Air Lease Corporation (ALC) (NYSE: AL) announces financial
results for the three months ended March 31, 2022.
“Industry fundamentals continue to strengthen globally – demand
is expanding both for new and young used aircraft, supporting
continued firming of lease rates and bolstering the value of the
existing aircraft in our fleet. We benefited from this improving
backdrop during the first quarter. While we wrote-off our Russia
exposure, we are vigorously pursuing our insurance coverage and
believe we have strong and valid claims,” said John L. Plueger,
Chief Executive Officer and President.
“With the strengthening market, we are monitoring continued
delivery delays from Boeing and Airbus very closely, and will
adjust accordingly to take advantage of market opportunities –
fostering fleet growth in 2022 and beyond. ALC is well-poised to
execute successfully on our strategy as the recovery continues. We
are also pleased to report that we have fully completed our $150
million common stock repurchase program,” said Steven F.
Udvar-Házy, Executive Chairman of the Board.
First Quarter 2022
Results
The following table summarizes our operating results for the
three months ended March 31, 2022 and 2021 (in millions, except per
share amounts and percentages):
Operating Results
Three Months Ended March
31,
2022
2021
$ change
% change
Revenues
$
596.7
$
474.8
$
121.9
25.7
%
Operating expenses
(396.0
)
(371.3
)
(24.7
)
6.7
%
Write-off of Russian fleet
(802.4
)
—
(802.4
)
100.0
%
(Loss)/Income before taxes
(601.7
)
103.5
(705.2
)
(681.4
)%
Net (loss)/income attributable to common
stockholders
$
(479.4
)
$
80.2
$
(559.6
)
(697.8
)%
Diluted (loss)/earnings per share
$
(4.21
)
$
0.70
$
(4.91
)
(701.4
)%
Adjusted net income before income
taxes(1)
$
200.9
$
117.1
$
83.8
71.6
%
Adjusted diluted earnings per share before
income taxes(1)
$
1.76
$
1.03
$
0.73
70.9
%
Key Financial Ratios
Three Months Ended March
31,
2022
2021
Pre-tax margin
(100.8)%
21.8%
Pre-tax return on common equity (trailing
twelve months)
(3.5)%
9.9%
Adjusted pre-tax margin(1)
33.7%
24.7%
Adjusted pre-tax return on common equity
(trailing twelve months)(1)
11.8%
11.0%
(1)
Adjusted net income before income taxes,
adjusted diluted earnings per share before income taxes, adjusted
pre-tax 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, such as write-offs of our Russian
fleet, 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
- For the quarter ended March 31, 2022, we recorded a write-off
of our interests in our owned and managed aircraft that remain in
Russia, totaling approximately $802.4 million. However, we are
vigorously pursuing insurance claims to recover losses relating to
these aircraft.
- Took delivery of eight aircraft from our new order pipeline,
and one aircraft from the secondary market, representing
approximately $490.0 million in aircraft investments. As of March
31, 2022, we had 370 aircraft in our owned fleet, with a net book
value of $22.3 billion, a weighted average age of 4.5 years and a
weighted average lease term remaining of 7.0 years.
- Placed 97% of our contracted orderbook positions on long-term
leases for aircraft delivering through the end of 2023 and have
placed 52% of our entire orderbook.
- Ended the quarter with $29.5 billion in committed minimum
future rental payments consisting of $14.1 billion in contracted
minimum rental payments on the aircraft in our existing fleet and
$15.4 billion in minimum future rental payments related to aircraft
on order.
- Issued $1.5 billion in aggregate principal amount of senior
unsecured notes comprised of $750 million at a fixed rate of 2.20%
due 2027 and $750 million at a fixed rate of 2.875% due 2032.
- We amended our syndicated unsecured revolving credit facility
(the “Revolving Credit Facility”), increasing the total commitments
to $7.0 billion across 52 financial institutions as of May 5, 2022
and extending the final maturity by one year to May 5, 2026.
- As of April 4, 2022, we completed our $150 million stock
repurchase program through which we acquired approximately 3.4
million shares of our outstanding Class A common stock.
- On May 4, 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 July 8, 2022 to holders of record of
our common stock as of June 7, 2022.
Financial Overview
Our total revenues for the three months ended March 31, 2022
increased by 25.7% to $596.7 million as compared to the three
months ended March 31, 2021. The increase in total revenues was
primarily driven by the continued growth in our fleet,
significantly lower cash basis and lease restructuring losses, and
the recognition of approximately $59.6 million in security deposits
and maintenance reserve income resulting from the termination of
our leasing activities in Russia as required by government
sanctions.
