Air Lease Corporation (ALC) (NYSE: AL) announces financial
results for the three and nine months ended September 30,
2024.
“Demand for commercial aircraft remains high, and we are
continuing to place aircraft at rising lease rates, while also
harvesting solid gains on sales from our existing fleet –
underscoring the deep value embedded in our young $28 billion fleet
and $18 billion forward orderbook,” said John L. Plueger, Chief
Executive Officer and President, and Steven F. Udvar-Házy,
Executive Chairman of the Board.
Third Quarter 2024
Results
The following table summarizes our operating results for the
three and nine months ended September 30, 2024 and 2023 (in
millions, except per share amounts and percentages):
Operating Results
Three Months Ended
September 30,
Nine Months Ended
September 30,
2024
2023
$ change
% change
2024
2023
$ change
% change
Revenues
$
690.2
$
659.4
$
30.8
4.7
%
$
2,020.8
$
1,968.4
$
52.4
2.7
%
Operating expenses
(559.9
)
(494.3
)
(65.6
)
13.3
%
(1,627.5
)
(1,481.2
)
(146.3
)
9.9
%
Income before taxes
130.2
165.0
(34.8
)
(21.1
)%
393.3
487.2
(93.9
)
(19.3
)%
Net income attributable to common
stockholders
$
91.6
$
122.0
$
(30.4
)
(24.9
)%
$
279.5
$
362.3
$
(82.8
)
(22.9
)%
Diluted earnings per share
$
0.82
$
1.10
$
(0.28
)
(25.5
)%
$
2.50
$
3.25
$
(0.75
)
(23.1
)%
Adjusted net income before income
taxes(1)
$
140.2
$
177.0
$
(36.8
)
(20.8
)%
$
423.8
$
519.7
$
(95.9
)
(18.5
)%
Adjusted diluted earnings per share before
income taxes(1)
$
1.25
$
1.59
$
(0.34
)
(21.4
)%
$
3.79
$
4.67
$
(0.88
)
(18.8
)%
Key Financial Ratios
Three Months Ended
September 30,
Nine Months Ended
September 30,
2024
2023
2024
2023
Pre-tax margin
18.9%
25.0%
19.5%
24.8%
Adjusted pre-tax margin(1)
20.3%
26.8%
21.0%
26.4%
Pre-tax return on common equity (trailing
twelve months)
9.7%
10.6%
9.7%
10.6%
Adjusted pre-tax return on common equity
(trailing twelve months)(1)
10.1%
11.5%
10.1%
11.5%
——————————————————————
(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 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
- During the third quarter, we took delivery of 20 aircraft from
our orderbook, representing approximately $1.9 billion in aircraft
investments, ending the period with 485 aircraft in our owned fleet
and approximately $32 billion in total assets.
- Sold nine aircraft during the third quarter for approximately
$340 million in sales proceeds. During the twelve months ended
September 30, 2024, we sold $1.4 billion in aircraft by net book
value for sales proceeds of $1.5 billion.
- We have approximately $1.5 billion of aircraft in our sales
pipeline1, which includes $741 million in flight equipment held for
sale as of September 30, 2024 and $745 million of aircraft subject
to letters of intent.
- We have placed 100% and 95% of our committed orderbook on
long-term leases for aircraft delivering through the end of 2025
and 2026, respectively, and have placed approximately 63% of our
entire orderbook delivering through 2029.
- We ended the quarter with $29.7 billion in committed minimum
future rental payments consisting of $17.6 billion in contracted
minimum rental payments on the aircraft in our existing fleet and
$12.1 billion in minimum future rental payments related to aircraft
which will deliver during the last three months of 2024 through
2028.
- During the quarter, we entered into a variety of committed term
loans totaling approximately $1.0 billion, which displays our
ability to access various financing alternatives.
- In September 2024, we issued $300.0 million in 6.00% Fixed-Rate
Reset Non-Cumulative Perpetual Preferred Stock, Series D.
- In October 2024, we redeemed all outstanding shares of our
6.150% Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred
Stock, Series A.
- On November 6, 2024, our board of directors increased our
quarterly cash dividend by 5%, from $0.21 per share to $0.22 per
share on our outstanding Class A common stock. The next quarterly
dividend of $0.22 per share will be paid on January 9, 2025 to
holders of record of our Class A common stock as of December 12,
2024.
