Air Lease Corporation Announces Fiscal Year & Fourth Quarter 2019 Results
Air Lease Corporation ("ALC") (NYSE: AL) announces financial results for the year and three months ended December 31, 2019.
-
Revenues:
- $549 million for the three months ended December 31, 2019, an increase of 21.9%
- $2.0 billion for the full year 2019, an increase of 20.1%
-
Diluted earnings per share:
- $1.42 for the three months ended December 31, 2019, an increase of 14.5%
- $5.09 for the full year 2019, an increase of 10.7%
-
Adjusted diluted earnings per share before income taxes:
- $1.92 for the three months ended December 31, 2019, an increase of 16.4%
- $6.91 for the full year 2019, an increase of 11.5%
-
Margin:
- Pre-tax profit margin of 36.5% for the full year 2019
- Adjusted pre-tax profit margin of 38.7% for the full year 2019
-
Return on common equity:
- Pre-tax return on common equity of 14.2% for the full year 2019
- Adjusted pre-tax return on common equity of 15.4% for the full year 2019
Highlights
- Since our inception in 2010, we have built a leasing platform in size and scale exceeding $50 billion, consisting of approximately $22 billion in assets, $27 billion in aircraft orders and $3 billion in managed aircraft.
- During the fourth quarter of 2019, we took delivery of 11 aircraft from our order book and purchased one aircraft from the secondary market, representing $825 million in aircraft investments. As of December 31, 2019, we owned 292 aircraft in our operating lease portfolio, with a net book value of $18.7 billion, a weighted average age of 3.5 years and a weighted average lease term remaining of 7.2 years.
- Finalized agreements to purchase an additional 102 aircraft comprised of 25 Airbus A321neo aircraft, 27 Airbus A321neo XLR and 50 Airbus A220 aircraft, with a purchase option for an additional 25 Airbus A220 aircraft.
- Entered into 145 leases, lease extensions and letters of intent in 2019, ending the year with a customer base of 106 airlines in 59 countries.
- To date, we placed 89% of our contracted order book positions on long-term leases for aircraft delivering through 2021 and 79% through 2022.
- Ended the year with $29.1 billion in committed minimum future rental payments consisting of $14.1 billion in contracted minimum rental payments on the aircraft in our existing fleet and $15.0 billion in minimum future rental payments related to aircraft on order.
- Issued approximately $3.2 billion of senior unsecured medium-term notes in 2019 and ended the year with total liquidity of $6.3 billion.
- Declared a quarterly cash dividend of $0.15 per share on our outstanding common stock for the fourth quarter of 2019. The dividend will be paid on April 8, 2020 to holders of record of our common stock as of March 20, 2020.
“I am extremely proud of Air Lease’s achievements in 2019 – our owned, managed, and on-order fleet now exceeds $50 billion, which is especially significant considering we are celebrating ALC’s tenth anniversary this month. 20% revenue growth, mid-teens ROE, and 37% pre-tax profit margin in 2019 reflect the strength and stability of our business. I commend the entire ALC team on our first ten years of success, and look forward to our next ten years,” said John L. Plueger, Chief Executive Officer and President.
“Reflecting back to our start in February of 2010, we had no aircraft in our fleet but a clear vision of what we could achieve, and I’m pleased to say we’ve exceeded our expectations. ALC’s accomplishments represent our long term view of how to manage our company, and provide strong returns to our shareholders, through all conditions and environments, and gives us strong confidence in our future,” said Steven F. Udvar-Házy, Executive Chairman of the Board.
