Air Lease Corporation Announces Fourth Quarter & Fiscal Year 2022 Results

Rhea-AI Summary

Air Lease Corporation (AL) reported its financial results for Q4 and the fiscal year ending December 31, 2022. Revenues increased by 11% to $2.3 billion compared to 2021, driven by fleet growth and reduced COVID-19 related lease losses. However, the net loss attributable to common stockholders was $138.7 million, translating to $1.24 per diluted share due to a significant $771.5 million write-off of the Russian fleet. The company ended the year with $31.4 billion in committed future rental payments, while total liquidity stood at $6.9 billion. A quarterly dividend of $0.20 per share was declared, reflecting confidence in future operations.

Positive

• Q4 revenues increased 0.7% to $601.6 million.
• Total revenues for FY 2022 grew by 11% to $2.3 billion.
• Adjusted net income before income taxes rose by 11.9% to $659.9 million.
• Total liquidity ended at $6.9 billion.
• Declared a quarterly dividend of $0.20 per share.

Negative

• Net loss attributable to common stockholders was $138.7 million.
• Write-off of the Russian fleet totaled approximately $771.5 million.
• Diluted earnings per share decreased by 134.7% to $1.24.

LOS ANGELES--(BUSINESS WIRE)-- Air Lease Corporation (ALC) (NYSE: AL) announces financial results for the three months and year ended December 31, 2022.

“Aircraft demand is bolstering lease rates, accelerating our orderbook placements, and intensifying lease extension requests. Airline industry recovery with constrained balance sheets, drive for environmental sustainability, and lack of available delivery slots from the OEMs continues to favor ALC’s business model of providing new aircraft from our orderbook,” said John L. Plueger, Chief Executive Officer and President.

“High quality commercial aircraft are increasingly in limited supply given strong airline need for capacity – exacerbated by ongoing delivery delays at both Boeing and Airbus, which we do not see abating. We expect to see continued growth and strength in global air traffic and airline yields in 2023, offering a counterbalance to global macroeconomic cross-currents,” said Steven F. Udvar-Házy, Executive Chairman of the Board.

Fourth Quarter and Fiscal Year 2022 Results

The following table summarizes our operating results for the three months and year ended December 31, 2022 and 2021 (in millions, except per share amounts and percentages):

Operating Results

		Three Months Ended December 31,															Year Ended December 31,
		2022				2021				$ change				% change			2022				2021				$ change				% change
Revenues		$	601.6			$	597.2			$	4.4			0.7	%		$	2,317.3			$	2,088.4			$	228.9			11.0	%
Operating expenses			(452.3	)			(408.8	)			(43.5	)		10.6	%			(1,684.6	)			(1,547.4	)			(137.2	)		8.9	%
Recovery/(write-off) of Russian fleet			30.9				—				30.9			100.0	%			(771.5	)			—				(771.5	)		100.0	%
Income/(loss) before taxes			180.2				188.4				(8.2	)		(4.4	) %			(138.8	)			541.0				(679.8	)		(125.7	) %
Net income/(loss) attributable to common stockholders		$	134.9			$	142.3			$	(7.4	)		(5.2	) %		$	(138.7	)		$	408.2			$	(546.9	)		(134.0	) %
Diluted earnings/(loss) per share		$	1.21			$	1.24			$	(0.03	)		(2.4	) %		$	(1.24	)		$	3.57			$	(4.81	)		(134.7	) %
Adjusted net income before income taxes(1)		$	158.2			$	200.1			$	(41.9	)		(20.9	) %		$	659.9			$	589.7			$	70.2			11.9	%
Adjusted diluted earnings per share before income taxes(1)		$	1.42			$	1.75			$	(0.33	)		(18.9	) %		$	5.89			$	5.15			$	0.74			14.4	%

