Air Lease Corporation (ALC) (NYSE: AL) announces financial
results for the three and six months ended June 30, 2022.
“We had a good second quarter with higher than expected aircraft
deliveries and strong aircraft placements. Aircraft shortages and
concerns about future new aircraft delivery delays are causing many
airlines to secure lease extensions on existing aircraft, as
pandemic recovery is well underway with airlines struggling to meet
significant passenger demand,” said John L. Plueger, Chief
Executive Officer and President.
“Passenger traffic growth remains on a very strong recovery
trajectory, with international volume gaining meaningful momentum
so far in 2022 – accordingly, lease placements from our orderbook
are stretching further out into the future. Lease rates are
strengthening, reflective of diminishing aircraft supply,
increasing interest rates, and higher aircraft values,” said Steven
F. Udvar-Házy, Executive Chairman of the Board.
Second Quarter 2022
Results
The following table summarizes our operating results for the
three and six months ended June 30, 2022 and 2021 (in millions,
except per share amounts and percentages):
Operating Results
Three Months Ended
June 30,
Six Months Ended
June 30,
2022
2021
$ change
% change
2022
2021
$ change
% change
Revenues
$
557.7
$
491.9
$
65.8
13.4
%
$
1,154.4
$
966.7
$
187.7
19.4
%
Operating expenses
(412.8
)
(377.3
)
(35.5
)
9.4
%
(808.8
)
(748.6
)
(60.2
)
8.0
%
Write-off of Russian fleet
—
—
—
—
%
(802.4
)
—
(802.4
)
100.0
%
Income/(loss) before taxes
144.9
114.6
30.3
26.4
%
(456.8
)
218.1
(674.9
)
(309.4
)%
Net income/(loss) attributable to common
stockholders
$
105.9
$
85.6
$
20.3
23.7
%
$
(373.6
)
$
165.8
$
(539.4
)
(325.3
)%
Diluted earnings/(loss) per share
$
0.95
$
0.75
$
0.20
26.7
%
$
(3.32
)
$
1.45
$
(4.77
)
(329.0
)%
Adjusted net income before income
taxes(1)
$
154.5
$
125.9
$
28.6
22.7
%
$
355.4
$
243.1
$
112.3
46.2
%
Adjusted diluted earnings per share before
income taxes(1)
$
1.39
$
1.10
$
0.29
26.4
%
$
3.15
$
2.13
$
1.02
47.9
%
Key Financial Ratios
Three Months Ended
June 30,
Six Months Ended
June 30,
2022
2021
2022
2021
Pre-tax margin
26.0%
23.3%
(39.6)%
22.6%
Pre-tax return on common equity (trailing
twelve months)
(3.0)%
8.5%
(3.0)%
8.5%
Adjusted pre-tax margin(1)
27.7%
25.6%
30.8%
25.1%
Adjusted pre-tax return on common equity
(trailing twelve months)(1)
12.2%
9.6%
12.2%
9.6%
(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 Operations included in this earnings release for a
discussion of the non-GAAP measures and a reconciliation to their
most comparable GAAP financial measures.
Highlights
- Took delivery of 21 aircraft from our new order pipeline and
one new incremental aircraft, representing approximately $1.4
billion in aircraft investments.
- As of June 30, 2022, we had 392 aircraft in our owned fleet,
with a net book value of $23.5 billion, a weighted average age of
4.4 years and a weighted average lease term remaining of 7.1
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 quarter with $31.3 billion in committed minimum
future rental payments consisting of $15.0 billion in contracted
minimum rental payments on the aircraft in our existing fleet and
$16.3 billion in minimum future rental payments related to aircraft
on order.
- On August 3, 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 October 7, 2022 to holders of record
of our common stock as of September 12, 2022.
