Air Lease Corporation (ALC) (NYSE: AL) announces financial
results for the three and six months ended June 30, 2023.
“Our second quarter results benefited from new aircraft
deliveries exceeding our expectations, coupled with gains from
higher volumes of aircraft sales. Lease rates continue to
strengthen and demand for both aircraft leasing and sales remain
robust, which we see continuing for the foreseeable future,” said
John L. Plueger, Chief Executive Officer and President, and Steven
F. Udvar-Házy, Executive Chairman of the Board.
Second Quarter 2023
Results
The following table summarizes our operating results for the
three and six months ended June 30, 2023 and 2022 (in millions,
except per share amounts and percentages):
Operating Results
Three Months Ended
June 30,
Six Months Ended
June 30,
2023
2022
$ change
% change
2023
2022
$ change
% change
Revenues
$
672.9
$
557.7
$
115.2
20.7
%
$
1,309.0
$
1,154.4
$
154.6
13.4
%
Operating expenses
(509.0
)
(412.8
)
(96.2
)
23.3
%
(986.8
)
(808.8
)
(178.0
)
22.0
%
Write-off of Russian fleet
—
—
—
—
%
—
(802.4
)
802.4
—
%
Income/(loss) before taxes
164.0
144.9
19.1
13.2
%
322.2
(456.8
)
779.0
—
%
Net income/(loss) attributable to common
stockholders
$
122.0
$
105.9
$
16.1
15.2
%
$
240.3
$
(373.6
)
$
613.9
—
%
Diluted earnings/(loss) per share
$
1.10
$
0.95
$
0.15
15.8
%
$
2.16
$
(3.32
)
$
5.48
—
%
Adjusted net income before income
taxes(1)
$
175.9
$
154.5
$
21.4
13.9
%
$
342.7
$
355.4
$
(12.7
)
(3.6
)%
Adjusted diluted earnings per share before
income taxes(1)
$
1.58
$
1.39
$
0.19
13.7
%
$
3.08
$
3.15
$
(0.07
)
(2.2
)%
Key Financial Ratios
Three Months Ended June
30,
Six Months Ended
June 30,
2023
2022
2023
2022
Pre-tax margin
24.4%
26.0%
24.6%
(39.6)%
Adjusted pre-tax margin(1)
26.1%
27.7%
26.2%
30.8%
Pre-tax return on common equity (trailing twelve months)
10.3%
(3.0)%
10.3%
(3.0)%
Adjusted pre-tax return on common equity (trailing twelve
months)(1)
11.2%
12.2%
11.2%
12.2%
(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 19 aircraft from our orderbook, representing
approximately $1.5 billion in aircraft investments, ending the
period with approximately $30 billion in total assets.
- Sold eight aircraft with a carrying value of approximately $600
million during the quarter, resulting in $45 million in gains from
aircraft sales.
- As of August 3, 2023, we had aircraft with a carrying value of
approximately $1.7 billion in our sales pipeline, which includes
the 19 aircraft with a carrying value of $900 million classified as
flight equipment held for sale as of June 30, 2023 and 22 aircraft
with a carrying value of $800 million subject to letters of
intent.
- Placed 100% of our contracted orderbook positions on long-term
leases for aircraft delivering through the end of 2024 and have
placed 58% of our entire orderbook.
- Ended the quarter with $29.6 billion in committed minimum
future rental payments consisting of $16.2 billion in contracted
minimum rental payments on the aircraft in our existing fleet and
$13.4 billion in minimum future rental payments related to aircraft
on order.
- During the quarter, we entered into approximately $900 million
in new financings. We ended the quarter with liquidity of $7.6
billion.
- On August 2, 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
October 6, 2023 to holders of record of our common stock as of
September 12, 2023.
Financial Overview
Our total revenues for the three months ended June 30, 2023
increased by 21% to $672.9 million as compared to the three months
ended June 30, 2022. The increase in total revenues was primarily
driven by the continued growth in our fleet and an increase in
sales activity. The increase in aircraft sales, trading and other
revenue was primarily related to the sale of eight aircraft which
generated approximately $45 million in gains. We did not sell any
aircraft for the three months ended June 30, 2022.
