Air Lease Corporation (ALC) (NYSE: AL) announces financial
results for the three months and year ended December 31,
2021.
“We had a strong fourth quarter and second half of 2021 that
benefited from continuing airline industry recovery, as seen in our
cash collections, operating metrics, fleet expansion, and record
lease placements. We resumed our aircraft sales program and
concluded the largest aircraft order in ALC’s history to support
the growing demand we are seeing in the marketplace,” said John L.
Plueger, Chief Executive Officer and President.
“We are witnessing strengthening lease rates overall across the
spectrum of new and used aircraft, including improvement in
widebody lease rates being positively influenced by the exceptional
strength in the freight market. Reflecting continued confidence in
our future and profitability, our Board of Directors has approved a
$150 million common share repurchase authorization, in addition to
our 37th consecutive quarterly dividend,” said Steven F.
Udvar-Házy, Executive Chairman of the Board.
Fourth Quarter and Fiscal Year 2021
Results
The following table summarizes our operating results for the
three months and year ended December 31, 2021 and 2020 (in
millions, except per share amounts and percentages):
Operating Results
Three Months Ended
December 31,
Year Ended
December 31,
2021
2020
$ change
% change
2021
2020
$ change
% change
Revenues
$
597
$
489
$
108
22.1
%
$
2,088
$
2,015
$
73
3.6
%
Income before taxes
188
138
50
36.2
%
541
647
(106
)
(16.4
)%
Net income available to common
stockholders
142
107
35
32.7
%
408
501
(93
)
(18.6
)%
Adjusted net income before income
taxes(1)
200
148
52
35.1
%
590
692
(102
)
(14.7
)%
Diluted earnings per share
$
1.24
$
0.94
$
0.3
31.9
%
$
3.57
$
4.39
$
(0.82
)
(18.7
)%
Adjusted diluted earnings per share before
income taxes(1)
$
1.75
$
1.30
$
0.45
34.6
%
$
5.15
$
6.07
$
(0.92
)
(15.2
)%
Key Financial Ratios
Three Months Ended
December 31,
Year Ended
December 31,
2021
2020
2021
2020
Pre-tax profit margin
31.5
%
28.2
%
25.9
%
32.1
%
Adjusted pre-tax profit margin(1)
33.5
%
30.3
%
28.2
%
34.3
%
Pre-tax return on common equity (trailing
twelve months)
8.6
%
11.3
%
8.6
%
11.3
%
Adjusted pre-tax return on common equity
(trailing twelve months)(1)
9.8
%
12.4
%
9.8
%
12.4
%
(1)
Adjusted net income before income taxes,
adjusted diluted earnings per share before income taxes, adjusted
pre-tax profit margin and adjusted pre-tax return on common equity
have been adjusted to exclude the effects of certain non-cash
items, one-time or non-recurring items, that are not expected to
continue in the future and certain other items. See note 1 under
the Consolidated Statements of Income included in this earnings
release for a discussion of the non-GAAP measures and a
reconciliation to their most comparable GAAP financial
measures.
Highlights
- Finalized agreements with Airbus to purchase a total of 116
aircraft, including 59 A321neos, 25 A220-300s, 20 A321XLRs, seven
A350Fs and five A330-900s. This represented the largest individual
order for new aircraft in our Company's history.
- In February 2022, we agreed to purchase from Boeing 50 737 MAX
aircraft, consisting of 32 incremental 737 MAX aircraft and 18 737
MAX aircraft resulting from the conversion of three 787 aircraft.
Deliveries of the aircraft are scheduled to commence in 2024 and
continue through 2026.
- Issued $3.7 billion of senior unsecured medium-term notes in
2021 with a weighted average interest rate of 1.27% and ended the
year with total liquidity(1) of $7.9 billion.
- Took delivery of 15 aircraft from our order book during the
fourth quarter, representing $1.2 billion in aircraft investments.
As of December 31, 2021, we had 382 aircraft in our owned fleet,
with a net book value of $22.9 billion, a weighted average age of
4.4 years and a weighted average lease term remaining of 7.2
years.
- Placed 99% of our contracted orderbook positions on long-term
leases for aircraft delivering through the end of 2023 and have
placed 58% of our entire orderbook.
- Ended the year with $30.9 billion in committed minimum future
rental payments consisting of $14.8 billion in contracted minimum
rental payments on the aircraft in our existing fleet and $16.1
billion in minimum future rental payments related to aircraft on
order.
