Air Lease Corporation Announces Fiscal Year & Fourth Quarter 2018 Results

Air Lease Corporation (ALC) (NYSE: AL) announces financial results for the year and three months ended December 31, 2018.

• Revenues:
  • $450 million for the three months ended December 31, 2018, an increase of 12.9%
  • $1.7 billion for the full year 2018, an increase of 10.8%
• Diluted earnings per share:
  • $1.24 for the three months ended December 31, 2018, a decrease of 70.6%, which is primarily attributable to the enactment of the U.S. Tax Cuts and Jobs Act (the "Tax Reform Act").
  • $4.60 for the full year 2018, a decrease of 32.6%, which is primarily attributable to the enactment of the Tax Reform Act.
• Adjusted diluted earnings per share before income taxes
  • $1.65 for the three months ended December 31, 2018, an increase of 3.1%
  • $6.20 for the full year 2018, an increase of 4.4%
• Margin:
  • Pre-tax margin of 38.1% for the full year 2018
  • Adjusted pre-tax margin of 41.1% for the full year 2018
• Return on equity:
  • Pre-tax return on equity of 14.3% for the full year 2018
  • Adjusted pre-tax return on equity of 15.5% for the full year 2018

Highlights

• Took delivery of 12 aircraft from our order book during the quarter, representing $881 million in aircraft investments, ending the quarter with an operating portfolio net book value of $15.7 billion with a weighted average age of 3.8 years and a weighted average lease term remaining of 6.8 years.
• Sold five aircraft during the quarter for sales proceeds of $164 million.
• Placed 91% of our order book on long-term leases for aircraft delivering through 2020 and 72% through 2021.
• Ended the year with $25.7 billion in committed minimum future rental payments consisting of $11.8 billion in contracted minimum rental payments on the aircraft in our existing fleet and $13.9 billion in minimum future rental payments related to aircraft on order.
• Issued a total of $3.03 billion of senior unsecured notes in 2018 and ended the year with liquidity of $4.3 billion.
• In January 2019, the Company issued $700.0 million in aggregate principal amount of senior unsecured medium-term notes due 2024 that bear interest at a rate of 4.250%.
• Declared a quarterly cash dividend of $0.13 per share on our outstanding common stock for the fourth quarter of 2018. The dividend will be paid on April 10, 2019 to holders of record of our common stock as of March 20, 2019.

“We had a solid fourth quarter, concluding another successful year for ALC generating pre-tax return on equity of 14.3% and $1.25 billion of operating cash flow for the full year 2018. We are now in our tenth year of operation and expect to reach $20 billion in assets in 2019 with a strong balance sheet. We have good momentum on lease placements and a strong outlook on aircraft sales and financing, already issuing $700 million of senior unsecured notes in January. We remain confident and optimistic looking forward,” said John L. Plueger, Chief Executive Officer and President.

“Air Lease once again continued its steady growth in 2018 with 336 owned and managed aircraft as of year-end, a 14% increase over 2017. Our order book now stands at 91% placed through 2020, and we continue to see strong demand for our modern, fuel efficient aircraft driven by replacement needs and passenger traffic trends. We are pleased with our financial results, which are the outcome of our team’s dedication to serving our airline customers and adherence to our core operating principles,” said Steven F. Udvar-Házy, Executive Chairman of the Board.

The following table summarizes the results for the three and twelve months ended December 31, 2018 and 2017 (in thousands, except per share amounts and percentages):

				Three Months Ended December 31,																						Twelve Months Ended December 31,
				2018					2017					$ change						% change						2018					2017					$ change						% change
Revenues				$	449,981				$	398,471				$	51,510					12.9		%				$	1,679,702				$	1,516,380				$	163,322					10.8		%
Income before taxes				$	172,028				$	165,664				$	6,364					3.8		%				$	640,138				$	609,530				$	30,608					5.0		%
Net income				$	138,399				$	471,102				$	(332,703	)				(70.6	)	%				$	510,835				$	756,152				$	(245,317	)				(32.4	)	%
Adjusted net income before income taxes(1)				$	184,816				$	178,099				$	6,717					3.8		%				$	690,322				$	657,838				$	32,484					4.9		%
Diluted EPS				$	1.24				$	4.22				$	(2.98	)				(70.6	)	%				$	4.60				$	6.82				$	(2.22	)				(32.6	)	%
Adjusted diluted EPS before income taxes(1)				$	1.65				$	1.60				$	0.05					3.1		%				$	6.20				$	5.94				$	0.26					4.4		%

(1)

Adjusted net income before income taxes and adjusted diluted earnings per share before income taxes 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 before income taxes and adjusted diluted earnings per share before income taxes and a reconciliation to their most comparable GAAP financial measures.

