Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2017 | Nov. 09, 2017 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | AEROCENTURY CORP | |
Entity Central Index Key | 1,036,848 | |
Current Fiscal Year End Date | --12-31 | |
Entity Well-known Seasoned Issuer | No | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 1,416,699 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q3 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2017 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) | Sep. 30, 2017 | Dec. 31, 2016 |
Assets: | ||
Cash and cash equivalents | $ 6,529,200 | $ 2,194,400 |
Accounts receivable, including deferred rent of $2,600 and $604,800 at September 30, 2017 and December 31, 2016, respectively | 4,004,200 | 4,046,100 |
Finance leases receivable | 24,470,600 | 17,468,300 |
Aircraft and aircraft engines held for lease, net of accumulated depreciation of $38,790,800 and $32,639,600 at September 30, 2017 and December 31, 2016, respectively | 204,967,100 | 192,799,800 |
Assets held for sale | 7,412,400 | 1,998,100 |
Prepaid expenses and other | 371,900 | 229,400 |
Total assets | 247,755,400 | 218,736,100 |
Liabilities: | ||
Accounts payable and accrued expenses | 1,402,100 | 1,218,100 |
Notes payable and accrued interest, net of unamortized debt issuance costs of $1,826,000 and $1,999,900 at September 30, 2017 and December 31, 2016, respectively | 154,201,500 | 125,837,900 |
Maintenance reserves | 29,451,000 | 29,424,100 |
Accrued maintenance costs | 332,500 | 965,000 |
Security deposits | 3,818,300 | 3,933,200 |
Unearned revenues | 3,353,900 | 1,903,900 |
Deferred income taxes | 13,489,400 | 12,830,500 |
Income taxes payable | 357,500 | 123,200 |
Total liabilities | 206,406,200 | 176,235,900 |
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, 1,629,999 shares issued, 1,416,699 and 1,566,699 shares outstanding at September 30, 2017 and December 31, 2016, respectively | 1,600 | 1,600 |
Paid-in capital | 14,780,100 | 14,780,100 |
Retained earnings | 29,604,300 | 28,222,600 |
Shareholders equity before treasury stock | 44,386,000 | 43,004,300 |
Treasury stock at cost, 213,300 and 63,300 shares at September 30, 2017 and December 31, 2016, respectively | (3,036,800) | (504,100) |
Total stockholders' equity | 41,349,200 | 42,500,200 |
Total liabilities and stockholders' equity | $ 247,755,400 | $ 218,736,100 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) | Sep. 30, 2017 | Dec. 31, 2016 |
Assets: | ||
Accounts receivable, deferred rent | $ 2,600 | $ 604,800 |
Aircraft and aircraft engines held for lease, accumulated depreciation | 38,790,800 | 32,639,600 |
Liabilities: | ||
Unamortized debt issuance costs | $ 1,826,000 | $ 1,999,900 |
Stockholders' equity: | ||
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
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) | $ 0.001 | $ 0.001 |
Common stock, authorized (in shares) | 10,000,000 | 10,000,000 |
Common stock, issued (in shares) | 1,629,999 | 1,629,999 |
Common stock, outstanding (in shares) | 1,416,699 | 1,566,699 |
Treasury stock (in shares) | 213,300 | 63,300 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Revenues and other income: | ||||
Operating lease revenue | $ 7,568,500 | $ 6,074,600 | $ 21,995,600 | $ 17,054,100 |
Finance lease revenue | 415,700 | 199,800 | 1,173,400 | 571,900 |
Maintenance reserves revenue | 349,800 | 0 | 1,035,800 | 0 |
Net gain on sales-type finance leases | 0 | 1,166,100 | 297,400 | 1,213,600 |
Net (loss)/gain on disposal of assets | 3,500 | 2,800 | (130,400) | 2,149,200 |
Other income | 1,700 | 500 | 2,300 | 2,200 |
Total Income | 8,339,200 | 7,443,800 | 24,374,100 | 20,991,000 |
Expenses: | ||||
Depreciation | 3,158,600 | 2,332,600 | 9,037,700 | 6,283,100 |
Interest | 2,143,400 | 1,338,500 | 5,496,400 | 3,766,400 |
Management fees | 1,583,700 | 1,249,100 | 4,588,700 | 3,685,600 |
Professional fees, general and administrative and other | 521,500 | 385,900 | 1,621,800 | 1,563,800 |
Maintenance | 169,200 | 750,700 | 830,600 | 2,571,600 |
Provision for impairment in value of aircraft | 68,800 | 0 | 523,100 | 321,200 |
Bad debt expense | 0 | 572,900 | 0 | 835,800 |
Total expenses | 7,645,200 | 6,629,700 | 22,098,300 | 19,027,500 |
Income before income tax provision | 694,000 | 814,100 | 2,275,800 | 1,963,500 |
Income tax provision | 309,500 | 284,400 | 894,100 | 701,500 |
Net income | $ 384,500 | $ 529,700 | $ 1,381,700 | $ 1,262,000 |
Earnings per share: | ||||
Basic (in dollars per share) | $ 0.27 | $ 0.34 | $ 0.95 | $ 0.81 |
Diluted (in dollars per share) | $ 0.27 | $ 0.34 | $ 0.95 | $ 0.81 |
Weighted average shares used in earnings per share computations: | ||||
Basic (in shares) | 1,416,699 | 1,566,699 | 1,460,655 | 1,566,699 |
Diluted (in shares) | 1,416,699 | 1,566,699 | 1,460,655 | 1,566,699 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Condensed Consolidated Statements of Cash Flows (Unaudited) [Abstract] | ||
Net cash provided by operating activities | $ 13,363,000 | $ 10,816,200 |
Investing activities: | ||
Proceeds from sale of aircraft and aircraft engines held for lease, net of re-sale fees | 2,980,000 | 3,332,600 |
Proceeds from sale of assets held for sale, net of re-sale fees | 160,100 | 2,675,200 |
Proceeds from insurance | 0 | 18,886,700 |
Investment in direct financing leases | (7,614,200) | 0 |
Purchases of aircraft | (32,063,100) | (53,109,100) |
Net cash used in investing activities | (36,537,200) | (28,214,600) |
Financing activities: | ||
Issuance of notes payable - Credit Facility | 35,900,000 | 31,300,000 |
Repayment of notes payable - Credit Facility | (4,800,000) | (31,600,000) |
Debt issuance costs | (525,000) | (65,000) |
Issuance of notes payable - special purpose financing | 0 | 19,609,900 |
Repayment of notes payable - special purpose financing | (3,066,000) | (986,400) |
Net cash provided by financing activities | 27,509,000 | 18,258,500 |
Net increase in cash and cash equivalents | 4,334,800 | 860,100 |
Cash and cash equivalents, beginning of period | 2,194,400 | 2,721,000 |
