ALC Reports First Quarter Net Income of $80 Million on 7 Percent Revenue Decline to $475 Million
Air Lease Corporation (ALC) has reported a first quarter net income of $80 million or $0.70 per diluted share on a 7 percent year-over-year revenue decline to $475 million. The company ended the quarter with cash and cash equivalents totaling $1.3 billion.
On Thursday (May 6, 2021), Air Lease Corporation (ALC) reported their first quarter 2021 financial results for the period ending March 31, 2021. The company reported a first quarter net income of $80 million or $0.70 per diluted share on a 7 percent year-over-year decline in revenue to $475 million. The revenue decline versus Q1 2020 is largely attributable to the impact of the global COVID-19 pandemic during the full first quarter this year. In Thursday’s announcement, Air Lease Corporation’s President and Chief executive Officer, John L. Plueger, said,
“We continued helping our customers through a difficult winter season in Q4 and Q1 and we are hopeful that the worst of the global pandemic is behind us. The world’s airlines need much more time for financial recovery, yet fleet renewal remains a top priority and we are heavily involved in this process. For Q1, we exceeded our aircraft investment expectations, and our operating cash flow increased modestly relative to last year’s pre-pandemic first quarter. We see accelerating domestic traffic recovery in multiple geographic regions, with expectations of improvement over the remainder of 2021 in regions still heavily impacted.”
ALC’s Executive Board Chairman, Steven F. Udvar-Házy added,
“Lease placements from our forward orderbook are tracking well, as airlines recognize that re-fleeting with the most environmentally friendly and fuel efficient aircraft is key to their long term prosperity and future. Lease financing is increasingly critical to airline fleet restructuring, and ALC's focus on new aircraft places us at the leading-edge of industry demand. We believe the recovery in the US and China are harbingers of what will occur globally as travel restrictions are relaxed and vaccines are more widely distributed.”
During the first quarter, ALC took delivery of 10 aircraft from their orderbook, an investment valued at $602 million. The company closed the quarter with 342 owned aircraft with a net book value of $20.8 billion, a weighted average age of 4.3 years, and a weighted average remaining lease term of 6.9 years. ALC has also contracted 95 percent of their orderbook positions on long-term leases for aircraft delivering through 2022 and 80 percent through 2023.
At the end of the first quarter, ALC had $26.8 billion in committed minimum future rental payments including $13.4 billion on aircraft in their existing fleet and $13.4 billion related to aircraft on order. To date, 46 percent of lease deferrals or $112 million have been repaid. During Q1, the company issued 300,000 shares of 4.65% Fixed-Rate Reset Non-Cumulative Perpetual Series B Preferred Stock, resulting in approximately $300 million in proceeds. In April, the company also increased their syndicated unsecured revolving credit facility by $200 million to $6.4 billion and extended final maturity to May 2025. ALC ended the quarter with cash and cash equivalents totaling $1.3 billion and total assets of $25.2 billion.
Based in Los Angeles, California, Air Lease Corporation (NYSE: AL) is a leading global aircraft leasing company. The ALC team is principally involved in the purchase of commercial aircraft and leasing them to airlines worldwide with customized leasing and financing solutions.
Source: Air Lease Corporation