Key Financial Ratios

		Three Months Ended December 31,				Year Ended December 31,
		2022		2021		2022		2021
Pre-tax margin		29.9%		31.5%		(6.0)%		25.9%
Adjusted pre-tax margin(1)		26.3%		33.5%		28.5%		28.2%
Pre-tax return on common equity (trailing twelve months)						(3.0)%		8.6%
Adjusted pre-tax return on common equity (trailing twelve months)(1)						11.0%		9.8%

(1)

Adjusted net income before income taxes, adjusted diluted earnings per share before income taxes, adjusted pre-tax margin and adjusted pre-tax return on common equity have been adjusted to exclude the effects of certain non-cash items, one-time or non-recurring items, such as write-offs of our Russian fleet, that are not expected to continue in the future and certain other items. See note 1 under the Consolidated Statements of Operations included in this earnings release for a discussion of the non-GAAP measures and a reconciliation to their most comparable GAAP financial measures.

Highlights

• As of December 31, 2022, we had 417 aircraft in our owned fleet, with a net book value of $24.5 billion, a weighted average age of 4.5 years and a weighted average lease term remaining of 7.1 years. During the fourth quarter, we took delivery of 16 aircraft from our order book, representing approximately $1.0 billion in aircraft investments, ending the period with over $28 billion in total assets.
• Sold five aircraft during the quarter for approximately $211 million in proceeds.
• In October 2022, we recovered one Boeing 737-8 MAX aircraft previously detained in Russia, resulting in an approximately $31 million offset to the write-off line item in our income statement.
• Placed 90% of our contracted orderbook positions on long-term leases for aircraft delivering through the end of 2024 and have placed 60% of our entire orderbook.
• Ended the year with $31.4 billion in committed minimum future rental payments consisting of $15.6 billion in contracted minimum rental payments on the aircraft in our existing fleet and $15.8 billion in minimum future rental payments related to aircraft on order.
• Issued $2.2 billion of senior unsecured Medium-Term Notes in 2022 with a weighted average interest rate of 3.59% and ended the year with total liquidity of $6.9 billion.
• On February 14, 2023, our board of directors declared a quarterly cash dividend of $0.20 per share on our outstanding common stock. The next quarterly dividend of $0.20 per share will be paid on April 12, 2023 to holders of record of our common stock as of March 16, 2023.

Financial Overview

Our total revenues for the year ended December 31, 2022 increased by 11% to $2.3 billion as compared to the year ended December 31, 2021. The increase in total revenues was primarily driven by the continued growth in our fleet and significantly lower COVID-19 related lease restructuring and cash basis losses.

Our net loss attributable to common stockholders for the year ended December 31, 2022 was $138.7 million, or net loss of $1.24 per diluted share compared to net income of $408.2 million, or $3.57 per diluted share, for the year ended December 31, 2021. Despite the growth of our fleet, the decrease was due to the net impact of the write-off of our Russian fleet, which totaled approximately $771.5 million as of December 31, 2022.

Our adjusted net income before income taxes during the year ended December 31, 2022 was $659.9 million or $5.89 per adjusted diluted share as compared to $589.7 million or $5.15 per adjusted diluted share for the year ended December 31, 2021. The increase for the year ended December 31, 2022 as compared to 2021, was primarily due to the continued growth of our fleet and the increase in revenues as discussed above.

Flight Equipment Portfolio

As of December 31, 2022 the net book value of our fleet increased to $24.5 billion, compared to $22.9 billion as of December 31, 2021. As of December 31, 2022, we owned 417 aircraft in our aircraft portfolio, comprised of 306 narrowbody aircraft and 111 widebody aircraft, and we managed 85 aircraft. The weighted average fleet age and weighted average remaining lease term of our fleet as of December 31, 2022 was 4.5 years and 7.1 years, respectively. We have a globally diversified customer base of 117 airlines in 62 countries as of December 31, 2022.