Cash and cash equivalents, end of period | $ 6,529,200 | $ 3,581,100 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows (Unaudited) (Parenthetical) - USD ($) | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Condensed Consolidated Statements of Cash Flows (Unaudited) [Abstract] | ||
Interest paid | $ 4,697,000 | $ 3,211,100 |
Income taxes paid | $ 800 | $ 800 |
Organization and Summary of Sig
Organization and Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2017 | |
Organization and Summary of Significant Accounting Policies [Abstract] | |
Organization and Summary of Significant Accounting Policies | 1. (a) AeroCentury Corp., a Delaware corporation incorporated in 1997, typically acquires used regional aircraft and engines for lease to foreign and domestic regional carriers. In August 2016, AeroCentury Corp. formed two wholly-owned subsidiaries, ACY 19002 Limited ("ACY 19002") and ACY 19003 Limited ("ACY 19003") for the purpose of acquiring aircraft using a combination of cash and financing ("SPE Financing") separate from the parent's credit facility. Financial information for AeroCentury Corp., ACY 19002 and ACY 19003 (collectively, the "Company") is presented on a consolidated basis in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information, the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three- and nine-month periods ended September 30, 2017 are not necessarily indicative of the results that may be expected for the year ending December 31, 2017 and future periods. All intercompany balances and transactions have been eliminated in consolidation. For further information, refer to the financial statements and footnotes thereto included in the Company's annual report on Form 10-K for the year ended December 31, 2016. (b) The Company's condensed consolidated financial statements have been prepared in accordance with GAAP. The preparation of consolidated 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 consolidated 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 condensed consolidated financial statements are the residual values and useful lives of the Company's long lived assets, the amount and timing of future 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) 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 $5,150,400 and $1,348,100 at September 30, 2017 and December 31, 2016, respectively. The fair value of the Company's money market funds is categorized as Level 1 under the GAAP fair value hierarchy. As of September 30, 2017 and December 31, 2016, 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 assets 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 asset's carrying value exceeds its fair value. (a) Assets held for lease The Company recorded an impairment charge of $68,800 on one of its assets held for lease in the quarter ended September 30, 2017, based on expected sales proceeds. The aircraft was sold in October 2017. The Company also recorded an impairment charge of $454,300 on one of its assets in the quarter ended June 30, 2017, based on its appraised value. The Company recorded no impairment charges on its aircraft held for lease in the quarter or nine months ended September 30, 2016. (b) Assets held for sale The Company recorded no impairment charges on its aircraft held for sale during the quarter or nine-month period ended September 30, 2017. During the quarter and nine-month period ended September 30, 2016, the Company recorded impairment charges of $0 and $321,200, respectively, on assets that were sold in 2016. Fair Value of Other Financial Instruments The Company's financial instruments, other than cash and cash equivalents, consist principally of finance leases receivable, amounts borrowed under its credit facility (the "Credit Facility") and notes payable under special purpose financing. 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 that the effective interest rate under the Credit Facility approximates current market rates for such indebtedness at the balance sheet date, and therefore that the outstanding principal and accrued interest of $141,446,500 and $110,183,600 at September 30, 2017 and December 31, 2016, respectively, approximate their fair values on such dates. 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. The amounts payable under the Company's SPE Financing are payable through the fourth quarter of 2020 and bear a fixed rate of interest, as described in Note 4(b) to the condensed consolidated financial statements. The Company believes that the effective interest rate under the SPE Financing approximates current market rates for such indebtedness at the balance sheet date, and therefore that the outstanding principal and accrued interest of $14,581,000 and $17,654,200 approximate their fair values at September 30, 2017 and December 31, 2016, respectively. Such fair value would be categorized as Level 3 under the GAAP fair value hierarchy. (d) As of September 30, 2017, the Company had six aircraft subject to sales-type finance leases and three aircraft subject to direct financing leases. All nine leases contain lessee bargain purchase options at prices substantially below the subject assets' estimated residual values at the exercise date for the options. Consequently, the Company has classified each of these nine leases as finance leases for financial accounting purposes. For such finance leases, the Company reports 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 as a finance lease receivable on its balance sheet and accrues interest on the balance of the finance lease receivable based on the interest rate inherent in the applicable lease over the term of the lease. For each of the six sales-type finance leases, the Company recognized as a gain or loss the amount equal to (i) the net investment in the sales-type finance lease plus any initial direct costs and lease incentives less (ii) the net book value of the subject aircraft at inception of the applicable lease. The Company recognized revenue from interest earned on finance leases in the amount of $415,700 and $199,800 in the quarters ended September 30, 2017 and 2016, respectively and $1,173,400 and $571,900 in the nine month periods ended September 30, 2017 and 