Financial Overview
Our rental revenues for the three months ended September 30,
2024 increased by 3.5%, to $625 million, as compared to the three
months ended September 30, 2023. The increase in our rental
revenues is primarily due to the growth of our fleet, partially
offset by a decline in end of lease revenue of approximately $12
million as compared to the prior period due to fewer aircraft
returns during the three months ended September 30, 2024, as well
as a slight decrease in our lease yields due to the sales of older
aircraft with higher lease yields and the purchases of new aircraft
with lower initial lease yields.
Our aircraft sales, trading and other revenues for the three
months ended September 30, 2024 increased by 17%, to $65 million,
as compared to the three months ended September 30, 2023 primarily
driven by an increase in gains from aircraft sales. We recorded $42
million in gains from the sale of nine aircraft for the three
months ended September 30, 2024, compared to $39 million in gains
from the sale of eight aircraft for the three months ended
September 30, 2023.
Our net income attributable to common stockholders for the three
months ended September 30, 2024, was $92 million, or $0.82 per
diluted share, as compared to $122 million, or $1.10 per diluted
share, for the three months ended September 30, 2023. The decrease
from the prior year period is primarily due to higher interest
expense, driven by the increase in our composite cost of funds and
overall outstanding debt balance, partially offset by an increase
in our revenues as discussed above.
Adjusted net income before income taxes during the three months
ended September 30, 2024, was $140 million, or $1.25 per adjusted
diluted share, as compared to $177 million, or $1.59 per adjusted
diluted share, for the three months ended September 30, 2023.
Adjusted net income before income taxes decreased primarily due to
higher interest expense, driven by the increase in our composite
cost of funds and overall outstanding debt balance, partially
offset by an increase in our revenues as discussed above.
——————————————————————
1 Aircraft in our sales pipeline is as of
September 30, 2024, and includes letters of intent and sale
agreements signed through November 7, 2024.
Flight Equipment
Portfolio
As of September 30, 2024, the net book value of our fleet
increased to $27.9 billion, compared to $26.2 billion as of
December 31, 2023. As of September 30, 2024, we owned 485 aircraft
in our aircraft portfolio, comprised of 356 narrowbody aircraft and
129 widebody aircraft, and we managed 64 aircraft. The weighted
average fleet age and weighted average remaining lease term of
flight equipment subject to operating lease as of September 30,
2024 was 4.6 years and 7.1 years, respectively. We had a globally
diversified customer base comprised of 117 airlines in 59 countries
as of September 30, 2024.
The following table summarizes the key portfolio metrics of our
fleet as of September 30, 2024 and December 31, 2023:
September 30, 2024
December 31, 2023
Net book value of flight equipment subject
to operating lease
$
27.9 billion
$
26.2 billion
Weighted-average fleet age(1)
4.6 years
4.6 years
Weighted-average remaining lease
term(1)
7.1 years
7.0 years
Owned fleet(2)
485
463
Managed fleet
64
78
Aircraft on order
287
334
Total
836
875
Current fleet contracted rentals
$
17.6 billion
$
16.4 billion
Committed fleet rentals
$
12.1 billion
$
14.6 billion
Total committed rentals
$
29.7 billion
$
31.0 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 September 30, 2024 and December
31, 2023, our owned fleet count included 23 and 14 aircraft
classified as flight equipment held for sale, respectively, and 14
and 12 aircraft classified as net investments in sales-type leases,
respectively, which are all included in Other assets on the
Consolidated Balance Sheet.
