Company Quick10K Filing
Air Lease
Price42.50 EPS5
Shares113 P/E9
MCap4,814 P/FCF5
Net Debt13,563 EBIT765
TEV18,376 TEV/EBIT24
TTM 2019-09-30, in MM, except price, ratios
10-Q 2020-09-30 Filed 2020-11-09
10-Q 2020-06-30 Filed 2020-08-06
10-Q 2020-03-31 Filed 2020-05-07
10-K 2019-12-31 Filed 2020-02-14
10-Q 2019-09-30 Filed 2019-11-07
10-Q 2019-06-30 Filed 2019-08-08
10-Q 2019-03-31 Filed 2019-05-09
10-K 2018-12-31 Filed 2019-02-21
10-Q 2018-09-30 Filed 2018-11-08
10-Q 2018-06-30 Filed 2018-08-09
10-Q 2018-03-31 Filed 2018-05-10
10-K 2017-12-31 Filed 2018-02-22
10-Q 2017-09-30 Filed 2017-11-09
10-Q 2017-06-30 Filed 2017-08-03
10-Q 2017-03-31 Filed 2017-05-04
10-K 2016-12-31 Filed 2017-02-23
10-Q 2016-09-30 Filed 2016-11-03
10-Q 2016-06-30 Filed 2016-08-04
10-Q 2016-03-31 Filed 2016-05-05
10-K 2015-12-31 Filed 2016-02-25
10-Q 2015-09-30 Filed 2015-11-05
10-Q 2015-06-30 Filed 2015-08-06
10-Q 2015-03-31 Filed 2015-05-07
10-K 2014-12-31 Filed 2015-02-26
10-Q 2014-09-30 Filed 2014-11-06
10-Q 2014-06-30 Filed 2014-08-07
10-Q 2014-03-31 Filed 2014-05-08
10-K 2013-12-31 Filed 2014-02-27
10-Q 2013-09-30 Filed 2013-11-07
10-Q 2013-06-30 Filed 2013-08-08
10-Q 2013-03-31 Filed 2013-05-09
10-Q 2012-09-30 Filed 2012-11-08
10-Q 2012-06-30 Filed 2012-08-09
10-Q 2012-03-31 Filed 2012-05-14
10-K 2011-12-31 Filed 2012-03-09
10-Q 2011-09-30 Filed 2011-11-10
10-Q 2011-06-30 Filed 2011-08-12
10-Q 2011-03-31 Filed 2011-05-16
8-K 2020-11-24
8-K 2020-11-09
8-K 2020-11-09
8-K 2020-08-17
8-K 2020-08-06
8-K 2020-08-06
8-K 2020-06-24
8-K 2020-05-07
8-K 2020-05-07
8-K 2020-05-06
8-K 2020-02-14
8-K 2020-02-14
8-K 2020-01-14
8-K 2019-12-20
8-K 2019-12-17
8-K 2019-12-05
8-K 2019-11-19
8-K 2019-11-07
8-K 2019-11-07
8-K 2019-09-16
8-K 2019-08-08
8-K 2019-08-08
8-K 2019-06-05
8-K 2019-06-03
8-K 2019-05-23
8-K 2019-05-09
8-K 2019-05-09
8-K 2019-05-08
8-K 2019-05-03
8-K 2019-03-05
8-K 2019-02-26
8-K 2019-02-21
8-K 2019-02-21
8-K 2019-01-23
8-K 2019-01-08
8-K 2018-11-29
8-K 2018-11-20
8-K 2018-11-14
8-K 2018-11-08
8-K 2018-11-08
8-K 2018-11-07
8-K 2018-09-17
8-K 2018-09-10
8-K 2018-08-09
8-K 2018-08-09
8-K 2018-06-18
8-K 2018-06-11
8-K 2018-05-10
8-K 2018-05-10
8-K 2018-05-09
8-K 2018-05-02
8-K 2018-03-26
8-K 2018-02-22
8-K 2018-02-22
8-K 2018-01-16
8-K 2018-01-08
8-K 2018-01-05