2016, respectively. (e) In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-09 that created the new Topic 606 ("Topic 606") in the Accounting Standards Codification ("ASC"). Topic 606 also included numerous conforming additions and amendments to other Topics within the ASC. Topic 606 established 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 the Company's non-lease revenues. On August 12, 2015, the FASB deferred the effective date of the provisions included in Topic 606 to years commencing after December 15, 2017. Topic 606 can be adopted early for years commencing after December 15, 2016, 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 consolidated financial statements. The Company has determined that adoption of Topic 606 will not have a material effect on its consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) The new standard requires a lessor to classify leases as sales-type, finance or operating. A lease will be treated as a sale if it transfers all of the risks and rewards, as well as control of the underlying asset, to the lessee. If risks and rewards are conveyed without the transfer of control, the lease is treated as a financing. If the lessor does not convey risks and rewards or control, an operating lease results. A modified retrospective transition approach is required for lessors for sales-type, finance, and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. The Company is reviewing those agreements under which it is the lessor and is evaluating the impact of the adoption of ASU 2016-02 on its consolidated financial statements and related disclosures. The Company does not expect to adopt ASU 2016-02 early, and expects to elect practical expedients in connection with its adoption, including not re-evaluating lease classification or capitalized initial direct costs on existing leases. The Company is not a lessee under any agreements that would be considered leases under ASU 2016-02, and so would be unaffected with respect to its adoption with respect to lessee accounting. In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805) In January 2017, the FASB issued ASU 2017-04, Intangibles -- Goodwill and Other (Topic 350) |
Finance Leases Receivable
Finance Leases Receivable | 9 Months Ended |
Sep. 30, 2017 | |
Finance Leases Receivable [Abstract] | |
Finance Leases Receivable | 2. At September 30, 2017 and December 31, 2016, the net investment included in sales-type finance leases and direct financing leases receivable were as follows: September 30, 2017 December 31, 2016 Gross minimum lease payments receivable $ 28,382,000 $ 20,829,200 Less unearned interest (3,911,400 ) (3,360,900 ) Finance leases receivable $ 24,470,600 $ 17,468,300 As of September 30, 2017, minimum future payments receivable under finance leases were as follows: Years ending Remainder of 2017 $ 1,758,200 2018 5,811,600 2019 7,087,600 2020 5,036,600 2021 5,381,000 Thereafter 3,307,000 $ 28,382,000 |
Aircraft and Aircraft Engines H
Aircraft and Aircraft Engines Held for Lease or Sale | 9 Months Ended |
Sep. 30, 2017 | |
Aircraft and Aircraft Engines Held for Lease or Sale [Abstract] | |
Aircraft and Aircraft Engines Held for Lease or Sale | 3. (a) At September 30, 2017 and December 31, 2016, the Company's aircraft and aircraft engines held for lease consisted of the following. September 30, 2017 December 31, 2016 Type Number owned % of net book value Number owned % of net book value Regional jet aircraft 15 81 % 12 73 % Turboprop aircraft 10 17 % 12 23 % Engines 2 2 % 4 4 % Detailed information regarding the Company's aircraft and aircraft engines held for lease is presented in Management's Discussion and Analysis of Financial Condition and Results of Operations – Fleet Summary During the third quarter of 2017, the Company used $10,557,400 for the acquisition of a regional jet aircraft on lease to a customer in the United States and acquisition costs related to aircraft acquired earlier in the year. During the third quarter of 2016, the Company used cash of $52,138,000 for acquisition of four aircraft and related costs. At the time of purchase, the Company received $17,179,300 of maintenance reserves related to two of the aircraft; such reserves are reflected as a deduction in the amount of cash used for purchases and related acquisition costs in the investing activities section of the Company's statement of cash flows for the nine months ended September 30, 2016. Eight of the Company's assets held for lease, comprised of six turboprop aircraft and two engines, were off lease at September 30, 2017, representing 8% of the net book value of the Company's aircraft and engines held for lease. As discussed in Note 9, a turboprop aircraft was returned to the Company in October 2017 . During the third quarter of 2017, the Company signed a letter of intent to sell one of its turboprop aircraft that was off lease at September 30, 2017. The Company recorded an impairment provision of $68,800, based on the expected sales proceeds. The aircraft was sold in October 2017. As of September 30, 2017, minimum future lease revenue payments receivable under non-cancelable operating leases were as follows: Years ending Remainder of 2017 $ 6,955,100 2018 25,882,900 2019 25,455,200 2020 23,003,000 2021 15,901,600 Thereafter 43,391,400 $ 140,589,200 (b) Assets held for sale at September 30, 2017 consist of a turboprop aircraft and turboprop airframe parts from three aircraft. During the three months ended September 30, 2017 and 2016, the Company received $47,500 and $41,400, respectively, from the sale of parts. Of such amounts, $44,000 and $38,600, respectively, reduced the carrying value of the parts. In the same periods, the Company received amounts in excess of the carrying value for parts from two of the airframes, and recorded gains totaling $3,500 and $2,800, respectively. |
Notes Payable and Accrued Inter
Notes Payable and Accrued Interest | 9 Months Ended |
Sep. 30, 2017 | |
Notes Payable and Accrued Interest [Abstract] | |
