Air Lease Corporation Announces Fourth Quarter & Fiscal Year 2021 Results
Air Lease Corporation (AL) reported strong fourth quarter and full-year 2021 results, driven by a recovery in the airline industry. Revenues rose 22.1% in Q4 to $597 million and 3.6% for the year to $2.1 billion. Despite increased revenues, net income declined by 18.6% to $408 million due to lease restructurings and cash basis accounting impacts. The company announced a historic aircraft order with Airbus for 116 planes and planned to repurchase $150 million of common shares. Lease utilization reached 99.8%, reflecting strong demand.
- Q4 revenues increased by 22.1% to $597 million.
- Total revenues for 2021 grew by 3.6% to $2.1 billion.
- Net income for Q4 rose 32.7% to $142 million.
- Lease utilization rate at 99.8%, indicating high demand.
- Largest aircraft order in company's history with Airbus for 116 aircraft.
- Net income decreased by 18.6% for the year to $408 million.
- Diluted EPS dropped 18.7% for the year to $3.57.
“We had a strong fourth quarter and second half of 2021 that benefited from continuing airline industry recovery, as seen in our cash collections, operating metrics, fleet expansion, and record lease placements. We resumed our aircraft sales program and concluded the largest aircraft order in ALC’s history to support the growing demand we are seeing in the marketplace,” said
“We are witnessing strengthening lease rates overall across the spectrum of new and used aircraft, including improvement in widebody lease rates being positively influenced by the exceptional strength in the freight market. Reflecting continued confidence in our future and profitability, our Board of Directors has approved a
Fourth Quarter and Fiscal Year 2021 Results
The following table summarizes our operating results for the three months and year ended
Operating Results
|
Three Months Ended
|
|
Year Ended
|
|||||||||||||||||||||
|
|
2021 |
|
|
2020 |
|
$ change |
|
% change |
|
|
2021 |
|
|
2020 |
|
$ change |
|
% change |
|||||
Revenues |
$ |
597 |
|
$ |
489 |
|
$ |
108 |
|
22.1 |
% |
|
$ |
2,088 |
|
$ |
2,015 |
|
$ |
73 |
|
|
3.6 |
% |
Income before taxes |
|
188 |
|
|
138 |
|
|
50 |
|
36.2 |
% |
|
|
541 |
|
|
647 |
|
|
(106 |
) |
|
(16.4 |
)% |
Net income available to common stockholders |
|
142 |
|
|
107 |
|
|
35 |
|
32.7 |
% |
|
|
408 |
|
|
501 |
|
|
(93 |
) |
|
(18.6 |
)% |
Adjusted net income before income taxes(1) |
|
200 |
|
|
148 |
|
|
52 |
|
35.1 |
% |
|
|
590 |
|
|
692 |
|
|
(102 |
) |
|
(14.7 |
)% |
Diluted earnings per share |
$ |
1.24 |
|
$ |
0.94 |
|
$ |
0.3 |
|
31.9 |
% |
|
$ |
3.57 |
|
$ |
4.39 |
|
$ |
(0.82 |
) |
|
(18.7 |
)% |
Adjusted diluted earnings per share before income taxes(1) |
$ |
1.75 |
|
$ |
1.30 |
|
$ |
0.45 |
|
34.6 |
% |
|
$ |
5.15 |
|
$ |
6.07 |
|
$ |
(0.92 |
) |
|
(15.2 |
)% |
Key Financial Ratios
|
Three Months Ended
|
Year Ended
|
|||||||||
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||
Pre-tax profit margin |
31.5 |
% |
|
28.2 |
% |
|
25.9 |
% |
|
32.1 |
% |
Adjusted pre-tax profit margin(1) |
33.5 |
% |
|
30.3 |
% |
|
28.2 |
% |
|
34.3 |
% |
Pre-tax return on common equity (trailing twelve months) |
8.6 |
% |
|
11.3 |
% |
|
8.6 |
% |
|
11.3 |
% |
Adjusted pre-tax return on common equity (trailing twelve months)(1) |
9.8 |
% |
|
12.4 |
% |
|
9.8 |
% |
|
12.4 |
% |
(1) |
Adjusted net income before income taxes, adjusted diluted earnings per share before income taxes, adjusted pre-tax profit 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 Income included in this earnings release for a discussion of the non-GAAP measures and a reconciliation to their most comparable GAAP financial measures. |
Highlights
- Finalized agreements with Airbus to purchase a total of 116 aircraft, including 59 A321neos, 25 A220-300s, 20 A321XLRs, seven A350Fs and five A330-900s. This represented the largest individual order for new aircraft in our Company's history.
