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Air Lease Corporation Announces Third Quarter 2012 Results

  Air Lease Corporation Announces Third Quarter 2012 Results

Business Wire

LOS ANGELES -- November 08, 2012

Air Lease Corporation (ALC) (NYSE: AL) announced today the results of its
operations for the three and nine months ended September 30, 2012.

Highlights

Air Lease Corporation reports another consecutive quarter of fleet, revenue,
profitability and financing growth:

  *Doubled diluted EPS to $0.36 per share in the third quarter of 2012
    compared to $0.18 in the third quarter of 2011. Diluted EPS increased 173%
    to $0.90 per share for the nine months ended September 30, 2012 compared
    to $0.33 per share for the nine months ended September 30, 2011.
  *Delivered five aircraft from our order book, growing our fleet to 142
    aircraft, cost now exceeds $6 billion and is spread across a diverse and
    balanced customer base of 66 airlines and 37 countries.
  *Completed successful senior unsecured notes offering of $500 million due
    2016 bearing interest at a rate of 4.5%.

The following table summarizes the results for the three and nine months ended
September 30, 2012 and 2011 (in thousands, except share amounts):

              Three Months Ended             Nine Months Ended
                September 30,                   September 30,
                2012       2011      %        2012       2011       %
                                       change                           change
Revenues        $ 174,925   $ 92,125   90%      $ 465,651   $ 221,684   110%
Income          $ 57,193    $ 28,341   102%     $ 142,687   $ 44,154    223%
before taxes
Net income      $ 37,011    $ 18,271   103%     $ 92,110    $ 28,470    224%
Cash
provided by     $ 132,276   $ 83,076   59%      $ 372,496   $ 166,197   124%
operating
activities
Diluted EPS     $ 0.36      $ 0.18     100%     $ 0.90      $ 0.33      173%
Adjusted net    $ 44,602    $ 25,122   78%      $ 115,415   $ 56,294    105%
income^(1)
Adjusted        $ 161,467   $ 79,954   102%     $ 422,683   $ 188,001   125%
EBITDA^(1)
^(1) See notes 1 and 2 to the Consolidated Statements of Income included in
this earnings release for a discussion of the non-GAAP measures adjusted net
income and adjusted EBITDA.


“We are pleased with ALC’s strong financial and operating performance this
quarter, resulting in doubled year over year EPS. Our business model and
fundamentals are producing results that exceed the internal plans laid out at
the Company’s founding. We continue to execute our robust growth trajectory
due to our contracted delivery stream that carries on into the next decade.
Although global macro concerns continue to exist, our experienced leadership
team has planned ALC’s business model from the outset to adapt to cyclical
changes in the industry,” said Steven F. Udvár-Hazy, Chairman and Chief
Executive Officer of Air Lease Corporation.

“We completed our final placements for 2013 and 2014, and now turn our
attention to the back half of 2015. ALC has on order the aircraft types that
the market demands and the financing rates have remained low, resulting in
yields that are in line with our plan. Our operating results follow our order
pipeline, whereby a large second quarter of deliveries drove the strong third
quarter revenue growth. As we have told you before, we have many aircraft in
our pipeline delivering to Asian operators and you can now start to see our
fleet concentration shifting in that direction. In particular, the major
Chinese airlines are beginning a replacement cycle for their first generation
western built aircraft, such as the Boeing 737-300/400,” said John L. Plueger,
President and Chief Operating Officer of Air Lease Corporation.

Fleet Growth

Building on our base of 137 aircraft at June 30, 2012, we added five aircraft
during the third quarter of 2012 and ended the quarter with 142 aircraft
spread across a diverse and balanced customer base of 66 airlines based in 37
countries.

Below are portfolio metrics of our fleet as of September 30, 2012 and December
31, 2011:

                                         September 30,      December 31,
                                          2012                2011
Fleet size                                142                 102
Weighted-average fleet age^(1)            3.4 years           3.6 years
Weighted-average remaining lease          7.0 years           6.6 years
term^(1)
Aggregate fleet cost                      $ 6.16 Billion      $ 4.37 Billion
^(1) Weighted-average fleet age and remaining lease term calculated based on
net book value.


