Press Release: Record Results for Willis Lease Finance Corporation in 2024

Dow Jones
10 Mar

Record Results for Willis Lease Finance Corporation in 2024

COCONUT CREEK, Fla., March 10, 2025 (GLOBE NEWSWIRE) -- Willis Lease Finance Corporation $(WLFC)$ ("WLFC") today reported record annual total revenues of $569.2 million and pre-tax income of $152.6 million. For the year ended December 31, 2024, aggregate, core lease rent and maintenance reserve revenues were at an all-time record high of $452.1 million, up 30.4% as compared to $346.8 million in 2023. The growth was predominantly driven by core, recurring lease and maintenance revenues associated with a strong aviation marketplace.

"In 2024 we leveraged our strong earnings to reinvest in the most in demand engines and aircraft," said Austin C. Willis, Chief Executive Officer of WLFC. "Our ability to profitably deploy nearly $1 billion is a direct reflection on how our platform maximizes the value of assets."

2024 Highlights

   -- The Company generated a record $152.6 million of pre-tax income in 2024, 
      up 127.4% compared to $67.1 million in 2023. 
   -- Lease rent revenue increased by $25.1 million, or 11.8%, to a record 
      $238.2 million in 2024, compared to $213.1 million in 2023. 
   -- Maintenance reserve revenue was $213.9 million, another record high in 
      2024, an increase of 60.0%, compared to $133.7 million in 2023, 
      reflecting the increased size of the lease portfolio and specifically 
      those leases on short-term lease conditions. Engines out on lease with 
      "non-reimbursable" usage fees generated $174.5 million of short-term 
      maintenance revenues in 2024, compared to $118.3 million in the prior 
      year. There was $39.4 million of long-term maintenance revenue recognized 
      in 2024, compared to $15.4 million in the prior year. Long-term 
      maintenance revenue is recognized at the end of a lease period as the 
      related maintenance reserve liability is released from the balance sheet. 
   -- Spare parts and equipment sales increased to $27.1 million in 2024, 
      compared to $20.4 million in 2023. The increase in spare parts sales 
      reflects the demand for surplus material that we are seeing as operators 
      extend the lives of their current generation engine portfolios. Equipment 
      sales were $1.0 million for the sale of one engine in 2024, as compared 
      to no equipment sales in 2023. 
   -- Gain on sale of leased equipment was $45.1 million in 2024, reflecting 
      the sale of 35 engines, eight airframes, and other parts and equipment 
      from the lease portfolio. Gain on sale of leased equipment was $10.6 
      million in 2023, reflecting the sale of 28 engines, one airframe, and 
      other parts and equipment from the lease portfolio. 
   -- The book value of lease assets including equipment held for operating 
      lease, maintenance rights, notes receivable, and investments in 
      sales-type leases, increased to $2,872.3 million as of December 31, 2024, 
      as compared to $2,223.4 million as of December 31, 2023. Inclusive of 
      lease assets in our joint ventures, the book value of lease assets 
      increased to $3,238.4 million as of December 31, 2024, as compared to 
      $2,495.4 million as of December 31, 2023. 
   -- Diluted weighted average income per common share was $15.34 for 2024, 
      compared to $6.23 in 2023. 
   -- Book value per diluted weighted average common share outstanding 
      increased to $80.74 at December 31, 2024, compared to $67.73 at December 
      31, 2023. 
   -- The Company paid its second consecutive, recurring quarterly dividend on 
      its common stock of $0.25 per share in November of 2024, and subsequent 
      to year end 2024, declared and paid its third consecutive, recurring 
      dividend on its common stock of $0.25 per share in February of this year. 
   -- In October of 2024, the Company refinanced and expanded its $500 million 
      credit facility, entering into a new five-year, $1.0 billion credit 
      facility, providing incremental liquidity to support our continued 
      growth. 