-
In
February 2022 , we agreed to purchase from Boeing 50 737 MAX aircraft, consisting of 32 incremental 737 MAX aircraft and 18 737 MAX aircraft resulting from the conversion of three 787 aircraft. Deliveries of the aircraft are scheduled to commence in 2024 and continue through 2026. -
Issued
$3.7 billion 1.27% and ended the year with total liquidity(1) of$7.9 billion -
Took delivery of 15 aircraft from our order book during the fourth quarter, representing
$1.2 billion December 31, 2021 , we had 382 aircraft in our owned fleet, with a net book value of$22.9 billion -
Placed
99% of our contracted orderbook positions on long-term leases for aircraft delivering through the end of 2023 and have placed58% of our entire orderbook. -
Ended the year with
$30.9 billion $14.8 billion $16.1 billion -
Collection rate(2) for the three and twelve months ended
December 31, 2021 was99.3% and91.4% , respectively. This contributed to the26.3% increase in our operating cash flow for the year endedDecember 31, 2021 . -
Lease utilization rate(3) for the three and twelve months ended
December 31, 2021 was99.8% . -
On
February 15, 2022 , our board of directors authorized a share repurchase program of up to$150.0 million September 30, 2022 . -
On
February 15, 2022 , our board of directors declared a quarterly cash dividend of$0.18 5April 7, 2022 to holders of record of our common stock as ofMarch 18, 2022 .
Financial Overview
Our total revenues for the year ended
| —————————————————————— | ||||
| (1) | We define liquidity as unrestricted cash plus available borrowing capacity under our unsecured committed revolving credit facility. |
|||
| (2) |
Collection rate is defined as the sum of cash collected from lease rentals and maintenance reserves, and includes cash recovered from outstanding receivables from previous periods, as a percentage of the total contracted receivables due for the period. The collection rate is calculated after giving effect to lease deferral arrangements made as of |
|||
| (3) | Lease utilization rate is calculated based on the number of days each aircraft was subject to a lease or letter of intent during the period, weighted by the net book value of the aircraft. |
|||
Flight Equipment Portfolio
Our fleet grew by
During the quarter ended
The following table summarizes the key portfolio metrics of our fleet as of
|
|
|
|
Net book value of flight equipment subject to operating leases |
|
|
|
Weighted-average fleet age(1) |
4.4 years |
|
4.1 years |
Weighted-average remaining lease term(1) |
7.2 years |
|
6.9 years |
|
|
|
|
Owned fleet |
382 |
|
332 |
Managed fleet |
92 |
|
81 |
Aircraft on order(2)(3) |
431 |
|
361 |
Aircraft purchase options(4) |
— |
|
25 |
Total |
905 |
|
799 |
|
|
|
|
Current fleet contracted rentals |
|
|
|
Committed fleet rentals |
|
|
|
Total committed rentals |
|
|
|
(1) |
Weighted-average fleet age and remaining lease term calculated based on net book value of our flight equipment subject to operating lease. |
|
(2) |
The table above reflects the conversion of three 787-9 aircraft to 18 737 MAX aircraft pursuant to a |
|
(3) |
Excluded from the table above are orders for 32 Boeing 737 MAX aircraft pursuant to a |
|
(4) |
As of |
The following table details the region concentration of our flight equipment subject to operating lease:
|
|
|
|
|
Region |
|
% of Net Book Value |
|
% of Net Book Value |
|
|
32.5 % |
|
31.4 % |
|
|
26.0 % |
|
27.1 % |
|
|
12.8 % |
|
13.5 % |
The |
|
10.7 % |
|
11.6 % |
|
|
7.2 % |
|
6.4 % |
|
|
6.8 % |
|
5.3 % |
Pacific, |
|
4.0 % |
|
4.7 % |
Total |
|
100.0 % |
|
100.0 % |
The following table details the composition of our owned fleet by aircraft type:
|
|
|
|
|
