Air Lease Corp. Files Q3 2024 10-Q

TL;DR

AL's Q3 2024 10-Q is in. Check financials.

AI Summary

Air Lease Corp. reported its third-quarter results for the period ending September 30, 2024. The company's financial statements and disclosures are available in this 10-Q filing. Key financial data and operational details for the period are presented.

Why It Matters

This filing provides investors and analysts with the official financial performance and operational status of Air Lease Corp. for the third quarter of 2024, crucial for investment decisions.

Risk Assessment

Risk Level: low — This is a standard quarterly financial filing with no immediate red flags or significant new risks indicated.

Key Numbers

• 2024-09-30 — Reporting Period End Date (The end of the third quarter for which financial results are reported.)
• 2023-12-31 — Previous Year End Date (Provides a comparison point for year-end financial status.)

Key Players & Entities

• AIR LEASE CORP (company) — Filer
• 20240930 (date) — Conformed Period of Report
• 20241107 (date) — Filed as of Date
• LOS ANGELES (location) — Business Address City

FAQ

Filing Documents

• al-20240930.htm (10-Q) — 1440KB
• ex-101xq324.htm (EX-10.1) — 529KB
• ex-102xq324.htm (EX-10.2) — 713KB
• ex-103xq324.htm (EX-10.3) — 39KB
• ex-104xq324.htm (EX-10.4) — 28KB
• ex-105xq324.htm (EX-10.5) — 238KB
• ex106-q324.htm (EX-10.6) — 73KB
• ex-311xq324.htm (EX-31.1) — 9KB
• ex-312xq324.htm (EX-31.2) — 9KB
• ex-321xq324.htm (EX-32.1) — 5KB
• ex-322xq324.htm (EX-32.2) — 5KB
• boeing.jpg (GRAPHIC) — 23KB
• 0001628280-24-046236.txt ( ) — 8285KB
• al-20240930.xsd (EX-101.SCH) — 51KB
• al-20240930_cal.xml (EX-101.CAL) — 73KB
• al-20240930_def.xml (EX-101.DEF) — 261KB
• al-20240930_lab.xml (EX-101.LAB) — 616KB
• al-20240930_pre.xml (EX-101.PRE) — 450KB
• al-20240930_htm.xml (XML) — 656KB

—FINANCIAL INFORMATION

PART I—FINANCIAL INFORMATION Item 1

Financial Statements

Financial Statements Consolidated Balance Sheets—September 30, 2024 and December 31, 2023 (unaudited) 5 Consolidated Statements of Income and Other Comprehensive Income—Three and Nine Months Ended September 30, 2024 and 2023 (unaudited) 6 Consolidated Statements of Shareholders' Equity—Three and Nine Months Ended September 30, 2024 and 2023 (unaudited) 7 Consolidated Statements of Cash Flows—Nine Months Ended September 30, 2024 and 2023 (unaudited) 9

Notes to Consolidated Financial Statements (unaudited)

Notes to Consolidated Financial Statements (unaudited) 10 Item 2

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

Management's Discussion and Analysis of Financial Condition and Results of Operations 21 Item 3

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 42 Item 4

Controls and Procedures

Controls and Procedures 43

—OTHER INFORMATION

PART II—OTHER INFORMATION Item 1

Legal Proceedings

Legal Proceedings 43 Item 1A

Risk Factors

Risk Factors 43 Item 2 Unregistered Sales of Equity Securities and Use of Proceeds 44 Item 3 Defaults Upon Senior Securities 44 Item 4 Mine Safety Disclosures 44 Item 5 Other Information 44 Item 6 Exhibits 44

