·

Generated record adjusted diluted EPS of $4.64 for the year ended December 31, 2015, an increase of 15.1% as compared to $4.03 for the year ended December 31, 2014. Recorded adjusted diluted EPS of $1.21 for the three months ended December 31, 2015, an increase of 11.0% as compared to $1.09 for the three months ended December 31, 2014.

·

Generated record revenues of $1.2 billion for the year ended December 31, 2015, an increase of 16.4% or $172.3 million as compared to $1.1 billion for the year ended December 31, 2014. Recorded revenues of $326.7 million for the three months ended December 31, 2015, an increase of 14.3% or $40.8 million as compared to $285.9 million for the three months ended December 31, 2014.

·

Generated record adjusted net income of $508.0 million for the year ended December 31, 2015, an increase of 15.8%, as compared to $438.6 million for the year ended December 31, 2014. Recorded adjusted net income of $132.6 million for the three months ended December 31, 2015, an increase of 11.6%, as compared to $118.8 million for the three months ended December 31, 2014.

·

Signed agreements for 120 aircraft with 46 customers across 35 countries during the year ended December 31, 2015, which increased our contracted rentals to $20.9 billion across our current and committed fleet.

·

Entered into an agreement to sell our entire fleet of 25 ATR aircraft to Nordic Aviation Capital A/S ("NAC").  A majority of the aircraft transfers are anticipated to occur during the first half of 2016.

·

Declared a quarterly cash dividend of $0.05 per share on our outstanding common stock.  The dividend will be paid on April 5, 2016 to holders of record of our common stock as of March 21, 2016.

Three Months Ended
December 31,

Twelve Months Ended
December 31,

2015

2014

$ change

% change

2015

2014

$ change

% change

Revenues

$

$

$

%  

$

$

$

%

Income before taxes

$

$

$

%  

$

$

$

%

Net income

$

$

$

%  

$

$

$

%

Adjusted net income(1)

$

$

$

%  

$

$

$

%

Diluted EPS

$

$

$

%  

$

$

$

%

Adjusted diluted EPS(1)

$

$

$

%  

$

$

$

%

(1)

Adjusted net income and adjusted diluted earnings per share have been adjusted to exclude the effects of certain non-cash items, one-time or non-recurring items, such as settlement expense, net of recoveries, that are not expected to continue in the future and certain other items. See note 1 under the Consolidated Statements of Income included in this earnings release for a discussion of the non-GAAP measures adjusted net income and adjusted diluted EPS.

December 31, 2015

December 31, 2014

Fleet size

Managed fleet

Order book

Weighted-average fleet age(1)

3.6 years

3.5 years

Weighted-average remaining lease term(1)

7.2 years

7.3 years

Aggregate fleet net book value

$

10.8 billion

$

9.0 billion

Current fleet contracted rentals

$

8.9 billion

$

7.5 billion

Committed fleet rentals

$

12.0  billion

$

9.0 billion

Total committed rentals

$

20.9 billion

$

16.5 billion

(1)

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

December 31, 2015

December 31, 2014

Region

% of Net Book Value

% of Net Book Value

Europe

%  

%

China

%  

%

Asia (excluding China)

%  

%

The Middle East and Africa

%  

%

Central America, South America and Mexico

%  

%

U.S. and Canada

%  

%

Pacific, Australia, New Zealand

%  

%

Total

%  

%

December 31, 2015

December 31, 2014

Aircraft type

Number of
Aircraft

% of Total

Number of
Aircraft

% of Total

Airbus A319/320/321

%  

%

Airbus A330-200/300

%  

%

Boeing 737-700/800

%  

%

Boeing 767-300ER

%  

%

Boeing 777-200ER

%

%

Boeing 777-300ER

%  

%

Embraer E175/190

%  

%

ATR 42/72-600

%  

%

Total

%  

%

December 31, 2015

December 31, 2014

Unsecured

Senior notes

$

$

Revolving credit facility

Term financings

Convertible senior notes

Total unsecured debt financing

$

$

Secured

Term financings

$

$

Warehouse facilities

Export credit financing

Total secured debt financing

$

$

Total secured and unsecured debt financing

$

$

Less: Debt discounts and issuance costs

Debt financing, net of discounts and issuance costs(1)

$

$

Selected interest rates and ratios:

Composite interest rate

%  

%

Composite interest rate on fixed rate debt

%  

%

Percentage of total debt at fixed rate

%  

%

(1)

Pursuant to the early adoption of ASU No. 2015-03, Interest-Imputation of Interest, debt issuance costs have been presented as a direct deduction from the carrying amount of the related debt liability.  This change has been applied retrospectively.