Our net income attributable to common stockholders for the three
months ended June 30, 2023 was $122.0 million, or $1.10 per diluted
share, compared to net income attributable to common stockholders
of $105.9 million, or $0.95 per diluted share, for the three months
ended June 30, 2022. Our adjusted net income before income taxes
during the three months ended June 30, 2023 was $175.9 million or
$1.58 per adjusted diluted share, as compared to $154.5 million, or
$1.39 per adjusted diluted share, for the three months ended June
30, 2022. Net income attributable to common stockholders and
adjusted net income before income taxes increased from the prior
year period due to the growth of our fleet and increase in sales
activity, partially offset by an increase in interest expense due
to the increases in our composite cost of funds, increase in
aircraft transition costs and increases in our aviation insurance
expense in line with the growth of our fleet in the current year
period.
Flight Equipment
Portfolio
As of June 30, 2023, the net book value of our fleet increased
to $25.5 billion, compared to $24.5 billion as of December 31,
2022. As of June 30, 2023, we owned 448 aircraft in our aircraft
portfolio, comprised of 332 narrowbody aircraft and 116 widebody
aircraft, and we managed 80 aircraft. The weighted average fleet
age and weighted average remaining lease term of flight equipment
subject to operating lease as of June 30, 2023 was 4.5 years and
7.2 years, respectively. We have a globally diversified customer
base of 118 airlines in 63 countries as of June 30, 2023.
The following table summarizes the key portfolio metrics of our
fleet as of June 30, 2023 and December 31, 2022:
June 30, 2023
December 31, 2022
Net book value of flight equipment subject
to operating lease
$
25.5 billion
$
24.5 billion
Weighted-average fleet age(1)
4.5 years
4.5 years
Weighted-average remaining lease
term(1)
7.2 years
7.1 years
Owned fleet(2)
448
417
Managed fleet
80
85
Aircraft on order
359
398
Total
887
900
Current fleet contracted rentals
$
16.2 billion
$
15.6 billion
Committed fleet rentals
$
13.4 billion
$
15.8 billion
Total committed rentals
$
29.6 billion
$
31.4 billion
(1) Weighted-average fleet age
and remaining lease term calculated based on net book value of our
flight equipment subject to operating lease.
(2) As of June 30, 2023, our
owned fleet count includes 19 aircraft classified as flight
equipment held for sale which is included in Other assets on the
Consolidated Balance Sheet.
The following table details the regional concentration of our
flight equipment subject to operating leases:
June 30, 2023
December 31, 2022
Region
% of Net Book Value
% of Net Book Value
Europe
36.4
%
32.5
%
Asia (excluding China)
30.1
%
29.1
%
The Middle East and Africa
8.3
%
9.3
%
Central America, South America, and
Mexico
8.2
%
7.8
%
China
7.6
%
11.4
%
U.S. and Canada
6.0
%
6.3
%
Pacific, Australia, and New Zealand
3.4
%
3.6
%
Total(1)
100.0
%
100.0
%
(1) As of December 31, 2022, we
had four aircraft classified as held for sale with a carrying value
of $153.5 million included in the table above.
