AeroCentury reports positive net income

For the second quarter ended June 30, 2012, AeroCentury Corp. has reported a net income of $1 million compared to a net loss of $0.1 million in the year-ago period. The aircraft lessor posted $2.4 million net income for the half-year period.
Total revenue was $7.5 million and $14.3 million for the second quarter and six months ended June 30, 2012, respectively, compared with total revenues of $6.8 million and $11.7 million for the same periods a year ago. The year-to- year increases were primarily due to increases in operating lease revenue and maintenance reserves revenue resulting from higher average utilization of the firm’s asset portfolio in the 2012 periods and revenue from assets purchased since June 30, 2011. In addition, the 2011 periods included reductions in operating lease revenue and maintenance reserves revenue due to uncertainty about the collectability of the related receivables. The net increases in operating lease revenue and maintenance reserves were partially offset by a lower gain on sale of aircraft in the 2012 periods compared to the 2011 periods.
Total expenses decreased by approximately $0.9 million and $4.5 million in the second quarter and six months of 2012 as compared to the same periods in 2011, resulting primarily from a year-over-year decrease in maintenance expense, the effect of which was partially offset by an increase in interest expense. During the 2011 period, the Company incurred significant maintenance expense, funded by non-refundable maintenance reserves, on aircraft returned to the Company during 2010.