Air Lease Corporation Announces Third Quarter 2024 Results
Air Lease (NYSE: AL) announced its financial results for Q3 2024, highlighting a 4.7% increase in revenue to $690.2 million compared to Q3 2023. However, net income dropped by 24.9% to $91.6 million, due to higher operating expenses and interest costs. The company took delivery of 20 aircraft, sold nine, and ended the quarter with a fleet of 485 owned aircraft, valued at $27.9 billion. Air Lease also placed 100% of its committed orderbook on long-term leases through 2025. The company issued $300 million in preferred stock and increased its quarterly cash dividend by 5% to $0.22 per share. Despite revenue growth, net income and EPS saw declines, primarily due to higher expenses.
Air Lease (NYSE: AL) ha annunciato i suoi risultati finanziari per il terzo trimestre del 2024, evidenziando un aumento del 4,7% nei ricavi arrivati a 690,2 milioni di dollari rispetto al terzo trimestre del 2023. Tuttavia, l'utile netto è diminuito del 24,9% raggiungendo 91,6 milioni di dollari, a causa di costi operativi e oneri finanziari più elevati. L'azienda ha consegnato 20 aerei, ne ha venduti nove e ha chiuso il trimestre con una flotta di 485 aerei di proprietà, valutati 27,9 miliardi di dollari. Air Lease ha inoltre collocato il 100% del suo libro ordini impegnato in contratti di locazione a lungo termine fino al 2025. L'azienda ha emesso 300 milioni di dollari in azioni privilegiate e ha aumentato il suo dividendo trimestrale in contante del 5% a 0,22 dollari per azione. Nonostante la crescita dei ricavi, l'utile netto e l'EPS hanno mostrato un calo, principalmente a causa di spese più elevate.
Air Lease (NYSE: AL) anunció sus resultados financieros para el tercer trimestre de 2024, destacando un aumento del 4,7% en los ingresos, alcanzando los 690,2 millones de dólares en comparación con el tercer trimestre de 2023. Sin embargo, el ingreso neto cayó un 24,9% hasta 91,6 millones de dólares, debido a mayores gastos operativos y costos de interés. La compañía recibió la entrega de 20 aeronaves, vendió nueve y cerró el trimestre con una flota de 485 aeronaves en propiedad, valoradas en 27,9 mil millones de dólares. Air Lease también colocó el 100% de su cartera de pedidos comprometida en arrendamientos a largo plazo hasta 2025. La compañía emitió 300 millones de dólares en acciones preferentes y aumentó su dividendo trimestral en efectivo en un 5% a 0,22 dólares por acción. A pesar del crecimiento de los ingresos, el ingreso neto y el EPS vieron caídas, principalmente debido a mayores gastos.
Air Lease (NYSE: AL)는 2024년 3분기 재무 결과를 발표하며 2023년 3분기와 비교하여 매출이 4.7% 증가한 6억 9020만 달러에 이르렀다고 강조했습니다. 그러나 순이익은 운영비와 이자 비용 증가로 인해 24.9% 감소하여 9160만 달러로 떨어졌습니다. 이 회사는 20대의 항공기를 인도받았고, 9대를 판매했으며, 485대의 자회사 항공기로 구성된 함대와 함께 분기를 마감했고, 이 항공기들은 279억 달러로 평가됩니다. Air Lease는 2025년까지 장기 임대 계약으로 전량 계약한 주문서를 100% 배정했습니다. 이 회사는 3억 달러의 우선주를 발행하고, 분기 배당금을 5% 인상하여 주당 0.22달러로 조정했습니다. 매출 성장에도 불구하고 순이익 및 EPS는 주로 더 높은 비용 때문에 감소했습니다.