Financial Overview
Our total revenues for the three months ended June 30, 2022
increased by 13.4% to $557.7 million as compared to the three
months ended June 30, 2021. The increase in total revenues was
primarily driven by the continued growth in our fleet and the
recognition of cash basis revenue of $8.7 million as compared to
$41.6 million of cash basis losses in the three months ended June
30, 2021. This increase was partially offset by the loss of rental
revenue from the termination of our leasing activities in Russia
during the first quarter of 2022 and lower aircraft sales, trading
and other revenue. Lower aircraft sales, trading and other revenue
was driven by $34.0 million in revenue recognized in the prior year
related to the sale to a third party of certain unsecured claims
related to Aeromexico’s insolvency proceedings. Our net income
attributable to common stockholders for the three months ended June
30, 2022 was $105.9 million, or $0.95 per diluted share compared to
$85.6 million, or $0.75 per diluted share, for the three months
ended June 30, 2021. We recorded adjusted net income before income
taxes during the three months ended June 30, 2022 of $154.5 million
or $1.39 per adjusted diluted share, an increase of approximately
22.7% and 26.4% as compared to $125.9 million or $1.10 per adjusted
diluted share for the three months ended June 30, 2021,
respectively. The increase in net income attributable to common
stockholders and adjusted net income before income taxes was
primarily driven by the increase in revenues as discussed
above.
Flight Equipment
Portfolio
As of June 30, 2022 the net book value of our fleet increased to
$23.5 billion, compared to $22.9 billion as of December 31, 2021.
As of June 30, 2022, we owned 392 aircraft in our aircraft
portfolio, comprised of 287 narrowbody aircraft and 105 widebody
aircraft, and we managed 89 aircraft. The weighted average fleet
age and weighted average remaining lease term of our fleet as of
June 30, 2022 was 4.4 years and 7.1 years, respectively. We have a
globally diversified customer base of 116 airlines in 62
countries.
The following table summarizes the key portfolio metrics of our
fleet as of June 30, 2022 and December 31, 2021:
June 30, 2022
December 31, 2021
Net book value of flight equipment subject
to operating lease
$
23.5 billion
$
22.9 billion
Weighted-average fleet age(1)
4.4 years
4.4 years
Weighted-average remaining lease
term(1)
7.1 years
7.2 years
Owned fleet
392
382
Managed fleet
89
92
Aircraft on order
430
431
Total
911
905
Current fleet contracted rentals
$
15.0 billion
$
14.8 billion
Committed fleet rentals
$
16.3 billion
$
16.1 billion
Total committed rentals
$
31.3 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:
June 30, 2022
December 31, 2021
Region
% of Net Book Value
% of Net Book Value
Europe
31.3%
32.5%
Asia (excluding China)
28.2%
26.0%
China
12.2%
12.8%
The Middle East and Africa
10.1%
10.7%
Central America, South America, and
Mexico
7.3%
6.8%
U.S. and Canada
7.1%
7.2%
Pacific, Australia, and New Zealand
3.8%
4.0%
Total
100.0%
100.0%
The following table details the composition of our flight
equipment subject to operating leases by aircraft type:
June 30, 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
7.1%
31
8.1%
Airbus A320-200neo
26
6.6%
23
6.0%
Airbus A321-200
24
6.1%
26
6.8%
Airbus A321-200neo
70
17.9%
69
18.1%
Airbus A330-200
13
3.3%
13
3.4%
Airbus A330-300
5
1.3%
8
2.1%
Airbus A330-900neo
11
2.8%
9
2.4%
Airbus A350-900
13
3.3%
12
3.1%
Airbus A350-1000
6
1.5%
5
1.3%
Boeing 737-700
4
1.0%
4
1.0%
Boeing 737-800
84
21.4%
88
23.0%
Boeing 737-8 MAX
39
9.9%
28
7.3%
Boeing 737-9 MAX
10
2.7%
7
1.8%
Boeing 777-200ER
1
0.3%
1
0.3%
Boeing 777-300ER
24
6.1%
24
6.3%
Boeing 787-9
26
6.6%
26
6.8%
Boeing 787-10
6
1.5%
6
1.6%
Embraer E190
1
0.3%
1
0.3%
Total (1)
392
100.0%
382
100.0%
(1)
As of June 30, 2022, we had six
aircraft classified as flight equipment held for sale. As of
December 31, 2021, we did not have any flight equipment classified
as held for sale.