The following table summarizes the key portfolio metrics of our fleet as of December 31, 2022 and December 31, 2021:

		December 31, 2022			December 31, 2021
Net book value of flight equipment subject to operating lease		$	24.5 billion		$	22.9 billion
Weighted-average fleet age(1)		4.5 years			4.4 years
Weighted-average remaining lease term(1)		7.1 years			7.2 years
Owned fleet			417			382
Managed fleet			85			92
Aircraft on order			398			431
Total			900			905
Current fleet contracted rentals		$	15.6 billion		$	14.8 billion
Committed fleet rentals		$	15.8 billion		$	16.1 billion
Total committed rentals		$	31.4 billion		$	30.9 billion
(1) Weighted-average fleet age and remaining lease term calculated based on net book value of our flight equipment subject to operating lease.

The following table details the regional concentration of our flight equipment subject to operating leases:

		December 31, 2022		December 31, 2021
Region		% of Net Book Value		% of Net Book Value
Europe		32.5 %		32.5 %
Asia (excluding China)		29.1 %		26.0 %
China		11.4 %		12.8 %
The Middle East and Africa		9.3 %		10.7 %
Central America, South America, and Mexico		7.8 %		6.8 %
U.S. and Canada		6.3 %		7.2 %
Pacific, Australia, and New Zealand		3.6 %		4.0 %
Total		100.0 %		100.0 %

The following table details the composition of our flight equipment subject to operating leases by aircraft type:

		December 31, 2022				December 31, 2021
Aircraft type		Number of Aircraft		% of Total		Number of Aircraft		% of Total
Airbus A220-300		4		1.0 %		—		— %
Airbus A319-100		1		0.2 %		1		0.3 %
Airbus A320-200		28		6.7 %		31		8.1 %
Airbus A320-200neo		23		5.5 %		23		6.0 %
Airbus A321-200		23		5.5 %		26		6.8 %
Airbus A321-200neo		78		18.7 %		69		18.1 %
Airbus A330-200		13		3.1 %		13		3.4 %
Airbus A330-300		5		1.2 %		8		2.1 %
Airbus A330-900neo		16		3.8 %		9		2.4 %
Airbus A350-900		13		3.1 %		12		3.1 %
Airbus A350-1000		6		1.4 %		5		1.3 %
Boeing 737-700		4		1.0 %		4		1.0 %
Boeing 737-800		82		19.7 %		88		23.0 %
Boeing 737-8 MAX		47		11.3 %		28		7.3 %
Boeing 737-9 MAX		15		3.7 %		7		1.8 %
Boeing 777-200ER		1		0.2 %		1		0.3 %
Boeing 777-300ER		24		5.8 %		24		6.3 %
Boeing 787-9		27		6.5 %		26		6.8 %
Boeing 787-10		6		1.4 %		6		1.6 %
Embraer E190		1		0.2 %		1		0.3 %
Total (1)		417		100.0 %		382		100.0 %
(1) As of December 31, 2022, we had four aircraft classified as flight equipment held for sale. As of December 31, 2021, we did not have any flight equipment classified as held for sale.

Debt Financing Activities

We ended the fourth quarter of 2022 with total debt financing, net of discounts and issuance costs, of $18.6 billion. As of December 31, 2022, 91.3% of our total debt financing was at a fixed rate and 99.3% was unsecured. As of December 31, 2022, our composite cost of funds was 3.07%. We ended the fourth quarter with total liquidity of $6.9 billion.

As of the end of the periods presented, our debt portfolio was comprised of the following components (dollars in millions):

		December 31, 2022				December 31, 2021
Unsecured
Senior notes		$	17,095			$	16,892
Revolving credit facility			1,020				—
Term financings			583				167
Total unsecured debt financing			18,698				17,059
Secured
Term financings			114				127
Export credit financing			11				18
Total secured debt financing			125				145
Total debt financing			18,823				17,204
Less: Debt discounts and issuance costs			(182	)			(182	)
Debt financing, net of discounts and issuance costs		$	18,641			$	17,022
Selected interest rates and ratios:
Composite interest rate(1)			3.07	%			2.79	%
Composite interest rate on fixed-rate debt(1)			2.98	%			2.90	%
Percentage of total debt at a fixed-rate			91.3	%			94.8	%
(1) This rate does not include the effect of upfront fees, facility fees, undrawn fees or amortization of debt discounts and issuance costs.