- Collection rate(2) for the three and twelve months ended
December 31, 2021 was 99.3% and 91.4%, respectively. This
contributed to the 26.3% increase in our operating cash flow for
the year ended December 31, 2021.
- Lease utilization rate(3) for the three and twelve months ended
December 31, 2021 was 99.8%.
- On February 15, 2022, our board of directors authorized a share
repurchase program of up to $150.0 million of our Class A common
stock. The program expires on September 30, 2022.
- On February 15, 2022, our board of directors declared a
quarterly cash dividend of $0.185 per share on our outstanding
common stock. The dividend will be paid on April 7, 2022 to holders
of record of our common stock as of March 18, 2022.
Financial Overview
Our total revenues for the year ended December 31, 2021
increased by 3.6% to $2.1 billion as compared to the year ended
December 31, 2020. The increase in total revenues was primarily
driven by the continued growth in our fleet, an increase in our
cash collections from our lessees, as well as an increase in our
aircraft sales, trading and other activity, partially offset by the
impact of cash basis accounting and lease restructurings. The
impact of cash basis accounting and lease restructurings for the
year ended December 31, 2021 resulted in a decrease in revenue of
$72.7 million and $132.5 million, respectively. Our net income
available to common stockholders for the year ended December 31,
2021 was $408.2 million compared to $500.9 million for the year
ended December 31, 2020. Our diluted earnings per share for the
year ended December 31, 2021 was $3.57 compared to $4.39 for the
year ended December 31, 2020. Despite the growth of our fleet, our
net income available to common stockholders and diluted earnings
per share decreased primarily due to the impact of lease
restructurings and cash basis accounting.
—————————————————————— (1)
We define liquidity as unrestricted cash
plus available borrowing capacity under our unsecured committed
revolving credit facility.
(2)
Collection rate is defined as the sum of
cash collected from lease rentals and maintenance reserves, and
includes cash recovered from outstanding receivables from previous
periods, as a percentage of the total contracted receivables due
for the period. The collection rate is calculated after giving
effect to lease deferral arrangements made as of December 31,
2021.
(3)
Lease utilization rate is calculated based
on the number of days each aircraft was subject to a lease or
letter of intent during the period, weighted by the net book value
of the aircraft.
Flight Equipment
Portfolio
Our fleet grew by 12.4% to a net book value of $22.9 billion as
of December 31, 2021 compared to $20.4 billion as of December 31,
2020. As of December 31, 2021, we owned 382 aircraft in our
aircraft portfolio, comprised of 278 narrowbody aircraft and 104
widebody aircraft. The weighted average fleet age and weighted
average remaining lease term of our fleet as of December 31, 2021
was 4.4 years and 7.2 years, respectively. We have a globally
diversified customer base of 118 airlines in 60 countries.
During the quarter ended December 31, 2021, we took delivery of
15 new aircraft, representing approximately $1.2 billion in
aircraft investments.
The following table summarizes the key portfolio metrics of our
fleet as of December 31, 2021 and 2020:
December 31, 2021
December 31, 2020
Net book value of flight equipment subject
to operating leases
$ 22.9 billion
$ 20.4 billion
Weighted-average fleet age(1)
4.4 years
4.1 years
Weighted-average remaining lease
term(1)
7.2 years
6.9 years
Owned fleet
382
332
Managed fleet
92
81
Aircraft on order(2)(3)
431
361
Aircraft purchase options(4)
—
25
Total
905
799
Current fleet contracted rentals
$ 14.8 billion
$ 13.6 billion
Committed fleet rentals
$ 16.1 billion
$ 13.2 billion
Total committed rentals
$ 30.9 billion
$ 26.8 billion
(1)
Weighted-average fleet age and remaining
lease term calculated based on net book value of our flight
equipment subject to operating lease.
(2)
The table above reflects the conversion of
three 787-9 aircraft to 18 737 MAX aircraft pursuant to a February
2022 agreement with Boeing.
(3)
Excluded from the table above are orders
for 32 Boeing 737 MAX aircraft pursuant to a February 2022
memorandum of understanding signed with Boeing.
(4)
As of December 31, 2021, we did not have
any options to acquire aircraft. As of December 31, 2020, we had
options to acquire up to 25 Airbus A220 aircraft.