The following table summarizes our operating results for the three and twelve months ended December 31, 2019 and 2018 (in thousands, except per share amounts and percentages):
|
|
|||||||||||||||||||||||
|
|
|
Three Months Ended |
|
Twelve Months Ended |
|
||||||||||||||||||
|
|
|
2019 |
|
2018 |
|
$ change |
|
% change |
|
2019 |
|
2018 |
|
$ change |
|
% change |
|
||||||
|
Revenues |
|
$ |
548,556 |
|
$ |
449,981 |
|
$ |
98,575 |
|
21.9 |
% |
$ |
2,016,904 |
|
$ |
1,679,702 |
|
$ |
337,202 |
|
20.1 |
% |
|
Income before taxes |
|
$ |
206,417 |
|
$ |
172,028 |
|
$ |
34,389 |
|
20.0 |
% |
$ |
735,685 |
|
$ |
640,138 |
|
$ |
95,547 |
|
14.9 |
% |
|
Net income available to common stockholders |
|
$ |
161,092 |
|
$ |
138,399 |
|
$ |
22,693 |
|
16.4 |
% |
$ |
575,163 |
|
$ |
510,835 |
|
$ |
64,328 |
|
12.6 |
% |
|
Adjusted net income before income taxes(1) |
|
$ |
218,747 |
|
$ |
184,816 |
|
$ |
33,931 |
|
18.4 |
% |
$ |
781,163 |
|
$ |
690,322 |
|
$ |
90,841 |
|
13.2 |
% |
|
Diluted earnings per share |
|
$ |
1.42 |
|
$ |
1.24 |
|
$ |
0.18 |
|
14.5 |
% |
$ |
5.09 |
|
$ |
4.60 |
|
$ |
0.49 |
|
10.7 |
% |
|
Adjusted diluted earnings per share before income taxes(1) |
|
$ |
1.92 |
|
$ |
1.65 |
|
$ |
0.27 |
|
16.4 |
% |
$ |
6.91 |
|
$ |
6.20 |
|
$ |
0.71 |
|
11.5 |
% |
| (1) |
Adjusted net income before income taxes and adjusted diluted earnings per share before income taxes 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 Income included in this earnings release for a discussion of the non-GAAP measures adjusted net income before income taxes and adjusted diluted earnings per share before income taxes and a reconciliation to their most comparable GAAP financial measures. |
Flight Equipment Portfolio
Our owned fleet grew by 19.1% to a net book value of $18.7 billion as of December 31, 2019 compared to $15.7 billion as of December 31, 2018. As of December 31, 2019, our fleet was comprised of 292 owned aircraft in our operating lease portfolio, with a weighted-average age and remaining lease term of 3.5 years and 7.2 years, respectively, and 83 managed aircraft. We have a globally diversified customer base of 106 airlines in 59 countries.
During the quarter ended December 31, 2019, we took delivery of 11 new aircraft and purchased one aircraft from the secondary market, sold 19 aircraft and transferred eight aircraft to flight equipment held for sale which is included in Other assets on the Consolidated Balance Sheet.
The following table summarizes the key portfolio metrics of our fleet as of December 31, 2019 and 2018:
|
|
|||||||
|
|
|
December 31, 2019 |
|
December 31, 2018 |
|
||
|
Aggregate fleet net book value |
|
$ |
18.7 billion |
|
$ |
15.7 billion |
|
|
Weighted-average fleet age(1) |
|
|
3.5 years |
|
|
3.8 years |
|
|
Weighted-average remaining lease term(1) |
|
|
7.2 years |
|
|
6.8 years |
|
|
|
|
|
|
|
|
|
|
|
Owned fleet(2) |
|
|
292 |
|
|
275 |
|
|
Managed fleet(2) |
|
|
83 |
|
|
61 |
|
|
Aircraft on order |
|
|
413 |
|
|
372 |
|
|
Aircraft purchase options(3) |
|
|
70 |
|
|
50 |
|
|
Total |
|
|
858 |
|
|
758 |
|
|
|
|
|
|
|
|
|
|
|
Current fleet contracted rentals |
|
$ |
14.1 billion |
|
$ |
11.8 billion |
|
|
Committed fleet rentals |
|
$ |
15.0 billion |
|
$ |
13.9 billion |
|
|
Total committed rentals |
|
$ |
29.1 billion |
|
$ |
25.7 billion |
|
|
(1) |
|
Weighted-average fleet age and remaining lease term calculated based on net book value of our operating lease portfolio. |
|
(2) |
|