Air Lease (NYSE: AL) a annoncé ses résultats financiers pour le troisième trimestre de 2024, mettant en avant une augmentation de 4,7% des revenus atteignant 690,2 millions de dollars par rapport au troisième trimestre de 2023. Cependant, le revenu net a chuté de 24,9% à 91,6 millions de dollars, en raison de coûts opérationnels et d'intérêts plus élevés. La société a reçu 20 avions, en a vendu neuf et a terminé le trimestre avec une flotte de 485 avions détenus, d'une valeur de 27,9 milliards de dollars. Air Lease a également placé 100% de son carnet de commandes engagé en baux à long terme jusqu'en 2025. La société a émis 300 millions de dollars d'actions privilégiées et a augmenté son dividende en espèces trimestriel de 5% à 0,22 dollar par action. Malgré la croissance des revenus, le revenu net et le BPA ont enregistré des baisses, principalement en raison de coûts plus élevés.
Air Lease (NYSE: AL) hat seine finanziellen Ergebnisse für das dritte Quartal 2024 bekannt gegeben und hebt einen Anstieg der Einnahmen um 4,7% auf 690,2 Millionen Dollar im Vergleich zum dritten Quartal 2023 hervor. Der Nettogewinn fiel jedoch um 24,9% auf 91,6 Millionen Dollar, bedingt durch steigende Betriebskosten und Zinsen. Das Unternehmen erhielt 20 Flugzeuge, verkaufte neun und schloss das Quartal mit einer Flotte von 485 eigenen Flugzeugen ab, die auf 27,9 Milliarden Dollar geschätzt wurden. Air Lease hat auch 100% seines verpflichteten Auftragsbuchs auf langfristige Leasingverträge bis 2025 platziert. Das Unternehmen gab 300 Millionen Dollar an Vorzugsaktien aus und erhöhte seine vierteljährliche Bardividende um 5% auf 0,22 Dollar pro Aktie. Trotz des Umsatzwachstums verzeichneten der Nettogewinn und das EPS Rückgänge, hauptsächlich aufgrund höherer Ausgaben.
- Revenue increased by 4.7% to $690.2 million.
- Took delivery of 20 aircraft, sold nine.
- Increased quarterly cash dividend by 5% to $0.22 per share.
- Net income dropped by 24.9% to $91.6 million.
- EPS decreased by 25.5% to $0.82.
- Operating expenses rose by 13.3%.
Insights
Air Lease 's Q3 2024 results show mixed performance. Revenues increased 4.7% to
Key positives include 100% placement of orderbook through 2025,
Concerning trends include rising interest costs, with composite funding cost increasing to
The aircraft leasing market remains robust, evidenced by ALC's successful placement rates and rising lease rates. The company's strategic fleet composition, with
Geographic diversification is strong with significant presence in Europe (
“Demand for commercial aircraft remains high, and we are continuing to place aircraft at rising lease rates, while also harvesting solid gains on sales from our existing fleet – underscoring the deep value embedded in our young
Third Quarter 2024 Results
The following table summarizes our operating results for the three and nine months ended September 30, 2024 and 2023 (in millions, except per share amounts and percentages):
Operating Results
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||||||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
$ change |
|
% change |
|
|
2024 |
|
|
|
2023 |
|
|
$ change |
|
% change |
||||||
Revenues |
$ |
690.2 |
|
|
$ |
659.4 |
|
|
$ |
30.8 |
|
|
4.7 |
% |
|
$ |
2,020.8 |
|
|
$ |
1,968.4 |
|
|
$ |
52.4 |
|
|
2.7 |
% |
Operating expenses |
|
(559.9 |
) |
|
|
(494.3 |
) |
|
|
(65.6 |
) |
|
13.3 |
% |
|
|
(1,627.5 |
) |
|
|
(1,481.2 |
) |
|
|
(146.3 |
) |
|
9.9 |
% |
Income before taxes |
|
130.2 |
|
|
|
165.0 |
|
|
|
(34.8 |
) |
|
(21.1 |
