We have limited operating history and we are therefore subject to the risks generally associated with the formation of any new business. for Aircastle (AYR)

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Aircastle (AYR)

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AYR » Topics » We have limited operating history and we are therefore subject to the risks generally associated with the formation of any new business.

These excerpts taken from the AYR 10-K filed Mar 2, 2009.

We have limited operating history and we are therefore subject to the risks generally associated with the formation of any new business.

We were incorporated in October 2004, prior to which we had no operations or assets. We are therefore subject to the risks generally associated with the formation of any new business, including the risk that we will not be able to implement our business strategies. Because of our limited operating history, it may be difficult for investors to assess the quality of our management team and our results of operations, and our financial performance to date may not be indicative of our long-term future performance. Furthermore, because our annual historical financial statements are available for only 2005, 2006, 2007 and 2008, investors may find it more difficult to evaluate our performance and assess our future prospects than they may otherwise were such information available for a longer period of time. In addition, over our brief history we have incurred a net loss of approximately $1.5 million for the period from October 29, 2004 through December 31, 2004, net income of approximately $0.2 million for the year ended December 31, 2005, and while we have recorded net income in each quarter thereafter, we may not be able to maintain and/or increase profitability in the future. In addition, although we have grown substantially since our inception, there can be no assurance that we will be able to continue to effectively integrate acquired aircraft, including significant acquisitions such as the acquisitions of the New A330 Aircraft.

We have significant customer concentration and defaults by one or more of our major customers could trigger accelerated amortization or defaults under our financings and could have a material adverse effect on our cash flow and earnings and our ability to meet our debt obligations and pay dividends on our common shares.

Lease rental revenue for the year ended December 31, 2008 from our five largest customers, US Airways, Inc., Martinair, Emirates, Sterling Airlines A/S, and Icelandair and its affiliates, accounted for 28% of our lease rental revenue. The lease rental revenue for these five customers as a percent for that

period was approximately 8%, 7%, 5%, 4% and 4%, respectively. Sterling Airlines A/S ceased operations on October 29, 2008 and we repossessed the seven Boeing 737-700 aircraft we leased to it. The loss of one or more of our other customers or their inability to make operating lease payments due to financial difficulties, bankruptcy or otherwise could have a material adverse effect on our cash flow and earnings, could result in a breach of loan to value, debt service coverage or interest coverage tests in our long-term debt financings, resulting in accelerated amortization or defaults and materially and adversely affecting our ability to meet our debt obligations and pay dividends on our common shares.

We
have limited operating history and we are therefore subject to
the risks generally associated with the formation of any new
business.

We were incorporated in October 2004, prior to which we had no
operations or assets. We are therefore subject to the risks
generally associated with the formation of any new business,
including the risk that we will not be able to implement our
business strategies. Because of our limited operating history,
it may be difficult for investors to assess the quality of our
management team and our results of operations, and our financial
performance to date may not be indicative of our long-term
future performance. Furthermore, because our annual historical
financial statements are available for only 2005, 2006, 2007 and
2008, investors may find it more difficult to evaluate our
performance and assess our future prospects than they may
otherwise were such information available for a longer period of
time. In addition, over our brief history we have incurred a net
loss of approximately $1.5 million for the period from
October 29, 2004 through December 31, 2004, net income
of approximately $0.2 million for the year ended
December 31, 2005, and while we have recorded net income in
each quarter thereafter, we may not be able to maintain
and/or
increase profitability in the future. In addition, although we
have grown substantially since our inception, there can be no
assurance that we will be able to continue to effectively
integrate acquired aircraft, including significant acquisitions
such as the acquisitions of the New A330 Aircraft.

We
have significant customer concentration and defaults by one or
more of our major customers could trigger accelerated
amortization or defaults under our financings and could have a
material adverse effect on our cash flow and earnings and our
ability to meet our debt obligations and pay dividends on our
common shares.

Lease rental revenue for the year ended December 31, 2008
from our five largest customers, US Airways, Inc., Martinair,
Emirates, Sterling Airlines A/S, and Icelandair and its
affiliates, accounted for 28% of our lease rental revenue. The
lease rental revenue for these five customers as a percent for
that

period was approximately 8%, 7%, 5%, 4% and 4%, respectively.
Sterling Airlines A/S ceased operations on October 29, 2008
and we repossessed the seven Boeing
737-700
aircraft we leased to it. The loss of one or more of our other
customers or their inability to make operating lease payments
due to financial difficulties, bankruptcy or otherwise could
have a material adverse effect on our cash flow and earnings,
could result in a breach of loan to value, debt service coverage
or interest coverage tests in our long-term debt financings,
resulting in accelerated amortization or defaults and materially
and adversely affecting our ability to meet our debt obligations
and pay dividends on our common shares.

This excerpt taken from the AYR 10-Q filed Nov 17, 2008.

We have limited operating history and we are therefore subject to the risks generally associated with the formation of any new business.

We were incorporated in October 2004, prior to which we had no operations or assets. We are therefore subject to the risks generally associated with the formation of any new business, including

the risk that we will not be able to implement our business strategies. Because of our limited operating history, it may be difficult for investors to assess the quality of our management team and our results of operations, and our financial performance to date may not be indicative of our long-term future performance. Furthermore, because our annual historical financial statements are available for only 2005, 2006 and 2007, investors may find it more difficult to evaluate our performance and assess our future prospects than they may otherwise were such information available for a longer period of time. In addition, over our brief history we have incurred a net loss of approximately $1.5 million for the period from October 29, 2004 through December 31, 2004, net income of approximately $0.2 million for the year ended December 31, 2005, and while we have recorded net income in each quarter thereafter, we may not be able to maintain and/or increase profitability in the future. In addition, although we have grown substantially since our inception, there can be no assurance that we will be able to continue to effectively integrate acquired aircraft, including significant acquisitions such as the acquisitions of the New A330 Aircraft.

Lease rental revenue for the quarter ended September 30, 2008 from our five largest customers, US Airways, Inc., Martinair, Emirates, US Airways, Inc., Air India and Sterling Airlines A/S, accounted for 28% of our total revenue. The lease rental revenue as a percent of our total revenue, for these five customers for that period was approximately 8%, 7%, 5%, 4% and 4%, respectively. Sterling Airlines A/S ceased operations on October 29, 2008 and we are seeking the return of seven Boeing 737-700 aircraft we leased to Sterling Airlines A/S. The loss of one or more of the other customers or their inability to make operating lease payments due to financial difficulties, bankruptcy or otherwise could have a material adverse effect on our cash flow and earnings, could result in a breach of loan to value, debt service coverage or interest coverage tests in our long-term debt financings, resulting in accelerated amortization or defaults and materially and adversely affecting our ability to meet our debt obligations and pay dividends on our common shares.

EXCERPTS ON THIS PAGE:

10-K (2 sections)	Mar 2, 2009

10-Q	Nov 17, 2008

Aircastle (AYR)

AYR » Topics » We have limited operating history and we are therefore subject to the risks generally associated with the formation of any new business.

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