The following table details the region concentration of our
flight equipment subject to operating lease:
December 31, 2021
December 31, 2020
Region
% of Net Book Value
% of Net Book Value
Europe
32.5 %
31.4 %
Asia (excluding China)
26.0 %
27.1 %
China
12.8 %
13.5 %
The Middle East and Africa
10.7 %
11.6 %
U.S. and Canada
7.2 %
6.4 %
Central America, South America, and
Mexico
6.8 %
5.3 %
Pacific, Australia, and New Zealand
4.0 %
4.7 %
Total
100.0 %
100.0 %
The following table details the composition of our owned fleet
by aircraft type:
December 31, 2021
December 31, 2020
Aircraft type
Number of
Aircraft
% of Total
Number of
Aircraft
% of Total
Airbus A319-100
1
0.3
%
1
0.3
%
Airbus A320-200
31
8.1
%
31
9.4
%
Airbus A320-200neo
23
6.0
%
19
5.7
%
Airbus A321-200
26
6.8
%
28
8.4
%
Airbus A321-200neo
69
18.1
%
49
14.8
%
Airbus A330-200
13
3.4
%
13
3.9
%
Airbus A330-300
8
2.1
%
8
2.4
%
Airbus A330-900neo
9
2.4
%
8
2.4
%
Airbus A350-900
12
3.1
%
11
3.3
%
Airbus A350-1000
5
1.3
%
2
0.6
%
Boeing 737-700
4
1.0
%
4
1.2
%
Boeing 737-800
88
23.0
%
88
26.5
%
Boeing 737-8 MAX
28
7.3
%
15
4.5
%
Boeing 737-9 MAX
7
1.8
%
—
—
%
Boeing 777-200ER
1
0.3
%
1
0.3
%
Boeing 777-300ER
24
6.3
%
24
7.2
%
Boeing 787-9
26
6.8
%
23
7.0
%
Boeing 787-10
6
1.6
%
6
1.8
%
Embraer E190
1
0.3
%
1
0.3
%
Total
382
100.0
%
332
100.0
%
Debt Financing
Activities
We ended the fourth quarter of 2021 with total debt financing,
net of discounts and issuance costs, of $17.0 billion, resulting in
a debt to equity ratio of 2.43:1. We ended the fourth quarter of
2021 with an aggregate borrowing capacity under our Revolving
Credit Facility of $6.8 billion and total liquidity of $7.9
billion. As of December 31, 2021, 94.8% of our total debt financing
was at a fixed rate and 99.2% was unsecured. As of December 31,
2021, our composite cost of funds was 2.79%.
As of the end of the periods presented, our debt portfolio was
comprised of the following components (dollars in millions):
December 31, 2021
December 31, 2020
Unsecured
Senior notes
$
16,892
$
15,583
Term financings
167
812
Revolving credit facility
—
—
Total unsecured debt financing
17,059
16,395
Secured
Term financings
127
276
Export credit financing
18
25
Total secured debt financing
145
301
Total debt financing
17,204
16,696
Less: Debt discounts and issuance
costs
(182
)
(178
)
Debt financing, net of discounts and
issuance costs
$
17,022
$
16,518
Selected interest rates and
ratios:
Composite interest rate(1)
2.79
%
3.13
%
Composite interest rate on fixed rate
debt(1)
2.90
%
3.26
%
Percentage of total debt at fixed rate
94.80
%
93.02
%
(1)
This rate does not include the effect of
upfront fees, facility fees, undrawn fees or amortization of debt
discounts and issuance costs.
Conference Call
In connection with this earnings release, Air Lease Corporation
will host a conference call on February 17, 2022 at 4:30 PM Eastern
Time to discuss the Company's financial results for the fourth
quarter and year end 2021.
Investors can participate in the conference call by dialing
(855) 308-8321 domestic or (330) 863-3465 international. The
passcode for the call is 4160718.
The conference call will also be broadcast live through a link
on the Investor Relations page of the Air Lease Corporation website
at www.airleasecorp.com. Please visit the website at least 15
minutes prior to the call to register, download and install any
necessary audio software. A replay of the broadcast will be
available on the Investor Relations page of the Air Lease
Corporation website.
For your convenience, the conference call can be replayed in its
entirety beginning at 7:30 PM ET on February 17, 2022 until 7:30 PM
ET on March 1, 2022. If you wish to listen to the replay of this
conference call, please dial (855) 859-2056 domestic or (404)
537-3406 international and enter passcode 4160718.