)% |
|
|
393.3 |
|
|
|
487.2 |
|
|
|
(93.9 |
) |
|
(19.3 |
)% |
Net income attributable to common stockholders |
$ |
91.6 |
|
|
$ |
122.0 |
|
|
$ |
(30.4 |
) |
|
(24.9 |
)% |
|
$ |
279.5 |
|
|
$ |
362.3 |
|
|
$ |
(82.8 |
) |
|
(22.9 |
)% |
Diluted earnings per share |
$ |
0.82 |
|
|
$ |
1.10 |
|
|
$ |
(0.28 |
) |
|
(25.5 |
)% |
|
$ |
2.50 |
|
|
$ |
3.25 |
|
|
$ |
(0.75 |
) |
|
(23.1 |
)% |
Adjusted net income before income taxes(1) |
$ |
140.2 |
|
|
$ |
177.0 |
|
|
$ |
(36.8 |
) |
|
(20.8 |
)% |
|
$ |
423.8 |
|
|
$ |
519.7 |
|
|
$ |
(95.9 |
) |
|
(18.5 |
)% |
Adjusted diluted earnings per share before income taxes(1) |
$ |
1.25 |
|
|
$ |
1.59 |
|
|
$ |
(0.34 |
) |
|
(21.4 |
)% |
|
$ |
3.79 |
|
|
$ |
4.67 |
|
|
$ |
(0.88 |
) |
|
(18.8 |
)% |
Key Financial Ratios
|
Three Months Ended
|
|
Nine 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 third quarter, we took delivery of 20 aircraft from our orderbook, representing approximately
$1.9 billion $32 billion -
Sold nine aircraft during the third quarter for approximately
$340 million $1.4 billion $1.5 billion -
We have approximately
$1.5 billion $741 million $745 million -
We have placed
100% and95% of our committed orderbook on long-term leases for aircraft delivering through the end of 2025 and 2026, respectively, and have placed approximately63% of our entire orderbook delivering through 2029. -
We ended the quarter with
$29.7 billion $17.6 billion $12.1 billion -
During the quarter, we entered into a variety of committed term loans totaling approximately
$1.0 billion -
In September 2024, we issued
$300.0 million 6.00% Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock, Series D. -
In October 2024, we redeemed all outstanding shares of our
6.150% Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series A. -
On November 6, 2024, our board of directors increased our quarterly cash dividend by
5% , from$0.21 $0.22 $0.22
Financial Overview
Our rental revenues for the three months ended September 30, 2024 increased by
Our aircraft sales, trading and other revenues for the three months ended September 30, 2024 increased by
Our net income attributable to common stockholders for the three months ended September 30, 2024, was
Adjusted net income before income taxes during the three months ended September 30, 2024, was
—————————————————————— |
1 Aircraft in our sales pipeline is as of September 30, 2024, and includes letters of intent and sale agreements signed through November 7, 2024. |
Flight Equipment Portfolio
As of September 30, 2024, the net book value of our fleet increased to
The following table summarizes the key portfolio metrics of our fleet as of September 30, 2024 and December 31, 2023:
|
September 30, 2024 |
|
December 31, 2023 |
||
Net book value of flight equipment subject to operating lease |
$ |
27.9 billion |
|
$ |
26.2 billion |
Weighted-average fleet age(1) |
4.6 years |
|
4.6 years |
||
Weighted-average remaining lease term(1) |
7.1 years |
|
7.0 years |
||
|
|
|
|
||
Owned fleet(2) |
485 |
|
463 |
||
Managed fleet |
64 |
|
78 |
||
Aircraft on order |
287 |
|
334 |
||
Total |
836 |
|
875 |
||
|
|
|
|
||
Current fleet contracted rentals |
$ |
17.6 billion |
|
$ |
16.4 billion |
Committed fleet rentals |
$ |
12.1 billion |
|
$ |
14.6 billion |
Total committed rentals |
$ |
29.7 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 September 30, 2024 and December 31, 2023, our owned fleet count included 23 and 14 aircraft classified as flight equipment held for sale, respectively, and 14 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:
|
|
September 30, 2024 |
|
December 31, 2023 |
||
Region |
|
% of Net Book Value |
|
% of Net Book Value |
||
|
|
41.0 |
% |
|
37.7 |
% |
|
|
36.4 |
% |
|
39.8 |
% |
|
|
9.7 |
% |
|
9.0 |
% |
The |
|
7.1 |
% |
|
7.9 |
% |
|
|
5.8 |
% |
|
5.6 |
% |
Total |
|
100.0 |
% |
|
100.0 |
% |
The following table details the composition of our owned fleet by aircraft type:
|
|
September 30, 2024 |
|
December 31, 2023 |
||||||||
Aircraft type |
|
Number of
|
|
% of Total |
|
Number of
|
|
% of Total |
||||
Airbus A220-100 |
|
5 |
|
1.0 |
% |
|
2 |
|
0.4 |
% |
||
Airbus A220-300 |
|
17 |
|
|
3.5 |
% |
|
13 |
|
|
2.8 |
% |
Airbus A319-100 |
|
1 |
|
|
0.2 |
% |
|
1 |
|
|
0.2 |
% |
Airbus A320-200 |
|
26 |
|
|
5.4 |
% |
|
28 |
|
|
6.0 |
% |
Airbus A320-200neo |
|
23 |
|
|
4.7 |
% |
|
25 |
|
|
5.4 |
% |
Airbus A321-200 |
|
21 |
|
|
4.3 |
% |
|
23 |
|
|
5.0 |
% |
Airbus A321-200neo |
|
108 |
|
|
22.3 |
% |
|
95 |
|
|
20.6 |
% |
Airbus A330-200(1) |
|
13 |
|
|
2.7 |
% |
|
13 |
|
|
2.8 |
% |
Airbus A330-300 |
|
5 |
|
|
1.0 |
% |
|
5 |
|
|
1.1 |
% |
Airbus A330-900neo |
|
26 |
|
|
5.4 |
% |
|
23 |
|
|
5.0 |
% |
Airbus A350-900 |
|
17 |
|
|
3.5 |
% |
|
14 |
|
|
3.0 |
% |
Airbus A350-1000 |
|
8 |
|
|
1.6 |
% |
|
7 |
|
|
1.5 |
% |
Boeing 737-700 |
|
2 |
|
|
0.4 |
% |
|
3 |
|
|
0.6 |
% |
Boeing 737-800 |
|
64 |
|
|
13.2 |
% |
|
73 |
|
|
15.8 |
% |
Boeing 737-8 MAX |
|
58 |
|
|
12.0 |
% |
|
52 |
|
|
11.2 |
% |
Boeing 737-9 MAX |
|
30 |
|
|
6.2 |
% |
|
29 |
|
|
6.3 |
% |
Boeing 777-200ER |
|
1 |
|
|
0.2 |
% |
|
1 |
|
|
0.2 |
% |
Boeing 777-300ER |
|
24 |
|
|
4.9 |
% |
|
24 |
|
|
5.2 |
% |
Boeing 787-9 |
|
26 |
|
|
5.4 |
% |
|
25 |
|
|
5.4 |
% |
Boeing 787-10 |
|
9 |
|
|
1.9 |
% |
|
6 |
|
|
1.3 |
% |
Embraer E190 |
|
1 |
|
|
0.2 |
% |
|
1 |
|
|
0.2 |
% |
Total(2) |
|
485 |
|
|
100.0 |
% |
|
463 |
|
|
100.0 |
% |
|
|
|
|
|
|
|
|
|
||||
(1) As of September 30, 2024 and December 31, 2023, aircraft count includes two Airbus A330-200 aircraft classified as freighters. |
||||||||||||
(2) As of September 30, 2024 and December 31, 2023, our owned fleet count included 23 and 14 aircraft classified as flight equipment held for sale, respectively, and 14 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 third 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):
|
September 30, 2024 |
|
December 31, 2023 |
||||
Unsecured |
|
|
|
||||
Senior unsecured securities |
$ |
16,429 |
|
|
$ |
16,330 |
|
Term financings |
|
2,083 |
|
|
|
1,628 |
|
Revolving credit facility |
|
1,286 |
|
|
|
1,100 |
|
Total unsecured debt financing |
|
19,798 |
|
|
|
19,058 |
|
Secured |
|
|
|
||||
Term financings |
|
358 |
|
|
|
101 |
|
Export credit financing |
|
194 |
|
|
|
205 |
|
Total secured debt financing |
|
552 |
|
|
|
306 |
|
|
|
|
|
||||
Total debt financing |
|
20,350 |
|
|
|
19,364 |
|
Less: Debt discounts and issuance costs |
|
(188 |
) |
|
|
(181 |
) |
Debt financing, net of discounts and issuance costs |
$ |
20,162 |
|
|
$ |
19,183 |
|
Selected interest rates and ratios: |
|
|
|
||||
Composite interest rate(1) |
|
4.21 |
% |
|
|
3.77 |
% |
Composite interest rate on fixed-rate debt(1) |
|
3.72 |
% |
|
|
3.26 |
% |
Percentage of total debt at a fixed-rate |
|
81.05 |
% |
|
|
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. |
|||||||
Conference Call
In connection with this earnings release, Air Lease Corporation will host a conference call on November 7, 2024 at 4:30 PM Eastern Time to discuss the Company's financial results for the third quarter of 2024.