AL 10Q Quarterly Report

Part I - Financial Information
Item 1.Financial Statements
Note 1. Company Background and Overview
Note 2. Basis of Preparation and Critical Accounting Policies
Note 3. Debt Financing
Note 4. Commitments and Contingencies
Note 5. Rental Income
Note 6. Earnings per Share
Note 7. Fair Value Measurements
Note 8. Shareholders' Equity
Note 9. Stock - Based Compensation
Note 10. Aircraft Under Management
Note 11. Flight Equipment Held for Sale
Note 12. Impact of Covid - 19 Pandemic
Note 13. Subsequent Events
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Item 4. Controls and Procedures
Part II - Other Information
Item 1. Legal Proceedings
Item 1A. Risk Factors
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Item 3. Defaults Upon Senior Securities
Item 4. Mine Safety Disclosures
Item 5. Other Information
Item 6. Exhibits
EX-10.1 al-20200930xex10d1.htm
EX-10.2 al-20200930xex10d2.htm
EX-10.3 al-20200930xex10d3.htm
EX-10.4 al-20200930xex10d4.htm
EX-10.5 al-20200930xex10d5.htm
EX-31.1 al-20200930xex31d1.htm
EX-31.2 al-20200930xex31d2.htm
EX-32.1 al-20200930xex32d1.htm
EX-32.2 al-20200930xex32d2.htm

Air Lease Earnings 2020-09-30

Balance SheetIncome StatementCash Flow
25201510502012201420172020
Assets, Equity
0.60.50.40.20.10.02012201420172020
Rev, G Profit, Net Income
1.10.60.1-0.5-1.0-1.52012201420172020
Ops, Inv, Fin

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2020

OR

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from         to        

Commission file number 001-35121

AIR LEASE CORPORATION

(Exact name of registrant as specified in its charter)

Delaware

    

27-1840403

(State or other jurisdiction of
incorporation or organization)

(I.R.S. Employer
Identification No.)

2000 Avenue of the Stars, Suite 1000N
Los Angeles, California

    

90067

(Address of principal executive offices)

(Zip Code)

Registrant’s telephone number, including area code: (310) 553-0555

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Class A Common Stock

AL

New York Stock Exchange

6.150% Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series A

AL PRA

New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes  No 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes   No 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act:

Large accelerated filer 

Accelerated filer 

Non-accelerated filer 

Smaller reporting company 

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes   No 

At November 6, 2020, there were 113,778,906 shares of Air Lease Corporation’s Class A common stock outstanding.

Air Lease Corporation and Subsidiaries

Form 10-Q

For the Quarterly Period Ended September 30, 2020

TABLE OF CONTENTS

Page

Note About Forward-Looking Statements

3

PART I—FINANCIAL INFORMATION

Item 1

Financial Statements

4

Consolidated Balance Sheets—September 30, 2020 and December 31, 2019 (unaudited)

4

Consolidated Statements of Income and Comprehensive Income—Three and Nine Months Ended September 30, 2020 and 2019 (unaudited)

5

Consolidated Statement of Shareholders’ Equity—Three and Nine Months Ended September 30, 2020 and 2019 (unaudited)

6

Consolidated Statements of Cash Flows—Nine Months Ended September 30, 2020 and 2019 (unaudited)

8

Notes to Consolidated Financial Statements (unaudited)

9

Item 2

Management’s Discussion and Analysis of Financial Condition and Results of Operations

17

Item 3

Quantitative and Qualitative Disclosures About Market Risk

35

Item 4

Controls and Procedures

35

PART II—OTHER INFORMATION

Item 1

Legal Proceedings

36

Item 1A

Risk Factors

36

Item 2

Unregistered Sales of Equity Securities and Use of Proceeds

36

Item 3

Defaults Upon Senior Securities

36

Item 4

Mine Safety Disclosures

36

Item 5

Other Information

36

Item 6

Exhibits

37

Signatures

39

2

NOTE ABOUT FORWARD-LOOKING STATEMENTS

Statements in this quarterly report on Form 10-Q that are not historical facts may constitute “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,” “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:

the extent to which the coronavirus (“COVID-19”) pandemic and measures taken to contain its spread ultimately impact our business, results of operation and financial condition;
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;
other factors affecting our business or the business of our lessees and aircraft manufacturers or their suppliers that are beyond our or their control, including natural disasters, pandemics (such as COVID-19) and measures taken to contain its spread, and governmental actions; 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, “Part II — Item 1A. Risk Factors” in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2020 and other SEC filings, including future SEC filings.

