Air Lease Corporation (ALC) (NYSE: AL) announces financial
results for the three and six months ended June 30, 2024.
“We continue to feel the effects of ongoing delays from the
aircraft and engine manufacturers. We remain confident and
optimistic about the value of our fleet, as seen through our
aircraft sales initiatives. There is significant value in our
orderbook based on our view of long-term aircraft demand and
fundamental passenger traffic trends,” said John L. Plueger, Chief
Executive Officer and President, and Steven F. Udvar-Házy,
Executive Chairman of the Board.
Second Quarter 2024
Results
The following table summarizes our operating results for the
three and six months ended June 30, 2024 and 2023 (in millions,
except per share amounts and percentages):
Operating Results
Three Months Ended June
30,
Six Months Ended June
30,
2024
2023
$ change
% change
2024
2023
$ change
% change
Revenues
$
667.3
$
672.9
$
(5.6
)
(0.8
)%
$
1,330.6
$
1,309.0
$
21.6
1.7
%
Operating expenses
(539.5
)
(509.0
)
(30.5
)
6.0
%
(1,067.5
)
(986.8
)
(80.7
)
8.2
%
Income before taxes
127.7
164.0
(36.3
)
(22.1
)%
263.1
322.2
(59.1
)
(18.3
)%
Net income attributable to common
stockholders
$
90.4
$
122.0
$
(31.6
)
(25.9
)%
$
187.9
$
240.3
$
(52.4
)
(21.8
)%
Diluted earnings per share
$
0.81
$
1.10
$
(0.29
)
(26.4
)%
$
1.68
$
2.16
$
(0.48
)
(22.2
)%
Adjusted net income before income
taxes(1)
$
137.4
$
175.9
$
(38.5
)
(21.9
)%
$
283.6
$
342.7
$
(59.1
)
(17.2
)%
Adjusted diluted earnings per share before
income taxes(1)
$
1.23
$
1.58
$
(0.35
)
(22.2
)%
$
2.54
$
3.08
$
(0.54
)
(17.5
)%
Key Financial Ratios
Three Months Ended June
30,
Six Months Ended June
30,
2024
2023
2024
2023
Pre-tax margin
19.1%
24.4%
19.8%
24.6%
Adjusted pre-tax margin(1)
20.6%
26.1%
21.3%
26.2%
Pre-tax return on common equity (trailing
twelve months)
10.4%
10.3%
10.4%
10.3%
Adjusted pre-tax return on common equity
(trailing twelve months)(1)
10.8%
11.2%
10.8%
11.2%
——————————————————————
(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 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 second quarter, we took delivery of 13 aircraft from
our orderbook, representing approximately $940 million in aircraft
investments, ending the period with 474 aircraft in our owned fleet
and approximately $31 billion in total assets. Our aircraft
investments for the quarter were lower than the $1.5 billion we
expected due to ongoing manufacturing delays.
- Sold 11 aircraft during the second quarter for approximately
$530 million in sales proceeds. During the 12 months ended June 30,
2024, we sold $1.5 billion in aircraft by net book value for sales
proceeds of $1.7 billion.
- We have approximately $1.5 billion of aircraft in our sales
pipeline1, which includes $609 million in flight equipment held for
sale as of June 30, 2024 and $896 million of aircraft subject to
letters of intent.
- We have placed 100% and 96% of our committed orderbook on
long-term leases for aircraft delivering through the end of 2025
and 2026, respectively, and have placed approximately 64% of our
entire orderbook delivering through 2029.
- We ended the quarter with $30.0 billion in committed minimum
future rental payments consisting of $16.5 billion in contracted
minimum rental payments on the aircraft in our existing fleet and
$13.5 billion in minimum future rental payments related to aircraft
which will deliver during the last six months of 2024 through
2028.
- During the second quarter, we issued $600.0 million in
aggregate principal amount of 5.30% Medium-Term Notes due 2026 and
$600.0 million in aggregate principal amount of 5.20% Medium-Term
Notes due 2031.