As of December 31, 2019, we transferred eight aircraft to flight equipment held for sale which is included in Other assets on the Consolidated Balance Sheet. All of these aircraft are excluded from the owned fleet count and included in our managed fleet count. |
|
(3) |
|
As of December 31, 2019, we had options to acquire up to 45 Boeing 737-8 MAX aircraft and up to 25 Airbus A220 aircraft. As of December 31, 2018, we had options to acquire up to five Airbus A350-1000 aircraft and 45 Boeing 737-8 MAX aircraft. |
The following table details the region concentration of our flight equipment subject to operating leases:
|
|
|
|
|
|
|
|
|
|
December 31, 2019 |
|
December 31, 2018 |
|
|
Region |
|
% of Net Book Value |
|
% of Net Book Value(1) |
|
|
Europe |
|
29.0 |
% |
29.9 |
% |
|
Asia (excluding China) |
|
26.7 |
% |
24.5 |
% |
|
China |
|
15.7 |
% |
17.0 |
% |
|
The Middle East and Africa |
|
12.0 |
% |
12.4 |
% |
|
Central America, South America, and Mexico |
|
6.0 |
% |
6.9 |
% |
|
U.S. and Canada |
|
5.3 |
% |
4.8 |
% |
|
Pacific, Australia, and New Zealand |
|
5.3 |
% |
4.5 |
% |
|
Total |
|
100.0 |
% |
100.0 |
% |
|
(1) |
As of December 31, 2018, we had six aircraft held for sale included in the calculations in the table above. |
The following table details the composition of our flight equipment subject to operating leases by aircraft type:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2019 |
|
December 31, 2018 |
|
||||
|
Aircraft type |
|
Number |
|
% of Total |
|
Number of |
|
% of Total |
|
|
Airbus A319-100 |
|
1 |
|
0.3 |
% |
1 |
|
0.4 |
% |
|
Airbus A320-200 |
|
21 |
|
7.2 |
% |
35 |
|
12.7 |
% |
|
Airbus A320-200neo |
|
13 |
|
4.5 |
% |
6 |
|
2.2 |
% |
|
Airbus A321-200 |
|
28 |
|
9.6 |
% |
34 |
|
12.4 |
% |
|
Airbus A321-200neo |
|
35 |
|
12.0 |
% |
14 |
|
5.1 |
% |
|
Airbus A330-200 |
|
12 |
|
4.1 |
% |
15 |
|
5.4 |
% |
|
Airbus A330-300 |
|
7 |
|
2.4 |
% |
5 |
|
1.8 |
% |
|
Airbus A330-900neo |
|
7 |
|
2.4 |
% |
1 |
|
0.4 |
% |
|
Airbus A350-900 |
|
10 |
|
3.4 |
% |
6 |
|
2.2 |
% |
|
Boeing 737-700 |
|
4 |
|
1.4 |
% |
4 |
|
1.4 |
% |
|
Boeing 737-800 |
|
85 |
|
29.1 |
% |
98 |
|
35.6 |
% |
|
Boeing 737-8 MAX |
|
15 |
|
5.1 |
% |
14 |
|
5.1 |
% |
|
Boeing 767-300ER |
|
1 |
|
0.3 |
% |
1 |
|
0.4 |
% |
|
Boeing 777-200ER |
|
1 |
|
0.3 |
% |
1 |
|
0.4 |
% |
|
Boeing 777-300ER |
|
24 |
|
8.2 |
% |
24 |
|
8.7 |
% |
|
Boeing 787-9 |
|
23 |
|
8.0 |
% |
15 |
|
5.4 |
% |
|
Boeing 787-10 |
|
4 |
|
1.4 |
% |
— |
|
0.0 |
% |
|
Embraer E190 |
|
1 |
|
0.3 |
% |
1 |
|
0.4 |
% |
|
Total |
|
292 |
|
100.0 |
% |
275 |
|
100.0 |
% |
|
(1) |
|
As of December 31, 2018, we had six aircraft held for sale included in the table above. |
Debt Financing Activities
We ended the fourth quarter of 2019 with total debt financing, net of discounts and issuance costs, of $13.6 billion, resulting in a debt to equity ratio of 2.41:1.
Our debt financing was comprised of unsecured debt of $13.3 billion and such unsecured debt represented 96.6% of our debt portfolio as of December 31, 2019 as compared to 96.5% as of December 31, 2018. Our fixed rate debt represented 88.4% of our debt portfolio as of December 31, 2019 as compared to 86.4% as of December 31, 2018. Our composite cost of funds decreased to 3.34% as of December 31, 2019 as compared to 3.46% as of December 31, 2018.
In December 2019, the Company issued Canadian dollar ("C$") denominated debt of C$400.0 million in aggregate principal amount of 2.625% notes due 2024. The Company effectively hedged its foreign currency exposure on this transaction through a cross-currency swap that converts the borrowing rate to a fixed 2.535% U.S. dollar denominated rate.
