12,927,700 | 16,671,800 |
Accrued maintenance costs | 2,115,700 | 1,612,100 |
Security deposits | 5,218,300 | 6,265,000 |
Unearned revenues | 1,642,200 | 646,700 |
Deferred income taxes | 8,621,300 | 14,573,800 |
Total liabilities | 166,934,000 | 118,499,400 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Preferred stock, $0.001 par value, 2,000,000 shares authorized, no shares issued and outstanding | 0 | 0 |
Common stock, $0.001 par value, 10,000,000 shares authorized, 1,606,557 shares issued and outstanding | 1,600 | 1,600 |
Paid-in capital | 14,780,100 | 14,780,100 |
Retained earnings | 20,563,300 | 31,857,300 |
Shareholders equity before treasury stock | 35,345,000 | 46,639,000 |
Treasury stock at cost, 63,300 shares | -504,100 | -504,100 |
Total stockholders' equity | 34,840,900 | 46,134,900 |
Total liabilities and stockholders' equity | $201,774,900 | $164,634,300 |
Balance_Sheets_Parenthetical
Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Assets: | ||
Accounts receivable, deferred rent | $111,300 | $217,200 |
Aircraft and aircraft engines held for lease, accumulated depreciation | $38,962,800 | $50,679,300 |
Stockholders' equity: | ||
Preferred stock, par value (in dollars per share) | $0.00 | $0.00 |
Preferred stock, authorized (in shares) | 2,000,000 | 2,000,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Preferred stock, outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $0.00 | $0.00 |
Common stock, authorized (in shares) | 10,000,000 | 10,000,000 |
Common stock, issued (in shares) | 1,606,557 | 1,606,557 |
Common stock, outstanding (in shares) | 1,606,557 | 1,606,557 |
Treasury stock (in shares) | 63,300 | 63,300 |
Statements_of_Operations
Statements of Operations (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Revenues and other income: | ||
Operating lease revenue, net | $21,913,300 | $18,794,200 |
Maintenance reserves revenue, net | 3,393,600 | 14,910,400 |
Net gain on disposal of assets | 3,147,200 | 3,808,200 |
Other income | 252,400 | 718,800 |
Total Income | 28,706,500 | 38,231,600 |
Expenses: | ||
Provision for impairment in value of aircraft | 18,736,500 | 0 |
Maintenance | 7,478,400 | 6,962,400 |
Depreciation | 7,299,000 | 7,363,100 |
Management fees, net of approximately $1,200,000 of fees waived by JMC in 2014 | 3,864,900 | 4,369,300 |
Interest | 5,134,200 | 4,075,000 |
Professional fees, general and administrative and other | 1,718,800 | 1,174,500 |
Insurance | 1,255,300 | 1,166,400 |
Other taxes | 465,200 | 90,200 |
Bad debt expense | 0 | 357,600 |
Total expenses | 45,952,300 | 25,558,500 |
(Loss)/income before income tax provision | -17,245,800 | 12,673,100 |
Income tax (benefit)/provision | -5,951,800 | 4,329,200 |
Net (loss)/income | ($11,294,000) | $8,343,900 |
(Loss)/earnings per share: | ||
Basic (in dollars per share) | ($7.32) | $5.41 |
Diluted (in dollars per share) | ($7.32) | $5.26 |
Weighted average shares used in (loss)/earnings per share computations: | ||
Basic (in shares) | 1,543,257 | 1,543,257 |
Diluted (in shares) | 1,543,257 | 1,587,036 |
Statements_of_Operations_Paren
Statements of Operations (Parenthetical) (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Expenses: | |
Management fee, net waived off by JMC | $1,200,000 |
Statements_of_Stockholders_Equ
Statements of Stockholders' Equity (USD $) | Common Stock [Member] | Paid-in Capital [Member] | Retained Earnings [Member] | Treasury Stock [Member] | Total |
Balance at Dec. 31, 2012 | $1,600 | $14,780,100 | $23,513,400 | ($504,100) | $37,791,000 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income (loss) | 0 | 0 | 8,343,900 | 0 | 8,343,900 |
Balance at Dec. 31, 2013 | 1,600 | 14,780,100 | 31,857,300 | -504,100 | 46,134,900 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income (loss) | 0 | 0 | -11,294,000 | 0 | -11,294,000 |
Balance at Dec. 31, 2014 | $1,600 | $14,780,100 | $20,563,300 | ($504,100) | $34,840,900 |
Statements_of_Cash_Flows
Statements of Cash Flows (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Operating activities: | ||
Net (loss)/income | ($11,294,000) | $8,343,900 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Net gain on disposal of assets | -3,147,200 | -3,808,200 |
Depreciation | 7,299,000 | 7,363,100 |
Provision for impairment in value of aircraft | 18,736,500 | 0 |
Non-cash interest | 950,100 | 1,113,600 |
Deferred income taxes | -5,952,600 | 4,321,300 |
Changes in operating assets and liabilities: | ||
Accounts receivable | -498,000 | -96,100 |
Finance lease receivable | 1,895,200 | 246,000 |
Income taxes receivable | 0 | 2,000 |
Prepaid expenses and other | 486,700 | -772,400 |
Accounts payable and accrued expenses | -132,400 | -23,400 |
Accrued interest on notes payable | 163,300 | -38,400 |
Maintenance reserves and accrued costs | -1,313,700 | -9,128,800 |
Security deposits | -2,167,700 | -525,200 |
Unearned revenue | 210,200 | -105,700 |
Income taxes payable | 0 | -19,100 |
Net cash provided by operating activities | 5,235,400 | 6,872,600 |
Investing activities: | ||
Proceeds from sale of aircraft and aircraft engines held for lease, net of re-sale fees | 15,854,800 | 10,018,700 |
Proceeds from sale of assets held for sale, net of re-sale fees | 312,100 | 945,100 |
Purchases of aircraft and aircraft engines | -74,529,000 | -24,965,500 |
Net cash used in investing activities | -58,362,100 | -14,001,700 |
Financing activities: | ||
Borrowings under Credit Facility | 71,100,000 | 19,000,000 |
Repayments of Credit Facility | -15,200,000 | -9,300,000 |
Debt issuance costs | -3,045,500 | -2,055,000 |
Net cash provided by financing activities | 52,854,500 | 7,645,000 |
Net (decrease)/increase in cash and cash equivalents | -272,200 | 515,900 |
Cash and cash equivalents, beginning of year | 2,112,700 | 1,596,800 |
Cash and cash equivalents, end of year | $1,840,500 | $2,112,700 |
Statements_of_Cash_Flows_Paren
Statements of Cash Flows (Parenthetical) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Statements of Cash Flows [Abstract] | ||
Interest paid | $4,117,900 | $3,077,100 |
Income taxes paid | $800 | $800 |
Organization_and_Summary_of_Si
Organization and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2014 | |
Organization and Summary of Significant Accounting Policies [Abstract] | |
Organization and Summary of Significant Accounting Policies | 1.Organization and Summary of Significant Accounting Policies |
(a)The Company and Basis of Presentation | |
AeroCentury Corp. ("the Company'), a Delaware corporation incorporated in 1997, typically acquires used regional aircraft and engines for lease to foreign and domestic regional carriers. | |
As discussed in Note 2, during the first quarter of 2014, the Company changed its method of accounting for non-refundable maintenance reserves and certain lessor maintenance obligations. The Company has applied this change in accounting principle retrospectively to all periods presented in accordance with ASC 250, Accounting Changes and Error Corrections (“ASC 250”). | |
(b)Use of Estimates | |
The Company’s financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable for making judgments that are not readily apparent from other sources. | |
The most significant estimates with regard to these financial statements are the residual values and useful lives of the assets, the amount and timing of cash flows associated with each asset that are used to evaluate whether assets are impaired, accrued maintenance costs, accounting for income taxes, and the amounts recorded as allowances for doubtful accounts. | |
(c)Cash and cash equivalents | |
The Company considers highly liquid investments readily convertible into known amounts of cash, with original maturities of 90 days or less from the date of acquisition, as cash equivalents. | |
(d)Aircraft Capitalization and Depreciation | |
The Company’s interests in aircraft and aircraft engines are recorded at cost, which includes acquisition costs. Since inception, the Company has typically purchased only used aircraft and aircraft engines. It is the Company’s policy to hold aircraft for approximately twelve years unless market conditions dictate otherwise. Therefore, depreciation of aircraft is initially computed using the straight-line method over the anticipated holding period, usually twelve years, to an estimated residual value based on appraisal. For an aircraft engine held for lease as a spare, the Company estimates the length of time that it will hold the aircraft engine based upon estimated usage, repair costs and other factors, and depreciates it to the appraised residual value over such period using the straight-line method. | |
The Company periodically reviews plans for lease or sale of its aircraft and aircraft engines and changes, as appropriate, the remaining expected holding period for such assets. Estimated residual values are reviewed and adjusted periodically, based upon updated estimates obtained from an independent appraiser. Decreases in the fair value of aircraft could affect not only the current value, discussed below, but also the estimated residual value. | |
Assets that are held for sale are not subject to depreciation and are separately classified on the balance sheet. Such assets are carried at the lower of their carrying value or estimated fair values, less costs to sell. | |
(e)Fair Value Measurements | |
Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs, to the extent possible. The fair value hierarchy under GAAP is based on three levels of inputs. | |
Level 1 - Quoted prices in active markets for identical assets or liabilities. | |
Level 2 - Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. | |
Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. | |
Assets and Liabilities Measured and Recorded at Fair Value on a Recurring Basis | |
The carrying amount of the Company's money market funds included in cash and cash equivalents was $1,044,300 and $1,842,000 at December 31, 2014 and December 31, 2013. The fair value of the Company's money market funds would be categorized as Level 1 under the GAAP fair value hierarchy. | |
As of December 31, 2014 and December 31, 2013, there were no liabilities that were required to be measured and recorded at fair value on a recurring basis. | |
Assets Measured and Recorded at Fair Value on a Nonrecurring Basis | |
The Company determines fair value of long-lived assets held and used, such as aircraft and aircraft engines held for lease and held for sale, by reference to independent appraisals, quoted market prices (e.g., offers to purchase) and other factors. An impairment charge is recorded when the Company believes that the carrying value of an asset will not be recovered through future net cash flows and that the carrying value exceeds its fair value. | |
During 2014, based on appraised values, the Company recorded impairment charges totaling $3,124,200 for two Fokker 100 aircraft and two Fokker 50 aircraft that are held for lease, resulting in a carrying value of $7,837,300. The fair value of such assets would be categorized as Level 2 under the GAAP fair value hierarchy. No impairments were recorded on the Company's aircraft and aircraft engines held for lease in 2013. | |
During 2014, based on management's estimate of realizable value, the Company recorded impairment charges totaling $15,612,300 for five Fokker 100 aircraft and one Fokker 50 aircraft that are held for sale, resulting in a carrying value of $6,100,000. The fair value of such assets would be categorized as Level 3 under the GAAP fair value hierarchy. No impairments were recorded on the Company's aircraft and aircraft engines held for sale in 2013. | |
Fair Value of Other Financial Instruments | |
The Company’s financial instruments, other than cash and cash equivalents, consist principally of finance leases receivable and amounts borrowed under its credit facility (the “Credit Facility,” as defined in Note 7). The fair value of accounts receivable, finance leases receivable, accounts payable and the Company’s maintenance reserves and accrued maintenance costs approximates the carrying value of these financial instruments. | |
Borrowings under the Company’s Credit Facility bear floating rates of interest that reset periodically to a market benchmark rate plus a credit margin. The Company believes the effective interest rate of this debt agreement approximates current market rates for such indebtedness at the balance sheet date, and therefore that the carrying amount of its floating rate debt at the balance sheet dates approximates its fair value. The fair value of the Company’s outstanding balance of its Credit Facility would be categorized as Level 3 under the GAAP fair value hierarchy. | |
(f)Impairment of Long-lived Assets | |
The Company reviews assets for impairment when there has been an event or a change in circumstances indicating that the carrying amount of a long-lived asset may not be recoverable. In addition, the Company routinely reviews all long-lived assets for impairment annually. Recoverability of an asset is measured by comparison of its carrying amount to the future estimated undiscounted cash flows (without interest charges) that the asset is expected to generate. Estimates are based on currently available market data and independent appraisals and are subject to fluctuation from time to time. If these estimated future cash flows are less than the carrying value of an asset at the time of evaluation, any impairment to be recognized is measured by the amount by which the carrying amount of the asset exceeds its fair value. Fair value is determined by reference to independent appraisals and other factors considered relevant by management. Significant management judgment is required in the forecasting of future operating results that are used in the preparation of estimated future undiscounted cash flows and, if different conditions prevail in the future, material write-downs may occur. As discussed in (e) Fair Value Measurements above, the Company recorded impairment provisions totaling $18,736,500 in 2014. No impairment provisions were recorded in 2013. | |
