Air Lease Corporation Announces Second Quarter 2024 Results
Air Lease (NYSE: AL) reported Q2 2024 financial results, showing a slight decrease in revenues to $667.3 million, down 0.8% year-over-year. Net income attributable to common stockholders fell 25.9% to $90.4 million, with diluted EPS of $0.81, down from $1.10 in Q2 2023. The company cited ongoing delays from aircraft and engine manufacturers affecting results. ALC took delivery of 13 aircraft, representing $940 million in investments, and sold 11 aircraft for $530 million. The owned fleet grew to 474 aircraft with a net book value of $26.8 billion. Despite challenges, ALC maintains a strong orderbook with 100% of deliveries through 2025 placed on long-term leases.
Air Lease (NYSE: AL) ha riportato i risultati finanziari del secondo trimestre 2024, mostrando una leggera diminuzione dei ricavi a 667,3 milioni di dollari, in calo dello 0,8% rispetto all’anno precedente. L'utile netto attribuibile agli azionisti ordinari è diminuito del 25,9% a 90,4 milioni di dollari, con un EPS diluito di 0,81 dollari, rispetto a 1,10 dollari nel secondo trimestre 2023. L'azienda ha citato ritardi continuativi da parte dei produttori di aerei e motori che hanno influito sui risultati. ALC ha ricevuto 13 aerei, rappresentanti investimenti di 940 milioni di dollari, e ha venduto 11 aerei per 530 milioni di dollari. La flotta di proprietà è cresciuta fino a 474 aerei con un valore contabile netto di 26,8 miliardi di dollari. Nonostante le sfide, ALC mantiene un forte portafoglio ordini con il 100% delle consegne fino al 2025 programmate per locazioni a lungo termine.
Air Lease (NYSE: AL) informó los resultados financieros del segundo trimestre de 2024, mostrando una ligera disminución en los ingresos a 667,3 millones de dólares, una caída del 0,8% en comparación con el año anterior. El ingreso neto atribuible a los accionistas comunes cayó un 25,9% a 90,4 millones de dólares, con un EPS diluido de 0,81 dólares, en comparación con 1,10 dólares en el segundo trimestre de 2023. La empresa citó retrasos continuos por parte de los fabricantes de aeronaves y motores que afectan los resultados. ALC recibió 13 aeronaves, representando 940 millones de dólares en inversiones, y vendió 11 aeronaves por 530 millones de dólares. La flota propia creció a 474 aeronaves con un valor contable neto de 26,8 mil millones de dólares. A pesar de los desafíos, ALC mantiene un fuerte libro de pedidos con el 100% de las entregas programadas hasta 2025 bajo contratos de arrendamiento a largo plazo.
에어리스(뉴욕증권거래소: AL)는 2024년 2분기 재무 결과를 발표하며 수익의 소폭 감소를 보고했습니다. 수익은 6억 6730만 달러로 작년 대비 0.8% 감소했습니다. 순이익은 보통주 주주에게 25.9% 감소한 9천 4백만 달러로, 희석 주당 순이익(EPS)은 0.81달러로, 2023년 2분기의 1.10달러에서 하락했습니다. 회사는 항공기 및 엔진 제조업체의 지속적인 지연이 결과에 영향을 미쳤다고 언급했습니다. ALC는 13대의 항공기를 인도받아 9억 4천만 달러를 투자했으며, 11대를 5억 3천만 달러에 판매했습니다. 소유 보유 항공기는 474대로 늘어났으며, 순장부 가치는 268억 달러입니다. 어려움에도 불구하고 ALC는 2025년까지 100%의 납품이 장기 임대계약으로 진행되는 강력한 주문서를 유지하고 있습니다.
Air Lease (NYSE: AL) a annoncé les résultats financiers du deuxième trimestre 2024, montrant une légère diminution des revenus à 667,3 millions de dollars, en baisse de 0,8 % par rapport à l’année précédente. Le résultat net attribuable aux actionnaires ordinaires a chuté de 25,9 % à 90,4 millions de dollars, avec un BPA dilué de 0,81 dollar, contre 1,10 dollar au deuxième trimestre 2023. La société a cité des retards continus de la part des fabricants d'avions et de moteurs, affectant les résultats. ALC a reçu la livraison de 13 avions, représentant 940 millions de dollars d’investissements, et a vendu 11 avions pour 530 millions de dollars. La flotte propre a augmenté à 474 avions avec une valeur comptable nette de 26,8 milliards de dollars. Malgré les défis, ALC maintient un carnet de commandes solide avec 100 % des livraisons d'ici 2025 prévues pour des baux à long terme.
