Air Lease Corporation (ALC) (NYSE: AL) announces financial
results for the three months and year ended December 31,
2022.
“Aircraft demand is bolstering lease rates, accelerating our
orderbook placements, and intensifying lease extension requests.
Airline industry recovery with constrained balance sheets, drive
for environmental sustainability, and lack of available delivery
slots from the OEMs continues to favor ALC’s business model of
providing new aircraft from our orderbook,” said John L. Plueger,
Chief Executive Officer and President.
“High quality commercial aircraft are increasingly in limited
supply given strong airline need for capacity – exacerbated by
ongoing delivery delays at both Boeing and Airbus, which we do not
see abating. We expect to see continued growth and strength in
global air traffic and airline yields in 2023, offering a
counterbalance to global macroeconomic cross-currents,” said Steven
F. Udvar-Házy, Executive Chairman of the Board.
Fourth Quarter and Fiscal Year 2022
Results
The following table summarizes our operating results for the
three months and year ended December 31, 2022 and 2021 (in
millions, except per share amounts and percentages):
Operating Results
Three Months Ended
December 31,
Year Ended December
31,
2022
2021
$ change
% change
2022
2021
$ change
% change
Revenues
$
601.6
$
597.2
$
4.4
0.7
%
$
2,317.3
$
2,088.4
$
228.9
11.0
%
Operating expenses
(452.3
)
(408.8
)
(43.5
)
10.6
%
(1,684.6
)
(1,547.4
)
(137.2
)
8.9
%
Recovery/(write-off) of Russian fleet
30.9
—
30.9
100.0
%
(771.5
)
—
(771.5
)
100.0
%
Income/(loss) before taxes
180.2
188.4
(8.2
)
(4.4
) %
(138.8
)
541.0
(679.8
)
(125.7
) %
Net income/(loss) attributable to common
stockholders
$
134.9
$
142.3
$
(7.4
)
(5.2
) %
$
(138.7
)
$
408.2
$
(546.9
)
(134.0
) %
Diluted earnings/(loss) per share
$
1.21
$
1.24
$
(0.03
)
(2.4
) %
$
(1.24
)
$
3.57
$
(4.81
)
(134.7
) %
Adjusted net income before income
taxes(1)
$
158.2
$
200.1
$
(41.9
)
(20.9
) %
$
659.9
$
589.7
$
70.2
11.9
%
Adjusted diluted earnings per share before
income taxes(1)
$
1.42
$
1.75
$
(0.33
)
(18.9
) %
$
5.89
$
5.15
$
0.74
14.4
%
Key Financial Ratios
Three Months Ended
December 31,
Year Ended December
31,
2022
2021
2022
2021
Pre-tax margin
29.9%
31.5%
(6.0)%
25.9%
Adjusted pre-tax margin(1)
26.3%
33.5%
28.5%
28.2%
Pre-tax return on common equity (trailing
twelve months)
(3.0)%
8.6%
Adjusted pre-tax return on common equity
(trailing twelve months)(1)
11.0%
9.8%
(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
- As of December 31, 2022, we had 417 aircraft in our owned
fleet, with a net book value of $24.5 billion, a weighted average
age of 4.5 years and a weighted average lease term remaining of 7.1
years. During the fourth quarter, we took delivery of 16 aircraft
from our order book, representing approximately $1.0 billion in
aircraft investments, ending the period with over $28 billion in
total assets.
- Sold five aircraft during the quarter for approximately $211
million in proceeds.
- In October 2022, we recovered one Boeing 737-8 MAX aircraft
previously detained in Russia, resulting in an approximately $31
million offset to the write-off line item in our income
statement.
- Placed 90% of our contracted orderbook positions on long-term
leases for aircraft delivering through the end of 2024 and have
placed 60% of our entire orderbook.
- Ended the year with $31.4 billion in committed minimum future
rental payments consisting of $15.6 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.