Our debt financing was comprised of the following at December 31, 2019 and December 31, 2018 (in thousands, except percentages):
|
|
|||||||
|
|
|
December 31, |
|
December 31, |
|
||
|
Unsecured |
|
|
|
|
|
|
|
|
Senior notes |
|
$ |
12,357,811 |
|
$ |
10,043,445 |
|
|
Term financings |
|
|
883,050 |
|
|
607,340 |
|
|
Revolving credit facilities |
|
|
20,000 |
|
|
602,000 |
|
|
Total unsecured debt financing |
|
|
13,260,861 |
|
|
11,252,785 |
|
|
Secured |
|
|
|
|
|
|
|
|
Term financings |
|
|
428,824 |
|
|
371,203 |
|
|
Export credit financing |
|
|
31,610 |
|
|
38,265 |
|
|
Total secured debt financing |
|
|
460,434 |
|
|
409,468 |
|
|
|
|
|
|
|
|
|
|
|
Total debt financing |
|
|
13,721,295 |
|
|
11,662,253 |
|
|
Less: Debt discounts and issuance costs |
|
|
(142,429) |
|
|
(123,348) |
|
|
Debt financing, net of discounts and issuance costs |
|
$ |
13,578,866 |
|
$ |
11,538,905 |
|
|
Selected interest rates and ratios: |
|
|
|
|
|
|
|
|
Composite interest rate(1) |
|
|
3.34 |
% |
|
3.46 |
% |
|
Composite interest rate on fixed rate debt(1) |
|
|
3.39 |
% |
|
3.42 |
% |
|
Percentage of total debt at fixed rate |
|
|
88.40 |
% |
|
86.41 |
% |
|
(1) |
|
This rate does not include the effect of upfront fees, facility fees, undrawn fees or amortization of debt discounts and issuance costs. |
Conference Call
In connection with this earnings release, Air Lease Corporation will host a conference call on February 14, 2020 at 4:30 PM Eastern Time to discuss the Company's financial results for the fourth quarter and year end 2019.
Investors can participate in the conference call by dialing (855) 308-8321 domestic or (330) 863-3465 international. The passcode for the call is 5634829.
The conference call will also be broadcast live through a link on the Investor Relations 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 Investor Relations page of the Air Lease Corporation website.
For your convenience, the conference call can be replayed in its entirety beginning at 7:30 PM ET on February 14, 2020 until 7:30 PM ET on February 21, 2020. If you wish to listen to the replay of this conference call, please dial (855) 859-2056 domestic or (404) 537-3406 international and enter passcode 5634829.
About Air Lease Corporation (NYSE: AL)
Air Lease Corporation is a leading aircraft leasing company based in Los Angeles, California that has airline customers throughout the world. ALC and its team of dedicated and experienced professionals are principally engaged in purchasing commercial aircraft and leasing them to its airline customers worldwide through customized aircraft leasing and financing solutions. ALC routinely posts information that may be important to investors in the “Investors” section of ALC’s website at www.airleasecorp.com. Investors and potential investors are encouraged to consult the ALC website regularly for important information about ALC. The information contained on, or that may be accessed through, ALC’s website is not incorporated by reference into, and is not a part of, this press release.
Forward-Looking Statements
Statements in this press release that are not historical facts are hereby identified as “forward-looking statements,” including any statements about our expectations, beliefs, plans, predictions, forecasts, objectives, assumptions or future events or performance. These statements are often, but not always, made through the use of words or phrases such as “anticipate,” “believes,” “can,” “could,” “may,” “predicts,” “potential,” “should,” “will,” “estimate,” “plans,” “projects,” “continuing,” “ongoing,” “expects,” “seeks,” “intends” and similar words or phrases. These statements are only predictions and involve estimates, known and unknown risks, assumptions and uncertainties that could cause actual results to differ materially from those expressed in such statements, including as a result of the following factors, among others:
- our inability to obtain additional financing on favorable terms, if required, to complete the acquisition of sufficient aircraft as currently contemplated or to fund the operations and growth of our business;
- our inability to obtain refinancing prior to the time our debt matures;
- our inability to make acquisitions of, or lease, aircraft on favorable terms;
- our inability to sell aircraft on favorable terms or to predict the timing of such sales;
- impaired financial condition and liquidity of our lessees;
- changes in overall demand for commercial aircraft leasing and aircraft management services;
- deterioration of economic conditions in the commercial aviation industry generally;
- potential natural disasters and terrorist attacks and the amount of our insurance coverage, if any, relating thereto;
- increased maintenance, operating or other expenses or changes in the timing thereof;
- changes in the regulatory environment, including tariffs and other restrictions on trade;
- our inability to effectively oversee our managed fleet;
- the failure of any manufacturer to meet its contractual aircraft delivery obligations to us, including or as a result of technical or other difficulties with aircraft before or after delivery, resulting in our inability to deliver the aircraft to our lessees; and
- the factors discussed under “Part I – Item 1A. Risk Factors,” in our Annual Report on Form 10-K for the year ended December 31, 2019, and other SEC filings, including future SEC filings.