Notes Payable and Accrued Interest | 4. At September 30, 2017 and December 31, 2016, the Company's notes payable and accrued interest consisted of the following: September 30, 2017 December 31, 2016 Credit Facility: Principal $ 141,200,000 $ 110,100,000 Unamortized debt issuance costs (1,826,000 ) (1,999,900 ) Accrued interest 246,500 83,600 SPE Financing: Principal 14,557,600 17,623,600 Accrued interest 23,400 30,600 $ 154,201,500 $ 125,837,900 (a) 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 July 2017, the Credit Facility was amended to increase the total amount available for borrowing from $150 million to $170 million. Covenants regarding a debt to equity ratio and customer concentration were also modified. The Credit Facility, which expires on May 31, 2019, can be expanded to a maximum of $180 million. The Company was in compliance with all covenants under the Credit Facility at September 30, 2017 and December 31, 2016. The unused amount of the Credit Facility was $28,800,000 and $39,900,000 as of September 30, 2017 and December 31, 2016, respectively. The weighted average interest rate on the Credit Facility was 4.65% and 4.15% at September 30, 2017 and December 31, 2016, respectively. (b) In August 2016, the Company acquired two regional jet aircraft using cash and financing separate from its Credit Facility. The separate SPE Financing resulted in note obligations totaling $19,609,900, which are being paid from a portion of the rent payments on the related aircraft leases through October 3, 2020 and November 7, 2020, respectively, and which bear interest at the rate of 4.455%. The borrower under each note obligation is the special purpose entity that owns each aircraft. The notes are collateralized by the aircraft and are recourse only to the special purpose entity borrower and its aircraft asset, subject to standard exceptions for this type of financing. Payments due under the notes consist of quarterly principal and interest. The combined balance of the notes payable and accrued interest on these notes at September 30, 2017 and December 31, 2016 was $14,581,000 and $17,654,200, respectively. |
Acquisition Costs
Acquisition Costs | 9 Months Ended |
Sep. 30, 2017 | |
Acquisition Costs [Abstract] | |
Acquisition Costs | 5. During the quarter and nine months ended September 30, 2017, the Company accrued $161,800 and $287,700 respectively, of expenses related to the proposed acquisition of JHC, as discussed in Note 9. Such expenses are included in professional fees, general and administrative and other in the Company's condensed consolidated statements of operations. |
Contingencies
Contingencies | 9 Months Ended |
Sep. 30, 2017 | |
Contingencies [Abstract] | |
Contingencies | 6. In the ordinary conduct of the Company's business, the Company is subject to lawsuits, arbitrations and administrative proceedings from time to time. The Company believes that the outcome of any existing or known threatened proceedings, even if determined adversely, should not have a material adverse effect on the Company's business, financial condition, liquidity or results of operations. |
Computation of Earnings Per Sha
Computation of Earnings Per Share | 9 Months Ended |
Sep. 30, 2017 | |
Computation of Earnings Per Share [Abstract] | |
Computation of Earnings Per Share | 7. Basic and diluted earnings per share are calculated as follows: For the Nine Months Ended September 30, For the Three Months Ended September 30, 2017 2016 2017 2016 Net income $ 1,381,700 $ 1,262,000 $ 384,500 $ 529,700 Weighted average shares outstanding for the period 1,460,655 1,566,699 1,416,699 1,566,699 Basic earnings per share $ 0.95 $ 0.81 $ 0.27 $ 0.34 Diluted earnings per share $ 0.95 $ 0.81 $ 0.27 $ 0.34 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, of which the Company had none during the three months and nine months ended September 30, 2017 and 2016. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 8. 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. 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 the three months and nine months ended September 30, 2017 and 2016 were as follows: For the Nine Months Ended September 30, For the Three Months Ended September 30, 2017 2016 2017 2016 Management fees $ 4,588,700 $ 3,685,600 $ 1,583,700 $ 1,249,100 Acquisition fees 850,500 1,124,200 208,600 1,124,200 Remarketing fees 51,100 284,500 - 225,700 See the discussion in Note 9 regarding the Agreement and Plan of Merger for the acquisition of JHC by the Company. In August 2009, the Company entered into an agreement (the "Assignment Agreement") with Lee G. Beaumont in which Mr. Beaumont assigned to the Company his rights to purchase certain aircraft engines from an unrelated third party seller. In January 2012, Mr. Beaumont became a "related person" with respect to the Company due to his open market acquisitions of shares representing over 5% of the Company's common stock. In March 2017, the Company exchanged one of its engines for 150,000 shares of common stock of the Company held by Mr. Beaumont. The Company recorded no gain or loss related to the exchange. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | In October 2017, the Company sold a turboprop aircraft that was written down to its sales value at September 30, 2017. In October 2017, the Company and JHC entered into an Agreement and Plan of Merger (the "Merger") for the acquisition of JHC by the Company in a reverse triangular merger, for consideration of $3.5 million in cash and 129,286 shares of common stock of the Company. Prior to the consummation of the acquisition, the Company will submit an application to the State of California Division of Business Oversight (the "Division") for the issuance of a permit ("Permit") to exchange securities with the JHC shareholders in the Merger, to be issued after a fairness hearing with the Division regarding the fairness of the acquisition to the JHC shareholders. The closing is conditioned upon the fulfillment of several conditions, including the issuance of the Permit by the Division and obtaining certain votes in favor of the Merger by certain specified constituencies of JHC shareholders. The Company expects to account for the acquisition using the acquisition method