Investors:

Ryan McKenna

Vice President

Email: rmckenna@airleasecorp.com

Media:

Laura St. John

Manager, Media and Investor Relations

Email: lstjohn@airleasecorp.com

·

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, 2015 and other SEC filings.

December 31, 2015

December 31, 2014

Assets

Cash and cash equivalents

$

$

Restricted cash

Flight equipment subject to operating leases

Less accumulated depreciation

Deposits on flight equipment purchases

Other assets

Total assets

$

$

Liabilities and Shareholders’ Equity

Accrued interest and other payables

$

Debt financing, net of discounts and issuance costs

Security deposits and maintenance reserves on flight equipment leases

Rentals received in advance

Deferred tax liability

Total liabilities

$

$

Shareholders’ Equity

Preferred Stock, $0.01 par value; 50,000,000 shares authorized; no shares issued or outstanding

— 

—

Class A common stock, $0.01 par value; authorized 500,000,000 shares; issued and outstanding 102,582,669 and 102,392,208 shares at December 31, 2015 and December 31, 2014, respectively

Class B Non-Voting common stock, $0.01 par value; authorized 10,000,000 shares; no shares issued or outstanding

— 

—

Paid-in capital

Retained earnings

Total shareholders’ equity

$

$

Total liabilities and shareholders’ equity

$

$

Three Months Ended
December 31,

Year Ended
December 31,

2015

2014

2015

2014

Revenues

(unaudited)

Rental of flight equipment

$

$

$

$

Aircraft sales, trading and other

Total revenues

Expenses

Interest

Amortization of debt discounts and issuance costs

Interest expense

Depreciation of flight equipment

Settlement

— 

— 

— 

Selling, general and administrative

Stock-based compensation

Total expenses

Income before taxes

Income tax expense

Net income

$

$

$

$

Adjusted net income(1)

$

$

$

$

Net income per share of Class A and Class B common stock:

Basic earnings per share

$

$

$

$

Diluted earnings per share

$

$

$

$

Adjusted diluted earnings per share(1)

$

$

$

$

Three Months Ended
December 31,

Year Ended
December 31,

2015

2014

2015

2014

Reconciliation of net income to adjusted net income:

(unaudited)

Net income

$

$

$

$

Amortization of debt discounts and issuance costs

Stock-based compensation

Settlement

— 

— 

— 

Insurance recovery on settlement

— 

— 

Provision for income taxes

Adjusted net income

$

$

$

$

Three Months Ended
December 31,

Year Ended
December 31,

2015

2014

2015

2014

Reconciliation of net income to adjusted diluted earnings per share:

(unaudited)

Net income

$

$

$

$

Amortization of debt discounts and issuance costs

Stock-based compensation

Settlement

—

—

—

Insurance recovery on settlement

—

—

Provision for income taxes

Adjusted net income

$

$

$

$

Assumed conversion of convertible senior notes

Adjusted net income plus assumed conversions

$

$

$

$

Weighted-average diluted shares outstanding

Adjusted diluted earnings per share

$

$

$

$

Year Ended
December 31, 2015

Year Ended
December 31, 2014

Operating Activities

Net income

$

$

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation of flight equipment

Stock-based compensation

Deferred taxes

Tax benefits from stock-based compensation arrangements

—

Amortization of discounts and debt issuance costs

Gain on aircraft sales, trading and other activity

Changes in operating assets and liabilities:

Other assets

Accrued interest and other payables

Rentals received in advance

Net cash provided by operating activities

Investing Activities

Acquisition of flight equipment under operating lease

Payments for deposits on flight equipment purchases

Proceeds from aircraft sales, trading and other activity

Acquisition of furnishings, equipment and other assets

Net cash used in investing activities

Financing Activities

Issuance of common stock upon exercise of options

Cash dividends paid

Tax withholdings on stock-based compensation

Tax benefits from stock-based compensation arrangements

—

Net change in unsecured revolving facilities

Proceeds from debt financings

Payments in reduction of debt financings

Net change in restricted cash

Debt issuance costs

Security deposits and maintenance reserve receipts

Security deposits and maintenance reserve disbursements

Net cash provided by financing activities

Net increase (decrease) in cash

Cash and cash equivalents at beginning of period

Cash and cash equivalents at end of period

$

$

Supplemental Disclosure of Cash Flow Information

Cash paid during the period for interest, including capitalized interest of $40,118 and $42,775 at December 31, 2015 and 2014, respectively

$

$

Supplemental Disclosure of Noncash Activities

Buyer furnished equipment, capitalized interest, deposits on flight equipment purchases and seller financing applied to acquisition of flight equipment and other assets applied to payments for deposits on flight equipment purchases

$

$

Cash dividends declared, not yet paid

$

$