Upcoming AWS Coverage on Red Rock Resorts Post-Earnings Results

LONDON, UK / ACCESSWIRE / March 13, 2017 / Active Wall St. announces its post-earnings coverage on Air Lease Corp. (NYSE: AL). The Company announced its fourth quarter and fiscal 2016 financial results on February 23, 2017. The Company that leases planes to airlines outperformed top- and bottom-line expectations. Register with us now for your free membership at:

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One of Air Lease's competitors within the Rental & Leasing Services space, Red Rock Resorts, Inc. (NASDAQ: RRR), released its financial results for Q4 and full year 2016 on Tuesday, March 07, 2017. AWS will be initiating a research report on Red Rock Resorts in the coming days.

Today, AWS is promoting its earnings coverage on AL; touching on RRR. Get our free coverage by signing up to:

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Earnings Performance

For the three months ended December 31, 2016, Air Lease generated revenue of $370.5 million, an increase of 13.4%. The Company's reported numbers surpassed analysts' consensus of $358.2 million. Air Lease recorded revenue of $1.4 billion for the full year 2016, an increase of 16.0% compared to the year ago same period.

For Q4 2016, Air Lease posted diluted earnings per share of $0.89, up 20.3% on a y-o-y basis. The Company's earnings, adjusted for pre-tax expenses and amortization costs, came in at $1.48 per share, exceeding Wall Street's expectations of $0.83 per share. Air Lease reported diluted EPS of $3.44 for FY16, reflecting an increase of 47.0%.

Adjusted diluted earnings per share before income taxes was $5.67 per share for the full year 2016, an increase of 22.2%, and $1.48 per share for Q4 2016, an increase of 22.3%. The Company's pre-tax return on equity was 18.1% for FY16.

Highlights

During the year ended December 31, 2016, Air Lease signed agreements for 122 aircraft with 39 customers across 33 countries. The Company ended the year with a net book value of $12.0 billion in aircraft with a weighted average age of 3.8 years and a weighted average lease term remaining of 6.9 years.

Air Lease's minimum future contracted rentals of its current and future fleet increased to $23.8 billion. The Company placed 92% of its order book on long-term leases for aircraft delivering through 2019.

Air Lease sold 46 aircraft for proceeds of $1.2 billion during the year ended December 31, 2016, including the completion of sales for all of its remaining ATR aircraft and 20 of the Company's 25 Embraer aircraft to Nordic Aviation Capital. During the year ended December 31, 2016, Air Lease took delivery of 43 aircraft from its order book.

As of December 31, 2016, Air Lease's fleet was comprised of 237 owned aircraft, with a weighted-average age and remaining lease term of 3.8 years and 6.9 years, respectively, and 30 managed aircraft. The Company stated that it has a globally diversified customer-base of 85 airlines in 51 countries.

"We had a great fourth quarter and a terrific year, posting record financial results in a highly competitive lease market. Global passenger growth increased a healthy 6.3% in 2016 and continues to provide a fundamental stimulus to our business going forward. We continue to pursue strategic initiatives that build on our core competencies, and we enter 2017 with a tailwind from our new investment grade 'BBB' rating from Fitch," said John L. Plueger, Chief Executive Officer and President of Air Lease.

Balance Sheet

Air Lease ended Q4 2016 with total debt, net of discounts and issuance costs, of $8.7 billion resulting in a debt to equity ratio of 2.58:1. The Company's debt financing was comprised of unsecured debt of $8.1 billion, representing 92.4% of its debt portfolio as of December 31, 2016, compared to 88.4% as of December 31, 2015. Air Lease?s fixed rate debt represented 83.5% of our debt portfolio as of December 31, 2016, compared to 78.7% as of December 31, 2015. The Company's composite cost of funds decreased to 3.42% as of December 31, 2016, compared to 3.59% as of December 31, 2015.

Air Lease declared a quarterly cash dividend of $0.075 per share on its outstanding common stock for Q4 2016. The dividend will be paid on April 07, 2017, to holders of record of its common stock as of March 20, 2017.

$500 Million Public Offering

Air Lease announced the pricing on March 01, 2017, of its public offering of $500 million aggregate principal amount of 3.625% unsecured senior notes due 2027. The Notes were offered to the public at a price of 98.241% of their face amount. The Notes will mature on April 01, 2027 and will bear interest at a rate of 3.625% per annum, payable semi-annually in arrears on April 01 and October 01 of each year, commencing on October 01, 2017. The Company intends to use the net proceeds of the offering for general corporate purposes, which may include, among other things, the purchase of commercial aircraft and the repayment of existing indebtedness.

Stock Performance

On Friday, March 10, 2017, the stock closed the trading session at $38.81, slightly climbing 0.70% from its previous closing price of $38.54. A total volume of 620.84 thousand shares have exchanged hands. Air Lease's stock price rallied 4.98% in the last month, 6.43% in the past three months, and 29.85% in the previous six months. Furthermore, since the start of the year, shares of the Company have surged 13.05%. The stock is trading at a PE ratio of 11.30 and has a dividend yield of 0.77%.

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