Balance Sheet

As of December 31, 2024, the Company's lease portfolio was $2,872.3 million, consisting of $2,635.9 million of equipment held in our operating lease portfolio, $183.6 million of notes receivable, $31.1 million of maintenance rights, and $21.6 million of investments in sales-type leases, which represented 354 engines, 16 aircraft, one marine vessel and other leased parts and equipment. As of December 31, 2023, the Company's lease portfolio was $2,223.4 million, consisting of $2,112.8 million of equipment held in our operating lease portfolio, $92.6 million of notes receivable, $9.2 million of maintenance rights, and $8.8 million of investments in sales-type leases, which represented 337 engines, 12 aircraft, one marine vessel and other leased parts and equipment.

Conference Call

WLFC will hold a conference call on Monday, March 10, 2025 at 10:00 a.m. Eastern Time to discuss its fourth quarter and full year 2024 results. Individuals wishing to participate in the conference call should dial: US and Canada (877) 612-6725, International +1 (646) 828-8082, wait for the conference operator and provide the operator with the Conference ID 808553. A digital replay will be available two hours after the completion of the conference call. To access the replay, please visit our website at www.wlfc.global under the Investor Relations section for details.

Willis Lease Finance Corporation

Willis Lease Finance Corporation leases large and regional spare commercial aircraft engines, auxiliary power units and aircraft to airlines, aircraft engine manufacturers and maintenance, repair and overhaul providers worldwide. These leasing activities are integrated with engine and aircraft trading, engine lease pools and asset management services through Willis Asset Management Limited, as well as various end-of-life solutions for engines and aviation materials provided through Willis Aeronautical Services, Inc. Additionally, through Willis Engine Repair Center$(R)$, Jet Centre by Willis, and Willis Aviation Services Limited, the Company's service offerings include Part 145 engine maintenance, aircraft line and base maintenance, aircraft disassembly, parking and storage, airport FBO and ground and cargo handling services.

 
Unaudited Consolidated Statements of Income 
 (In thousands, except per share data) 
                 Three Months Ended                         Years Ended 
                    December 31,                            December 31, 
                   2024      2023     % Change             2024              2023     % Change 
                  -------   -------  ----------  -------  -------  -------  -------  ---------- 
REVENUE 
Lease rent 
 revenue         $ 64,584  $ 51,929    24.4%           $  238,236        $  213,138    11.8% 
Maintenance 
 reserve 
 revenue           57,381    37,059    54.8%              213,908           133,668    60.0% 
Spare parts and 
 equipment 
 sales              6,762     7,398    (8.6)%              27,099            20,359    33.1% 
Interest 
 revenue            3,718     2,311    60.9%               11,683             8,721    34.0% 
Gain on sale of 
 leased 
 equipment         11,915     5,480   117.4%               45,063            10,581   325.9% 
Maintenance 
 services 
 revenue            6,202     7,461   (16.9)%              24,158            24,168      --% 
Other revenue       2,235     2,641   (15.4)%               9,076             7,920    14.6% 
                  -------   -------              -------  -------  -------  ------- 
Total revenue     152,797   114,279    33.7%              569,223           418,555    36.0% 
                  -------   -------              -------  -------  -------  ------- 
 
EXPENSES 
Depreciation 
 and 
 amortization 
 expense           24,157    22,794     6.0%               92,460            90,925     1.7% 
Cost of spare 
 parts and 
 equipment 
 sales              5,849     5,626     4.0%               22,852            15,207    50.3% 
Cost of 
 maintenance 
 services           6,823     6,808     0.2%               24,470            21,159    15.6% 
Write-down of 
 equipment         10,362     2,008   416.0%               11,228             4,398   155.3% 
General and 
 administrative    42,452    29,637    43.2%              146,757           115,740    26.8% 
Technical 
 expense            4,370     8,353   (47.7)%              22,294            28,109   (20.7)% 
Net finance 
costs: 
    Interest 
     expense       29,386    22,269    32.0%              104,764            78,795    33.0% 
                  -------   -------              -------  -------  -------  ------- 
Total net 
 finance costs     29,386    22,269    32.0%              104,764            78,795    33.0% 
                  -------   -------              -------  -------  -------  ------- 
Total expenses    123,399    97,495    26.6%              424,825           354,333    19.9% 
                  -------   -------              -------  -------  -------  ------- 
 
