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 Air Lease Corporation Announces Fiscal Year and Fourth Quarter 2015 Results
   Thursday, February 25, 2016 4:31:00 PM ET

Air Lease Corporation (ALC) (AL ) announced today financial results for the year and three months ended December 31, 2015.

Highlights

Air Lease Corporation reported another consecutive quarter of record fleet, revenue and profitability growth:

-- 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 sales 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.

The following table summarizes the results for the three months and years ended December 31, 2015 and 2014 (in thousands, except per share amounts):

                                                                      Three Months Ended                                                                                             Twelve Months Ended
                                                                                            December 31,                                                                                                                      December 31,
                                             ----------------------------------------------------------------------------------------------------------                     ----------------------------------------------------------------------------------------------------------------
                                                2015         2014        $ change    % change                          2015           2014          $ change     % change
                                             ---------                       ---------                       ----------                       --------                      -----------                       -----------                       -----------                        --------
Revenues                                      $ 326,697                       $ 285,944                         $ 40,753                        14.3%                        $ 1,222,840                       $ 1,050,493                       $ 172,347                           16.4%
Income before taxes                           $ 124,703                       $ 108,110                         $ 16,593                        15.3%                        $   392,953                       $   394,776                       $  (1,823 )                        (0.5%)
Net income                                    $  80,899                       $  70,131                         $ 10,768                        15.4%                        $   253,391                       $   255,998                       $  (2,607 )                        (1.0%)
Adjusted net income(1)                        $ 132,578                       $ 118,806                         $ 13,772                        11.6%                        $   507,982                       $   438,596                       $  69,386                           15.8%
Diluted EPS                                   $    0.74                       $    0.65                         $   0.09                        13.8%                        $      2.34                       $      2.38                       $   (0.04 )                        (1.7%)
Adjusted diluted EPS(1)                       $    1.21                       $    1.09                         $   0.12                        11.0%                        $      4.64                       $      4.03                       $    0.61                           15.1%
_______________
(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.

"ALC continued along its growth trajectory with another quarter of strong financial performance to conclude 2015. In the nearly 5 years since our IPO, we have consistently generated industry leading profitability with a focus on strong risk management. We have positioned the business to thrive over the long term through varied market conditions, which is reflected by our outstanding fleet metrics and financial results. We continue to see solid aircraft demand in all segments of the market," said Steven F. Udvar-Hazy, Chairman and Chief Executive Officer of Air Lease Corporation.

"Global passenger traffic grew 6.5% in 2015 versus the prior year, while capacity only grew at 5.6%, demonstrating a healthy balance between the supply and demand for aircraft. IATA advised that 2015 passenger traffic was the strongest since the post-Global Financial Crisis rebound in 2010 and well above the 10-year average annual growth rate of 5.5%. Consistent with these continuing, positive market dynamics, we announced lease placements of more twin-aisle aircraft during the second half of 2015 than in any comparable period for our company, by a wide margin, and we specifically see no demand reduction in China," said John L. Plueger, President and Chief Operating Officer of Air Lease Corporation.

Flight Equipment Portfolio

As of December 31, 2015, our fleet was comprised of 240 owned aircraft and 29 managed aircraft, with a weighted-average age and remaining lease term of 3.6 years and 7.2 years, respectively. We increased our customer base to 90 airlines based in 50 countries. Through the growth of our fleet and the active lease placement of our order book, our contracted cash flows have increased to $20.9 billion.

During the quarter ended December 31, 2015, our fleet increased by five aircraft. We took delivery of six new aircraft from our order book and acquired three incremental aircraft. Additionally, we sold four aircraft and announced the sale of our entire ATR fleet.

Below are the key portfolio metrics of our fleet:

                                            December 31, 2015    December 31, 2014
                                                              -----------------                      --------------------
Fleet size                                                                  240                                       213
Managed fleet                                                                29                                        17
Order book                                                                  389                                       364
                                                                                                      
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.

