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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