Over 90% of our aircraft are operated internationally. The following table
sets forth the percentage of net book value of our aircraft portfolio in the
indicated regions as of September 30, 2012 and December 31, 2011:

                               September 30, 2012     December 31, 2011 
Region                          % of net book value     % of net book     
                                                           value
Europe                          38.6                %    40.6              %
Asia/Pacific                     35.6                      33.5              
Central America, South           12.3                      12.2              
America and Mexico
U.S. and Canada                  7.9                       9.1               
The Middle East and Africa      5.6                     4.6               
Total                           100.0               %    100.0             %
                                                                             

The following table sets forth the number of aircraft we leased by aircraft
type as of September 30, 2012 and December 31, 2011:

                      September 30, 2012   December 31, 2011
                       Number of  % of      Number of  % of
Aircraft type          aircraft    total     aircraft    total
Airbus A319/320/321    39          27  .5%   31          30  .4%
Airbus A330-200/300    17          12  .0    11          10  .8
Boeing 737-700/800     40          28  .2    38          37  .2
Boeing 767-300ER       3           2   .1    3           2   .9
Boeing 777-200/300ER   7           4   .9    5           4   .9
Embraer E175/190       28          19  .7    12          11  .8
ATR 72-600             8           5   .6    2           2   .0
Total                  142         100 .0%   102         100 .0%


We have made further progress in placing our aircraft. As of September 30,
2012, we have entered into contracts for the lease of all 70 aircraft
delivering through 2014, for nine new aircraft delivering in 2015 and for
eight new aircraft delivering after 2016.

Debt Financing Activities

During the third quarter of 2012, the Company entered into additional debt
facilities aggregating $546.4 million, which included $450.0 million in senior
unsecured notes, a $90.0 million addition to our Syndicated Unsecured
Revolving Credit Facility and additional unsecured term facilities aggregating
$6.4 million. We ended the quarter with total unsecured debt outstanding of
$2.5 billion. The Company’s unsecured debt as a percentage of total debt
increased to 58.6% as of September 30, 2012 from 31.7% as of December 31,
2011. We ended the third quarter of 2012 with a conservative balance sheet
with low leverage and ample available liquidity of $1.47 billion. As part of
our financing strategy we will continue to focus on financing the Company on
an unsecured basis.

We will continue to focus our financing efforts on raising unsecured debt
through the international and domestic capital markets, the global bank
market, reinvesting cash flow from operations and, to a limited extent,
secured financings including government guaranteed loan programs from the
European Export Credit Agencies in support of our new Airbus aircraft
deliveries, from Ex-Im Bank in support of our new Boeing aircraft deliveries
and direct financing from BNDES/SBCE in support of our new Embraer deliveries.

As of September 30, 2012, we had established a diverse lending group
consisting of 33 banks across four general types of lending facilities. The
Company’s debt financing was comprised of the following at September 30, 2012
and December 31, 2011 (dollars in thousands):

                             September 30, 2012        December 31, 2011
Secured
Term financings               $    675,245               $    735,285
Warehouse facilities              1,107,547                1,048,222    
Total secured debt                 1,782,792                  1,783,507
financing
Unsecured
Term financings                    268,301                    148,209
Convertible senior notes           200,000                    200,000
Senior notes                       1,725,000                  120,000
Revolving credit                  330,000                  358,000      
facilities
Total unsecured debt               2,523,301                  826,209
financing
                                                         
Total secured and                  4,306,093                  2,609,716
unsecured debt financing
Less: Debt discount               (10,017      )            (6,917       )
Total debt                        4,296,076            $    2,602,799    
                                                         
Selected interest rates
and ratios:
Composite interest                 3.97         %             3.14         %
rate^(1)
Composite interest rate            5.06         %             4.28         %
on fixed rate debt^(1)
Percentage of total debt           54.32        %             24.26        %
at fixed rate
^(1) Based on debt balances and rates in effect as of September 30, 2012 and
December 31, 2011. This rate does not include the effect of upfront fees,
undrawn fees or issuance cost amortization.


Conference Call

In connection with the earnings release, Air Lease Corporation will host a
conference call on November 8, 2012 at 4:30 PM Eastern Time to discuss the
Company’s third quarter 2012 financial results.

The earnings call will be broadcast live through a link on the Investor
Relations page of the Air Lease Corporation website at www.airleasecorp.com.
Please visit the website at least 15 minutes prior to the call to register,
download and install any necessary audio software. A replay of the broadcast
will be available on the Investor Relations page of the Air Lease Corporation
website.