Revenues increased $52 million or 12.9% to $450 million for the three months ended December 31, 2018, as compared to the three months ended December 31, 2017. This increase was principally driven by the continued growth of our fleet, partially offset by a decrease in our sales and trading activity.

Income before taxes increased $6 million or 3.8% to $172 million for the three months ended December 31, 2018, as compared to the three months ended December 31, 2017. This increase was principally driven by the continued growth of our fleet, partially offset by a decrease in our aircraft sales and trading activity.

Net income decreased $333 million or 70.6% to $138 million representing $1.24 per diluted share for the three months ended December 31, 2018, as compared to the three months ended December 31, 2017. The decrease primarily resulted from the enactment of the Tax Reform Act, which was effective beginning January 1, 2018, which resulted in a tax benefit of $354.1 million, or $3.16 per diluted share during the three months ended December 31, 2017. This decrease was partially offset by the growth in revenues highlighted above.

Flight Equipment Portfolio

Our fleet grew by 18.3% based on net book value of $15.7 billion as of December 31, 2018 compared to $13.3 billion as of December 31, 2017. As of December 31, 2018, our fleet was comprised of 275 aircraft, with a weighted-average age and remaining lease term of 3.8 years and 6.8 years, respectively, and 61 managed aircraft. We have a globally diversified customer base of 94 airlines in 56 countries.

During the quarter ended December 31, 2018, we took delivery of 12 new aircraft and sold five aircraft ending the quarter with 275 owned aircraft in our operating lease portfolio.

The following table summarized the key portfolio metrics of our fleet as of December 31, 2018 and 2017:

				December 31, 2018					December 31, 2017
Aggregate fleet net book value				$	15.7 billion				$	13.3 billion
Weighted-average fleet age(1)					3.8 years					3.8 years
Weighted-average remaining lease term(1)					6.8 years					6.8 years
Fleet size					275					244
Managed fleet					61					50
Aircraft on order					372					368
Aircraft purchase options(2)					50					5
Total					758					667
Current fleet contracted rentals				$	11.8 billion				$	10.1 billion
Committed fleet rentals				$	13.9 billion				$	13.3 billion
Total committed rentals				$	25.7 billion				$	23.4 billion

(1)			Weighted-average fleet age and remaining lease term calculated based on net book value.
(2)			As of December 31, 2018, we had options to acquire up to five Airbus A350-1000 and 45 Boeing 737-8 MAX aircraft. As of December 31, 2017, we had options to acquire up to five Airbus A350-1000 aircraft.

The following table details the region concentration of our fleet:

										December 31, 2018					December 31, 2017
						Region				% of Net Book Value					% of Net Book Value
						Europe				29.9	%				31.7	%
						Asia (excluding China)				24.5	%				22.4	%
						China				17.0	%				20.5	%
						The Middle East and Africa				12.4	%				11.2	%
						Central America, South America, and Mexico				6.9	%				7.0	%
						U.S. and Canada				4.8	%				4.5	%
						Pacific, Australia, and New Zealand				4.5	%				2.7	%
						Total				100.0	%				100.0	%

The following table details the composition of our fleet by aircraft type:

