|
|
 | | | |
- close
- close
- close
- close
These excerpts taken from the AYR 10-K filed Mar 2, 2009. Operating
Expenses
Operating expenses are comprised of depreciation of flight
equipment held for lease, interest expense, selling, general and
administrative expenses, or SG&A, and other expenses.
Since our operating lease terms generally require the lessee to
pay for operating, maintenance and insurance costs, our portion
of other expenses relating to aircraft reflected in our
statement of income has been nominal.
Operating Expenses Operating expenses are comprised of depreciation of flight equipment held for lease, interest expense, selling, general and administrative expenses, or SG&A, and other expenses. Since our operating lease terms generally require the lessee to pay for operating, maintenance and insurance costs, our portion of other expenses relating to aircraft reflected in our statement of income has been nominal. Operating
Expenses:
Total operating expenses increased by 75.3% or
$195.9 million for the year ended December 31, 2008 as
compared to the year ended December 31, 2007 primarily as a
result of the following:
Depreciation expense increased by $75.4 million for
the year ended December 31, 2008 over the same period in
2007 as a result of an increase in the aircraft book value due
to the aircraft acquired in 2007 and 2008 and a full year of
depreciation expense on the 2007 aircraft acquired.
Operating
Expenses:
Total operating expenses increased by 97.0% or
$128.1 million for the year ended December 31, 2007 as
compared to the year ended December 31, 2006 primarily as a
result of the following:
Depreciation expense increased by $73.0 million for
the year ended December 31, 2007 over the same period in
2006 as a result of an increase in the aircraft book value
reflecting the $2.34 billion purchase price for the 65
incremental aircraft and a full year of depreciation expense on
the 2006 aircraft purchased.
Interest, net consisted of the following:
Interest, net increased $43.1 million, or 86.9%, over the
year ended December 31, 2006. The increase reflects a
higher average debt balance of $1.64 billion during the
year ended December 31, 2007 as compared to
$747.4 million during the same period in 2006. This was
partially offset by higher interest income on our cash and cash
equivalents of $6.0 million resulting from higher interest
rates during the year ended December 31, 2007 as compared
to the same period in 2006, and by $7.3 million in
capitalized interest related to accelerated payments and
progress payments made in respect to flight equipment on forward
order under the GAIF Acquisition Agreement and the Airbus A330
Agreement. In addition, interest expense was impacted during the
year ended December 31, 2006 by the write off
$1.8 million of deferred financing fees related upon the
payment and termination of Credit Facility No. 1.
Selling, general and administrative expenses, or SG&A,
for the year ended December 31, 2007 increased by
$11.2 million, or 40.3% over the same period in 2006. This
increase was due mainly to an increase in personnel costs of
$8.7 million, related to the full year impact in 2007 for
the 16 employees hired in 2006 and the increased headcount from
45 at December 31, 2006 to 69 at December 31, 2007, an
increase in professional fees of $2.7 million, consisting
primarily of auditing and tax compliance fees, and a net
decrease of $0.2 million in other expenses. Non-cash share
based expense was $8.9 million
Table of Contents
(including $3.4 million in compensation to a director for
the purchase of common shares below fair value) and
$6.7 million (including $1.7 million due to the
acceleration of unvested shares for a former employee),
respectively, for the years ended December 31, 2006 and
2007. SG&A as a percentage of total assets was 1.5% for the
year ended December 31, 2006 and 0.9% for the year ended
December 31, 2007.
Other expense increased by $0.8 million for the year
ended December 31, 2007 over the same period in 2006
primarily as a result of an increase in flight equipment
insurance.
