[Part I - Financial Information](index=4&type=section&id=PART%20I%20%E2%80%94%20FINANCIAL%20INFORMATION) This section presents the company's unaudited condensed consolidated financial statements and related management discussion and analysis [Condensed Consolidated Financial Statements](index=4&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements%20(Unaudited)) The company reported Q1 2024 total revenue of **$119.1 million** and net income of **$20.0 million**, driven by increased maintenance reserve revenue and equipment sales [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This section presents the company's financial position, detailing assets, liabilities, and equity at specific points in time Balance Sheet Items (In thousands) | Balance Sheet Items (In thousands) | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $7,622 | $7,071 | | Equipment held for operating lease, net | $2,130,327 | $2,112,837 | | Total assets | $2,674,462 | $2,652,344 | | **Liabilities & Equity** | | | | Debt obligations | $1,735,570 | $1,802,881 | | Total liabilities | $2,162,689 | $2,163,417 | | Total shareholders' equity | $461,797 | $438,963 | | Total liabilities, redeemable preferred stock and shareholders' equity | $2,674,462 | $2,652,344 | [Condensed Consolidated Statements of Income](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) This section outlines the company's financial performance over a period, showing revenues, expenses, and net income Income Statement Items (In thousands) | Income Statement Items (In thousands) | Three months ended March 31, 2024 | Three months ended March 31, 2023 | | :--- | :--- | :--- | | Total revenue | $119,083 | $89,535 | | Total expenses | $91,865 | $81,537 | | Income from operations | $27,218 | $7,998 | | Net income | $20,869 | $4,394 | | Net income attributable to common shareholders | $19,957 | $3,572 | | Diluted weighted average income per common share | $3.00 | $0.55 | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section details the sources and uses of cash from operating, investing, and financing activities Cash Flow Items (In thousands) | Cash Flow Items (In thousands) | Three months ended March 31, 2024 | Three months ended March 31, 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | $59,827 | $51,871 | | Net cash used in investing activities | ($63,764) | ($64,282) | | Net cash used in financing activities | ($69,850) | ($12,100) | | Decrease in cash, cash equivalents and restricted cash | ($73,787) | ($24,511) | | Cash, cash equivalents and restricted cash at end of period | $94,242 | $64,505 | [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed disclosures and explanations supporting the condensed consolidated financial statements - As of March 31, 2024, the company's operating lease portfolio included **337** engines, **14** aircraft, and one marine vessel, with a total net book value of **$2.13 billion**[38](index=38&type=chunk) - The company has two reportable segments: Leasing and Related Operations, and Spare Parts Sales. For Q1 2024, the Leasing segment generated **$27.9 million** in income from operations, while the Spare Parts Sales segment had a loss of **$0.7 million**[76](index=76&type=chunk)[78](index=78&type=chunk) - Total debt obligations stood at **$1.74 billion** as of March 31, 2024, secured by virtually all of the company's assets. The company was in **full compliance** with all financial covenants[47](index=47&type=chunk)[50](index=50&type=chunk) - The company utilizes interest rate swaps to hedge against interest rate volatility on its variable rate debt. As of March 31, 2024, the net fair value of these swaps was a **$15.2 million** asset[51](index=51&type=chunk)[55](index=55&type=chunk) - The effective tax rate for Q1 2024 was **30.2%**, compared to **35.7%** for Q1 2023. The rate differs from the **21%** U.S. federal statutory rate primarily due to limitations on the deductibility of executive compensation[58](index=58&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=24&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes Q1 2024 revenue growth to maintenance reserve and equipment sales, managing finance costs, and maintaining strong liquidity [Results of Operations](index=25&type=section&id=Results%20of%20Operations) This section analyzes the company's revenue and expense drivers, explaining changes in operational performance Revenue Breakdown (In thousands) | Revenue Breakdown (In thousands) | Q1 2024 | Q1 2023 | % Change | | :--- | :--- | :--- | :--- | | Lease rent revenue | $52,881 | $53,220 | (0.6)% | | Maintenance reserve revenue | $43,870 | $23,498 | 86.7% | | Gain (loss) on sale of leased equipment | $9,201 | ($133) | nm | | **Total revenue** | **$119,083** | **$89,535** | **33.0%** | - Maintenance reserve revenue increased by **$20.4 million** (**86.7%**), driven by **$6.3 million** in long-term maintenance revenue from engines coming off lease and a significant increase in short-term usage fees[93](index=93&type=chunk) - The company sold eight engines from its lease portfolio, resulting in a net gain of **$9.2 million** in Q1 2024, compared to a net loss of **$0.1 million** from selling two engines in Q1 2023[96](index=96&type=chunk) - Net finance costs increased by **$4.6 million** (**25.1%**) to **$23.0 million**, primarily due to higher short-term interest rates and costs associated with the new **8.0%** fixed-rate WEST VII notes[105](index=105&type=chunk) - Technical expense increased by **$3.9 million** to **$8.3 million**, driven by a higher level of engine repair activity and industry-wide demand[104](index=104&type=chunk) [Financial Position, Liquidity and Capital Resources](index=27&type=section&id=Financial%20Position%2C%20Liquidity%20and%20Capital%20Resources) This section discusses the company's financial health, cash flow, debt compliance, and future capital commitments - Cash provided by operating activities increased by **15.3%** to **$59.8 million** in Q1 2024, up from **$51.9 million** in Q1 2023, mainly due to higher maintenance reserve revenue collections[109](index=109&type=chunk) - The company invested **$62.8 million** in equipment for its operating lease portfolio during Q1 2024[110](index=110&type=chunk) - As of March 31, 2024, the company was in **full compliance** with all debt covenants, including its Interest Coverage Ratio and Total Leverage Ratio requirements[115](index=115&type=chunk) - The company has contractual commitments to purchase **26** new LEAP engines for **$445.2 million** by 2027 and has future overhaul commitments ranging from **$88.5 million** to **$121.5 million** by 2030[117](index=117&type=chunk)[118](index=118&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=29&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Primary market risk is interest rate fluctuations on variable-rate debt, with minor impact after hedges, and currency devaluation risk from non-U.S. lessees - The primary market risk exposure is interest rate risk on **$290.0 million** of outstanding variable rate debt as of March 31, 2024[122](index=122&type=chunk) - A **one percent** change in interest rates on variable rate debt would result in an estimated annual interest expense change of **$0.1 million**, net of interest rate swaps[122](index=122&type=chunk) - The company is exposed to currency devaluation risk, with **69%** of lease rent revenues in Q1 2024 originating from non-United States domiciled lessees[124](index=124&type=chunk) [Controls and Procedures](index=29&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls were effective as of March 31, 2024, with no material changes to internal control over financial reporting - The CEO and CFO concluded that as of March 31, 2024, the company's disclosure controls and procedures were **effective**[125](index=125&type=chunk) - There were no changes in internal control over financial reporting during the fiscal quarter ended March 31, 2024, that materially affected, or are reasonably likely to materially affect, internal controls[127](index=127&type=chunk) [Part II - Other Information](index=29&type=section&id=PART%20II%20%E2%80%94%20OTHER%20INFORMATION) This section provides additional disclosures not covered in the financial statements, including risk factors and equity transactions [Risk Factors](index=29&type=section&id=Item%201A.%20Risk%20Factors) The company reported no material changes to the risk factors previously disclosed in its Annual Report on Form 10-K for the year ended December 31, 2023 - There have been no material changes in the company's risk factors from those discussed in the Annual Report on Form 10-K for the year ended December 31, 2023[130](index=130&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=30&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company did not repurchase any of its common stock during the three months ended March 31, 2024. The existing common stock repurchase plan, allowing for up to **$60.0 million** in repurchases, remains in effect through December 31, 2024 - No shares were repurchased during the three months ended March 31, 2024[131](index=131&type=chunk) - The Board of Directors approved the renewal of the common stock repurchase plan in October 2022, authorizing up to **$60.0 million** in repurchases through December 31, 2024[131](index=131&type=chunk) [Other Information](index=30&type=section&id=Item%205.%20Other%20Information) The company disclosed that Executive Chairman Charles Willis terminated a Rule 10b5-1 trading arrangement on February 9, 2024. The plan, adopted on September 6, 2023, had provided for the potential sale of up to **50,000** shares of common stock - Executive Chairman Charles Willis terminated a Rule 10b5-1 trading arrangement on February 9, 2024. The plan was originally adopted on September 6, 2023, for the sale of up to **50,000** shares[132](index=132&type=chunk)

