AeroCentury reported a $1.1 million net income for the third quarter ended 30 September 2012, reversing a $200,000 net loss for the third quarter of 2011.
For the nine months period the operating lessor's net income reached $3.4 million, compared with a $2.7 million net loss in last year's corresponding period.
Total revenues were $7.1 million and $21.4 million for the third quarter and nine months, respectively, compared with total revenues of $6.2 million and $17.9 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 utilisation of the company's asset portfolio in the 2012 periods and revenue from assets that were purchased subsequent to the 2011 periods. In addition, the operating lease revenue and maintenance reserves revenue in the 2011 periods were negatively affected by a write-off in those periods regarding the collectability of certain lease and reserves receivables, explains AeroCentury.
Total expenses decreased by approximately $1.2 million and $5.7 million in the third quarter and nine 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.
The 2011 periods included significant maintenance expense, funded by non-refundable maintenance reserves, on aircraft returned to the company during 2010. Interest expense was higher in the 2012 periods, primarily as a result of a higher fee amortization related to the company's credit facility, which was extended for one year in March 2012, and a higher average credit facility balance in 2012 as a result of aircraft acquisitions.