Fourth Quarter and Fiscal Year 2022 Results
The following table summarizes our operating results for the three months and year ended December 31, 2022 and 2021 (in millions, except per share amounts and percentages):
Operating Results
| Three Months Ended |
| Year Ended | |||||||||||||||||||||||||||
| 2022 |
| 2021 |
| $ change |
| % change |
| 2022 |
| 2021 |
| $ change |
| % change | |||||||||||||||
Revenues | $ | 601.6 |
|
| $ | 597.2 |
|
| $ | 4.4 |
|
| 0.7 | % |
| $ | 2,317.3 |
|
| $ | 2,088.4 |
|
| $ | 228.9 |
|
| 11.0 | % | |
Operating expenses |
| (452.3 | ) |
|
| (408.8 | ) |
|
| (43.5 | ) |
| 10.6 | % |
|
| (1,684.6 | ) |
|
| (1,547.4 | ) |
|
| (137.2 | ) |
| 8.9 | % | |
Recovery/(write-off) of Russian fleet |
| 30.9 |
|
|
| — |
|
|
| 30.9 |
|
| 100.0 | % |
|
| (771.5 | ) |
|
| — |
|
|
| (771.5 | ) |
| 100.0 | % | |
Income/(loss) before taxes |
| 180.2 |
|
|
| 188.4 |
|
|
| (8.2 | ) |
| (4.4 | ) % |
|
| (138.8 | ) |
|
| 541.0 |
|
|
| (679.8 | ) |
| (125.7 | ) % | |
Net income/(loss) attributable to common stockholders | $ | 134.9 |
|
| $ | 142.3 |
|
| $ | (7.4 | ) |
| (5.2 | ) % |
| $ | (138.7 | ) |
| $ | 408.2 |
|
| $ | (546.9 | ) |
| (134.0 | ) % | |
Diluted earnings/(loss) per share | $ | 1.21 |
|
| $ | 1.24 |
|
| $ | (0.03 | ) |
| (2.4 | ) % |
| $ | (1.24 | ) |
| $ | 3.57 |
|
| $ | (4.81 | ) |
| (134.7 | ) % | |
Adjusted net income before income taxes(1) | $ | 158.2 |
|
| $ | 200.1 |
|
| $ | (41.9 | ) |
| (20.9 | ) % |
| $ | 659.9 |
|
| $ | 589.7 |
|
| $ | 70.2 |
|
| 11.9 | % | |
Adjusted diluted earnings per share before income taxes(1) | $ | 1.42 |
|
| $ | 1.75 |
|
| $ | (0.33 | ) |
| (18.9 | ) % |
| $ | 5.89 |
|
| $ | 5.15 |
|
| $ | 0.74 |
|
| 14.4 | % | |
Key Financial Ratios
| Three Months Ended |
| Year Ended | |||||
| 2022 |
| 2021 |
| 2022 |
| 2021 | |
Pre-tax margin | 29.9% |
| 31.5% |
| (6.0)% |
| 25.9% | |
Adjusted pre-tax margin(1) | 26.3% |
| 33.5% |
| 28.5% |
| 28.2% | |
Pre-tax return on common equity (trailing twelve months) |
|
|
|
| (3.0)% |
| 8.6% | |
Adjusted pre-tax return on common equity (trailing twelve months)(1) |
|
|
|
| 11.0% |
| 9.8% | |
(1) | Adjusted net income before income taxes, adjusted diluted earnings per share before income taxes, adjusted pre-tax margin and adjusted pre-tax return on common equity have been adjusted to exclude the effects of certain non-cash items, one-time or non-recurring items, such as write-offs of our Russian fleet, that are not expected to continue in the future and certain other items. See note 1 under the Consolidated Statements of Operations included in this earnings release for a discussion of the non-GAAP measures and a reconciliation to their most comparable GAAP financial measures. |
As of December 31, 2022, we had 417 aircraft in our owned fleet, with a net book value of $24.5 billion, a weighted average age of 4.5 years and a weighted average lease term remaining of 7.1 years. During the fourth quarter, we took delivery of 16 aircraft from our order book, representing approximately $1.0 billion in aircraft investments, ending the period with over $28 billion in total assets.Sold five aircraft during the quarter for approximately $211 million in proceeds.In October 2022, we recovered one Boeing 737-8 MAX aircraft previously detained in Russia, resulting in an approximately $31 million offset to the write-off line item in our income statement.Placed 90% of our contracted orderbook positions on long-term leases for aircraft delivering through the end of 2024 and have placed 60% of our entire orderbook.Ended the year with $31.4 billion in committed minimum future rental payments consisting of $15.6 billion in contracted minimum rental payments on the aircraft in our existing fleet and $15.8 billion in minimum future rental payments related to aircraft on order.Issued $2.2 billion of senior unsecured Medium-Term Notes in 2022 with a weighted average interest rate of 3.59% and ended the year with total liquidity of $6.9 billion.On February 14, 2023, our board of directors declared a quarterly cash dividend of $0.20 per share on our outstanding common stock. The next quarterly dividend of $0.20 per share will be paid on April 12, 2023 to holders of record of our common stock as of March 16, 2023.
The following table details the composition of our flight equipment subject to operating leases by aircraft type:
|
| December 31, 2022 |
| December 31, 2021 | ||||
Aircraft type |
| Number of |
| % of Total |
| Number of |
| % of Total |
Airbus A220-300 |
| 4 |
| 1.0 % |
| — |
| — % |
Airbus A319-100 |
| 1 |
| 0.2 % |
| 1 |
| 0.3 % |
Airbus A320-200 |
| 28 |
| 6.7 % |
| 31 |
| 8.1 % |
Airbus A320-200neo |
| 23 |
| 5.5 % |
| 23 |
| 6.0 % |
Airbus A321-200 |
| 23 |
| 5.5 % |
| 26 |
| 6.8 % |
Airbus A321-200neo |
| 78 |
| 18.7 % |
| 69 |
| 18.1 % |
Airbus A330-200 |
| 13 |
| 3.1 % |
| 13 |
| 3.4 % |
Airbus A330-300 |
| 5 |
| 1.2 % |
| 8 |
| 2.1 % |
Airbus A330-900neo |
| 16 |
| 3.8 % |
| 9 |
| 2.4 % |
Airbus A350-900 |
| 13 |
| 3.1 % |
| 12 |
| 3.1 % |
Airbus A350-1000 |
| 6 |
| 1.4 % |
| 5 |
| 1.3 % |
Boeing 737-700 |
| 4 |
| 1.0 % |
| 4 |
| 1.0 % |
Boeing 737-800 |
| 82 |
| 19.7 % |
| 88 |
| 23.0 % |
Boeing 737-8 MAX |
| 47 |
| 11.3 % |
| 28 |
| 7.3 % |
Boeing 737-9 MAX |
| 15 |
| 3.7 % |
| 7 |
| 1.8 % |
Boeing 777-200ER |
| 1 |
| 0.2 % |
| 1 |
| 0.3 % |
Boeing 777-300ER |
| 24 |
| 5.8 % |
| 24 |
| 6.3 % |
Boeing 787-9 |
| 27 |
| 6.5 % |
| 26 |
| 6.8 % |
Boeing 787-10 |
| 6 |
| 1.4 % |
| 6 |
| 1.6 % |
Embraer E190 |
| 1 |
| 0.2 % |
| 1 |
| 0.3 % |
Total (1) |
| 417 |
| 100.0 % |
| 382 |
| 100.0 % |
|
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(1) As of December 31, 2022, we had four aircraft classified as flight equipment held for sale. As of December 31, 2021, we did not have any flight equipment classified as held for sale. | ||||||||