We determined that it is unlikely that we will regain possession
of the aircraft that have not been returned and that remain in
Russia. As a result, we recorded a write-off of our interests in
our owned and managed aircraft that remain in Russia, totaling
approximately $802.4 million for the three months ended March 31,
2022. Consequently, we recorded a net loss for the three months
ended March 31, 2022, of $479.4 million and $4.21 per diluted share
as compared to net income of $80.2 million and $0.70 per share in
the prior period.
After excluding the effects of the write-off and certain other
adjustments, we recorded adjusted net income before income taxes
during the three months ended March 31, 2022 of $200.9 million or
$1.76 per diluted share. This increased by approximately 71.6% over
the prior period results of $117.1 million or $1.03 per diluted
share. This was driven by the continued growth of our fleet and the
increase in revenues discussed above.
Flight Equipment
Portfolio
As of March 31, 2022 the net book value of our fleet decreased
to $22.3 billion, compared to $22.9 billion as of December 31,
2021. The decrease is due to the write-off of the net book value of
our 21 aircraft that remain in Russia, totaling approximately
$791.0 million, partially offset by the delivery of eight new
aircraft from our new order pipeline and one aircraft from the
secondary market. As of March 31, 2022, we owned 370 aircraft in
our aircraft portfolio, comprised of 268 narrowbody aircraft and
102 widebody aircraft, and we managed 87 aircraft. The 21 aircraft
that remain in Russia have been removed from our owned fleet count.
The weighted average fleet age and weighted average remaining lease
term of our fleet as of March 31, 2022 was 4.5 years and 7.0 years,
respectively. We have a globally diversified customer base of 114
airlines in 60 countries.
The following table summarizes the key portfolio metrics of our
fleet as of March 31, 2022 and December 31, 2021:
March 31, 2022
December 31, 2021
Net book value of flight equipment subject
to operating lease
$
22.3 billion
$
22.9 billion
Weighted-average fleet age(1)
4.5 years
4.4 years
Weighted-average remaining lease
term(1)
7.0 years
7.2 years
Owned fleet
370
382
Managed fleet
87
92
Aircraft on order
451
431
Total
908
905
Current fleet contracted rentals
$
14.1 billion
$
14.8 billion
Committed fleet rentals
$
15.4 billion
$
16.1 billion
Total committed rentals
$
29.5 billion
$
30.9 billion
(1)
Weighted-average fleet age and remaining
lease term calculated based on net book value of our flight
equipment subject to operating lease.
The following table details the regional concentration of our
flight equipment subject to operating leases:
March 31, 2022
December 31, 2021
Region
% of Net Book Value
% of Net Book Value
Europe
30.2
%
32.5
%
Asia (excluding China)
27.4
%
26.0
%
China
13.0
%
12.8
%
The Middle East and Africa
10.9
%
10.7
%
U.S. and Canada
7.2
%
7.2
%
Central America, South America, and
Mexico
7.2
%
6.8
%
Pacific, Australia, and New Zealand
4.1
%
4.0
%
Total
100.0
%
100.0
%
The following table details the composition of our flight
equipment subject to operating leases by aircraft type:
March 31, 2022
December 31, 2021
Aircraft type
Number of Aircraft
% of Total
Number of Aircraft
% of Total
Airbus A319-100
1
0.3
%
1
0.3
%
Airbus A320-200
28
7.5
%
31
8.1
%
Airbus A320-200neo
24
6.5
%
23
6.0
%
Airbus A321-200
24
6.5
%
26
6.8
%
Airbus A321-200neo
64
17.3
%
69
18.1
%
Airbus A330-200
13
3.4
%
13
3.4
%
Airbus A330-300
5
1.4
%
8
2.1
%
Airbus A330-900neo
10
2.7
%
9
2.4
%
Airbus A350-900
12
3.2
%
12
3.1
%
Airbus A350-1000
5
1.4
%
5
1.3
%
Boeing 737-700
4
1.1
%
4
1.0
%
Boeing 737-800
84
22.7
%
88
23.0
%
Boeing 737-8 MAX
30
8.1
%
28
7.3
%
Boeing 737-9 MAX
8
2.2
%
7
1.8
%
Boeing 777-200ER
1
0.3
%
1
0.3
%
Boeing 777-300ER
24
6.5
%
24
6.3
%
Boeing 787-9
26
7.0
%
26
6.8
%
Boeing 787-10
6
1.6
%
6
1.6
%
Embraer E190
1
0.3
%
1
0.3
%
Total
370
100.0
%
382
100.0
%
Debt Financing
Activities
We ended the first quarter of 2022 with total debt financing,
net of discounts and issuance costs, of $17.8 billion. As of March
31, 2022, 95.1% of our total debt financing was at a fixed rate and
99.2% was unsecured. As of March 31, 2022, our composite cost of
funds was 2.77%. We ended the first quarter with total liquidity of
$8.3 billion.