Air Lease (NYSE: AL) berichtete über die Finanzergebnisse des zweiten Quartals 2024 und zeigte einen leichten Rückgang der Einnahmen auf 667,3 Millionen Dollar, was einem Rückgang von 0,8 % im Vergleich zum Vorjahr entspricht. Der Nettogewinn, der den Stammaktionären zuzurechnen ist, fiel um 25,9 % auf 90,4 Millionen Dollar, mit einem verwässerten EPS von 0,81 Dollar, verglichen mit 1,10 Dollar im zweiten Quartal 2023. Das Unternehmen verwies auf anhaltende Verzögerungen seitens der Flugzeug- und Triebwerkshersteller, die die Ergebnisse beeinflussten. ALC erhielt 13 Flugzeuge, was 940 Millionen Dollar an Investitionen entspricht, und verkaufte 11 Flugzeuge für 530 Millionen Dollar. Die im Besitz befindliche Flotte wuchs auf 474 Flugzeuge mit einem Netto-Buchwert von 26,8 Milliarden Dollar. Trotz der Herausforderungen hält ALC ein starkes Auftragsbuch mit 100 % der Lieferungen bis 2025, die in langfristige Mietverträge eingegeben sind.
- Owned fleet grew to 474 aircraft with a net book value of $26.8 billion
- 100% of committed orderbook placed on long-term leases for aircraft delivering through 2025
- $30.0 billion in committed minimum future rental payments
- Issued $1.2 billion in Medium-Term Notes
- Declared quarterly cash dividend of $0.21 per share
- Revenues decreased by 0.8% year-over-year to $667.3 million
- Net income attributable to common stockholders fell 25.9% to $90.4 million
- Diluted EPS decreased to $0.81 from $1.10 in Q2 2023
- Aircraft investments lower than expected due to ongoing manufacturing delays
- Higher interest expense due to increased composite cost of funds and outstanding debt balance
Insights
Air Lease 's Q2 2024 results reveal a challenging period for the aircraft leasing industry. The company reported revenues of
The primary factors contributing to this decline include:
- Ongoing delays from aircraft and engine manufacturers
- Higher interest expenses due to increased cost of funds and outstanding debt
- Lower gains from aircraft sales
- Reduced end-of-lease revenue due to fewer aircraft returns
Despite these challenges, ALC maintains a strong position with a fleet of 474 owned aircraft and total assets of approximately
Notably, ALC's aircraft sales initiatives demonstrate the value of its fleet, with
However, investors should monitor the increasing debt levels and rising interest rates. The company's total debt financing increased to
In conclusion, while ALC faces short-term headwinds, its strong order book, high lease placement rates and ability to sell aircraft at a premium indicate long-term resilience in a recovering aviation market.
The Q2 2024 results from Air Lease offer valuable insights into the current state of the commercial aviation industry. Despite ongoing challenges, there are several positive indicators worth noting:
- ALC has placed
100% of its committed orderbook on long-term leases for aircraft delivering through 2025 and96% through 2026. This high placement rate suggests strong demand for new, fuel-efficient aircraft from airlines globally. - The company's ability to sell older aircraft at a premium to book value (
$1.7 billion in sales proceeds from$1.5 billion in net book value) indicates a robust secondary market for commercial aircraft. - ALC's diverse customer base of 118 airlines across 59 countries demonstrates the global nature of the aviation recovery and helps mitigate regional risks.
However, the results also highlight ongoing industry challenges:
- Continued manufacturing delays are impacting delivery schedules and revenue growth. ALC received only
$940 million in new aircraft investments versus an expected$1.5 billion . - The transition to newer aircraft types is temporarily pressuring lease yields, as newer aircraft typically start with lower initial lease rates.
- Rising interest rates are increasing the cost of capital for lessors, which may impact profitability if not fully passed on to lessees.