Signatures

Signatures 46 3 Table of Contents NOTE ABOUT FORWARD-LOOKING STATEMENTS This Quarterly Report on Form 10-Q and other publicly available documents may contain or incorporate statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Those statements appear in a number of places in this Form 10-Q and include statements regarding, among other matters, the state of the airline industry, our access to the capital and debt markets, the impact of Russia's invasion of Ukraine and the impact of sanctions imposed on Russia, the impact of the Israel Hamas conflict, aircraft and engine delivery delays and manufacturing flaws, including as a result of the Boeing labor strike, our aircraft sales pipeline and expectations, changes in inflation and interest rates and other macroeconomic conditions and other factors affecting our financial condition or results of operations. Words such as "can," "could," "may," "predicts," "potential," "will," "projects," "continuing," "ongoing," "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates" and "should," and variations of these words and similar expressions, are used in many cases to identify these forward-looking statements. Any such forward-looking statements are not guarantees of future performance and involve risks, uncertainties, and other factors that may cause our actual results, performance or achievements, or industry results to vary materially from our future results, performance or achievements, or those of our industry, expressed or implied in such forward-looking statements. Such factors include, among others: our inability to obtain additional capital on favorable terms, or at all, to acquire aircraft, service our debt obligations and refinance maturing debt obligations; increases in our cost of borrowing, decreases in our credit ratings or changes in interest rates; our inability to generate sufficient returns on our a

—FINANCIAL INFORMATION

PART I—FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS Air Lease Corporation and Subsidiaries CONSOLIDATED BALANCE SHEETS (In thousands, except share and par value amounts) September 30, 2024 December 31, 2023 (unaudited) Assets Cash and cash equivalents $ 460,785 $ 460,870 Restricted cash 4,565 3,622 Flight equipment subject to operating leases 33,853,006 31,787,241 Less accumulated depreciation ( 5,958,105 ) ( 5,556,033 ) 27,894,901 26,231,208 Deposits on flight equipment purchases 1,050,268 1,203,068 Other assets 2,743,310 2,553,484 Total assets $ 32,153,829 $ 30,452,252 Liabilities and Shareholders' Equity Accrued interest and other payables $ 1,072,033 $ 1,164,140 Debt financing, net of discounts and issuance costs 20,161,860 19,182,657 Security deposits and maintenance reserves on flight equipment leases 1,757,104 1,519,719 Rentals received in advance 129,303 143,861 Deferred tax liability 1,357,832 1,281,837 Total liabilities $ 24,478,132 $ 23,292,214 Shareholders' Equity Preferred Stock, $ 0.01 par value; 50,000,000 shares authorized at each of September 30, 2024 and December 31, 2023; 10,900,000 (aggregate liquidation preference of $ 1,150,000 ) shares issued and outstanding at September 30, 2024; 10,600,000 (aggregate liquidation preference of $ 850,000 ) shares issued and outstanding at December 31, 2023 $ 109 $ 106 Class A common stock, $ 0.01 par value; 500,000,000 shares authorized; 111,376,884 and 111,027,252 shares issued and outstanding at September 30, 2024 and December 31, 2023, respectively 1,114 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 3,598,407 3,287,234 Retained earnings 4,079,173 3,869,813 Accumulated other comprehensive (loss)/income ( 3,106 ) 1,775 Total shareholders' equity $ 7,675,697 $ 7,160,038 Total liabilities and shareholders' equity $ 32,153,829 $ 30,452,252 (See Notes to Consolidated Financial Statements) 5 Table of Cont

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) Note 1. Company Background and Overview Air Lease Corporation (the "Company", "ALC", "we", "our" or "us") is a leading aircraft leasing company that was founded by aircraft leasing industry pioneer, Steven F. Udvar-Hzy. The Company is principally engaged in purchasing the most modern, fuel-efficient, new technology commercial jet aircraft directly from aircraft manufacturers, such as The Boeing Company ("Boeing") and Airbus S.A.S. ("Airbus"). The Company leases these aircraft to airlines throughout the world with the intention to generate attractive returns on equity. As of September 30, 2024, the Company owned 485 aircraft, managed 64 aircraft and had 287 aircraft on order with aircraft manufacturers. In addition to its leasing activities, the Company sells aircraft from its fleet to third parties, including other leasing companies, financial services companies, airlines and other investors. The Company also provides fleet management services to investors and owners of aircraft portfolios for a management fee. Note 2. Basis of Preparation and Critical Accounting Policies The Company consolidates financial statements of all entities in which the Company has a controlling financial interest, including the accounts of any Variable Interest Entity in which the Company has a controlling financial interest and for which it is the primary beneficiary. All material intercompany balances are eliminated in consolidation. The accompanying Consolidated Financial Statements have been prepared in accordance with Generally Accepted Accounting Principles in the United States of America ("GAAP") for interim financial information and in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. The accompanying unaudited Consolidated Financial Statements include all adjustments

