Air Lease Corporation (ALC) (NYSE: AL) announces financial
results for the three and nine months ended September 30,
2022.
“Global passenger traffic, along with airline revenue trends and
yields, remain on a solid recovery path with little sign of
abatement despite global economic and geopolitical factors. Lease
demand continues to accelerate, and we are in a good position
looking forward with our valuable remaining delivery positions,”
said John L. Plueger, Chief Executive Officer and President.
“Our strong balance sheet, young fleet, and attractive order
book are once again proving to be the right combination in today’s
world for our airline customers. Reflecting this confidence, I am
pleased to announce that our Board of Directors has authorized an
increase in our quarterly common stock dividend to $0.20 per share,
representing the 10th increase and 40th consecutive dividend
payment since the founding of ALC,” said Steven F. Udvar-Házy,
Executive Chairman of the Board.
Third Quarter 2022
Results
The following table summarizes our operating results for the
three and nine months ended September 30, 2022 and 2021 (in
millions, except per share amounts and percentages):
Operating Results
Three Months Ended
September 30,
Nine Months Ended
September 30,
2022
2021
$ change
% change
2022
2021
$ change
% change
Revenues
$
561.3
$
524.5
$
36.8
7.0
%
$
1,715.7
$
1,491.2
$
224.5
15.1
%
Operating expenses
(423.5
)
(390.0
)
(33.5
)
8.6
%
(1,232.3
)
(1,138.6
)
(93.7
)
8.2
%
Write-off of Russian fleet
—
—
—
—
%
(802.4
)
—
(802.4
)
100.0
%
Income/(loss) before taxes
137.8
134.5
3.3
2.5
%
(318.9
)
352.6
(671.5
)
(190.4
)%
Net income/(loss) attributable to common
stockholders
$
100.0
$
100.0
$
—
—
%
$
(273.6
)
$
265.8
$
(539.4
)
(202.9
)%
Diluted earnings/(loss) per share
$
0.90
$
0.87
$
0.03
3.4
%
$
(2.45
)
$
2.32
$
(4.77
)
(205.6
)%
Adjusted net income before income
taxes(1)
$
146.3
$
146.5
$
(0.2
)
(0.1
)%
$
501.7
$
389.5
$
112.2
28.8
%
Adjusted diluted earnings per share before
income taxes(1)
$
1.32
$
1.28
$
0.04
3.1
%
$
4.47
$
3.40
$
1.07
31.5
%
Key Financial Ratios
Three Months Ended
September 30,
Nine Months Ended
September 30,
2022
2021
2022
2021
Pre-tax margin
24.6
%
25.7
%
(18.6
)%
23.6
%
Pre-tax return on common equity (trailing
twelve months)
(2.9
)%
8.0
%
(2.9
)%
8.0
%
Adjusted pre-tax margin(1)
26.1
%
27.9
%
29.2
%
26.1
%
Adjusted pre-tax return on common equity
(trailing twelve months)(1)
12.0
%
9.1
%
12.0
%
9.1
%
(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 14 aircraft from our new order pipeline,
representing $843 million in aircraft investments, ending the
period with over $28 billion in total assets.
- As of September 30, 2022, we had 405 aircraft in our owned
fleet, with a net book value of $23.9 billion, a weighted average
age of 4.5 years and a weighted average lease term remaining of 7.0
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 $30.9 billion in committed minimum
future rental payments consisting of $15.1 billion in contracted
minimum rental payments on the aircraft in our existing fleet and
$15.8 billion in minimum future rental payments related to aircraft
on order.
- Increased our quarterly cash dividend by approximately 8.1%,
from $0.185 per share to $0.20 per share of our outstanding Class A
common stock. The next quarterly dividend of $0.20 per share will
be paid on January 10, 2023 to holders of record of our common
stock as of December 16, 2022.
Financial Overview
Our total revenues for the three months ended September 30, 2022
increased by 7.0% to $561.3 million as compared to the three months
ended September 30, 2021. The increase in total revenues was
primarily driven by the continued growth in our fleet,
significantly lower lease restructuring losses and higher aircraft
sales, trading and other revenue, offset by the loss of rental
revenue from the termination of our leasing activities in Russia
and cash basis accounting. The increase in aircraft sales, trading
and other revenue was primarily due to $11.6 million in gains from
the sale of one aircraft and four sales-type lease transactions for
the three months ended September 30, 2022. Our net income
attributable to common stockholders for the three months ended
September 30, 2022 was $100.0 million, or $0.90 per diluted share
compared to $100.0 million, or $0.87 per diluted share, for the
three months ended September 30, 2021. We recorded adjusted net
income before income taxes during the three months ended September
30, 2022 of $146.3 million or $1.32 per adjusted diluted share as
compared to $146.5 million or $1.28 per adjusted diluted share for
the three months ended September 30, 2021. Net income attributable
to common stockholders and adjusted net income before income taxes
remained in-line with the prior year period, primarily due to
increases in interest, depreciation and selling, general and
administrative expenses which partially offset the revenue
increases discussed above.