- Issued $2.2 billion of senior unsecured Medium-Term Notes in
2022 with a weighted average interest rate of 3.59% and ended the
year with total liquidity of $6.9 billion.
- On February 14, 2023, our board of directors declared a
quarterly cash dividend of $0.20 per share on our outstanding
common stock. The next quarterly dividend of $0.20 per share will
be paid on April 12, 2023 to holders of record of our common stock
as of March 16, 2023.
Financial Overview
Our total revenues for the year ended December 31, 2022
increased by 11% to $2.3 billion as compared to the year ended
December 31, 2021. The increase in total revenues was primarily
driven by the continued growth in our fleet and significantly lower
COVID-19 related lease restructuring and cash basis losses.
Our net loss attributable to common stockholders for the year
ended December 31, 2022 was $138.7 million, or net loss of $1.24
per diluted share compared to net income of $408.2 million, or
$3.57 per diluted share, for the year ended December 31, 2021.
Despite the growth of our fleet, the decrease was due to the net
impact of the write-off of our Russian fleet, which totaled
approximately $771.5 million as of December 31, 2022.
Our adjusted net income before income taxes during the year
ended December 31, 2022 was $659.9 million or $5.89 per adjusted
diluted share as compared to $589.7 million or $5.15 per adjusted
diluted share for the year ended December 31, 2021. The increase
for the year ended December 31, 2022 as compared to 2021, was
primarily due to the continued growth of our fleet and the increase
in revenues as discussed above.
Flight Equipment
Portfolio
As of December 31, 2022 the net book value of our fleet
increased to $24.5 billion, compared to $22.9 billion as of
December 31, 2021. As of December 31, 2022, we owned 417 aircraft
in our aircraft portfolio, comprised of 306 narrowbody aircraft and
111 widebody aircraft, and we managed 85 aircraft. The weighted
average fleet age and weighted average remaining lease term of our
fleet as of December 31, 2022 was 4.5 years and 7.1 years,
respectively. We have a globally diversified customer base of 117
airlines in 62 countries as of December 31, 2022.
The following table summarizes the key portfolio metrics of our
fleet as of December 31, 2022 and December 31, 2021:
December 31, 2022
December 31, 2021
Net book value of flight equipment subject
to operating lease
$
24.5 billion
$
22.9 billion
Weighted-average fleet age(1)
4.5 years
4.4 years
Weighted-average remaining lease
term(1)
7.1 years
7.2 years
Owned fleet
417
382
Managed fleet
85
92
Aircraft on order
398
431
Total
900
905
Current fleet contracted rentals
$
15.6 billion
$
14.8 billion
Committed fleet rentals
$
15.8 billion
$
16.1 billion
Total committed rentals
$
31.4 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:
December 31, 2022
December 31, 2021
Region
% of Net Book Value
% of Net Book Value
Europe
32.5 %
32.5 %
Asia (excluding China)
29.1 %
26.0 %
China
11.4 %
12.8 %
The Middle East and Africa
9.3 %
10.7 %
Central America, South America, and
Mexico
7.8 %
6.8 %
U.S. and Canada
6.3 %
7.2 %
Pacific, Australia, and New Zealand
3.6 %
4.0 %
Total
100.0 %
100.0 %
The following table details the composition of our flight
equipment subject to operating leases by aircraft type:
December 31, 2022
December 31, 2021
Aircraft type
Number of
Aircraft
% of Total
Number of
Aircraft
% of Total
Airbus A220-300
4
1.0 %
—
— %
Airbus A319-100
1
0.2 %
1
0.3 %
Airbus A320-200
28
6.7 %
31
8.1 %
Airbus A320-200neo
23
5.5 %
23
6.0 %
Airbus A321-200
23
5.5 %
26
6.8 %
Airbus A321-200neo
78
18.7 %
69
18.1 %
Airbus A330-200
13
3.1 %
13