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 on November 7, 2024 until 11:59 PM ET on November 14, 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, our future aircraft deliveries and rental revenues, which may be impacted by aircraft and engine delivery delays and manufacturing flaws, including as a result of the Boeing labor strike among other factors, our aircraft sales pipeline and expectations and payment of our future dividends. 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 aircraft acquisitions and profitable leasing;
- the failure of an aircraft or engine manufacturer to meet its contractual obligations to us, including or as a result of labor strikes, aviation supply chain constraints, manufacturing flaws or 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) |
|||||||
|
September 30, 2024 |
|
December 31, 2023 |
||||
|
(unaudited) |
||||||
Assets |
|
|
|
||||
Cash and cash equivalents |
$ |
460,785 |
|
|
$ |
460,870 |
|
Restricted cash |
|
4,565 |
|
|
|
3,622 |
|
Flight equipment subject to operating leases |
|
33,853,006 |
|
|
|
31,787,241 |
|
Less accumulated depreciation |
|
(5,958,105 |
) |
|
|
(5,556,033 |
) |
|
|
27,894,901 |
|
|
|
26,231,208 |
|
Deposits on flight equipment purchases |
|
1,050,268 |
|
|
|
1,203,068 |
|
Other assets |
|
2,743,310 |
|
|
|
2,553,484 |
|
Total assets |
$ |
32,153,829 |
|
|
$ |
30,452,252 |
|
Liabilities and Shareholders’ Equity |
|
|
|
||||
Accrued interest and other payables |
$ |
1,072,033 |
|
|
$ |
1,164,140 |
|
Debt financing, net of discounts and issuance costs |
|
20,161,860 |
|
|
|
19,182,657 |
|
Security deposits and maintenance reserves on flight equipment leases |
|
1,757,104 |
|
|
|
1,519,719 |
|
Rentals received in advance |
|
129,303 |
|
|
|
143,861 |
|
Deferred tax liability |
|
1,357,832 |
|
|
|
1,281,837 |
|
Total liabilities |
$ |
24,478,132 |
|
|
$ |
23,292,214 |
|
Shareholders’ Equity |
|
|
|
||||
Preferred Stock, |
$ |
109 |
|
|
$ |
106 |
|
Class A common stock, |
|
1,114 |
|
|
|
1,110 |
|
Class B Non-Voting common stock, |
|
— |
|
|
|
— |
|
Paid-in capital |
|
3,598,407 |
|
|
|
3,287,234 |
|
Retained earnings |
|
4,079,173 |
|
|
|
3,869,813 |
|
Accumulated other comprehensive (loss)/income |
|
(3,106 |
) |
|
|
1,775 |
|
Total shareholders’ equity |
$ |
7,675,697 |
|
|
$ |
7,160,038 |
|
Total liabilities and shareholders’ equity |
$ |
32,153,829 |
|
|
$ |
30,452,252 |
|
Air Lease Corporation and Subsidiaries |
||||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME |
||||||||||||||||
(In thousands, except share, per share amounts and percentages) |
||||||||||||||||
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
(unaudited) |
||||||||||||||
Revenues |
|
|
|
|
|
|
|
|
||||||||
Rental of flight equipment |
|
$ |
625,180 |
|
|
$ |
604,027 |
|
|
$ |
1,849,014 |
|
|
$ |
1,833,533 |
|
Aircraft sales, trading and other |
|
|
64,984 |
|
|
|
55,337 |
|
|
|
171,748 |