of accounting, whereby the purchase price will be allocated to the assets acquired and liabilities assumed based on their respective fair values as of the acquisition date. The Company expects that it will be required, for accounting purposes, to record, at the time of acquisition, a substantial portion of the Merger consideration paid for JHC as a settlement loss arising from the deemed extinguishment of obligation to pay fees to JMC under the management agreement (since any fees paid to JMC post-Merger under the management agreement will be treated as intercompany transfers). The amount of the loss cannot be ascertained exactly until the Merger closes, as it depends on several variables, including final adjustments to the agreed purchase price and the quoted market price of AeroCentury Common Stock on the Merger closing date. In October 2017, a turboprop aircraft was returned to the Company at lease expiration. |
Organization and Summary of S16
Organization and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2017 | |
Organization and Summary of Significant Accounting Policies [Abstract] | |
The Company and Basis of Presentation | (a) AeroCentury Corp., a Delaware corporation incorporated in 1997, typically acquires used regional aircraft and engines for lease to foreign and domestic regional carriers. In August 2016, AeroCentury Corp. formed two wholly-owned subsidiaries, ACY 19002 Limited ("ACY 19002") and ACY 19003 Limited ("ACY 19003") for the purpose of acquiring aircraft using a combination of cash and financing ("SPE Financing") separate from the parent's credit facility. Financial information for AeroCentury Corp., ACY 19002 and ACY 19003 (collectively, the "Company") is presented on a consolidated basis in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information, the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three- and nine-month periods ended September 30, 2017 are not necessarily indicative of the results that may be expected for the year ending December 31, 2017 and future periods. All intercompany balances and transactions have been eliminated in consolidation. For further information, refer to the financial statements and footnotes thereto included in the Company's annual report on Form 10-K for the year ended December 31, 2016. |
Use of Estimates | (b) The Company's condensed consolidated financial statements have been prepared in accordance with GAAP. The preparation of consolidated 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 consolidated 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 condensed consolidated financial statements are the residual values and useful lives of the Company's long lived assets, the amount and timing of future 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. |
Fair Value Measurements | (c) 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 $5,150,400 and $1,348,100 at September 30, 2017 and December 31, 2016, respectively. The fair value of the Company's money market funds is categorized as Level 1 under the GAAP fair value hierarchy. As of September 30, 2017 and December 31, 2016, 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 assets 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 asset's carrying value exceeds its fair value. (a) Assets held for lease The Company recorded an impairment charge of $68,800 on one of its assets held for lease in the quarter ended September 30, 2017, based on expected sales proceeds. The aircraft was sold in October 2017. The Company also recorded an impairment charge of $454,300 on one of its assets in the quarter ended June 30, 2017, based on its appraised value. The Company recorded no impairment charges on its aircraft held for lease in the quarter or nine months ended September 30, 2016. (b) Assets held for sale The Company recorded no impairment charges on its aircraft held for sale during the quarter or nine-month period ended September 30, 2017. During the quarter and nine-month period ended September 30, 2016, the Company recorded impairment charges of $0 and $321,200, respectively, on assets that were sold in 2016. Fair Value of Other Financial Instruments The Company's financial instruments, other than cash and cash equivalents, consist principally of finance leases receivable, amounts borrowed under its credit facility (the "Credit Facility") and notes payable under special purpose financing. 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 that the effective interest rate under the Credit Facility approximates current market rates for such indebtedness at the balance sheet date, and therefore that the outstanding principal and accrued interest of $141,446,500 and $110,183,600 at September 30, 2017 and December 31, 2016, respectively, approximate their fair values on such dates. 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. The amounts payable under the Company's SPE Financing are payable through the fourth quarter of 2020 and bear a fixed rate of interest, as described in Note 4(b) to the condensed consolidated financial statements. The Company believes that the effective interest rate under the SPE Financing approximates current market rates for such indebtedness at the balance sheet date, and therefore that the outstanding principal and accrued interest of $14,581,000 and $17,654,200 approximate their fair values at September 30, 2017 and December 31, 2016, respectively. Such fair value would be categorized as Level 3 under the GAAP fair value hierarchy. |