(g)Deferred Financing Costs and Commitment Fees | |
Costs incurred in connection with debt financing are deferred and amortized over the term of the debt using the effective interest method or, in certain instances where the differences are not material, using the straight-line method. Costs incurred in connection with the Company’s Credit Facility are deferred and amortized using the straight-line method. Commitment fees for unused funds are expensed as incurred. | |
(h)Security deposits | |
The Company’s leases are typically structured so that if any event of default occurs under a lease, the Company may apply all or a portion of the lessee’s security deposit to cure such default. If such application of the security deposit is made, the lessee typically is required to replenish and maintain the full amount of the deposit during the remaining term of the lease. All of the security deposits received by the Company are refundable to the lessee at the end of the lease upon satisfaction of all lease terms. | |
(i)Taxes | |
As part of the process of preparing the Company’s financial statements, management estimates income taxes in each of the jurisdictions in which the Company operates. This process involves estimating the Company’s current tax exposure under the most recent tax laws and assessing temporary differences resulting from differing treatment of items for tax and GAAP purposes. These differences result in deferred tax assets and liabilities, which are included in the balance sheet. Management also assesses the likelihood that the Company’s deferred tax assets will be recovered from future taxable income, and, to the extent management believes it is more likely than not that some portion or all of the deferred tax assets will not be realized, the Company establishes a valuation allowance. To the extent the Company establishes a valuation allowance or changes the allowance in a period, the Company reflects the corresponding increase or decrease within the tax provision in the statement of operations. Significant management judgment is required in determining the Company’s future taxable income for purposes of assessing the Company’s ability to realize any benefit from its deferred taxes. | |
The Company accrues non-income based sales, use, value added and franchise taxes as other tax expense in the statements of operations. | |
(j)Revenue Recognition, Accounts Receivable and Allowance for Doubtful Accounts | |
Revenue from leasing of aircraft assets is recognized as operating lease revenue on a straight-line basis over the terms of the applicable lease agreements. Deferred payments are recorded as accrued rent when the cash rent received is lower than the straight-line revenue recognized. Such receivables decrease over the term of the applicable leases. Interest income is recognized on finance leases based on the interest rate implicit in the lease and the outstanding balance of the lease receivable. Maintenance reserves retained by the Company at lease-end are recognized as maintenance reserves revenue. | |
In instances where collectability is not reasonably assured, the Company recognizes revenue as cash payments are received. The Company estimates and charges to income a provision for bad debts based on its experience with each specific customer, the amount and length of payment arrearages, and its analysis of the lessee’s overall financial condition. If the financial condition of any of the Company’s customers deteriorates, it could result in actual losses exceeding any estimated allowances. | |
The Company had no allowance for doubtful accounts at December 31, 2014 and 2013. | |
(k)Comprehensive (Loss)/Income | |
The Company does not have any comprehensive income other than the revenue and expense items included in the statements of operations. As a result, comprehensive (loss)/income equals net (loss)/income for the years ended December 31, 2014 and 2013. | |
(l)Finance Leases | |
The lease for one of the Company’s aircraft contained a lessee purchase option at a price substantially below the asset's estimated residual value at the exercise date for the option. Consequently, the Company considered the purchase option to be a “bargain purchase option” and classified the lease as a finance lease for financial accounting purposes. The Company does not include the value, purchase price or accumulated depreciation of finance lease assets on its balance sheet. Instead, the discounted present value of (i) future minimum lease payments (including the bargain purchase option) and (ii) any residual value not subject to a bargain purchase option are reported as a finance lease receivable. Rental revenue and depreciation expense are not recognized on finance leases. Rather, the Company accrues interest on the balance of the finance lease receivable based on the interest rate inherent in the applicable lease. The aircraft that was subject to a finance lease was sold to the lessee during 2014. | |
Two engines that were previously subject to finance leases were returned to the Company during 2014 and the finance lease receivable balances were reclassified to aircraft and aircraft engines held for lease on the Company’s balance sheet. | |
The Company recognized interest earned on finance leases as “other income” in the amount of $150,000 and $175,700 in 2014 and 2013, respectively. | |
(m)Recent Accounting Pronouncements | |
On May 28, 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update No. 2014-09 (the "ASU") that created the new Topic 606 in the Accounting Standards Codification ("ASC"). The ASU also included numerous conforming additions and amendments to other Topics within the ASC. Topic 606 establishes new rules that affect the amount and timing of revenue recognition for contracts with customers, but does not affect lease accounting and reporting. As such, adoption of these provisions will not affect the Company's lease revenues but may affect the reporting of other of the Company's revenues. The provisions included in the ASU are effective for years commencing after December 15, 2016, cannot be adopted early, and may be reflected using either a full retrospective method or a simplified method that does not recast prior periods but does disclose the effect of the adoption on the current period financial statements. The Company has not determined either the potential impact on its financial statements nor the method it will elect to use in connection with the adoption of the changes included in the ASU. | |
On August 27, 2014, the FASB issued ASU 2014-15, "Presentation of Financial Statements - Going Concern," which added Subtopic 205-40 to the ASC (the "Subtopic"). This Subtopic requires management to determine whether substantial doubt exists concerning the reporting entity's ability to continue as a going concern, in which case certain disclosures will be required. The Subtopic affects financial statement presentation but not methods of accounting, and is effective on a prospective basis for annual periods ending after December 2016 and each reporting period thereafter, although early adoption is permitted. The Company has not early adopted the Subtopic. |
Change_in_Accounting_Principle
Change in Accounting Principle | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Change in Accounting Principle [Abstract] | |||||||||||||||||
Change in Accounting Principle | 2.Change in Accounting Principle | ||||||||||||||||
The Company previously adopted the direct expensing method under Financial Accounting Standards Board (“FASB”) ASC 908, formerly FASB Staff Position AUG AIR-1, Accounting for Planned Major Maintenance Activities (“FSP AUG AIR-1”) on January 1, 2007. Under FSP AUG AIR-1, non-refundable maintenance reserves were recorded as maintenance reserves revenue (assuming cash was received or collection was reasonably assured), and associated maintenance work was recorded as maintenance expense when the work was performed. During the first quarter of 2014, the Company evaluated its method of accounting for maintenance reserves and lessor maintenance obligations and elected to change its method of accounting to: | |||||||||||||||||
(i) Recognize non-refundable maintenance reserves as liabilities for deposits against future maintenance reimbursements of maintenance reserves received in the normal course of ongoing leases; | |||||||||||||||||
(ii) Recognize reimbursements from such collected reserves as disbursements against the liability when claims are submitted for payment against previously collected maintenance reserves; | |||||||||||||||||
(iii) Reflect as liabilities non-refundable reserves received by the prior lessor upon acquisition of an aircraft, which are claimable by the lessee when maintenance is performed; | |||||||||||||||||
(iv) Recognize as income non-refundable reserves not refunded to lessees upon termination of the lease and return of the aircraft to the Company in accordance with all lease return requirements; and | |||||||||||||||||
(v) Record lessor maintenance obligations as liabilities upon acquisition of an aircraft subject to a lease under which the Company assumes the prior lessor’s obligation to pay a portion of a first-time maintenance event. | |||||||||||||||||
In management’s judgment, the change to this accounting method is preferable in that it will provide the user of the Company’s financial statements a better understanding of the underlying business terms of the Company’s leasing transactions and provide additional clarity with respect to the Company’s sources of income, its non-refundable reserve obligations, and its lessor maintenance obligations. The Company has applied the change in method of accounting for maintenance reserves and lessor maintenance obligations to all prior periods presented within the financial statements in accordance with accounting principles relating to accounting changes. The change in accounting principle resulted in a cumulative net decrease of $8,088,200 in stockholders’ equity as of January 1, 2013. | |||||||||||||||||
The effects on the Company’s balance sheet at December 31, 2013 as a result of the retroactive application of the change in accounting principle in accordance with ASC 250 were as follows: | |||||||||||||||||
31-Dec-13 | |||||||||||||||||
As reported | As adjusted | Effect of change | |||||||||||||||
previously | |||||||||||||||||
Cash and cash equivalents | $ | 2,112,700 | $ | 2,112,700 | $ | - | |||||||||||
Accounts receivable, net | 3,313,700 | 3,303,800 | (9,900 | ) | |||||||||||||
Finance leases receivable | 1,895,200 | 1,895,200 | - | ||||||||||||||
Aircraft and aircraft engines held for lease, net | 152,375,200 | 152,954,600 | 579,400 | ||||||||||||||
Assets held for sale | 735,000 | 735,000 | - | ||||||||||||||
Prepaid expenses and other | 3,633,000 | 3,633,000 | - | ||||||||||||||
Total assets | $ | 164,064,800 | $ | 164,634,300 | $ | 569,500 | |||||||||||
Accounts payable and accrued expenses | $ | 1,175,300 | $ | 1,202,700 | $ | 27,400 | |||||||||||
Notes payable and accrued interest | 77,527,300 | 77,527,300 | - | ||||||||||||||
Maintenance reserves and accrued maintenance costs | 13,254,100 | 18,283,900 | 5,029,800 | ||||||||||||||
Security deposits | 6,265,000 | 6,265,000 | - | ||||||||||||||
Unearned revenues | 646,700 | 646,700 | - | ||||||||||||||
Deferred income taxes | 16,099,700 | 14,573,800 | (1,525,900 | ) | |||||||||||||
Total liabilities | 114,968,100 | 118,499,400 | 3,531,300 | ||||||||||||||
Preferred stock | - | - | - | ||||||||||||||
Common stock | 1,600 | 1,600 | - | ||||||||||||||
Paid-in capital | 14,780,100 | 14,780,100 | - | ||||||||||||||
Retained earnings | 34,819,100 | 31,857,300 | (2,961,800 | ) | |||||||||||||
Treasury stock | (504,100 | ) | (504,100 | ) | - | ||||||||||||
Total stockholders’ equity | 49,096,700 | 46,134,900 | (2,961,800 | ) | |||||||||||||
Total liabilities and stockholders’ equity | $ | 164,064,800 | $ | 164,634,300 | $ | 569,500 | |||||||||||
The effects on the Company’s statement of operations for the year ended December 31, 2013 as a result of the retroactive application of the change in accounting principle in accordance with ASC 250 were as follows: | |||||||||||||||||
For the Year Ended | |||||||||||||||||
December 31, 2013 | |||||||||||||||||
As reported | As adjusted | Effect of | |||||||||||||||
previously | change | ||||||||||||||||
Operating lease revenue, net | $ | 18,794,200 | $ | 18,794,200 | $ | - | |||||||||||
Maintenance reserves income, net | 8,878,300 | 14,910,400 | 6,032,100 | ||||||||||||||
Gain on disposal of assets and other income | 4,527,000 | 4,527,000 | - | ||||||||||||||
32,199,500 | 38,231,600 | 6,032,100 | |||||||||||||||
Maintenance | 8,765,000 | 6,962,400 | (1,802,600 | ) | |||||||||||||
Depreciation | 7,312,500 | 7,363,100 | 50,600 | ||||||||||||||
Management fees | 4,352,400 | 4,369,300 | 16,900 | ||||||||||||||
Interest | 4,075,000 | 4,075,000 | - | ||||||||||||||
Professional fees, general and administrative and other | 1,532,100 | 1,532,100 | - | ||||||||||||||
Insurance | 1,166,400 | 1,166,400 | - | ||||||||||||||
Other taxes | 90,200 | 90,200 | - | ||||||||||||||
27,293,600 | 25,558,500 | (1,735,100 | ) | ||||||||||||||
Income before taxes | 4,905,900 | 12,673,100 | 7,767,200 | ||||||||||||||
Tax provision | 1,688,400 | 4,329,200 | 2,640,800 | ||||||||||||||
Net income | $ | 3,217,500 | $ | 8,343,900 | $ | 5,126,400 | |||||||||||
Earnings per share: | |||||||||||||||||
Basic | $ | 2.08 | $ | 5.41 | $ | 3.33 | |||||||||||
Diluted | $ | 2.03 | $ | 5.26 | $ | 3.23 | |||||||||||
The effects on the Company’s statement of cash flows for the year ended December 31, 2013 as a result of the retroactive application of the change in accounting principle in accordance with ASC 250 were as follows: | |||||||||||||||||
For the Year Ended | |||||||||||||||||