About Air Lease Corporation (NYSE: AL)
Air Lease Corporation is a leading aircraft leasing company
based in Los Angeles, California that has airline customers
throughout the world. ALC and its team of dedicated and experienced
professionals are principally engaged in purchasing commercial
aircraft and leasing them to its airline customers worldwide
through customized aircraft leasing and financing solutions. ALC
routinely posts information that may be important to investors in
the “Investors” section of ALC’s website at www.airleasecorp.com.
Investors and potential investors are encouraged to consult the ALC
website regularly for important information about ALC. The
information contained on, or that may be accessed through, ALC’s
website is not incorporated by reference into, and is not a part
of, this press release.
Forward-Looking Statements
This press release contains statements that constitute
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. Those statements appear
in a number of places in this press release and include statements
regarding, among other matters, the state of the airline industry,
the impact of the coronavirus (“COVID-19”) pandemic on us, our
lessees and aircraft manufacturers, our anticipated capital
expenditures and aircraft sales, our access to the capital markets,
aircraft delivery delays and other factors affecting our financial
condition or results of operations. Words such as “can,” “could,”
“may,” “predicts,” “potential,” “will,” “projects,” “continuing,”
“ongoing,” “expects,” “anticipates,” “intends,” “plans,”
“believes,” “seeks,” “estimates” and “should,” and variations of
these words and similar expressions, are used in many cases to
identify these forward-looking statements. Any such forward-looking
statements are not guarantees of future performance and involve
risks, uncertainties, and other factors that may cause our actual
results, performance or achievements, or industry results to vary
materially from our future results, performance or achievements, or
those of our industry, expressed or implied in such forward-looking
statements. Such factors include, among others:
- the extent to which the COVID-19 pandemic and measures taken to
contain its spread ultimately impact our business, results of
operation and financial condition;
- our inability to obtain additional capital on favorable terms,
or at all, to acquire aircraft, service our debt obligations and
refinance maturing debt obligations;
- increases in our cost of borrowing or changes in interest
rates;
- our inability to generate sufficient returns on our aircraft
investments through strategic acquisition and profitable
leasing;
- the failure of an aircraft or engine manufacturer to meet its
delivery obligations to us, including or as a result of technical
or other difficulties with aircraft before or after delivery;
- obsolescence of, or changes in overall demand for, our
aircraft;
- changes in the value of, and lease rates for, our aircraft,
including as a result of aircraft oversupply, manufacturer
production levels, our lessees’ failure to maintain our aircraft,
and other factors outside of our control;
- impaired financial condition and liquidity of our lessees,
including due to lessee defaults and reorganizations, bankruptcies
or similar proceedings;
- increased competition from other aircraft lessors;
- the failure by our lessees to adequately insure our aircraft or
fulfill their contractual indemnity obligations to us;
- increased tariffs and other restrictions on trade;
- changes in the regulatory environment, including changes in tax
laws and environmental regulations;
- other events affecting our business or the business of our
lessees and aircraft manufacturers or their suppliers that are
beyond our or their control, such as the threat or realization of
epidemic diseases in addition to COVID-19, natural disasters,
terrorist attacks, war or armed hostilities between countries or
non-state actors; and
- the factors discussed under “Part I – Item 1A. Risk Factors,”
in our Annual Report on Form 10-K for the year ended December 31,
2021 and other SEC filings, including future SEC filings.
The factors noted above and the risks included in our other SEC
filings may be increased or intensified as a result of the COVID-19
pandemic, including as a result of ongoing resurgences of the
COVID-19 virus and its variants. The extent to which the COVID-19
pandemic ultimately impacts our business, results of operations and
financial condition will depend on future developments, which are
highly uncertain and cannot be predicted. All forward-looking
statements are necessarily only estimates of future results, and
there can be no assurance that actual results will not differ
materially from expectations. You are therefore cautioned not to
place undue reliance on such statements. Any forward-looking
statement speaks only as of the date on which it is made, and we
undertake no obligation to update any forward-looking statement to
reflect events or circumstances after the date on which the
statement is made or to reflect the occurrence of unanticipated
events.
