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AeroCentury Corp. (ACY) Research Update Released

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New York, NY - March 26, 2014 ( newswire) Taglich Brothers released an updated research report on AeroCentury Corp., (ACY) and reiterated a Speculative Buy rating with the 12-month price target lowered to $19.40 per share from $20.00 due to lower sector valuation. The report noted the following key investment considerations:

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  • Since 2012 ACY has diversified its operating revenue, expanding in Asia and Africa from Europe/UK and North America. The diversification effort continued with the purchase of four Bombardier Canadair CRJ700 series regional aircraft since 4Q13. The CRJ700 series should support an increase in average monthly lease revenue in 2015.
  • In 2014, we increased our prior projection by one to 35 aircraft/engines on lease for a majority of the year. ACY has four leases set to expire by June 30 2014, which we anticipate should be extended.
  • 4Q13 lease revenue (reported on 3-11-14) decreased by 22.6% to $4.9 million. Net loss was ($0.90) per share compared to a profit of $1.14 per share in the year-ago quarter. Sales were $278,000 above our forecast. We projected a small profit. The loss was due to an unanticipated increase in maintenance costs by $1.8 million to $2.5 million.
  • We project 2014 lease revenue to increase by 6.9% to $20.1 million or a $100,000 reduction from our prior forecast. We increased assets on lease by one but decreased the average lease rate by $21,000 to $574,000. Our loss projection of ($0.26) per share is down from our prior forecast of $2.22 per share. The loss includes higher than anticipated maintenance, interest, and depreciation expense due to the purchase of four aircraft and return of older aircraft in the 2H14.
  • We project 2015 lease revenue to increase by 3.9% to $20.9 million due to 36 assets on lease and an increase in the average lease rate by $14,000 to $588,000. Our EPS projection of $1.63 per share reflects a $2.8 million reduction in maintenance expense from our 2014 forecast of $5.8 million.

The full report can be viewed at

Company Description:

AeroCentury Corp., (ACY) is engaged in the business of ownership, management, leasing and acquisition of aircraft, focused on used commercial turboprop aircraft equipment for lease to domestic and foreign regional air carriers.

Taglich Brothers:

Taglich Brothers, Inc. is full-service broker dealer focused exclusively on microcap companies. The Company defines the microcap segment of the equity market as companies with less than $250 million in market capitalization. Taglich Brothers currently offers institutional and retail brokerage services, investment banking and comprehensive research coverage to the investment community.

The Taglich Brothers' Equity Research department is dedicated to providing research reports that are informative, insightful and illuminating. Reports are designed to distill volumes of investment information into a concise, straightforward format so that busy professional investors can make informed investment decisions.


The information and statistical data contained herein have been obtained from sources, which we believe to be reliable but in no way are warranted by us as to accuracy or completeness. We do not undertake to advise you as to changes in figures or our views. This is not a solicitation of any order to buy or sell. Taglich Brothers, Inc. is fully disclosed with its clearing firm, Pershing, LLC, is not a market maker and does not sell to or buy from customers on a principal basis. The above statements are the opinion of Taglich Brothers, Inc. and are not a guarantee that the target price for the stock will be met or that predicted business results for the company will occur. There may be instances when fundamental, technical and quantitative opinions contained in the reports are not in concert. We, our affiliates, any officer, director or stockholder or any member of their families may from time to time purchase or sell any of the above-mentioned or related securities. Analysts and members of the Research Department are prohibited from buying or selling securities issued by the companies that Taglich Brothers, Inc. has a research relationship with, except if ownership of such securities was prior to the start of such relationship, then an Analyst or member of the Research Department may sell such securities after obtaining expressed written permission from Compliance. All research issued by Taglich Brothers, Inc. is based on public information. Taglich Brothers, Inc. does not currently have an Investment Banking relationship with the company mentioned and was not a manager or co-manager of any offering for the company within the last three years. In July 2012 the company paid an initial monetary engagement fee of US$9,000 to Taglich Brothers, Inc. representing payment for six months of creation and dissemination of research reports. In July 2013 the company paid another monetary engagement fee of $4,500 to Taglich Brothers, Inc. representing payment for three months of the creation and dissemination of research reports, after which the company will pay Taglich Brothers, Inc. a monetary fee of US$1,500 per month for a minimum of nine more months for such services.

Contact Information

Richard Oh

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