||||||
Aircraft type |
|
Number of Aircraft |
|
% of Total |
|
Number of Aircraft |
|
% of Total |
||
Airbus A319-100 |
|
1 |
|
0.3 |
% |
|
1 |
|
0.3 |
% |
Airbus A320-200 |
|
31 |
|
8.1 |
% |
|
31 |
|
9.4 |
% |
Airbus A320-200neo |
|
23 |
|
6.0 |
% |
|
19 |
|
5.7 |
% |
Airbus A321-200 |
|
26 |
|
6.8 |
% |
|
28 |
|
8.4 |
% |
Airbus A321-200neo |
|
69 |
|
18.1 |
% |
|
49 |
|
14.8 |
% |
Airbus A330-200 |
|
13 |
|
3.4 |
% |
|
13 |
|
3.9 |
% |
Airbus A330-300 |
|
8 |
|
2.1 |
% |
|
8 |
|
2.4 |
% |
Airbus A330-900neo |
|
9 |
|
2.4 |
% |
|
8 |
|
2.4 |
% |
Airbus A350-900 |
|
12 |
|
3.1 |
% |
|
11 |
|
3.3 |
% |
Airbus A350-1000 |
|
5 |
|
1.3 |
% |
|
2 |
|
0.6 |
% |
Boeing 737-700 |
|
4 |
|
1.0 |
% |
|
4 |
|
1.2 |
% |
Boeing 737-800 |
|
88 |
|
23.0 |
% |
|
88 |
|
26.5 |
% |
Boeing 737-8 MAX |
|
28 |
|
7.3 |
% |
|
15 |
|
4.5 |
% |
Boeing 737-9 MAX |
|
7 |
|
1.8 |
% |
|
— |
|
— |
% |
Boeing 777-200ER |
|
1 |
|
0.3 |
% |
|
1 |
|
0.3 |
% |
Boeing 777-300ER |
|
24 |
|
6.3 |
% |
|
24 |
|
7.2 |
% |
Boeing 787-9 |
|
26 |
|
6.8 |
% |
|
23 |
|
7.0 |
% |
Boeing 787-10 |
|
6 |
|
1.6 |
% |
|
6 |
|
1.8 |
% |
Embraer E190 |
|
1 |
|
0.3 |
% |
|
1 |
|
0.3 |
% |
Total |
|
382 |
|
100.0 |
% |
|
332 |
|
100.0 |
% |
Debt Financing Activities
We ended the fourth quarter of 2021 with total debt financing, net of discounts and issuance costs, of
As of the end of the periods presented, our debt portfolio was comprised of the following components (dollars in millions):
|
|
|
|
||||
Unsecured |
|
|
|
||||
Senior notes |
$ |
16,892 |
|
|
$ |
15,583 |
|
Term financings |
|
167 |
|
|
|
812 |
|
Revolving credit facility |
|
— |
|
|
|
— |
|
Total unsecured debt financing |
|
17,059 |
|
|
|
16,395 |
|
Secured |
|
|
|
||||
Term financings |
|
127 |
|
|
|
276 |
|
Export credit financing |
|
18 |
|
|
|
25 |
|
Total secured debt financing |
|
145 |
|
|
|
301 |
|
|
|
|
|
||||
Total debt financing |
|
17,204 |
|
|
|
16,696 |
|
Less: Debt discounts and issuance costs |
|
(182 |
) |
|
|
(178 |
) |
Debt financing, net of discounts and issuance costs |
$ |
17,022 |
|
|
$ |
16,518 |
|
Selected interest rates and ratios: |
|
|
|
||||
Composite interest rate(1) |
|
2.79 |
% |
|
|
3.13 |
% |
Composite interest rate on fixed rate debt(1) |
|
2.90 |
% |
|
|
3.26 |
% |
Percentage of total debt at fixed rate |
|
94.80 |
% |
|
|
93.02 |
% |
|
|
|
|
||||
(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,
Investors can participate in the conference call by dialing (855) 308-8321 domestic or (330) 863-3465 international. The passcode for the call is 4160718.
The conference call will also be broadcast live through a link on the Investor Relations page of the
For your convenience, the conference call can be replayed in its entirety beginning at
About
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, the impact of the coronavirus (“COVID-19”) pandemic on us, our lessees and aircraft manufacturers, our anticipated capital expenditures and aircraft sales, our access to the capital markets, 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:
- the extent to which the COVID-19 pandemic and measures taken to contain its spread ultimately impact our business, results of operation and financial condition;
- 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;
- 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, 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 in addition to COVID-19, natural disasters, terrorist attacks, war or armed hostilities between countries or non-state actors; and
-
the factors discussed under “Part I – Item 1A. Risk Factors,” in our Annual Report on Form 10-K for the year ended
December 31, 2021 and otherSEC filings, including futureSEC filings.
