Willis Lease Finance Corporation Reports Strong Third Quarter Pre-Tax Income of $34.5 million; Pre-Tax Income Up 69% as Compared to that of the Third Quarter of the Prior Period; Board Declares Recurring Quarterly Dividend of $0.25 Per Share of Common Stock
Willis Lease Finance (WLFC) reported strong Q3 2024 results with total revenues of $146.2 million and pre-tax income of $34.5 million, up 69.4% from Q3 2023. Core lease rent and maintenance reserve revenues increased 26% to $114.7 million. The company announced a quarterly dividend of $0.25 per share, payable November 21, 2024. Lease rent revenue grew 21.2% to $64.9 million, while maintenance reserve revenue increased 32% to $49.8 million. The company secured a new $1.0 billion revolving credit facility and expanded its preferred stock series to $65.0 million. Equipment purchases totaled $166.9 million, including three airframes and 19 engines.
Willis Lease Finance (WLFC) ha riportato risultati solidi nel terzo trimestre del 2024, con ricavi totali di 146,2 milioni di dollari e un reddito ante imposte di 34,5 milioni di dollari, in aumento del 69,4% rispetto al terzo trimestre del 2023. I ricavi da affitto core e dalla riserva di manutenzione sono aumentati del 26% a 114,7 milioni di dollari. L'azienda ha annunciato un dividendo trimestrale di 0,25 dollari per azione, pagabile il 21 novembre 2024. I ricavi da affitto sono cresciuti del 21,2% a 64,9 milioni di dollari, mentre i ricavi dalla riserva di manutenzione sono aumentati del 32% a 49,8 milioni di dollari. L'azienda ha assicurato una nuova linea di credito revolving da 1,0 miliardi di dollari e ha ampliato la sua serie di azioni privilegiate a 65,0 milioni di dollari. Gli acquisti di attrezzature hanno totalizzato 166,9 milioni di dollari, inclusi tre aerostrutture e 19 motori.
Willis Lease Finance (WLFC) reportó sólidos resultados en el tercer trimestre de 2024, con ingresos totales de 146,2 millones de dólares y un ingreso antes de impuestos de 34,5 millones de dólares, un aumento del 69,4% en comparación con el tercer trimestre de 2023. Los ingresos por alquiler principal y la reserva de mantenimiento aumentaron un 26% a 114,7 millones de dólares. La compañía anunció un dividendo trimestral de 0,25 dólares por acción, pagadero el 21 de noviembre de 2024. Los ingresos por alquiler crecieron un 21,2% a 64,9 millones de dólares, mientras que los ingresos por la reserva de mantenimiento aumentaron un 32% a 49,8 millones de dólares. La empresa aseguró una nueva línea de crédito revolving de 1,0 mil millones de dólares y amplió su serie de acciones preferentes a 65,0 millones de dólares. Las compras de equipos totalizaron 166,9 millones de dólares, incluidos tres fuselajes y 19 motores.
윌리스 리스 파이낸스 (WLFC)는 2024년 3분기 실적을 발표했으며, 총 매출은 1억 4,620만 달러, 세전 수익은 3,450만 달러로, 2023년 3분기 대비 69.4% 증가했습니다. 핵심 임대 수익 및 유지보수 적립금 수익은 26% 증가하여 1억 1,470만 달러에 달했습니다. 회사는 주당 0.25달러의 분기 배당금을 발표했으며, 이는 2024년 11월 21일 지급될 예정입니다. 임대 수익은 21.2% 증가하여 6,490만 달러에 이르렀고, 유지보수 적립금 수익은 32% 증가하여 4,980만 달러에 도달했습니다. 회사는 10억 달러 규모의 새로운 회전신용대출을 확보하고, 우선주 시리즈를 6,500만 달러로 확대했습니다. 장비 구매 총액은 1억 6,690만 달러에 달하며, 여기에는 3개의 비행기 구조체와 19개의 엔진이 포함됩니다.