- On July 31, 2024, our board of directors declared a quarterly
cash dividend of $0.21 per share on our outstanding Class A common
stock. The next quarterly dividend of $0.21 per share will be paid
on October 9, 2024 to holders of record of our Class A common stock
as of September 6, 2024.
Financial Overview
Our rental revenues for the three months ended June 30, 2024
decreased by 0.4%, to $610 million, as compared to the three months
ended June 30, 2023. Despite the growth of our fleet, our rental
revenues decreased as compared to the prior period in part due to
the sales of older aircraft with higher lease yields, and the
purchases of new aircraft, with lower initial lease yields. In
addition, we also experienced a decline in end of lease revenue of
approximately $13 million, as compared to the prior period
primarily due to fewer aircraft returns during the three months
ended June 30, 2024.
Our aircraft sales, trading and other revenues for the three
months ended June 30, 2024, decreased by 6%, to $58 million, as
compared to the three months ended June 30, 2023 primarily driven
by reduced gains from aircraft sales. We recorded $40 million in
gains from the sale of 11 aircraft for the three months ended June
30, 2024, compared to $45 million in gains from the sale of eight
aircraft for the three months ended June 30, 2023.
Our net income attributable to common stockholders for the three
months ended June 30, 2024, was $90 million, or $0.81 per diluted
share, as compared to $122 million, or $1.10 per diluted share, for
the three months ended June 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, as well as the decline in our revenues, as discussed
above.
Adjusted net income before income taxes during the three months
ended June 30, 2024, was $137 million, or $1.23 per adjusted
diluted share, as compared to $176 million, or $1.58 per adjusted
diluted share, for the three months ended June 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, as well as the decline
in our revenues as discussed above.
______________________
1 Aircraft in our sales pipeline is as of
June 30, 2024, adjusted for letters of intent signed through August
1, 2024.
Flight Equipment
Portfolio
As of June 30, 2024, the net book value of our fleet increased
to $26.8 billion, compared to $26.2 billion as of December 31,
2023. As of June 30, 2024, we owned 474 aircraft in our aircraft
portfolio, comprised of 354 narrowbody aircraft and 120 widebody
aircraft, and we managed 67 aircraft. The weighted average fleet
age and weighted average remaining lease term of flight equipment
subject to operating lease as of June 30, 2024 was 4.7 years and
6.9 years, respectively. We had a globally diversified customer
base comprised of 118 airlines in 59 countries as of June 30,
2024.
The following table summarizes the key portfolio metrics of our
fleet as of June 30, 2024 and December 31, 2023:
June 30, 2024
December 31, 2023
Net book value of flight equipment subject
to operating lease
$
26.8 billion
$
26.2 billion
Weighted-average fleet age(1)
4.7 years
4.6 years
Weighted-average remaining lease
term(1)
6.9 years
7.0 years
Owned fleet(2)
474
463
Managed fleet
67
78
Aircraft on order
307
334
Total
848
875
Current fleet contracted rentals
$
16.5 billion
$
