AL Air Lease Corporation

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934

February 26, 2015

Date of Report

(Date of earliest event reported)

AIR LEASE CORPORATION

(Exact name of registrant as specified in its charter)

Registrant’s telephone number, including area code: (310) 553-0555

Not Applicable

(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02                                           Results of Operations and Financial Condition.

On February 26, 2015, Air Lease Corporation (the “Company”) issued a press release announcing its financial results for the three and twelve months ended December 31, 2014.

The information in this Item 2.02 and the related information in Exhibit 99.1 attached hereto shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section, and shall not be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

Item 9.01                                           Financial Statements and Exhibits

(d)   Exhibits

Exhibit 99.1                                  Press release dated February 26, 2015

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SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

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EXHIBIT INDEX

99.1                                                 Press release dated February 26, 2015

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Exhibit 99.1

Air Lease Corporation Announces Fiscal Year and Fourth Quarter 2014 Results

Los Angeles, California, February 26, 2015 — Air Lease Corporation (ALC) (NYSE: AL) announced today financial results for the year and three months ended December 31, 2014.

Highlights

Air Lease Corporation reported another consecutive quarter of  record fleet, revenue and profitability growth:

·                    Diluted EPS increased 32% to $2.38 per share for the year ended December 31, 2014 compared to $1.80 per share for the year ended December 31, 2013. Diluted EPS increased 18% to $0.65 per share for the three months ended December 31, 2014 compared to $0.55 per share for the three months ended December 31, 2013.

·                    Revenues increased 22% to $1 billion for the year ended December 31, 2014 compared to $859 million for the year ended December 31, 2013. Revenues increased 18% to $286 million for the three months ended December 31, 2014 compared to $243 million for the three months ended December 31, 2013.

·                    Income before taxes increased 35% to $395 million with a pretax profit margin of 38% for the year ended December 31, 2014 compared to income before taxes of $293 million with a pretax profit margin of 34% for the year ended December 31, 2013. Income before taxes increased 19% to $108 million with a pretax profit margin of 38% for the three months ended December 31, 2014 compared to income before taxes of $91 million with a pretax profit margin of 37% for the three months ended December 31, 2013.

·                    Recorded $20 million in gains on aircraft sales, trading and other activity for the three months ended December 31, 2014 compared to $17 million in gains on aircraft sales, trading and other activity for the three months ended December 31, 2013.

·                    In January 2015, the Company became the launch customer for the Airbus A321LR.

·                    Our Board of Directors declared a quarterly cash dividend of $0.04 per share on our outstanding common stock. The dividend will be paid on April 7, 2015 to holders of record of our common stock as of March 20, 2015.

The following table summarizes the results for the three months and years ended December 31, 2014 and 2013 (in thousands, except share amounts):

“Air Lease Corporation concluded 2014 by generating over $1 billion in annual revenue for the very first time. At the same time, we delivered record profitability with a 38% pre-tax profit margin. Air Lease is now celebrating its fifth birthday as a Company and we are pleased with the consistency of our financial and operating results since inception. ALC’s business prospects look strong as the demand for our new technology aircraft remains robust” said Steven F. Udvar-Házy, Chairman and Chief Executive Officer of Air Lease Corporation.

“Global passenger traffic grew 5.9% in 2014, continuing the strong global trends which underpin the need for aircraft.  The market is healthy for new aircraft and we see a great deal of interest in the used market as well.  We seized on opportunities during the quarter, recording gains of $20 million on sales, trading and other activity.  We kicked off 2015 by issuing a $600 million seven year senior unsecured investment grade bond, with a fixed interest rate of 3.75%.  This issuance continues our trend of raising attractively priced long dated financing and enhancing our investment grade credit profile,” said John L. Plueger, President and Chief Operating Officer of Air Lease Corporation.

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Flight Equipment Portfolio

As of December 31, 2014, we owned 213 aircraft in our operating lease portfolio and we leased the aircraft to a globally diversified customer base of 77 airlines in 46 countries. During the quarter ended December 31, 2014, we delivered nine aircraft from our new order pipeline. In addition, we sold eight aircraft from our operating lease portfolio during the quarter ended December 31, 2014. As of December 31, 2014, we managed 17 aircraft for third parties.

Below are portfolio metrics of our fleet as of December 31, 2014 and December 31, 2013:

(1)   Weighted-average fleet age and remaining lease term calculated based on net book value.

The following table sets forth the percentage of net book value of our aircraft portfolio in the indicated regions as of December 31, 2014 and December 31, 2013:

The following table sets forth the number of aircraft we leased by aircraft type as of December 31, 2014 and December 31, 2013:

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Debt Financing Activities

We ended 2014 with total debt outstanding of $6.7 billion as compared to $5.9 billion as of December 31, 2013.  We ended 2014 with total unsecured debt outstanding of $5.5 billion compared to $4.3 billion as of December 31, 2013, increasing the Company’s unsecured debt as a percentage of total debt to 82.3% as of December 31, 2014 compared to 73.4% as of December 31, 2013. The Company’s fixed rate debt as a percentage of total debt increased to 75.2% as of December 31, 2014 from 61.9% as of December 31, 2013. Since the end of 2014, we issued $600.0 million in senior unsecured notes maturing in 2022 with a fixed interest rate of 3.75%.

We ended 2014 with a debt to equity ratio of 2.42:1 and available liquidity of $2.1 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 December 31, 2014 and December 31, 2013 (dollars in thousands):

(1)This rate does not include the effect of upfront fees, undrawn fees or issuance cost amortization.

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Conference Call

In connection with the earnings release, Air Lease Corporation will host a conference call on February 26, 2015 at 4:30 PM Eastern Time to discuss the Company’s year end financial results for 2014.

Investors can participate in the conference call by dialing (800) 299-9630 domestic or (617) 786-2904 international. The passcode for the call is 38284996.

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 February 26, 2015 until 11:59 PM ET on March 5, 2015. 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 66254088.

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.

Contact

Investors:

Ryan McKenna
Vice President  
Email: rmckenna@airleasecorp.com

Media:

Laura St. John
Manager, Media and Investor Relations  
Email: lstjohn@airleasecorp.com

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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 sell aircraft on favorable terms, including to the Company’s recently formed joint venture;

·      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, 2014 and other SEC filings

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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.

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Air Lease Corporation and Subsidiaries

CONSOLIDATED BALANCE SHEETS

(In thousands, except share and par value amounts)

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Air Lease Corporation and Subsidiaries

CONSOLIDATED BALANCE SHEETS

(In thousands, except share amounts)

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Air Lease Corporation and Subsidiaries

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

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