The factors noted above and the risks included in our other
CONSOLIDATED BALANCE SHEETS (In thousands, except share and par value amounts) |
|||||||
|
|
|
|
||||
|
(in thousands, except share and par
|
||||||
Assets |
|
||||||
Cash and cash equivalents |
$ |
1,086,500 |
|
|
$ |
1,734,155 |
|
Restricted cash |
|
21,792 |
|
|
|
23,612 |
|
Flight equipment subject to operating leases |
|
27,101,808 |
|
|
|
23,729,742 |
|
Less accumulated depreciation |
|
(4,202,804 |
) |
|
|
(3,349,392 |
) |
|
|
22,899,004 |
|
|
|
20,380,350 |
|
Deposits on flight equipment purchases |
|
1,508,892 |
|
|
|
1,800,119 |
|
Other assets |
|
1,452,534 |
|
|
|
1,276,939 |
|
Total assets |
$ |
26,968,722 |
|
|
$ |
25,215,175 |
|
Liabilities and Shareholders’ Equity |
|
|
|
||||
Accrued interest and other payables |
$ |
611,757 |
|
|
$ |
492,473 |
|
Debt financing, net of discounts and issuance costs |
|
17,022,480 |
|
|
|
16,518,338 |
|
Security deposits and maintenance reserves on flight equipment leases |
|
1,173,831 |
|
|
|
1,072,704 |
|
Rentals received in advance |
|
138,816 |
|
|
|
142,915 |
|
Deferred tax liability |
|
1,013,270 |
|
|
|
916,404 |
|
Total liabilities |
$ |
19,960,154 |
|
|
$ |
19,142,834 |
|
Shareholders’ Equity |
|
|
|
||||
Preferred Stock, |
|
106 |
|
|
|
100 |
|
Class A common stock, |
|
1,140 |
|
|
|
1,139 |
|
Class |
|
— |
|
|
|
— |
|
Paid-in capital |
|
3,399,245 |
|
|
|
2,793,178 |
|
Retained earnings |
|
3,609,885 |
|
|
|
3,277,599 |
|
Accumulated other comprehensive (loss)/income |
|
(1,808 |
) |
|
|
325 |
|
Total shareholders’ equity |
$ |
7,008,568 |
|
|
$ |
6,072,341 |
|
Total liabilities and shareholders’ equity |
$ |
26,968,722 |
|
|
$ |
25,215,175 |
|
CONSOLIDATED STATEMENTS OF INCOME (In thousands, except share and per share amounts and percentages) |
||||||||||||||||
Three Months Ended
|
|
Year Ended
|
||||||||||||||
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||
|
|
(unaudited) |
||||||||||||||
Revenues |
|
|
|
|
|
|
|
|
||||||||
Rental of flight equipment |
|
$ |
563,663 |
|
|
$ |
483,621 |
|
|
$ |
2,003,337 |
|
|
$ |
1,946,620 |
|
Aircraft sales, trading and other |
|
|
33,513 |
|
|
|
5,481 |
|
|
|
85,052 |
|
|
|
68,819 |
|
Total revenues |
|
|
597,176 |
|
|
|
489,102 |
|
|
|
2,088,389 |
|
|
|
2,015,439 |
|
|
|
|
|
|
|
|
|
|
||||||||
Expenses |
|
|
|
|
|
|
|
|
||||||||
Interest |
|
|
116,152 |
|
|
|
113,980 |
|
|
|
462,396 |
|
|
|
431,733 |
|
Amortization of debt discounts and issuance costs |
|
|
13,511 |
|
|
|
11,365 |
|
|
|
50,620 |
|
|
|
43,025 |
|
Interest expense |
|
|
129,663 |
|
|
|
125,345 |
|
|
|
513,016 |
|
|
|
474,758 |
|
|
|
|
|
|
|
|
|
|
||||||||
Depreciation of flight equipment |
|
|
230,819 |
|
|
|
202,722 |
|
|
|
882,562 |
|
|
|
780,691 |
|
Selling, general and administrative |
|
|
40,598 |
|
|
|
20,542 |
|
|
|
125,279 |
|
|
|
95,684 |
|
Stock-based compensation |
|
|
7,716 |
|
|
|
2,672 |
|
|
|
26,516 |
|
|
|
17,628 |
|
Total expenses |
|
|
408,796 |
|
|
|
351,281 |
|
|
|
1,547,373 |
|
|
|
1,368,761 |
|
|
|
|
|
|
|
|
|
|
||||||||
Income before taxes |
|
|
188,380 |
|
|
|
137,821 |
|
|
|
541,016 |
|
|
|
646,678 |
|
Income tax expense |
|
|
(36,599 |
) |
|
|
(26,728 |
) |
|
|
(104,384 |
) |
|
|
(130,414 |
) |
Net income |
|
$ |
151,781 |
|
|
$ |
111,093 |
|
|
$ |
436,632 |
|
|
$ |