The factors noted above and the risks included in our other SEC filings may be increased or intensified as a result of the COVID-19 pandemic, including as a result of the recent resurgence of the COVID-19 virus in certain parts of the world, including the United States and parts of Europe, and any future resurgences of the virus. The extent to which the COVID-19 pandemic ultimately impacts our business, results of operations and financial condition will depend on future developments, which are highly uncertain and cannot be predicted. See the risk factor in “Part II — Item 1A. Risk Factors” in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2020, “The coronavirus (COVID-19) pandemic and related efforts to mitigate the pandemic have impacted our business, and the extent to which the COVID-19 pandemic and measures taken to contain its spread ultimately impact our business will depend on future developments, which are highly uncertain and are difficult to predict.” 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.

3

PART I—FINANCIAL INFORMATION

ITEM 1.

FINANCIAL STATEMENTS

Air Lease Corporation and Subsidiaries

CONSOLIDATED BALANCE SHEETS

(In thousands, except share and par value amounts)

    

September 30, 2020

    

December 31, 2019

 

(unaudited)

Assets

Cash and cash equivalents

$

1,238,569

$

317,488

Restricted cash

 

23,568

 

20,573

Flight equipment subject to operating leases

 

22,671,435

 

21,286,154

Less accumulated depreciation

 

(3,154,939)

 

(2,581,817)

 

19,516,496

 

18,704,337

Deposits on flight equipment purchases

 

1,634,152

 

1,564,188

Other assets

 

1,191,980

 

1,102,569

Total assets

$

23,604,765

$

21,709,155

Liabilities and Shareholders’ Equity

Accrued interest and other payables

$

401,443

$

516,497

Debt financing, net of discounts and issuance costs

 

15,180,145

 

13,578,866

Security deposits and maintenance reserves on flight equipment leases

 

1,054,757

 

1,097,061

Rentals received in advance

 

140,228

 

143,692

Deferred tax liability

 

850,869

 

749,495

Total liabilities

$

17,627,442

$

16,085,611

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 September 30, 2020 and December 31, 2019, respectively

 

100

 

100

Class A common stock, $0.01 par value; 500,000,000 shares authorized; 113,778,906 and 113,350,267 shares issued and outstanding at September 30, 2020 and December 31, 2019, respectively

 

1,138

 

1,134

Class B non-voting common stock, $0.01 par value; authorized 10,000,000 shares; no shares issued or outstanding

 

 

Paid-in capital

 

2,788,490

 

2,777,601

Retained earnings

 

3,188,566

 

2,846,106

Accumulated other comprehensive loss

(971)

(1,397)

Total shareholders’ equity

$

5,977,323

$

5,623,544

Total liabilities and shareholders’ equity

$

23,604,765

$

21,709,155

(See Notes to Consolidated Financial Statements)

4

Air Lease Corporation and Subsidiaries

CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

(In thousands, except share and per share amounts)

Three Months Ended

Nine Months Ended

September 30, 

September 30, 

    

2020

    

2019

    

2020

    

2019

(unaudited)

 

Revenues

Rental of flight equipment

$

468,443

$

492,869

$

1,462,999

$

1,412,478

Aircraft sales, trading and other

 

25,158

 

38,033

 

63,338

 

55,870

Total revenues

 

493,601

 

530,902

 

1,526,337

 

1,468,348

Expenses

Interest

 

107,519

 

104,637

 

317,753

 

290,681

Amortization of debt discounts and issuance costs

 

10,899

 

9,078

 

31,660

 

26,330

Interest expense

 

118,418

 

113,715

 

349,413

 

