SCHEDULE I — CONDENSED BALANCE SHEETS

Parent Company Information

December 31, 2012 and 2011

(In thousands, except share data)

	December 31, 2012			December 31, 2011
ASSETS
Cash and cash equivalents	$	4,142		$	6,429
Equipment held for operating lease, less accumulated depreciation	266,302			320,240
Equipment held for sale	18,271			14,164
Operating lease related receivable, net of allowances	3,688			3,395
Notes receivable, net of allowances	—			5
Investments	21,831			15,239
Investment in subsidiaries	198,443			148,104
Due from subsidiaries, net	—			2,298
Deferred income taxes	3,164			—
Property, equipment & furnishings, less accumulated depreciation	5,989			6,901
Equipment purchase deposits	1,369			1,369
Other assets, net	9,257			9,722
Total assets	$	532,456		$	527,866

LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities:
Accounts payable and accrued expenses	$	11,313		$	11,375
Due to subsidiaries, net	2,648			—
Liabilities under derivative instruments	1,690			2,789
Deferred income taxes	—			9,555
Notes payable	301,671			252,006
Maintenance reserves	11,787			11,820
Security deposits	1,994			2,676
Unearned lease revenue	1,800			984
Total liabilities	332,903			291,205

Shareholders’ equity:
Preferred stock ($0.01 par value, 5,000,000 shares authorized; 0 and 3,475,000 shares issued and outstanding at December 31, 2012 and 2011, respectively)	—			31,915
Common stock ($0.01 par value, 20,000,000 shares authorized; 8,715,580 and 9,109,663 shares issued and outstanding at December 31, 2012 and 2011, respectively)	87			91
Paid-in capital in excess of par	47,785			56,842
Retained earnings	152,911			156,704
Accumulated other comprehensive loss, net of income tax benefit	(1,230		)	(8,891		)
Total shareholders’ equity	199,553			236,661
Total liabilities and shareholders’ equity	$	532,456		$	527,866

SCHEDULE I — CONDENSED STATEMENTS OF INCOME (LOSS)

Parent Company Information

Years Ended December 31, 2012, 2011 and 2010

(In thousands)

	Years Ended December 31,
	2012			2011			2010
REVENUE
Lease rent revenue	$	30,564		$	36,181		$	28,486
Maintenance reserve revenue	13,139			11,344			11,187
Gain on sale of leased equipment	3,605			7,895			3,782
Other revenue	10,809			12,487			14,586
Total revenue	58,117			67,907			58,041

EXPENSES
Depreciation expense	18,764			17,783			14,800
Write-down of equipment	2,621			2,306			2,874
General and administrative	30,565			34,151			27,917
Technical expense	3,336			3,711			3,720
Net finance costs:
Interest expense	11,471			14,328			15,039
Interest income	—			(40		)	(25		)
Loss on debt extinguishment	94			343			—
Total net finance costs	11,565			14,631			15,014
Total expenses	66,851			72,582			64,325

Loss from operations	(8,734		)	(4,675		)	(6,284		)

Earnings from joint ventures	1,759			1,295			1,109

Loss before income taxes	(6,975		)	(3,380		)	(5,175		)
Income tax benefit/(expense)	2,196			(628		)	1,602

Equity in income of subsidiaries, net of tax of $3,357, $8,902, and $9,232 at December 31, 2012, 2011, and 2010, respectively	6,314			18,516			15,623

Net income	$	1,535		$	14,508		$	12,050

Preferred stock dividends	2,493			3,128			3,128
Preferred stock redemption costs	2,835			—			—

Net income (loss) attributable to common shareholders	$	(3,793	)	$	11,380		$	8,922

SCHEDULE I — CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

Parent Company Information

Years Ended December 31, 2012, 2011 and 2010

(In thousands)

	Twelve Months Ended December 31
	2012			2011			2010
Net income	$	1,535		$	14,508		$	12,050

Other comprehensive income (loss):
Derivative instruments
Unrealized losses on derivative instruments	(1,039		)	(2,145		)	(6,254		)
Reclassification adjustment for losses included in net income	1,901			3,356			5,781
Net gain (loss) recognized in other comprehensive income	862			1,211			(473		)
Tax benefit (expense) related to items of other comprehensive income (loss)	(406		)	(420		)	171