In January 2022, we issued $1.5 billion in aggregate principal
amount of senior unsecured notes comprised of (i) $750 million at a
fixed rate of 2.20% due 2027 and (ii) $750 million at a fixed rate
of 2.875% due 2032.
We amended our Revolving Credit Facility, increasing the total
commitments to $7.0 billion across 52 financial institutions as of
May 5, 2022, and extending the final maturity by one year to May 5,
2026.
As of the end of the periods presented, our debt portfolio was
comprised of the following components (dollars in millions):
March 31, 2022
December 31, 2021
Unsecured
Senior notes
$
17,695
$
16,892
Term financings
195
167
Total unsecured debt financing
17,890
17,059
Secured
Term financings
124
127
Export credit financing
17
18
Total secured debt financing
141
145
Total debt financing
18,031
17,204
Less: Debt discounts and issuance
costs
(206
)
(182
)
Debt financing, net of discounts and
issuance costs
$
17,825
$
17,022
Selected interest rates and
ratios:
Composite interest rate(1)
2.77
%
2.79
%
Composite interest rate on fixed-rate
debt(1)
2.85
%
2.90
%
Percentage of total debt at a
fixed-rate
95.1
%
94.8
%
(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 May 5, 2022 at 4:30 PM Eastern Time
to discuss the Company's financial results for the first quarter of
2022.
Investors can participate in the conference call by dialing
(855) 308-8321 domestic or (330) 863-3465 international. The
passcode for the call is 7766137.
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 May 5, 2022 until 7:30 PM ET on
May 12, 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 7766137.
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,
including the impact of Russia’s invasion of Ukraine and the impact
of sanctions imposed on Russia, our access to the capital markets,
the impact of lease deferrals and other accommodations, 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:
- 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 manufacturers to meet its
delivery obligations to us, including or as a result of technical
or other difficulties with aircraft before or after delivery;
- the extent to which the Russian invasion of Ukraine and the
impact of sanctions imposed by the United States, European Union,
United Kingdom and other countries affect our business, including
our efforts to pursue insurance claims to recover losses related to
aircraft that remain in Russia;
- the extent to which the COVID-19 pandemic impacts our
business;
- 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, natural disasters, terrorist attacks, war or
armed hostilities between countries or non-state actors; and
- any additional factors discussed under “Part I — Item 1A. Risk
Factors,” in our Annual Report on Form 10-K for the year ended
December 31, 2021, “Part II — Item 1A. Risk Factors,” in our
Quarterly Report on Form 10-Q for the quarter ended March 31, 2022
and other SEC filings, including future SEC filings.