3.4 %
Airbus A330-300
5
1.2 %
8
2.1 %
Airbus A330-900neo
16
3.8 %
9
2.4 %
Airbus A350-900
13
3.1 %
12
3.1 %
Airbus A350-1000
6
1.4 %
5
1.3 %
Boeing 737-700
4
1.0 %
4
1.0 %
Boeing 737-800
82
19.7 %
88
23.0 %
Boeing 737-8 MAX
47
11.3 %
28
7.3 %
Boeing 737-9 MAX
15
3.7 %
7
1.8 %
Boeing 777-200ER
1
0.2 %
1
0.3 %
Boeing 777-300ER
24
5.8 %
24
6.3 %
Boeing 787-9
27
6.5 %
26
6.8 %
Boeing 787-10
6
1.4 %
6
1.6 %
Embraer E190
1
0.2 %
1
0.3 %
Total (1)
417
100.0 %
382
100.0 %
(1) As of December 31, 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 fourth quarter of 2022 with total debt financing,
net of discounts and issuance costs, of $18.6 billion. As of
December 31, 2022, 91.3% of our total debt financing was at a fixed
rate and 99.3% was unsecured. As of December 31, 2022, our
composite cost of funds was 3.07%. We ended the fourth quarter with
total liquidity of $6.9 billion.
As of the end of the periods presented, our debt portfolio was
comprised of the following components (dollars in millions):
December 31, 2022
December 31, 2021
Unsecured
Senior notes
$
17,095
$
16,892
Revolving credit facility
1,020
—
Term financings
583
167
Total unsecured debt financing
18,698
17,059
Secured
Term financings
114
127
Export credit financing
11
18
Total secured debt financing
125
145
Total debt financing
18,823
17,204
Less: Debt discounts and issuance
costs
(182
)
(182
)
Debt financing, net of discounts and
issuance costs
$
18,641
$
17,022
Selected interest rates and
ratios:
Composite interest rate(1)
3.07
%
2.79
%
Composite interest rate on fixed-rate
debt(1)
2.98
%
2.90
%
Percentage of total debt at a
fixed-rate
91.3
%
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 February 16, 2023 at 4:30 PM Eastern
Time to discuss the Company's financial results for the fourth
quarter and year end 2022.
Investors can participate in the conference call by dialing 1
(888) 660-6652 domestic or 1 (646) 960-0554 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 February 16, 2023 until 7:30 PM
ET on February 23, 2023. 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,
our access to the capital markets, the impact of Russia’s invasion
of Ukraine and the impact of sanctions imposed on Russia, 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;
- our ability to pursue insurance claims to recover losses
related to aircraft detained 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,
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, 2022, “Part II — Item 1A. Risk Factors,” 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)
December 31, 2022
December 31, 2021
Assets
Cash and cash equivalents
$
766,418
$
1,086,500
Restricted cash
13,599
21,792
Flight equipment subject to operating
leases
29,466,888
27,101,808
Less accumulated depreciation
(4,928,503
)
(4,202,804
)
24,538,385
22,899,004
Deposits on flight equipment purchases
1,344,973
1,508,892
Other assets
1,733,330
1,452,534
Total assets
$
28,396,705
$
26,968,722
Liabilities and Shareholders’
Equity
Accrued interest and other payables
$
696,899
$
611,757
Debt financing, net of discounts and
issuance costs
18,641,063
17,022,480
Security deposits and maintenance reserves
on flight equipment leases
1,293,929
1,173,831
Rentals received in advance
147,654
138,816
Deferred tax liability
970,797
1,013,270
Total liabilities
$
21,750,342
$
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 December
31, 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 December 31, 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
3,255,973
3,399,245
Retained earnings
3,386,820
3,609,885
Accumulated other comprehensive
income/(loss)
2,355
(1,808
)
Total shareholders’ equity
$