Finance Leases | (d) As of September 30, 2017, the Company had six aircraft subject to sales-type finance leases and three aircraft subject to direct financing leases. All nine leases contain lessee bargain purchase options at prices substantially below the subject assets' estimated residual values at the exercise date for the options. Consequently, the Company has classified each of these nine leases as finance leases for financial accounting purposes. For such finance leases, the Company reports 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 as a finance lease receivable on its balance sheet and accrues interest on the balance of the finance lease receivable based on the interest rate inherent in the applicable lease over the term of the lease. For each of the six sales-type finance leases, the Company recognized as a gain or loss the amount equal to (i) the net investment in the sales-type finance lease plus any initial direct costs and lease incentives less (ii) the net book value of the subject aircraft at inception of the applicable lease. The Company recognized revenue from interest earned on finance leases in the amount of $415,700 and $199,800 in the quarters ended September 30, 2017 and 2016, respectively and $1,173,400 and $571,900 in the nine month periods ended September 30, 2017 and 2016, respectively. |
Recent Accounting Pronouncements | (e) In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-09 that created the new Topic 606 ("Topic 606") in the Accounting Standards Codification ("ASC"). Topic 606 also included numerous conforming additions and amendments to other Topics within the ASC. Topic 606 established 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 the Company's non-lease revenues. On August 12, 2015, the FASB deferred the effective date of the provisions included in Topic 606 to years commencing after December 15, 2017. Topic 606 can be adopted early for years commencing after December 15, 2016, 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 consolidated financial statements. The Company has determined that adoption of Topic 606 will not have a material effect on its consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) The new standard requires a lessor to classify leases as sales-type, finance or operating. A lease will be treated as a sale if it transfers all of the risks and rewards, as well as control of the underlying asset, to the lessee. If risks and rewards are conveyed without the transfer of control, the lease is treated as a financing. If the lessor does not convey risks and rewards or control, an operating lease results. A modified retrospective transition approach is required for lessors for sales-type, finance, and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. The Company is reviewing those agreements under which it is the lessor and is evaluating the impact of the adoption of ASU 2016-02 on its consolidated financial statements and related disclosures. The Company does not expect to adopt ASU 2016-02 early, and expects to elect practical expedients in connection with its adoption, including not re-evaluating lease classification or capitalized initial direct costs on existing leases. The Company is not a lessee under any agreements that would be considered leases under ASU 2016-02, and so would be unaffected with respect to its adoption with respect to lessee accounting. In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805) In January 2017, the FASB issued ASU 2017-04, Intangibles -- Goodwill and Other (Topic 350) |
Finance Leases Receivable (Tabl
Finance Leases Receivable (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Finance Leases Receivable [Abstract] | |
Net investment included in sales-type finance leases and direct financing leases receivable | At September 30, 2017 and December 31, 2016, the net investment included in sales-type finance leases and direct financing leases receivable were as follows: September 30, 2017 December 31, 2016 Gross minimum lease payments receivable $ 28,382,000 $ 20,829,200 Less unearned interest (3,911,400 ) (3,360,900 ) Finance leases receivable $ 24,470,600 $ 17,468,300 |
Minimum future lease revenue payments receivable under finance leases | As of September 30, 2017, minimum future payments receivable under finance leases were as follows: Years ending Remainder of 2017 $ 1,758,200 2018 5,811,600 2019 7,087,600 2020 5,036,600 2021 5,381,000 Thereafter 3,307,000 $ 28,382,000 |
Aircraft and Aircraft Engines18
Aircraft and Aircraft Engines Held for Lease or Sale (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Aircraft and Aircraft Engines Held for Lease or Sale [Abstract] | |
Aircraft and aircraft engines held for lease | At September 30, 2017 and December 31, 2016, the Company's aircraft and aircraft engines held for lease consisted of the following. September 30, 2017 December 31, 2016 Type Number owned % of net book value Number owned % of net book value Regional jet aircraft 15 81 % 12 73 % Turboprop aircraft 10 17 % 12 23 % Engines 2 2 % 4 4 % |
Minimum future lease revenue payments receivable | As of September 30, 2017, minimum future lease revenue payments receivable under non-cancelable operating leases were as follows: Years ending Remainder of 2017 $ 6,955,100 2018 25,882,900 2019 25,455,200 2020 23,003,000 2021 15,901,600 Thereafter 43,391,400 $ 140,589,200 |
Notes Payable and Accrued Int19
Notes Payable and Accrued Interest (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Notes Payable and Accrued Interest [Abstract] | |
Notes payable and accrued interest | At September 30, 2017 and December 31, 2016, the Company's notes payable and accrued interest consisted of the following: September 30, 2017 December 31, 2016 Credit Facility: Principal $ 141,200,000 $ 110,100,000 Unamortized debt issuance costs (1,826,000 ) (1,999,900 ) Accrued interest 246,500 83,600 SPE Financing: Principal 14,557,600 17,623,600 Accrued interest 23,400 30,600 $ 154,201,500 $ 125,837,900 |
Computation of Earnings Per S20
Computation of Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Computation of Earnings Per Share [Abstract] | |
Basic and diluted earnings per share | Basic and diluted earnings per share are calculated as follows: For the Nine Months Ended September 30, For the Three Months Ended September 30, 2017 2016 2017 2016 Net income $ 1,381,700 $ 1,262,000 $ 384,500 $ 529,700 Weighted average shares outstanding for the period 1,460,655 1,566,699 1,416,699 1,566,699 Basic earnings per share $ 0.95 $ 0.81 $ 0.27 $ 0.34 Diluted earnings per share $ 0.95 $ 0.81 $ 0.27 $ 0.34 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Related Party Transactions [Abstract] | |