Conference Call

In connection with this earnings release, Air Lease Corporation will host a conference call on February 16, 2023 at 4:30 PM Eastern Time to discuss the Company's financial results for the fourth quarter and year end 2022.

Investors can participate in the conference call by dialing 1 (888) 660-6652 domestic or 1 (646) 960-0554 international. The passcode for the call is 5952437.

The conference call will also be broadcast live through a link on the Investors page of the Air Lease Corporation website at www.airleasecorp.com. Please visit the website at least 15 minutes prior to the call to register, download and install any necessary audio software. A replay of the broadcast will be available on the Investors page of the Air Lease Corporation website.

For your convenience, the conference call can be replayed in its entirety beginning at 7:30 PM ET on February 16, 2023 until 7:30 PM ET on February 23, 2023. If you wish to listen to the replay of this conference call, please dial 1 (800) 770-2030 domestic or 1 (647) 362-9199 international and enter passcode 5952437.

About Air Lease Corporation (NYSE: AL)

Air Lease Corporation is a leading global aircraft leasing company based in Los Angeles, California that has airline customers throughout the world. Air Lease Corporation and its team of dedicated and experienced professionals are principally engaged in purchasing new commercial aircraft and leasing them to its airline customers worldwide through customized aircraft leasing and financing solutions. Air Lease Corporation routinely posts information that may be important to investors in the “Investors” section of its website at www.airleasecorp.com. Investors and potential investors are encouraged to consult Air Lease Corporation’s website regularly for important information. The information contained on, or that may be accessed through, Air Lease Corporation’s website is not incorporated by reference into, and is not a part of, this press release.

Forward-Looking Statements

This press release contains statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Those statements appear in a number of places in this press release and include statements regarding, among other matters, the state of the airline industry, our access to the capital markets, the impact of Russia’s invasion of Ukraine and the impact of sanctions imposed on Russia, the impact of lease deferrals and other accommodations, aircraft delivery delays and other factors affecting our financial condition or results of operations. Words such as “can,” “could,” “may,” “predicts,” “potential,” “will,” “projects,” “continuing,” “ongoing,” “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates” and “should,” and variations of these words and similar expressions, are used in many cases to identify these forward-looking statements. Any such forward-looking statements are not guarantees of future performance and involve risks, uncertainties, and other factors that may cause our actual results, performance or achievements, or industry results to vary materially from our future results, performance or achievements, or those of our industry, expressed or implied in such forward-looking statements. Such factors include, among others:

• our inability to obtain additional capital on favorable terms, or at all, to acquire aircraft, service our debt obligations and refinance maturing debt obligations;
• increases in our cost of borrowing or changes in interest rates;
• our inability to generate sufficient returns on our aircraft investments through strategic acquisition and profitable leasing;
• the failure of an aircraft or engine manufacturer to meet its delivery obligations to us, including or as a result of technical or other difficulties with aircraft before or after delivery;
• our ability to pursue insurance claims to recover losses related to aircraft detained in Russia;
• the extent to which the COVID-19 pandemic impacts our business;
• obsolescence of, or changes in overall demand for, our aircraft;
• changes in the value of, and lease rates for, our aircraft, including as a result of aircraft oversupply, manufacturer production levels, our lessees’ failure to maintain our aircraft, rising inflation, appreciation of the U.S. Dollar, and other factors outside of our control;
• impaired financial condition and liquidity of our lessees, including due to lessee defaults and reorganizations, bankruptcies or similar proceedings;
• increased competition from other aircraft lessors;
• the failure by our lessees to adequately insure our aircraft or fulfill their contractual indemnity obligations to us;
• increased tariffs and other restrictions on trade;
• changes in the regulatory environment, including changes in tax laws and environmental regulations;
• other events affecting our business or the business of our lessees and aircraft manufacturers or their suppliers that are beyond our or their control, such as the threat or realization of epidemic diseases, natural disasters, terrorist attacks, war or armed hostilities between countries or non-state actors; and
• any additional factors discussed under “Part I — Item 1A. Risk Factors,” in our Annual Report on Form 10-K for the year ended December 31, 2022, “Part II — Item 1A. Risk Factors,” and other SEC filings, including future SEC filings.