31-Dec-13 | |||||||||||||||||
As reported | As adjusted | Effect of | |||||||||||||||
previously | change | ||||||||||||||||
Operating activities: | |||||||||||||||||
Net income | $ | 3,217,500 | $ | 8,343,900 | $ | 5,126,400 | |||||||||||
Adjustments to reconcile net income to net cash | |||||||||||||||||
provided by operating activities: | |||||||||||||||||
Net gain on disposal of assets | (3,808,200 | ) | (3,808,200 | ) | - | ||||||||||||
Depreciation | 7,312,500 | 7,363,100 | 50,600 | ||||||||||||||
Non-cash interest | 1,113,600 | 1,113,600 | - | ||||||||||||||
Deferred income taxes | 1,680,500 | 4,321,300 | 2,640,800 | ||||||||||||||
Changes in operating assets and liabilities: | |||||||||||||||||
Accounts receivable | (106,000 | ) | (96,100 | ) | 9,900 | ||||||||||||
Finance lease receivable | 246,000 | 246,000 | - | ||||||||||||||
Income taxes receivable | 2,000 | 2,000 | - | ||||||||||||||
Prepaid expenses and other | (772,400 | ) | (772,400 | ) | - | ||||||||||||
Accounts payable and accrued expenses | (40,300 | ) | (23,400 | ) | 16,900 | ||||||||||||
Accrued interest on notes payable | (38,400 | ) | (38,400 | ) | - | ||||||||||||
Maintenance reserves and accrued costs | (1,284,200 | ) | (9,128,800 | ) | (7,844,600 | ) | |||||||||||
Security deposits | (525,200 | ) | (525,200 | ) | - | ||||||||||||
Unearned revenue | (105,700 | ) | (105,700 | ) | - | ||||||||||||
Income taxes payable | (19,100 | ) | (19,100 | ) | - | ||||||||||||
Net cash provided by operating activities | 6,872,600 | 6,872,600 | - | ||||||||||||||
Investing activities: | |||||||||||||||||
Proceeds from sale of aircraft and aircraft | 10,018,700 | 10,018,700 | - | ||||||||||||||
engines held for lease, net of re-sale fees | |||||||||||||||||
Proceeds from sale of assets held for sale, | 945,100 | 945,100 | - | ||||||||||||||
net of re-sale fees | |||||||||||||||||
Purchases of aircraft and aircraft engines | (24,965,500 | ) | (24,965,500 | ) | - | ||||||||||||
Net cash used in investing activities | (14,001,700 | ) | (14,001,700 | ) | - | ||||||||||||
Financing activities: | |||||||||||||||||
Borrowings under Credit Facility | 19,000,000 | 19,000,000 | - | ||||||||||||||
Repayments of Credit Facility | (9,300,000 | ) | (9,300,000 | ) | - | ||||||||||||
Debt issuance costs | (2,055,000 | ) | (2,055,000 | ) | - | ||||||||||||
Net cash provided by financing activities | 7,645,000 | 7,645,000 | - | ||||||||||||||
Net increase in cash and cash equivalents | 515,900 | 515,900 | - | ||||||||||||||
Cash and cash equivalents, beginning of year | 1,596,800 | 1,596,800 | - | ||||||||||||||
Cash and cash equivalents, end of year | $ | 2,112,700 | $ | 2,112,700 | $ | - |
Aircraft_and_Aircraft_Engines_
Aircraft and Aircraft Engines Held for Lease or Sale | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Aircraft and Aircraft Engines Held for Lease or Sale [Abstract] | |||||||||||||||||
Aircraft and Aircraft Engines Held for Lease or Sale | 3.Aircraft and Aircraft Engines Held for Lease or Sale | ||||||||||||||||
(a)Assets Held for Lease | |||||||||||||||||
At December 31, 2014 and December 31, 2013, the Company’s aircraft and aircraft engines, which were on lease or held for lease, consisted of the following: | |||||||||||||||||
31-Dec-14 | 31-Dec-13 | ||||||||||||||||
Number | % of net | Number | % of net | ||||||||||||||
Model | owned | book value | owned | book value | |||||||||||||
Bombardier Dash-8-300 | 8 | 17 | % | 9 | 23 | % | |||||||||||
Bombardier CRJ-700 | 3 | 16 | % | - | - | ||||||||||||
Bombardier CRJ-900 | 2 | 16 | % | - | - | ||||||||||||
Bombardier Dash-8-Q400 | 3 | 13 | % | 3 | 17 | % | |||||||||||
ATR 42-600 | 1 | 9 | % | - | - | ||||||||||||
Bombardier CRJ-705 | 1 | 9 | % | 1 | 12 | % | |||||||||||
Saab 340B Plus | 6 | 7 | % | 6 | 8 | % | |||||||||||
Fokker 50 | 6 | 5 | % | 10 | 10 | % | |||||||||||
General Electric CF34-8E5 engine | 2 | 4 | % | 3 | 6 | % | |||||||||||
Fokker 100 | 2 | 3 | % | 7 | 19 | % | |||||||||||
Saab 340B | 1 | 1 | % | 4 | 4 | % | |||||||||||
Tay 650-15 engine | 1 | - | 1 | 1 | % | ||||||||||||
General Electric CT7-9B engine | 2 | - | 2 | - | |||||||||||||
Saab 340A | - | - | 1 | - | |||||||||||||
Assets subject to finance leases are not included in the net book value of assets held for lease. Therefore, the Company’s single Saab 340A aircraft and two General Electric CT7-9B engines, which were subject to finance leases in 2013, are not included in the net book value calculation as of December 31, 2013. | |||||||||||||||||
During 2014, based on appraised values, the Company recorded impairment charges on assets held for lease totaling $2,906,400 and $217,800 on two Fokker 100 and two Fokker 50 aircraft, respectively. | |||||||||||||||||
During 2014 and 2013, the Company used cash of $74,529,000 and $24,965,500, respectively, for the purchase and capital improvement of aircraft and engines. | |||||||||||||||||
During 2014, the Company recorded net gains totaling $3,147,200 from the sale of three Fokker 50 aircraft, five Saab 340B aircraft, one Bombardier Dash-8-300 aircraft and one General Electric CF34-8E5 engine. During 2013, the Company recorded net gains totaling $4,504,200 from the sale of three Fokker 50 aircraft, a deHavilland DHC-8-100 aircraft, a deHavilland DHC-6 aircraft and a General Electric CT7-9B engine. The Company also leased an engine pursuant to a finance lease in 2013 and recorded a gain of $73,300. In addition, the Company recorded a loss of $769,300 in 2013 on the disposal of a Tay 650-15 engine, which was replaced by one of the Company's spare engines. | |||||||||||||||||
During 2014, the Company extended the leases for nine of its assets and leased two assets that had been off lease at December 31, 2013. | |||||||||||||||||
In May 2014, six Saab 340B Plus aircraft and two General Electric CT7-9B engines were returned by a customer when it ceased operations. Two of the aircraft have been re-leased. | |||||||||||||||||
(a)Assets Held for Lease (continued) | |||||||||||||||||
Ten of the Company’s assets that are held for lease were off lease at December 31, 2014, representing 10% of the net book value of the Company’s aircraft and engines held for lease. Such assets were comprised of four Saab 340B Plus aircraft, one Saab 340B aircraft, and five engines. | |||||||||||||||||
(b)Assets Held for Sale | |||||||||||||||||
Assets held for sale include two Saab 340B airframes, which are being sold in parts, as well as five Fokker 100 aircraft and a Fokker 50 aircraft. | |||||||||||||||||
During 2014 and 2013, the Company received $312,100 and $945,100, respectively, from the sale of parts belonging to the two airframes, which proceeds reduced their carrying value. | |||||||||||||||||
During 2014, the Company recorded impairment charges totaling $15,278,900 and $333,400 related to five Fokker 100 aircraft and one Fokker 50 aircraft, respectively. At December 31, 2014, five of the Fokker 100 aircraft and one of the Fokker 50 aircraft were classified as held for sale on the Company's balance sheet. As discussed in Note 13, the Company sold the Fokker 50 aircraft in March 2015. |
Maintenance_Reserves_and_Accru
Maintenance Reserves and Accrued Maintenance Costs | 12 Months Ended |
Dec. 31, 2014 | |
Maintenance Reserves and Accrued Maintenance Costs [Abstract] | |
Maintenance Reserves and Accrued Maintenance Costs | 4.Maintenance Reserves and Accrued Maintenance Costs |
Maintenance costs under the Company’s triple net leases are generally the responsibility of the lessees. Most of the Company’s leases require payment of maintenance reserves, which are based upon lessee-reported usage and billed monthly, and are intended to accumulate and be applied by the Company toward reimbursement of most or all of the cost of the lessees’ performance of certain maintenance obligations under the leases. Maintenance reserves are characterized as either refundable or non-refundable depending on their disposition at lease-end. The Company retains non-refundable maintenance reserves at lease-end, even if the lessee has met all of its obligations under the lease, including any return conditions applicable to the leased asset, while refundable reserves are returned to the lessee under such circumstances. | |
The liabilities for maintenance reserves in the accompanying balance sheets include both refundable and non-refundable maintenance reserves payments billed to and received from lessees. These amounts are paid out as related maintenance is performed and, in the case of refundable reserves, at the end of the lease. Such payments reduce the associated maintenance reserve liability. Any reserves retained by the Company at lease end are recorded as revenue at that time. | |
Accrued maintenance costs include (i) maintenance for work performed for off-lease aircraft, which is not related to the release of reserves received from lessees and (ii) lessor maintenance obligations assumed upon acquisition of aircraft subject to a lease with such provisions. Maintenance costs are expensed as incurred. |
Operating_Segments
Operating Segments | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Operating Segments [Abstract] | |||||||||
Operating Segments | 5.Operating Segments | ||||||||
The Company operates in one business segment, the leasing of regional aircraft to foreign and domestic regional airlines, and therefore does not present separate segment information for lines of business. | |||||||||
Approximately 18% and 0% of the Company’s operating lease revenue was derived from lessees domiciled in the United States during 2014 and 2013, respectively. All revenues relating to aircraft leased and operated internationally are denominated and payable in U.S. dollars. | |||||||||
The tables below set forth geographic information about the Company’s operating lease revenue for leased aircraft and aircraft equipment, grouped by domicile of the lessee: | |||||||||
For the Years Ended | |||||||||
December 31, | |||||||||
Operating Lease Revenue | 2014 | 2013 | |||||||
North America | $ | 6,423,700 | $ | 1,542,000 | |||||
Africa | 5,183,600 | 5,454,700 | |||||||
Central and South America | 3,533,300 | 4,233,000 | |||||||
Asia | 3,460,400 | 4,149,000 | |||||||
Europe and United Kingdom | 2,952,300 | 3,415,500 | |||||||
Australia | 360,000 | - | |||||||
$ | 21,913,300 | $ | 18,794,200 | ||||||
December 31, | |||||||||
Net Book Value of Aircraft and Aircraft Engines Held for Lease | 2014 | 2013 | |||||||
North America | $ | 65,423,400 | $ | 17,779,000 | |||||
Europe and United Kingdom | 43,468,700 | 20,384,700 | |||||||
Africa | 28,858,200 | 29,951,800 | |||||||
Off lease | 17,106,000 | 34,446,300 | |||||||
Asia | 16,588,900 | 31,068,800 | |||||||
Central and South America | 10,146,100 | 19,324,000 | |||||||
Australia | 5,171,300 | - | |||||||
$ | 186,762,600 | $ | 152,954,600 |
Concentration_of_Credit_Risk
Concentration of Credit Risk | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Concentration of Credit Risk [Abstract] | |||||
Concentration of Credit Risk | 6.Concentration of Credit Risk | ||||
Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash deposits and receivables. The Company places its deposits with financial institutions and other creditworthy issuers and limits the amount of credit exposure to any one party. | |||||
For the year ended December 31, 2014 the Company had four significant customers, which accounted for 20%, 18%, 14% and 11%, respectively, of lease revenue. For the year ended December 31, 2013 the Company had four significant customers, which accounted for 23%, 19%, 11% and 10%, respectively, of lease revenue. | |||||
At December 31, 2014, the Company had receivables from two customers totaling $1,130,000, representing 56% of the Company’s total receivables. The two customers paid the amounts owed in full in early 2015. | |||||
At December 31, 2013, the Company had receivables from two customers totaling $1,231,500, representing 40% of the Company’s total receivables, all of which was paid in 2014. | |||||
As of December 31, 2014, minimum future lease revenue payments receivable under noncancelable leases were as follows: | |||||
Years ending | |||||
2015 | $ | 22,938,700 | |||
2016 | 21,300,400 | ||||
2017 | 17,937,600 | ||||
2018 | 13,719,200 | ||||
2019 | 12,860,000 | ||||
Thereafter | 37,596,300 | ||||
$ | 126,352,200 |
Notes_Payable_and_Accrued_Inte
Notes Payable and Accrued Interest | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Notes Payable and Accrued Interest [Abstract] | |||||||||
Notes Payable and Accrued Interest | 7.Notes Payable and Accrued Interest | ||||||||
At December 31, 2014 and December 31, 2013, the Company’s notes payable and accrued interest consisted of the following: | |||||||||
December 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
Credit Facility principal | $ | 133,400,000 | $ | 77,500,000 | |||||
Credit Facility accrued interest | 190,600 | 27,300 | |||||||
$ | 133,590,600 | $ | 77,527,300 | ||||||
The Company's Credit Facility is provided by a syndicate of banks and is secured by all of the assets of the Company, including its aircraft and engine portfolio. | |||||||||
In November 2013, the Company obtained a waiver of compliance with a customer concentration covenant under its Credit Facility at the September 30, 2013 and December 31, 2013 calculation dates. The Company was in compliance with all covenants other than the waived covenant under the Credit Facility agreement at December 31, 2013. | |||||||||
During May 2014, the Company’s Credit Facility was increased from $130 million to $180 million and extended through May 31, 2019. | |||||||||
The Company was out of compliance with a profitability covenant at June 30, 2014, primarily as a result of the Company recording aircraft impairment charges on aircraft totaling $6,800,000 during the quarter then ended. In August 2014, the Company and the Credit Facility banks agreed to an amendment to the profitability covenant, which cured the June 30, 2014 non-compliance. | |||||||||