About Air Lease Corporation

Air Lease Corporation is an aircraft leasing company based in Los Angeles,
Californiathat has airline customers throughout the world. ALC and its team
of dedicated and experienced professionalsare principally engaged in
purchasing commercial aircraft and leasing them toits airline partners
worldwide through customized aircraft leasing and financing solutions. For
more information, visitALC’s website at www.airleasecorp.com.

Forward-Looking Statements

Statements in this press release that are not historical facts are hereby
identified as “forward-looking statements,” including any statements about our
expectations, beliefs, plans, predictions, forecasts, objectives, assumptions
or future events or performance. These statements are often, but not always,
made through the use of words or phrases such as “anticipate,” “believes,”
“can,” “could,” “may,” “predicts,” “potential,” “should,” “will,” “estimate,”
“plans,” “projects,” “continuing,” “ongoing,” “expects,” “intends” and similar
words or phrases. These statements are only predictions and involve estimates,
known and unknown risks, assumptions and uncertainties that could cause actual
results to differ materially from those expressed in such statements,
including as a result of the following factors, among others:

  *our inability to make acquisitions of, or lease, aircraft on favorable
    terms;
  *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;
  *our inability to effectively deploy the net proceeds from our capital
    raising activities; and
  *potential natural disasters and terrorist attacks and the amount of our
    insurance coverage, if any, relating thereto.

All forward-looking statements are necessarily only estimates of future
results, and there can be no assurance that actual results will not differ
materially from expectations. You are therefore cautioned not to place undue
reliance on such statements. Any forward-looking statement speaks only as of
the date on which it is made, and we undertake no obligation to update any
forward-looking statement to reflect events or circumstances after the date on
which the statement is made or to reflect the occurrence of unanticipated
events.


Air Lease Corporation and Subsidiaries
CONSOLIDATED BALANCE SHEETS
(In thousands, except share and par value amounts)


                                                September 30,  December 31,
                                                 2012           2011
                                                 (unaudited)
Assets
Cash and cash equivalents                        $ 439,681       $ 281,805
Restricted cash                                    111,784         96,157
Flight equipment subject to operating leases       6,158,762       4,368,985
Less accumulated depreciation                     (286,374  )    (131,569  )
                                                   5,872,388       4,237,416
Deposits on flight equipment purchases             544,817         405,549
Deferred debt issue costs - less accumulated
amortization of $27,592 and $17,500 as of          76,603          47,609
September 30, 2012 and December 31, 2011,
respectively
Other assets                                      120,205       96,057    
Total assets                                     $ 7,165,478    $ 5,164,593 
                                                                 
Liabilities and Shareholders' Equity
Accrued interest and other payables              $ 95,240        $ 54,648
Debt financing                                     4,296,076       2,602,799
Security deposits and maintenance reserves on      380,272         284,154
flight equipment leases
Rentals received in advance                        36,953          26,017
Deferred tax liability                            71,265        20,692    
Total liabilities                                 4,879,806     2,988,310 
                                                                 
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 99,417,998 and 98,885,131 shares       991             984
at September 30, 2012 and December 31, 2011,
respectively
Class B Non-Voting Common Stock, $0.01 par
value; authorized 10,000,000 shares; issued        18              18
and outstanding 1,829,339 shares
Paid-in capital                                    2,191,361       2,174,089
Retained earnings                                 93,302        1,192     
Total shareholders' equity                        2,285,672     2,176,283 
Total liabilities and shareholders' equity       $ 7,165,478    $ 5,164,593 



Air Lease Corporation and Subsidiaries
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except share amounts)

                  Three Months Ended                 Nine Months Ended
                   September 30,                       September, 30
                   2012             2011              2012             2011
                   (unaudited)                         (unaudited)
Revenues
Rental of flight   $ 172,856         $ 90,476          $ 459,643         $ 219,092
equipment
Interest and        2,069           1,649           6,008           2,592      
other
Total revenues       174,925           92,125            465,651           221,684
                                                                         
Expenses
Interest             35,248            10,993            91,308            30,143
Amortization of
discounts and        4,595             2,308             11,553            6,972
deferred debt
issue costs
Extinguishment      —               —               —               3,349      
of debt
Interest expense     39,843            13,301            102,861           40,464
                                                                         
Depreciation of      57,932            30,657            154,805           73,431
flight equipment
Selling, general
and                  12,833            11,512            40,750            32,661
administrative
Stock-based         7,124           8,314           24,548          30,974     
compensation
Total expenses      117,732         63,784          322,964         177,530    
                                                                         