The following table details the regional concentration of our
flight equipment subject to operating leases:
September 30, 2024
December 31, 2023
Region
% of Net Book Value
% of Net Book Value
Europe
41.0
%
37.7
%
Asia Pacific
36.4
%
39.8
%
Central America, South America, and
Mexico
9.7
%
9.0
%
The Middle East and Africa
7.1
%
7.9
%
U.S. and Canada
5.8
%
5.6
%
Total
100.0
%
100.0
%
The following table details the composition of our owned fleet
by aircraft type:
September 30, 2024
December 31, 2023
Aircraft type
Number of
Aircraft
% of Total
Number of
Aircraft
% of Total
Airbus A220-100
5
1.0
%
2
0.4
%
Airbus A220-300
17
3.5
%
13
2.8
%
Airbus A319-100
1
0.2
%
1
0.2
%
Airbus A320-200
26
5.4
%
28
6.0
%
Airbus A320-200neo
23
4.7
%
25
5.4
%
Airbus A321-200
21
4.3
%
23
5.0
%
Airbus A321-200neo
108
22.3
%
95
20.6
%
Airbus A330-200(1)
13
2.7
%
13
2.8
%
Airbus A330-300
5
1.0
%
5
1.1
%
Airbus A330-900neo
26
5.4
%
23
5.0
%
Airbus A350-900
17
3.5
%
14
3.0
%
Airbus A350-1000
8
1.6
%
7
1.5
%
Boeing 737-700
2
0.4
%
3
0.6
%
Boeing 737-800
64
13.2
%
73
15.8
%
Boeing 737-8 MAX
58
12.0
%
52
11.2
%
Boeing 737-9 MAX
30
6.2
%
29
6.3
%
Boeing 777-200ER
1
0.2
%
1
0.2
%
Boeing 777-300ER
24
4.9
%
24
5.2
%
Boeing 787-9
26
5.4
%
25
5.4
%
Boeing 787-10
9
1.9
%
6
1.3
%
Embraer E190
1
0.2
%
1
0.2
%
Total(2)
485
100.0
%
463
100.0
%
(1) As of September 30, 2024 and December
31, 2023, aircraft count includes two Airbus A330-200 aircraft
classified as freighters.
(2) As of September 30, 2024 and December
31, 2023, our owned fleet count included 23 and 14 aircraft
classified as flight equipment held for sale, respectively, and 14
and 12 aircraft classified as net investments in sales-type leases,
respectively, which are all included in Other assets on the
Consolidated Balance Sheet.
Debt Financing
Activities
We ended the third quarter of 2024 with total debt financing,
net of discounts and issuance costs, of $20.2 billion. As of
September 30, 2024, 81.0% of our total debt financing was at a
fixed rate and 97.3% was unsecured. As of September 30, 2024, our
composite cost of funds was 4.21%. We ended the quarter with total
liquidity of $7.5 billion.
As of the end of the periods presented, our debt portfolio was
comprised of the following components (dollars in millions, except
percentages):
September 30, 2024
December 31, 2023
Unsecured
Senior unsecured securities
$
16,429
$
16,330
Term financings
2,083
1,628
Revolving credit facility
1,286
1,100
Total unsecured debt financing
19,798
19,058
Secured
Term financings
358
101
Export credit financing
194
205
Total secured debt financing
552
306
Total debt financing
20,350
19,364
Less: Debt discounts and issuance
costs
(188
)
(181
)
Debt financing, net of discounts and
issuance costs
$
20,162
$
19,183
Selected interest rates and
ratios:
Composite interest rate(1)
4.21
%
3.77
%
Composite interest rate on fixed-rate
debt(1)
3.72
%
3.26
%
Percentage of total debt at a
fixed-rate
81.05
%
84.71
%
(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 7, 2024 at 4:30 PM Eastern
Time to discuss the Company's financial results for the third
quarter of 2024.
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 November 7, 2024 until 11:59 PM ET on
November 14, 2024. 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, our future aircraft deliveries and
rental revenues, which may be impacted by aircraft and engine
delivery delays and manufacturing flaws, including as a result of
the Boeing labor strike among other factors, our aircraft sales
pipeline and expectations and payment of our future dividends.
