Air lease corporation announces second quarter 2016 results
Los angeles--(business wire)--air lease corporation (alc) (nyse: al) announced quarterly financial results for the three and six months ended june 30, 2016. items of note include: generated quarterly diluted eps of $0.84 for the three months ended june 30, 2016, an increase of 20.0% compared to the three months ended june 30, 2015. generated quarterly adjusted diluted eps before income taxes of $1.39 for the three months ended june 30, 2016, an increase of 16.8% compared to the three months ended june 30, 2015. generated record quarterly revenues of $350.1 million for the three months ended june 30, 2016, an increase of 14.9% as compared to $304.7 million for the three months ended june 30, 2015. generated quarterly net income of $91.8 million with a pre-tax margin of 40.6% for the three months ended june 30, 2016 as compared to $76.1 million with a pre-tax margin of 38.8% for the three months ended june 30, 2015. generated quarterly adjusted net income before income taxes of $152.2 million with an adjusted margin of 43.7% for the three months ended june 30, 2016 as compared to $130.4 million with an adjusted margin of 42.8% for the three months ended june 30, 2015. placed 91% of our order book on long-term leases for aircraft delivering through 2018 and 80% through 2019. purchased $897.4 million in aircraft during the quarter, including 13 aircraft from our order book and three incremental aircraft. entered into an agreement to sell 25 embraer e190 and e175 aircraft to nordic aviation capital a/s ("nac") and expect the sale of the aircraft to be completed by the first quarter of 2017. completed a senior unsecured notes offering in april 2016, issuing $600 million at 3.375%, maturing in 2021. completed an amendment to our 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%. declared a quarterly cash dividend of $0.05 per share on our outstanding common stock to be paid on october 6, 2016, to holders of record of our common stock as of september 12, 2016. the following table summarizes the results for the three and six months ended june 30, 2016 and 2015 (in thousands, except share amounts): six months endedjune 30, “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. flight equipment portfolio as of june 30, 2016, our 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. we have a globally diversified customer base of 91 airlines in 53 countries. during the quarter ended june 30, 2016, we took delivery of 13 aircraft from our order book, acquired three incremental aircraft and sold 10 aircraft from our operating lease portfolio. below are the key portfolio metrics of our fleet: the following table details the regional concentration of our fleet: the following table details the composition of our fleet by aircraft type: debt financing activities we ended the second quarter of 2016 with total debt, net of discounts and issuance costs, of $8.4 billion resulting in a debt to equity ratio of 2.63:1 and available liquidity of $1.6 billion. our debt financing was comprised of unsecured debt of $7.7 billion, representing 91.2% of our debt portfolio as of june 30, 2016 as compared to 88.4% as of december 31, 2015. our fixed rate debt represented 71.7% of our debt portfolio as of june 30, 2016 as compared to 78.7% as of december 31, 2015. our composite cost of funds decreased to 3.33% as of june 30, 2016 as compared to 3.59% as of december 31, 2015. the company’s debt financing was comprised of the following at june 30, 2016 and december 31, 2015 (dollars in thousands): december 31,2015 conference call in connection with the earnings release, air lease corporation will host a conference call on august 4, 2016 at 4:30 pm eastern time to discuss the company's financial results for the second quarter of 2016. investors can participate in the conference call by dialing (855) 308-8321 domestic or (330) 863-3465 international. the passcode for the call is 42459791. the conference call will also be broadcast live through a link on the investor relations page of the air lease corporation website at www.airleasecorp.com. please visit the website at least 15 minutes prior to the call to register, download and install any necessary audio software. a replay of the broadcast will be available on the investor relations page of the air lease corporation website. for your convenience, the conference call can be replayed in its entirety beginning at 7:30 pm et on august 4, 2016 until 7:30 pm et august 11, 2016. if you wish to listen to the replay of this conference call, please dial (855) 859-2056 domestic or (404) 537-3406 international and enter passcode 42459791. about air lease corporation (nyse: al) air lease corporation is a leading aircraft leasing company based in los angeles, california that has airline customers throughout the world. alc and its team of dedicated and experienced professionals are principally engaged in purchasing commercial aircraft and leasing them to its airline customers worldwide through customized aircraft leasing and financing solutions. for more information, visit alc's website at www.airleasecorp.com. forward-looking statements statements in this press release that are not historical facts are hereby identified as “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: our inability to make acquisitions of, or lease, aircraft on favorable terms; our inability to sell aircraft on favorable terms; 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; impaired financial condition and liquidity of our lessees; deterioration of economic conditions in the commercial aviation industry generally; increased maintenance, operating or other expenses or changes in the timing thereof; changes in the regulatory environment; potential natural disasters and terrorist attacks and the amount of our insurance coverage, if any, relating thereto; 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, 2015 and other sec filings, including future sec filings. 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. june 30,2016 december 31,2015 three months ended june 30, six months ended june 30, (1) adjusted net income before income taxes (defined as net income excluding the effects of certain non-cash items, one-time or non-recurring items, such as settlement expense, net of recoveries, that are not expected to continue in the future and certain other items), adjusted margin (defined as adjusted net income before income taxes divided by total revenues, excluding insurance recoveries) and adjusted diluted earnings per share before income taxes (defined as adjusted net income before income taxes divided by the weighted average diluted common shares outstanding) are measures of operating performance that are not defined by gaap and should not be considered as an alternative to net income, pre-tax profit margin, earnings per share, and diluted earnings per share, or any other performance measures derived in accordance with gaap. adjusted net income before income taxes, adjusted margin and adjusted diluted earnings per share before income taxes, are presented as supplemental disclosure because management believes they provide useful information on our earnings from ongoing operations. management and our board of directors use adjusted net income before income taxes, adjusted margin and adjusted diluted earnings per share before income taxes to assess our consolidated financial and operating performance. management believes these measures are helpful in evaluating the operating performance of our ongoing operations and identifying trends in our performance, because they remove the effects of certain non-cash items, one-time or non-recurring items that are not expected to continue in the future and certain other items from our operating results. adjusted net income before income taxes, adjusted margin and adjusted diluted earnings per share before income taxes, however, should not be considered in isolation or as a substitute for analysis of our operating results or cash flows as reported under gaap. adjusted net income before income taxes, adjusted margin and adjusted diluted earnings per share before income taxes do not reflect our cash expenditures or changes in or cash requirements for our working capital needs. in addition, our calculation of adjusted net income before income taxes, adjusted margin and adjusted diluted earnings per share before income taxes may differ from the adjusted net income before income taxes, adjusted margin and adjusted diluted earnings per share before income taxes or analogous calculations of other companies in our industry, limiting their usefulness as a comparative measure. the following tables show the reconciliation of net income to adjusted net income before income taxes and adjusted margin (in thousands, except percentages): the following table shows the reconciliation of net income to adjusted diluted earnings per share before income taxes (in thousands, except share and per share amounts):