Debt Financing
Activities
We ended the second quarter of 2022 with total debt financing,
net of discounts and issuance costs, of $18.3 billion. As of June
30, 2022, 92.4% of our total debt financing was at a fixed rate and
99.3% was unsecured. As of June 30, 2022, our composite cost of
funds was 2.81%. We ended the second quarter with total liquidity
of $7.6 billion.
As of the end of the periods presented, our debt portfolio was
comprised of the following components (dollars in millions):
June 30, 2022
December 31, 2021
Unsecured
Senior notes
$
17,686
$
16,892
Revolving credit facility
520
—
Term financings
190
167
Total unsecured debt financing
18,396
17,059
Secured
Term financings
120
127
Export credit financing
15
18
Total secured debt financing
135
145
Total debt financing
18,531
17,204
Less: Debt discounts and issuance
costs
(195
)
(182
)
Debt financing, net of discounts and
issuance costs
$
18,336
$
17,022
Selected interest rates and
ratios:
Composite interest rate(1)
2.81
%
2.79
%
Composite interest rate on fixed-rate
debt(1)
2.85
%
2.90
%
Percentage of total debt at a
fixed-rate
92.4
%
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 August 4, 2022 at 4:30 PM Eastern
Time to discuss the Company's financial results for the second
quarter of 2022.
Investors can participate in the conference call by dialing 1
(833) 634-2156 domestic or 1 (412) 902-4142 international. Please
request to be joined into the Air Lease Corporation call.
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 August 4, 2022 until 7:30 PM ET
on August 11, 2022. If you wish to listen to the replay of this
conference call, please dial 1 (877) 344-7529 domestic or 1 (412)
317-0088 international and enter passcode 3322431.
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. Air Lease Corporation 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. Air Lease Corporation routinely posts
information that may be important to investors in the “Investors”
section of Air Lease Corporation's website at www.airleasecorp.com.
Investors and potential investors are encouraged to consult the Air
Lease Corporation website regularly for important information about
Air Lease Corporation. The information contained on, or that may be
accessed through, Air Lease Corporation'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 others affect our business, including our
efforts to pursue insurance claims to recover losses related to
aircraft that remain in Russia, the exclusion of Russia, Ukraine
and Belarus from the insurance policies that we separately purchase
for our owned fleet, and the ability of our lessees to comply with
their obligations to maintain insurance policies that cover their
operations;
- 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,
rising inflation, appreciation of the U.S. Dollar, 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)
June 30, 2022
December 31, 2021
(unaudited)
Assets
Cash and cash equivalents
$
1,012,779
$
1,086,500
Restricted cash
21,069
21,792
Flight equipment subject to operating
leases
27,969,301
27,101,808
Less accumulated depreciation
(4,501,559
)
(4,202,804
)
23,467,742
22,899,004
Deposits on flight equipment purchases
1,618,687
1,508,892
Other assets
1,526,180
1,452,534
Total assets
$
27,646,457
$
26,968,722
Liabilities and Shareholders’
Equity
Accrued interest and other payables
$
628,526
$
611,757
Debt financing, net of discounts and
issuance costs
18,336,075
17,022,480
Security deposits and maintenance reserves
on flight equipment leases
1,186,442
1,173,831
Rentals received in advance
147,127
138,816
Deferred tax liability
908,653
1,013,270
Total liabilities
$
21,206,823
$
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 June 30,
2022 and December 31, 2021, respectively
$
106
$
106
Class A common stock, $0.01 par value;
500,000,000 shares authorized; 110,892,097 and 113,987,154 shares
issued and outstanding at June 30, 2022 and December 31, 2021,
respectively
1,109
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
3,244,282
3,399,245
Retained earnings
3,194,672