The Company was out of compliance with the profitability, interest coverage and debt service coverage covenants at September 30, 2014, resulting primarily from the Company recording additional aircraft impairment charges on aircraft totaling $11,718,700 during the third quarter of 2014. In November 2014, the Company and the Credit Facility banks agreed to an amendment to the Credit Facility, which cured the September 30, 2014 non-compliance, revised the compliance requirements through September 30, 2015, decreased the amount of the Credit Facility to $150 million due to the departure of two participant lenders, and decreased the maximum amount to which the Credit Facility can be expanded from $200 million to $180 million. | |||||||||
The unused amount of the Credit Facility was $16,600,000 and $52,500,000 as of December 31, 2014 and December 31, 2013, respectively. | |||||||||
The weighted average interest rate on the Credit Facility was 3.58% and 3.94% at December 31, 2014 and December 31, 2013, respectively. |
Stockholder_Rights_Plan
Stockholder Rights Plan | 12 Months Ended |
Dec. 31, 2014 | |
Stockholder Rights Plan [Abstract] | |
Stockholder Rights Plan | 8.Stockholder Rights Plan |
In December 2009, the Company’s Board of Directors adopted a stockholder rights plan granting a dividend of one stock purchase right for each share of the Company’s common stock outstanding as of December 18, 2009 and the Company entered into a rights agreement dated December 1, 2009 in connection therewith. The rights become exercisable only upon the occurrence of certain events specified in the rights agreement, including the acquisition of 15% of the Company’s outstanding common stock by a person or group in certain circumstances. Each right allows the holder, other than an “acquiring person,” to purchase one one-hundredth of a share (a unit) of Series A Preferred Stock at an initial purchase price of $97.00 under circumstances described in the rights agreement. The purchase price, the number of units of preferred stock and the type of securities issuable upon exercise of the rights are subject to adjustment. The rights expire at the close of business December 1, 2019 unless earlier redeemed or exchanged. Until a right is exercised, the holder thereof, as such, has no rights as a stockholder of the Company, including the right to vote or to receive dividends. |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Income Taxes [Abstract] | |||||||||
Income Taxes | 9. Income Taxes | ||||||||
The items comprising the income tax provision are as follows: | |||||||||
For the Years Ended December 31, | |||||||||
2014 | 2013 | ||||||||
(As adjusted) | |||||||||
Current tax provision: | |||||||||
Federal | $ | - | $ | - | |||||
State | 800 | 800 | |||||||
Foreign | - | 7,100 | |||||||
Current tax provision | 800 | 7,900 | |||||||
Deferred tax (benefit)/provision: | |||||||||
Federal | (5,854,400 | ) | 4,478,800 | ||||||
State | (98,200 | ) | 1,100 | ||||||
Decrease in valuation allowance | - | (158,600 | ) | ||||||
Deferred tax (benefit)/provision | (5,952,600 | ) | 4,321,300 | ||||||
Total income tax (benefit)/provision | $ | (5,951,800 | ) | $ | 4,329,200 | ||||
Total income tax expense differs from the amount that would be provided by applying the statutory federal income tax rate to pretax earnings as illustrated below: | |||||||||
For the Years Ended | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
(As adjusted) | |||||||||
Income tax (benefit)/provision at statutory federal income tax rate | $ | (5,863,600 | ) | $ | 4,308,900 | ||||
State tax (benefit)/provision, net of federal benefit | (97,500 | ) | 19,400 | ||||||
Prior year withholding tax adjustment | - | 174,600 | |||||||
Decrease in valuation allowance | - | (158,600 | ) | ||||||
Other | 9,300 | (15,100 | ) | ||||||
Total income tax (benefit)/provision | $ | (5,951,800 | ) | $ | 4,329,200 | ||||
Temporary differences and carry-forwards that give rise to a significant portion of deferred tax assets and liabilities as of December 31, 2014 and 2013 were as follows: | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
(As adjusted) | |||||||||
Deferred tax assets: | |||||||||
Maintenance reserves | $ | 2,138,900 | $ | 1,813,900 | |||||
Foreign tax credit carryover | - | 1,210,900 | |||||||
Alternative minimum tax credit | 10,800 | 100,800 | |||||||
Bad debt allowance and other | 961,100 | 490,100 | |||||||
Deferred tax assets | 3,110,800 | 3,615,700 | |||||||
Deferred tax liabilities: | |||||||||
Accumulated depreciation on aircraft and aircraft engines | (10,450,000 | ) | (17,540,000 | ) | |||||
Minimum lease payments receivable | - | (649,500 | ) | ||||||
Deferred income | (1,282,100 | ) | - | ||||||
Net deferred tax liabilities | $ | (8,621,300 | ) | $ | (14,573,800 | ) | |||
All foreign tax credit carryovers were used to offset federal tax expense in 2014. The foreign tax credit carryovers are expected to expire between 2016 and 2022. A significant portion of the alternative minimum tax credit was used to offset federal tax expense in the current year. The remaining alternative minimum tax credit will be available to offset federal tax expense in excess of the alternative minimum tax in future years and does not expire. | |||||||||
At December 31, 2014 and December 31, 2013, the Company had no material uncertain tax positions. | |||||||||
The Company accounts for interest related to uncertain tax positions as interest expense, and for income tax penalties as tax expense. | |||||||||
All of the Company's tax years remain open to examination other than as barred in the various jurisdictions by statutes of limitation. |
Computation_of_Earnings_Per_Sh
Computation of Earnings Per Share | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Computation of Earnings Per Share [Abstract] | |||||||||
Computation of Earnings Per Share | 10.Computation of Earnings Per Share | ||||||||
Basic and diluted earnings per share are calculated as follows: | |||||||||
For the Years Ended | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
(As adjusted) | |||||||||
Net (loss)/income | $ | (11,294,000 | ) | $ | 8,343,900 | ||||
Weighted average shares outstanding for the period | 1,543,257 | 1,543,257 | |||||||
Dilutive effect of warrants | - | 43,779 | |||||||
Weighted average diluted shares used in calculation | 1,543,257 | 1,587,036 | |||||||
of diluted (loss)/earnings per share | |||||||||
Basic (loss)/earnings per share | $ | (7.32 | ) | $ | 5.41 | ||||
Diluted (loss)/earnings per share | $ | (7.32 | ) | $ | 5.26 | ||||
Basic earnings per common share is computed using net income and the weighted average number of common shares outstanding during the period. Diluted earnings per common share are computed using net income and the weighted average number of common shares outstanding, assuming dilution. Weighted average common shares outstanding, assuming dilution, include potentially dilutive common shares outstanding during the period. Potentially dilutive common shares include the assumed exercise of warrants using the treasury stock method. For the year ended December 31, 2014, warrants for 81,224 shares were not included in the calculation of diluted loss per share because the effect would have been anti-dilutive. |
Related_Party_Transactions
Related Party Transactions | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Related Party Transactions [Abstract] | |||||||||
Related Party Transactions | 11. Related Party Transactions | ||||||||
The Company’s portfolio of leased aircraft assets is managed and administered under the terms of a management agreement with JetFleet Management Corp. (“JMC”), which is an integrated aircraft management, marketing and financing business and a subsidiary of JetFleet Holding Corp. ("JHC"). Certain officers of the Company are also officers of JHC and JMC and hold significant ownership positions in both JHC and the Company. | |||||||||
Under the management agreement, JMC receives a monthly management fee based on the net asset value of the assets under management. Such fee, totaling approximately $1,200,000, was waived by JMC for the fourth quarter of 2014. JMC also receives an acquisition fee for locating assets for the Company. Acquisition fees are included in the cost basis of the asset purchased. JMC may receive a remarketing fee in connection with the re-lease or sale of the Company’s assets. Remarketing fees are amortized over the applicable lease term or included in the gain or loss on sale. | |||||||||
Fees incurred during 2014 and 2013 were as follows: | |||||||||
For the Years Ended | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Management fees, net of approximately $1,200,000 | $ | 3,864,900 | $ | 4,369,300 | |||||
of fees waived by JMC in 2014 | |||||||||
Acquisition fees | 2,100,000 | 799,000 | |||||||
Remarketing fees | 64,000 | 589,300 |
Warrants
Warrants | 12 Months Ended |
Dec. 31, 2014 | |
Warrants [Abstract] | |
Warrants | 12.Warrants |
As part of a previous subordinated debt financing, which was fully repaid in December 2011, the Company issued warrants to purchase up to 81,224 shares of the Company’s common stock that are currently exercisable (and expire on December 31, 2015) and represent approximately 5% of the post-exercise fully diluted capitalization of the Company. The exercise price of the warrants is $8.75 per share. |
Subsequent_Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2014 | |
Subsequent Events [Abstract] | |
Subsequent Events | 13.Subsequent Events |
In March 2015, the Company sold a Fokker 50 aircraft that had been classified as held for sale at December 31, 2014 and recorded a gain of approximately $475,000. |
Organization_and_Summary_of_Si1
Organization and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2014 | |
Organization and Summary of Significant Accounting Policies [Abstract] | |
The Company and Basis of Presentation | (a)The Company and Basis of Presentation |
AeroCentury Corp. ("the Company'), a Delaware corporation incorporated in 1997, typically acquires used regional aircraft and engines for lease to foreign and domestic regional carriers. | |
As discussed in Note 2, during the first quarter of 2014, the Company changed its method of accounting for non-refundable maintenance reserves and certain lessor maintenance obligations. The Company has applied this change in accounting principle retrospectively to all periods presented in accordance with ASC 250, Accounting Changes and Error Corrections (“ASC 250”). | |
Use of Estimates | (b)Use of Estimates |
The Company’s financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable for making judgments that are not readily apparent from other sources. | |
The most significant estimates with regard to these financial statements are the residual values and useful lives of the assets, the amount and timing of cash flows associated with each asset that are used to evaluate whether assets are impaired, accrued maintenance costs, accounting for income taxes, and the amounts recorded as allowances for doubtful accounts. | |
Cash and Cash Equivalents | (c)Cash and cash equivalents |
The Company considers highly liquid investments readily convertible into known amounts of cash, with original maturities of 90 days or less from the date of acquisition, as cash equivalents. | |
Aircraft Capitalization and Depreciation | (d)Aircraft Capitalization and Depreciation |
The Company’s interests in aircraft and aircraft engines are recorded at cost, which includes acquisition costs. Since inception, the Company has typically purchased only used aircraft and aircraft engines. It is the Company’s policy to hold aircraft for approximately twelve years unless market conditions dictate otherwise. Therefore, depreciation of aircraft is initially computed using the straight-line method over the anticipated holding period, usually twelve years, to an estimated residual value based on appraisal. For an aircraft engine held for lease as a spare, the Company estimates the length of time that it will hold the aircraft engine based upon estimated usage, repair costs and other factors, and depreciates it to the appraised residual value over such period using the straight-line method. | |
The Company periodically reviews plans for lease or sale of its aircraft and aircraft engines and changes, as appropriate, the remaining expected holding period for such assets. Estimated residual values are reviewed and adjusted periodically, based upon updated estimates obtained from an independent appraiser. Decreases in the fair value of aircraft could affect not only the current value, discussed below, but also the estimated residual value. | |
Assets that are held for sale are not subject to depreciation and are separately classified on the balance sheet. Such assets are carried at the lower of their carrying value or estimated fair values, less costs to sell. | |
Fair Value Measurements | (e)Fair Value Measurements |
Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs, to the extent possible. The fair value hierarchy under GAAP is based on three levels of inputs. | |
Level 1 - Quoted prices in active markets for identical assets or liabilities. | |
Level 2 - Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. | |
Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. | |
Assets and Liabilities Measured and Recorded at Fair Value on a Recurring Basis | |
The carrying amount of the Company's money market funds included in cash and cash equivalents was $1,044,300 and $1,842,000 at December 31, 2014 and December 31, 2013. The fair value of the Company's money market funds would be categorized as Level 1 under the GAAP fair value hierarchy. | |
As of December 31, 2014 and December 31, 2013, there were no liabilities that were required to be measured and recorded at fair value on a recurring basis. | |
Assets Measured and Recorded at Fair Value on a Nonrecurring Basis | |
