NYSE$AL

Air Lease Corporation · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Announced second quarter 2021 results, demonstrating resilience amidst airline industry recovery with strategic leasing efforts and solid financial performance.

Air Lease Corporation reported a decrease in revenues by 5.7% to $491.9 million compared to the same period last year. Net income available to common stockholders was $85.6 million, with diluted earnings per share at $0.75. The company took delivery of 12 aircraft and maintained a strong lease placement rate.

  • Took delivery of 12 aircraft from orderbook, representing $971 million in aircraft investments.
  • Placed 93% of contracted orderbook positions on long-term leases for aircraft delivering through the end of 2022.
  • Ended the quarter with $27.1 billion in committed minimum future rental payments.
  • To date, 52% of the lease deferrals granted have been repaid, representing $126.9 million.

Headline financials

Total Revenue

$492M

Previous: $521M-5.7%
EPS (adj)

$1.10

Previous: $1.71-35.7%
Net book value fleet

$21.5B

Previous: $19.1B+12.6%
Weighted avg fleet age

4.3

Previous: 3.9+10.3%
Weighted avg lease term

6.9

Previous: 7-1.4%
Capital Expenditures

-$102M

Previous: -$88.1M-16.1%
Free Cash Flow

-$8.88M

Previous: $59.5M-114.9%
Net Income

$93.4M

Previous: $148M-36.7%
Operating Income

$115M

Previous: $184M-37.7%
Gross Profit

$492M

Previous: $521M-5.7%
Cash & Equivalents

$1.21B

Previous: $926M+30.6%
Total Assets

$25.8B

Previous: $23B+12.0%
Stock-Based Comp

$6.7M

Previous: $3.89M+72.1%

Revenue & EPS history

ALC · Revenue · Quarterly

$492M

Q2 2021-5.7%vs Q2 2020
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

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

  • Rental of flight equipment
    $561M

Forward guidance

The airline industry is improving with passenger traffic staging a robust recovery in the U.S.A., Mexico, China, Russia, and most of Europe.

Tailwinds

  • Passenger traffic is staging a robust recovery in the U.S.A., Mexico, China, Russia, and most of Europe.
  • Pent up demand is resulting in rapid and strong recovery when and where travel restrictions are lifted.
  • Canada opening its borders should provide a further stimulant to North America.
  • Strong freight and e-commerce demand is aiding airline recovery globally, which is particularly beneficial for our widebody customers in Asia and Europe.
  • Fitch Ratings reaffirmed our corporate and long-term debt ratings at BBB and upgraded our outlook to stable.

Headwinds

  • International and long haul traffic at a much slower recovery rate.
  • Outside of China, Asia overall lags in traffic recovery and vaccination rates.
  • Still face some customer and OEM challenges in the near term.
  • Airline profitability impacted by manufacturing delays and the impact of COVID-19.
  • Aircraft delivery schedule could continue to be subject to material changes and delivery delays could potentially extend well into 2022 and beyond.

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 Q2 2021

Historical avgQ2 2021

+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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