The following table details the composition of our owned fleet
by aircraft type:
June 30, 2023
December 31, 2022
Aircraft type
Number of
Aircraft
% of Total
Number of
Aircraft
% of Total
Airbus A220-300
7
1.6
%
4
1.0
%
Airbus A319-100
1
0.2
%
1
0.2
%
Airbus A320-200
28
6.3
%
28
6.7
%
Airbus A320-200neo
24
5.4
%
23
5.5
%
Airbus A321-200
23
5.1
%
23
5.5
%
Airbus A321-200neo
89
19.8
%
78
18.7
%
Airbus A330-200(1)
13
2.9
%
13
3.1
%
Airbus A330-300
5
1.1
%
5
1.2
%
Airbus A330-900neo
20
4.5
%
16
3.8
%
Airbus A350-900
15
3.3
%
13
3.1
%
Airbus A350-1000
7
1.6
%
6
1.4
%
Boeing 737-700
3
0.7
%
4
1.0
%
Boeing 737-800
80
17.9
%
82
19.7
%
Boeing 737-8 MAX
51
11.4
%
47
11.3
%
Boeing 737-9 MAX
25
5.6
%
15
3.7
%
Boeing 777-200ER
1
0.2
%
1
0.2
%
Boeing 777-300ER
24
5.4
%
24
5.8
%
Boeing 787-9
25
5.6
%
27
6.5
%
Boeing 787-10
6
1.2
%
6
1.4
%
Embraer E190
1
0.2
%
1
0.2
%
Total(2)
448
100.0
%
417
100.0
%
(1) As of June 30, 2023, includes
one Airbus A330-200 aircraft classified as a freighter.
(2) As of June 30, 2023, our
owned fleet count includes 19 aircraft classified as flight
equipment held for sale which is included in Other assets on the
Consolidated Balance Sheet.
Debt Financing
Activities
We ended the second quarter of 2023 with total debt financing,
net of discounts and issuance costs, of $18.9 billion. As of June
30, 2023, 90.5% of our total debt financing was at a fixed rate and
98.9% was unsecured. As of June 30, 2023, our composite cost of
funds was 3.49%. 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, 2023
December 31, 2022
Unsecured
Senior unsecured securities
$
17,202
$
17,095
Revolving credit facility
1,000
1,020
Term financings
668
583
Total unsecured debt financing
18,870
18,698
Secured
Export credit financing
112
11
Term financings
108
114
Total secured debt financing
220
125
Total debt financing
19,090
18,823
Less: Debt discounts and issuance
costs
(194
)
(182
)
Debt financing, net of discounts and
issuance costs
$
18,896
$
18,641
Selected interest rates and
ratios:
Composite interest rate(1)
3.49
%
3.07
%
Composite interest rate on fixed-rate
debt(1)
3.21
%
2.98
%
Percentage of total debt at a
fixed-rate
90.5
%
91.3
%
(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 3, 2023 at 4:30 PM Eastern
Time to discuss the Company's financial results for the second
quarter of 2023.
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 on August 3, 2023 until 11:59 PM ET on August
10, 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 and debt markets, the impact of Russia’s
invasion of Ukraine and the impact of sanctions imposed on Russia,
aircraft and engine delivery delays, our aircraft sales pipeline
and expectations, the impact of inflation, rising interest rates
and other macroeconomic conditions 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 recover losses related to aircraft detained in
Russia, including through insurance claims and related
litigation;
- 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, or the
failure of such insurers to fulfill their contractual
obligations;
- 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 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, 2023
December 31, 2022
Assets
Cash and cash equivalents
$
576,730
$
766,418
Restricted cash
3,705
13,599
Flight equipment subject to operating
leases
30,623,894
29,466,888
Less accumulated depreciation
(5,108,155
)
(4,928,503
)
25,515,739
24,538,385
Deposits on flight equipment purchases
1,105,299
1,344,973
Other assets
2,556,349
1,733,330
Total assets
$
29,757,822
$
28,396,705
Liabilities and Shareholders’
Equity
Accrued interest and other payables
$
1,427,631
$
696,899
Debt financing, net of discounts and
issuance costs
18,895,793
18,641,063
Security deposits and maintenance reserves
on flight equipment leases
1,410,766
1,293,929
Rentals received in advance
141,294
147,654
Deferred tax liability
1,029,685
970,797
Total liabilities