Flight Equipment
Portfolio
As of September 30, 2022 the net book value of our fleet
increased to $23.9 billion, compared to $22.9 billion as of
December 31, 2021. As of September 30, 2022, we owned 405 aircraft
in our aircraft portfolio, comprised of 297 narrowbody aircraft and
108 widebody aircraft, and we managed 87 aircraft. The weighted
average fleet age and weighted average remaining lease term of our
fleet as of September 30, 2022 was 4.5 years and 7.0 years,
respectively. We have a globally diversified customer base of 115
airlines in 61 countries.
The following table summarizes the key portfolio metrics of our
fleet as of September 30, 2022 and December 31, 2021:
September 30, 2022
December 31, 2021
Net book value of flight equipment subject
to operating lease
$
23.9 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
405
382
Managed fleet
87
92
Aircraft on order
412
431
Total
904
905
Current fleet contracted rentals
$
15.1 billion
$
14.8 billion
Committed fleet rentals
$
15.8 billion
$
16.1 billion
Total committed rentals
$
30.9 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:
September 30, 2022
December 31, 2021
Region
% of Net Book Value
% of Net Book Value
Europe
31.9 %
32.5 %
Asia (excluding China)
28.7 %
26.0 %
China
11.9 %
12.8 %
The Middle East and Africa
9.5 %
10.7 %
Central America, South America, and
Mexico
7.8 %
6.8 %
U.S. and Canada
6.5 %
7.2 %
Pacific, Australia, and New Zealand
3.7 %
4.0 %
Total
100.0 %
100.0 %
The following table details the composition of our flight
equipment subject to operating leases by aircraft type:
September 30, 2022
December 31, 2021
Aircraft type
Number of
Aircraft
% of Total
Number of
Aircraft
% of Total
Airbus A220-300
2
0.5
%
—
0.0
%
Airbus A319-100
1
0.2
%
1
0.3
%
Airbus A320-200
28
6.9
%
31
8.1
%
Airbus A320-200neo
26
6.4
%
23
6.0
%
Airbus A321-200
24
5.9
%
26
6.8
%
Airbus A321-200neo
73
18.0
%
69
18.1
%
Airbus A330-200
13
3.2
%
13
3.4
%
Airbus A330-300
5
1.2
%
8
2.1
%
Airbus A330-900neo
14
3.5
%
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
83
20.5
%
88
23.0
%
Boeing 737-8 MAX
44
10.9
%
28
7.3
%
Boeing 737-9 MAX
11
2.8
%
7
1.8
%
Boeing 777-200ER
1
0.2
%
1
0.3
%
Boeing 777-300ER
24
5.9
%
24
6.3
%
Boeing 787-9
26
6.4
%
26
6.8
%
Boeing 787-10
6
1.5
%
6
1.6
%
Embraer E190
1
0.2
%
1
0.3
%
Total (1)
405
100.0
%
382
100.0
%
(1)
As of September 30, 2022, we had four
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 third quarter of 2022 with total debt financing,
net of discounts and issuance costs, of $18.8 billion. As of
September 30, 2022, 87.0% of our total debt financing was at a
fixed rate and 99.3% was unsecured. As of September 30, 2022, our
composite cost of funds was 2.85%. We ended the third quarter with
total liquidity of $6.7 billion.
As of the end of the periods presented, our debt portfolio was
comprised of the following components (dollars in millions):
September 30, 2022
December 31, 2021
Unsecured
Senior notes
$
17,064
$
16,892
Revolving credit facility
1,570
—
Term financings
187
167
Total unsecured debt financing
18,821
17,059
Secured
Term financings
117
127
Export credit financing
13
18
Total secured debt financing
130
145
Total debt financing
18,951
17,204
Less: Debt discounts and issuance
costs
(182
)
(182
)
Debt financing, net of discounts and
issuance costs
$
18,769
$
17,022
Selected interest rates and
ratios:
Composite interest rate(1)
2.85
%
2.79
%
Composite interest rate on fixed-rate
debt(1)
2.86
%
2.90
%
Percentage of total debt at a
fixed-rate
87.0
%
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 November 3, 2022 at 4:30 PM Eastern
Time to discuss the Company's financial results for the third
quarter of 2022.
Investors can participate in the conference call by dialing 1
(888) 660-6652 domestic or 1 (647) 362-9199 international. The
passcode for the call is 5952437.