Operating Expenses: Total operating expenses increased by 75.3% or $195.9 million for the year ended December 31, 2008 as compared to the year ended December 31, 2007 primarily as a result of the following: Depreciation expense increased by $75.4 million for the year ended December 31, 2008 over the same period in 2007 as a result of an increase in the aircraft book value due to the aircraft acquired in 2007 and 2008 and a full year of depreciation expense on the 2007 aircraft acquired. Operating Expenses: Total operating expenses increased by 97.0% or $128.1 million for the year ended December 31, 2007 as compared to the year ended December 31, 2006 primarily as a result of the following: Depreciation expense increased by $73.0 million for the year ended December 31, 2007 over the same period in 2006 as a result of an increase in the aircraft book value reflecting the $2.34 billion purchase price for the 65 incremental aircraft and a full year of depreciation expense on the 2006 aircraft purchased. Interest, net consisted of the following:
Interest, net increased $43.1 million, or 86.9%, over the year ended December 31, 2006. The increase reflects a higher average debt balance of $1.64 billion during the year ended December 31, 2007 as compared to $747.4 million during the same period in 2006. This was partially offset by higher interest income on our cash and cash equivalents of $6.0 million resulting from higher interest rates during the year ended December 31, 2007 as compared to the same period in 2006, and by $7.3 million in capitalized interest related to accelerated payments and progress payments made in respect to flight equipment on forward order under the GAIF Acquisition Agreement and the Airbus A330 Agreement. In addition, interest expense was impacted during the year ended December 31, 2006 by the write off $1.8 million of deferred financing fees related upon the payment and termination of Credit Facility No. 1. Selling, general and administrative expenses, or SG&A, for the year ended December 31, 2007 increased by $11.2 million, or 40.3% over the same period in 2006. This increase was due mainly to an increase in personnel costs of $8.7 million, related to the full year impact in 2007 for the 16 employees hired in 2006 and the increased headcount from 45 at December 31, 2006 to 69 at December 31, 2007, an increase in professional fees of $2.7 million, consisting primarily of auditing and tax compliance fees, and a net decrease of $0.2 million in other expenses. Non-cash share based expense was $8.9 million
Table of Contents(including $3.4 million in compensation to a director for the purchase of common shares below fair value) and $6.7 million (including $1.7 million due to the acceleration of unvested shares for a former employee), respectively, for the years ended December 31, 2006 and 2007. SG&A as a percentage of total assets was 1.5% for the year ended December 31, 2006 and 0.9% for the year ended December 31, 2007. Other expense increased by $0.8 million for the year ended December 31, 2007 over the same period in 2006 primarily as a result of an increase in flight equipment insurance. This excerpt taken from the AYR 10-Q filed Nov 17, 2008. Operating
Expenses:
Total operating expenses increased by 90.2% or
$158.8 million for the nine months ended September 30,
2008 as compared to the nine months ended September 30,
2007 primarily as a result of the following:
Depreciation expense increased by $67.5 million for
the first nine months of 2008 over the same period in 2007 as a
result of an increase in our owned aircraft portfolio from 109
aircraft at September 30, 2007 to 133 aircraft at
September 30, 2008 reflecting the $1.15 billion paid
to purchase 24 incremental aircraft.
Interest, net consisted of the following :
Interest, net increased $83.3 million, or 131.9%,
over the nine months ended September 30, 2007. The increase
reflects a higher average debt balance of $2.8 billion
during the nine months ended September 30, 2008 as compared
to $1.5 billion in the same period in 2007. In addition,
during the nine months ended September 30, 2008, interest
expense was impacted by charges for hedge breakage and
ineffectiveness of $18.7 million and the write off
$0.8 million of debt issuance costs related to the
reduction in the commitments of the lenders under our Amended
Credit Facility No. 2 and the early termination of the
2008-A
Credit facility. We also recorded lower interest income on our
cash and cash equivalents of $4.0 million resulting from a
lower interest rate during the nine months ended
September 30, 2008 as compared to the same period in 2007.
This was partially offset by an increase of $2.3 million in
capitalized interest related to accelerated payments and
progress payments made in respect to flight equipment on forward
order under the GAIF Acquisition Agreement and the
Airbus A330 Agreement.
Selling, general and administrative expenses, or SG&A,
for the first nine months of 2008 increased by
$7.2 million, or 26.2% over the first nine months of 2007.