Related party fees | Fees incurred during the three months and nine months ended September 30, 2017 and 2016 were as follows: For the Nine Months Ended September 30, For the Three Months Ended September 30, 2017 2016 2017 2016 Management fees $ 4,588,700 $ 3,685,600 $ 1,583,700 $ 1,249,100 Acquisition fees 850,500 1,124,200 208,600 1,124,200 Remarketing fees 51,100 284,500 - 225,700 |
Organization and Summary of S22
Organization and Summary of Significant Accounting Policies (Details) | Aug. 31, 2016Subsidiary | Sep. 30, 2017USD ($)Aircraft | Jun. 30, 2017USD ($)Aircraft | Sep. 30, 2016USD ($) | Sep. 30, 2017USD ($)AircraftLease | Sep. 30, 2016USD ($) | Dec. 31, 2016USD ($) |
Organization and Summary of Significant Accounting Policies [Abstract] | |||||||
Number of wholly owned subsidiaries | Subsidiary | 2 | ||||||
Capital Leased Assets [Line Items] | |||||||
Impairment charge | $ 68,800 | $ 0 | $ 523,100 | $ 321,200 | |||
Notes payable and accrued interest | 154,201,500 | $ 154,201,500 | $ 125,837,900 | ||||
Finance Leases [Abstract] | |||||||
Number of aircraft with sales type finance leases | Aircraft | 6 | ||||||
Number of aircraft with direct financing leases | Aircraft | 3 | ||||||
Number of finance leases | Lease | 9 | ||||||
Interest earned on finance lease | 415,700 | 199,800 | $ 1,173,400 | 571,900 | |||
SPE Financing [Member] | |||||||
Capital Leased Assets [Line Items] | |||||||
Notes payable and accrued interest | 14,581,000 | 14,581,000 | 17,654,200 | ||||
Credit Facility [Member] | |||||||
Capital Leased Assets [Line Items] | |||||||
Notes payable and accrued interest | 141,446,500 | 141,446,500 | 110,183,600 | ||||
Held for Sale [Member] | |||||||
Capital Leased Assets [Line Items] | |||||||
Impairment charge | 44,000 | 38,600 | |||||
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 | 5,150,400 | 5,150,400 | 1,348,100 | ||||
Liabilities recorded at fair value | 0 | $ 0 | $ 0 | ||||
Aircraft [Member] | Held for Lease [Member] | |||||||
Capital Leased Assets [Line Items] | |||||||
Impairment charge | $ 68,800 | $ 454,300 | 0 | 0 | |||
Number of assets held for lease | Aircraft | 1 | 1 | 1 | ||||
Aircraft [Member] | Held for Sale [Member] | |||||||
Capital Leased Assets [Line Items] | |||||||
Impairment charge | $ 0 | $ 0 | $ 0 | $ 321,200 |
Finance Leases Receivable (Deta
Finance Leases Receivable (Details) - USD ($) | Sep. 30, 2017 | Dec. 31, 2016 |
Net Investment [Abstract] | ||
Gross minimum lease payments receivable | $ 28,382,000 | $ 20,829,200 |
Less unearned interest | (3,911,400) | (3,360,900) |
Finance leases receivable | 24,470,600 | 17,468,300 |
Minimum Future Lease Revenue Payments [Abstract] | ||
Remainder of 2017 | 1,758,200 | |
2,018 | 5,811,600 | |
2,019 | 7,087,600 | |
2,020 | 5,036,600 | |
2,021 | 5,381,000 | |
Thereafter | 3,307,000 | |
Total | $ 28,382,000 | $ 20,829,200 |
Aircraft and Aircraft Engines24
Aircraft and Aircraft Engines Held for Lease or Sale (Details) | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
Oct. 31, 2017Aircraft | Sep. 30, 2017USD ($)Aircraft | Sep. 30, 2016USD ($)Aircraft | Sep. 30, 2017USD ($)AircraftAsset | Sep. 30, 2016USD ($)Aircraft | Dec. 31, 2016Aircraft | |
Aircraft and aircraft engines held for lease or sale [Abstract] | ||||||
Payment for equipment and acquisition costs related to aircraft purchased | $ 7,614,200 | $ 0 | ||||
Gain (loss) on sale of assets | $ 3,500 | $ 2,800 | (130,400) | 2,149,200 | ||
Proceeds from the sale of airframe parts | 160,100 | 2,675,200 | ||||
Asset Impairment Charges | 68,800 | $ 0 | 523,100 | 321,200 | ||
Minimum future lease revenue payments receivable under noncancelable operating leases [Abstract] | ||||||
Remainder of 2017 | 6,955,100 | 6,955,100 | ||||
2,018 | 25,882,900 | 25,882,900 | ||||
2,019 | 25,455,200 | 25,455,200 | ||||
2,020 | 23,003,000 | 23,003,000 | ||||
2,021 | 15,901,600 | 15,901,600 | ||||
Thereafter | 43,391,400 | 43,391,400 | ||||
Total | $ 140,589,200 | $ 140,589,200 | ||||
Regional Jet Aircraft [Member] | ||||||
Aircraft and aircraft engines held for lease or sale [Abstract] | ||||||
Number owned | Aircraft | 15 | 15 | 12 | |||
Percentage of net book value | 81.00% | 81.00% | 73.00% | |||
Turboprop Aircraft [Member] | ||||||
Aircraft and aircraft engines held for lease or sale [Abstract] | ||||||
Number owned | Aircraft | 10 | 10 | 12 | |||
Percentage of net book value | 17.00% | 17.00% | 23.00% | |||
Turboprop Aircraft [Member] | Subsequent Event [Member] | ||||||
Aircraft and aircraft engines held for lease or sale [Abstract] | ||||||
Number of aircraft sold | Aircraft | 1 | |||||
Number of assets returned | Aircraft | 1 | |||||
Engines [Member] | ||||||
Aircraft and aircraft engines held for lease or sale [Abstract] | ||||||
Number owned | Aircraft | 2 | 2 | 4 | |||
Percentage of net book value | 2.00% | 2.00% | 4.00% | |||
Held for Lease [Member] | ||||||
Aircraft and aircraft engines held for lease or sale [Abstract] | ||||||
Percentage of net book value | 8.00% | 8.00% | ||||
Number of aircraft purchased | Aircraft | 4 | |||||
Payment for equipment and acquisition costs related to aircraft purchased | $ 52,138,000 | |||||
Proceeds from maintenance reserves | $ 17,179,300 | |||||
Number of aircraft for which maintenance reserve received | Aircraft | 2 | |||||
Number of assets held for lease, off lease | Asset | 8 | |||||
Held for Lease [Member] | Regional Jet Aircraft [Member] | ||||||
Aircraft and aircraft engines held for lease or sale [Abstract] | ||||||
Payment for equipment and acquisition costs related to aircraft purchased | $ 10,557,400 | |||||
Held for Lease [Member] | Turboprop Aircraft [Member] | ||||||
Aircraft and aircraft engines held for lease or sale [Abstract] | ||||||
Number of assets held for lease, off lease | Asset | 6 | |||||
Held for Lease [Member] | Turboprop Aircraft [Member] | Subsequent Event [Member] | ||||||
Aircraft and aircraft engines held for lease or sale [Abstract] | ||||||
Number of assets returned | Aircraft | 1 | |||||
Held for Lease [Member] | Engines [Member] | ||||||
Aircraft and aircraft engines held for lease or sale [Abstract] | ||||||
Number of assets held for lease, off lease | Asset | 2 | |||||