The conference call will also be broadcast live through a link
on the Investors 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
Investors 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 November 3, 2022 until 7:30 PM
ET on November 10, 2022. If you wish to listen to the replay of
this conference call, please dial 1 (800) 770-2030 domestic or 1
(647) 362-9199 international and enter passcode 5952437.
About Air Lease Corporation (NYSE: AL)
Air Lease Corporation is a leading global 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 new 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 its website at www.airleasecorp.com. Investors and
potential investors are encouraged to consult Air Lease
Corporation’s website regularly for important information. 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 manufacturer 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 detained 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)
September 30, 2022
December 31, 2021
(unaudited)
Assets
Cash and cash equivalents
$
1,101,844
$
1,086,500
Restricted cash
15,124
21,792
Flight equipment subject to operating
leases
28,656,269
27,101,808
Less accumulated depreciation
(4,727,410
)
(4,202,804
)
23,928,859
22,899,004
Deposits on flight equipment purchases
1,493,041
1,508,892
Other assets
1,685,103
1,452,534
Total assets
$
28,223,971
$
26,968,722
Liabilities and Shareholders’
Equity
Accrued interest and other payables
$
604,327
$
611,757
Debt financing, net of discounts and
issuance costs
18,769,057
17,022,480
Security deposits and maintenance reserves
on flight equipment leases
1,235,704
1,173,831
Rentals received in advance
149,923
138,816
Deferred tax liability
936,526
1,013,270
Total liabilities
$
21,695,537
$
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 September
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 September 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
3,250,169
3,399,245
Retained earnings
3,274,113
3,609,885
Accumulated other comprehensive loss
2,937
(1,808
)
Total shareholders’ equity
$
6,528,434
$
7,008,568
Total liabilities and shareholders’
equity
$
28,223,971
$
26,968,722
Air Lease Corporation and
Subsidiaries
CONSOLIDATED STATEMENTS OF
OPERATIONS
(In thousands, except share,
per share amounts and percentages)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2022
2021
2022
2021
(unaudited)
Revenues
Rental of flight equipment
$
541,397
$
519,535
$
1,653,223
$
1,439,674
Aircraft sales, trading and other
19,937
4,974
62,469
51,539
Total revenues
561,334
524,509
1,715,692
1,491,213
Expenses
Interest
122,348
114,659
358,621
346,244
Amortization of debt discounts and
issuance costs
13,162
12,571
39,772
37,109
Interest expense
135,510
127,230
398,393
383,353
Depreciation of flight equipment
242,503
224,960
713,095
651,742
Write-off of Russian fleet
—
—
802,352
—
Selling, general and administrative
39,718
31,082
110,993
84,682
Stock-based compensation expense
5,764
6,692
9,799
18,800
Total expenses
423,495
389,964
2,034,632
1,138,577
Income/(loss) before taxes
137,839
134,545
(318,940
)
352,636
Income tax (expense)/benefit
(27,458
)
(27,208
)
76,606
(67,785
)
Net income/(loss)
$
110,381
$
107,337
$
(242,334
)
$
284,851
Preferred stock dividends
(10,425
)
(7,331
)
(31,275
)
(19,010
)
Net income/(loss) attributable to
common stockholders
$
99,956
$
100,006
$
(273,609
)
$
265,841
Earnings/(Loss) per share of common
stock:
Basic
$
0.90
$
0.88
$
(2.45
)
$
2.33
Diluted
$
0.90
$
0.87
$
(2.45
)
$
2.32
Weighted-average shares
outstanding
Basic
110,892,097
114,122,512
111,874,002
114,071,951
Diluted
111,090,133
114,381,621
111,874,002
114,415,169
Other financial data
Pre-tax margin
24.6
%
25.7
%
(18.6
)%
23.6
%
Pre-tax return on common equity (trailing
twelve months)
(2.9
)%
8.0
%
(2.9
)%
8.0
%
Adjusted net income before income
taxes(1)
$
146,340
$
146,477
$
501,708
$
389,535
Adjusted diluted earnings per share before
income taxes(1)
$
1.32
$
1.28
$
4.47
$
3.40
Adjusted pre-tax margin(1)
26.1
%
27.9
%
29.2
%
26.1
%
Adjusted pre-tax return on common equity
(trailing twelve months)(1)
12.0
%
9.1
%
12.0
%
9.1
%
(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
September 30,
Nine Months Ended
September 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
$
99,956
$
100,006
$
(273,609
)
$
265,841
Amortization of debt discounts and
issuance costs
13,162
12,571
39,772
37,109
Write-off of Russian fleet
—
—
802,352
—
Stock-based compensation expense
5,764
6,692
9,799
18,800
Income tax expense/(benefit)
27,458
27,208
(76,606
)
67,785
Adjusted net income before income
taxes
$
146,340
$
146,477
$
501,708
$
389,535