Income before        57,193            28,341            142,687           44,154
taxes
Income tax          (20,182     )    (10,070     )    (50,577     )    (15,684    )
expense
Net income         $ 37,011         $ 18,271         $ 92,110         $ 28,470     
                                                                         
Net income per
share of Class A
and Class B
Common Stock:
Basic              $ 0.37            $ 0.18            $ 0.91            $ 0.33
Diluted            $ 0.36            $ 0.18            $ 0.90            $ 0.33
Weighted-average
shares
outstanding:
Basic                101,247,337       100,714,470       100,906,094       85,845,031
Diluted              107,875,105       100,767,839       107,574,616       85,946,120
                                                                         
Other financial
data:
Adjusted net       $ 44,602          $ 25,122          $ 115,415         $ 56,294
income^(1)
Adjusted           $ 161,467         $ 79,954          $ 422,683         $ 188,001
EBITDA^(2)


^(1) Adjusted net income (defined as net income before stock-based
compensation expense and non-cash interest expense, which includes the
amortization of debt issuance costs and extinguishment of debt) is a measure
of both operating performance and liquidity that is not defined by United
States generally accepted accounting principles (“GAAP”) and should not be
considered as an alternative to net income, income from operations or any
other performance measures derived in accordance with GAAP. Adjusted net
income is presented as a supplemental disclosure because management believes
that it may be a useful performance measure that is used within our industry.
We believe adjusted net income provides useful information on our earnings
from ongoing operations, our ability to service our long-term debt and other
fixed obligations, and our ability to fund our expected growth with internally
generated funds. Set forth below is additional detail as to how we use
adjusted net income as a measure of both operating performance and liquidity,
as well as a discussion of the limitations of adjusted net income as an
analytical tool and a reconciliation of adjusted net income to our GAAP net
loss and cash flow from operating activities.

Operating Performance: Management and our board of directors use adjusted net
income in a number of ways to assess our consolidated financial and operating
performance, and we believe this measure is helpful in identifying trends in
our performance. We use adjusted net income as a measure of our consolidated
operating performance exclusive of income and expenses that relate to the
financing, income taxes, and capitalization of the business. Also, adjusted
net income assists us in comparing our operating performance on a consistent
basis as it removes the impact of our capital structure (primarily one-time
amortization of convertible debt discounts) and stock-based compensation
expense from our operating results. In addition, adjusted net income helps
management identify controllable expenses and make decisions designed to help
us meet our current financial goals and optimize our financial performance.
Accordingly, we believe this metric measures our financial performance based
on operational factors that we can influence in the short term, namely the
cost structure and expenses of the organization.

Liquidity: In addition to the uses described above, management and our board
of directors use adjusted net income as an indicator of the amount of cash
flow we have available to service our debt obligations, and we believe this
measure can serve the same purpose for our investors.

Limitations: Adjusted net income has limitations as an analytical tool, and
should not be considered in isolation, or as a substitute for analysis of our
operating results or cash flows as reported under GAAP. Some of these
limitations are as follows:

  *adjusted net income does not reflect (i)our cash expenditures or future
    requirements for capital expenditures or contractual commitments, or
    (ii)changes in or cash requirements for our working capital needs; and
  *our calculation of adjusted net income may differ from the adjusted net
    income or analogous calculations of other companies in our industry,
    limiting its usefulness as a comparative measure.

The following tables show the reconciliation of net income and cash flows from
operating activities, the most directly comparable GAAP measures of
performance and liquidity, to adjusted net income (in thousands):

                       Three Months Ended         Nine Months Ended
                        September 30,               September 30,
                        2012         2011          2012          2011
                        (unaudited)                 (unaudited)
Reconciliation of
cash flows from
operating activities
to adjusted net
income:
Net cash provided by    $ 132,276     $ 83,076      $ 372,496      $ 166,197
operating activities
Depreciation of           (57,932 )     (30,657 )     (154,805 )     (73,431 )
flight equipment
Stock-based               (7,124  )     (8,314  )     (24,548  )     (30,974 )
compensation
Deferred taxes            (20,182 )     (10,070 )     (50,573  )     (15,684 )
Amortization of
discounts and             (4,595  )     (2,308  )     (11,553  )     (6,972  )
deferred debt issue
costs
Extinguishment of         —             —             —              (3,349  )
debt
Changes in operating
assets and
liabilities:
Other assets              11,727        (900    )     20,114         15,427
Accrued interest and      (16,924 )     (10,444 )     (48,085  )     (13,465 )
other payables
Rentals received in      (235    )    (2,112  )    (10,936  )    (9,279  )
advance
Net income                37,011        18,271        92,110         28,470
Amortization of
discounts and             4,595         2,308         11,553         6,972
deferred debt issue
costs
Extinguishment of         —             —             —              3,349
debt
Stock-based               7,124         8,314         24,548         30,974
compensation
Tax effect               (4,128  )    (3,771  )    (12,796  )    (13,471 )
Adjusted net income     $ 44,602     $ 25,122     $ 115,415     $ 56,294  
                                                    