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 do not intend and undertake no obligation to update
any forward-looking information to reflect actual results or 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)
March 31, 2022
December 31, 2021
(unaudited)
Assets
Cash and cash equivalents
$
1,490,765
$
1,086,500
Restricted cash
21,291
21,792
Flight equipment subject to operating
leases
26,552,246
27,101,808
Less accumulated depreciation
(4,267,934
)
(4,202,804
)
22,284,312
22,899,004
Deposits on flight equipment purchases
1,626,874
1,508,892
Other assets
1,451,607
1,452,534
Total assets
$
26,874,849
$
26,968,722
Liabilities and Shareholders’
Equity
Accrued interest and other payables
$
544,280
$
611,757
Debt financing, net of discounts and
issuance costs
17,824,725
17,022,480
Security deposits and maintenance reserves
on flight equipment leases
1,120,234
1,173,831
Rentals received in advance
135,642
138,816
Deferred tax liability
880,383
1,013,270
Total liabilities
$
20,505,264
$
19,960,154
Shareholders’ Equity
Preferred Stock, $0.01 par value;
50,000,000 shares authorized; 10,600,000 (aggregate liquidation
preference of $850,000) shares issued and outstanding at March 31,
2022 and December 31, 2021, respectively
$
106
$
106
Class A common stock, $0.01 par value;
500,000,000 shares authorized; 111,317,259 and 113,987,154 shares
issued and outstanding at March 31, 2022 and December 31, 2021,
respectively
1,113
1,140
Class B non-voting common stock, $0.01 par
value; authorized 10,000,000 shares; no shares issued or
outstanding
—
—
Paid-in capital
3,259,105
3,399,245
Retained earnings
3,109,331
3,609,885
Accumulated other comprehensive loss
(70
)
(1,808
)
Total shareholders’ equity
$
6,369,585
$
7,008,568
Total liabilities and shareholders’
equity
$
26,874,849
$
26,968,722
Air Lease Corporation and
Subsidiaries
CONSOLIDATED STATEMENTS OF
OPERATIONS
(In thousands, except share,
per share amounts and percentages)
Three Months Ended
March 31,
2022
2021
(unaudited)
Revenues
Rental of flight equipment
$
566,554
$
468,095
Aircraft sales, trading and other
30,107
6,732
Total revenues
596,661
474,827
Expenses
Interest
117,277
117,986
Amortization of debt discounts and
issuance costs
13,198
12,025
Interest expense
130,475
130,011
Depreciation of flight equipment
235,308
208,965
Write-off of Russian fleet
802,352
—
Selling, general and administrative
32,762
26,914
Stock-based compensation
(2,523
)
5,408
Total expenses
1,198,374
371,298
(Loss)/income before taxes
(601,713
)
103,529
Income tax benefit/(expense)
132,720
(19,437
)
Net (loss)/income
$
(468,993
)
$
84,092
Preferred stock dividends
(10,425
)
(3,844
)
Net (loss)/income attributable to
common stockholders
$
(479,418
)
$
80,248
(Loss)/Earnings per share of common
stock
Basic
$
(4.21
)
$
0.70
Diluted
$
(4.21
)
$
0.70
Weighted-average shares
outstanding
Basic
113,894,867
113,958,403
Diluted
113,894,867
114,237,109
Other financial data
Pre-tax margin
(100.8
)%
21.8
%
Pre-tax return on common equity (trailing
twelve months)
(3.5
)%
9.9
%
Adjusted net income before income
taxes(1)
$
200,889
$
117,118
Adjusted diluted earnings per share before
income taxes(1)
$
1.76
$
1.03
Adjusted pre-tax margin(1)
33.7
%
24.7
%
Adjusted pre-tax return on common equity
(trailing twelve months)(1)
11.8
%
11.0
%
(1)
Adjusted net income before income taxes
(defined as net income attributable to common stockholders
excluding the effects of certain non-cash items, one-time or
non-recurring items, such as write-offs of our Russian fleet, that
are not expected to continue in the future and certain other
items), adjusted pre-tax 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 attributable to common
stockholders, pre-tax 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 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 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 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 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 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
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
reconciliation of the numerator for adjusted pre-tax margin (in
thousands, except percentages):
Three Months Ended March
31,
2022
2021
Reconciliation of the numerator for
adjusted pre-tax margin (net (loss)/income attributable to common
stockholders to adjusted net income before income taxes):
(unaudited)
Net (loss)/income attributable to common
stockholders
$
(479,418
)
$
80,248
Amortization of debt discounts and
issuance costs
13,198
12,025
Write-off of Russian fleet
802,352
—
Stock-based compensation
(2,523
)
5,408
Provision for income taxes
(132,720
)
19,437
Adjusted net income before income
taxes
$
200,889
$
117,118
Denominator for adjusted pre-tax
margin:
Total revenues
$
596,661
$
474,827
Adjusted pre-tax margin(a)
33.7
%
24.7
%
(a)
Adjusted pre-tax margin is adjusted net
income before income taxes divided by total revenues.