Financial Performance - Willis Lease Finance Corporation reported record total revenues of $119.1 million for Q1 2024, a 33.0% increase from $89.5 million in Q1 2023[1] - Pre-tax income reached a record $29.9 million in Q1 2024, compared to $6.8 million in Q1 2023, reflecting a 337.2% increase[3] - Core lease rent and maintenance reserve revenues hit an all-time high of $96.8 million, up 26% from $76.7 million in the same period last year[1] - Maintenance reserve revenue surged by 86.7% to $43.9 million in Q1 2024, compared to $23.5 million in Q1 2023[3] - Diluted weighted average income per common share rose to $3.00 in Q1 2024, compared to $0.55 in Q1 2023[7] Asset and Equipment Management - The company purchased equipment totaling $62.8 million in Q1 2024, including two aircraft and four engines, compared to $55.7 million in Q1 2023[3] - The lease portfolio value increased to $2,270.4 million as of March 31, 2024, up from $2,223.4 million at the end of 2023[4] - The book value of lease assets was $2,530.7 million as of March 31, 2024[7] Market Activity - The company experienced a strong market for engine sales, resulting in a gain of $9.2 million on the sale of leased equipment in Q1 2024[3] Expense Management - Total expenses increased by 12.7% to $91.9 million in Q1 2024, up from $81.5 million in Q1 2023[8]

