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Source: businesswire | Published on: Friday, 08 November 2024
LOS ANGELES--(BUSINESS WIRE)--Air Lease Corporation (ALC) (NYSE: AL) announces financial results for the three and nine months ended September 30, 2024.
“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 $28 billion fleet and $18 billion forward orderbook,” said John L. Plueger, Chief Executive Officer and President, and Steven F. Udvar-Házy, Executive Chairman of the Board.
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 | |||||||||||||
|
| 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 $32,859 and $31,708 at September 30, 2024 and 2023, respectively | $ | 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 |
|