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) Note 3. Debt Financing The Company's consolidated debt as of September 30, 2024 and December 31, 2023 is summarized below: September 30, 2024 December 31, 2023 (in thousands) Unsecured Senior unsecured securities $ 16,429,118 $ 16,329,605 Term financings 2,082,800 1,628,400 Revolving credit facility 1,286,000 1,100,000 Total unsecured debt financing 19,797,918 19,058,005 Secured Term financings 357,629 100,471 Export credit financing 194,120 204,984 Total secured debt financing 551,749 305,455 Total debt financing 20,349,667 19,363,460 Less: Debt discounts and issuance costs ( 187,807 ) ( 180,803 ) Debt financing, net of discounts and issuance costs $ 20,161,860 $ 19,182,657 As of September 30, 2024, management of the Company believes it is in compliance in all material respects with the covenants in its debt agreements, including minimum consolidated shareholders' equity, minimum consolidated unencumbered assets, and an interest coverage ratio test. Senior unsecured securities (including Medium-Term Note Program) As of September 30, 2024 and December 31, 2023, the Company had $ 16.4 billion and $ 16.3 billion in senior unsecured securities outstanding, respectively. During the nine months ended September 30, 2024, the Company issued (i) $ 500.0 million in aggregate principal amount of 5.10 % Medium-Term Notes due 2029, (ii) Canadian dollar ("C$") denominated debt of C$ 400.0 million in additional aggregate principal amount of 5.40 % Medium-Term Notes due 2028 ("2024 C$ notes"), (iii) Euro ("") denominated debt of 600.0 million in aggregate principal amount of 3.70 % Medium-Term Notes due 2030 ("2024 notes"), (iv) $ 600.0 million in aggregate principal amount of 5.30 % Medium-Term Notes due 2026 and (v) $ 600.0 million in aggregate principal amount of 5.20 % Medium-Term Notes due 2031. The 2024 C$ notes issued in 2024 have the same terms as, and constitute a single tranche with, th

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) In April 2024, the Company amended and extended its Revolving Credit Facility through an amendment that, among other things, extended the final maturity date from May 5, 2027 to May 5, 2028 and amended the total revolving commitments thereunder to approximately $ 7.8 billion as of May 5, 2024. As of November 7, 2024, lenders held revolving commitments totaling approximately $ 7.5 billion that mature on May 5, 2028, commitments totaling $ 25.0 million that mature on May 5, 2027, $ 210.0 million that mature on May 5, 2026 and commitments totaling $ 25.0 million that mature on May 5, 2025. Borrowings under the Revolving Credit Facility continue to accrue interest at Adjusted Term SOFR (as defined in the Revolving Credit Facility) plus a margin of 1.05 % per year. The Company is required to pay a facility fee of 0.20 % per year in respect of total commitments under the Revolving Credit Facility. Interest rate and facility fees are subject to changes in the Company's credit ratings. Unsecured term financings As of September 30, 2024 and December 31, 2023, the outstanding balance on the Company's unsecured term financings was $ 2.1 billion and $ 1.6 billion, respectively. In August 2024, the Company amended its existing $ 750.0 million term loan that, among other things, increased the aggregate term loan commitments by an additional $ 500.0 million and reduced the interest rate applicable to borrowings. Under the terms of the loan agreement, the Company had the ability to set the funding date of the additional commitments, subject to an outside funding date of November 15, 2024. The Company elected to borrow the

View Full Filing

View this 10-Q filing on SEC EDGAR