3,609,885
Accumulated other comprehensive loss
(535
)
(1,808
)
Total shareholders’ equity
$
6,439,634
$
7,008,568
Total liabilities and shareholders’
equity
$
27,646,457
$
26,968,722
Air Lease Corporation and
Subsidiaries
CONSOLIDATED STATEMENTS OF
OPERATIONS
(In thousands, except share,
per share amounts and percentages)
Three Months Ended
June 30,
Six Months Ended
June 30,
2022
2021
2022
2021
(unaudited)
Revenues
Rental of flight equipment
$
545,271
$
452,044
$
1,111,825
$
920,139
Aircraft sales, trading and other
12,425
39,833
42,533
46,565
Total revenues
557,696
491,877
1,154,358
966,704
Expenses
Interest
118,997
113,598
236,274
231,584
Amortization of debt discounts and
issuance costs
13,413
12,513
26,610
24,538
Interest expense
132,410
126,111
262,884
256,122
Depreciation of flight equipment
235,284
217,817
470,591
426,782
Write-off of Russian fleet
—
—
802,352
—
Selling, general and administrative
38,512
26,687
71,277
53,601
Stock-based compensation expense
6,558
6,700
4,035
12,108
Total expenses
412,764
377,315
1,611,139
748,613
Income/(loss) before taxes
144,932
114,562
(456,781
)
218,091
Income tax (expense)/benefit
(28,655
)
(21,140
)
104,065
(40,577
)
Net income/(loss)
$
116,277
$
93,422
$
(352,716
)
$
177,514
Preferred stock dividends
(10,425
)
(7,835
)
(20,850
)
(11,679
)
Net income/(loss) attributable to
common stockholders
$
105,852
$
85,587
$
(373,566
)
$
165,835
Earnings/(Loss) per share of common
stock:
Basic
$
0.95
$
0.75
$
(3.32
)
$
1.45
Diluted
$
0.95
$
0.75
$
(3.32
)
$
1.45
Weighted-average shares
outstanding
Basic
110,868,040
114,133,135
112,373,092
114,046,252
Diluted
111,043,836
114,377,965
112,373,092
114,373,576
Other financial data
Pre-tax margin
26.0
%
23.3
%
(39.6
)%
22.6
%
Pre-tax return on common equity (trailing
twelve months)
(3.0
)%
8.5
%
(3.0
)%
8.5
%
Adjusted net income before income
taxes(1)
$
154,478
$
125,940
$
355,366
$
243,058
Adjusted diluted earnings per share before
income taxes(1)
$
1.39
$
1.10
$
3.15
$
2.13
Adjusted pre-tax margin(1)
27.7
%
25.6
%
30.8
%
25.1
%
Adjusted pre-tax return on common equity
(trailing twelve months)(1)
12.2
%
9.6
%
12.2
%
9.6
%
(1)
Adjusted net income before income taxes
(defined as net income/(loss) 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/(loss) attributable to
common stockholders, pre-tax margin, earnings/(loss) per share,
diluted earnings/(loss) 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 June
30,
Six Months Ended June
30,
2022
2021
2022
2021
(unaudited)
Reconciliation of the numerator for
adjusted pre-tax margin (net income/(loss) attributable to common
stockholders to adjusted net income before income taxes):
Net income/(loss) attributable to common
stockholders
$
105,852
$
85,587
$
(373,566
)
$
165,835
Amortization of debt discounts and
issuance costs
13,413
12,513
26,610
24,538
Write-off of Russian fleet
—
—
802,352
—
Stock-based compensation expense
6,558
6,700
4,035
12,108
Income tax expense/(benefit)
28,655
21,140
(104,065
)
40,577
Adjusted net income before income
taxes
$
154,478
$
125,940
$
355,366
$
243,058
Denominator for adjusted pre-tax
margin:
Total revenues
$
557,696
$
491,877
$
1,154,358
$
966,704
Adjusted pre-tax margin(a)
27.7
%
25.6
%
30.8
%
25.1
%
(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 June
30,
Six Months Ended June
30,
2022
2021
2022
2021
(unaudited)
Reconciliation of the numerator for
adjusted diluted earnings per share (net income/(loss) attributable
to common stockholders to adjusted net income before income
taxes):
Net income/(loss) attributable to common
stockholders
$
105,852
$
85,587
$
(373,566)
$
165,835
Amortization of debt discounts and
issuance costs
13,413
12,513
26,610
24,538
Write-off of Russian fleet
—
—
802,352
—
Stock-based compensation expense
6,558
6,700
4,035
12,108
Income tax expense/(benefit)
28,655
21,140
(104,065)
40,577
Adjusted net income before income
taxes
$
154,478
$
125,940
$
355,366
$
243,058
Denominator for adjusted diluted
earnings per share:
Weighted-average diluted common shares
outstanding
111,043,836
114,377,965