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, 2023 ☐ 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 Registrant's telephone number, including area code (561) 349-9989 Securities registered pursuant to Section 12(b) of the Ac ...

[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** |

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 ______________________________________________________________ ...

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 | | | --- | --- | - ...

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 __________________________________________________________________ ...

Revenue Sources - 60% of the company's lease rent revenue for the year ended December 31, 2022, was generated from foreign customers[135] - The company derived approximately 60% of its core lease rent revenue from international business, exposing it to global market uncertainties[148] - In 2022, 60% of the company's total lease rent revenues came from non-U.S. domiciled lessees, exposing it to currency devaluation risk[251] Financial Risks - The company faces risks from inflation, which has increased costs of labor and other services, potentially reducing profit margins[131] - Substantially all leases require payments in U.S. dollars, posing risks if foreign currencies devalue against the dollar[136] - The company has $727.0 million of outstanding variable rate debt, with an estimated annual interest expense increase of $2.3 million for every 1% rise in interest rates[249] Market Competition - The company operates in a highly competitive market, with primary competitors having significantly greater resources[150] Operational Challenges - The company may face challenges in managing the expansion of its operations effectively[154] - Political and economic instability, such as the conflict between Russia and Ukraine, may adversely affect operations[138] - Changes in trade policies and tariffs could materially impact the company's business and financial condition[145] - The company is subject to stringent governmental regulations, and failure to comply could harm its operations[156] Ownership and Control - As of December 31, 2022, Charles F. Willis, IV beneficially owned approximately 46% of the company's common stock, giving him effective control over the company[158] - Provisions in Delaware law and the company's charter may hinder or delay a change of control, complicating potential acquisitions[166] - The company has authorized the issuance of 6.5% Series A Preferred Stock, which could discourage mergers or proxy contests[167] Potential Transactions - The company is currently negotiating a potential "take-private" transaction with Mitsui & Co., Ltd. and other partners, which could adversely affect its stock price if negotiations fail[159] - The company has incurred significant expenses related to the potential transaction, which will not be recovered if the deal is not completed, potentially harming its business[159] - The company may face challenges in retaining employees and customers if the potential "take-private" transaction creates uncertainty about its future[160] Financial Compliance - As of December 31, 2022, the company was in compliance with financial covenants related to its servicing and administrative agency agreements, but future compliance is uncertain[165] - The company receives monthly fees of 11.5% as servicer and 2.0% as administrative agent for the WEST facilities, which are critical to its cash flows[164]

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 ______________________________________________________________ ...

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 ___________________________________________________________________ ...