16.4 billion
Committed fleet rentals
$
13.5 billion
$
14.6 billion
Total committed rentals
$
30.0 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 June 30, 2024 and December 31,
2023, our owned fleet count included 18 and 14 aircraft classified
as flight equipment held for sale, respectively, and 13 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:
June 30, 2024
December 31, 2023
Region
% of Net Book Value
% of Net Book Value
Europe
40.6
%
37.7
%
Asia Pacific
36.5
%
39.8
%
Central America, South America, and
Mexico
9.5
%
9.0
%
The Middle East and Africa
7.6
%
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:
June 30, 2024
December 31, 2023
Aircraft type
Number of
Aircraft
% of Total
Number of
Aircraft
% of Total
Airbus A220-100
4
0.8
%
2
0.4
%
Airbus A220-300
15
3.2
%
13
2.8
%
Airbus A319-100
1
0.2
%
1
0.2
%
Airbus A320-200
27
5.7
%
28
6.0
%
Airbus A320-200neo
23
4.9
%
25
5.4
%
Airbus A321-200
22
4.6
%
23
5.0
%
Airbus A321-200neo
104
21.9
%
95
20.6
%
Airbus A330-200(1)
13
2.7
%
13
2.8
%
Airbus A330-300
5
1.1
%
5
1.1
%
Airbus A330-900neo
23
4.9
%
23
5.0
%
Airbus A350-900
15
3.2
%
14
3.0
%
Airbus A350-1000
8
1.7
%
7
1.5
%
Boeing 737-700
3
0.6
%
3
0.6
%
Boeing 737-800
67
14.1
%
73
15.8
%
Boeing 737-8 MAX
57
12.0
%
52
11.2
%
Boeing 737-9 MAX
30
6.3
%
29
6.3
%
Boeing 777-200ER
1
0.2
%
1
0.2
%
Boeing 777-300ER
24
5.1
%
24
5.2
%
Boeing 787-9
25
5.3
%
25
5.4
%
Boeing 787-10
6
1.3
%
6
1.3
%
Embraer E190
1
0.2
%
1
0.2
%
Total(2)
474
100.0
%
463
100.0
%
(1) As of June 30, 2024 and December 31,
2023, aircraft count includes two Airbus A330-200 aircraft
classified as freighters.
(2) As of June 30, 2024 and December 31,
2023, our owned fleet count included 18 and 14 aircraft classified
as flight equipment held for sale, respectively, and 13 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 second quarter of 2024 with total debt financing,
net of discounts and issuance costs, of $19.7 billion. As of June
30, 2024, 88.3% of our total debt financing was at a fixed rate and
98.5% was unsecured. As of June 30, 2024, our composite cost of
funds was 3.99%. We ended the quarter with total liquidity of $8.2
billion.
As of the end of the periods presented, our debt portfolio was
comprised of the following components (dollars in millions, except
percentages):
June 30, 2024
December 31, 2023
Unsecured
Senior unsecured securities
$
17,493
$
16,330
Term financings
2,004
1,628
Revolving credit facility
90
1,100
Total unsecured debt financing
19,587
19,058
Secured
Export credit financing
197
205
Term financings
94
101
Total secured debt financing
291
306
Total debt financing
19,878
19,364
Less: Debt discounts and issuance
costs
(199
)
(181
)
Debt financing, net of discounts and
issuance costs
$
19,679
$
19,183
Selected interest rates and
ratios:
Composite interest rate(1)(2)
3.99
%
3.77
%
Composite interest rate on fixed-rate
debt(1)
3.63
%
3.26
%
Percentage of total debt at a
fixed-rate
88.34
%
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.
(2) Our composite interest rate as of
March 31, 2024 was 4.03%.
Conference Call
In connection with this earnings release, Air Lease Corporation
will host a conference call on August 1, 2024 at 4:30 PM Eastern
Time to discuss the Company's financial results for the second
quarter of 2024.