The following table details the region concentration of our fleet:

                                              December 31, 2015     December 31, 2014
Region                                                          % of Net Book Value                      % of Net Book Value
-----------------------------------------                      -------------------                      -------------------
Europe                                                                       30.0%                                    33.0%
China                                                                        22.6%                                    26.2%
Asia (excluding China)                                                       21.4%                                    16.7%
The Middle East and Africa                                                    9.5%                                     5.6%
Central America, South America and Mexico                                     8.5%                                     8.7%
U.S. and Canada                                                               4.1%                                     4.6%
Pacific, Australia, New Zealand                                               3.9%                                     5.2%
                                                               -------------------                      -------------------
   Total                                                                    100.0%                                   100.0%
                                                               ===================                      ===================

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

                                       December 31, 2015                                    December 31, 2014
                                         ---------------------------------------------------                     ---------------------------------------------------
Aircraft type                            Number of Aircraft   % of Total                      Number of Aircraft   % of Total
-------------------                      ------------------                      ----------                      ------------------                      ----------
Airbus A319/320/321                                      68                           28.5%                                      64                           30.0%
Airbus A330-200/300                                      21                            8.8%                                      21                            9.8%
Boeing 737-700/800                                       87                           36.2%                                      69                           32.4%
Boeing 767-300ER                                          1                            0.4%                                       1                            0.5%
Boeing 777-200ER                                          1                            0.4%                                       1                            0.5%
Boeing 777-300ER                                         17                            7.1%                                       9                            4.2%
Embraer E175/190                                         26                           10.8%                                      30                           14.1%
ATR 42/72-600                                            19                            7.8%                                      18                            8.5%
                                         ------------------                      ----------                      ------------------                      ----------
   Total                                                240                          100.0%                                     213                          100.0%
                                         ==================                      ==========                      ==================                      ==========

Debt Financing Activities

We ended 2015 with total debt, net of discounts and issuance costs, of $7.7 billion with a debt to equity ratio of 2.55:1 and available liquidity of $2.6 billion.

Our debt financing was comprised of unsecured debt of $6.9 billion, representing 88.4% of our debt portfolio as of December 31, 2015 as compared to 82.4% as of December 31, 2014. Our fixed rate debt as a percentage of total debt increased to 78.7% as of December 31, 2015 from 75.3% as of December 31, 2014. Our composite cost of funds decreased to 3.59% as of December 31, 2015 as compared to 3.64% as of December 31, 2014.

The Company’s debt financing was comprised of the following at December 31, 2015 and December 31, 2014 (dollars in thousands):

                                                                                 December 31, 2015                                     December 31, 2014
                                                                                  ----------------------------------------------------                     ----------------------------------------------------
Unsecured
   Senior notes                                                                                      $ 5,677,769                                                              $ 4,579,194
   Revolving credit facility                                                                             720,000                                                                  569,000
   Term financings                                                                                       292,788                                                                  196,146
   Convertible senior notes                                                           200,000                            200,000  
                                                                                  -------------------- --------- --------------------                      -------------------- --------- --------------------
      Total unsecured debt financing                                                                 $ 6,890,557                                                              $ 5,544,340
Secured
   Term financings                                                                                   $   477,231                                                              $   636,411
   Warehouse facilities                                                                                  372,423                                                                  484,513
   Export credit financing                                                             58,229                             64,884  
                                                                                  -------------------- --------- --------------------                      -------------------- --------- --------------------
      Total secured debt financing                                                                   $   907,883                                                              $ 1,185,808
                                                                                                                                                            
      Total secured and unsecured debt financing                                                     $ 7,798,440                                                              $ 6,730,148
         Less: Debt discounts and issuance costs                                      (86,019 )                                             (99,390 )
                                                                                  -------------------- --------- --------------------                      -------------------- --------- --------------------
      Debt financing, net of discounts and issuance costs(1)                                         $ 7,712,421                                           $ 6,630,758  
                                                                                  ==================== ========= ====================                      ==================== ========= ====================
Selected interest rates and ratios:
   Composite interest rate                                                                                  3.59 %                                                                   3.64 %
   Composite interest rate on fixed rate debt                                                               4.04 %                                                                   4.22 %
   Percentage of total debt at fixed rate                                                                  78.70 %                                                                  75.26 %
                                                                                                                                                            
(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.