                                                    
                        Three Months Ended          Nine Months Ended
                        September 30,               September 30,
                        2012          2011          2012           2011
                        (unaudited)                 (unaudited)
Reconciliation of net
income to adjusted
net income:
Net income              $ 37,011      $ 18,271      $ 92,110       $ 28,470
Amortization of
discounts and             4,595         2,308         11,553         6,972
deferred debt issue
costs
Extinguishment of         —             —             —              3,349
debt
Stock-based               7,124         8,314         24,548         30,974
compensation
Tax effect               (4,128  )    (3,771  )    (12,796  )    (13,471 )
Adjusted net income     $ 44,602     $ 25,122     $ 115,415     $ 56,294  


^(2) Adjusted EBITDA (defined as net income before net interest expense,
stock-based compensation expense, income tax expense, and depreciation and
amortization expense) is a measure of both operating performance and liquidity
that is not defined by GAAP and should not be considered as an alternative to
net income, income from operations or any other performance measures derived
in accordance with GAAP. Adjusted EBITDA is presented as a supplemental
disclosure because management believes that it may be a useful performance
measure that is used within our industry. We believe adjusted EBITDA provides
useful information on our earnings from ongoing operations, our ability to
service our long-term debt and other fixed obligations, and our ability to
fund our expected growth with internally generated funds. Set forth below is
additional detail as to how we use adjusted EBITDA as a measure of both
operating performance and liquidity, as well as a discussion of the
limitations of adjusted EBITDA as an analytical tool and a reconciliation of
adjusted EBITDA to our GAAP net loss and cash flow from operating activities.

Operating Performance: Management and our board of directors use adjusted
EBITDA in a number of ways to assess our consolidated financial and operating
performance, and we believe this measure is helpful in identifying trends in
our performance. We use adjusted EBITDA as a measure of our consolidated
operating performance exclusive of income and expenses that relate to the
financing, income taxes, and capitalization of the business. Also, adjusted
EBITDA assists us in comparing our operating performance on a consistent basis
as it removes the impact of our capital structure (primarily one-time
amortization of convertible debt discounts) and stock-based compensation
expense from our operating results. In addition, adjusted EBITDA helps
management identify controllable expenses and make decisions designed to help
us meet our current financial goals and optimize our financial performance.
Accordingly, we believe this metric measures our financial performance based
on operational factors that we can influence in the short term, namely the
cost structure and expenses of the organization.

Liquidity: In addition to the uses described above, management and our board
of directors use adjusted EBITDA as an indicator of the amount of cash flow we
have available to service our debt obligations, and we believe this measure
can serve the same purpose for our investors.

Limitations: Adjusted EBITDA has limitations as an analytical tool, and should
not be considered in isolation, or as a substitute for analysis of our
operating results or cash flows as reported under GAAP. Some of these
limitations are as follows:

  *adjusted EBITDA does not reflect our cash expenditures or future
    requirements for capital expenditures or contractual commitments;
  *adjusted EBITDA does not reflect changes in or cash requirements for our
    working capital needs;
  *adjusted EBITDA does not reflect interest expense or cash requirements
    necessary to service interest or principal payments on our debt; and
  *other companies in our industry may calculate these measures differently
    from how we calculate these measures, limiting their usefulness as
    comparative measures.