Investors can participate in the conference call by dialing 1
(888) 596-4144 domestic or 1 (646) 968-2525 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 1, 2024 until 11:59 PM ET on August 8,
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, the state of the airline industry,
our access to the capital and debt markets, the impact of aircraft
and engine delivery delays and manufacturing flaws, our aircraft
sales pipeline and expectations, 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, decreases in our credit
ratings, 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
contractual obligations to us, including or as a result of
manufacturing flaws and 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)
June 30, 2024
December 31, 2023
(unaudited)
Assets
Cash and cash equivalents
$
454,123
$
460,870
Restricted cash
1,533
3,622
Flight equipment subject to operating
leases
32,643,461
31,787,241
Less accumulated depreciation
(5,854,095
)
(5,556,033
)
26,789,366
26,231,208
Deposits on flight equipment purchases
1,131,899
1,203,068
Other assets
2,641,456
2,553,484
Total assets
$
31,018,377
$
30,452,252
Liabilities and Shareholders’
Equity
Accrued interest and other payables
$
916,998
$
1,164,140
Debt financing, net of discounts and
issuance costs
19,679,063
19,182,657
Security deposits and maintenance reserves
on flight equipment leases
1,654,107
1,519,719
Rentals received in advance
128,992
143,861
Deferred tax liability
1,331,971
1,281,837
Total liabilities
$
23,711,131
$
23,292,214
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,
2024 and December 31, 2023, respectively
$
106
$
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 June 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
3,294,959
3,287,234
Retained earnings
4,010,916
3,869,813
Accumulated other comprehensive income
151
1,775
Total shareholders’ equity
$
7,307,246
$
7,160,038
Total liabilities and shareholders’
equity
$
31,018,377
$
30,452,252
Air Lease Corporation and
Subsidiaries
CONSOLIDATED STATEMENTS OF
INCOME
(In thousands, except share,
per share amounts and percentages)
Three Months Ended June
30,
Six Months Ended June
30,
2024
2023
2024
2023
(unaudited)
Revenues
Rental of flight equipment
$
609,505
$
611,733
$
1,223,834
$
1,229,506
Aircraft sales, trading and other
57,783
61,171
106,764
79,540
Total revenues
667,288
672,904
1,330,598
1,309,046
Expenses
Interest
190,004
172,174
371,599
323,786
Amortization of debt discounts and
issuance costs
13,292
13,646
26,401
26,719
Interest expense
203,296
185,820
398,000
350,505
Depreciation of flight equipment
281,982
268,586
559,242
528,266
Selling, general and administrative
45,432
45,832
93,175
93,447
Stock-based compensation expense
8,837
8,715
17,112
14,611
Total expenses
539,547
508,953
1,067,529
986,829
Income before taxes
127,741
163,951
263,069
322,217
Income tax expense
(24,795
)
(31,550
)
(52,257
)
(61,096
)
Net income
$
102,946
$
132,401
$
210,812
$
261,121
Preferred stock dividends
(12,508
)
(10,425
)
(22,933
)
(20,850
)
Net income attributable to common
stockholders
$
90,438
$
121,976
$
187,879
$
240,271
Earnings per share of common
stock:
Basic
$
0.81
$
1.10
$
1.69
$
2.16
Diluted
$
0.81
$
1.10
$
1.68
$
2.16
Weighted-average shares of common stock
outstanding
Basic
111,372,434
111,021,133
111,273,514
110,982,557
Diluted
111,740,821
111,239,004
111,712,719
111,307,049
Other financial data
Pre-tax margin
19.1
%
24.4
%
19.8
%
24.6
%
Pre-tax return on common equity (trailing
twelve months)
10.4
%
10.3
%
10.4
%
10.3
%
Adjusted net income before income
taxes(1)
$
137,362
$
175,887
$
283,649
$
342,697
Adjusted diluted earnings per share before
income taxes(1)
$
1.23
$
1.58
$
2.54
$
3.08
Adjusted pre-tax margin(1)
20.6
%
26.1
%
21.3
%
26.2
%
Adjusted pre-tax return on common equity
(trailing twelve months)(1)
10.8
%
11.2
%
10.8
%
11.2
%
(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 June
30,
Six Months Ended June
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
$
90,438
$
121,976
$
187,879
$
240,271
Amortization of debt discounts and
issuance costs
13,292
13,646
26,401
26,719
Stock-based compensation expense
8,837
8,715
17,112
14,611
Income tax expense
24,795
31,550
52,257
61,096