Willis Lease Finance (WLFC) a annoncé de solides résultats pour le troisième trimestre 2024, avec des revenus totaux de 146,2 millions de dollars et un revenu avant impôts de 34,5 millions de dollars, en hausse de 69,4 % par rapport au troisième trimestre 2023. Les revenus locatifs principaux et les revenus des réserves de maintenance ont augmenté de 26 % pour atteindre 114,7 millions de dollars. L’entreprise a annoncé un dividende trimestriel de 0,25 dollar par action, payable le 21 novembre 2024. Les revenus locatifs ont crû de 21,2 % pour atteindre 64,9 millions de dollars, tandis que les revenus des réserves de maintenance ont augmenté de 32 % pour s'élever à 49,8 millions de dollars. L'entreprise a sécurisé une nouvelle facilité de crédit renouvelable de 1,0 milliard de dollars et élargi sa série d'actions privilégiées à 65,0 millions de dollars. Les achats d'équipements ont totalisé 166,9 millions de dollars, y compris trois fuselages et 19 moteurs.
Willis Lease Finance (WLFC) berichtete über starke Ergebnisse im 3. Quartal 2024 mit Gesamteinnahmen von 146,2 Millionen US-Dollar und einem Vorsteuergewinn von 34,5 Millionen US-Dollar, was einem Anstieg von 69,4 % im Vergleich zum 3. Quartal 2023 entspricht. Die Einnahmen aus Hauptmieten und Wartungsrücklagen stiegen um 26 % auf 114,7 Millionen US-Dollar. Das Unternehmen kündigte eine vierteljährliche Dividende von 0,25 US-Dollar pro Aktie an, die am 21. November 2024 zahlbar ist. Die Mieteinnahmen wuchsen um 21,2 % auf 64,9 Millionen US-Dollar, während die Wartungsrücklagen um 32 % auf 49,8 Millionen US-Dollar anstiegen. Das Unternehmen sicherte sich eine neue revolvierende Kreditfazilität in Höhe von 1,0 Milliarden US-Dollar und erweiterte seine Vorzugsaktien-Serie auf 65,0 Millionen US-Dollar. Die Ausgaben für Ausrüstungen beliefen sich auf 166,9 Millionen US-Dollar, einschließlich drei Flugzeugrumpf und 19 Triebwerken.
- Pre-tax income increased 69.4% YoY to $34.5 million
- Core lease rent and maintenance revenues up 26% to $114.7 million
- Lease rent revenue grew 21.2% to $64.9 million
- Maintenance reserve revenue increased 32% to $49.8 million
- Secured new $1.0 billion revolving credit facility
- Gain on sale of leased equipment increased to $9.5 million from $0.8 million YoY
- Diluted EPS increased to $3.37 from $2.13 YoY
- Long-term maintenance revenue decreased to $1.2 million from $3.3 million YoY
- Increased preferred stock dividend rate to 8.35% per annum
COCONUT CREEK, Fla., Nov. 04, 2024 (GLOBE NEWSWIRE) -- Willis Lease Finance Corporation (NASDAQ: WLFC) (“WLFC” or the “Company”) today reported third quarter total revenues of
“Scale through growth has proven to be an important factor in our profitability,” said Austin C. Willis, Chief Executive Officer. “Our platform of complementary services and assets is helping to fuel that growth.”
“Our long-standing efforts to demonstrate the value of engine programs and our vertically integrated products and services continue to deliver for the Company and for our customers,” said Brian R. Hole, President. “The challenge for us now is to deliver that value and scale efficiently to meet existing demand.”