All forward-looking statements are necessarily only estimates of future results, and there can be no assurance that actual results will not differ materially from expectations. You are therefore cautioned not to place undue reliance on such statements. Any forward-looking statement speaks only as of the date on which it is made, and we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events.
|
Air Lease Corporation and Subsidiaries CONSOLIDATED BALANCE SHEETS (In thousands, except share and par value amounts) |
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2019 |
|
December 31, 2018 |
|
||
|
Assets |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
317,488 |
|
$ |
300,127 |
|
|
Restricted cash |
|
|
20,573 |
|
|
22,871 |
|
|
Flight equipment subject to operating leases |
|
|
21,286,154 |
|
|
17,985,324 |
|
|
Less accumulated depreciation |
|
|
(2,581,817) |
|
|
(2,278,214) |
|
|
|
|
|
18,704,337 |
|
|
15,707,110 |
|
|
Deposits on flight equipment purchases |
|
|
1,564,188 |
|
|
1,809,260 |
|
|
Other assets |
|
|
1,102,569 |
|
|
642,440 |
|
|
Total assets |
|
$ |
21,709,155 |
|
$ |
18,481,808 |
|
|
Liabilities and Shareholders’ Equity |
|
|
|
|
|
|
|
|
Accrued interest and other payables |
|
$ |
516,497 |
|
$ |
382,132 |
|
|
Debt financing, net of discounts and issuance costs |
|
|
13,578,866 |
|
|
11,538,905 |
|
|
Security deposits and maintenance reserves on flight equipment leases |
|
|
1,097,061 |
|
|
990,578 |
|
|
Rentals received in advance |
|
|
143,692 |
|
|
119,526 |
|
|
Deferred tax liability |
|
|
749,495 |
|
|
643,767 |
|
|
Total liabilities |
|
$ |
16,085,611 |
|
$ |
13,674,908 |
|
|
Shareholders’ Equity |
|
|
|
|
|
|
|
|
Preferred Stock, $0.01 par value; 50,000,000 shares authorized; 10,000,000 shares of 6.150% Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series A (aggregate liquidation preference of $250,000) issued and outstanding at December 31, 2019 and no shares issued or outstanding at December 31, 2018 |
|
|
100 |
|
|
— |
|
|
Class A common stock, $0.01 par value; 500,000,000 shares authorized; 113,350,267 and 110,949,850 shares issued and outstanding at December 31, 2019 and December 31, 2018, respectively |
|
|
1,134 |
|
|
1,110 |
|
|
Class B Non-Voting common stock, $0.01 par value; authorized 10,000,000 shares; no shares issued or outstanding |
|
|
— |
|
|
— |
|
|
Paid-in capital |
|
|
2,777,601 |
|
|
2,474,238 |
|
|
Retained earnings |
|
|
2,846,106 |
|
|
2,331,552 |
|
|
Accumulated other comprehensive loss |
|
$ |
(1,397) |
|
$ |
— |
|
|
Total shareholders’ equity |
|
$ |
5,623,544 |
|
$ |
4,806,900 |
|
|
Total liabilities and shareholders’ equity |
|
$ |
21,709,155 |
|
$ |
18,481,808 |
|
|
Air Lease Corporation and Subsidiaries CONSOLIDATED STATEMENTS OF INCOME (In thousands, except share and per share amounts and percentages) |
|||||||||||||
|
|
|||||||||||||
|
|
|
Three Months Ended |
|
Twelve Months Ended |
|
||||||||
|
|
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|
||||
|
|
|
(unaudited) |
|
||||||||||
|
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rental of flight equipment |
|
$ |
504,391 |
|
$ |
437,096 |
|
$ |
1,916,869 |
|
$ |
1,631,200 |
|
|
Aircraft sales, trading and other |
|
|
44,165 |
|
|
12,885 |
|
|
100,035 |
|
|
48,502 |
|
|
Total revenues |
|
|
548,556 |
|
|
449,981 |
|
|
2,016,904 |
|
|
1,679,702 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest |
|
|
106,639 |
|
|
85,442 |
|
|
397,320 |
|
|
310,026 |
|
|
Amortization of debt discounts and issuance costs |