Conference Call

In connection with the earnings release, Air Lease Corporation will host a conference call on February 26, 2016, Friday at 11:30 AM Eastern Time to discuss the Company’s year end financial results for 2015.

Investors can participate in the conference call by dialing (877) 280-2126 domestic or (678) 562-4234 international. The passcode for the call is 26386318.

The conference call will also be broadcast live through a link on the Investors 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 26, 2016 until 11:59 PM ET on March 4, 2016. If you wish to listen to the replay of this conference call, please dial (855) 859-2056 domestic or (404) 537-3406 international and enter passcode 26386318.

About Air Lease Corporation (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 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.

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, 2015                                          December 31, 2014
                                                                                                 ---------------------------------------------------------                     ---------------------------------------------------------
Assets
Cash and cash equivalents                                                                                           $        156,675                                                              $        282,819
Restricted cash                                                                                                               16,528                                                                         7,469
Flight equipment subject to operating leases                                                                              12,026,798                                                                     9,832,421
   Less accumulated depreciation                                                                       (1,213,323 )                                                 (878,617 )
                                                                                                 -------------------- -------------- --------------------                      -------------------- -------------- --------------------
                                                                                                                          10,813,475                                                                     8,953,804
Deposits on flight equipment purchases                                                                                     1,071,035                                                                     1,144,603
Other assets                                                                                              297,385                                 302,485  
                                                                                                 -------------------- -------------- --------------------                      -------------------- -------------- --------------------
      Total assets                                                                                                  $     12,355,098                                           $     10,691,180  
                                                                                                 ==================== ============== ====================                      ==================== ============== ====================
Liabilities and Shareholders’ Equity
Accrued interest and other payables                                                                                          215,983                                                              $        190,952
Debt financing, net of discounts and issuance costs                                                                        7,712,421                                                                     6,630,758
Security deposits and maintenance reserves on flight equipment leases                                                        853,330                                                                       698,172
Rentals received in advance                                                                                                   91,485                                                                        75,877
Deferred tax liability                                                                                    461,967                                 323,359  
                                                                                                 -------------------- -------------- --------------------                      -------------------- -------------- --------------------
      Total liabilities                                                                                             $      9,335,186                                           $      7,919,118  
                                                                                                 -------------------- -------------- --------------------                      -------------------- -------------- --------------------
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                                                                  1,010                                                                         1,010
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                                                                                                            2,227,376                                                                     2,215,479
Retained earnings                                                                                         791,526                                 555,573  
                                                                                                 -------------------- -------------- --------------------                      -------------------- -------------- --------------------
      Total shareholders’ equity                                                         $      3,019,912                                           $      2,772,062  
                                                                                                 -------------------- -------------- --------------------                      -------------------- -------------- --------------------
      Total liabilities and shareholders’ equity                                         $     12,355,098                                           $     10,691,180  
                                                                                                 ==================== ============== ====================                      ==================== ============== ====================
                                                                                                                                                                   Air Lease Corporation and Subsidiaries
                                                                                                                                                                      CONSOLIDATED STATEMENTS OF INCOME
                                                                                                                                                                    (In thousands, except share amounts)
 
