Air Lease Corporation posts second quarter 2016 results

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By TESTCustomwebLP TESTCustomwebLP August 6, 2016 08:20

Air Lease Corporation posts second quarter 2016 results

During the three months to end of June 2016, Air Lease Corporation (ALC) generated record quarterly revenues of $350.1 million for the three months ended June 30, 2016, an increase of 14.9% compared to $304.7 million for the three months ended June 30, 2015.

ALC’s net income was $91.8 million with a pre-tax margin of 40.6% for the quarter compared to $76.1 million with a pre-tax margin of 38.8% for the three months ended June 30, 2015. Net income before income taxes was $152.2 million with an adjusted margin of 43.7% compared to $130.4 million with an adjusted margin of 42.8% for year-ago quarter.

ALC confirmed that is has placed 91% of its order book on long-term leases for aircraft delivering through 2018 and 80% through 2019. The lessor purchased $897.4 million in aircraft during the quarter, including 13 aircraft from our order book and three incremental
aircraft.

During the reporting period, ALC entered into an agreement to sell 25 E190s and E175s aircraft to Nordic Aviation Capital, which is expected to be completed by the first quarter of 2017. ALC completed a senior unsecured notes offering in April 2016, issuing $600 million at 3.375%, maturing in 2021, as well as an amendment to its syndicated unsecured revolving credit facility increasing the capacity by approximately $350 million to $3.1 billion and extending the final maturity to May 2020 with an interest rate of LIBOR plus 1.25%.

“We had another strong quarter, with our business continuing to deliver record revenues and strong results. Our customers continue to perform well. The sale of our ATR and E-jet fleet to NAC is progressing on track. Demand for our used aircraft remains robust. We remain watchful of OEM and airline capacity discipline, and we look forward to any and all opportunities that may arise,” said John L. Plueger, Chief Executive Officer and President.

“Airlines continue to take long term views about traffic flows and fleet modernization. It has always been the case that some airlines have over-ordered and some have under-ordered. We balance this landscape by shifting jets across the global marketplace. Our strong and diverse customer base, best in class fleet of aircraft, and conservative financial structure, will serve us well in an ever evolving marketplace,” said Steven F. Udvar-Házy, Executive Chairman of the Board.

As of June 30, 2016, ALC’s fleet was comprised of 245 owned aircraft, with a weighted-average age and remaining lease term of 3.7 years and 7.0 years, respectively, and 33 managed aircraft. The lessor has a globally diversified customer base of 91 airlines in 53 countries. During the quarter ended June 30, 2016, ALC took delivery of 13 aircraft from its order book, acquired three incremental aircraft and sold 10 aircraft from its operating lease portfolio.

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By TESTCustomwebLP TESTCustomwebLP August 6, 2016 08:20