The following tables show the reconciliation of net income and cash flows from
operating activities, the most directly comparable GAAP measures of
performance and liquidity, to adjusted EBITDA (in thousands):

                       Three Months Ended         Nine Months Ended
                        September 30,               September 30,
                        2012         2011          2012          2011
                        (unaudited)                 (unaudited)
Reconciliation of
cash flows from
operating activities
to adjusted EBITDA:
Net cash provided by    $ 132,276     $ 83,076      $ 372,496      $ 166,197
operating activities
Depreciation of           (57,932 )     (30,657 )     (154,805 )     (73,431 )
flight equipment
Stock-based               (7,124  )     (8,314  )     (24,548  )     (30,974 )
compensation
Deferred taxes            (20,182 )     (10,070 )     (50,573  )     (15,684 )
Amortization of
discounts and             (4,595  )     (2,308  )     (11,553  )     (6,972  )
deferred debt issue
costs
Extinguishment of         -             -             -              (3,349  )
debt
Changes in operating
assets and
liabilities:
Other assets              11,727        (900    )     20,114         15,427
Accrued interest and      (16,924 )     (10,444 )     (48,085  )     (13,465 )
other payables
Rentals received in      (235    )    (2,112  )    (10,936  )    (9,279  )
advance
Net income                37,011        18,271        92,110         28,470
Net interest expense      39,218        12,642        100,643        39,442
Income taxes              20,182        10,070        50,577         15,684
Depreciation              57,932        30,657        154,805        73,431
Stock-based              7,124       8,314       24,548       30,974  
compensation
Adjusted EBITDA         $ 161,467    $ 79,954     $ 422,683     $ 188,001 
                                                                   
                                                                   
                        Three Months Ended          Three Months Ended
                        September 30,               September 30,
                        2012          2011          2012           2011
Reconciliation of net
income to adjusted      (unaudited)                 (unaudited)
EBITDA:
Net income              $ 37,011      $ 18,271      $ 92,110       $ 28,470
Net interest expense      39,218        12,642        100,643        39,442
Income taxes              20,182        10,070        50,577         15,684
Depreciation              57,932        30,657        154,805        73,431
Stock-based              7,124       8,314       24,548       30,974  
compensation
Adjusted EBITDA         $ 161,467    $ 79,954     $ 422,683     $ 188,001 



Air Lease Corporation and Subsidiaries
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)

                                              Nine Months Ended
                                               September 30,
                                               2012            2011
                                               (unaudited)
Operating Activities
Net income                                     $ 92,110         $ 28,470
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation of flight equipment                 154,805          73,431
Stock-based compensation                         24,548           30,974
Deferred taxes                                   50,573           15,684
Amortization of discounts and deferred debt      11,553           6,972
issue costs
Extinguishment of debt                           —                3,349
Changes in operating assets and liabilities:
Other assets                                     (20,114    )     (15,427    )
Accrued interest and other payables              48,085           13,465
Rentals received in advance                     10,936         9,279      
Net cash provided by operating activities       372,496        166,197    
Investing Activities
Acquisition of flight equipment under            (1,651,831 )     (1,706,278 )
operating lease
Payments for deposits on flight equipment        (185,373   )     (278,820   )
purchases
Acquisition of furnishings, equipment and       (71,484    )    (66,910    )
other assets
Net cash used in investing activities           (1,908,688 )    (2,052,008 )
Financing Activities
Issuance of common stock                         43               867,365
Tax withholdings on stock-based compensation     (7,312     )     (8,456     )
Net change in unsecured revolving facilities     (28,000    )     153,000
Proceeds from debt financings                    2,042,389        800,043
Payments in reduction of debt financings         (344,912   )     (62,376    )
Restricted cash                                  (15,627    )     (26,143    )
Debt issue costs                                 (39,487    )     (10,338    )
Security deposits and maintenance reserve        108,968          127,262
receipts
Security deposits and maintenance reserve       (21,994    )    (3,720     )
disbursements
Net cash provided by financing activities       1,694,068      1,836,637  
Net increase (decrease) in cash                  157,876          (49,174    )
Cash and cash equivalents at beginning of       281,805        328,821    
period
Cash and cash equivalents at end of period     $ 439,681       $ 279,647    
Supplemental Disclosure of Cash Flow
Information
Cash paid during the period for interest,
including capitalized interest of $13,698 at   $ 68,307         $ 34,849
September 30, 2012 and capitalized interest
of $7,297 at September 30, 2011
Supplemental Disclosure of Noncash
Activities
Buyer furnished equipment, capitalized
interest, deposits on flight equipment
purchases and seller financing applied to      $ 136,850        $ 33,408
acquisition of flight equipment under
operating leases


Contact:

Air Lease Corporation
310-553-0555
Investors:
Ryan McKenna
Assistant Vice President, Strategic Planning & Investor Relations
rmckenna@airleasecorp.com
or
Media:
Laura St. John
Media and Investor Relations Coordinator
lstjohn@airleasecorp.com