The Company determines fair value of long-lived assets held and used, such as aircraft and aircraft engines held for lease and held for sale, by reference to independent appraisals, quoted market prices (e.g., offers to purchase) and other factors. An impairment charge is recorded when the Company believes that the carrying value of an asset will not be recovered through future net cash flows and that the carrying value exceeds its fair value. | |
During 2014, based on appraised values, the Company recorded impairment charges totaling $3,124,200 for two Fokker 100 aircraft and two Fokker 50 aircraft that are held for lease, resulting in a carrying value of $7,837,300. The fair value of such assets would be categorized as Level 2 under the GAAP fair value hierarchy. No impairments were recorded on the Company's aircraft and aircraft engines held for lease in 2013. | |
During 2014, based on management's estimate of realizable value, the Company recorded impairment charges totaling $15,612,300 for five Fokker 100 aircraft and one Fokker 50 aircraft that are held for sale, resulting in a carrying value of $6,100,000. The fair value of such assets would be categorized as Level 3 under the GAAP fair value hierarchy. No impairments were recorded on the Company's aircraft and aircraft engines held for sale in 2013. | |
Fair Value of Other Financial Instruments | |
The Company’s financial instruments, other than cash and cash equivalents, consist principally of finance leases receivable and amounts borrowed under its credit facility (the “Credit Facility,” as defined in Note 7). The fair value of accounts receivable, finance leases receivable, accounts payable and the Company’s maintenance reserves and accrued maintenance costs approximates the carrying value of these financial instruments. | |
Borrowings under the Company’s Credit Facility bear floating rates of interest that reset periodically to a market benchmark rate plus a credit margin. The Company believes the effective interest rate of this debt agreement approximates current market rates for such indebtedness at the balance sheet date, and therefore that the carrying amount of its floating rate debt at the balance sheet dates approximates its fair value. The fair value of the Company’s outstanding balance of its Credit Facility would be categorized as Level 3 under the GAAP fair value hierarchy. | |
Impairment of Long-lived Assets | (f)Impairment of Long-lived Assets |
The Company reviews assets for impairment when there has been an event or a change in circumstances indicating that the carrying amount of a long-lived asset may not be recoverable. In addition, the Company routinely reviews all long-lived assets for impairment annually. Recoverability of an asset is measured by comparison of its carrying amount to the future estimated undiscounted cash flows (without interest charges) that the asset is expected to generate. Estimates are based on currently available market data and independent appraisals and are subject to fluctuation from time to time. If these estimated future cash flows are less than the carrying value of an asset at the time of evaluation, any impairment to be recognized is measured by the amount by which the carrying amount of the asset exceeds its fair value. Fair value is determined by reference to independent appraisals and other factors considered relevant by management. Significant management judgment is required in the forecasting of future operating results that are used in the preparation of estimated future undiscounted cash flows and, if different conditions prevail in the future, material write-downs may occur. As discussed in (e) Fair Value Measurements above, the Company recorded impairment provisions totaling $18,736,500 in 2014. No impairment provisions were recorded in 2013. | |
Deferred Financing Costs and Commitment Fees | (g)Deferred Financing Costs and Commitment Fees |
Costs incurred in connection with debt financing are deferred and amortized over the term of the debt using the effective interest method or, in certain instances where the differences are not material, using the straight-line method. Costs incurred in connection with the Company’s Credit Facility are deferred and amortized using the straight-line method. Commitment fees for unused funds are expensed as incurred. | |
Security deposits | (h)Security deposits |
The Company’s leases are typically structured so that if any event of default occurs under a lease, the Company may apply all or a portion of the lessee’s security deposit to cure such default. If such application of the security deposit is made, the lessee typically is required to replenish and maintain the full amount of the deposit during the remaining term of the lease. All of the security deposits received by the Company are refundable to the lessee at the end of the lease upon satisfaction of all lease terms. | |
Taxes | (i)Taxes |
As part of the process of preparing the Company’s financial statements, management estimates income taxes in each of the jurisdictions in which the Company operates. This process involves estimating the Company’s current tax exposure under the most recent tax laws and assessing temporary differences resulting from differing treatment of items for tax and GAAP purposes. These differences result in deferred tax assets and liabilities, which are included in the balance sheet. Management also assesses the likelihood that the Company’s deferred tax assets will be recovered from future taxable income, and, to the extent management believes it is more likely than not that some portion or all of the deferred tax assets will not be realized, the Company establishes a valuation allowance. To the extent the Company establishes a valuation allowance or changes the allowance in a period, the Company reflects the corresponding increase or decrease within the tax provision in the statement of operations. Significant management judgment is required in determining the Company’s future taxable income for purposes of assessing the Company’s ability to realize any benefit from its deferred taxes. | |
The Company accrues non-income based sales, use, value added and franchise taxes as other tax expense in the statements of operations. | |
Revenue Recognition, Accounts Receivable and Allowance for Doubtful Accounts | (j)Revenue Recognition, Accounts Receivable and Allowance for Doubtful Accounts |
Revenue from leasing of aircraft assets is recognized as operating lease revenue on a straight-line basis over the terms of the applicable lease agreements. Deferred payments are recorded as accrued rent when the cash rent received is lower than the straight-line revenue recognized. Such receivables decrease over the term of the applicable leases. Interest income is recognized on finance leases based on the interest rate implicit in the lease and the outstanding balance of the lease receivable. Maintenance reserves retained by the Company at lease-end are recognized as maintenance reserves revenue. | |
In instances where collectability is not reasonably assured, the Company recognizes revenue as cash payments are received. The Company estimates and charges to income a provision for bad debts based on its experience with each specific customer, the amount and length of payment arrearages, and its analysis of the lessee’s overall financial condition. If the financial condition of any of the Company’s customers deteriorates, it could result in actual losses exceeding any estimated allowances. | |
The Company had no allowance for doubtful accounts at December 31, 2014 and 2013. | |
Comprehensive (Loss)/Income | (k)Comprehensive (Loss)/Income |
The Company does not have any comprehensive income other than the revenue and expense items included in the statements of operations. As a result, comprehensive (loss)/income equals net (loss)/income for the years ended December 31, 2014 and 2013. | |
Finance Leases | (l)Finance Leases |
The lease for one of the Company’s aircraft contained a lessee purchase option at a price substantially below the asset's estimated residual value at the exercise date for the option. Consequently, the Company considered the purchase option to be a “bargain purchase option” and classified the lease as a finance lease for financial accounting purposes. The Company does not include the value, purchase price or accumulated depreciation of finance lease assets on its balance sheet. Instead, the discounted present value of (i) future minimum lease payments (including the bargain purchase option) and (ii) any residual value not subject to a bargain purchase option are reported as a finance lease receivable. Rental revenue and depreciation expense are not recognized on finance leases. Rather, the Company accrues interest on the balance of the finance lease receivable based on the interest rate inherent in the applicable lease. The aircraft that was subject to a finance lease was sold to the lessee during 2014. | |
Two engines that were previously subject to finance leases were returned to the Company during 2014 and the finance lease receivable balances were reclassified to aircraft and aircraft engines held for lease on the Company’s balance sheet. | |
The Company recognized interest earned on finance leases as “other income” in the amount of $150,000 and $175,700 in 2014 and 2013, respectively. | |
Recent Accounting Pronouncements | (m)Recent Accounting Pronouncements |
On May 28, 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update No. 2014-09 (the "ASU") that created the new Topic 606 in the Accounting Standards Codification ("ASC"). The ASU also included numerous conforming additions and amendments to other Topics within the ASC. Topic 606 establishes new rules that affect the amount and timing of revenue recognition for contracts with customers, but does not affect lease accounting and reporting. As such, adoption of these provisions will not affect the Company's lease revenues but may affect the reporting of other of the Company's revenues. The provisions included in the ASU are effective for years commencing after December 15, 2016, cannot be adopted early, and may be reflected using either a full retrospective method or a simplified method that does not recast prior periods but does disclose the effect of the adoption on the current period financial statements. The Company has not determined either the potential impact on its financial statements nor the method it will elect to use in connection with the adoption of the changes included in the ASU. | |
On August 27, 2014, the FASB issued ASU 2014-15, "Presentation of Financial Statements - Going Concern," which added Subtopic 205-40 to the ASC (the "Subtopic"). This Subtopic requires management to determine whether substantial doubt exists concerning the reporting entity's ability to continue as a going concern, in which case certain disclosures will be required. The Subtopic affects financial statement presentation but not methods of accounting, and is effective on a prospective basis for annual periods ending after December 2016 and each reporting period thereafter, although early adoption is permitted. The Company has not early adopted the Subtopic. |
Change_in_Accounting_Principle1
Change in Accounting Principle (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Change in Accounting Principle [Abstract] | |||||||||||||||||
Schedule of Error Corrections and Prior Period Adjustments | The effects on the Company’s balance sheet at December 31, 2013 as a result of the retroactive application of the change in accounting principle in accordance with ASC 250 were as follows: | ||||||||||||||||
31-Dec-13 | |||||||||||||||||
As reported | As adjusted | Effect of change | |||||||||||||||
previously | |||||||||||||||||
Cash and cash equivalents | $ | 2,112,700 | $ | 2,112,700 | $ | - | |||||||||||
Accounts receivable, net | 3,313,700 | 3,303,800 | (9,900 | ) | |||||||||||||
Finance leases receivable | 1,895,200 | 1,895,200 | - | ||||||||||||||
Aircraft and aircraft engines held for lease, net | 152,375,200 | 152,954,600 | 579,400 | ||||||||||||||
Assets held for sale | 735,000 | 735,000 | - | ||||||||||||||
Prepaid expenses and other | 3,633,000 | 3,633,000 | - | ||||||||||||||
Total assets | $ | 164,064,800 | $ | 164,634,300 | $ | 569,500 | |||||||||||
Accounts payable and accrued expenses | $ | 1,175,300 | $ | 1,202,700 | $ | 27,400 | |||||||||||
Notes payable and accrued interest | 77,527,300 | 77,527,300 | - | ||||||||||||||
Maintenance reserves and accrued maintenance costs | 13,254,100 | 18,283,900 | 5,029,800 | ||||||||||||||
Security deposits | 6,265,000 | 6,265,000 | - | ||||||||||||||
Unearned revenues | 646,700 | 646,700 | - | ||||||||||||||
Deferred income taxes | 16,099,700 | 14,573,800 | (1,525,900 | ) | |||||||||||||
Total liabilities | 114,968,100 | 118,499,400 | 3,531,300 | ||||||||||||||
Preferred stock | - | - | - | ||||||||||||||
Common stock | 1,600 | 1,600 | - | ||||||||||||||
Paid-in capital | 14,780,100 | 14,780,100 | - | ||||||||||||||
Retained earnings | 34,819,100 | 31,857,300 | (2,961,800 | ) | |||||||||||||
Treasury stock | (504,100 | ) | (504,100 | ) | - | ||||||||||||
Total stockholders’ equity | 49,096,700 | 46,134,900 | (2,961,800 | ) | |||||||||||||
Total liabilities and stockholders’ equity | $ | 164,064,800 | $ | 164,634,300 | $ | 569,500 | |||||||||||
The effects on the Company’s statement of operations for the year ended December 31, 2013 as a result of the retroactive application of the change in accounting principle in accordance with ASC 250 were as follows: | |||||||||||||||||
For the Year Ended | |||||||||||||||||
December 31, 2013 | |||||||||||||||||
As reported | As adjusted | Effect of | |||||||||||||||
previously | change | ||||||||||||||||
Operating lease revenue, net | $ | 18,794,200 | $ | 18,794,200 | $ | - | |||||||||||
Maintenance reserves income, net | 8,878,300 | 14,910,400 | 6,032,100 | ||||||||||||||