Air Lease Corporation and
Subsidiaries
CONSOLIDATED BALANCE
SHEETS
(In thousands, except share
and par value amounts)
December 31, 2021
December 31, 2020
(in thousands, except share
and par value amounts)
Assets
Cash and cash equivalents
$
1,086,500
$
1,734,155
Restricted cash
21,792
23,612
Flight equipment subject to operating
leases
27,101,808
23,729,742
Less accumulated depreciation
(4,202,804
)
(3,349,392
)
22,899,004
20,380,350
Deposits on flight equipment purchases
1,508,892
1,800,119
Other assets
1,452,534
1,276,939
Total assets
$
26,968,722
$
25,215,175
Liabilities and Shareholders’
Equity
Accrued interest and other payables
$
611,757
$
492,473
Debt financing, net of discounts and
issuance costs
17,022,480
16,518,338
Security deposits and maintenance reserves
on flight equipment leases
1,173,831
1,072,704
Rentals received in advance
138,816
142,915
Deferred tax liability
1,013,270
916,404
Total liabilities
$
19,960,154
$
19,142,834
Shareholders’ Equity
Preferred Stock, $0.01 par value;
50,000,000 shares authorized; 10,600,000 (aggregate liquidation
preference of $850,000) and 10,000,000 (aggregate liquidation
preference of $250,000) shares issued and outstanding at December
31, 2021 and December 31, 2020, respectively
106
100
Class A common stock, $0.01 par value;
500,000,000 shares authorized; 113,987,154 and 113,852,896 shares
issued and outstanding at December 31, 2021 and December 31, 2020,
respectively
1,140
1,139
Class B Non-Voting common stock, $0.01 par
value; authorized 10,000,000 shares; no shares issued or
outstanding
—
—
Paid-in capital
3,399,245
2,793,178
Retained earnings
3,609,885
3,277,599
Accumulated other comprehensive
(loss)/income
(1,808
)
325
Total shareholders’ equity
$
7,008,568
$
6,072,341
Total liabilities and shareholders’
equity
$
26,968,722
$
25,215,175
Air Lease Corporation and
Subsidiaries
CONSOLIDATED STATEMENTS OF
INCOME
(In thousands, except share
and per share amounts and percentages)
Three Months Ended
December 31
Year Ended
December 31,
2021
2020
2021
2020
(unaudited)
Revenues
Rental of flight equipment
$
563,663
$
483,621
$
2,003,337
$
1,946,620
Aircraft sales, trading and other
33,513
5,481
85,052
68,819
Total revenues
597,176
489,102
2,088,389
2,015,439
Expenses
Interest
116,152
113,980
462,396
431,733
Amortization of debt discounts and
issuance costs
13,511
11,365
50,620
43,025
Interest expense
129,663
125,345
513,016
474,758
Depreciation of flight equipment
230,819
202,722
882,562
780,691
Selling, general and administrative
40,598
20,542
125,279
95,684
Stock-based compensation
7,716
2,672
26,516
17,628
Total expenses
408,796
351,281
1,547,373
1,368,761
Income before taxes
188,380
137,821
541,016
646,678
Income tax expense
(36,599
)
(26,728
)
(104,384
)
(130,414
)
Net income
$
151,781
$
111,093
$
436,632
$
516,264
Preferred stock dividends
(9,463
)
(3,844
)
(28,473
)
(15,375
)
Net income available to common
stockholders
$
142,318
$
107,249
408,159
500,889
Net income per share of common
stock:
Basic
$
1.25
$
0.94
$
3.58
$
4.41
Diluted
$
1.24
$
0.94
$
3.57
$
4.39
Weighted-average shares of common stock
outstanding
Basic
113,987,154
113,795,564
114,050,578
113,684,782
Diluted
114,332,498
114,105,700
114,446,093
114,014,021
Other financial data
Pre-tax profit margin
31.5
%
28.2
%
25.9
%
32.1
%
Adjusted net income before income
taxes(1)
$
200,144
$
148,014
$
589,679
$
691,956
Adjusted pre-tax profit margin(1)
33.5
%
30.3
%
28.2
%
34.3
%
Adjusted diluted earnings per share before
income taxes(1)
$
1.75
$
1.30
$
5.15
$
6.07
Pre-tax return on common equity (trailing
twelve months)
8.6
%
11.3
%
8.6
%
11.3
%
Adjusted pre-tax return on common equity
(trailing twelve months)(1)
9.8
%
12.4
%
9.8
%
12.4
%
(1)
Adjusted net income before income taxes
(defined as net income available to common stockholders excluding
the effects of certain non-cash items, one-time or non-recurring
items, that are not expected to continue in the future and certain
other items), adjusted pre-tax profit margin (defined as adjusted
net income before income taxes divided by total revenues), adjusted
diluted earnings per share before income taxes (defined as adjusted
net income before income taxes divided by the weighted average
diluted common shares outstanding) and adjusted pre-tax return on
common equity (defined as adjusted net income before income taxes
divided by average common shareholders’ equity) are measures of
operating performance that are not defined by GAAP and should not
be considered as an alternative to net income available to common
stockholders, pre-tax profit margin, earnings per share, diluted
earnings per share and pre-tax return on common equity, or any
other performance measures derived in accordance with GAAP.