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, decreases in our credit
ratings, or changes in interest rates;
- our inability to generate sufficient returns on our aircraft
investments through strategic aircraft acquisitions and profitable
leasing;
- the failure of an aircraft or engine manufacturer to meet its
contractual obligations to us, including or as a result of labor
strikes, aviation supply chain constraints, manufacturing flaws or
technical or other difficulties with aircraft or engines 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,
inflation, 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, 2023, and other Securities and Exchange Commission
(“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, 2024
December 31, 2023
(unaudited)
Assets
Cash and cash equivalents
$
460,785
$
460,870
Restricted cash
4,565
3,622
Flight equipment subject to operating
leases
33,853,006
31,787,241
Less accumulated depreciation
(5,958,105
)
(5,556,033
)
27,894,901
26,231,208
Deposits on flight equipment purchases
1,050,268
1,203,068
Other assets
2,743,310
2,553,484
Total assets
$
32,153,829
$
30,452,252
Liabilities and Shareholders’
Equity
Accrued interest and other payables
$
1,072,033
$
1,164,140
Debt financing, net of discounts and
issuance costs
20,161,860
19,182,657
Security deposits and maintenance reserves
on flight equipment leases
1,757,104
1,519,719
Rentals received in advance
129,303
143,861
Deferred tax liability
1,357,832
1,281,837
Total liabilities
$
24,478,132
$
23,292,214
Shareholders’ Equity
Preferred Stock, $0.01 par value;
50,000,000 shares authorized at each of September 30, 2024 and
December 31, 2023; 10,900,000 (aggregate liquidation preference of
$1,150,000) shares issued and outstanding at September 30, 2024;
10,600,000 (aggregate liquidation preference of $850,000) shares
issued and outstanding at December 31, 2023
$
109
$
106
Class A common stock, $0.01 par value;
500,000,000 shares authorized; 111,376,884 and 111,027,252 shares
issued and outstanding at September 30, 2024 and December 31, 2023,
respectively
1,114
1,110
Class B Non-Voting common stock, $0.01 par
value; authorized 10,000,000 shares; no shares issued or
outstanding
—
—
Paid-in capital
3,598,407
3,287,234
Retained earnings
4,079,173
3,869,813
Accumulated other comprehensive
(loss)/income
(3,106
)
1,775
Total shareholders’ equity
$
7,675,697
$
7,160,038
Total liabilities and shareholders’
equity
$
32,153,829
$
30,452,252
Air Lease Corporation and
Subsidiaries
CONSOLIDATED STATEMENTS OF
INCOME
(In thousands, except share,
per share amounts and percentages)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2024
2023
2024
2023
(unaudited)
Revenues
Rental of flight equipment
$
625,180
$
604,027
$
1,849,014
$
1,833,533
Aircraft sales, trading and other
64,984
55,337
171,748
134,876
Total revenues
690,164
659,364
2,020,762
1,968,409
Expenses
Interest
203,092
161,769
574,691
485,555
Amortization of debt discounts and
issuance costs
14,371
13,695
40,772
40,414
Interest expense
217,463
175,464
615,463
525,969
Depreciation of flight equipment
290,132
267,393
849,374
795,659
Selling, general and administrative
44,418
42,770
137,592
136,216
Stock-based compensation expense
7,919
8,719
25,031
23,330
Total expenses
559,932
494,346
1,627,460
1,481,174
Income before taxes
130,232
165,018
393,302
487,235
Income tax expense
(26,261
)
(32,568
)
(78,519
)
(93,664
)
Net income
$
103,971
$
132,450
$
314,783
$
393,571
Preferred stock dividends
(12,325
)
(10,425
)
(35,258
)
(31,275
)
Net income attributable to common
stockholders
$
91,646
$
122,025
$
279,525
$
362,296
Earnings per share of common
stock:
Basic
$
0.82
$
1.10
$
2.51
$
3.26
Diluted
$
0.82
$
1.10
$
2.50
$
3.25
Weighted-average shares of common stock
outstanding
Basic
111,376,884
111,027,252
111,308,222
110,997,619
Diluted
111,804,113
111,346,799
111,801,757
111,383,257
Other financial data
Pre-tax margin
18.9
%
25.0
%
19.5
%
24.8
%
Pre-tax return on common equity (trailing
twelve months)
9.7
%
10.6
%
9.7
%
10.6
%
Adjusted net income before income
taxes(1)
$
140,197
$
177,007
$
423,847
$
519,704
Adjusted diluted earnings per share before
income taxes(1)
$
1.25
$
1.59
$
3.79
$
4.67
Adjusted pre-tax margin(1)
20.3
%
26.8
%
21.0
%
26.4
%
Adjusted pre-tax return on common equity
(trailing twelve months)(1)
10.1
%
11.5
%
10.1
%
11.5
%
(1)
Adjusted net income before income taxes
(defined as net income attributable to common stockholders
excluding the effects of certain non-cash items, one-time or
non-recurring items that are not expected to continue in the future
and certain other items), adjusted pre-tax margin (defined as
adjusted net income before income taxes divided by total revenues),
adjusted diluted earnings per share before income taxes (defined as
adjusted net income before income taxes divided by the weighted
average diluted common shares outstanding) and adjusted pre-tax
return on common equity (defined as adjusted net income before
income taxes divided by average common shareholders' equity) are
measures of operating performance that are not defined by GAAP and
should not be considered as an alternative to net income
attributable to common stockholders, pre-tax margin, earnings per
share, diluted earnings per share and pre-tax return on common
equity, or any other performance measures derived in accordance
with GAAP. Adjusted net income before income taxes, adjusted
pre-tax margin, adjusted diluted earnings per share before income
taxes and adjusted pre-tax return on common equity are presented as
supplemental disclosure because management believes they provide
useful information on our earnings from ongoing operations.
