"Having known Caroline for many years, I am thrilled to welcome her to WLFC. She is an outstanding individual and an exceptional leader, possessing the skillset required to drive and support the continued growth and success of our services business units," said Garry Failler. For more information on Willis Lease Finance Corporation and the Company's comprehensive aviation solutions, visit www.wlfc.global. Ms. Vandedrinck brings a wealth of experience and expertise to lead and grow WLFC's vertically integrat ...

[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 ______________________________________________________________ ...