|
|
10,361 |
|
|
8,475 |
|
|
36,691 |
|
|
32,706 |
|
|
Interest expense |
|
|
117,000 |
|
|
93,917 |
|
|
434,011 |
|
|
342,732 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation of flight equipment |
|
|
187,862 |
|
|
153,548 |
|
|
702,810 |
|
|
581,985 |
|
|
Selling, general and administrative |
|
|
31,465 |
|
|
26,175 |
|
|
123,653 |
|
|
97,369 |
|
|
Stock-based compensation |
|
|
5,812 |
|
|
4,313 |
|
|
20,745 |
|
|
17,478 |
|
|
Total expenses |
|
|
342,139 |
|
|
277,953 |
|
|
1,281,219 |
|
|
1,039,564 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before taxes |
|
|
206,417 |
|
|
172,028 |
|
|
735,685 |
|
|
640,138 |
|
|
Income tax expense |
|
|
(41,482) |
|
|
(33,629) |
|
|
(148,564) |
|
|
(129,303) |
|
|
Net income |
|
|
164,935 |
|
|
138,399 |
|
|
587,121 |
|
|
510,835 |
|
|
Preferred stock dividends |
|
|
(3,843) |
|
|
— |
|
|
(11,958) |
|
|
— |
|
|
Net income available to common stockholders |
|
$ |
161,092 |
|
$ |
138,399 |
|
$ |
575,163 |
|
$ |
510,835 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per share of common stock: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
1.43 |
|
$ |
1.29 |
|
$ |
5.14 |
|
$ |
4.88 |
|
|
Diluted |
|
$ |
1.42 |
|
$ |
1.24 |
|
$ |
5.09 |
|
$ |
4.60 |
|
|
Weighted-average shares of common stock outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
113,033,348 |
|
|
107,017,743 |
|
|
111,895,433 |
|
|
104,716,301 |
|
|
Diluted |
|
|
113,728,058 |
|
|
112,325,696 |
|
|
113,086,323 |
|
|
112,363,331 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other financial data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-tax profit margin |
|
|
37.6 |
% |
|
38.2 |
% |
|
36.5 |
% |
|
38.1 |
% |
|
Adjusted net income before income taxes(1) |
|
$ |
218,747 |
|
$ |
184,816 |
|
$ |
781,163 |
|
$ |
690,322 |
|
|
Adjusted pre-tax profit margin(1) |
|
|
39.9 |
% |
|
41.1 |
% |
|
38.7 |
% |
|
41.1 |
% |
|
Adjusted diluted earnings per share before income taxes(1)(2) |
|
$ |
1.92 |
|
$ |
1.65 |
|
$ |
6.91 |
|
$ |
6.20 |
|
|
Pre-tax return on common equity (trailing twelve months) |
|
|
14.2 |
% |
|
14.3 |
% |
|
14.2 |
% |
|
14.3 |
% |
|
Adjusted pre-tax return on common equity (trailing twelve months)(1) |
|
|
15.4 |
% |
|
15.5 |
% |
|
15.4 |
% |
|
15.5 |
% |
|
(1) |
Adjusted net income before income taxes (defined as net income available 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 profit 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 plus assumed conversions 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 available to common stockholders, pre-tax profit 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 profit 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 profit 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 profit 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 profit 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 profit 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 profit 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 tables show the reconciliation of net income available to common stockholders to adjusted net income before income taxes and adjusted pre-tax profit margin (in thousands, except percentages): |
|
|
|
Three Months Ended |
|
Twelve Months Ended |
|
||||||||
|
|
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|
||||
|
|
|
(unaudited) |
|
||||||||||
|
Reconciliation of net income available to common stockholders to adjusted net income before income taxes and adjusted pre-tax profit margin: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income available to common stockholders |