516,264 |
|
Preferred stock dividends |
|
|
(9,463 |
) |
|
|
(3,844 |
) |
|
|
(28,473 |
) |
|
|
(15,375 |
) |
Net income available to common stockholders |
|
$ |
142,318 |
|
|
$ |
107,249 |
|
|
|
408,159 |
|
|
|
500,889 |
|
|
|
|
|
|
|
|
|
|
||||||||
Net income per share of common stock: |
|
|
|
|
|
|
|
|
||||||||
Basic |
|
$ |
1.25 |
|
|
$ |
0.94 |
|
|
$ |
3.58 |
|
|
$ |
4.41 |
|
Diluted |
|
$ |
1.24 |
|
|
$ |
0.94 |
|
|
$ |
3.57 |
|
|
$ |
4.39 |
|
Weighted-average shares of common stock outstanding |
|
|
|
|
|
|
|
|
||||||||
Basic |
|
|
113,987,154 |
|
|
|
113,795,564 |
|
|
|
114,050,578 |
|
|
|
113,684,782 |
|
Diluted |
|
|
114,332,498 |
|
|
|
114,105,700 |
|
|
|
114,446,093 |
|
|
|
114,014,021 |
|
|
|
|
|
|
|
|
|
|
||||||||
Other financial data |
|
|
|
|
|
|
|
|
||||||||
Pre-tax profit margin |
|
|
31.5 |
% |
|
|
28.2 |
% |
|
|
25.9 |
% |
|
|
32.1 |
% |
Adjusted net income before income taxes(1) |
|
$ |
200,144 |
|
|
$ |
148,014 |
|
|
$ |
589,679 |
|
|
$ |
691,956 |
|
Adjusted pre-tax profit margin(1) |
|
|
33.5 |
% |
|
|
30.3 |
% |
|
|
28.2 |
% |
|
|
34.3 |
% |
Adjusted diluted earnings per share before income taxes(1) |
|
$ |
1.75 |
|
|
$ |
1.30 |
|
|
$ |
5.15 |
|
|
$ |
6.07 |
|
Pre-tax return on common equity (trailing twelve months) |
|
|
8.6 |
% |
|
|
11.3 |
% |
|
|
8.6 |
% |
|
|
11.3 |
% |
Adjusted pre-tax return on common equity (trailing twelve months)(1) |
|
|
9.8 |
% |
|
|
12.4 |
% |
|
|
9.8 |
% |
|
|
12.4 |
% |
(1) |
Adjusted net income before income taxes (defined as net income available 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 profit 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 available to common stockholders, pre-tax profit 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 profit 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 profit 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 profit 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 profit 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 profit 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 profit 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 calculation for adjusted pre-tax profit margin (in thousands, except percentages): |
|
Three Months Ended
|
|
Year Ended
|
||||||||||||
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||
|
(unaudited) |
||||||||||||||
Reconciliation of the numerator for adjusted pre-tax profit margin (net income available to common stockholders to adjusted net income before income taxes): |
|
||||||||||||||
Net income available to common stockholders |
$ |
142,318 |
|
|
$ |
107,249 |
|
|
$ |
408,159 |
|
|
$ |
500,889 |
|
Amortization of debt discounts and issuance costs |
|
13,511 |
|
|
|
11,365 |
|
|
|
50,620 |
|
|
|
43,025 |
|
Stock-based compensation |
|
7,716 |
|
|
|
2,672 |
|
|
|
26,516 |
|
|
|
17,628 |
|
Provision for income taxes |
|
36,599 |
|
|
|
26,728 |
|
|
|
104,384 |
|
|
|
130,414 |
|
Adjusted net income before income taxes |
$ |
200,144 |
|
|
$ |
148,014 |
|
|
$ |
589,679 |
|
|
$ |
691,956 |
|
|
|
|
|
|
|
|
|
||||||||
Denominator for adjusted pre-tax profit margin: |
|
|
|
|
|
|
|
||||||||
Total revenues |
$ |
597,176 |
|
|
$ |
489,102 |
|
|
$ |
2,088,389 |
|
|
$ |
2,015,439 |
|
Adjusted pre-tax profit margin(a) |
|
33.5 |
% |
|
|
30.3 |
% |
|
|
28.2 |