Looking ahead, the aviation industry's recovery trajectory remains positive, driven by strong passenger demand and the need for fleet modernization. However, supply chain constraints and economic uncertainties could continue to create short-term volatility for aircraft lessors like ALC.
Air Lease 's Q2 2024 results present a mixed picture for investors, reflecting both industry-wide challenges and company-specific strengths. Here's a strategic view of the key takeaways:
Positive Factors:
- Robust Orderbook: ALC's success in placing
100% of aircraft deliveries through 2025 and96% through 2026 on long-term leases provides excellent visibility into future revenues. - Asset Value Appreciation: The company's ability to sell aircraft at a premium to book value (
$1.7 billion vs$1.5 billion ) demonstrates the underlying strength of its portfolio and potential for capital gains. - Diversification: A customer base spanning 118 airlines in 59 countries offers significant risk mitigation.
Challenges:
- Margin Pressure: The pre-tax margin declined from
24.4% to19.1% year-over-year, primarily due to higher interest expenses and lower revenues. - Delivery Delays: Ongoing manufacturing issues are impacting fleet growth and revenue expansion.
- Rising Interest Rates: The increase in ALC's composite interest rate from
3.77% to3.99% may continue to pressure profitability.
Strategic Outlook: While short-term headwinds persist, ALC's long-term positioning remains strong. The company's focus on new, fuel-efficient aircraft aligns with airline priorities for fleet modernization. The
Investors should monitor ALC's ability to navigate the rising interest rate environment and potentially accelerate aircraft sales to capitalize on strong secondary market demand. The company's performance relative to peers in managing delivery delays and maintaining lease yield will be important metrics to watch in upcoming quarters.
“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
|
|
Six Months Ended
|
||||||||||||||||||||||||||
|
|
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
|
|
Six Months Ended
|
||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
Pre-tax margin |
|
|
|
|
|
|
|
Adjusted pre-tax margin(1) |
|
|
|
|
|
|
|
Pre-tax return on common equity (trailing twelve months) |
|
|
|
|
|
|
|
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 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 $31 billion $1.5 billion -
Sold 11 aircraft during the second quarter for approximately
$530 million $1.5 billion $1.7 billion -
We have approximately
$1.5 billion $609 million $896 million -
We have placed
100% and96% of our committed orderbook on long-term leases for aircraft delivering through the end of 2025 and 2026, respectively, and have placed approximately64% of our entire orderbook delivering through 2029. -
We ended the quarter with
$30.0 billion $16.5 billion $13.5 billion -
During the second quarter, we issued
$600.0 million 5.30% Medium-Term Notes due 2026 and$600.0 million 5.20% Medium-Term Notes due 2031. -
On July 31, 2024, our board of directors declared a quarterly cash dividend of
$0.21 $0.21
Financial Overview
Our rental revenues for the three months ended June 30, 2024 decreased by
Our aircraft sales, trading and other revenues for the three months ended June 30, 2024, decreased by
Our net income attributable to common stockholders for the three months ended June 30, 2024, was
Adjusted net income before income taxes during the three months ended June 30, 2024, was
| ______________________ |
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
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 |
||
|
|
40.6 |
% |
|
37.7 |
% |
|
|
36.5 |
% |
|
39.8 |
% |
|
|
9.5 |
% |
|
9.0 |
% |
The |
|
7.6 |
% |
|
7.9 |
% |
|
|
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
|
|
% of Total |
|
Number of
|
|
% 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
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 |
|||||||
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
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, |
$ |
106 |
|
|
$ |
106 |
|
Class A common stock, |
|
1,114 |
|
|
|
1,110 |
|
Class B Non-Voting common stock, |
|
— |
|
|
|
— |
|
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
|
|
Six Months Ended
|
||||||||||||
|
|
|
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
|
|
Six Months Ended
|
||||||||||||
|
|
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
|
|
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
|
||||||
|
|
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
|
||||||
|
|
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 |
$ |
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
Source: Air Lease Corporation
FAQ
What were Air Lease 's (AL) Q2 2024 revenue and EPS?
How many aircraft did Air Lease (AL) add to its fleet in Q2 2024?
What was Air Lease 's (AL) owned fleet size as of June 30, 2024?
How much did Air Lease (AL) generate from aircraft sales in Q2 2024?