Held for Sale [Member] | ||||||
Aircraft and aircraft engines held for lease or sale [Abstract] | ||||||
Proceeds from the sale of airframe parts | 47,500 | 41,400 | ||||
Asset Impairment Charges | $ 44,000 | 38,600 | ||||
Held for Sale [Member] | Turboprop Aircraft [Member] | ||||||
Aircraft and aircraft engines held for lease or sale [Abstract] | ||||||
Number of assets held for sale | Aircraft | 1 | 1 | ||||
Held for Sale [Member] | Engines [Member] | Subsequent Event [Member] | ||||||
Aircraft and aircraft engines held for lease or sale [Abstract] | ||||||
Number of assets held for sale | Aircraft | 1 | |||||
Held for Sale [Member] | Turboprop Airframe [Member] | ||||||
Aircraft and aircraft engines held for lease or sale [Abstract] | ||||||
Number of aircraft sold | Aircraft | 2 | |||||
Gain (loss) on sale of assets | $ 3,500 | $ 2,800 | ||||
Number of assets held for sale | Aircraft | 1 | 1 | ||||
Held for Sale [Member] | Turboprop Airframe [Member] | Subsequent Event [Member] | ||||||
Aircraft and aircraft engines held for lease or sale [Abstract] | ||||||
Number of assets held for sale | Aircraft | 1 | |||||
Held for Sale [Member] | Aircraft [Member] | ||||||
Aircraft and aircraft engines held for lease or sale [Abstract] | ||||||
Number of assets held for sale | Aircraft | 3 | 3 |
Notes Payable and Accrued Int25
Notes Payable and Accrued Interest (Details) | Aug. 31, 2016USD ($)Aircraft | Sep. 30, 2017USD ($) | Jul. 31, 2017USD ($) | Jun. 30, 2017USD ($) | Dec. 31, 2016USD ($) |
Credit Facility [Abstract] | |||||
Unamortized debt issuance costs | $ (1,826,000) | $ (1,999,900) | |||
SPE Financing [Abstract] | |||||
Notes payable and accrued interest | 154,201,500 | 125,837,900 | |||
SPE Financing [Member] | |||||
SPE Financing [Abstract] | |||||
Principal | 14,557,600 | 17,623,600 | |||
Interest rate | 4.455% | ||||
Accrued interest | 23,400 | 30,600 | |||
Notes payable and accrued interest | 14,581,000 | 17,654,200 | |||
SPE Financing [Member] | October 3, 2020 to November 7, 2020 [Member] | |||||
SPE Financing [Abstract] | |||||
Principal | $ 19,609,900 | ||||
SPE Financing [Member] | Regional Jet Aircraft [Member] | |||||
SPE Financing [Abstract] | |||||
Number of aircraft purchased | Aircraft | 2 | ||||
Credit Facility [Member] | |||||
Credit Facility [Abstract] | |||||
Principal | 141,200,000 | 110,100,000 | |||
Unamortized debt issuance costs | (1,826,000) | (1,999,900) | |||
Credit facility current borrowing capacity | $ 170,000,000 | $ 150,000,000 | |||
Credit facility maximum borrowing capacity | 180,000,000 | ||||
Unused amount of the credit facility | $ 28,800,000 | $ 39,900,000 | |||
Weighted average interest rate on credit facility | 4.65% | 4.15% | |||
SPE Financing [Abstract] | |||||
Accrued interest | $ 246,500 | $ 83,600 |
Acquisition Costs (Details)
Acquisition Costs (Details) - USD ($) | 3 Months Ended | 9 Months Ended |
Sep. 30, 2017 | Sep. 30, 2017 | |
Acquisition Costs [Abstract] | ||
Acquisition costs | $ 161,800 | $ 287,700 |
Computation of Earnings Per S27
Computation of Earnings Per Share (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Basic and diluted earnings per share [Abstract] | ||||
Net income | $ 384,500 | $ 529,700 | $ 1,381,700 | $ 1,262,000 |
Weighted average shares outstanding for the period (in shares) | 1,416,699 | 1,566,699 | 1,460,655 | 1,566,699 |
Basic earnings per share (in dollars per share) | $ 0.27 | $ 0.34 | $ 0.95 | $ 0.81 |
Diluted earnings per share (in dollars per share) | $ 0.27 | $ 0.34 | $ 0.95 | $ 0.81 |
Number of potentially dilutive shares outstanding (in shares) | 0 | 0 |
Related Party Transactions (Det
Related Party Transactions (Details) | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2017USD ($)Aircraftshares | Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | Jan. 31, 2012 | |
Related Party Transaction [Line Items] | ||||||
Management fees | $ 1,583,700 | $ 1,249,100 | $ 4,588,700 | $ 3,685,600 | ||
Jet Fleet Management Corp. [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Management fees | 1,583,700 | 1,249,100 | 4,588,700 | 3,685,600 | ||
Acquisition fees | 208,600 | 1,124,200 | 850,500 | 1,124,200 | ||
Remarketing fees | $ 0 | $ 225,700 | $ 51,100 | $ 284,500 | ||
Lee G. Beaumont [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Percentage of shares acquired by related party | 5.00% | |||||
Lee G. Beaumont [Member] | Engines [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Number of aircraft engines exchanged | Aircraft | 1 | |||||
Number of shares held by the related party (in shares) | shares | 150,000 | |||||
Gain (loss) on exchange of sale of assets | $ 0 |
Subsequent Events (Details)
Subsequent Events (Details) | 1 Months Ended | 3 Months Ended |
Oct. 31, 2017USD ($)Aircraftshares | Sep. 30, 2017Aircraft | |
Turboprop Aircraft [Member] | Held for Sale [Member] | ||
Subsequent Event [Line Items] | ||
Number of assets held for sale | 1 | |
Turboprop Airframe [Member] | Held for Sale [Member] | ||
Subsequent Event [Line Items] | ||
Number of aircraft sold | 2 | |
Number of assets held for sale | 1 | |
Subsequent Event [Member] | Turboprop Aircraft [Member] | ||
Subsequent Event [Line Items] | ||
Number of aircraft sold | 1 | |
Number of assets returned | 1 | |
Gain on termination of lease | $ | $ 1,301,000 | |
Subsequent Event [Member] | Turboprop Aircraft [Member] | Held for Lease [Member] | ||
Subsequent Event [Line Items] | ||
Number of assets returned | 1 | |
Number of assets held for lease | 1 | |
Subsequent Event [Member] | Turboprop Airframe [Member] | Held for Sale [Member] | ||
Subsequent Event [Line Items] | ||
Number of assets held for sale | 1 | |
Subsequent Event [Member] | Engines [Member] | Held for Lease [Member] | ||
Subsequent Event [Line Items] | ||
Number of assets held for lease | 1 | |
Subsequent Event [Member] | Engines [Member] | Held for Sale [Member] | ||
Subsequent Event [Line Items] | ||
Number of assets held for sale | 1 | |
Subsequent Event [Member] | JHC [Member] | ||
Subsequent Event [Line Items] | ||
Consideration paid in cash | $ | $ 3,500,000 | |
Number of common stock shares (in shares) | shares | 129,286 |