During the third quarter, Air Lease Corporation reported another consecutive quarter of fleet, revenue and profitability growth. Diluted EPS increased 26% to $0.58 per share for the three months ended September 30, 2014 compared to $0.46 per share for the three months ended September 30, 2013.
Revenues increased 21% to $262 million for the three months ended September 30, 2014 compared to $216 million for the three months ended September 30, 2013. Income before taxes increased 29% to $96 million with a pretax profit margin of 37% for the three months ended September 30, 2014 compared to income before taxes of $75 million with a pretax profit margin of 35% for the three months ended September 30, 2013. ALC recorded $8.8 million in gains on aircraft sales, trading and other activity.
The lessor completed two senior unsecured notes offerings in September 2014 totaling $1 billion, comprised of $500 million due 2018 at 2.125% and $500 million due 2024 at $4.25%.
ALC’s Board of Directors declared a quarterly cash dividend of $0.04 per share on its outstanding common stock, representing a $0.01 increase from the previous quarterly cash dividend. The dividend will be paid on January 5, 2015.
“In the third quarter, ALC continued along its steady growth path by increasing revenues and profitability once again. Our business remains strong. This past week ALC partnered with Napier Park Global Capital (US) LP in a new aircraft leasing joint venture called Blackbird Capital I, with the objective of acquiring approximately $2 billion of aircraft over the next 24 months with ALC managing those aircraft for many years in the future. This partnership will significantly grow our management business and allow us another tool to better serve our airline customers,” said Steven F . Udvar-Házy, Chairman and Chief Executive Officer of Air Lease Corporation.
“Despite global headlines, we continue to see an overall healthy aviation ecosystem highlighted by growing passenger traffic and demand exceeding supply for our modern, fuel efficient jets. Sales of used aircraft continues at good levels. We delivered nine new aircraft from our pipeline during the quarter and sold four aircraft for a gain of $8.8 million. Capital access for investment grade companies remains strong. We issued $1 billion in senior unsecured notes including a $500 million 10 year issuance at attractive terms,” said John L. Plueger, President and Chief Operating Officer of Air Lease Corporation.