|
|
|
134,876 |
|
Total revenues |
|
|
690,164 |
|
|
|
659,364 |
|
|
|
2,020,762 |
|
|
|
1,968,409 |
|
|
|
|
|
|
|
|
|
|
||||||||
Expenses |
|
|
|
|
|
|
|
|
||||||||
Interest |
|
|
203,092 |
|
|
|
161,769 |
|
|
|
574,691 |
|
|
|
485,555 |
|
Amortization of debt discounts and issuance costs |
|
|
14,371 |
|
|
|
13,695 |
|
|
|
40,772 |
|
|
|
40,414 |
|
Interest expense |
|
|
217,463 |
|
|
|
175,464 |
|
|
|
615,463 |
|
|
|
525,969 |
|
|
|
|
|
|
|
|
|
|
||||||||
Depreciation of flight equipment |
|
|
290,132 |
|
|
|
267,393 |
|
|
|
849,374 |
|
|
|
795,659 |
|
Selling, general and administrative |
|
|
44,418 |
|
|
|
42,770 |
|
|
|
137,592 |
|
|
|
136,216 |
|
Stock-based compensation expense |
|
|
7,919 |
|
|
|
8,719 |
|
|
|
25,031 |
|
|
|
23,330 |
|
Total expenses |
|
|
559,932 |
|
|
|
494,346 |
|
|
|
1,627,460 |
|
|
|
1,481,174 |
|
Income before taxes |
|
|
130,232 |
|
|
|
165,018 |
|
|
|
393,302 |
|
|
|
487,235 |
|
Income tax expense |
|
|
(26,261 |
) |
|
|
(32,568 |
) |
|
|
(78,519 |
) |
|
|
(93,664 |
) |
Net income |
|
$ |
103,971 |
|
|
$ |
132,450 |
|
|
$ |
314,783 |
|
|
$ |
393,571 |
|
Preferred stock dividends |
|
|
(12,325 |
) |
|
|
(10,425 |
) |
|
|
(35,258 |
) |
|
|
(31,275 |
) |
Net income attributable to common stockholders |
|
$ |
91,646 |
|
|
$ |
122,025 |
|
|
$ |
279,525 |
|
|
$ |
362,296 |
|
|
|
|
|
|
|
|
|
|
||||||||
Earnings per share of common stock: |
|
|
|
|
|
|
|
|
||||||||
Basic |
|
$ |
0.82 |
|
|
$ |
1.10 |
|
|
$ |
2.51 |
|
|
$ |
3.26 |
|
Diluted |
|
$ |
0.82 |
|
|
$ |
1.10 |
|
|
$ |
2.50 |
|
|
$ |
3.25 |
|
Weighted-average shares of common stock outstanding |
|
|
|
|
|
|
|
|
||||||||
Basic |
|
|
111,376,884 |
|
|
|
111,027,252 |
|
|
|
111,308,222 |
|
|
|
110,997,619 |
|
Diluted |
|
|
111,804,113 |
|
|
|
111,346,799 |
|
|
|
111,801,757 |
|
|
|
111,383,257 |
|
|
|
|
|
|
|
|
|
|
||||||||
Other financial data |
|
|
|
|
|
|
|
|
||||||||
Pre-tax margin |
|
|
18.9 |
% |
|
|
25.0 |
% |
|
|
19.5 |
% |
|
|
24.8 |
% |
Pre-tax return on common equity (trailing twelve months) |
|
|
9.7 |
% |
|
|
10.6 |
% |
|
|
9.7 |
% |
|
|
10.6 |
% |
Adjusted net income before income taxes(1) |
|
$ |
140,197 |
|
|
$ |
177,007 |
|
|
$ |
423,847 |
|
|
$ |
519,704 |
|
Adjusted diluted earnings per share before income taxes(1) |
|
$ |
1.25 |
|
|
$ |
1.59 |
|
|
$ |
3.79 |
|
|
$ |
4.67 |
|
Adjusted pre-tax margin(1) |
|
|
20.3 |
% |
|
|
26.8 |
% |
|
|
21.0 |
% |
|
|
26.4 |
% |
Adjusted pre-tax return on common equity (trailing twelve months)(1) |
|
|
10.1 |
% |
|
|
11.5 |
% |
|
|
10.1 |
% |
|
|
11.5 |
% |
(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
|
|
Nine 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 |
$ |
91,646 |
|
|
$ |
122,025 |
|
|
$ |
279,525 |
|
|
$ |
362,296 |
|
Amortization of debt discounts and issuance costs |
|
14,371 |
|
|
|
13,695 |
|
|
|
40,772 |
|
|
|
40,414 |
|
Stock-based compensation expense |
|
7,919 |
|
|
|
8,719 |
|
|
|
25,031 |
