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Willis Lease(WLFC) - 2023 Q4 - Annual Results
2024-03-13 00:37
[Financial Performance Overview](index=1&type=section&id=Financial%20Performance%20Overview) WLFC achieved record 2023 financial results, propelled by robust lease revenue growth and strategic vertical integration in aviation services [2023 Full-Year Financial Highlights](index=1&type=section&id=2023%20Full-Year%20Financial%20Highlights) Willis Lease Finance Corporation (WLFC) reported record-breaking financial results for 2023, with total revenues reaching $418.6 million and pre-tax income surging to $67.1 million Key Financial Metrics (FY 2023 vs FY 2022) | Metric | 2023 | 2022 | % Change | | :--- | :--- | :--- | :--- | | Total Revenues | $418.6 million | $311.9 million | +34.2% | | Pre-Tax Income | $67.1 million | $9.8 million | +585.5% | | Lease Rent & Maintenance Reserve Revenues | $346.8 million | $246.0 million | +41.0% | | Diluted EPS | $6.23 | $0.33 | +1787.9% | | Book Value Per Share | $67.73 | $64.27 | +5.4% | - The company's lease portfolio was valued at **$2.22 billion** as of December 31, 2023, a slight increase from **$2.21 billion** at year-end 2022, consisting of **337 engines** and **12 aircraft**[3](index=3&type=chunk) - WLFC successfully raised **$410 million** in Asset-Backed Security (ABS) financings, refinanced its credit facility, and utilized the Japanese Operating Lease with Call Option (JOLCO) market multiple times during 2023[5](index=5&type=chunk) [Management Commentary and Strategy](index=1&type=section&id=Management%20Commentary%20and%20Strategy) Management attributed the record 2023 results to the company's strategic expansion into vertically integrated aviation services, creating a 'virtuous cycle' of efficiency and enabling unique offerings - The company's vertical integration across leasing, materials, asset management, and MRO services has established a 'virtuous cycle of growth and efficiency', minimizing maintenance turn times and costs while maximizing asset value and on-lease revenue generation[2](index=2&type=chunk) - WLFC leverages its balance sheet and service businesses to offer unique solutions like the 'ConstantThrust' program, which helps airlines manage engine-related expenses and asset usage, allowing them to focus on their core passenger transport business[2](index=2&type=chunk) - The company's financial performance underscores its leadership in the aircraft engine leasing and after-market services sector, achieving record revenue and the second-highest pre-tax earnings in its history[2](index=2&type=chunk) [Business and Market Outlook](index=1&type=section&id=Business%20and%20Market%20Outlook) WLFC leases commercial aircraft engines, APUs, and aircraft globally, integrating these activities with trading, asset management, and MRO services, capitalizing on surging demand for spare engine leasing - WLFC's core business involves leasing large and regional spare commercial aircraft engines, APUs, and aircraft, which is integrated with services like engine trading, asset management, and end-of-life solutions[4](index=4&type=chunk) - The company identifies a confluence of industry challenges creating high demand for spare engine leasing: original engine manufacturer (OEM) issues, supply chain disruptions, MRO bottlenecks, and skilled labor shortages[2](index=2&type=chunk) [Consolidated Financial Statements](index=4&type=section&id=Consolidated%20Financial%20Statements) The company's 2023 financial statements show substantial revenue and net income growth, supported by a stable asset base and increased shareholder equity [Unaudited Consolidated Statements of Income](index=4&type=section&id=Unaudited%20Consolidated%20Statements%20of%20Income) For the full year 2023, total revenues increased 34.2% to $418.6 million, leading to a 585.5% increase in income before taxes and an over 18-fold increase in net income attributable to common shareholders Full Year Income Statement Highlights (in thousands) | Account | 2023 | 2022 | % Change | | :--- | :--- | :--- | :--- | | **Total revenue** | **$418,555** | **$311,927** | **34.2%** | | Lease rent revenue | $213,138 | $162,571 | 31.1% | | Maintenance reserve revenue | $133,668 | $83,424 | 60.2% | | **Total expenses** | **$354,333** | **$302,072** | **17.3%** | | **Income before income taxes** | **$67,130** | **$9,793** | **585.5%** | | **Net income attributable to common shareholders** | **$40,372** | **$2,105** | **1,817.9%** | [Unaudited Consolidated Balance Sheets](index=5&type=section&id=Unaudited%20Consolidated%20Balance%20Sheets) As of December 31, 2023, WLFC's total assets stood at $2.65 billion, with a stable equipment lease portfolio and an 8.5% growth in total shareholders' equity Balance Sheet Highlights (in thousands) | Account | Dec 31, 2023 | Dec 31, 2022 | | :--- | :--- | :--- | | **Total assets** | **$2,652,344** | **$2,575,217** | | Equipment held for operating lease, net | $2,112,837 | $2,111,935 | | **Total liabilities** | **$2,163,417** | **$2,120,640** | | Debt obligations | $1,802,881 | $1,847,278 | | **Total shareholders' equity** | **$438,963** | **$404,688** |
Willis Lease(WLFC) - 2023 Q3 - Quarterly Report
2023-11-03 11:43
Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ______________________________________________________________________ FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number: 001-15369 ______________________________________________________________ ...
Willis Lease(WLFC) - 2023 Q2 - Quarterly Report
2023-08-04 11:07
Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ______________________________________________________________________ FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number: 001-15369 ______________________________________________________________________ WILLIS LEASE FINANCE CORPORATION (Exact name of registrant as specified in its charter) | Delaware | | | 68-0070656 | | | --- | --- | - ...
Willis Lease(WLFC) - 2023 Q1 - Quarterly Report
2023-05-05 11:02
Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ______________________________________________________________________ FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number: 001-15369 __________________________________________________________________ ...
Willis Lease(WLFC) - 2022 Q4 - Annual Report
2023-03-10 13:45
Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the fiscal year ended December 31, 2022 ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Commission File Number: 001-15369 WILLIS LEASE FINANCE CORPORATION (Exact name of registrant as specified in its charter) | | | (State or other jurisdiction of incorporation or organization) ...
Willis Lease(WLFC) - 2022 Q3 - Quarterly Report
2022-11-04 13:37
FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ______________________________________________________________________ Commission File Number: 001-15369 ______________________________________________________________ ...
Willis Lease(WLFC) - 2022 Q2 - Quarterly Report
2022-08-05 13:48
Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ______________________________________________________________________ FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number: 001-15369 ___________________________________________________________________ ...
Willis Lease(WLFC) - 2022 Q1 - Quarterly Report
2022-05-10 17:40
Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ______________________________________________________________________ FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number: 001-15369 __________________________________________________________________ ...
Willis Lease(WLFC) - 2021 Q4 - Annual Report
2022-03-14 19:07
Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the fiscal year ended December 31, 2021 ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Commission File Number: 001-15369 WILLIS LEASE FINANCE CORPORATION (Exact name of registrant as specified in its charter) | Delaware | | | 68-0070656 | | --- | --- | --- | --- | | (State or ...