										December 31, 2018									December 31, 2017
						Aircraft type				Number of Aircraft(1)				% of Total					Number of Aircraft(1)				% of Total
						Airbus A319-100				1				0.4	%				1				0.4	%
						Airbus A320-200				35				12.7	%				40				16.4	%
						Airbus A320-200neo				6				2.2	%				5				2.1	%
						Airbus A321-200				34				12.4	%				29				11.9	%
						Airbus A321-200neo				14				5.1	%				5				2.1	%
						Airbus A330-200				15				5.4	%				15				6.1	%
						Airbus A330-300				5				1.8	%				5				2.1	%
						Airbus A330-900neo				1				0.4	%				—				—	%
						Airbus A350-900				6				2.2	%				2				0.8	%
						Boeing 737-700				4				1.4	%				3				1.2	%
						Boeing 737-800				98				35.6	%				102				41.8	%
						Boeing 737-8 MAX				14				5.1	%				2				0.8	%
						Boeing 767-300ER				1				0.4	%				1				0.4	%
						Boeing 777-200ER				1				0.4	%				1				0.4	%
						Boeing 777-300ER				24				8.7	%				24				9.8	%
						Boeing 787-9				15				5.4	%				8				3.3	%
						Embraer E190				1				0.4	%				1				0.4	%
						Total				275				100.0	%				244				100.0	%

(1)

As of December 31, 2018, we had six aircraft held for sale. We did not have any aircraft held for sale as of December 31, 2017.

Debt Financing Activities

We ended the fourth quarter of 2018 with total debt financing, net of discounts and issuance costs, of $11.5 billion, resulting in a debt to equity ratio of 2.40:1.

Our debt financing was comprised of unsecured debt of $11.3 billion and such unsecured debt represented 96.5% of our debt portfolio as of December 31, 2018 as compared to 94.6% as of December 31, 2017. Our fixed rate debt represented 86.4% of our debt portfolio as of December 31, 2018 as compared to 85.4% as of December 31, 2017. Our composite cost of funds increased to 3.46% as of December 31, 2018 as compared to 3.20% as of December 31, 2017.

On November 20, 2018, we established a Medium-Term Note Program, under which we may issue, from time to time, up to $15.0 billion of debt securities designated as our Medium-Term Notes, Series A. In January 2019, we issued $700.0 million in aggregate principal amount of senior unsecured medium-term notes due 2024 that bear interest at a rate of 4.250% under our Medium-Term Note Program.

Our debt financing was comprised of the following at December 31, 2018 and December 31, 2017 (in thousands, except percentages):

										December 31, 2018							December 31, 2017
						Unsecured
						Senior notes				$	10,043,445						$	8,019,871
						Term financings					607,340							203,704
						Revolving credit facility					602,000							847,000
						Convertible senior notes					—							199,983
						Total unsecured debt financing					11,252,785							9,270,558
						Secured
						Term financings					371,203							484,036
						Export credit financing					38,265							44,920
						Total secured debt financing					409,468							528,956
						Total debt financing					11,662,253							9,799,514
						Less: Debt discounts and issuance costs					(123,348	)						(100,729	)
						Debt financing, net of discounts and issuance costs				$	11,538,905						$	9,698,785
						Selected interest rates and ratios:
						Composite interest rate(1)					3.46		%					3.20		%
						Composite interest rate on fixed rate debt(1)					3.42		%					3.27		%
						Percentage of total debt at fixed rate					86.41		%					85.42		%

(1)

This rate does not include the effect of upfront fees, undrawn fees or discount and issuance cost amortization.

Conference Call

In connection with the earnings release, Air Lease Corporation will host a conference call on February 21, 2019 at 4:30 PM Eastern Time to discuss the Company's financial results for the fourth quarter of 2018.

Investors can participate in the conference call by dialing [phone] domestic or [phone] international. The passcode for the call is 6486363.

The conference call will also 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.

For your convenience, the conference call can be replayed in its entirety beginning at 7:30 PM ET on February 21, 2019 until 7:30 PM ET on February 28, 2019. If you wish to listen to the replay of this conference call, please dial [phone] domestic or [phone] international and enter passcode 6486363.