|
|
|
23,330 |
|
Income tax expense |
|
26,261 |
|
|
|
32,568 |
|
|
|
78,519 |
|
|
|
93,664 |
|
Adjusted net income before income taxes |
$ |
140,197 |
|
|
$ |
177,007 |
|
|
$ |
423,847 |
|
|
$ |
519,704 |
|
|
|
|
|
|
|
|
|
||||||||
Denominator for adjusted pre-tax margin: |
|
|
|
|
|
||||||||||
Total revenues |
$ |
690,164 |
|
|
$ |
659,364 |
|
|
$ |
2,020,762 |
|
|
$ |
1,968,409 |
|
Adjusted pre-tax margin(a) |
|
20.3 |
% |
|
|
26.8 |
% |
|
|
21.0 |
% |
|
|
26.4 |
% |
|
|
|
|
|
|
|
|
||||||||
(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
|
|
Nine Months Ended
|
||||||||||||
|
|
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 |
$ |
91,646 |
|
$ |
122,025 |
|
$ |
279,525 |
|
$ |
362,296 |
||||
Amortization of debt discounts and issuance costs |
|
14,371 |
|
|
|
13,695 |
|
|
|
40,772 |
|
|
|
40,414 |
|
Stock-based compensation expense |
|
7,919 |
|
|
|
8,719 |
|
|
|
25,031 |
|
|
|
23,330 |
|
Income tax expense |
|
26,261 |
|
|
|
32,568 |
|
|
|
78,519 |
|
|
|
93,664 |
|
Adjusted net income before income taxes |
$ |
140,197 |
|
|
$ |
177,007 |
|
|
$ |
423,847 |
|
|
$ |
519,704 |
|
|
|
|
|
|
|
|
|
||||||||
Denominator for adjusted diluted earnings per share: |
|
|
|
|
|
|
|
||||||||
Weighted-average diluted common shares outstanding |
|
111,804,113 |
|
|
|
111,346,799 |
|
|
|
111,801,757 |
|
|
|
111,383,257 |
|
Adjusted diluted earnings per share before income taxes(b) |
$ |
1.25 |
|
|
$ |
1.59 |
|
|
$ |
3.79 |
|
|
$ |
4.67 |
|
|
|
|
|
|
|
|
|
||||||||
(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 |
$ |
490,151 |
|
|
$ |
497,182 |
|
Amortization of debt discounts and issuance costs |
|
54,410 |
|
|
|
53,896 |
|
Recovery of Russian fleet |
|
(67,022 |
) |
|
|
(30,877 |
) |
Stock-based compensation expense |
|
36,316 |
|
|
|
29,134 |
|
Income tax expense |
|
123,868 |
|
|
|
128,529 |
|
Adjusted net income before income taxes |
$ |
637,723 |
|
|
$ |
677,864 |
|
|
|
|
|
||||
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 |
$ |
6,111,053 |
|
|
$ |
5,678,434 |
|
Common shareholders' equity as of end of the period |
$ |
6,525,697 |
|
|
$ |
6,111,053 |
|
Average common shareholders' equity |
$ |
6,318,375 |
|
|
$ |
5,894,744 |
|
|
|
|
|
||||
Adjusted pre-tax return on common equity(c) |
|
10.1 |
% |
|
|
11.5 |
% |
|
|
|
|
||||
(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) |
|||||||
|
Nine Months Ended
|
||||||
|
|
2024 |
|
|
|
2023 |
|
|
(unaudited) |
||||||
Operating Activities |
|
|
|
||||
Net income |
$ |
314,783 |
|
|
$ |
393,571 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
||||
Depreciation of flight equipment |
|
849,374 |
|
|
|
795,659 |
|
Stock-based compensation expense |
|
25,031 |
|
|
|
23,330 |
|
Deferred taxes |
|
77,324 |
|
|
|
91,410 |
|
Amortization of prepaid lease costs |
|
77,271 |
|
|
|
54,962 |
|
Amortization of discounts and debt issuance costs |
|
40,772 |
|
|
|
40,414 |
|