112,373,092
114,373,576
Potentially dilutive securities, whose
effect would have been anti-dilutive
—
—
301,279
—
Adjusted weighted-average diluted common
shares outstanding
111,043,836
114,377,965
112,674,371
114,373,576
Adjusted diluted earnings per share before
income taxes(b)
$
1.39
$
1.10
$
3.15
$
2.13
(b)
Adjusted diluted earnings per
share before income taxes is adjusted net income before income
taxes divided by adjusted 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 June 30,
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
$
(131,242
)
$
389,636
Amortization of debt discounts and
issuance costs
52,693
46,802
Write-off of Russian fleet
802,352
—
Stock-based compensation expense
18,443
21,415
Income tax (benefit)/expense
(40,258
)
100,165
Adjusted net income before income
taxes
$
701,988
$
558,018
Reconciliation of denominator for
pre-tax return on common equity to adjusted pre-tax return on
common equity:
Common shareholders' equity as of
beginning of the period
$
5,951,715
$
5,619,801
Common shareholders' equity as of end of
the period
$
5,589,634
$
5,951,715
Average common shareholders' equity
$
5,770,675
$
5,785,758
Adjusted pre-tax return on common
equity(c)
12.2
%
9.6
%
(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)
Six Months Ended June
30,
2022
2021
(unaudited)
Operating Activities
Net (loss)/income
$
(352,716
)
$
177,514
Adjustments to reconcile net (loss)/income
to net cash provided by operating activities:
Depreciation of flight equipment
470,591
426,782
Write-off of Russian fleet
802,352
—
Stock-based compensation expense
4,035
12,108
Deferred taxes
(104,963
)
38,985
Amortization of discounts and debt
issuance costs
26,610
24,538
Amortization of prepaid lease costs
23,355
22,267
Gain on aircraft sales, trading and other
activity
(71,753
)
(1,245
)
Changes in operating assets and
liabilities:
Other assets
(147,685
)
(96,234
)
Accrued interest and other payables
26,590
4,751
Rentals received in advance
12,423
(6,801
)
Net cash provided by operating
activities
688,839
602,665
Investing Activities
Acquisition of flight equipment under
operating lease
(1,569,310
)
(1,098,174
)
Payments for deposits on flight equipment
purchases
(345,643
)
(202,938
)
Proceeds from aircraft sales, trading and
other activity
1,166
2,042
Acquisition of aircraft furnishings,
equipment and other assets
(106,655
)
(102,303
)
Net cash used in investing activities
(2,020,442
)
(1,401,373
)
Financing Activities
Issuance of common stock upon exercise of
options
—
1,439
Cash dividends paid on Class A common
stock
(42,223
)
(36,475
)
Common shares repurchased
(150,000
)
—
Net proceeds from preferred stock
issuance
—
295,428
Cash dividends paid on preferred stock
(20,850
)
(11,679
)
Tax withholdings on stock-based
compensation
(9,027
)
(7,442
)
Net change in unsecured revolving
facilities
520,000
—
Proceeds from debt financings
1,497,615
2,574,089
Payments in reduction of debt
financings
(718,687
)
(2,576,841
)
Debt issuance costs
(5,613
)
(7,937
)
Security deposits and maintenance reserve
receipts
198,763
67,289
Security deposits and maintenance reserve
disbursements
(12,819
)
(24,170
)
Net cash provided by financing
activities
1,257,159
273,701
Net decrease in cash
(74,444
)
(525,007
)
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
$
1,033,848
$
1,232,760
Supplemental Disclosure of Cash Flow
Information
Cash paid during the period for interest,
including capitalized interest of $19,127 and $26,116 at June 30,
2022 and 2021, respectively
$
254,349
$
262,949
Cash paid for income taxes
$
3,557
$
2,491
Supplemental Disclosure of Noncash
Activities
Buyer furnished equipment, capitalized
interest and deposits on flight equipment purchases applied to
acquisition of flight equipment
$
343,794
$
449,486
Cash dividends declared, not yet paid
$
20,511
$
18,263
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220803006064/en/
Investors: Jason Arnold Vice President, Investor
Relations 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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