About Air Lease Corporation (NYSE: AL)

Air Lease Corporation is a leading aircraft leasing company based in Los Angeles, California that has airline customers throughout the world. ALC and its team of dedicated and experienced professionals are principally engaged in purchasing commercial aircraft and leasing them to its airline customers worldwide through customized aircraft leasing and financing solutions. For more information, visit ALC'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 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;
• our inability to make acquisitions of, or lease, aircraft on favorable terms;
• our inability to sell aircraft on favorable terms or to predict the timing of such sales;
• impaired financial condition and liquidity of our lessees;
• deterioration of economic conditions in the commercial aviation industry generally;
• potential natural disasters and terrorist attacks and the amount of our insurance coverage, if any, relating thereto;
• increased maintenance, operating or other expenses or changes in the timing thereof;
• our inability to effectively oversee our managed fleet;
• changes in the regulatory environment, including tariffs and other restrictions on trade;
• unanticipated impacts of the Tax Reform Act, including as a result of changes in assumptions we make in our interpretation of the Tax Reform Act, guidance related to application of the Tax Reform Act that may be issued in the future, and actions that we may take as a result of our expected impact of the Tax Reform Act; 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, 2018, and other SEC filings, including future SEC filings.

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)
				December 31, 2018						December 31, 2017
				(unaudited)
Assets
Cash and cash equivalents				$	300,127					$	292,204
Restricted cash					22,871						16,078
Flight equipment subject to operating leases					17,985,324						15,100,040
Less accumulated depreciation					(2,278,214	)					(1,819,790	)
					15,707,110						13,280,250
Deposits on flight equipment purchases					1,809,260						1,562,776
Other assets					642,440						462,856
Total assets				$	18,481,808					$	15,614,164
Liabilities and Shareholders’ Equity
Accrued interest and other payables				$	382,132					$	309,182
Debt financing, net of discounts and issuance costs					11,538,905						9,698,785
Security deposits and maintenance reserves on flight equipment leases					990,578						856,140
Rentals received in advance					119,526						104,820
Deferred tax liability					643,767						517,795
Total liabilities				$	13,674,908					$	11,486,722
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; 110,949,850 and 103,621,629 shares issued and outstanding at December 31, 2018 and December 31, 2017, respectively					1,110						1,036
Class B Non-Voting common stock, $0.01 par value; authorized 10,000,000 shares; no shares issued or outstanding					—						—
Paid-in capital					2,474,238						2,260,064
Retained earnings					2,331,552						1,866,342
Total shareholders’ equity				$	4,806,900					$	4,127,442
Total liabilities and shareholders’ equity				$	18,481,808					$	15,614,164

Air Lease Corporation and Subsidiaries
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except share and per share amounts and percentages)
				Three Months Ended December 31,													Twelve Months Ended December 31,
				2018							2017						2018							2017
				(unaudited)
Revenues
Rental of flight equipment				$	437,096						$	378,481					$	1,631,200						$	1,450,735
Aircraft sales, trading and other					12,885							19,990						48,502							65,645
Total revenues					449,981							398,471						1,679,702							1,516,380
Expenses
Interest					85,442							64,326						310,026							257,917
Amortization of debt discounts and issuance costs					8,475							7,066						32,706							29,454
Interest expense					93,917							71,392						342,732							287,371
Depreciation of flight equipment					153,548							130,400						581,985							508,352
Selling, general and administrative					26,175							25,646						97,369							91,323
Stock-based compensation					4,313							5,369						17,478							19,804
Total expenses					277,953							232,807						1,039,564							906,850
Income before taxes					172,028							165,664						640,138							609,530
Income tax (expense) / benefit					(33,629	)						305,438						(129,303	)						146,622
Net income				$	138,399						$	471,102					$	510,835						$	756,152
Net income per share of Class A and Class B common stock:
Basic				$	1.29						$	4.56					$	4.88						$	7.33
Diluted				$	1.24						$	4.22					$	4.60						$	6.82
Weighted-average shares outstanding
Basic					107,017,743							103,401,287						104,716,301							103,189,175
Diluted					112,325,696							111,954,824						112,363,331							111,657,564
Other financial data
Pre-tax profit margin					38.2		%					41.6	%					38.1		%					40.2	%
Adjusted net income before income taxes(1)(2)				$	184,816						$	178,099					$	690,322						$	657,838
Adjusted margin before income taxes(1)(2)					41.1		%					44.7	%					41.1		%					43.4	%
Adjusted diluted earnings per share before income taxes(1)(2)				$	1.65						$	1.60					$	6.20						$	5.94
Pre-tax return on equity																		14.3		%					16.2	%
Adjusted pre-tax return on equity(1)(2)																		15.5		%					17.5	%

