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Air Lease Corporation Announces Fourth Quarter 2012 Results And Declares Its First Quarterly Cash Dividend On Its Common Stock

Stocks in this article: AL

“To further enhance ALC’s growth during Q4 we took advantage of opportunistic transactions and acquired 3 incremental aircraft over and above our new order pipeline. We concluded the first sale of an aircraft from our fleet and profitably redeployed a 737-800 from a troubled carrier. In addition to the strong execution of our business plan during the quarter, we worked equally hard to grow our future performance by increasing our orders in the last few months for additional aircraft from Airbus, Boeing and ATR. We continue to place these aircraft with high quality airline customers many years into the future,” said John L. Plueger, President and Chief Operating Officer of Air Lease Corporation.

Fleet Growth

Building on our base of 142 aircraft at September 30, 2012, we increased our fleet by 13 aircraft during the fourth quarter of 2012 and ended the quarter with 155 aircraft spread across a diverse and balanced customer base of 69 airlines based in 40 countries.

Below are portfolio metrics of our fleet as of December 31, 2012 and 2011:

        December 31, 2012         December 31, 2011
Fleet size 155 102
Weighted-average fleet age (1) 3.5 years 3.6 years
Weighted-average remaining lease term (1) 6.8 years 6.6 years
Aggregate fleet cost $ 6.60 Billion $ 4.37 Billion

(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 December 31, 2012 and 2011:

        December 31, 2012         December 31, 2011

Region

% of net book value % of net book value
Europe 38.4 % 42.1 %
Asia/Pacific 35.9 32.0
Central America, South America and Mexico 12.6 12.2
U.S. and Canada 7.3 9.1
The Middle East and Africa 5.8   4.6  
Total 100.0 % 100.0 %
 

The following table sets forth the number of aircraft we leased by aircraft type as of December 31, 2012 and 2011:

        December 31, 2012     December 31, 2011

Aircraft type

Number of aircraft

   

% of Total

Number of aircraft

   

% of t otal

Airbus A319/320/321 41 26.4 % 31 30.4 %
Airbus A330-200/300 17 11.0 11 10.8
Boeing 737-700/800 46 29.7 38 37.2
Boeing 767-300ER 3 1.9 3 2.9
Boeing 777-200/300ER 7 4.5 5 4.9
Embraer E175/190 31 20.0 12 11.8
ATR 72-600 10 6.5   2 2.0  
Total 155 100.0 % 102 100.0 %
 

Debt Financing Activities

During the fourth quarter of 2012 and through February 28, 2013, the Company entered into additional debt facilities aggregating $610.5 million, which included a $450.0 million in senior unsecured notes and additional debt facilities aggregating $160.5 million. We ended the fourth quarter of 2012 with total unsecured debt outstanding of $2.6 billion. The Company’s unsecured debt as a percentage of total debt increased to 60.2% as of December 31, 2012 from 31.7% as of December 31, 2011. We ended the fourth quarter of 2012 with a conservative balance sheet with low leverage and ample available liquidity of $1.29 billion. As part of our financing strategy we will continue to focus on financing the Company on an unsecured basis.

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