$
22,905,169
$
21,750,342
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,
2023 and December 31, 2022, respectively
$
106
$
106
Class A common stock, $0.01 par value;
500,000,000 shares authorized; 111,027,252 and 110,892,097 shares
issued and outstanding at June 30, 2023 and December 31, 2022,
respectively
1,110
1,109
Class B Non-Voting common stock, $0.01 par
value; authorized 10,000,000 shares; no shares issued or
outstanding
—
—
Paid-in capital
3,267,230
3,255,973
Retained earnings
3,582,683
3,386,820
Accumulated other comprehensive income
1,524
2,355
Total shareholders’ equity
$
6,852,653
$
6,646,363
Total liabilities and shareholders’
equity
$
29,757,822
$
28,396,705
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,
2023
2022
2023
2022
(unaudited)
Revenues
Rental of flight equipment
$
611,733
$
545,271
$
1,229,506
$
1,111,825
Aircraft sales, trading and other
61,171
12,425
79,540
42,533
Total revenues
672,904
557,696
1,309,046
1,154,358
Expenses
Interest
172,174
118,997
323,786
236,274
Amortization of debt discounts and
issuance costs
13,646
13,413
26,719
26,610
Interest expense
185,820
132,410
350,505
262,884
Depreciation of flight equipment
268,586
235,284
528,266
470,591
Write-off of Russian fleet
—
—
—
802,352
Selling, general and administrative
45,832
38,512
93,447
71,277
Stock-based compensation expense
8,715
6,558
14,611
4,035
Total expenses
508,953
412,764
986,829
1,611,139
Income/(loss) before taxes
163,951
144,932
322,217
(456,781
)
Income tax (expense)/benefit
(31,550
)
(28,655
)
(61,096
)
104,065
Net income/(loss)
$
132,401
$
116,277
$
261,121
$
(352,716
)
Preferred stock dividends
(10,425
)
(10,425
)
(20,850
)
(20,850
)
Net income/(loss) attributable to
common stockholders
$
121,976
$
105,852
$
240,271
$
(373,566
)
Earnings/(Loss) per share of common
stock:
Basic
$
1.10
$
0.95
$
2.16
$
(3.32
)
Diluted
$
1.10
$
0.95
$
2.16
$
(3.32
)
Weighted-average shares of common stock
outstanding
Basic
111,021,133
110,868,040
110,982,557
112,373,092
Diluted
111,239,004
111,043,836
111,307,049
112,373,092
Other financial data
Pre-tax margin
24.4
%
26.0
%
24.6
%
(39.6
)%
Pre-tax return on common equity (trailing
twelve months)
10.3
%
(3.0
)%
10.3
%
(3.0
)%
Adjusted net income before income
taxes(1)
$
175,887
$
154,478
$
342,697
$
355,366
Adjusted diluted earnings per share before
income taxes(1)
$
1.58
$
1.39
$
3.08
$
3.15
Adjusted pre-tax margin(1)
26.1
%
27.7
%
26.2
%
30.8
%
Adjusted pre-tax return on common equity
(trailing twelve months)(1)
11.2
%
12.2
%
11.2
%
12.2
%
(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,
2023
2022
2023
2022
(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
$
121,976
$
105,852
$
240,271
$
(373,566
)
Amortization of debt discounts and
issuance costs
13,646
13,413
26,719
26,610
Write-off of Russian fleet
—
—
—
802,352
Stock-based compensation expense
8,715
6,558
14,611
4,035
Income tax expense/(benefit)
31,550
28,655
61,096
(104,065
)
Adjusted net income before income
taxes
$
175,887
$
154,478
$
342,697
$
355,366
Denominator for adjusted pre-tax
margin:
Total revenues
$
672,904
$
557,696
$
1,309,046
$
1,154,358
Adjusted pre-tax margin(a)
26.1
%
27.7
%
26.2
%
30.8
%
(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,
2023
2022
2023
2022
(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
$
121,976
$
105,852
$
240,271
$
(373,566
)
Amortization of debt discounts and
issuance costs
13,646
13,413
26,719
26,610
Write-off of Russian fleet
—
—
—
802,352
Stock-based compensation expense
8,715
6,558
14,611
4,035
Income tax expense/(benefit)
31,550
28,655
61,096
(104,065
)
Adjusted net income before income
taxes
$
175,887
$
154,478
$
342,697
$
355,366
Denominator for adjusted diluted
earnings per share:
Weighted-average diluted common shares
outstanding
111,239,004
111,043,836
111,307,049
112,373,092
Potentially dilutive securities, whose
effect would have been anti-dilutive