This increase was due mainly to an increase in personnel costs
of $2.9 million, related to increased headcount from 65 at
September 30, 2007 to 77 at September 30, 2008, an
increase in professional fees of $1.9 million, consisting
primarily of auditing and tax compliance fees, and an increase
of $2.4 million in other expenses. Non-cash share based
expense was $5.3 million, including $1.7 million due
to the acceleration of unvested shares for a
Table of Contents
former employee, and $4.9 million, respectively, for the
nine months ended September 30, 2007 and 2008. SG&A as
a percentage of total assets was 0.8% for both the nine months
ended September 30, 2007 and 2008. We expect that there
will be quarter-to-quarter variations in SG&A throughout
the year driven, in part, by the timing of certain professional
fees incurred during the year.
Other Expense increased $0.9 million primarily as a
result of an increase in flight equipment insurance and an
increase in flight equipment repair and maintenance expense.
This excerpt taken from the AYR 10-Q filed Aug 8, 2008. Operating
Expenses:
Total operating expenses increased by 105.6% or
$111.1 million for the six months ended June 30, 2008
as compared to the six months ended June 30, 2007 primarily
as a result of the following:
Depreciation expense increased by $50.4 million for
the first six months of 2008 over the same period in 2007 as a
result of an increase in our owned aircraft portfolio from 100
aircraft at June 30, 2007 to 135 aircraft at June 30,
2008 reflecting the $1.53 billion paid to purchase 35
incremental aircraft.
Interest, net consisted of the following :
Interest, net increased $56.3 million, or 155.9%,
over the six months ended June 30, 2007. The increase
reflects a higher average debt balance of $2.8 billion
during the six months ended June 30, 2008 as compared to
$1.3 billion in the same period in 2007. In addition,
during the six months ended June 30, 2008, interest expense
was impacted by charges for hedge breakage and ineffectiveness
of $6.0 million and the write off $0.8 million of debt
issuance costs related to the reduction in the commitments of
the lenders under our Amended Credit Facility No. 2 and the
early termination of the
2008-A
Credit facility. We also recorded lower interest income on our
cash and cash equivalents of $1.3 million resulting from a
lower interest rate during the six months ended June 30,
2008 as compared to the same period in 2007. This was partially
offset by $4.4 million in capitalized interest related to
accelerated payments and progress payments made in respect to
flight equipment on forward order under the GAIF Acquisition
Agreement and the Airbus A330 Agreement. We did not capitalize
any interest during the six months ended June 30, 2007.
Selling, general and administrative expenses, or SG&A,
for the first six months of 2008 increased by
$3.9 million, or 20.6% over the first six months of 2007.
This increase was due mainly to an increase in personnel costs
of $1.5 million, related to increased headcount from 59 at
June 30, 2007 to 73 at June 30, 2008, an increase in
professional fees of $1.0 million, consisting primarily of
auditing and tax compliance fees, and an increase of
$1.4 million in other expenses. Non-cash share based
expense was $4.0 million, including $1.7 million due
to the acceleration of unvested shares for a former employee,
and $3.2 million, respectively, for the six months ended
June 30, 2007 and 2008. SG&A as of percentage of total
assets was 0.5% for both the six months ended June 30, 2007
and 2008. We expect that there will be quarter-to-quarter
variations in SG&A throughout the year driven, in part, by
the timing of certain professional fees incurred during the year.
Other Expense increased $0.5 million primarily as a
result of an increase in flight equipment insurance.
Table of Contents
This excerpt taken from the AYR 8-K filed Sep 26, 2007. Operating Expenses Operating expenses are comprised of depreciation of flight equipment held for lease, interest expense, selling, general and administrative expenses, or SG&A, and other expenses. As we continue to grow, we expect that depreciation of flight equipment held for lease and interest expense will grow proportionately with revenue growth. We also expect that SG&A will decline as a percentage of revenues as we leverage our existing infrastructure over a greater revenue base. Since our operating lease terms generally require the lessee to pay for operating, maintenance and insurance costs, our portion of other expenses relating to aircraft reflected in our statement of operations has been nominal.
14
| EXCERPTS ON THIS PAGE:
RELATED TOPICS for AYR: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| |||||||
