ALC Q2 results

Victoria
By Victoria August 10, 2012 14:03

ALC Q2 results

Air Lease Corporation has reported a second quarter of consecutive fleet, profitability and financing growth.
Diluted EPS increased 250% to $0.28 per share in the second quarter of 2012 compared to $0.08 in the second quarter of 2011. Diluted EPS increased 315% to $0.54 per share for the six months ended June 30, 2012 compared to $0.13 per share for the six months ended June 30, 2011.
The lessor ordered 100 737-8/9 MAX aircraft, 25 of which are subject to reconfirmation, during the period.
ALC announced its largest placements to date with premier carriers, including 18 new aircraft with China Southern, which is its single largest lease transaction, and the placement of 13 new aircraft with Air China.
ALC lowered its composite cost of funds to 3.84% as of June 30, 2012 compared to 4.05% as of March 31, 2012. It deployed more than $950 million in capital further growing its fleet to 137 aircraft spread across a diverse and balanced customer base of 65 airlines and 37 countries.

“For our second quarter 2012 and year-to-date results, I’m pleased to announce continuing successive record results in the execution of our growth plan. During the second quarter ALC saw stable lease demand for our new aircraft positions despite financial headlines regarding Europe and potential slowing in China. With our recent launch order for the Boeing 737 MAX and the favorable economics associated with being a launch customer we have secured ALC’s core business through 2022 with a product that has strong market demand. Our lease placements continue to be in line with our expectations and we are nearing full placement of our new aircraft deliveries through 2015,” said Steven F. Udvar-Házy, Chairman and Chief Executive Officer of Air Lease Corporation.
“We announced major aircraft lease placements with Air China and China Southern, demonstrating the shift in our fleet distribution towards Asia over the next several years. Our lease terms have been trending longer, up to 12 years on both wide-body and single aisle aircraft, which locks in strong future rental revenue. Longer leases provide greater earnings visibility and less risk, with a slight tradeoff in future recognition of overhaul revenue for accounting purposes due to a higher number of reimbursable maintenance events that occur during the lease term. All of our leases are performing well. We successfully removed our single A320 from Kingfisher without incurring a credit loss and that aircraft has been re-leased,” said John L. Plueger, President and Chief Operating Officer of Air Lease Corporation.
“We continued our planned and predictable growth that has translated into increased fleet size, new customers, and rising profits. As each quarter passes, ALC is staying ahead of the financial goals laid out during our IPO. We continue to fund the company on an unsecured basis, highlighted by having successfully closed an unsecured $853 million syndicated bank facility during the quarter. Subsequently, we have grown our aggregate unsecured revolving bank facilities to $1 billion,” said Gregory B. Willis, Senior Vice President and Chief Financial Officer of Air Lease Corporation.

Victoria
By Victoria August 10, 2012 14:03
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