Gain on aircraft sales, trading and other activity |
|
(149,018 |
) |
|
|
(147,174 |
) |
Changes in operating assets and liabilities: |
|
|
|
||||
Other assets |
|
(3,509 |
) |
|
|
40,496 |
|
Accrued interest and other payables |
|
29,494 |
|
|
|
(6,380 |
) |
Rentals received in advance |
|
(14,467 |
) |
|
|
(3,982 |
) |
Net cash provided by operating activities |
|
1,247,055 |
|
|
|
1,282,306 |
|
Investing Activities |
|
|
|
||||
Acquisition of flight equipment under operating lease |
|
(2,816,375 |
) |
|
|
(2,782,507 |
) |
Payments for deposits on flight equipment purchases |
|
(461,788 |
) |
|
|
(249,231 |
) |
Proceeds from aircraft sales, trading and other activity |
|
884,045 |
|
|
|
1,568,420 |
|
Acquisition of aircraft furnishings, equipment and other assets |
|
(284,050 |
) |
|
|
(205,368 |
) |
Net cash used in investing activities |
|
(2,678,168 |
) |
|
|
(1,668,686 |
) |
Financing Activities |
|
|
|
||||
Net proceeds from preferred stock issuance |
|
295,532 |
|
|
|
— |
|
Cash dividends paid on Class A common stock |
|
(70,092 |
) |
|
|
(66,587 |
) |
Cash dividends paid on preferred stock |
|
(35,258 |
) |
|
|
(31,275 |
) |
Tax withholdings on stock-based compensation |
|
(9,384 |
) |
|
|
(3,354 |
) |
Net change in unsecured revolving facility |
|
186,000 |
|
|
|
758,000 |
|
Proceeds from debt financings |
|
3,541,706 |
|
|
|
1,783,973 |
|
Payments in reduction of debt financings |
|
(2,781,604 |
) |
|
|
(2,566,518 |
) |
Debt issuance costs |
|
(10,626 |
) |
|
|
(10,590 |
) |
Security deposits and maintenance reserve receipts |
|
328,351 |
|
|
|
269,171 |
|
Security deposits and maintenance reserve disbursements |
|
(12,654 |
) |
|
|
(10,723 |
) |
Net cash provided by financing activities |
|
1,431,971 |
|
|
|
122,097 |
|
Net increase/(decrease) in cash |
|
858 |
|
|
|
(264,283 |
) |
Cash, cash equivalents and restricted cash at beginning of period |
|
464,492 |
|
|
|
780,017 |
|
Cash, cash equivalents and restricted cash at end of period |
$ |
465,350 |
|
|
$ |
515,734 |
|
Supplemental Disclosure of Cash Flow Information |
|
|
|
||||
Cash paid during the period for interest, including capitalized interest of |
$ |
590,697 |
|
|
$ |
532,922 |
|
Cash paid for income taxes |
$ |
22,746 |
|
|
$ |
6,250 |
|
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 |
$ |
838,170 |
|
|
$ |
620,280 |
|
Flight equipment subject to operating leases reclassified to flight equipment held for sale |
$ |
1,143,096 |
|
|
$ |
1,411,564 |
|
Flight equipment subject to operating leases reclassified to investment in sales-type lease |
$ |
74,017 |
|
|
$ |
33,641 |
|
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/20241106007599/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 revenues for Q3 2024?
How did Air Lease 's net income perform in Q3 2024?
What was Air Lease 's EPS for Q3 2024?
How many aircraft did Air Lease add in Q3 2024?
What is the new quarterly dividend for Air Lease ?