Adjusted net income before income taxes, adjusted pre-tax profit
margin, adjusted diluted earnings per share before income taxes and
adjusted pre-tax return on common equity are presented as
supplemental disclosure because management believes they provide
useful information on our earnings from ongoing operations.
Management and our board of directors use
adjusted net income before income taxes, adjusted pre-tax profit
margin, adjusted diluted earnings per share before income taxes and
adjusted pre-tax return on common equity to assess our consolidated
financial and operating performance. Management believes these
measures are helpful in evaluating the operating performance of our
ongoing operations and identifying trends in our performance,
because they remove the effects of certain non-cash items, one-time
or non-recurring items that are not expected to continue in the
future and certain other items from our operating results. Adjusted
net income before income taxes, adjusted pre-tax profit margin,
adjusted diluted earnings per share before income taxes and
adjusted pre-tax return on common equity, however, should not be
considered in isolation or as a substitute for analysis of our
operating results or cash flows as reported under GAAP. Adjusted
net income before income taxes, adjusted pre-tax profit margin,
adjusted diluted earnings per share before income taxes and
adjusted pre-tax return on common equity do not reflect our cash
expenditures or changes in our cash requirements for our working
capital needs. In addition, our calculation of adjusted net income
before income taxes, adjusted pre-tax profit margin, adjusted
diluted earnings per share before income taxes and adjusted pre-tax
return on common equity may differ from the adjusted net income
before income taxes, adjusted pre-tax profit margin, adjusted
diluted earnings per share before income taxes and adjusted pre-tax
return on common equity, or analogous calculations of other
companies in our industry, limiting their usefulness as a
comparative measure.
The following table shows the
calculation for adjusted pre-tax profit margin (in thousands,
except percentages):
Three Months Ended
December 31,
Year Ended December
31,
2021
2020
2021
2020
(unaudited)
Reconciliation of the numerator for
adjusted pre-tax profit margin (net income available to common
stockholders to adjusted net income before income taxes):
Net income available to common
stockholders
$
142,318
$
107,249
$
408,159
$
500,889
Amortization of debt discounts and
issuance costs
13,511
11,365
50,620
43,025
Stock-based compensation
7,716
2,672
26,516
17,628
Provision for income taxes
36,599
26,728
104,384
130,414
Adjusted net income before income
taxes
$
200,144
$
148,014
$
589,679
$
691,956
Denominator for adjusted pre-tax profit
margin:
Total revenues
$
597,176
$
489,102
$
2,088,389
$
2,015,439
Adjusted pre-tax profit margin(a)
33.5
%
30.3
%
28.2
%
34.3
%
(a)
Adjusted pre-tax profit margin is adjusted
net income before income taxes divided by total revenues.