All forward-looking statements are necessarily only estimates of future results, and there can be no assurance that actual results will not differ materially from expectations. You are therefore cautioned not to place undue reliance on such statements. Any forward-looking statement speaks only as of the date on which it is made, and we do not intend and undertake no obligation to update any forward-looking information to reflect actual results or events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events.

Air Lease Corporation and Subsidiaries
CONSOLIDATED BALANCE SHEETS
(In thousands, except share and par value amounts)
		December 31, 2022				December 31, 2021
Assets
Cash and cash equivalents		$	766,418			$	1,086,500
Restricted cash			13,599				21,792
Flight equipment subject to operating leases			29,466,888				27,101,808
Less accumulated depreciation			(4,928,503	)			(4,202,804	)
			24,538,385				22,899,004
Deposits on flight equipment purchases			1,344,973				1,508,892
Other assets			1,733,330				1,452,534
Total assets		$	28,396,705			$	26,968,722
Liabilities and Shareholders’ Equity
Accrued interest and other payables		$	696,899			$	611,757
Debt financing, net of discounts and issuance costs			18,641,063				17,022,480
Security deposits and maintenance reserves on flight equipment leases			1,293,929				1,173,831
Rentals received in advance			147,654				138,816
Deferred tax liability			970,797				1,013,270
Total liabilities		$	21,750,342			$	19,960,154
Shareholders’ Equity
Preferred Stock, $0.01 par value; 50,000,000 shares authorized; 10,600,000 (aggregate liquidation preference of $850,000) shares issued and outstanding at December 31, 2022 and December 31, 2021, respectively		$	106			$	106
Class A common stock, $0.01 par value; 500,000,000 shares authorized; 110,892,097 and 113,987,154 shares issued and outstanding at December 31, 2022 and December 31, 2021, respectively			1,109				1,140
Class B Non-Voting common stock, $0.01 par value; authorized 10,000,000 shares; no shares issued or outstanding			—				—
Paid-in capital			3,255,973				3,399,245
Retained earnings			3,386,820				3,609,885
Accumulated other comprehensive income/(loss)			2,355				(1,808	)
Total shareholders’ equity		$	6,646,363			$	7,008,568
Total liabilities and shareholders’ equity		$	28,396,705			$	26,968,722

