Research that Identifies
Undiscovered Value in the MicroCap Market



AEROCENTURY CORP.

Aerocentury Email List: Click to Subscribe

View Company Website: Click to View

Market Data: Yahoo Finance, Bloomberg, SEC Filings

Report Link: Updated Research Report (Dated 08/16/2019)

Symbol: ACY
Analyst: Howard Halpern
Taglich Rating: Speculative Buy
Price Target: $9.75
Time Horizon: 12 Months
Rating Established: December 3, 2012
Price When Established: $12.99
Most Recent Report: August 16, 2019
Price When Issued: $6.84


What's New

AeroCentury Announces Forbearance Extension

In October and November 2019, ACY and its agent bank and credit facility lenders entered into a forbearance agreement and an amendment extending the forbearance agreement with (specified defaults). The forbearance agreement provides that lenders temporarily forbear from exercising default remedies under the credit facility for the specified defaults and reduce the maximum availability under the credit facility to $115 million. The forbearance agreement will be in effect until December 12, 2019, unless defaults other than specified defaults occur.

During the forbearance period, the company intends to formulate a workout plan to address its noncompliance with its credit facility covenants and negotiate a longer term amendment with its existing lenders to address covenant compliance.

The company has engaged an investment banking advisor to assist in formulating the workout plan and analyzing various strategic financial alternatives to address its capital structure, including strategic and financing alternatives to restructure its indebtedness and other contractual obligations.

There is doubt about the company’s ability to continue as a going concern stemming from the company’s lack of cash to repay the accelerated credit facility’s indebtedness, breakage costs related to the credit facility rate swaps arising from an acceleration or any potential modification of the credit facility, along with the potential exercise of Lender remedies against the assets of ACY due to the existing credit facility defaults.


AeroCentury Reports 3Q19 Results

On November 14, 2019, AeroCentury Corp. announced third quarter earnings for the period ended September 30, 2019.

In 3Q19, ACY reported operating lease revenue of $6.7 million vs. $7.2 million in the year-ago period. The company reported total revenues of $24 million versus $5.1 million in the same period last year. 3Q19 total revenues included one-time $17 million in maintenance reserves revenue compared no maintenance reserves revenue in the year-ago period. Finance lease revenue in each period was $269,000 and $262,000, respectively. 3Q19 had a $44,000 gain on disposal of assets compared to a $2.4 million loss in the year-ago period.

Net loss was $8.2 million or ($5.32) per share, versus a net loss of $4.5 million or ($3.16) per share. Included in the losses in each period were impairment charges of $23.4 million and $2.7 million, respectively. Also, the current period included approximately $3.9 million in bad debt expense compared to none in the year-ago period.

We estimate excluding one-time items the company had a loss of nearly $185,000 or ($0.12) per share.

Taglich Brothers’ estimates called for third quarter operating lease revenues of $7.2 million and net income of $215,000 or $0.14 per share.


Company Description

AeroCentury Corp., (ACY) is a global aircraft operating lessor and finance company specializing in leasing regional jet and turboprop aircraft and related engines. The Company's aircraft and engines are leased to regional airlines and commercial users worldwide.


Company Reports

Updated Research Report (Dated August 16, 2019)
Updated Research Report (Dated May 22, 2019)
Updated Research Report (Dated March 26, 2019)
Updated Research Report (Dated November 29, 2018)
Updated Research Report (Dated August 23, 2018)
Updated Research Report (Dated May 30, 2018)
Updated Research Report (Dated March 29, 2018)
Updated Research Report (Dated November 28, 2017)
Updated Research Report (Dated August 24, 2017)
Updated Research Report (Dated May 16, 2016)
Updated Research Report (Dated March 23, 2017)
Updated Research Report (Dated November 23, 2016)
Updated Research Report (Dated August 24, 2016)
Updated Research Report (Dated May 24, 2016)
Updated Research Report (Dated March 16, 2016)
Updated Research Report (Dated November 18, 2015)
Updated Research Report (Dated August 19, 2015)
Updated Research Report (Dated May 19, 2015)
Updated Research Report (Dated March 20, 2015)
Updated Research Report (Dated December 5, 2014)
Updated Research Report (Dated August 21, 2014)
Updated Research Report (Dated June 4, 2014)
Updated Research Report (Dated March 25, 2014)
Updated Research Report (Dated November 20, 2013)
Updated Research Report (Dated August 15, 2013)
Updated Research Report (Dated May 22, 2013)
Updated Research Report (Dated March 26, 2013)
Updated Research Report (Dated December 3, 2012)
Updated Research Report (Dated August 15, 2012)
Updated Research Report (Dated May 18, 2012)
Updated Research Report (Dated March 14, 2012)
Updated Research Report (Dated November 23, 2011)
Updated Research Report (Dated September 7, 2011)
Updated Research Report (Dated June 2, 2011)
Updated Research Report (Dated March 29, 2011)
Updated Research Report (Dated December 17, 2010)
Updated Research Report (Dated August 18, 2010)
Updated Research Report (Dated May 25, 2010)
Updated Research Report (Dated March 18, 2010)
Updated Research Report (Dated December 2, 2009)
Updated Research Report (Dated September 9, 2009)
Updated Research Note (Dated June 3, 2009)
Updated Research Report (Dated April 6, 2009)
Updated Earnings Note (Dated March 9, 2009)
Updated Research Report (Dated November 25, 2008)
Updated Earnings Note (Dated November 13, 2008)
Updated Research Report (Dated September 3, 2008)
Updated Earnings Note (Dated August 13, 2008)
Updated Research Report (Dated June 11, 2008)
Updated Earnings Note (Dated May 13, 2008)
Updated Research Update (Dated April 9, 2008)
Updated Earnings Note (Dated February 27, 2008)
Updated Research Report (Dated November 29, 2007)
Updated Earnings Note (Dated November 8, 2007)
Updated Research Report (Dated September 4, 2007)
Updated Research Report (Dated June 20, 2007)
Updated Research Report (Dated March 30, 2007)
Updated Research Note (Dated March 5, 2007)
Updated Research Report (Dated December 11, 2006)
Updated Research Report (Dated August 30, 2006)
Updated Research Report (Dated June 5, 2006)
Updated Research Report (Dated March 27, 2006)
Updated Research Report (Dated September 8, 2005)
Updated Research Report (Dated May 23, 2005)
Updated Research Report (Dated February 17, 2005)
Updated Research Report (Dated November 24, 2004)
Updated Research Report (Dated August 20, 2004)
Updated Research Report (Dated May 28, 2004)
Updated Research Report (Dated March 2, 2004)
Updated Research Report (Dated December 9, 2003)
Updated Research Report (Dated September 5, 2003)
Updated Research Report (Dated May 12, 2003)
Updated Research Report (Dated January 31, 2003)
Updated Research Report (Dated October 29, 2002)
Updated Research Report (Dated August 1, 2002)
Updated Research Report (Dated May 3, 2002)
Updated Research Report (Dated January 31, 2002)
Updated Research Report (Dated November 15, 2001)
Updated Research Report (Dated August 15, 2001)
Updated Research Report (Dated May 21, 2001)
Updated Research Report (Dated April 3, 2001)
Updated Research Report (Dated November 14, 2000)
Updated Research Report (Dated August 28, 2000)
Updated Research Report (Dated May 15, 2000)
Initial Research Report (Dated January 25, 2000)

Disclaimer

Please view our current disclosure and disclaimer on our most recent research report.