The following table shows the calculation for adjusted diluted
earnings per share before income taxes (in thousands, except share
and per share amounts):
Three Months Ended
December 31,
Year Ended December
31,
2021
2020
2021
2020
(unaudited)
Reconciliation of numerator for
adjusted diluted earnings per share (net income available to common
stockholders to adjusted net income before income taxes):
Net income available to common
stockholders
$
142,318
$
107,249
$
408,159
$
500,889
Amortization of debt discounts and
issuance costs
13,511
11,365
50,620
43,025
Stock-based compensation
7,716
2,672
26,516
17,628
Provision for income taxes
36,599
26,728
104,384
130,414
Adjusted net income before income
taxes
$
200,144
$
148,014
$
589,679
$
691,956
Denominator for adjusted diluted
earnings per share:
Weighted-average diluted shares of common
stock outstanding
114,332,498
114,105,700
114,446,093
114,014,021
Adjusted diluted earnings per share before
income taxes(b)
$
1.75
$
1.30
$
5.15
$
6.07
(b)
Adjusted diluted earnings per share before
income taxes is adjusted net income before income taxes divided by
weighted-average diluted common shares outstanding
The following table shows the calculation of adjusted pre-tax
return on common equity (in thousands, except percentages):
Year Ended December
31,
2021
2020
(unaudited)
Reconciliation of the numerator for
adjusted pre-tax return on common equity (net income available to
common stockholders to adjusted net income before income
taxes):
Net income available to common
stockholders
$
408,159
$
500,889
Amortization of debt discounts and
issuance costs
50,620
43,025
Stock-based compensation
26,516
17,628
Provision for income taxes
104,384
130,414
Adjusted net income before income
taxes
$
589,679
$
691,956
Denominator for adjusted pre-tax return
on common equity:
Common shareholders' equity as of the
beginning of the period
$
5,822,341
$
5,373,544
Common shareholders' equity as of the end
of the period
$
6,158,568
$
5,822,341
Average common shareholders' equity
$
5,990,455
$
5,597,943
Adjusted pre-tax return on common
equity(c)
9.8
%
12.4
%
(c)
Adjusted pre-tax return on common equity
is adjusted net income before income taxes divided by average
common shareholders' equity
Air Lease Corporation and
Subsidiaries
CONSOLIDATED STATEMENTS OF
CASH FLOWS
(In thousands)
Year Ended December 31,
2021
Year Ended December 31,
2020
(in thousands)
Operating Activities
Net income
$
436,632
$
516,264
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation of flight equipment
882,562
780,691
Stock-based compensation
26,516
17,628
Deferred taxes
97,446
166,467
Amortization of prepaid lease costs
46,547
43,224
Amortization of discounts and debt
issuance costs
50,620
43,025
Gain on aircraft sales, trading and other
activity
(46,109
)
(34,654
)
Changes in operating assets and
liabilities:
Other assets
(176,391
)
(415,347
)
Accrued interest and other payables
63,112
(22,810
)
Rentals received in advance
(4,099
)
(4,302
)
Net cash provided by operating
activities
1,376,836
1,090,186
Investing Activities
Acquisition of flight equipment under
operating lease
(2,506,175
)
(1,631,551
)
Payments for deposits on flight equipment
purchases
(496,838
)
(885,679
)
Proceeds from aircraft sales, trading and
other activity
137,887
151,132
Acquisition of aircraft furnishings,
equipment and other assets
(229,654
)
(160,993
)
Net cash used in investing activities
(3,094,780
)
(2,527,091
)
Financing Activities
Issuance of common stock upon exercise of
options and warrants
1,438
6,569
Issuance of preferred stock
591,340
—
Cash dividends paid on Class A common
stock
(73,001
)
(68,183
)
Common shares repurchased
(5,780
)
—
Preferred dividends paid
(28,473
)
(15,375
)
Tax withholdings on stock-based
compensation
(7,441
)
(8,618
)
Net change in unsecured revolving
facilities
—
(20,000
)
Proceeds from debt financings
3,655,830
4,659,762
Payments in reduction of debt
financings
(3,194,482
)
(1,728,029
)
Debt issuance costs
(10,245
)
(8,102
)
Security deposits and maintenance reserve
receipts
174,521
114,596
Security deposits and maintenance reserve
disbursements
(35,238
)
(76,009
)
Net cash provided by financing
activities
1,068,469
2,856,611
Net (decrease)/increase in cash
(649,475
)
1,419,706
Cash, cash equivalents and restricted cash
at beginning of period
1,757,767
338,061
Cash, cash equivalents and restricted cash
at end of period
$
1,108,292
$
1,757,767
Supplemental Disclosure of Cash Flow
Information
Cash paid during the period for interest,
including capitalized interest of $49,070 and $53,163 at December
31, 2021 and 2020, respectively
$
508,616
$
449,662
Cash paid for income taxes
$
5,734
$
29,733
Supplemental Disclosure of Noncash
Activities
Buyer furnished equipment, capitalized
interest, deposits on flight equipment purchases and seller
financing applied to acquisition of flight equipment and other
assets applied to payments for deposits on flight equipment
purchases
$
1,009,554
$
782,896
Cash dividends declared, not yet paid
21,088
18,216
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220217005394/en/
Investors: Mary Liz DePalma Vice President, Investor
Relations Email: investors@airleasecorp.com
Jason Arnold Assistant Vice President, Finance Email:
investors@airleasecorp.com
Media: Laura Woeste Senior Manager, Media and Investor
Relations Email: press@airleasecorp.com
Ashley Arnold Manager, Media and Investor Relations Email:
press@airleasecorp.com
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