Air Lease Corporation and Subsidiaries
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share, per share amounts and percentages)
		Three Months Ended December 31,						Year Ended December 31,
		2022			2021			2022			2021
		(unaudited)
Revenues
Rental of flight equipment		$	561,285		$	563,663		$	2,214,508		$	2,003,337
Aircraft sales, trading and other			40,325			33,513			102,794			85,052
Total revenues			601,610			597,176			2,317,302			2,088,389
Expenses
Interest			134,303			116,152			492,924			462,396
Amortization of debt discounts and issuance costs			13,482			13,511			53,254			50,620
Interest expense			147,785			129,663			546,178			513,016
Depreciation of flight equipment			252,860			230,819			965,955			882,562
(Recovery)/write-off of Russian fleet			(30,877)			—			771,476			—
Selling, general and administrative			45,862			40,598			156,855			125,279
Stock-based compensation expense			5,804			7,716			15,603			26,516
Total expenses			421,434			408,796			2,456,067			1,547,373
Income/(loss) before taxes			180,176			188,380			(138,765)			541,016
Income tax (expense)/benefit			(34,865)			(36,599)			41,741			(104,384)
Net income/(loss)		$	145,311		$	151,781		$	(97,024)		$	436,632
Preferred stock dividends			(10,425)			(9,463)			(41,700)			(28,473)
Net income/(loss) attributable to common stockholders		$	134,886		$	142,318		$	(138,724)		$	408,159
Earnings/(Loss) per share of common stock:
Basic		$	1.22		$	1.25		$	(1.24)		$	3.58
Diluted		$	1.21		$	1.24		$	(1.24)		$	3.57
Weighted-average shares of common stock outstanding
Basic			110,892,097			113,987,154			111,626,508			114,050,578
Diluted			111,162,063			114,332,498			111,626,508			114,446,093
Other financial data
Pre-tax margin			29.9 %			31.5 %			(6.0) %			25.9 %
Pre-tax return on common equity (trailing twelve months)			(3.0) %			8.6 %			(3.0) %			8.6 %
Adjusted net income before income taxes(1)		$	158,160		$	200,144		$	659,868		$	589,679
Adjusted diluted earnings per share before income taxes(1)		$	1.42		$	1.75		$	5.89		$	5.15
Adjusted pre-tax margin(1)			26.3 %			33.5 %			28.5 %			28.2 %
Adjusted pre-tax return on common equity (trailing twelve months)(1)			11.0 %			9.8 %			11.0 %			9.8 %

(1)		Adjusted net income before income taxes (defined as net income/(loss) attributable to common stockholders excluding the effects of certain non-cash items, one-time or non-recurring items, such as write-offs of our Russian fleet, that are not expected to continue in the future and certain other items), adjusted pre-tax margin (defined as adjusted net income before income taxes divided by total revenues), adjusted diluted earnings per share before income taxes (defined as adjusted net income before income taxes divided by the weighted average diluted common shares outstanding) and adjusted pre-tax return on common equity (defined as adjusted net income before income taxes divided by average common shareholders' equity) are measures of operating performance that are not defined by GAAP and should not be considered as an alternative to net income/(loss) attributable to common stockholders, pre-tax margin, earnings/(loss) per share, diluted earnings/(loss) per share and pre-tax return on common equity, or any other performance measures derived in accordance with GAAP. Adjusted net income before income taxes, adjusted pre-tax margin, adjusted diluted earnings per share before income taxes and adjusted pre-tax return on common equity are presented as supplemental disclosure because management believes they provide useful information on our earnings from ongoing operations.
		Management and our board of directors use adjusted net income before income taxes, adjusted pre-tax margin, adjusted diluted earnings per share before income taxes and adjusted pre-tax return on common equity to assess our consolidated financial and operating performance.  Management believes these measures are helpful in evaluating the operating performance of our ongoing operations and identifying trends in our performance, because they remove the effects of certain non-cash items, one-time or non-recurring items that are not expected to continue in the future and certain other items from our operating results.  Adjusted net income before income taxes, adjusted pre-tax margin, adjusted diluted earnings per share before income taxes and adjusted pre-tax return on common equity, however, should not be considered in isolation or as a substitute for analysis of our operating results or cash flows as reported under GAAP. Adjusted net income before income taxes, adjusted pre-tax margin, adjusted diluted earnings per share before income taxes and adjusted pre-tax return on common equity do not reflect our cash expenditures or changes in our cash requirements for our working capital needs.  In addition, our calculation of adjusted net income before income taxes, adjusted pre-tax margin, adjusted diluted earnings per share before income taxes and adjusted pre-tax return on common equity may differ from the adjusted net income before income taxes, adjusted pre-tax margin, adjusted diluted earnings per share before income taxes and adjusted pre-tax return on common equity or analogous calculations of other companies in our industry, limiting their usefulness as a comparative measure.
		The following table shows the reconciliation of the numerator for adjusted pre-tax margin (in thousands, except percentages):

