Air lease corporation announces first quarter 2014 results
Los angeles--(business wire)--air lease corporation (alc) (nyse: al) announced today financial results for the quarter ended march 31, 2014. highlights air lease corporation reported another consecutive quarter of fleet, revenue and profitability growth: diluted eps increased 50% to $0.57 per share for the three months ended march 31, 2014 compared to $0.38 per share for the three months ended march 31, 2013. revenues increased 28% to $246 million for the three months ended march 31, 2014 compared to $192 million for the three months ended march 31, 2013. income before taxes increased 54% to $95 million with a pretax margin of 39% for the three months ended march 31, 2014 compared to income before taxes of $62 million with a pretax margin of 32% for the three months ended march 31, 2013. recorded $15.9 million in gains on aircraft sales, trading and other activity for the three months ended march 31, 2014. placed orders for nine additional aircraft from airbus s.a.s., avions de transport rÉgional and the boeing company scheduled to deliver in 2014 through 2017. signed forward lease placements with four new airlines further diversifying our global customer base. on may 5, 2014, we amended our syndicated unsecured revolving credit facility increasing the aggregate capacity by $100 million to $2.1 billion and extended the availability period by one year to may 2018. completed a senior unsecured notes offering in march 2014, issuing $500 million with a coupon of 3.875%, maturing in 2021. our board of directors declared a quarterly cash dividend of $0.03 per share on our outstanding common stock. the following table summarizes the results for the three months and years ended march 31, 2014 and 2013 (in thousands, except share amounts): “alc started off 2014 with another record quarter of profitability. globally, all indications point to continued strength in overall airline financial health, profitability, and better capacity management. the demand from airlines is outpacing alc’s existing order pipeline of new aircraft and therefore we topped up orders at airbus, boeing, and atr to facilitate customer needs,” said steven f. udvar-hÁzy, chairman and chief executive officer of air lease corporation. “we continue to diversify our portfolio by adding new customers to our fleet with long leases attached. we took advantage of a healthy secondary market for aircraft trading and we sold four mid-life aircraft for gains. the capital markets have remained very receptive to our strengthening credit profile and have allowed us to drive credit spreads tighter with each successive debt issuance,” said john l. plueger, president and chief operating officer of air lease corporation. flight equipment portfolio as of march 31, 2014, we owned 196 aircraft in our operating lease portfolio and we leased the aircraft to a globally diversified customer base of 79 airlines in 47 countries. during the quarter ended march 31, 2014, we delivered five aircraft from our new order pipeline. in addition, we sold two aircraft from our operating lease portfolio during the quarter ended march 31, 2014. as of march 31, 2014, we managed twelve aircraft for third parties. below are portfolio metrics of our fleet as of march 31, 2014 and december 31, 2013: _______________ (1) weighted-average fleet age and remaining lease term calculated based on net book value. over 90% of our aircraft are operated internationally. the following table sets forth the percentage of net book value of our aircraft portfolio in the indicated regions as of march 31, 2014 and december 31, 2013: region the following table sets forth the number of aircraft we leased by aircraft type as of march 31, 2014 and december 31, 2013: aircraft type aircraft total aircraft total debt financing activities we ended the first quarter of 2014 with total debt outstanding of $5.94 billion as compared to $5.85 billion as of december 31, 2013. we have built a globally diversified banking group, which has provided us in excess of $4.3 billion in financing and we have successfully accessed the debt capital markets for $3.8 billion in unsecured financing. we ended the first quarter of 2014 with total unsecured debt outstanding of $4.6 billion compared to $4.3 billion as of december 31, 2013, increasing the company’s unsecured debt as a percentage of total debt to 77.0% as of march 31, 2014 compared to 73.5% as of december 31, 2013. the company’s fixed rate debt as a percentage of total debt increased to 69.4% as of march 31, 2014 from 62.0% as of december 31, 2013. in the first quarter 2014, we raised additional debt financing aggregating $525.0 million, which included $500.0 million in senior unsecured notes due 2021 that bear interest at a rate of 3.875% and $25.0 million in senior unsecured notes due 2024 that bear interest at a rate of 4.85%. we ended the first quarter of 2014 with a debt to equity ratio of 2.3:1 and available liquidity of $2.1 billion which is comprised of unrestricted cash of $256.1 million and undrawn balances under our warehouse facilities and unsecured revolving credit facilities of $1.8 billion. our financing strategy remains focused on raising unsecured debt in the global bank and capital markets. the company’s debt financing was comprised of the following at march 31, 2014 and december 31, 2013: _______________ (1) this rate does not include the effect of upfront fees, undrawn fees or issuance cost amortization. conference call in connection with the earnings release, air lease corporation will host a conference call on may 8, 2014 at 4:30 pm eastern time to discuss the company's financial results for the first quarter 2014. investors can participate in the conference call by dialing (866) 510-0707 domestic or (617) 597-5376 international. the passcode for the call is 30485612. 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 8:30 pm et on may 8, 2014 until 11:59 pm et may 15, 2014. if you wish to listen to the replay of this conference call, please dial (888) 286-8010 domestic or (617) 801-6888 international and enter passcode 75967693. 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 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, 2013 and other 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. 2014 2013 $51,578 as of march 31, 2014 and december 31, 2013, respectively (299,029 buyer furnished equipment, capitalized interest and deposits on flight equipment purchases applied to acquisition of flight equipment and other assets $ — others assets applied to payments for deposits on flight equipment purchases $ 12,980 $ —