—
—
—
301,279
Adjusted weighted-average diluted common
shares outstanding
111,239,004
111,043,836
111,307,049
112,674,371
Adjusted diluted earnings per share before
income taxes(b)
$
1.58
$
1.39
$
3.08
$
3.15
(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):
Trailing Twelve Months
Ended June 30,
2023
2022
(unaudited)
Reconciliation of the numerator for
adjusted pre-tax return on common equity (net income/(loss)
attributable to common stockholders to adjusted net income before
income taxes):
Net income/(loss) attributable to common
stockholders
$
475,113
$
(131,242
)
Amortization of debt discounts and
issuance costs
53,363
52,693
(Recovery)/Write-off of Russian fleet
(30,877
)
802,352
Stock-based compensation expense
26,179
18,443
Income tax expense/(benefit)
123,419
(40,258
)
Adjusted net income before income
taxes
$
647,197
$
701,988
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
$
5,589,634
$
5,951,715
Common shareholders' equity as of end of
the period
$
6,002,653
$
5,589,634
Average common shareholders' equity
$
5,796,144
$
5,770,675
Adjusted pre-tax return on common
equity(c)
11.2
%
12.2
%
(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,
2023
2022
(in thousands)
Operating Activities
Net income/(loss)
$
261,121
$
(352,716
)
Adjustments to reconcile net income/(loss)
to net cash provided by operating activities:
Depreciation of flight equipment
528,266
470,591
Write-off of Russian fleet
—
802,352
Stock-based compensation expense
14,611
4,035
Deferred taxes
59,114
(104,963
)
Amortization of prepaid lease costs
36,064
23,355
Amortization of discounts and debt
issuance costs
26,719
26,610
Gain on aircraft sales, trading and other
activity
(86,838
)
(71,753
)
Changes in operating assets and
liabilities:
Other assets
7,028
(147,685
)
Accrued interest and other payables
38,986
26,590
Rentals received in advance
(4,172
)
12,423
Net cash provided by operating
activities
880,899
688,839
Investing Activities
Acquisition of flight equipment under
operating lease
(2,416,609
)
(1,569,310
)
Payments for deposits on flight equipment
purchases
(134,825
)
(345,643
)
Proceeds from aircraft sales, trading and
other activity
1,261,476
1,166
Acquisition of aircraft furnishings,
equipment and other assets
(125,541
)
(106,655
)
Net cash used in investing activities
(1,415,499
)
(2,020,442
)
Financing Activities
Cash dividends paid on Class A common
stock
(44,382
)
(42,223
)
Common shares repurchased
—
(150,000
)
Cash dividends paid on preferred stock
(20,850
)
(20,850
)
Tax withholdings on stock-based
compensation
(3,354
)
(9,027
)
Net change in unsecured revolving
facility
(20,000
)
520,000
Proceeds from debt financings
1,538,087
1,497,615
Payments in reduction of debt
financings
(1,287,880
)
(718,687
)
Debt issuance costs
(9,149
)
(5,613
)
Security deposits and maintenance reserve
receipts
188,471
198,763
Security deposits and maintenance reserve
disbursements
(5,925
)
(12,819
)
Net cash provided by financing
activities
335,018
1,257,159
Net decrease in cash
(199,582
)
(74,444
)
Cash, cash equivalents and restricted cash
at beginning of period
780,017
1,108,292
Cash, cash equivalents and restricted cash
at end of period
$
580,435
$
1,033,848
Supplemental Disclosure of Cash Flow
Information
Cash paid during the period for interest,
including capitalized interest of $21,336 and $19,127 at June 30,
2023 and 2022, respectively
$
325,365
$
254,349
Cash paid for income taxes
$
5,573
$
3,557
Supplemental Disclosure of Noncash
Activities
Buyer furnished equipment, capitalized
interest and deposits on flight equipment purchases applied to
acquisition of flight equipment
$
552,058
$
343,794
Cash dividends declared on Class A common
stock, not yet paid
$
22,205
$
20,511
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230802391853/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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