                                                                                                                      Three Months Ended                                                                                                                         Year Ended
                                                                                                                                            December 31,                                                                                                                                              December 31,
                                                                               ---------------------------------------------------------------------------------------------------------------------------------------                     ----------------------------------------------------------------------------------------------------------------------------------
                                                                                      2015                 2014                                  2015              2014       
                                                                               -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- --------- --------------------                      -------------------- -------------- --------------------
Revenues                                                                                                                                     (unaudited)
   Rental of flight equipment                                                                     $        314,263                                                              $        265,793                                                              $ 1,174,544                                                              $        991,241
   Aircraft sales, trading and other                                                     12,434                                  20,151                             48,296                                  59,252  
                                                                               -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- --------- --------------------                      -------------------- -------------- --------------------
      Total revenues                                                                    326,697                                 285,944                          1,222,840                               1,050,493  
                                                                               -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- --------- --------------------                      -------------------- -------------- --------------------
                                                                                                                                                                                                                                                                                                                     
Expenses
   Interest                                                                                                 61,983                                                                        52,543                                                                  235,637                                                                       192,818
   Amortization of debt discounts and issuance costs                                      7,725                                   6,870                             30,507                                  27,772  
                                                                               -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- --------- --------------------                      -------------------- -------------- --------------------
      Interest expense                                                                                      69,708                                                                        59,413                                                                  266,144                                                                       220,590
                                                                                                                                                                                                                                                                                                                     
   Depreciation of flight equipment                                                                        106,300                                                                        90,921                                                                  397,760                                                                       336,657
   Settlement                                                                                       --                                                                --                                                                   72,000                                                                --
   Selling, general and administrative                                                                      21,336                                                                        23,674                                                                   76,961                                                                        82,422
   Stock-based compensation                                                               4,650                                   3,826                             17,022                                  16,048  
                                                                               -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- --------- --------------------                      -------------------- -------------- --------------------
      Total expenses                                                                    201,994                                 177,834                            829,887                                 655,717  
                                                                               -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- --------- --------------------                      -------------------- -------------- --------------------
                                                                                                                                                                                                                                                                                                                     
Income before taxes                                                                                        124,703                                                                       108,110                                                                  392,953                                                                       394,776
Income tax expense                                                                      (43,804 )                                                  (37,979 )                                            (139,562 )                                                 (138,778 )
                                                                               -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- --------- --------------------                      -------------------- -------------- --------------------
Net income                                                                                        $         80,899                                           $         70,131                                           $   253,391                                           $        255,998  
                                                                               ==================== ============== ====================                      ==================== ============== ====================                      ==================== ========= ====================                      ==================== ============== ====================
                                                                                                                                                                                                                                                                                                                     
   Adjusted net income(1)                                                                         $        132,578                                                              $        118,806                                                              $   507,982                                                              $        438,596
                                                                                                                                                                                                                                                                                                                     
Net income per share of Class A and Class B common stock:
                                                                                                  $           0.79                                                              $           0.68                                                              $      2.47                                                              $           2.51
   Basic earnings per share
                                                                                                  $           0.74                                                              $           0.65                                                              $      2.34                                                              $           2.38
   Diluted earnings per share
   Adjusted diluted earnings per share(1)                                                         $           1.21                                                              $           1.09                                                              $      4.64                                                              $           4.03

(1) Adjusted net income (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), and adjusted diluted earnings per share (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 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, earnings per share, and diluted earnings per share, or any other performance measures derived in accordance with GAAP. Adjusted net income and adjusted diluted earnings per share, are presented as supplemental disclosure because management believes they provide useful information on our earnings from ongoing operations.

Management and our board of directors use adjusted net income and adjusted diluted earnings per share 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 and adjusted diluted earnings per share, 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 and adjusted diluted earnings per share do not reflect our cash expenditures or changes in or cash requirements for our working capital needs. In addition, our calculation of adjusted net income and adjusted diluted earnings per share may differ from the adjusted net income and adjusted diluted earnings per share or analogous calculations of other companies in our industry, limiting their usefulness as a comparative measure.