Management and our board of directors use
adjusted net income before income taxes, adjusted pre-tax margin,
adjusted diluted earnings per share before income taxes and
adjusted pre-tax return on common equity to assess our consolidated
financial and operating performance. Management believes these
measures are helpful in evaluating the operating performance of our
ongoing operations and identifying trends in our performance,
because they remove the effects of certain non-cash items, one-time
or non-recurring items that are not expected to continue in the
future and certain other items from our operating results. Adjusted
net income before income taxes, adjusted pre-tax margin, adjusted
diluted earnings per share before income taxes and adjusted pre-tax
return on common equity, however, should not be considered in
isolation or as a substitute for analysis of our operating results
or cash flows as reported under GAAP. Adjusted net income before
income taxes, adjusted pre-tax margin, adjusted diluted earnings
per share before income taxes and adjusted pre-tax return on common
equity do not reflect our cash expenditures or changes in our cash
requirements for our working capital needs. In addition, our
calculation of adjusted net income before income taxes, adjusted
pre-tax margin, adjusted diluted earnings per share before income
taxes and adjusted pre-tax return on common equity may differ from
the adjusted net income before income taxes, adjusted pre-tax
margin, adjusted diluted earnings per share before income taxes and
adjusted pre-tax return on common equity or analogous calculations
of other companies in our industry, limiting their usefulness as a
comparative measure.
The following table shows the
reconciliation of the numerator for adjusted pre-tax margin (in
thousands, except percentages):
Three Months Ended
September 30,
Nine Months Ended
September 30,
2024
2023
2024
2023
(unaudited)
Reconciliation of the numerator for
adjusted pre-tax margin (net income attributable to common
stockholders to adjusted net income before income taxes):
Net income attributable to common
stockholders
$
91,646
$
122,025
$
279,525
$
362,296
Amortization of debt discounts and
issuance costs
14,371
13,695
40,772
40,414
Stock-based compensation expense
7,919
8,719
25,031
23,330
Income tax expense
26,261
32,568
78,519
93,664
Adjusted net income before income
taxes
$
140,197
$
177,007
$
423,847
$
519,704
Denominator for adjusted pre-tax
margin:
Total revenues
$
690,164
$
659,364
$
2,020,762
$
1,968,409
Adjusted pre-tax margin(a)
20.3
%
26.8
%
21.0
%
26.4
%
(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,
2024
2023
2024
2023
(unaudited)
Reconciliation of the numerator for
adjusted diluted earnings per share net income attributable to
common stockholders to adjusted net income before income
taxes):
Net income attributable to common
stockholders
$
91,646
$
122,025
$
279,525
$
362,296
Amortization of debt discounts and
issuance costs
14,371
13,695
40,772
40,414
Stock-based compensation expense
7,919
8,719
25,031
23,330
Income tax expense
26,261
32,568
78,519
93,664
Adjusted net income before income
taxes
$
140,197
$
177,007
$
423,847
$
519,704
Denominator for adjusted diluted
earnings per share:
Weighted-average diluted common shares
outstanding
111,804,113
111,346,799
111,801,757
111,383,257
Adjusted diluted earnings per share before
income taxes(b)
$
1.25
$
1.59
$
3.79
$
4.67
(b) Adjusted diluted earnings per share
before income taxes is adjusted net income before income taxes
divided by weighted-average diluted common shares outstanding
The following table shows the
reconciliation of pre-tax return on common equity to adjusted
pre-tax return on common equity (in thousands, except
percentages):
Trailing Twelve Months