Other comprehensive income (loss) from parent	456			791			(302		)
Other comprehensive income (loss) from subsidiaries	7,205			787			(1,880		)
Total other comprehensive income (loss)	7,661			1,578			(2,182		)
Total comprehensive income	$	9,196		$	16,086		$	9,868

SCHEDULE I — CONDENSED STATEMENTS OF CASH FLOWS

Parent Company Information

Years Ended December 31, 2012, 2011 and 2010

(In thousands)

	Years Ended December 31,
	2012			2011			2010
Cash flows from operating activities:
Net income	$	1,535		$	14,508		$	12,050
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in income of subsidiaries	(6,314		)	(18,516		)	(15,623		)
Depreciation expense	18,764			17,783			14,800
Write-down of equipment	2,621			2,306			2,874
Stock-based compensation expenses	3,144			3,173			2,678
Amortization of deferred costs	2,215			1,360			2,719
Amortization of interest rate derivative cost	(236		)	483			2,956
Allowances and provisions	34			(157		)	(21		)
Gain on sale of leased equipment	(3,605		)	(7,895		)	(3,782		)
Gain on insurance settlement	(173		)	—			—
Gain on sale of interest in joint venture	—			—			(2,020		)
Other non-cash items	—			(1,113		)	—
Income from joint ventures, net of distributions	(957		)	(485		)	(160		)
Non-cash portion of loss on debt extinguishment	94			343			—
Deferred income taxes	(2,196		)	4,325			(2,041		)
Changes in assets and liabilities:
Receivables	(292		)	(1,037		)	(908		)
Notes receivable	5			78			259
Other assets	(1,329		)	(910		)	(2,146		)
Accounts payable and accrued expenses	(2,421		)	(9,066		)	4,473
Due to / from subsidiaries	4,946			553			(546		)
Maintenance reserves	2,898			3,008			(2,590		)
Security deposits	(641		)	759			379
Unearned lease revenue	335			(72		)	144
Net cash provided by operating activities	18,427			9,428			13,495

Cash flows from investing activities:
Increase in investment in subsidiaries	(100,649		)	(1,800		)	(21,814		)
Distributions received from subsidiaries	106,183			22,851			39,314
Proceeds from sale of equipment held for operating lease (net of selling expenses)	21,371			61,309			13,520
Proceeds from sale of interest in joint ventures	—			—			3,500
Investment in joint venture	(5,636		)	(8,943		)	—
Purchase of equipment held for operating lease	(40,465		)	(99,132		)	(25,946		)
Purchase of property, equipment and furnishings	(1,219		)	(904		)	(399		)
Net cash provided by (used in) investing activities	(20,415		)	(26,619		)	8,175

Cash flows from financing activities:
Proceeds from issuance of notes payable	236,392			132,409			120,466
Debt issuance cost	(516		)	(3,565		)	(268		)
Preferred stock dividends	(2,493		)	(3,128		)	(3,128		)
Proceeds from shares issued under stock compensation plans	1,725			672			1,268
Cancellation of restricted stock units in satisfaction of withholding tax	(1,194		)	(968		)	(775		)
Excess tax benefit from stock-based compensation	—			779			422
Redemption of preferred stock	(34,750		)	—			—
Repurchase of common stock	(12,736		)	(5,661		)	(4,156		)
Cash settlement of stock options	—			(1,262		)	—
Principal payments on notes payable	(186,727		)	(97,858		)	(135,309		)
Net cash provided by (used in) financing activities	(299		)	21,418			(21,480		)
Increase/(Decrease) in cash and cash equivalents	(2,287		)	4,227			190
Cash and cash equivalents at beginning of period	6,429			2,202			2,012

Cash and cash equivalents at end of period	$	4,142		$	6,429		$	2,202
Supplemental disclosures of cash flow information:
Net cash paid for:
Interest	$	8,105		$	9,307		$	7,462
Income Taxes	$	101		$	155		$	541
Supplemental disclosures of non-cash investing activities:
During the years ended December 31, 2012, 2011, 2010, engines and equipment totaling $14,156, $17,067 and $70, respectively, were transferred from Held for Operating Lease to Held for Sale but not settled.
During the years ended December 31, 2012, 2011, 2010, engines and equipment totaling $56,562, $2,448 and $14,417, respectively, were transferred from the parent to its subsidiaries.