Income from 
 operations        29,398    16,784    75.2%              144,398            64,222   124.8% 
Income from 
 joint 
 ventures             992     4,197   (76.4)%               8,247             2,908   183.6% 
                  -------   -------              -------  -------  -------  ------- 
Income before 
 income taxes      30,390    20,981    44.8%              152,645            67,130   127.4% 
Income tax 
 expense            9,329    10,028    (7.0)%              44,033            23,349    88.6% 
                  -------   -------              -------  -------  -------  ------- 
Net income         21,061    10,953    92.3%              108,612            43,781   148.1% 
Preferred stock 
 dividends          1,368       903    51.5%                4,126             3,334    23.8% 
Accretion of 
 preferred 
 stock issuance 
 costs                 69        12   475.0%                  108                75    44.0% 
                  -------   -------              -------  -------  -------  ------- 
Net income 
 attributable 
 to common 
 shareholders    $ 19,624  $ 10,038    95.5%           $  104,378        $   40,372   158.5% 
                  =======   =======              =======  =======  =======  ======= 
 
Basic weighted 
 average income 
 per common 
 share           $   2.97  $   1.57                    $    15.97        $     6.40 
                  =======   =======              =======  =======  =======  ======= 
Diluted 
 weighted 
 average income 
 per common 
 share           $   2.81  $   1.53                    $    15.34        $     6.23 
                  =======   =======              =======  =======  =======  ======= 
 
Basic weighted 
 average common 
 shares 
 outstanding        6,603     6,375                         6,536             6,305 
Diluted 
 weighted 
 average common 
 shares 
 outstanding        6,983     6,559                         6,804             6,481 
 
 
Unaudited Consolidated Balance 
Sheets 
(In thousands, except per share 
data) 
                                     December 31, 2024    December 31, 2023 
                                    -------------------  ------------------- 
ASSETS 
Cash and cash equivalents            $            9,110   $            7,071 
Restricted cash                                 123,392              160,958 
Equipment held for operating 
 lease, less accumulated 
 depreciation                                 2,635,910            2,112,837 
Maintenance rights                               31,134                9,180 
Equipment held for sale                          12,269                  805 
Receivables, net                                 38,291               58,485 
Spare parts inventory                            72,150               40,954 
Investments                                      62,670               58,044 
Property, equipment & furnishings, 
 less accumulated depreciation                   48,061               37,160 
Intangible assets, net                            2,929                1,040 
Notes receivable, net                           183,629               92,621 
Investments in sales-type leases, 
 net                                             21,606                8,759 
Other assets                                     56,045               64,430 
                                        ---------------      --------------- 
Total assets                         $        3,297,196   $        2,652,344 
                                        ===============      =============== 
 
LIABILITIES, REDEEMABLE PREFERRED 
STOCK AND SHAREHOLDERS' EQUITY 
Liabilities: 
Accounts payable and accrued 
 expenses                            $           75,983   $           52,937 
Deferred income taxes                           185,049              147,779 
Debt obligations                              2,264,552            1,802,881 
Maintenance reserves                             97,817               92,497 
Security deposits                                23,424               23,790 
Unearned revenue                                 37,911               43,533 
                                        ---------------      --------------- 
Total liabilities                             2,684,736            2,163,417 
                                        ---------------      --------------- 
 
Redeemable preferred stock ($0.01 
 par value)                                      63,122               49,964 
 
Shareholders' equity: 
Common stock ($0.01 par value)                       72                   68 
Paid-in capital in excess of par                 50,928               29,667 
Retained earnings                               491,439              397,781 
Accumulated other comprehensive 
 income, net of tax                               6,899               11,447 
                                        ---------------      --------------- 
Total shareholders' equity                      549,338              438,963 
                                        ---------------      --------------- 
Total liabilities, redeemable 
 preferred stock and shareholders' 
 equity                              $        3,297,196   $        2,652,344 
                                        ===============      =============== 
 
 
CONTACT:    Scott B. Flaherty 
            Chief Financial Officer 
            561.413.0112 
 

(END) Dow Jones Newswires

March 10, 2025 06:30 ET (10:30 GMT)

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