		Three Months Ended December 31,						Year Ended December 31,
		2022			2021			2022			2021
		(unaudited)
Reconciliation of the numerator for adjusted pre-tax margin (net income/(loss) attributable to common stockholders to adjusted net income before income taxes):
Net income/(loss) attributable to common stockholders		$	134,886		$	142,318		$	(138,724)		$	408,159
Amortization of debt discounts and issuance costs			13,482			13,511			53,254			50,620
(Recovery)/write-off of Russian fleet			(30,877)			—			771,476			—
Stock-based compensation expense			5,804			7,716			15,603			26,516
Income tax expense/(benefit)			34,865			36,599			(41,741)			104,384
Adjusted net income before income taxes		$	158,160		$	200,144		$	659,868		$	589,679
Denominator for adjusted pre-tax margin:
Total revenues		$	601,610		$	597,176		$	2,317,302		$	2,088,389
Adjusted pre-tax margin(a)			26.3 %			33.5 %			28.5 %			28.2 %
(a) Adjusted pre-tax margin is adjusted net income before income taxes divided by total revenues

The following table shows the reconciliation of the numerator for adjusted diluted earnings per share before income taxes (in thousands, except share and per share amounts):

		Three Months Ended December 31,							Year Ended December 31,
		2022				2021			2022				2021
		(unaudited)
Reconciliation of the numerator for adjusted diluted earnings per share (net income/(loss) attributable to common stockholders to adjusted net income before income taxes):
Net income/(loss) attributable to common stockholders		$	134,886			$	142,318		$	(138,724	)		$	408,159
Amortization of debt discounts and issuance costs			13,482				13,511			53,254				50,620
(Recovery)/write-off of Russian fleet			(30,877	)			—			771,476				—
Stock-based compensation expense			5,804				7,716			15,603				26,516
Income tax expense/(benefit)			34,865				36,599			(41,741	)			104,384
Adjusted net income before income taxes		$	158,160			$	200,144		$	659,868			$	589,679
Denominator for adjusted diluted earnings per share:
Weighted-average diluted common shares outstanding			111,162,063				114,332,498			111,626,508				114,446,093
Potentially dilutive securities, whose effect would have been anti-dilutive			—				—			361,186				—
Adjusted weighted-average diluted common shares outstanding			111,162,063				114,332,498			111,987,694				114,446,093
Adjusted diluted earnings per share before income taxes(b)		$	1.42			$	1.75		$	5.89			$	5.15
(b) Adjusted diluted earnings per share before income taxes is adjusted net income before income taxes divided by adjusted weighted-average diluted common shares outstanding

The following table shows the reconciliation of pre-tax return on common equity to adjusted pre-tax return on common equity (in thousands, except percentages):

		Year Ended December 31,
		2022			2021
		(unaudited)
Reconciliation of the numerator for adjusted pre-tax return on common equity (net (loss)/income attributable to common stockholders to adjusted net income before income taxes):
Net (loss)/income attributable to common stockholders		$	(138,724)		$	408,159
Amortization of debt discounts and issuance costs			53,254			50,620
Write-off of Russian fleet, net of recoveries			771,476			—
Stock-based compensation expense			15,603			26,516
Income tax (benefit)/expense			(41,741)			104,384
Adjusted net income before income taxes		$	659,868		$	589,679
Reconciliation of denominator for pre-tax return on common equity to adjusted pre-tax return on common equity:
Common shareholders' equity as of beginning of the period		$	6,158,568		$	5,822,341
Common shareholders' equity as of end of the period		$	5,796,363		$	6,158,568
Average common shareholders' equity		$	5,977,466		$	5,990,455
Adjusted pre-tax return on common equity(c)			11.0 %			9.8 %
(c) Adjusted pre-tax return on common equity is adjusted net income before income taxes divided by average common shareholders’ equity

