Capital Lease Aviation PLC: Unaudited Preliminary Results Announcement for the Year Ended 30 June 2013

CLA, the aircraft lessor is pleased to announce its preliminary results for the Company for the year ending 30 June 2013.

Highlights:
Revenue from continuing operations of US$10,835,000;
Group Net post-tax profits up 14 per cent to US$4,041,666;
CLA Group total assets of US$97,668,841;
Net assets of US$45,068,658; and
EPS (fully diluted) from continuing operations of 4.13 cents.

Jeff Chatfield, Chairman, said “It is pleasing that CLA has an enhanced growth profile with both growth in aircraft fleet and profits. A conservative strategy is leading to consistent asset growth.”

Chairman’s Statement

For the Year ended 30 June 2013

We are pleased to report that your Group has delivered a year of stable earnings and is in a sound and liquid financial position for the year ended 30th June 2013. The Directors are pleased to report favourable profit results. Consolidated net profit after tax from continuing operations was US$4,041,666 with earnings per share of 4.13 cents, an increase of 14 per cent compared with the previous year.

In the last year, CLA fully repaid the loan for an Airbus A320 which is on lease to US Airways and as a consequence, the asset has provided an increased and significant cash contribution to the Company. The financial position of the group has improved in the past year with a cash position at the end of the year of US$ 5.7m vs. US$ 2.8m in 2012.

For the first time in several years, CLA has selected and acquired an aircraft, an Airbus A321 on lease to Condor operated in Germany, and as a result total assets have increased by 20.5 per cent to US$ 97.7m. Consequential to the aircraft purchase net debt increased by 33.6 per cent to US$ 45.4m.

Total Equity in the company has increased to US$ 45.1m, an increase of 5.6 per cent – the current Gearing Ratio of the company is now 50.2 per cent which in the director’s view is in line with market practices.

The Company is diligently pursuing new aircraft acquisitions and is in active discussions with our current lessees to extend the current leases. In the coming years, it is possible that the refinancing of some of our assets may allow CLA to increase the Gearing Ratio and therefore use the cash released to allow for further aircraft acquisitions.

The risks in the business include the typical airline industry related risks along with the financial risks associated with leveraged business. The strategy determined by the board of the Company results in the conservative and judicious use of retained earnings and free cash flow, along with gearing, to acquire selected aircraft and lease them to commercial airlines.

The Directors would like to take this opportunity to thank all our shareholders for your continued support and look forward to creating more value for you as we continue to develop our aircraft leasing and investment business.