NYSE$AL

Air Lease Corporation · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

ALC's Q1 2022 financial results were announced, revealing a revenue increase but a net loss due to a write-off of Russian fleet.

Air Lease Corporation (ALC) reported a 25.7% increase in total revenues to $596.7 million for the three months ended March 31, 2022, compared to the same period in 2021. However, the company recorded a net loss of $479.4 million, or $4.21 per diluted share, due to a write-off of its Russian fleet, though they are pursuing insurance claims. Excluding the write-off and certain adjustments, adjusted net income before income taxes was $200.9 million, or $1.76 per diluted share, a 71.6% increase over the prior period.

  • Recorded a write-off of approximately $802.4 million related to interests in owned and managed aircraft remaining in Russia, while pursuing insurance claims to recover losses.
  • Took delivery of eight new aircraft from the order pipeline and one aircraft from the secondary market, representing approximately $490.0 million in aircraft investments.
  • Placed 97% of contracted orderbook positions on long-term leases for aircraft delivering through the end of 2023 and have placed 52% of the entire orderbook.
  • Completed a $150 million stock repurchase program, acquiring approximately 3.4 million shares of outstanding Class A common stock.

Headline financials

Total Revenue

$597M

Previous: $475M+25.7%
EPS (adj)

$1.76

Previous: $1.03+70.9%
Net book value fleet

$22.3B

Previous: $20.8B+7.2%
Weighted avg fleet age

4.5

Previous: 4.3+4.7%
Weighted avg lease term

7

Previous: 6.9+1.4%
Capital Expenditures

-$53M

Previous: -$41.9M-26.4%
Free Cash Flow

-$522M

Previous: $42.2M-1337.8%
Net Income

-$469M

Previous: $84.1M-657.7%
Operating Income

-$602M

Previous: $104M-681.2%
Gross Profit

$597M

Previous: $475M+25.7%
Cash & Equivalents

$1.49B

Previous: $1.33B+12.3%
Total Assets

$26.9B

Previous: $25.2B+6.7%
Stock-Based Comp

-$2.52M

Previous: $5.41M-146.7%

Revenue & EPS history

ALC · Revenue · Quarterly

$597M

Q1 2022+25.7%vs Q1 2021
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

ALC · $561M total across 1 segment · Q4 2022

  • Rental of flight equipment
    $561M

Forward guidance

ALC is monitoring delivery delays from Boeing and Airbus and will adjust accordingly to take advantage of market opportunities, fostering fleet growth in 2022 and beyond.

Tailwinds

  • Industry fundamentals continue to strengthen globally.
  • Demand is expanding both for new and young used aircraft.
  • Lease rates are continuing to firm.
  • The value of existing aircraft in our fleet is bolstering.
  • ALC is well-poised to execute successfully on our strategy as the recovery continues.

Headwinds

  • Write-off of Russian fleet.
  • Monitoring continued delivery delays from Boeing and Airbus very closely.
  • Adjustments will be made accordingly to take advantage of market opportunities.
  • The extent to which the Russian invasion of Ukraine and the impact of sanctions imposed by the United States, European Union, United Kingdom and other countries affect our business, including our efforts to pursue insurance claims to recover losses related to aircraft that remain in Russia.
  • The extent to which the COVID-19 pandemic impacts our business.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q1 2022

Historical avgQ1 2022

+1.3%

Avg return

Earnings day

+0.2%

Avg return

5 days after

+1.2%

Avg return

30 days after

62%

39 / 63 earnings

Positive

+15.5%

Q1 2020

Best reaction

-17.2%

Q2 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026
Q4 2025+0.1%+0.2%-0.1%
Q3 2025-0.3%-0.1%+0.1%
Q2 2025-0.4%+0.7%+15.4%
Q1 2025+8.1%+10.0%+17.0%
Q4 2024+6.7%+10.3%-0.7%
Q3 2024-0.5%+2.2%+5.7%
Q2 2024-17.2%-14.6%-6.8%
Q1 2024-7.0%-4.5%-8.7%
Q4 2023-2.9%-4.1%+11.4%
Q3 2023-1.2%+1.4%+5.7%
Q2 2023-0.9%+0.9%-1.4%
Q1 2023-3.4%-5.9%-5.5%
Q4 2022-4.2%-6.2%-18.5%
Q3 2022+1.3%+2.9%+12.7%
Q2 2022+2.1%+0.8%-3.5%
Q1 2022-6.6%-11.7%-8.8%
Q4 2021+2.5%+2.1%-4.0%
Q3 2021+10.1%+11.6%-8.1%
Q2 2021+1.0%+1.0%-3.6%
Q1 2021-9.1%-7.6%-3.9%
Q4 2020+4.0%+2.0%+3.8%
Q3 2020+10.6%+15.4%+34.5%
Q2 2020+5.1%+10.7%+13.3%
Q1 2020+15.5%+1.7%+49.3%
Q4 2019-4.0%-3.4%-47.5%
Q3 2019-1.1%-1.6%+1.3%
Q2 2019+3.6%+0.7%+8.2%
Q1 2019+1.5%+0.5%+0.5%
Q4 2018-0.2%-0.5%-14.7%
Q3 2018-0.2%-3.7%-10.2%
Q2 2018+1.7%+1.8%-0.4%
Q1 2018-0.6%+0.6%+1.8%
Q4 2017+1.5%-3.1%-8.5%
Q3 2017+1.3%-3.2%+2.8%
Q2 2017+8.3%+8.1%+3.0%
Q1 2017-4.5%-7.5%-0.8%
Q4 2016-4.7%-2.6%-5.6%
Q3 2016+4.7%+4.8%+16.3%
Q2 2016+1.5%-0.4%+4.8%
Q1 2016+6.3%
Q4 2015+2.5%
Q3 2015+5.1%
Q2 2015+3.4%
Q1 2015+0.1%
Q4 2014-1.3%
Q3 2014+1.1%
Q2 2014+4.9%
Q1 2014+3.6%
Q4 2013+5.2%
Q3 2013+3.4%
Q2 2013-1.5%
Q1 2013+2.0%
Q4 2012+5.9%
Q3 2012+2.8%
Q2 2012-0.6%
Q1 2012-6.2%
Q1 2011-6.2%
Q4 2011+1.8%
Q3 2011+2.6%
Q3 2010+2.6%
Q2 2010+7.1%
Q2 2011+7.1%
Q4 2010+7.1%
Q1 2010

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