The following tables show the reconciliation of net income to adjusted net income (in thousands):

                                                                                                       Three Months Ended                                                                                                  Year Ended
                                                                                                                             December 31,                                                                                                                       December 31,
                                                                          ------------------------------------------------------------------------------------------------------------------                     -----------------------------------------------------------------------------------------------------------
                                                                                 2015                          2014                      2015                      2014
                                                                          -------------------- -------------- -------------------- -------------------- -------------------------------------------------------- -------------------- ------- -------------------- -------------------- ------------------------------------
Reconciliation of net income to adjusted net income:                                                                                                                                          (unaudited)
Net income                                                                                   $         80,899                                           $         70,131                                         $ 253,391                                           $        255,998
Amortization of debt discounts and issuance costs                                                       7,725                                                                         6,870                                            30,507                                                                        27,772
Stock-based compensation                                                                                4,650                                                                         3,826                                            17,022                                                                        16,048
Settlement                                                                                     --                                                                --                                            72,000                                                                --
Insurance recovery on settlement                                                                       (4,500 )                                                              --                                            (4,500 )                                                              --
Provision for income taxes                                                          43,804                                  37,979                        139,562                                 138,778
                                                                          -------------------- -------------- --------------------                      -------------------- --------------                      -------------------- ------- --------------------                      -------------------- --------------
   Adjusted net income                                                                       $        132,578                                           $        118,806                                         $ 507,982                                           $        438,596
                                                                          ==================== ============== ====================                      ==================== ==============                      ==================== ======= ====================                      ==================== ==============

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

                                                                                                                Three Months Ended                                                                                                    Year Ended
                                                                                                                                      December 31,                                                                                                                         December 31,
                                                                                   ------------------------------------------------------------------------------------------------------------------                     ---------------------------------------------------------------------------------------------------------------
                                                                                          2015                          2014                                           2015                        2014
                                                                                   -------------------- -------------- --------------------                      ------------------------------------                     -------------------- ----------- --------------------                      ------------------------------------
Reconciliation of net income to adjusted diluted earnings per                                                                                                                                            (unaudited)
share:
Net income                                                                                            $         80,899                                                              $         70,131                                         $     253,391                                                              $        255,998
Amortization of debt discounts and issuance costs                                                                7,725                                                                         6,870                                                30,507                                                                        27,772
Stock-based compensation                                                                                         4,650                                                                         3,826                                                17,022                                                                        16,048
Settlement                                                                                              --                                                                --                                                72,000                                                                --
Insurance recovery on settlement                                                                                (4,500 )                                                              --                                                (4,500 )                                                              --
Provision for income taxes                                                                   43,804                                  37,979                            139,562                                 138,778
                                                                                   -------------------- -------------- --------------------                      -------------------- --------------                      -------------------- ----------- --------------------                      -------------------- --------------
Adjusted net income                                                                                   $        132,578                                                              $        118,806                                         $     507,982                                                              $        438,596
Assumed conversion of convertible senior notes                                                1,472                                   1,465                              5,806                                   5,811
                                                                                   -------------------- -------------- --------------------                      -------------------- --------------                      -------------------- ----------- --------------------                      -------------------- --------------
Adjusted net income plus assumed conversions                                                          $        134,050                                                              $        120,271                                         $     513,788                                                              $        444,407
Weighted-average diluted shares outstanding                                             110,629,779                             110,422,760                        110,628,865                             110,192,771
                                                                                   -------------------- -------------- --------------------                      -------------------- --------------                      -------------------- ----------- --------------------                      -------------------- --------------
   Adjusted diluted earnings per share                                                                $           1.21                                           $           1.09                                         $        4.64                                           $           4.03
                                                                                   ==================== ============== ====================                      ==================== ==============                      ==================== =========== ====================                      ==================== ==============
                                                                                           Air Lease Corporation and Subsidiaries
                                                                                            CONSOLIDATED STATEMENTS OF CASH FLOWS
                                                                                                       (In thousands)
 