Gain on disposal of assets and other income | 4,527,000 | 4,527,000 | - | ||||||||||||||
32,199,500 | 38,231,600 | 6,032,100 | |||||||||||||||
Maintenance | 8,765,000 | 6,962,400 | (1,802,600 | ) | |||||||||||||
Depreciation | 7,312,500 | 7,363,100 | 50,600 | ||||||||||||||
Management fees | 4,352,400 | 4,369,300 | 16,900 | ||||||||||||||
Interest | 4,075,000 | 4,075,000 | - | ||||||||||||||
Professional fees, general and administrative and other | 1,532,100 | 1,532,100 | - | ||||||||||||||
Insurance | 1,166,400 | 1,166,400 | - | ||||||||||||||
Other taxes | 90,200 | 90,200 | - | ||||||||||||||
27,293,600 | 25,558,500 | (1,735,100 | ) | ||||||||||||||
Income before taxes | 4,905,900 | 12,673,100 | 7,767,200 | ||||||||||||||
Tax provision | 1,688,400 | 4,329,200 | 2,640,800 | ||||||||||||||
Net income | $ | 3,217,500 | $ | 8,343,900 | $ | 5,126,400 | |||||||||||
Earnings per share: | |||||||||||||||||
Basic | $ | 2.08 | $ | 5.41 | $ | 3.33 | |||||||||||
Diluted | $ | 2.03 | $ | 5.26 | $ | 3.23 | |||||||||||
The effects on the Company’s statement of cash flows for the year ended December 31, 2013 as a result of the retroactive application of the change in accounting principle in accordance with ASC 250 were as follows: | |||||||||||||||||
For the Year Ended | |||||||||||||||||
31-Dec-13 | |||||||||||||||||
As reported | As adjusted | Effect of | |||||||||||||||
previously | change | ||||||||||||||||
Operating activities: | |||||||||||||||||
Net income | $ | 3,217,500 | $ | 8,343,900 | $ | 5,126,400 | |||||||||||
Adjustments to reconcile net income to net cash | |||||||||||||||||
provided by operating activities: | |||||||||||||||||
Net gain on disposal of assets | (3,808,200 | ) | (3,808,200 | ) | - | ||||||||||||
Depreciation | 7,312,500 | 7,363,100 | 50,600 | ||||||||||||||
Non-cash interest | 1,113,600 | 1,113,600 | - | ||||||||||||||
Deferred income taxes | 1,680,500 | 4,321,300 | 2,640,800 | ||||||||||||||
Changes in operating assets and liabilities: | |||||||||||||||||
Accounts receivable | (106,000 | ) | (96,100 | ) | 9,900 | ||||||||||||
Finance lease receivable | 246,000 | 246,000 | - | ||||||||||||||
Income taxes receivable | 2,000 | 2,000 | - | ||||||||||||||
Prepaid expenses and other | (772,400 | ) | (772,400 | ) | - | ||||||||||||
Accounts payable and accrued expenses | (40,300 | ) | (23,400 | ) | 16,900 | ||||||||||||
Accrued interest on notes payable | (38,400 | ) | (38,400 | ) | - | ||||||||||||
Maintenance reserves and accrued costs | (1,284,200 | ) | (9,128,800 | ) | (7,844,600 | ) | |||||||||||
Security deposits | (525,200 | ) | (525,200 | ) | - | ||||||||||||
Unearned revenue | (105,700 | ) | (105,700 | ) | - | ||||||||||||
Income taxes payable | (19,100 | ) | (19,100 | ) | - | ||||||||||||
Net cash provided by operating activities | 6,872,600 | 6,872,600 | - | ||||||||||||||
Investing activities: | |||||||||||||||||
Proceeds from sale of aircraft and aircraft | 10,018,700 | 10,018,700 | - | ||||||||||||||
engines held for lease, net of re-sale fees | |||||||||||||||||
Proceeds from sale of assets held for sale, | 945,100 | 945,100 | - | ||||||||||||||
net of re-sale fees | |||||||||||||||||
Purchases of aircraft and aircraft engines | (24,965,500 | ) | (24,965,500 | ) | - | ||||||||||||
Net cash used in investing activities | (14,001,700 | ) | (14,001,700 | ) | - | ||||||||||||
Financing activities: | |||||||||||||||||
Borrowings under Credit Facility | 19,000,000 | 19,000,000 | - | ||||||||||||||
Repayments of Credit Facility | (9,300,000 | ) | (9,300,000 | ) | - | ||||||||||||
Debt issuance costs | (2,055,000 | ) | (2,055,000 | ) | - | ||||||||||||
Net cash provided by financing activities | 7,645,000 | 7,645,000 | - | ||||||||||||||
Net increase in cash and cash equivalents | 515,900 | 515,900 | - | ||||||||||||||
Cash and cash equivalents, beginning of year | 1,596,800 | 1,596,800 | - | ||||||||||||||
Cash and cash equivalents, end of year | $ | 2,112,700 | $ | 2,112,700 | $ | - |
Aircraft_and_Aircraft_Engines_1
Aircraft and Aircraft Engines Held for Lease or Sale (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Aircraft and Aircraft Engines Held for Lease or Sale [Abstract] | |||||||||||||||||
Aircraft and aircraft engines held for lease | At December 31, 2014 and December 31, 2013, the Company’s aircraft and aircraft engines, which were on lease or held for lease, consisted of the following: | ||||||||||||||||
31-Dec-14 | 31-Dec-13 | ||||||||||||||||
Number | % of net | Number | % of net | ||||||||||||||
Model | owned | book value | owned | book value | |||||||||||||
Bombardier Dash-8-300 | 8 | 17 | % | 9 | 23 | % | |||||||||||
Bombardier CRJ-700 | 3 | 16 | % | - | - | ||||||||||||
Bombardier CRJ-900 | 2 | 16 | % | - | - | ||||||||||||
Bombardier Dash-8-Q400 | 3 | 13 | % | 3 | 17 | % | |||||||||||
ATR 42-600 | 1 | 9 | % | - | - | ||||||||||||
Bombardier CRJ-705 | 1 | 9 | % | 1 | 12 | % | |||||||||||
Saab 340B Plus | 6 | 7 | % | 6 | 8 | % | |||||||||||
Fokker 50 | 6 | 5 | % | 10 | 10 | % | |||||||||||
General Electric CF34-8E5 engine | 2 | 4 | % | 3 | 6 | % | |||||||||||
Fokker 100 | 2 | 3 | % | 7 | 19 | % | |||||||||||
Saab 340B | 1 | 1 | % | 4 | 4 | % | |||||||||||
Tay 650-15 engine | 1 | - | 1 | 1 | % | ||||||||||||
General Electric CT7-9B engine | 2 | - | 2 | - | |||||||||||||
Saab 340A | - | - | 1 | - |
Operating_Segments_Tables
Operating Segments (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Operating Segments [Abstract] | |||||||||
Geographic information of operating lease revenue | The tables below set forth geographic information about the Company’s operating lease revenue for leased aircraft and aircraft equipment, grouped by domicile of the lessee: | ||||||||
For the Years Ended | |||||||||
December 31, | |||||||||
Operating Lease Revenue | 2014 | 2013 | |||||||
North America | $ | 6,423,700 | $ | 1,542,000 | |||||
Africa | 5,183,600 | 5,454,700 | |||||||
Central and South America | 3,533,300 | 4,233,000 | |||||||
Asia | 3,460,400 | 4,149,000 | |||||||
Europe and United Kingdom | 2,952,300 | 3,415,500 | |||||||
Australia | 360,000 | - | |||||||
$ | 21,913,300 | $ | 18,794,200 | ||||||
Net book value of aircraft and aircraft engines held for lease | December 31, | ||||||||
Net Book Value of Aircraft and Aircraft Engines Held for Lease | 2014 | 2013 | |||||||
North America | $ | 65,423,400 | $ | 17,779,000 | |||||
Europe and United Kingdom | 43,468,700 | 20,384,700 | |||||||
Africa | 28,858,200 | 29,951,800 | |||||||
Off lease | 17,106,000 | 34,446,300 | |||||||
Asia | 16,588,900 | 31,068,800 | |||||||
Central and South America | 10,146,100 | 19,324,000 | |||||||
Australia | 5,171,300 | - | |||||||
$ | 186,762,600 | $ | 152,954,600 |
Concentration_of_Credit_Risk_T
Concentration of Credit Risk (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Concentration of Credit Risk [Abstract] | |||||
Future minimum lease payments receivable under noncancelable leases | As of December 31, 2014, minimum future lease revenue payments receivable under noncancelable leases were as follows: | ||||
Years ending | |||||
2015 | $ | 22,938,700 | |||
2016 | 21,300,400 | ||||
2017 | 17,937,600 | ||||
2018 | 13,719,200 | ||||
2019 | 12,860,000 | ||||
Thereafter | 37,596,300 | ||||
$ | 126,352,200 |
Notes_Payable_and_Accrued_Inte1
Notes Payable and Accrued Interest (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Notes Payable and Accrued Interest [Abstract] | |||||||||
Notes payable and accrued interest | At December 31, 2014 and December 31, 2013, the Company’s notes payable and accrued interest consisted of the following: | ||||||||
December 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
Credit Facility principal | $ | 133,400,000 | $ | 77,500,000 | |||||
Credit Facility accrued interest | 190,600 | 27,300 | |||||||
$ | 133,590,600 | $ | 77,527,300 |
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Income Taxes [Abstract] | |||||||||
Income tax provision | The items comprising the income tax provision are as follows: | ||||||||
For the Years Ended December 31, | |||||||||
2014 | 2013 | ||||||||
(As adjusted) | |||||||||
Current tax provision: | |||||||||
Federal | $ | - | $ | - | |||||
State | 800 | 800 | |||||||
Foreign | - | 7,100 | |||||||
Current tax provision | 800 | 7,900 | |||||||
Deferred tax (benefit)/provision: | |||||||||
Federal | (5,854,400 | ) | 4,478,800 | ||||||
State | (98,200 | ) | 1,100 | ||||||
Decrease in valuation allowance | - | (158,600 | ) | ||||||
Deferred tax (benefit)/provision | (5,952,600 | ) | 4,321,300 | ||||||
Total income tax (benefit)/provision | $ | (5,951,800 | ) | $ | 4,329,200 | ||||
Income tax reconciliation | Total income tax expense differs from the amount that would be provided by applying the statutory federal income tax rate to pretax earnings as illustrated below: | ||||||||
For the Years Ended | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
(As adjusted) | |||||||||
Income tax (benefit)/provision at statutory federal income tax rate | $ | (5,863,600 | ) | $ | 4,308,900 | ||||
State tax (benefit)/provision, net of federal benefit | (97,500 | ) | 19,400 | ||||||
Prior year withholding tax adjustment | - | 174,600 | |||||||
Decrease in valuation allowance | - | (158,600 | ) | ||||||
Other | 9,300 | (15,100 | ) | ||||||
Total income tax (benefit)/provision | $ | (5,951,800 | ) | $ | 4,329,200 | ||||
Deferred tax assets and liabilities | Temporary differences and carry-forwards that give rise to a significant portion of deferred tax assets and liabilities as of December 31, 2014 and 2013 were as follows: | ||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
(As adjusted) | |||||||||
Deferred tax assets: | |||||||||
Maintenance reserves | $ | 2,138,900 | $ | 1,813,900 | |||||
Foreign tax credit carryover | - | 1,210,900 | |||||||
Alternative minimum tax credit | 10,800 | 100,800 | |||||||
Bad debt allowance and other | 961,100 | 490,100 | |||||||
Deferred tax assets | 3,110,800 | 3,615,700 | |||||||
Deferred tax liabilities: | |||||||||
Accumulated depreciation on aircraft and aircraft engines | (10,450,000 | ) | (17,540,000 | ) | |||||
Minimum lease payments receivable | - | (649,500 | ) | ||||||
Deferred income | (1,282,100 | ) | - | ||||||
Net deferred tax liabilities | $ | (8,621,300 | ) | $ | (14,573,800 | ) |
Computation_of_Earnings_Per_Sh1
Computation of Earnings Per Share (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Computation of Earnings Per Share [Abstract] | |||||||||
Computation of earnings per share | Basic and diluted earnings per share are calculated as follows: | ||||||||
For the Years Ended | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
(As adjusted) | |||||||||
Net (loss)/income | $ | (11,294,000 | ) | $ | 8,343,900 | ||||
Weighted average shares outstanding for the period | 1,543,257 | 1,543,257 | |||||||
Dilutive effect of warrants | - | 43,779 | |||||||
Weighted average diluted shares used in calculation | 1,543,257 | 1,587,036 | |||||||
of diluted (loss)/earnings per share | |||||||||
Basic (loss)/earnings per share | $ | (7.32 | ) | $ | 5.41 | ||||
Diluted (loss)/earnings per share | $ | (7.32 | ) | $ | 5.26 |
Related_Party_Transactions_Tab
Related Party Transactions (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Related Party Transactions [Abstract] | |||||||||
Related party fees | Fees incurred during 2014 and 2013 were as follows: | ||||||||
For the Years Ended | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Management fees, net of approximately $1,200,000 | $ | 3,864,900 | $ | 4,369,300 | |||||
of fees waived by JMC in 2014 | |||||||||
Acquisition fees | 2,100,000 | 799,000 | |||||||
Remarketing fees | 64,000 | 589,300 |
Organization_and_Summary_of_Si2
Organization and Summary of Significant Accounting Policies (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | |
Aircraft Capitalization and Depreciation [Abstract] | ||||
Aircraft useful life | 12 years | |||
Property Subject to or Available for Operating Lease [Line Items] | ||||
Impairment charge | $11,718,700 | $6,800,000 | $18,736,500 | $0 |
Aircraft and aircraft engines held for lease, net | 186,762,600 | 152,954,600 | ||
Impairment of Long-lived Assets [Abstract] | ||||
Provision for impairment in value of aircraft | 11,718,700 | 6,800,000 | 18,736,500 | 0 |
Revenue Recognition, Accounts Receivable and Allowance for Doubtful Accounts [Abstract] | ||||
Allowance for doubtful accounts | 0 | 0 | ||
Finance Leases [Abstract] | ||||
Interest earned on finance lease | 150,000 | 175,700 | ||
Fokker 100 [Member] | ||||
Property Subject to or Available for Operating Lease [Line Items] | ||||
Impairment charge | 15,278,900 | |||
Number of aircraft held for lease | 2 | |||
Number of aircraft held for sale | 5 | |||
Impairment of Long-lived Assets [Abstract] | ||||
Provision for impairment in value of aircraft | 15,278,900 | |||
Fokker 50 [Member] | ||||
Property Subject to or Available for Operating Lease [Line Items] | ||||
Impairment charge | 333,400 | |||
Number of aircraft held for lease | 2 | |||
Number of aircraft held for sale | 1 | 1 | ||
Impairment of Long-lived Assets [Abstract] | ||||
Provision for impairment in value of aircraft | 333,400 | |||
Fokker 100 and Fokker 50 [Member] | Held-for-sale [Member] | ||||
Property Subject to or Available for Operating Lease [Line Items] | ||||
Impairment charge | 15,612,300 | 0 | ||
Aircraft and aircraft engines held for lease, net | 6,100,000 | |||
Impairment of Long-lived Assets [Abstract] | ||||
Provision for impairment in value of aircraft | 15,612,300 | 0 | ||
Fokker 100 and Fokker 50 [Member] | Held-for-lease [Member] | ||||
Property Subject to or Available for Operating Lease [Line Items] | ||||
Impairment charge | 3,124,200 | 0 | ||
Aircraft and aircraft engines held for lease, net | 7,837,300 | |||
Impairment of Long-lived Assets [Abstract] | ||||
Provision for impairment in value of aircraft | 3,124,200 | 0 | ||
Saab 340B [Member] | ||||
Property Subject to or Available for Operating Lease [Line Items] | ||||
Number of aircraft held for sale | 2 | |||
