Air Lease Corporation Announces Fourth Quarter & Fiscal Year 2022 Results
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.
- 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.
- 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.
“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
“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
Operating Results
|
Three Months Ended
|
|
Year Ended
|
|||||||||||||||||||||||||||
|
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
|
|
Year Ended
|
|||||
|
2022 |
|
2021 |
|
2022 |
|
2021 |
|
Pre-tax margin |
|
|
|
|
(6.0)% |
|
|
|
Adjusted pre-tax margin(1) |
|
|
|
|
|
|
|
|
Pre-tax return on common equity (trailing twelve months) |
|
|
|
|
(3.0)% |
|
|
|
Adjusted pre-tax return on common equity (trailing twelve months)(1) |
|
|
|
|
|
|
|
|
(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 $1.0 billion $28 billion -
Sold five aircraft during the quarter for approximately
$211 million -
In
October 2022 , we recovered one Boeing 737-8 MAX aircraft previously detained inRussia , resulting in an approximately$31 million -
Placed
90% of our contracted orderbook positions on long-term leases for aircraft delivering through the end of 2024 and have placed60% of our entire orderbook. -
Ended the year with
$31.4 billion $15.6 billion $15.8 billion -
Issued
$2.2 billion 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 $0.20 April 12, 2023 to holders of record of our common stock as ofMarch 16, 2023 .
Financial Overview
Our total revenues for the year ended
Our net loss attributable to common stockholders for the year ended
Our adjusted net income before income taxes during the year ended
Flight Equipment Portfolio
As of
The following table summarizes the key portfolio metrics of our fleet as of
|
|
|
|
|||
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:
|
|
|
|
|
Region |
|
% of Net Book Value |
|
% of Net Book Value |
|
|
32.5 % |
|
32.5 % |
|
|
29.1 % |
|
26.0 % |
|
|
11.4 % |
|
12.8 % |
The |
|
9.3 % |
|
10.7 % |
|
|
7.8 % |
|
6.8 % |
|
|
6.3 % |
|
7.2 % |
Pacific, |
|
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:
|
|
|
|
|
||||
Aircraft type |
|
Number of
|
|
% of Total |
|
Number of
|
|
% 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 |
||||||||
Debt Financing Activities
We ended the fourth quarter of 2022 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 |
$ |
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,
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
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, our access to the capital markets, the impact of Russia’s invasion of
- 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 otherSEC filings, including futureSEC 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.
|
||||||||
CONSOLIDATED BALANCE SHEETS |
||||||||
(In thousands, except share and par value amounts) |
||||||||
|
|
|
|
|||||
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, |
$ |
106 |
|
|
$ |
106 |
|
|
Class A common stock, |
|
1,109 |
|
|
|
1,140 |
|
|
Class |
|
— |
|
|
|
— |
|
|
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 |
|
|
|
||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS |
||||||||||||
(In thousands, except share, per share amounts and percentages) |
||||||||||||
|
|
Three Months Ended
|
|
Year Ended
|
||||||||
|
|
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
|
|
Year Ended
|
|||||||||
|
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
|
|
Year Ended
|
|||||||||||
|
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
|
|||||
|
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 |
||||||
|
||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||||
(In thousands) |
||||||||
Year Ended
|
||||||||
|
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 |
$ |
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:
Vice President, Investor Relations
Email: investors@airleasecorp.com
Media:
Senior Manager, Media and Investor Relations
Email: press@airleasecorp.com
Senior Manager, Media and Investor Relations
Email: press@airleasecorp.com
Source:
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