                                                                                             Year Ended                                               Year Ended
                                                                                                             December 31, 2015                                                           December 31, 2014
                                                                                         ---------------------------------------------------------                     -----------------------------------------------------
Operating Activities
   Net income                                                                                               $        253,391                                                              $    255,998
   Adjustments to reconcile net income to net cash provided by
   operating activities:
   Depreciation of flight equipment                                                                                  397,760                                                                   336,657
   Stock-based compensation                                                                                           17,022                                                                    16,048
   Deferred taxes                                                                                                    138,608                                                                   137,107
   Tax benefits from stock-based compensation arrangements                                                    --                                                                    (7,011 )
   Amortization of discounts and debt issuance costs                                                                  30,507                                                                    27,772
   Gain on aircraft sales, trading and other activity                                                                (33,898 )                                                                 (56,457 )
   Changes in operating assets and liabilities:
      Other assets                                                                                                     4,162                                                                    (1,191 )
      Accrued interest and other payables                                                                             16,635                                                                    45,738
      Rentals received in advance                                                                  15,608                              14,357  
                                                                                         -------------------- -------------- --------------------                      -------------------- ---------- --------------------
Net cash provided by operating activities                                                         839,795                             769,018  
                                                                                         -------------------- -------------- --------------------                      -------------------- ---------- --------------------
Investing Activities
   Acquisition of flight equipment under operating lease                                                          (2,088,646 )                                                              (1,568,748 )
   Payments for deposits on flight equipment purchases                                                              (597,170 )                                                                (601,307 )
   Proceeds from aircraft sales, trading and other activity                                                          752,747                                                                   603,849
   Acquisition of furnishings, equipment and other assets                                        (219,732 )                                             (239,451 )
                                                                                         -------------------- -------------- --------------------                      -------------------- ---------- --------------------
Net cash used in investing activities                                                          (2,152,801 )                                           (1,805,657 )
                                                                                         -------------------- -------------- --------------------                      -------------------- ---------- --------------------
Financing Activities
   Issuance of common stock upon exercise of options                                                                      60                                                                       944
   Cash dividends paid                                                                                               (16,405 )                                                                 (12,243 )
   Tax withholdings on stock-based compensation                                                                       (5,302 )                                                                 (18,089 )
   Tax benefits from stock-based compensation arrangements                                                    --                                                                     7,011
   Net change in unsecured revolving facilities                                                                      151,000                                                                  (239,000 )
   Proceeds from debt financings                                                                                   1,232,384                                                                 1,663,120
   Payments in reduction of debt financings                                                                         (328,248 )                                                                (577,212 )
   Net change in restricted cash                                                                                      (9,059 )                                                                  79,839
   Debt issuance costs                                                                                                (4,518 )                                                                  (7,975 )
   Security deposits and maintenance reserve receipts                                                                218,380                                                                   185,639
   Security deposits and maintenance reserve disbursements                                        (51,430 )                                              (32,749 )
                                                                                         -------------------- -------------- --------------------                      -------------------- ---------- --------------------
Net cash provided by financing activities                                                       1,186,862                           1,049,285  
                                                                                         -------------------- -------------- --------------------                      -------------------- ---------- --------------------
Net increase (decrease) in cash                                                                                     (126,144 )                                                                  12,646
Cash and cash equivalents at beginning of period                                                  282,819                             270,173  
                                                                                         -------------------- -------------- --------------------                      -------------------- ---------- --------------------
Cash and cash equivalents at end of period                                                                  $        156,675                                           $    282,819  
                                                                                         ==================== ============== ====================                      ==================== ========== ====================
Supplemental Disclosure of Cash Flow Information
Cash paid during the period for interest, including capitalized                                             $        259,968                                                              $    211,345
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                                         $        944,469                                                              $    756,286
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                                                                       $          5,129                                                              $      4,096

http://cts.businesswire.com/ct/CT?id=bwnews&sty=20160225006675r1&sid=cmtx6&distro=nx&lang=en

View source version on businesswire.com: http://www.businesswire.com/news/home/20160225006675/en/

SOURCE: Air Lease Corporation

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


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