317,011

Depreciation of flight equipment

195,054

183,788

577,969

514,948

Selling, general and administrative

 

20,239

 

34,715

 

75,142

 

92,188

Stock-based compensation

6,635

4,897

14,956

14,934

Total expenses

 

340,346

 

337,115

 

1,017,480

 

939,081

Income before taxes

 

153,255

 

193,787

 

508,857

 

529,267

Income tax expense

 

(32,860)

 

(38,000)

 

(103,686)

 

(107,081)

Net income

$

120,395

$

155,787

$

405,171

$

422,186

Preferred stock dividends

 

(3,843)

 

(3,844)

 

(11,531)

 

(8,115)

Net income available to common stockholders

$

116,552

$

151,943

$

393,640

$

414,071

Other Comprehensive Income/(Loss):

Change in foreign currency translation adjustment

(5,637)

7,601

Change from current period hedged transaction

7,395

(7,086)

Total tax expense on other comprehensive income/loss

(378)

(89)

Other Comprehensive income available for common stockholders, net of tax

1,380

426

Total comprehensive income available for common stockholders

$

117,932

$

151,943

$

394,066

$

414,071

Earnings per share of common stock:

Basic

$

1.02

$

1.36

$

3.46

$

3.71

Diluted

$

1.02

$

1.34

$

3.46

$

3.67

Weighted-average shares outstanding

Basic

 

113,778,533

 

112,133,556

 

113,647,585

 

111,511,960

Diluted

 

113,951,102

 

113,263,396

 

113,928,775

 

112,837,526

Dividends declared per share of common stock

$

0.15

$

0.13

$

0.45

$

0.39

(See Notes to Consolidated Financial Statements)

5

Air Lease Corporation and Subsidiaries

CONSOLIDATED STATEMENT OF SHAREHOLDERS’ EQUITY

(In thousands, except share and per share amounts)

Class B Non-

Accumulated

Class A

Voting

Other

Preferred Stock

Common Stock

Common Stock

Paid-in

Retained

Comprehensive

(unaudited)

  

Shares

  

Amount

  

Shares

  

Amount

  

Shares

  

Amount

  

Capital

  

Earnings

  

(Loss)/Income

  

Total

Balance at December 31, 2019

10,000,000

$

100

113,350,267

$

1,134

$

$

2,777,601

$

2,846,106

$

(1,397)

$

5,623,544

Issuance of common stock upon vesting of restricted stock units and upon exercise of options

480,978

4

2,021

2,025

Dividends declared on preferred stock

 

(3,844)

(3,844)

Stock-based compensation

4,429

4,429

Cash dividends (declared $0.15 per share of Class A common stock)

(17,045)

(17,045)

Change in foreign currency translation adjustment and from current period hedged transaction

 

(1,478)

(1,478)

Tax withholding related to vesting of restricted stock units and exercise of stock options

 

(191,334)

(2)

(8,411)

(8,413)

Net income

 

137,151

137,151

Balance at March 31, 2020

 

10,000,000

$

100

113,639,911

$

1,136

$

$

2,775,640

$

2,962,368

$

(2,875)

$

5,736,369

Issuance of common stock upon vesting of restricted stock units and upon exercise of options

 

144,417

2

2,500

2,502

Dividends declared on preferred stock

 

(3,844)

(3,844)

Stock-based compensation

 

3,892

3,892

Cash dividends (declared $0.15 per share of Class A common stock)

 

(17,067)

(17,067)

Change in foreign currency translation adjustment and from current period hedged transaction

524

524

Tax withholding related to vesting of restricted stock units and exercise of stock options

(6,605)

(200)

(200)

Net income

 

147,625

147,625

Balance at June 30, 2020

 

10,000,000

$

100

113,777,723

$

1,138

$

$

2,781,832

$

3,089,082

$

(2,351)

$

5,869,801

Issuance of common stock upon vesting of restricted stock units and upon exercise of options

1,352

1

27

28

Dividends declared on preferred stock

 

(3,843)

(3,843)

Stock-based compensation

6,635

6,635

Cash dividends (declared $0.15 per share of Class A common stock)