|
$ |
161,092 |
|
$ |
138,399 |
|
$ |
575,163 |
|
$ |
510,835 |
|
|
Amortization of debt discounts and issuance costs |
|
|
10,361 |
|
|
8,475 |
|
|
36,691 |
|
|
32,706 |
|
|
Stock-based compensation |
|
|
5,812 |
|
|
4,313 |
|
|
20,745 |
|
|
17,478 |
|
|
Provision for income taxes |
|
|
41,482 |
|
|
33,629 |
|
|
148,564 |
|
|
129,303 |
|
|
Adjusted net income before income taxes |
|
$ |
218,747 |
|
$ |
184,816 |
|
$ |
781,163 |
|
$ |
690,322 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues |
|
$ |
548,556 |
|
$ |
449,981 |
|
$ |
2,016,904 |
|
$ |
1,679,702 |
|
|
Adjusted pre-tax profit margin |
|
|
39.9 |
% |
|
41.1 |
% |
|
38.7 |
% |
|
41.1 |
% |
The following table shows the reconciliation of net income available to common stockholders to adjusted diluted earnings per share before income taxes (in thousands, except share and per share amounts):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
|
||||||||
|
|
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|
||||
|
|
|
(unaudited) |
|
||||||||||
|
Reconciliation of net income available to common stockholders to adjusted diluted earnings per share before income taxes: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income available to common stockholders |
|
$ |
161,092 |
|
$ |
138,399 |
|
$ |
575,163 |
|
$ |
510,835 |
|
|
Amortization of debt discounts and issuance costs |
|
|
10,361 |
|
|
8,475 |
|
|
36,691 |
|
|
32,706 |
|
|
Stock-based compensation |
|
|
5,812 |
|
|
4,313 |
|
|
20,745 |
|
|
17,478 |
|
|
Provision for income taxes |
|
|
41,482 |
|
|
33,629 |
|
|
148,564 |
|
|
129,303 |
|
|
Adjusted net income before income taxes |
|
$ |
218,747 |
|
$ |
184,816 |
|
$ |
781,163 |
|
$ |
690,322 |
|
|
Assumed conversion of convertible senior notes |
|
|
— |
|
|
914 |
|
|
— |
|
|
6,219 |
|
|
Adjusted net income before income taxes plus assumed conversions |
|
$ |
218,747 |
|
$ |
185,730 |
|
$ |
781,163 |
|
$ |
696,541 |
|
|
Weighted-average diluted shares of common stock outstanding |
|
|
113,728,058 |
|
|
112,325,696 |
|
|
113,086,323 |
|
|
112,363,331 |
|
|
Adjusted diluted earnings per share before income taxes |
|
$ |
1.92 |
|
$ |
1.65 |
|
$ |
6.91 |
|
$ |
6.20 |
|
The following table shows the reconciliation of net income available to common stockholders to adjusted pre-tax return on common equity (in thousands, except percentages):
|
|
|||||||
|
|
|
Twelve Months |
|
||||
|
|
|
2019 |
|
2018 |
|
||
|
|
|
(unaudited) |
|
||||
|
Reconciliation of net income available to common stockholders to adjusted pre-tax return on common equity: |
|
|
|
|
|
|
|
|
Net income available to common stockholders |
|
$ |
575,163 |
|
$ |
510,835 |
|
|
Amortization of debt discounts and issuance costs |
|
|
36,691 |
|
|
32,706 |
|
|
Stock-based compensation |
|
|
20,745 |
|
|
17,478 |
|
|
Provision for income taxes |
|
|
148,564 |
|
|
129,303 |
|
|
Adjusted net income before income taxes |
|
$ |
781,163 |
|
$ |
690,322 |
|
|
|
|
|
|
|
|
|
|
|
Common shareholders' equity as of the beginning of the period |
|
$ |
4,806,900 |
|
$ |
4,127,442 |
|
|
Common shareholders' equity as of the end of the period |
|
$ |
5,373,544 |
|
$ |
4,806,900 |
|
|
Average common shareholders' equity |
|
$ |
5,090,222 |
|
$ |
4,467,171 |
|
|
|
|
|
|
|
|
|
|
|
Adjusted pre-tax return on common equity |
|
|
15.4 |
% |
|
15.5 |
% |
|
Air Lease Corporation and Subsidiaries CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) |