Recurring [Member] | ||||
Assets and Liabilities Measured and Recorded at Fair Value on a Recurring Basis [Abstract] | ||||
Money market funds included in cash and cash equivalents | 1,044,300 | 1,842,000 | ||
Liabilities recorded at fair value | $0 | $0 |
Change_in_Accounting_Principle2
Change in Accounting Principle (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Jan. 31, 2013 | Dec. 31, 2012 | |
Balance Sheets [Abstract] | ||||
Cash and cash equivalents | $1,840,500 | $2,112,700 | ||
Accounts receivable, net | 2,128,600 | 3,303,800 | ||
Finance leases receivable | 0 | 1,895,200 | ||
Aircraft and aircraft engines held for lease, net | 186,762,600 | 152,954,600 | ||
Assets held for sale | 6,522,900 | 735,000 | ||
Prepaid expenses and other | 4,520,300 | 3,633,000 | ||
Total assets | 201,774,900 | 164,634,300 | ||
Accounts payable and accrued expenses | 2,818,200 | 1,202,700 | ||
Notes payable and accrued interest | 133,590,600 | 77,527,300 | ||
Security deposits | 5,218,300 | 6,265,000 | ||
Unearned revenues | 1,642,200 | 646,700 | ||
Deferred income taxes | 8,621,300 | 14,573,800 | ||
Total liabilities | 166,934,000 | 118,499,400 | ||
Preferred stock | 0 | 0 | ||
Common stock | 1,600 | 1,600 | ||
Paid-in capital | 14,780,100 | 14,780,100 | ||
Retained earnings | 20,563,300 | 31,857,300 | ||
Treasury stock | -504,100 | -504,100 | ||
Total stockholders' equity | 34,840,900 | 46,134,900 | 37,791,000 | |
Total liabilities and stockholders' equity | 201,774,900 | 164,634,300 | ||
Statement of Operations [Abstract] | ||||
Operating lease revenue, net | 21,913,300 | 18,794,200 | ||
Maintenance reserves income, net | 3,393,600 | 14,910,400 | ||
Total Income | 28,706,500 | 38,231,600 | ||
Maintenance | 7,478,400 | 6,962,400 | ||
Depreciation | 7,299,000 | 7,363,100 | ||
Management fees | 3,864,900 | 4,369,300 | ||
Interest | 5,134,200 | 4,075,000 | ||
Professional fees, general and administrative and other | 1,718,800 | 1,174,500 | ||
Insurance | 1,255,300 | 1,166,400 | ||
Other taxes | 465,200 | 90,200 | ||
Total expenses | 45,952,300 | 25,558,500 | ||
Income before taxes | -17,245,800 | 12,673,100 | ||
Tax provision | -5,951,800 | 4,329,200 | ||
Net (loss)/income | -11,294,000 | 8,343,900 | ||
Earnings per share: | ||||
Basic (in dollars per share) | ($7.32) | $5.41 | ||
Diluted (in dollars per share) | ($7.32) | $5.26 | ||
Operating activities: | ||||
Net (loss)/income | -11,294,000 | 8,343,900 | ||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Net gain on disposal of assets | 3,147,200 | 3,808,200 | ||
Depreciation | 7,299,000 | 7,363,100 | ||
Non-cash interest | 950,100 | 1,113,600 | ||
Deferred income taxes | -5,952,600 | 4,321,300 | ||
Changes in operating assets and liabilities: | ||||
Accounts receivable | -498,000 | -96,100 | ||
Finance lease receivable | 1,895,200 | 246,000 | ||
Income taxes receivable | 0 | 2,000 | ||
Prepaid expenses and other | 486,700 | -772,400 | ||
Accounts payable and accrued expenses | -132,400 | -23,400 | ||
Accrued interest on notes payable | 163,300 | -38,400 | ||
Maintenance reserves and accrued costs | -1,313,700 | -9,128,800 | ||
Security deposits | -2,167,700 | -525,200 | ||
Unearned revenue | 210,200 | -105,700 | ||
Income taxes payable | 0 | -19,100 | ||
Net cash provided by operating activities | 5,235,400 | 6,872,600 | ||
Investing activities: | ||||
Proceeds from sale of aircraft and aircraft engines held for lease, net of re-sale fees | 15,854,800 | 10,018,700 | ||
Proceeds from sale of assets held for sale, net of re-sale fees | 312,100 | 945,100 | ||
Purchases of aircraft and aircraft engines | -74,529,000 | -24,965,500 | ||
Net cash used in investing activities | -58,362,100 | -14,001,700 | ||
Financing activities: | ||||
Borrowings under Credit Facility | 71,100,000 | 19,000,000 | ||
Repayments of Credit Facility | -15,200,000 | -9,300,000 | ||
Debt issuance costs | -3,045,500 | -2,055,000 | ||
Net cash provided by financing activities | 52,854,500 | 7,645,000 | ||
Net (decrease)/increase in cash and cash equivalents | -272,200 | 515,900 | ||
Cash and cash equivalents, beginning of year | 2,112,700 | 1,596,800 | ||
Cash and cash equivalents, end of year | 1,840,500 | 2,112,700 | ||
Cumulative net decrease of in stockholders' equity | 8,088,200 | |||
As Reported Previously [Member] | ||||
Balance Sheets [Abstract] | ||||
Cash and cash equivalents | 2,112,700 | |||
Accounts receivable, net | 3,313,700 | |||
Finance leases receivable | 1,895,200 | |||
Aircraft and aircraft engines held for lease, net | 152,375,200 | |||
Assets held for sale | 735,000 | |||
Prepaid expenses and other | 3,633,000 | |||
Total assets | 164,064,800 | |||
Accounts payable and accrued expenses | 1,175,300 | |||
Notes payable and accrued interest | 77,527,300 | |||
Maintenance reserves and accrued maintenance costs | 13,254,100 | |||
Security deposits | 6,265,000 | |||
Unearned revenues | 646,700 | |||
Deferred income taxes | 16,099,700 | |||
Total liabilities | 114,968,100 | |||
Preferred stock | 0 | |||
Common stock | 1,600 | |||
Paid-in capital | 14,780,100 | |||
Retained earnings | 34,819,100 | |||
Treasury stock | -504,100 | |||
Total stockholders' equity | 49,096,700 | |||
Total liabilities and stockholders' equity | 164,064,800 | |||
Statement of Operations [Abstract] | ||||
Operating lease revenue, net | 18,794,200 | |||
Maintenance reserves income, net | 8,878,300 | |||
Gain on disposal of assets and other income | 4,527,000 | |||
Total Income | 32,199,500 | |||
Maintenance | 8,765,000 | |||
Depreciation | 7,312,500 | |||
Management fees | 4,352,400 | |||
Interest | 4,075,000 | |||
Professional fees, general and administrative and other | 1,532,100 | |||
Insurance | 1,166,400 | |||
Other taxes | 90,200 | |||
Total expenses | 27,293,600 | |||
Income before taxes | 4,905,900 | |||
Tax provision | 1,688,400 | |||
Net (loss)/income | 3,217,500 | |||
Earnings per share: | ||||
Basic (in dollars per share) | $2.08 | |||
Diluted (in dollars per share) | $2.03 | |||
Operating activities: | ||||
Net (loss)/income | 3,217,500 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Net gain on disposal of assets | -3,808,200 | |||
Depreciation | 7,312,500 | |||
Non-cash interest | 1,113,600 | |||
Deferred income taxes | 1,680,500 | |||
Changes in operating assets and liabilities: | ||||
Accounts receivable | -106,000 | |||
Finance lease receivable | 246,000 | |||
Income taxes receivable | 2,000 | |||
Prepaid expenses and other | -772,400 | |||
Accounts payable and accrued expenses | -40,300 | |||
Accrued interest on notes payable | -38,400 | |||
Maintenance reserves and accrued costs | -1,284,200 | |||
Security deposits | -525,200 | |||
Unearned revenue | -105,700 | |||
Income taxes payable | -19,100 | |||
Net cash provided by operating activities | 6,872,600 | |||
Investing activities: | ||||
Proceeds from sale of aircraft and aircraft engines held for lease, net of re-sale fees | 10,018,700 | |||
Proceeds from sale of assets held for sale, net of re-sale fees | 945,100 | |||
Purchases of aircraft and aircraft engines | -24,965,500 | |||
Net cash used in investing activities | -14,001,700 | |||
Financing activities: | ||||
Borrowings under Credit Facility | 19,000,000 | |||
Repayments of Credit Facility | -9,300,000 | |||
Debt issuance costs | -2,055,000 | |||
Net cash provided by financing activities | 7,645,000 | |||
Net (decrease)/increase in cash and cash equivalents | 515,900 | |||
Cash and cash equivalents, beginning of year | 1,596,800 | |||
Cash and cash equivalents, end of year | 2,112,700 | |||
As Adjusted [Member] | ||||
Balance Sheets [Abstract] | ||||
Cash and cash equivalents | 2,112,700 | |||
Accounts receivable, net | 3,303,800 | |||
Finance leases receivable | 1,895,200 | |||
Aircraft and aircraft engines held for lease, net | 152,954,600 | |||
Assets held for sale | 735,000 | |||
Prepaid expenses and other | 3,633,000 | |||
Total assets | 164,634,300 | |||
Accounts payable and accrued expenses | 1,202,700 | |||
Notes payable and accrued interest | 77,527,300 | |||
Maintenance reserves and accrued maintenance costs | 18,283,900 | |||
Security deposits | 6,265,000 | |||
Unearned revenues | 646,700 | |||
Deferred income taxes | 14,573,800 | |||
Total liabilities | 118,499,400 | |||
Preferred stock | 0 | |||
Common stock | 1,600 | |||
Paid-in capital | 14,780,100 | |||
Retained earnings | 31,857,300 | |||
Treasury stock | -504,100 | |||
Total stockholders' equity | 46,134,900 | |||
Total liabilities and stockholders' equity | 164,634,300 | |||
Statement of Operations [Abstract] | ||||
Operating lease revenue, net | 18,794,200 | |||
Maintenance reserves income, net | 14,910,400 | |||
Gain on disposal of assets and other income | 4,527,000 | |||
Total Income | 38,231,600 | |||
Maintenance | 6,962,400 | |||
Depreciation | 7,363,100 | |||
Management fees | 4,369,300 | |||
Interest | 4,075,000 | |||
Professional fees, general and administrative and other | 1,532,100 | |||
Insurance | 1,166,400 | |||
Other taxes | 90,200 | |||
Total expenses | 25,558,500 | |||
Income before taxes | 12,673,100 | |||
Tax provision | 4,329,200 | |||
Net (loss)/income | 8,343,900 | |||
Earnings per share: | ||||
Basic (in dollars per share) | $5.41 | |||
Diluted (in dollars per share) | $5.26 | |||
Operating activities: | ||||
Net (loss)/income | 8,343,900 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Net gain on disposal of assets | -3,808,200 | |||
Depreciation | 7,363,100 | |||
Non-cash interest | 1,113,600 | |||
Deferred income taxes | 4,321,300 | |||
Changes in operating assets and liabilities: | ||||
Accounts receivable | -96,100 | |||
Finance lease receivable | 246,000 | |||
Income taxes receivable | 2,000 | |||
Prepaid expenses and other | -772,400 | |||
Accounts payable and accrued expenses | -23,400 | |||
Accrued interest on notes payable | -38,400 | |||
Maintenance reserves and accrued costs | -9,128,800 | |||
Security deposits | -525,200 | |||
Unearned revenue | -105,700 | |||
Income taxes payable | -19,100 | |||
Net cash provided by operating activities | 6,872,600 | |||
Investing activities: | ||||
Proceeds from sale of aircraft and aircraft engines held for lease, net of re-sale fees | 10,018,700 | |||
Proceeds from sale of assets held for sale, net of re-sale fees | 945,100 | |||
Purchases of aircraft and aircraft engines | -24,965,500 | |||
Net cash used in investing activities | -14,001,700 | |||
Financing activities: | ||||
Borrowings under Credit Facility | 19,000,000 | |||
Repayments of Credit Facility | -9,300,000 | |||
Debt issuance costs | -2,055,000 | |||
Net cash provided by financing activities | 7,645,000 | |||
Net (decrease)/increase in cash and cash equivalents | 515,900 | |||
Cash and cash equivalents, beginning of year | 1,596,800 | |||
Cash and cash equivalents, end of year | 2,112,700 | |||
Effect of Change [Member] | ||||
Balance Sheets [Abstract] | ||||
Cash and cash equivalents | 0 | |||
Accounts receivable, net | -9,900 | |||
Finance leases receivable | 0 | |||
Aircraft and aircraft engines held for lease, net | 579,400 | |||
Assets held for sale | 0 | |||
Prepaid expenses and other | 0 | |||
Total assets | 569,500 | |||
Accounts payable and accrued expenses | 27,400 | |||
Notes payable and accrued interest | 0 | |||
Maintenance reserves and accrued maintenance costs | 5,029,800 | |||
Security deposits | 0 | |||
Unearned revenues | 0 | |||
Deferred income taxes | -1,525,900 | |||
Total liabilities | 3,531,300 | |||
Preferred stock | 0 | |||
Common stock | 0 | |||
Paid-in capital | 0 | |||
Retained earnings | -2,961,800 | |||
Treasury stock | 0 | |||
Total stockholders' equity | -2,961,800 | |||
Total liabilities and stockholders' equity | 569,500 | |||
Statement of Operations [Abstract] | ||||
Operating lease revenue, net | 0 | |||
Maintenance reserves income, net | 6,032,100 | |||
Gain on disposal of assets and other income | 0 | |||
Total Income | 6,032,100 | |||
Maintenance | -1,802,600 | |||
Depreciation | 50,600 | |||
Management fees | 16,900 | |||
Interest | 0 | |||
Professional fees, general and administrative and other | 0 | |||
Insurance | 0 | |||
Other taxes | 0 | |||
Total expenses | -1,735,100 | |||
Income before taxes | 7,767,200 | |||
Tax provision | 2,640,800 | |||
Net (loss)/income | 5,126,400 | |||
Earnings per share: | ||||
Basic (in dollars per share) | $3.33 | |||
Diluted (in dollars per share) | $3.23 | |||
Operating activities: | ||||
Net (loss)/income | 5,126,400 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Net gain on disposal of assets | 0 | |||
Depreciation | 50,600 | |||
Non-cash interest | 0 | |||
Deferred income taxes | 2,640,800 | |||
Changes in operating assets and liabilities: | ||||
Accounts receivable | 9,900 | |||
Finance lease receivable | 0 | |||
Income taxes receivable | 0 | |||
Prepaid expenses and other | 0 | |||
Accounts payable and accrued expenses | 16,900 | |||
Accrued interest on notes payable | 0 | |||
Maintenance reserves and accrued costs | -7,844,600 | |||
Security deposits | 0 | |||
Unearned revenue | 0 | |||
Income taxes payable | 0 | |||
Net cash provided by operating activities | 0 | |||
Investing activities: | ||||
Proceeds from sale of aircraft and aircraft engines held for lease, net of re-sale fees | 0 | |||
Proceeds from sale of assets held for sale, net of re-sale fees | 0 | |||
Purchases of aircraft and aircraft engines | 0 | |||
Net cash used in investing activities | 0 | |||
Financing activities: | ||||
Borrowings under Credit Facility | 0 | |||
Repayments of Credit Facility | 0 | |||
Debt issuance costs | 0 | |||
Net cash provided by financing activities | 0 | |||
Net (decrease)/increase in cash and cash equivalents | 0 | |||
Cash and cash equivalents, beginning of year | 0 | |||
Cash and cash equivalents, end of year | $0 |
Aircraft_and_Aircraft_Engines_2
Aircraft and Aircraft Engines Held for Lease or Sale (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | |
Aircraft | Asset | |||
Asset | Aircraft | |||
