Air Lease Corporation (AL) has reported a 21.07 percent rise in profit for the quarter ended Sep. 30, 2016. The company has earned $93.28 million, or $0.86 a share in the quarter, compared with $77.04 million, or $0.71 a share for the same period last year.
Revenue during the quarter grew 13.41 percent to $355.10 million from $313.13 million in the previous year period. Total expenses were 38.79 percent of quarterly revenues, down from 40.24 percent for the same period last year. This has led to an improvement of 146 basis points in operating margin to 61.21 percent.
Operating income for the quarter was $217.37 million, compared with $187.11 million in the previous year period.
“Our business continues its strong performance with our adjusted pre-tax return on equity increasing to 19% this quarter, the highest in our company history. S&P has recognized our growing strength by recently upgrading us from BBB- to BBB. Demand for our delivery positions remains solid; in particular, we see no slowing of lease appetite globally, and our twin-aisle placements have kept pace with our single-aisle placements. The sales program of our ATR and E-jet fleet to NAC is on track. We continue to see steady demand from buyers for our other aircraft,” said John L. Plueger, chief executive officer and president.
Operating cash flow improves significantly
Air Lease Corporation has generated cash of $761.48 million from operating activities during the nine month period, up 29.82 percent or $174.92 million, when compared with the last year period.
The company has spent $1,594.58 million cash to meet investing activities during the nine month period as against cash outgo of $1,678.58 million in the last year period.
Cash flow from financing activities was $903.25 million for the nine month period, down 2.76 percent or $25.67 million, when compared with the last year period.
Cash and cash equivalents stood at $226.82 million as on Sep. 30, 2016, up 89.46 percent or $107.10 million from $119.72 million on Sep. 30, 2015.
Working capital drops significantly
Air Lease Corporation has witnessed a decline in the working capital over the last year. It stood at $243.88 million as at Sep. 30, 2016, down 40.29 percent or $164.53 million from $408.42 million on Sep. 30, 2015.
Debt moves up
Air Lease Corporation has witnessed an increase in total debt over the last one year. It stood at $8,554.73 million as on Sep. 30, 2016, up 14.09 percent or $1,056.49 million from $7,498.24 million on Sep. 30, 2015. Total debt was 62.53 percent of total assets as on Sep. 30, 2016, compared with 62.95 percent on Sep. 30, 2015. Debt to equity ratio was at 2.60 as on Sep. 30, 2016, up from 2.55 as on Sep. 30, 2015. Interest coverage ratio improved to 2.99 for the quarter from 2.77 for the same period last year.
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