% |
|
|
34.3 |
% |
|
|
|
|
|
|
|
|
||||||||
(a) |
Adjusted pre-tax profit margin is adjusted net income before income taxes divided by total revenues. |
The following table shows the calculation for adjusted diluted earnings per share before income taxes (in thousands, except share and per share amounts):
|
Three Months Ended
|
|
Year Ended
|
||||||||
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||
|
(unaudited) |
||||||||||
Reconciliation of numerator for adjusted diluted earnings per share (net income available to common stockholders to adjusted net income before income taxes): |
|
||||||||||
Net income available to common stockholders |
$ |
142,318 |
|
$ |
107,249 |
|
$ |
408,159 |
|
$ |
500,889 |
Amortization of debt discounts and issuance costs |
|
13,511 |
|
|
11,365 |
|
|
50,620 |
|
|
43,025 |
Stock-based compensation |
|
7,716 |
|
|
2,672 |
|
|
26,516 |
|
|
17,628 |
Provision for income taxes |
|
36,599 |
|
|
26,728 |
|
|
104,384 |
|
|
130,414 |
Adjusted net income before income taxes |
$ |
200,144 |
|
$ |
148,014 |
|
$ |
589,679 |
|
$ |
691,956 |
|
|
|
|
|
|
|
|
||||
Denominator for adjusted diluted earnings per share: |
|
|
|
|
|
|
|
||||
Weighted-average diluted shares of common stock outstanding |
|
114,332,498 |
|
|
114,105,700 |
|
|
114,446,093 |
|
|
114,014,021 |
Adjusted diluted earnings per share before income taxes(b) |
$ |
1.75 |
|
$ |
1.30 |
|
$ |
5.15 |
|
$ |
6.07 |
|
|
|
|
|
|
|
|
||||
(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 calculation of adjusted pre-tax return on common equity (in thousands, except percentages):
|
Year Ended
|
||||||
|
2021 |
|
2020 |
||||
|
(unaudited) |
||||||
Reconciliation of the numerator for adjusted pre-tax return on common equity (net income available to common stockholders to adjusted net income before income taxes): |
|
||||||
Net income available to common stockholders |
$ |
408,159 |
|
|
$ |
500,889 |
|
Amortization of debt discounts and issuance costs |
|
50,620 |
|
|
|
43,025 |
|
Stock-based compensation |
|
26,516 |
|
|
|
17,628 |
|
Provision for income taxes |
|
104,384 |
|
|
|
130,414 |
|
Adjusted net income before income taxes |
$ |
589,679 |
|
|
$ |
691,956 |
|
|
|
|
|
||||
Denominator for adjusted pre-tax return on common equity: |
|
|
|
||||
Common shareholders' equity as of the beginning of the period |
$ |
5,822,341 |
|
|
$ |
5,373,544 |
|
Common shareholders' equity as of the end of the period |
$ |
6,158,568 |
|
|
$ |
5,822,341 |
|
Average common shareholders' equity |
$ |
5,990,455 |
|
|
$ |
5,597,943 |
|
|
|
|
|
||||
Adjusted pre-tax return on common equity(c) |
|
9.8 |
% |
|
|
12.4 |
% |
|
|
|
|
||||
(c) |
Adjusted pre-tax return on common equity is adjusted net income before income taxes divided by average common shareholders' equity |
CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) |
|||||||
Year Ended
|
|
Year Ended
|
|||||
|
(in thousands) |
||||||
Operating Activities |
|
|
|
||||
Net income |
$ |
436,632 |
|
|
$ |
516,264 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
||||
Depreciation of flight equipment |
|
882,562 |
|
|
|
780,691 |
|
Stock-based compensation |
|
26,516 |
|
|
|
17,628 |
|
Deferred taxes |
|
97,446 |
|
|
|
166,467 |
|
Amortization of prepaid lease costs |
|
46,547 |
|
|
|
43,224 |
|