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended |
|
||||
|
|
|
2019 |
|
2018 |
|
||
|
|
|
(unaudited) |
|
||||
|
Operating Activities |
|
|
|
|
|
|
|
|
Net income |
|
$ |
587,121 |
|
$ |
510,835 |
|
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
|
|
|
|
Depreciation of flight equipment |
|
|
702,810 |
|
|
581,985 |
|
|
Stock-based compensation |
|
|
20,745 |
|
|
17,478 |
|
|
Deferred taxes |
|
|
92,049 |
|
|
129,303 |
|
|
Amortization of prepaid lease costs |
|
|
32,849 |
|
|
24,579 |
|
|
Amortization of discounts and debt issuance costs |
|
|
36,691 |
|
|
32,706 |
|
|
Gain on aircraft sales, trading and other activity |
|
|
(81,994) |
|
|
(34,442) |
|
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
|
Other assets |
|
|
(161,302) |
|
|
(74,223) |
|
|
Accrued interest and other payables |
|
|
139,337 |
|
|
51,175 |
|
|
Rentals received in advance |
|
|
24,166 |
|
|
14,705 |
|
|
Net cash provided by operating activities |
|
|
1,392,472 |
|
|
1,254,101 |
|
|
Investing Activities |
|
|
|
|
|
|
|
|
Acquisition of flight equipment under operating lease |
|
|
(3,663,605) |
|
|
(2,512,582) |
|
|
Payments for deposits on flight equipment purchases |
|
|
(884,459) |
|
|
(976,101) |
|
|
Proceeds from aircraft sales, trading and other activity |
|
|
995,345 |
|
|
391,372 |
|
|
Acquisition of aircraft furnishings, equipment and other assets |
|
|
(291,258) |
|
|
(287,509) |
|
|
Net cash used in investing activities |
|
|
(3,843,977) |
|
|
(3,384,820) |
|
|
Financing Activities |
|
|
|
|
|
|
|
|
Issuance of common stock upon exercise of options and warrants |
|
|
44,885 |
|
|
4,826 |
|
|
Issuance of preferred stock |
|
|
242,130 |
|
|
— |
|
|
Cash dividends paid on Class A common stock |
|
|
(58,026) |
|
|
(41,563) |
|
|
Preferred dividends paid |
|
|
(11,958) |
|
|
— |
|
|
Tax withholdings on stock-based compensation |
|
|
(4,272) |
|
|
(7,548) |
|
|
Net change in unsecured revolving facilities |
|
|
(582,000) |
|
|
(245,000) |
|
|
Proceeds from debt financings |
|
|
3,567,728 |
|
|
3,533,885 |
|
|
Payments in reduction of debt financings |
|
|
(978,369) |
|
|
(1,270,505) |
|
|
Debt issuance costs |
|
|
(11,280) |
|
|
(11,475) |
|
|
Security deposits and maintenance reserve receipts |
|
|
310,220 |
|
|
242,524 |
|
|
Security deposits and maintenance reserve disbursements |
|
|
(52,490) |
|
|
(59,709) |
|
|
Net cash provided by financing activities |
|
|
2,466,568 |
|
|
2,145,435 |
|
|
Net increase in cash |
|
|
15,063 |
|
|
14,716 |
|
|
Cash, cash equivalents and restricted cash at beginning of period |
|
|
322,998 |
|
|
308,282 |
|
|
Cash, cash equivalents and restricted cash at end of period |
|
$ |
338,061 |
|
$ |
322,998 |
|
|
Supplemental Disclosure of Cash Flow Information |
|
|
|
|
|
|
|
|
Cash paid during the period for interest, including capitalized interest of $59,358 and $52,817 at December 31, 2019 and 2018, respectively |
|
$ |
442,132 |
|
$ |
332,426 |
|
|
Cash paid for income taxes |
|
$ |
16,657 |
|
$ |
4,264 |
|
|
Supplemental Disclosure of Noncash Activities |
|
|
|
|
|
|
|
|
Buyer furnished equipment, capitalized interest, deposits on flight equipment purchases and seller financing applied to acquisition of flight equipment and other assets applied to payments for deposits on flight equipment purchases |
|
$ |
1,399,136 |
|
$ |
912,075 |
|
|
Cash dividends declared, not yet paid |
|
$ |
17,003 |
|
$ |
14,421 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20200214005463/en/