Aircraft and aircraft engines held for lease or sale [Abstract] | ||||
Impairment charge | $11,718,700 | $6,800,000 | $18,736,500 | $0 |
Number of aircrafts purchased | 0 | |||
Payment for equipment and acquisition costs related to aircraft purchased | 74,529,000 | 24,965,500 | ||
Gain (loss) on sale of aircraft and parts from an engine | 3,147,200 | 4,504,200 | ||
Number of aircraft engines sold | 5 | |||
Gain on financial lease | 73,300 | |||
Number of assets lease term extended | 9 | |||
Number of off leased assets leased | 10 | 2 | ||
Number of entity aircraft off lease | 2 | |||
Re-lease opportunities for the off-lease aircraft (in hundredths) | 10.00% | |||
Proceeds from the sale of airframe parts | 312,100 | 945,100 | ||
Held-for-sale [Member] | ||||
Aircraft and aircraft engines held for lease or sale [Abstract] | ||||
Proceeds from the sale of airframe parts | 312,100 | 945,100 | ||
Bombardier Dash-8-300 [Member] | ||||
Aircraft and aircraft engines held for lease or sale [Abstract] | ||||
Number owned | 8 | 9 | ||
Percentage of net book value (in hundredths) | 17.00% | 23.00% | ||
Bombardier CRJ-700 [Member] | ||||
Aircraft and aircraft engines held for lease or sale [Abstract] | ||||
Number owned | 3 | 0 | ||
Percentage of net book value (in hundredths) | 16.00% | 0.00% | ||
Bombardier CRJ-900 [Member] | ||||
Aircraft and aircraft engines held for lease or sale [Abstract] | ||||
Number owned | 2 | 0 | ||
Percentage of net book value (in hundredths) | 16.00% | 0.00% | ||
Bombardier Dash-8-Q400 [Member] | ||||
Aircraft and aircraft engines held for lease or sale [Abstract] | ||||
Number owned | 3 | 3 | ||
Percentage of net book value (in hundredths) | 13.00% | 17.00% | ||
ATR 42 600 [Member] | ||||
Aircraft and aircraft engines held for lease or sale [Abstract] | ||||
Number owned | 1 | 0 | ||
Percentage of net book value (in hundredths) | 9.00% | 0.00% | ||
Bombardier CRJ-705 [Member] | ||||
Aircraft and aircraft engines held for lease or sale [Abstract] | ||||
Number owned | 1 | 1 | ||
Percentage of net book value (in hundredths) | 9.00% | 12.00% | ||
Saab 340B Plus [Member] | ||||
Aircraft and aircraft engines held for lease or sale [Abstract] | ||||
Number owned | 6 | 6 | ||
Percentage of net book value (in hundredths) | 7.00% | 8.00% | ||
Number of entity aircraft off lease | 4 | |||
Fokker 50 [Member] | ||||
Aircraft and aircraft engines held for lease or sale [Abstract] | ||||
Number owned | 6 | 10 | ||
Percentage of net book value (in hundredths) | 5.00% | 10.00% | ||
Impairment charge | 333,400 | |||
Number of aircraft on impairment recorded | 1 | |||
Number of aircraft held for sale | 1 | 1 | ||
Number of aircraft sold | 3 | 3 | ||
Fokker 50 [Member] | Held-for-Leases [Member] | ||||
Aircraft and aircraft engines held for lease or sale [Abstract] | ||||
Impairment charge | 217,800 | |||
Number of aircraft on impairment recorded | 2 | |||
General Electric CF34-8E5 engine [Member] | ||||
Aircraft and aircraft engines held for lease or sale [Abstract] | ||||
Number owned | 2 | 3 | ||
Percentage of net book value (in hundredths) | 4.00% | 6.00% | ||
Number of aircraft engines sold | 1 | |||
Fokker 100 [Member] | ||||
Aircraft and aircraft engines held for lease or sale [Abstract] | ||||
Number owned | 2 | 7 | ||
Percentage of net book value (in hundredths) | 3.00% | 19.00% | ||
Impairment charge | 15,278,900 | |||
Number of aircraft on impairment recorded | 5 | |||
Number of aircraft held for sale | 5 | |||
Fokker 100 [Member] | Held-for-Leases [Member] | ||||
Aircraft and aircraft engines held for lease or sale [Abstract] | ||||
Impairment charge | 2,906,400 | |||
Number of aircraft on impairment recorded | 2 | |||
Saab 340B [Member] | ||||
Aircraft and aircraft engines held for lease or sale [Abstract] | ||||
Number owned | 1 | 4 | ||
Percentage of net book value (in hundredths) | -1.00% | 4.00% | ||
Number of aircraft held for sale | 2 | |||
Number of aircraft sold | 5 | |||
Number of entity aircraft off lease | 1 | |||
Tay 650-15 engine [Member] | ||||
Aircraft and aircraft engines held for lease or sale [Abstract] | ||||
Number owned | 1 | 1 | ||
Percentage of net book value (in hundredths) | 0.00% | 1.00% | ||
Gain (loss) on sale of aircraft and parts from an engine | ($769,300) | |||
Number of aircraft engines sold | 1 | |||
General Electric CT7-9B engine [Member] | ||||
Aircraft and aircraft engines held for lease or sale [Abstract] | ||||
Number owned | 2 | 2 | ||
Percentage of net book value (in hundredths) | 0.00% | 0.00% | ||
Number of aircraft or engines subject to lease | 2 | |||
Number of aircraft engines sold | 1 | |||
Saab 340 A [Member] | ||||
Aircraft and aircraft engines held for lease or sale [Abstract] | ||||
Number owned | 0 | 1 | ||
Percentage of net book value (in hundredths) | 0.00% | 0.00% | ||
Number of aircraft or engines subject to lease | 1 | |||
Bombardier Dash-8-300 [Member] | ||||
Aircraft and aircraft engines held for lease or sale [Abstract] | ||||
Number of aircraft sold | 1 | |||
deHavilland DHC-6 [Member] | ||||
Aircraft and aircraft engines held for lease or sale [Abstract] | ||||
Number of aircraft sold | 1 | |||
deHavilland DHC-8-100 [Member] | ||||
Aircraft and aircraft engines held for lease or sale [Abstract] | ||||
Number of aircraft sold | 1 |
Operating_Segments_Details
Operating Segments (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Segment | ||
Operating Segments [Abstract] | ||
Number of business segments | 1 | |
Operating lease revenues derived from lessees domiciled in the United States (in hundredths) | 18.00% | 0.00% |
Segment Reporting Information [Line Items] | ||
Operating Lease Revenue | $21,913,300 | $18,794,200 |
Net Book Value of Aircraft and Aircraft Engines Held for Lease | 186,762,600 | 152,954,600 |
North America [Member] | ||
Segment Reporting Information [Line Items] | ||
Operating Lease Revenue | 6,423,700 | 1,542,000 |
Net Book Value of Aircraft and Aircraft Engines Held for Lease | 65,423,400 | 17,779,000 |
Africa [Member] | ||
Segment Reporting Information [Line Items] | ||
Operating Lease Revenue | 5,183,600 | 5,454,700 |
Net Book Value of Aircraft and Aircraft Engines Held for Lease | 28,858,200 | 29,951,800 |
Off lease [Member] | ||
Segment Reporting Information [Line Items] | ||
Net Book Value of Aircraft and Aircraft Engines Held for Lease | 17,106,000 | 34,446,300 |
Asia [Member] | ||
Segment Reporting Information [Line Items] | ||
Operating Lease Revenue | 3,460,400 | 4,149,000 |
Net Book Value of Aircraft and Aircraft Engines Held for Lease | 16,588,900 | 31,068,800 |
Europe and United Kingdom [Member] | ||
Segment Reporting Information [Line Items] | ||
Operating Lease Revenue | 2,952,300 | 3,415,500 |
Net Book Value of Aircraft and Aircraft Engines Held for Lease | 43,468,700 | 20,384,700 |
Central and South America [Member] | ||
Segment Reporting Information [Line Items] | ||
Operating Lease Revenue | 3,533,300 | 4,233,000 |
Net Book Value of Aircraft and Aircraft Engines Held for Lease | 10,146,100 | 19,324,000 |
Australia [Member] | ||
Segment Reporting Information [Line Items] | ||
Operating Lease Revenue | 360,000 | 0 |
Net Book Value of Aircraft and Aircraft Engines Held for Lease | $5,171,300 | $0 |
Concentration_of_Credit_Risk_D
Concentration of Credit Risk (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Customer | Customer | |
Concentration Risk [Line Items] | ||
Number of significant customers | 4 | 4 |
Operating leases, minimum future lease revenue payments receivable under noncancelable leases [Abstract] | ||
2015 | $22,938,700 | |
2016 | 21,300,400 | |
2017 | 17,937,600 | |
2018 | 13,719,200 | |
2019 | 12,860,000 | |
Thereafter | 37,596,300 | |
Total | 126,352,200 | |
Customer One [Member] | Lease Revenue [Member] | ||
Concentration Risk [Line Items] | ||
Lease revenues and receivables from significant customers (in hundredths) | 20.00% | 23.00% |
Customer Two [Member] | Lease Revenue [Member] | ||
Concentration Risk [Line Items] | ||
Lease revenues and receivables from significant customers (in hundredths) | 18.00% | 19.00% |
Customer Three [Member] | Lease Revenue [Member] | ||
Concentration Risk [Line Items] | ||
Lease revenues and receivables from significant customers (in hundredths) | 14.00% | 11.00% |
Customer Four [Member] | Lease Revenue [Member] | ||
Concentration Risk [Line Items] | ||
Lease revenues and receivables from significant customers (in hundredths) | 11.00% | 10.00% |
Two Customers [Member] | ||
Concentration Risk [Line Items] | ||
Receivables | $1,130,000 | 1,231,500 |
Two Customers [Member] | Receivable [Member] | ||
Concentration Risk [Line Items] | ||
Lease revenues and receivables from significant customers (in hundredths) | 56.00% | 40.00% |
Notes_Payable_and_Accrued_Inte2
Notes Payable and Accrued Interest (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | |
Notes payable and accrued interest [Abstract] | ||||
Notes payable and accrued interest | $133,590,600 | $77,527,300 | ||
Credit Facility [Abstract] | ||||
Impairment charges | 11,718,700 | 6,800,000 | 18,736,500 | 0 |
Credit Facility [Member] | ||||
Notes payable and accrued interest [Abstract] | ||||
Credit Facility principal | 133,400,000 | 77,500,000 | ||
Credit Facility accrued interest | 190,600 | 27,300 | ||
Notes payable and accrued interest | 133,590,600 | 77,527,300 | ||
Credit Facility [Abstract] | ||||
Credit facility, borrowing capacity replaced | 130,000,000 | |||
Credit facility maximum borrowing capacity | 180,000,000 | |||
Expiration date | 31-May-19 | |||
Credit facility | 150,000,000 | |||
Number of participant lenders departed | 2 | |||
Credit facility maximum borrowing capacity replaced | 200,000,000 | |||
Unused amount of the credit facility | $16,600,000 | $52,500,000 | ||
Weighted average interest rate on credit facility (in hundredths) | 3.58% | 3.94% |
Stockholder_Rights_Plan_Detail
Stockholder Rights Plan (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2009 | |
Class of Stock [Line Items] | ||
Number of stock purchase right for each share as dividends under plan (in shares) | 1 | |
Percentage of stock acquisition for exercise of rights as specified in right agreement (in hundredths) | 15.00% | |
Share purchase under right agreement description | Each right allows the holder, other than an bacquiring person,b to purchase one one-hundredth of a share (a unit) of Series A Preferred Stock at an initial purchase price of $97.00 under circumstances described in the rights agreement. | |
Expiration date of rights | 1-Dec-19 | |
Series A Preferred Stock [Member] | ||
Class of Stock [Line Items] | ||
Initial purchase price of unit under right agreement (in dollars per share) | 97 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Current tax provision [Abstract] | ||
Federal | $0 | $0 |
State | 800 | 800 |
Foreign | 0 | 7,100 |
Current tax provision | 800 | 7,900 |
Deferred tax (benefit)/provision [Abstract] | ||
Federal | -5,854,400 | 4,478,800 |
State | -98,200 | 1,100 |
Decrease in valuation allowance | 0 | -158,600 |
Deferred tax (benefit)/provision | -5,952,600 | 4,321,300 |
Total income tax (benefit)/provision | -5,951,800 | 4,329,200 |
Income tax rate reconciliation [Abstract] | ||
Income tax (benefit)/provision at statutory federal income tax rate | -5,863,600 | 4,308,900 |
State tax (benefit)/provision, net of federal benefit | -97,500 | 19,400 |
Prior year withholding tax adjustment | 0 | 174,600 |
Decrease in valuation allowance | 0 | -158,600 |
Other | 9,300 | -15,100 |
Total income tax (benefit)/provision | -5,951,800 | 4,329,200 |
Deferred tax assets [Abstract] | ||
Maintenance reserves | 2,138,900 | 1,813,900 |
Foreign tax credit carryover | 0 | 1,210,900 |
Alternative minimum tax credit | 10,800 | 100,800 |
Bad debt allowance and other | 961,100 | 490,100 |
Deferred tax assets | 3,110,800 | 3,615,700 |
Deferred tax liabilities [Abstract] | ||
Accumulated depreciation on aircraft and aircraft engines | -10,450,000 | -17,540,000 |
Minimum lease payments receivable | 0 | -649,500 |
Deferred income | -1,282,100 | 0 |
Net deferred tax liabilities | ($8,621,300) | ($14,573,800) |
Computation_of_Earnings_Per_Sh2
Computation of Earnings Per Share (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Basic and diluted earnings per share [Abstract] | ||
Net (loss)/income | ($11,294,000) | $8,343,900 |
Weighted average shares outstanding for the period (in shares) | 1,543,257 | 1,543,257 |
Dilutive effect of warrants (in shares) | 0 | 43,779 |
Weighted average diluted shares used in calculation of diluted (loss)/earnings per share (in shares) | 1,543,257 | 1,587,036 |
Basic (loss)/earnings (in dollars per share) | ($7.32) | $5.41 |
Diluted (loss)/earnings (in dollars per share) | ($7.32) | $5.26 |
Number of shares callable by warrants (in shares) | 81,224 |
Related_Party_Transactions_Det
Related Party Transactions (Details) (Jet Fleet Management Corp. [Member], USD $) | 12 Months Ended | 3 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | |
Related Party Transaction [Line Items] | |||
Management fees | $3,864,900 | $4,369,300 | |
Acquisition fees | 2,100,000 | 799,000 | |
Remarketing fees | 64,000 | 589,300 | |
Waiver of Fees [Member] | |||
Related Party Transaction [Line Items] | |||
Management fees | $1,200,000 |
Warrants_Details
Warrants (Details) (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Warrants [Abstract] | |
Number of shares callable by warrants (in shares) | 81,224 |
Warrants expiration date | 31-Dec-15 |
Percentage of post exercise fully diluted capitalization (in hundredths) | 5.00% |
Exercise price of warrants (in dollars per share) | $8.75 |
Subsequent_Events_Details
Subsequent Events (Details) (USD $) | 12 Months Ended | 0 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2015 | |
Subsequent Event [Line Items] | |||
Gain on sale of asset | $3,147,200 | $4,504,200 | |
Subsequent Event [Member] | Fokker 50 [Member] | |||
Subsequent Event [Line Items] | |||
Gain on sale of asset | $475,000 |