Amortization of discounts and debt issuance costs |
|
50,620 |
|
|
|
43,025 |
|
Gain on aircraft sales, trading and other activity |
|
(46,109 |
) |
|
|
(34,654 |
) |
Changes in operating assets and liabilities: |
|
|
|
||||
Other assets |
|
(176,391 |
) |
|
|
(415,347 |
) |
Accrued interest and other payables |
|
63,112 |
|
|
|
(22,810 |
) |
Rentals received in advance |
|
(4,099 |
) |
|
|
(4,302 |
) |
Net cash provided by operating activities |
|
1,376,836 |
|
|
|
1,090,186 |
|
Investing Activities |
|
|
|
||||
Acquisition of flight equipment under operating lease |
|
(2,506,175 |
) |
|
|
(1,631,551 |
) |
Payments for deposits on flight equipment purchases |
|
(496,838 |
) |
|
|
(885,679 |
) |
Proceeds from aircraft sales, trading and other activity |
|
137,887 |
|
|
|
151,132 |
|
Acquisition of aircraft furnishings, equipment and other assets |
|
(229,654 |
) |
|
|
(160,993 |
) |
Net cash used in investing activities |
|
(3,094,780 |
) |
|
|
(2,527,091 |
) |
Financing Activities |
|
|
|
||||
Issuance of common stock upon exercise of options and warrants |
|
1,438 |
|
|
|
6,569 |
|
Issuance of preferred stock |
|
591,340 |
|
|
|
— |
|
Cash dividends paid on Class A common stock |
|
(73,001 |
) |
|
|
(68,183 |
) |
Common shares repurchased |
|
(5,780 |
) |
|
|
— |
|
Preferred dividends paid |
|
(28,473 |
) |
|
|
(15,375 |
) |
Tax withholdings on stock-based compensation |
|
(7,441 |
) |
|
|
(8,618 |
) |
Net change in unsecured revolving facilities |
|
— |
|
|
|
(20,000 |
) |
Proceeds from debt financings |
|
3,655,830 |
|
|
|
4,659,762 |
|
Payments in reduction of debt financings |
|
(3,194,482 |
) |
|
|
(1,728,029 |
) |
Debt issuance costs |
|
(10,245 |
) |
|
|
(8,102 |
) |
Security deposits and maintenance reserve receipts |
|
174,521 |
|
|
|
114,596 |
|
Security deposits and maintenance reserve disbursements |
|
(35,238 |
) |
|
|
(76,009 |
) |
Net cash provided by financing activities |
|
1,068,469 |
|
|
|
2,856,611 |
|
Net (decrease)/increase in cash |
|
(649,475 |
) |
|
|
1,419,706 |
|
Cash, cash equivalents and restricted cash at beginning of period |
|
1,757,767 |
|
|
|
338,061 |
|
Cash, cash equivalents and restricted cash at end of period |
$ |
1,108,292 |
|
|
$ |
1,757,767 |
|
Supplemental Disclosure of Cash Flow Information |
|
|
|
||||
Cash paid during the period for interest, including capitalized interest of |
$ |
508,616 |
|
|
$ |
449,662 |
|
Cash paid for income taxes |
$ |
5,734 |
|
|
$ |
29,733 |
|
Supplemental Disclosure of Noncash Activities |
|
|
|
||||
Buyer furnished equipment, capitalized interest, deposits on flight equipment purchases and seller financing applied to acquisition of flight equipment and other assets applied to payments for deposits on flight equipment purchases |
$ |
1,009,554 |
|
|
$ |
782,896 |
|
Cash dividends declared, not yet paid |
|
21,088 |
|
|
|
18,216 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20220217005394/en/
Investors:
Vice President, Investor Relations
Email: investors@airleasecorp.com
Assistant Vice President, Finance
Email: investors@airleasecorp.com
Media:
Senior Manager, Media and Investor Relations
Email: press@airleasecorp.com
Manager, Media and Investor Relations
Email: press@airleasecorp.com
Source:
FAQ
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