(1)

Adjusted net income before income taxes (defined as net income excluding 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), adjusted margin before income taxes (defined as adjusted net income before income taxes divided by total revenues, excluding insurance recoveries), adjusted pre-tax return on equity (defined as adjusted net income before income taxes divided by average shareholders' equity) and adjusted diluted earnings per share before income taxes (defined as adjusted net income before income taxes plus assumed conversions divided by the weighted average diluted common shares outstanding) are measures of operating performance that are not defined by GAAP and should not be considered as an alternative to net income, pre-tax profit margin, earnings per share, pre-tax return on equity, and diluted earnings per share, or any other performance measures derived in accordance with GAAP. Adjusted net income before income taxes, adjusted margin before income taxes, adjusted pre-tax return on equity and adjusted diluted earnings per share before income taxes, are presented as supplemental disclosure because management believes they provide useful information on our earnings from ongoing operations.

The following tables show the reconciliation of net income to adjusted net income before income taxes and adjusted margin before income taxes (in thousands, except percentages):

										Three Months Ended December 31,												Twelve Months Ended December 31,
										2018						2017						2018						2017
										(unaudited)
						Reconciliation of net income to adjusted net income before income taxes:
						Net income				$	138,399					$	471,102					$	510,835					$	756,152
						Amortization of debt discounts and issuance costs					8,475						7,066						32,706						29,454
						Stock-based compensation					4,313						5,369						17,478						19,804
						Insurance recovery on settlement					—						—						—						(950	)
						Provision for income taxes					33,629						(305,438	)					129,303						(146,622	)
						Adjusted net income before income taxes				$	184,816					$	178,099					$	690,322					$	657,838
						Reconciliation of denominator of adjusted margin before income taxes:
						Total revenues				$	449,981					$	398,471					$	1,679,702					$	1,516,380
						Insurance recovery on settlement					—						—						—						(950	)
						Total revenues, excluding insurance recovery on settlement				$	449,981					$	398,471					$	1,679,702					$	1,515,430
						Adjusted margin before income taxes					41.1	%					44.7	%					41.1	%					43.4	%

The following table shows the reconciliation of net income to adjusted diluted earnings per share before income taxes (in thousands, except share and per share amounts):

										Three Months Ended December 31,											Twelve Months Ended December 31,
										2018					2017						2018					2017
											(unaudited)
						Reconciliation of net income to adjusted diluted earnings per share before income taxes:
						Net income				$	138,399				$	471,102					$	510,835				$	756,152
						Amortization of debt discounts and issuance costs					8,475					7,066						32,706					29,454
						Stock-based compensation					4,313					5,369						17,478					19,804
						Insurance recovery on settlement					—					—						—					(950	)
						Provision for income taxes					33,629					(305,438	)					129,303					(146,622	)
						Adjusted net income before income taxes				$	184,816				$	178,099					$	690,322				$	657,838
						Assumed conversion of convertible senior notes					914					1,566						6,219					5,842
						Adjusted net income before income taxes plus assumed conversions				$	185,730				$	179,665					$	696,541				$	663,680
						Weighted-average diluted shares outstanding					112,325,696					111,954,824						112,363,331					111,657,564
						Adjusted diluted earnings per share before income taxes				$	1.65				$	1.60					$	6.20				$	5.94

The following table shows the reconciliation of net income to adjusted pre-tax return on equity (in thousands, except percentages):

										Twelve Months December 31,
										2018						2017
										(unaudited)
						Reconciliation of net income to adjusted pre-tax return on equity:
						Net income				$	510,835					$	756,152
						Amortization of debt discounts and issuance costs					32,706						29,454
						Stock-based compensation					17,478						19,804
						Insurance recovery on settlement					—						(950	)
						Provision for income taxes					129,303						(146,622	)
						Adjusted net income before income taxes				$	690,322					$	657,838
						Shareholders' equity as of beginning of the period				$	4,127,442					$	3,382,187
						Shareholders' equity as of end of the period				$	4,806,900					$	4,127,442
						Average shareholders' equity				$	4,467,171					$	3,754,815
						Adjusted pre-tax return on equity					15.5	%					17.5		%