Adjusted net income before income
taxes
$
137,362
$
175,887
$
283,649
$
342,697
Denominator for adjusted pre-tax
margin:
Total revenues
$
667,288
$
672,904
$
1,330,598
$
1,309,046
Adjusted pre-tax margin(a)
20.6
%
26.1
%
21.3
%
26.2
%
(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 June
30,
Six Months Ended
June 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
$
90,438
$
121,976
$
187,879
$
240,271
Amortization of debt discounts and
issuance costs
13,292
13,646
26,401
26,719
Stock-based compensation expense
8,837
8,715
17,112
14,611
Income tax expense
24,795
31,550
52,257
61,096
Adjusted net income before income
taxes
$
137,362
$
175,887
$
283,649
$
342,697
Denominator for adjusted diluted
earnings per share:
Weighted-average diluted common shares
outstanding
111,740,821
111,239,004
111,712,719
111,307,049
Adjusted diluted earnings per share before
income taxes(b)
$
1.23
$
1.58
$
2.54
$
3.08
(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 June 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
$
520,530
$
475,113
Amortization of debt discounts and
issuance costs
53,734
53,363
Recovery of Russian fleet
(67,022
)
(30,877
)
Stock-based compensation expense
37,116
26,179
Income tax expense
130,175
123,419
Adjusted net income before income
taxes
$
674,533
$
647,197
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
$
6,002,653
$
5,589,634
Common shareholders' equity as of end of
the period
$
6,457,246
$
6,002,653
Average common shareholders' equity
$
6,229,950
$
5,796,144
Adjusted pre-tax return on common
equity(c)
10.8
%
11.2
%
(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,
2024
2023
(unaudited)
Operating Activities
Net income
$
210,812
$
261,121
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation of flight equipment
559,242
528,266
Stock-based compensation expense
17,112
14,611
Deferred taxes
50,575
59,114
Amortization of prepaid lease costs
50,579
36,064
Amortization of discounts and debt
issuance costs
26,401
26,719
Gain on aircraft sales, trading and other
activity
(97,978
)
(86,838
)
Changes in operating assets and
liabilities:
Other assets
(25,377
)
7,028
Accrued interest and other payables
8,555
38,986
Rentals received in advance
(14,778
)
(4,172
)
Net cash provided by operating
activities
785,143
880,899
Investing Activities
Acquisition of flight equipment under
operating lease
(1,466,104
)
(2,416,609
)
Payments for deposits on flight equipment
purchases
(179,213
)
(134,825
)
Proceeds from aircraft sales, trading and
other activity
430,476
1,261,476
Acquisition of aircraft furnishings,
equipment and other assets
(191,952
)
(125,541
)
Net cash used in investing activities
(1,406,793
)
(1,415,499
)
Financing Activities
Cash dividends paid on Class A common
stock
(46,703
)
(44,382
)
Cash dividends paid on preferred stock
(22,933
)
(20,850
)
Tax withholdings on stock-based
compensation
(9,384
)
(3,354
)
Net change in unsecured revolving
facility
(1,010,000
)
(20,000
)
Proceeds from debt financings
3,024,408
1,538,087
Payments in reduction of debt
financings
(1,503,849
)
(1,287,880
)
Debt issuance costs
(7,534
)
(9,149
)
Security deposits and maintenance reserve
receipts
198,377
188,471
Security deposits and maintenance reserve
disbursements
(9,568
)
(5,925
)
Net cash provided by financing
activities
612,814
335,018
Net decrease in cash
(8,836
)
(199,582
)
Cash, cash equivalents and restricted cash
at beginning of period
464,492
780,017
Cash, cash equivalents and restricted cash
at end of period
$
455,656
$
580,435
Supplemental Disclosure of Cash Flow
Information
Cash paid during the period for interest,
including capitalized interest of $21,709 and $21,336 at June 30,
2024 and 2023, respectively
$
390,120
$
325,365
Cash paid for income taxes
$
21,313
$
5,573
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
$
351,720
$
552,058
Flight equipment subject to operating
leases reclassified to flight equipment held for sale
$
744,559
$
1,339,087
Flight equipment subject to operating
leases reclassified to investment in sales-type lease
$
33,629
$
—
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/20240731309412/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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