Denominator for adjusted pre-tax
margin:
Total revenues
$
561,334
$
524,509
$
1,715,692
$
1,491,213
Adjusted pre-tax margin(a)
26.1
%
27.9
%
29.2
%
26.1
%
(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
September 30,
Nine Months Ended
September 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
$
99,956
$
100,006
$
(273,609
)
$
265,841
Amortization of debt discounts and
issuance costs
13,162
12,571
39,772
37,109
Write-off of Russian fleet
—
—
802,352
—
Stock-based compensation expense
5,764
6,692
9,799
18,800
Income tax expense/(benefit)
27,458
27,208
(76,606
)
67,785
Adjusted net income before income
taxes
$
146,340
$
146,477
$
501,708
$
389,535
Denominator for adjusted diluted
earnings per share:
Weighted-average diluted common shares
outstanding
111,090,133
114,381,621
111,874,002
114,415,169
Potentially dilutive securities, whose
effect would have been anti-dilutive
—
—
329,947
—
Adjusted weighted-average diluted common
shares outstanding
111,090,133
114,381,621
112,203,949
114,415,169
Adjusted diluted earnings per share before
income taxes(b)
$
1.32
$
1.28
$
4.47
$
3.40
(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 September 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
$
(131,292
)
$
373,090
Amortization of debt discounts and
issuance costs
53,284
48,474
Write-off of Russian fleet
802,352
—
Stock-based compensation expense
17,515
21,472
Income tax (benefit)/expense
(40,008
)
94,513
Adjusted net income before income
taxes
$
701,851
$
537,549
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
$
6,033,783
$
5,727,323
Common shareholders' equity as of end of
the period
$
5,678,434
$
6,033,783
Average common shareholders' equity
$
5,856,109
$
5,880,553
Adjusted pre-tax return on common
equity(c)
12.0
%
9.1
%
(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)
Nine Months Ended
September 30,
2022
2021
(unaudited)
Operating Activities
Net (loss)/income
$
(242,334
)
$
284,851
Adjustments to reconcile net (loss)/income
to net cash provided by operating activities:
Depreciation of flight equipment
713,095
651,742
Write-off of Russian fleet
802,352
—
Stock-based compensation expense
9,799
18,800
Deferred taxes
(78,035
)
64,931
Amortization of discounts and debt
issuance costs
39,772
37,109
Amortization of prepaid lease costs
34,734
33,603
Gain on aircraft sales, trading and other
activity
(85,616
)
(1,184
)
Changes in operating assets and
liabilities:
Other assets
(243,109
)
(148,982
)
Accrued interest and other payables
(8,354
)
(7,283
)
Rentals received in advance
16,259
(4,199
)
Net cash provided by operating
activities
958,563
929,388
Investing Activities
Acquisition of flight equipment under
operating lease
(2,166,317
)
(1,670,203
)
Payments for deposits on flight equipment
purchases
(428,424
)
(303,856
)
Proceeds from aircraft sales, trading and
other activity
42,043
2,042
Acquisition of aircraft furnishings,
equipment and other assets
(162,897
)
(178,359
)
Net cash used in investing activities
(2,715,595
)
(2,150,376
)
Financing Activities
Issuance of common stock upon exercise of
options
—
1,438
Cash dividends paid on Class A common
stock
(62,738
)
(54,737
)
Common shares repurchased
(150,000
)
(5,780
)
Net proceeds from preferred stock
issuance
—
295,428
Cash dividends paid on preferred stock
(31,275
)
(19,010
)
Tax withholdings on stock-based
compensation
(8,903
)
(7,441
)
Net change in unsecured revolving
facilities
1,570,000
—
Proceeds from debt financings
1,497,615
3,655,830
Payments in reduction of debt
financings
(1,327,146
)
(2,585,652
)
Debt issuance costs
(5,855
)
(9,688
)
Security deposits and maintenance reserve
receipts
308,637
112,155
Security deposits and maintenance reserve
disbursements
(24,627
)
(25,654
)
Net cash provided by financing
activities
1,765,708
1,356,889
Net decrease in cash
8,676
135,901
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
$
1,116,968
$
1,893,668
Supplemental Disclosure of Cash Flow
Information
Cash paid during the period for interest,
including capitalized interest of $29,335 and $38,265 at September
30, 2022 and 2021, respectively
$
442,461
$
428,349
Cash paid for income taxes
$
5,808
$
2,739
Supplemental Disclosure of Noncash
Activities
Buyer furnished equipment, capitalized
interest and deposits on flight equipment purchases applied to
acquisition of flight equipment
$
596,021
$
663,072
Cash dividends declared on common stock,
not yet paid
$
20,515
$
18,263
View source
version on businesswire.com: https://www.businesswire.com/news/home/20221102006177/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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