6,646,363
$
7,008,568
Total liabilities and shareholders’
equity
$
28,396,705
$
26,968,722
Air Lease Corporation and
Subsidiaries
CONSOLIDATED STATEMENTS OF
OPERATIONS
(In thousands, except share,
per share amounts and percentages)
Three Months Ended
December 31,
Year Ended December
31,
2022
2021
2022
2021
(unaudited)
Revenues
Rental of flight equipment
$
561,285
$
563,663
$
2,214,508
$
2,003,337
Aircraft sales, trading and other
40,325
33,513
102,794
85,052
Total revenues
601,610
597,176
2,317,302
2,088,389
Expenses
Interest
134,303
116,152
492,924
462,396
Amortization of debt discounts and
issuance costs
13,482
13,511
53,254
50,620
Interest expense
147,785
129,663
546,178
513,016
Depreciation of flight equipment
252,860
230,819
965,955
882,562
(Recovery)/write-off of Russian fleet
(30,877)
—
771,476
—
Selling, general and administrative
45,862
40,598
156,855
125,279
Stock-based compensation expense
5,804
7,716
15,603
26,516
Total expenses
421,434
408,796
2,456,067
1,547,373
Income/(loss) before taxes
180,176
188,380
(138,765)
541,016
Income tax (expense)/benefit
(34,865)
(36,599)
41,741
(104,384)
Net income/(loss)
$
145,311
$
151,781
$
(97,024)
$
436,632
Preferred stock dividends
(10,425)
(9,463)
(41,700)
(28,473)
Net income/(loss) attributable to
common stockholders
$
134,886
$
142,318
$
(138,724)
$
408,159
Earnings/(Loss) per share of common
stock:
Basic
$
1.22
$
1.25
$
(1.24)
$
3.58
Diluted
$
1.21
$
1.24
$
(1.24)
$
3.57
Weighted-average shares of common stock
outstanding
Basic
110,892,097
113,987,154
111,626,508
114,050,578
Diluted
111,162,063
114,332,498
111,626,508
114,446,093
Other financial data
Pre-tax margin
29.9 %
31.5 %
(6.0) %
25.9 %
Pre-tax return on common equity (trailing
twelve months)
(3.0) %
8.6 %
(3.0) %
8.6 %
Adjusted net income before income
taxes(1)
$
158,160
$
200,144
$
659,868
$
589,679
Adjusted diluted earnings per share before
income taxes(1)
$
1.42
$
1.75
$
5.89
$
5.15
Adjusted pre-tax margin(1)
26.3 %
33.5 %
28.5 %
28.2 %
Adjusted pre-tax return on common equity
(trailing twelve months)(1)
11.0 %
9.8 %
11.0 %
9.8 %
(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
December 31,
Year Ended December
31,
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
$
134,886
$
142,318
$
(138,724)
$
408,159
Amortization of debt discounts and
issuance costs
13,482
13,511
53,254
50,620
(Recovery)/write-off of Russian fleet
(30,877)
—
771,476
—
Stock-based compensation expense
5,804
7,716
15,603
26,516
Income tax expense/(benefit)
34,865
36,599
(41,741)
104,384
Adjusted net income before income
taxes
$
158,160
$
200,144
$
659,868
$
589,679
Denominator for adjusted pre-tax
margin:
Total revenues
$
601,610
$
597,176
$
2,317,302
$
2,088,389
Adjusted pre-tax margin(a)
26.3 %
33.5 %
28.5 %
28.2 %
(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
December 31,
Year Ended December
31,
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
$
134,886
$
142,318
$
(138,724
)
$
408,159
Amortization of debt discounts and
issuance costs
13,482
13,511
53,254
50,620
(Recovery)/write-off of Russian fleet
(30,877
)
—
771,476
—
Stock-based compensation expense
5,804
7,716
15,603
26,516
Income tax expense/(benefit)
34,865
36,599
(41,741
)
104,384
Adjusted net income before income
taxes
$
158,160
$
200,144
$
659,868
$
589,679
Denominator for adjusted diluted
earnings per share:
Weighted-average diluted common shares
outstanding
111,162,063
114,332,498
111,626,508
114,446,093
Potentially dilutive securities, whose
effect would have been anti-dilutive
—
—
361,186
—
Adjusted weighted-average diluted common
shares outstanding
111,162,063
114,332,498
111,987,694
114,446,093
Adjusted diluted earnings per share before