(17,068)

(17,068)

Change in foreign currency translation adjustment and from current period hedged transaction

1,380

1,380

Tax withholding related to vesting of restricted stock units and exercise of stock options

(169)

(1)

(4)

(5)

Net income

120,395

120,395

Balance at September 30, 2020

 

10,000,000

$

100

113,778,906

$

1,138

$

$

2,788,490

$

3,188,566

$

(971)

$

5,977,323

6

Air Lease Corporation and Subsidiaries

CONSOLIDATED STATEMENT OF SHAREHOLDERS’ EQUITY

(In thousands, except share and per share amounts)

Class B Non-

Class A

Voting

Preferred Stock

Common Stock

Common Stock

Paid-in

Retained

(unaudited)

  

Shares

  

Amount

  

Shares

  

Amount

  

Shares

  

Amount

  

Capital

  

Earnings

  

Total

Balance at December 31, 2018

$

110,949,850

$

1,110

$

$

2,474,238

$

2,331,552

$

4,806,900

Issuance of common stock upon vesting of restricted stock units and upon exercise of options

 

263,218

2

439

441

Issuance of preferred stock

10,000,000

100

242,141

242,241

Stock-based compensation

4,174

4,174

Cash dividends (declared $0.13 per share of Class A common stock)

 

(14,445)

(14,445)

Tax withholding related to vesting of restricted stock units and exercise of stock options

 

(94,899)

(1)

(3,587)

(3,588)

Net income

 

138,094

138,094

Balance at March 31, 2019

 

10,000,000

$

100

111,118,169

$

1,111

$

$

2,717,405

$

2,455,201

$

5,173,817

Issuance of common stock upon vesting of restricted stock units and upon exercise of options

 

547,957

6

 

10,791

10,797

Issuance of preferred stock

(111)

(111)

Dividends declared on preferred stock

(4,271)

(4,271)

Stock-based compensation

5,863

5,863

Cash dividends (declared $0.13 per share of Class A common stock)

(14,516)

(14,516)

Net income

128,305

128,305

Balance at June 30, 2019

10,000,000

$

100

111,666,126

$

1,117

$

$

2,733,948

$

2,564,719

$

5,299,884

Issuance of common stock upon vesting of restricted stock units and upon exercise of options

1,047,695

11

20,584

20,595

Dividends declared on preferred stock

(3,844)

(3,844)

Stock-based compensation

4,897

4,897

Cash dividends (declared $0.13 per share of Class A common stock)

 

(14,644)

(14,644)

Tax withholding related to vesting of restricted stock units and exercise of stock options

(12,472)

(1)

 

(501)

(502)

Net income

155,787

155,787

Balance at September 30, 2019

10,000,000

$

100

112,701,349

$

1,127

$

$

2,758,928

$

2,702,018

$

5,462,173

(See Notes to Consolidated Financial Statements)

7

Air Lease Corporation and Subsidiaries

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

Nine Months Ended

September 30, 

    

2020

    

2019

 

(unaudited)

Operating Activities

Net income

$

405,171

$

422,186

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation of flight equipment

 

577,969

 

514,948

Stock-based compensation

14,956

14,934

Deferred taxes

 

101,285

 

97,566

Amortization of debt discounts and issuance costs

 

31,660

 

26,330

Amortization of prepaid lease costs

32,142

 

24,190

Gain on aircraft sales, trading and other activity

 

(27,281)

 

(45,123)

Changes in operating assets and liabilities:

Other assets

(330,804)

(149,740)

Accrued interest and other payables

 

(84,045)

 

51,156

Rentals received in advance

(3,464)

15,109

Net cash provided by operating activities

 

717,589

 

971,556

Investing Activities

 

 

Acquisition of flight equipment under operating lease

 

(777,410)

 

(3,021,758)

Payments for deposits on flight equipment purchases

 

(581,054)

 

(727,982)

Proceeds from aircraft sales, trading and other activity

151,131

426,382

Acquisition of aircraft furnishings, equipment and other assets

 

(142,866)