Air Lease Corporation (AL) has reported an 8.53 percent fall in profit for the quarter ended Mar. 31, 2017. The company has earned $84.94 million, or $0.78 a share in the quarter, compared with $92.86 million, or $0.85 a share for the same period last year. Revenue during the quarter grew 4.91 percent to $360.19 million from $343.33 million in the previous year period. Total expenses were 44.34 percent of quarterly revenues, up from 34.19 percent for the same period last year. That has resulted in a contraction of 1015 basis points in operating margin to 55.66 percent.
“Our forward lease placements and leasing business continued to perform well with consistently high margins. During the first quarter, we successfully focused on a strategic opportunity to sell and manage a portfolio of 19 mid-life aircraft. We took advantage of favorable market conditions by issuing a 10 year bond and upsized our bank revolver. Looking forward, we are continuing to capitalize on incremental aircraft acquisition opportunities to help offset further delays on Airbus deliveries,” said John L. Plueger, Chief Executive Officer and President.
Operating cash flow falls marginally
Air Lease Corporation has generated cash of $219.66 million from operating activities during the quarter, down 3.55 percent or $ 8.08 million, when compared with the last year period. The company has spent $752.43 million cash to meet investing activities during the quarter as against cash outgo of $520.36 million in the last year period. It has incurred capital expenditure of $752.43 million on net basis during the quarter, up 44.60 percent or $232.06 million from year ago period.
Cash flow from financing activities was $413.72 million for the quarter, up 38.48 percent or $114.96 million, when compared with the last year period.
Cash and cash equivalents stood at $155.76 million as on Mar. 31, 2017, down 4.33 percent or $7.06 million from $162.81 million on Mar. 31, 2016.
Debt moves up
Air Lease Corporation has witnessed an increase in total debt over the last one year. It stood at $9,102.69 million as on Mar. 31, 2017, up 13.54 percent or $1,085.19 million from $8,017.50 million on Mar. 31, 2016. Total debt was 62.88 percent of total assets as on Mar. 31, 2017, compared with 62.72 percent on Mar. 31, 2016. Debt to equity ratio was at 2.63 as on Mar. 31, 2017, up from 2.58 as on Mar. 31, 2016. Interest coverage ratio deteriorated to 2.64 for the quarter from 3.32 for the same period last year.
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