(2)

Management and our board of directors use adjusted net income before income taxes, adjusted margin before income taxes, adjusted pre-tax return on equity and adjusted diluted earnings per share before income taxes to assess our consolidated financial and operating performance. Management believes these measures are helpful in evaluating the operating performance of our ongoing operations and identifying trends in our performance, because they remove the effects of certain non-cash items, one-time or non-recurring items that are not expected to continue in the future and certain other items from our operating results. Adjusted net income before income taxes, adjusted margin before income taxes, adjusted pre-tax return on equity and adjusted diluted earnings per share before income taxes, however, should not be considered in isolation or as a substitute for analysis of our operating results or cash flows as reported under GAAP. Adjusted net income before income taxes, adjusted margin before income taxes, adjusted pre-tax return on equity and adjusted diluted earnings per share before income taxes do not reflect our cash expenditures or changes in our cash requirements for our working capital needs. In addition, our calculation of adjusted net income before income taxes, adjusted margin before income taxes, adjusted pre-tax return on equity and adjusted diluted earnings per share before income taxes may differ from the adjusted net income before income taxes, adjusted margin before income taxes, adjusted pre-tax return on equity and adjusted diluted earnings per share before income taxes or analogous calculations of other companies in our industry, limiting their usefulness as a comparative measure.

Air Lease Corporation and Subsidiaries
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
				Twelve Months Ended December 31,
				2018						2017
				(unaudited)
Operating Activities
Net income				$	510,835					$	756,152
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation of flight equipment					581,985						508,352
Stock-based compensation					17,478						19,804
Deferred taxes					129,303						(146,622	)
Amortization of prepaid lease costs					24,579						19,265
Amortization of discounts and debt issuance costs					32,706						29,454
Gain on aircraft sales, trading and other activity					(34,442	)					(74,337	)
Changes in operating assets and liabilities:
Other assets					(74,223	)					(108,623	)
Accrued interest and other payables					51,175						50,832
Rentals received in advance					14,705						5,436
Net cash provided by operating activities					1,254,101						1,059,713
Investing Activities
Acquisition of flight equipment under operating lease					(2,512,582	)					(1,972,009	)
Payments for deposits on flight equipment purchases					(976,101	)					(773,981	)
Proceeds from aircraft sales, trading and other activity					391,372						779,489
Acquisition of furnishings, equipment and other assets					(287,509	)					(177,450	)
Net cash used in investing activities					(3,384,820	)					(2,143,951	)
Financing Activities
Issuance of common stock upon exercise of options and warrants					4,826						9,264
Cash dividends paid					(41,563	)					(30,933	)
Tax withholdings on stock-based compensation					(7,548	)					(6,926	)
Net change in unsecured revolving facilities					(245,000	)					81,000
Proceeds from debt financings					3,533,885						2,183,824
Payments in reduction of debt financings					(1,270,505	)					(1,303,499	)
Debt issuance costs					(11,475	)					(5,855	)
Security deposits and maintenance reserve receipts					242,524						226,064
Security deposits and maintenance reserve disbursements					(59,709	)					(51,221	)
Net cash provided by financing activities					2,145,435						1,101,718
Net increase in cash					14,716						17,480
Cash, cash equivalents and restricted cash at beginning of period					308,282						290,802
Cash, cash equivalents and restricted cash at end of period				$	322,998					$	308,282
Supplemental Disclosure of Cash Flow Information
Cash paid during the period for interest, including capitalized interest of $52,817 and $46,049 at December 31, 2018 and 2017, respectively				$	332,426					$	301,741
Cash paid for income taxes				$	4,264					$	5,497
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				$	912,075					$	644,206
Cash dividends declared, not yet paid				$	14,421					$	10,359

View source version on businesswire.com: https://www.businesswire.com/news/home/20190221005812/en/