Willis Lease(WLFC) - 2021 Q3 - Quarterly Report
2021-11-02 21:46
Financial Performance - Total revenue for the three months ended September 30, 2021, was $70.791 million, a slight increase of 0.3% compared to $70.613 million in the same period of 2020 [105]. - Total revenue for the nine months ended September 30, 2021, decreased by $28.8 million, or 12.7%, to $198.4 million compared to $227.2 million for the same period in 2020 [119]. - Lease rent revenue increased by $2.9 million, or 9.6%, to $32.9 million for the three months ended September 30, 2021, driven by lower COVID-19 related rent concessions [105]. - Lease rent revenue decreased by $18.0 million, or 15.7%, to $96.9 million for the nine months ended September 30, 2021, primarily due to lower utilization compared to the prior year [119]. - Maintenance reserve revenue decreased by $8.6 million, or 26.8%, to $23.7 million for the three months ended September 30, 2021, influenced by long-term maintenance revenue associated with engines coming off lease [108]. - Maintenance reserve revenue decreased by $22.1 million, or 26.6%, to $60.7 million for the nine months ended September 30, 2021, reflecting a decline in global flight traffic related to the COVID-19 pandemic [121]. - Spare parts sales increased by $2.2 million, or 76.3%, to $5.1 million for the three months ended September 30, 2021, due to an industry-wide increase in engine and aircraft utilization [109]. - Spare parts and equipment sales decreased by $1.6 million, or 10.9%, to $13.2 million for the nine months ended September 30, 2021 [122]. - Other revenue increased by $5.6 million, or 41.8%, to $18.9 million for the nine months ended September 30, 2021, driven by increases in service-related fees and interest income [125]. Expenses and Costs - General and administrative expenses increased by $2.2 million, or 13.4%, to $18.7 million for the three months ended September 30, 2021, primarily due to increased stock-based compensation [115]. - General and administrative expenses increased by $3.1 million, or 6.0%, to $54.3 million for the nine months ended September 30, 2021, primarily due to increased stock-based compensation [129]. - Net finance costs rose by $3.0 million, or 19.4%, to $18.3 million for the three months ended September 30, 2021, attributed to higher leverage levels [117]. - Net finance costs decreased by $1.5 million, or 2.9%, to $50.3 million for the nine months ended September 30, 2021, primarily due to a loss on debt extinguishment recognized in the prior year [131]. Utilization and Operational Metrics - Average utilization based on net book value was approximately 82% for the three months ended September 30, 2021, down from 86% in the same period of 2020 [107]. - Average utilization based on net book value was approximately 81% for the nine months ended September 30, 2021, down from 86% in the prior year [120]. Cash Flow and Debt - Cash flows provided by operating activities decreased to $68.6 million for the nine months ended September 30, 2021, compared to $83.5 million for the same period in 2020 [136]. - Cash flows used in investing activities were $180.9 million for the nine months ended September 30, 2021, primarily reflecting purchases of equipment held for operating lease [138]. - As of September 30, 2021, total debt obligations amounted to $1,834.7 million, with interest rates ranging from approximately 1.8% to 7.4% [151]. - The company recognized a loss of $4.7 million on debt extinguishment related to the repayment of the WEST II Series A 2012 term notes in March 2020 [150]. - The company is in compliance with financial covenants, including an Interest Coverage Ratio of at least 2.25 to 1.00 and a Total Leverage Ratio below 4.50 to 1.00 as of September 30, 2021 [153]. Commitments and Future Outlook - The company has contractual commitments totaling $2,580.6 million, with $75.1 million due within one year and $908.7 million due beyond five years [155]. - The company has committed to purchasing 12 additional LEAP-1B engines, anticipating increased demand as the 737 Max is re-certified [155]. - Future maintenance services are anticipated to cost $24.0 million by 2024, with additional commitments for overhaul and maintenance services ranging from $70.2 million to $112.0 million by 2030 [156]. Risk Factors - The company is exposed to currency devaluation risk, with 54% of lease rent revenues from non-U.S. domiciled lessees during the nine months ended September 30, 2021 [161]. - As of September 30, 2021, $603.0 million of the company's outstanding debt is variable rate debt, with an estimated annual interest expense fluctuation of $1.0 million for every 1% change in interest rates [159]. Taxation - The effective tax rate for the third quarter of 2021 was 52.8%, compared to 50.6% in the prior year period, mainly due to executive compensation exceeding $1.0 million [118]. Asset Holdings - As of September 30, 2021, the company held $1,971.3 million in equipment under operating leases and $196.1 million in notes receivable, representing a total of 313 engines and eight aircraft [95].