Ended September 30,
2024
2023
(unaudited)
Reconciliation of the numerator for
adjusted pre-tax return on common equity (net income attributable
to common stockholders to adjusted net income before income
taxes):
Net income attributable to common
stockholders
$
490,151
$
497,182
Amortization of debt discounts and
issuance costs
54,410
53,896
Recovery of Russian fleet
(67,022
)
(30,877
)
Stock-based compensation expense
36,316
29,134
Income tax expense
123,868
128,529
Adjusted net income before income
taxes
$
637,723
$
677,864
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
$
6,111,053
$
5,678,434
Common shareholders' equity as of end of
the period
$
6,525,697
$
6,111,053
Average common shareholders' equity
$
6,318,375
$
5,894,744
Adjusted pre-tax return on common
equity(c)
10.1
%
11.5
%
(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,
2024
2023
(unaudited)
Operating Activities
Net income
$
314,783
$
393,571
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation of flight equipment
849,374
795,659
Stock-based compensation expense
25,031
23,330
Deferred taxes
77,324
91,410
Amortization of prepaid lease costs
77,271
54,962
Amortization of discounts and debt
issuance costs
40,772
40,414
Gain on aircraft sales, trading and other
activity
(149,018
)
(147,174
)
Changes in operating assets and
liabilities:
Other assets
(3,509
)
40,496
Accrued interest and other payables
29,494
(6,380
)
Rentals received in advance
(14,467
)
(3,982
)
Net cash provided by operating
activities
1,247,055
1,282,306
Investing Activities
Acquisition of flight equipment under
operating lease
(2,816,375
)
(2,782,507
)
Payments for deposits on flight equipment
purchases
(461,788
)
(249,231
)
Proceeds from aircraft sales, trading and
other activity
884,045
1,568,420
Acquisition of aircraft furnishings,
equipment and other assets
(284,050
)
(205,368
)
Net cash used in investing activities
(2,678,168
)
(1,668,686
)
Financing Activities
Net proceeds from preferred stock
issuance
295,532
—
Cash dividends paid on Class A common
stock
(70,092
)
(66,587
)
Cash dividends paid on preferred stock
(35,258
)
(31,275
)
Tax withholdings on stock-based
compensation
(9,384
)
(3,354
)
Net change in unsecured revolving
facility
186,000
758,000
Proceeds from debt financings
3,541,706
1,783,973
Payments in reduction of debt
financings
(2,781,604
)
(2,566,518
)
Debt issuance costs
(10,626
)
(10,590
)
Security deposits and maintenance reserve
receipts
328,351
269,171
Security deposits and maintenance reserve
disbursements
(12,654
)
(10,723
)
Net cash provided by financing
activities
1,431,971
122,097
Net increase/(decrease) in cash
858
(264,283
)
Cash, cash equivalents and restricted cash
at beginning of period
464,492
780,017
Cash, cash equivalents and restricted cash
at end of period
$
465,350
$
515,734
Supplemental Disclosure of Cash Flow
Information
Cash paid during the period for interest,
including capitalized interest of $32,859 and $31,708 at September
30, 2024 and 2023, respectively
$
590,697
$
532,922
Cash paid for income taxes
$
22,746
$
6,250
Supplemental Disclosure of Noncash
Activities
Buyer furnished equipment, capitalized
interest and deposits on flight equipment purchases applied to
acquisition of flight equipment and other assets
$
838,170
$
620,280
Flight equipment subject to operating
leases reclassified to flight equipment held for sale
$
1,143,096
$
1,411,564
Flight equipment subject to operating
leases reclassified to investment in sales-type lease
$
74,017
$
33,641
Cash dividends declared on Class A common
stock, not yet paid
$
23,389
$
22,205
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241106007599/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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