The following table shows the reconciliation of the numerator
for adjusted diluted earnings per share before income taxes (in
thousands, except share and per share amounts):
Three Months Ended
March 31,
2022
2021
Reconciliation of the numerator for
adjusted diluted earnings per share (net (loss)/income attributable
to common stockholders to adjusted net income before income
taxes):
(unaudited)
Net (loss)/income attributable to common
stockholders
$
(479,418
)
$
80,248
Amortization of debt discounts and
issuance costs
13,198
12,025
Write-off of Russian fleet
802,352
—
Stock-based compensation
(2,523
)
5,408
Provision for income taxes
(132,720
)
19,437
Adjusted net income before income
taxes
$
200,889
$
117,118
Denominator for adjusted diluted
earnings per share:
Weighted-average diluted common shares
outstanding
113,894,867
114,237,109
Potentially dilutive securities, whose
effect would have been anti-dilutive
249,781
—
Adjusted weighted-average diluted common
shares outstanding
114,144,648
114,237,109
Adjusted diluted earnings per share before
income taxes(b)
$
1.76
$
1.03
(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 reconciliation of pre-tax return
on common equity to adjusted pre-tax return on common equity (in
thousands, except percentages):
Trailing Twelve Months
Ended March 31,
2022
2021
(unaudited)
Reconciliation of the numerator for
adjusted pre-tax return on common equity (net (loss)/income
attributable to common stockholders to adjusted net income before
income taxes):
Net (loss)/income attributable to common
stockholders
$
(151,507
)
$
447,830
Amortization of debt discounts and
issuance costs
51,793
44,522
Write-off of Russian fleet
802,352
—
Stock-based compensation
18,585
18,607
Provision for income taxes
(47,773
)
115,330
Adjusted net income before income
taxes
$
673,450
$
626,289
Denominator for adjusted pre-tax return
on common equity:
Common shareholders’ equity as of
beginning of the period
$
5,878,212
$
5,486,369
Common shareholders’ equity as of end of
the period
$
5,519,585
$
5,878,212
Average common shareholders’ equity
$
5,698,899
$
5,682,291
Adjusted pre-tax return on common
equity(c)
11.8
%
11.0
%
(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)
Three Months Ended March
31,
2022
2021
(unaudited)
Operating Activities
Net (loss)/income
$
(468,993
)
$
84,092
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation of flight equipment
235,308
208,965
Write-off of Russian fleet
802,352
—
Stock-based compensation
(2,523
)
5,408
Deferred taxes
(133,360
)
18,577
Amortization of debt discounts and
issuance costs
13,198
12,025
Amortization of prepaid lease costs
13,193
10,790
Gain on aircraft sales, trading and other
activity
(66,791
)
(99
)
Changes in operating assets and
liabilities:
Other assets
(74,560
)
(35,323
)
Accrued interest and other payables
(64,068
)
(59,914
)
Rentals received in advance
938
(10,231
)
Net cash provided by operating
activities
254,694
234,290
Investing Activities
Acquisition of flight equipment under
operating lease
(395,402
)
(404,379
)
Payments for deposits on flight equipment
purchases
(172,943
)
(103,382
)
Proceeds from aircraft sales, trading and
other activity
750
—
Acquisition of aircraft furnishings,
equipment and other assets
(52,974
)
(41,923
)
Net cash used in investing activities
(620,569
)
(549,684
)
Financing Activities
Issuance of common stock upon exercise of
options
—
1,441
Cash dividends paid on Class A common
stock
(21,088
)
(18,216
)
Common shares repurchased
(97,644
)
—
Net proceeds from preferred stock
issuance
—
295,449
Cash dividends paid on preferred stock
(10,425
)
(3,844
)
Tax withholdings on stock-based
compensation
(8,095
)
(7,169
)
Proceeds from debt financings
1,497,615
791,645
Payments in reduction of debt
financings
(708,847
)
(1,157,577
)
Debt issuance costs
(2,740
)
(1,335
)
Security deposits and maintenance reserve
receipts
125,727
21,278
Security deposits and maintenance reserve
disbursements
(4,864
)
(11,852
)
Net cash provided / (used) by financing
activities
769,639
(90,180
)
Net increase / (decrease) in cash
403,764
(405,574
)
Cash, cash equivalents and restricted cash
at beginning of period
1,108,292
1,757,767
Cash, cash equivalents and restricted cash
at end of period
$
1,512,056
$
1,352,193
Supplemental Disclosure of Cash Flow
Information
Cash paid during the period for interest,
including capitalized interest of $9,365 and $13,543 at March 31,
2022 and 2021, respectively
$
179,026
$
177,685
Cash paid for income taxes
$
3,446
$
1,101
Supplemental Disclosure of Noncash
Activities
Buyer furnished equipment, capitalized
interest and deposits on flight equipment purchases applied to
acquisition of flight equipment
$
85,791
$
176,618
Cash dividends declared on Class A common
stock, not yet paid
$
21,136
$
18,259
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220504006318/en/
Investors: Jason Arnold 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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