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Air Lease Corporation Announces

The following excerpt is from the company's SEC filing.

Quarter 2015 Results

Los Angeles, California, November 5, 2015

— Air Lease Corporation (ALC) (NYSE: AL) announced today financial results for the three and nine months ended September 30, 2015. Items of note included:

Diluted EPS increased 22% to $0.71 for the three months ended September 30, 2015 as compared to $0.58 for the three months ended September 30, 2014.

Adjusted diluted EPS increased 21% to $1.20 for the three months ended September 30, 2015 as compared to $0.99 for the three months ended September 30, 2014.

Revenues increased 20% to $313 million for the three month s ended September 30, 2015 as compared to $262 million for the three months ended September 30, 2014.

Income before taxes increased 24% to $120 million with a pretax margin of 38% for the three months ended September 30, 2015 as compared to $96 million with a pretax margin of 37% for the three months ended September 30, 2014.

Market demand remains strong for our aircraft and order b

ook. We are 94

% placed through 2017 and have maintained 100% utilization of our current fleet across a diverse customer base of 89 airlines in 50 countries.

In October 2015, Standard & Poor's Ratings Services revised its outlook on ALC to positive from stable and affirmed all ratings on ALC, including its 'BBB-' corporate credit rating.

In August 2015, we completed a senior unsecured notes offering of $500 million due 2018 at 2.625%.

In September 2015, we entered into an agreement to increase the capacity of our Syndicated Unsecured Revolving Credit Facility by $90 million to $2.8 billion.

Increased our

annual cash

dividend

by 25%, from $0.16 per share per annum to $0.20 per share per annum.

next quarterly

of $0.05 per share

will be paid on January 6, 2016 to holders of record of our common stock

December 14, 2015.

The following table summarizes the results for the three and nine months ended September 30, 2015 and 2014 (in thousands, except share amounts):

Three Months Ended

Nine Months Ended

$ change

% change

313,126

261,939

51,187

19.5

896,143

764,549

131,594

17.2

119,587

96,277

23,310

24.2

267,725

286,666

(18,941)

(6.6)

Net income

77,042

62,433

14,609

23.4

172,492

185,867

(13,375)

(7.2)

0.71

0.58

0.13

22.4

1.60

1.73

(0.13)

(7.5)

Adjusted income before taxes

131,654

107,582

24,072

374,879

319,790

55,089

1.20

0.99

0.21

21.2

3.43

2.95

0.48

16.3

Adjusted net income and adjusted diluted earnings per share have been adjusted to exclude the effects of certain non-cash items, one-time or non-recurring items, such as settlement expense, 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 and adjusted diluted EPS.

ALC continued to execute its long-term business plan delivering a 38% pretax

profit margin, a 24% increase in our pretax income and a

20% increase in our revenues compared to the third quarter of 2014.

The consistency of these results along with our strong credit metrics will continue to benefit ALC’s capital raising

and competitive position

. Recognizing ALC's continuing

performance, our Board authorized an increase in ALC's quarterly dividend to $0.0

,” said Steven F. Udvar-H

zy, Chairman and Chief Executive Officer of Air Lease Corporation.

Continued p

ositive global passenger traffic trends

generate

robust demand for aircraft in our order book and maintain

values of our used aircraft.

This year to date, ALC has added 17 new customers and signed 67 lease agreements.

Airline customer demand for both the modern narrowbody and widebody aircraft in our fleet remains healthy and we see stability in the market for aircraft pricing as evidenced by our aircraft sales

to date and what we see in our forward deal pipeline,

” said John L. Plueger, President and Chief Operating Officer of Air Lease Corporation.

Flight Equipment Portfolio

As of September 30, 2015, we owned 235 aircraft in our operating lease portfolio and we leased the aircraft to a globally diversified customer base of 89 airlines in 50 countries. During the quarter ended September 30, 2015, we took delivery of nine aircraft from our order book and acquired three incremental aircraft. In addition, we sold four aircraft, which were

previously

classified as held for sale as of June 30, 2015. We

added two aircraft to our managed fleet ending the quarter with 26 aircraft managed for third parties.

Below are portfolio metrics of our fleet as of

30, 2015 and December 31, 2014:

September 30, 2015

December 31, 2014

Owned fleet

235

213

Managed fleet

17

Weighted-average fleet age

3.5 years

Weighted-average remaining lease term

7.3 years

Aggregate fleet net book value

10.4 billion

9.0 billion

Weighted-average fleet age and remaining lease term calculated based on net book value of ALC's owned fleet.

The following table sets forth the percentage of net book value of our aircraft portfolio in the indicated regions as of

Region

% of Net Book Value

43.2

42.9

Europe

29.7

33.0

The Middle East and Africa

10.0

5.6

Central America, South America and Mexico

9.0

8.7

Pacific, Australia, New Zealand

4.1

5.2

U.S. and Canada

4.0

4.6

100.0

The following table sets forth the number of aircraft we leased by aircraft type as of

Number of

Aircraft type

% of Total

Airbus A319/320/321

69

29.4

64

30.0

Airbus A330-200/300

8.9

9.8

Boeing 737-700/800

83

35.3

32.4

Boeing 767-300ER

0.4

0.5

Boeing 777-200/300ER

16

6.8

4.7

Embraer E175/190

11.1

30

14.1

ATR 42/72-600

19

8.1

18

8.5

Debt Financing Activities

We ended the

quarter of 2015 with total debt, net of discounts and issuance costs, of $7.

billion as compared to $6.6 billion as of December 31, 2014. Total debt was comprised of $6.

billion of...


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