income taxes(b)
$
1.42
$
1.75
$
5.89
$
5.15
(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):
Year Ended December
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
$
(138,724)
$
408,159
Amortization of debt discounts and
issuance costs
53,254
50,620
Write-off of Russian fleet, net of
recoveries
771,476
—
Stock-based compensation expense
15,603
26,516
Income tax (benefit)/expense
(41,741)
104,384
Adjusted net income before income
taxes
$
659,868
$
589,679
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
$
6,158,568
$
5,822,341
Common shareholders' equity as of end of
the period
$
5,796,363
$
6,158,568
Average common shareholders' equity
$
5,977,466
$
5,990,455
Adjusted pre-tax return on common
equity(c)
11.0 %
9.8 %
(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,
2022
2021
(in thousands)
Operating Activities
Net (loss)/income
$
(97,024
)
$
436,632
Adjustments to reconcile net (loss)/income
to net cash provided by operating activities:
Depreciation of flight equipment
965,955
882,562
Write-off of Russian fleet, net of
recoveries
771,476
—
Stock-based compensation expense
15,603
26,516
Deferred taxes
(43,492
)
97,446
Amortization of prepaid lease costs
47,849
46,547
Amortization of discounts and debt
issuance costs
53,254
50,620
Gain on aircraft sales, trading and other
activity
(113,103
)
(46,109
)
Changes in operating assets and
liabilities:
Other assets
(232,613
)
(176,391
)
Accrued interest and other payables
255
63,112
Rentals received in advance
13,990
(4,099
)
Net cash provided by operating
activities
1,382,150
1,376,836
Investing Activities
Acquisition of flight equipment under
operating lease
(2,904,723
)
(2,506,175
)
Payments for deposits on flight equipment
purchases
(518,270
)
(496,838
)
Proceeds from aircraft sales, trading and
other activity
235,424
137,887
Acquisition of aircraft furnishings,
equipment and other assets
(216,635
)
(229,654
)
Net cash used in investing activities
(3,404,204
)
(3,094,780
)
Financing Activities
Issuance of common stock upon exercise of
options
—
1,438
Net proceeds from preferred stock
issuance
—
591,340
Cash dividends paid on Class A common
stock
(83,253
)
(73,001
)
Common shares repurchased
(150,000
)
(5,780
)
Cash dividends paid on preferred stock
(41,700
)
(28,473
)
Tax withholdings on stock-based
compensation
(8,903
)
(7,441
)
Net change in unsecured revolving
facilities
1,020,000
—
Proceeds from debt financings
2,659,996
3,655,830
Payments in reduction of debt
financings
(2,085,898
)
(3,194,482
)
Debt issuance costs
(6,827
)
(10,245
)
Security deposits and maintenance reserve
receipts
417,224
174,521
Security deposits and maintenance reserve
disbursements
(26,860
)
(35,238
)
Net cash provided by financing
activities
1,693,779
1,068,469
Net decrease in cash
(328,275
)
(649,475
)
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
$
780,017
$
1,108,292
Supplemental Disclosure of Cash Flow
Information
Cash paid during the period for interest,
including capitalized interest of $39,655 and $49,070 at December
31, 2022 and 2021, respectively
$
533,897
$
508,616
Cash paid for income taxes
$
6,362
$
5,734
Supplemental Disclosure of Noncash
Activities
Buyer furnished equipment, capitalized
interest and deposits on flight equipment purchases applied to
acquisition of flight equipment
$
914,501
$
1,009,554
Cash dividends declared on common stock,
not yet paid
$
22,178
$
21,088
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230214005895/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 Senior Manager, Media and Investor Relations
Email: press@airleasecorp.com
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