Air Lease Corporation and Subsidiaries
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
		Year Ended December 31,
		2022				2021
		(in thousands)
Operating Activities
Net (loss)/income		$	(97,024	)		$	436,632
Adjustments to reconcile net (loss)/income to net cash provided by operating activities:
Depreciation of flight equipment			965,955				882,562
Write-off of Russian fleet, net of recoveries			771,476				—
Stock-based compensation expense			15,603				26,516
Deferred taxes			(43,492	)			97,446
Amortization of prepaid lease costs			47,849				46,547
Amortization of discounts and debt issuance costs			53,254				50,620
Gain on aircraft sales, trading and other activity			(113,103	)			(46,109	)
Changes in operating assets and liabilities:
Other assets			(232,613	)			(176,391	)
Accrued interest and other payables			255				63,112
Rentals received in advance			13,990				(4,099	)
Net cash provided by operating activities			1,382,150				1,376,836
Investing Activities
Acquisition of flight equipment under operating lease			(2,904,723	)			(2,506,175	)
Payments for deposits on flight equipment purchases			(518,270	)			(496,838	)
Proceeds from aircraft sales, trading and other activity			235,424				137,887
Acquisition of aircraft furnishings, equipment and other assets			(216,635	)			(229,654	)
Net cash used in investing activities			(3,404,204	)			(3,094,780	)
Financing Activities
Issuance of common stock upon exercise of options			—				1,438
Net proceeds from preferred stock issuance			—				591,340
Cash dividends paid on Class A common stock			(83,253	)			(73,001	)
Common shares repurchased			(150,000	)			(5,780	)
Cash dividends paid on preferred stock			(41,700	)			(28,473	)
Tax withholdings on stock-based compensation			(8,903	)			(7,441	)
Net change in unsecured revolving facilities			1,020,000				—
Proceeds from debt financings			2,659,996				3,655,830
Payments in reduction of debt financings			(2,085,898	)			(3,194,482	)
Debt issuance costs			(6,827	)			(10,245	)
Security deposits and maintenance reserve receipts			417,224				174,521
Security deposits and maintenance reserve disbursements			(26,860	)			(35,238	)
Net cash provided by financing activities			1,693,779				1,068,469
Net decrease in cash			(328,275	)			(649,475	)
Cash, cash equivalents and restricted cash at beginning of period			1,108,292				1,757,767
Cash, cash equivalents and restricted cash at end of period		$	780,017			$	1,108,292
Supplemental Disclosure of Cash Flow Information
Cash paid during the period for interest, including capitalized interest of $39,655 and $49,070 at December 31, 2022 and 2021, respectively		$	533,897			$	508,616
Cash paid for income taxes		$	6,362			$	5,734
Supplemental Disclosure of Noncash Activities
Buyer furnished equipment, capitalized interest and deposits on flight equipment purchases applied to acquisition of flight equipment		$	914,501			$	1,009,554
Cash dividends declared on common stock, not yet paid		$	22,178			$	21,088

View source version on businesswire.com: https://www.businesswire.com/news/home/20230214005895/en/

Investors:

Jason Arnold

Vice President, Investor Relations

Email: investors@airleasecorp.com

Media:

Laura Woeste

Senior Manager, Media and Investor Relations

Email: press@airleasecorp.com

Ashley Arnold

Senior Manager, Media and Investor Relations

Email: press@airleasecorp.com

Source: Air Lease Corporation

FAQ

What were Air Lease Corporation's revenues for 2022?

Air Lease Corporation reported total revenues of $2.3 billion for the fiscal year 2022.

What was the net income for Air Lease Corporation in Q4 2022?

The net income attributable to common stockholders for Q4 2022 was $134.9 million.

How much did Air Lease Corporation lose in 2022?

Air Lease Corporation posted a net loss of $138.7 million for the fiscal year 2022.

What is the symbol for Air Lease Corporation?

The stock symbol for Air Lease Corporation is AL.

When is Air Lease Corporation's next dividend payment?

The next quarterly dividend payment of $0.20 per share will occur on April 12, 2023.