Third Quarter 2024 Highlights
- Lease rent revenue was
$64.9 million in the third quarter of 2024, an increase of21.2% , compared to$53.6 million in the third quarter of 2023. During the three months ended September 30, 2024, we purchased equipment (including capitalized costs) totaling$166.9 million , which consisted of three airframes, 19 engines, and other parts and equipment purchased for our lease portfolio. During the three months ended September 30, 2023, we purchased equipment (including capitalized costs) totaling$31.0 million , which consisted of five engines and other parts and equipment purchased for our lease portfolio. - Maintenance reserve revenue was
$49.8 million in the third quarter of 2024, an increase of32.0% , compared to$37.7 million in the same quarter of 2023, reflecting the high level of usage of our assets by our customer base. Engines on lease with “non-reimbursable” usage fees generated$48.5 million of short-term maintenance revenues in the first three quarters of 2024, compared to$34.4 million in the prior year period. There was$1.2 million long-term maintenance revenue recognized in the three months ended September 30, 2024, compared to$3.3 million long-term maintenance revenue recognized for the three months ended September 30, 2023. 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
$10.9 million in the third quarter of 2024, compared to$3.4 million in the third quarter of 2023. The increase in spare parts sales for the three months ended September 30, 2024 reflects the demand for surplus material that we are seeing as operators extend the lives of their current generation engine portfolios. Equipment sales for the three months ended September 30, 2024 were$1.0 million for the sale of one engine. There were no equipment sales for the three months ended September 30, 2023. - Gain on sale of leased equipment was
$9.5 million in the third quarter of 2024, reflecting the sale of 13 engines and other parts and equipment from the lease portfolio. During the three months ended September 30, 2023, we sold one engine, one airframe, and other parts and equipment for a net gain of$0.8 million . - The Company generated
$34.5 million of pre-tax income in the third quarter of 2024, compared to pre-tax income of$20.3 million in the third quarter of 2023, an increase of69.4% . - The book value of lease assets owned either directly or through our joint ventures, inclusive of our notes receivable, maintenance rights, and investments in sales-type leases was
$3,039.8 million as of September 30, 2024. We continue to see the value of scale through increased profitability as well as our ability to offer bespoke solutions to our customers. - Diluted weighted average income per common share was
$3.37 for the third quarter 2024, compared to diluted weighted average income per common share of$2.13 in the third quarter of 2023. - On September 27, 2024, the Company refinanced and expanded its
$50.0 million of Series A-1 and Series A-2 Preferred Stock into one$65.0 million Series A series, which accrues quarterly dividends at a rate of8.35% per annum, providing incremental growth equity to the business. - On October 31, 2024, the Company entered into a new,
$1.0 billion , five-year, revolving credit facility with a consortium of lenders, refinancing its$500.0 million outstanding credit facility. This new facility will provide incremental capital to support the ongoing growth of the business. - The Company declared its quarterly dividend of
$0.25 per share of common stock, expected to be paid on November 21, 2024, with a record holder date of November 12, 2024.
Balance Sheet
As of September 30, 2024, the Company’s lease portfolio was
Conference Call
WLFC will hold a conference call on Monday, November 4, 2024 at 10:00 a.m. Eastern Standard Time to discuss its third quarter results. Individuals wishing to participate in the conference call should dial: US and Canada (888) 632-5004, International +1 (646) 828-8082, wait for the conference operator and provide the operator with the Conference ID 512645. A digital replay will be available two hours after the completion of the conference. 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®, 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.
Forward-Looking Statements
Except for historical information, the matters discussed in this press release contain forward-looking statements that involve risks and uncertainties. Generally, these statements can be identified by the use of words such as “aim,” “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “feel,” “forecast,” “intend,” “may,” “outlook,” “plan,” “potential,” “predict,” “project,” “seek,” “should,” “will,” “would,” and similar expressions intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Do not unduly rely on forward-looking statements, which give only expectations about the future and are not guarantees. Any forward-looking statement made by the Company is based only on information currently available to the Company and speaks only as of the date on which it is made. We undertake no obligation to update them, except as may be required by law. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results may differ materially from the results discussed in forward-looking statements. Factors that might cause such a difference include, but are not limited to: the effects on the airline industry and the global economy of events such as war, terrorist activity and pandemics; changes in oil prices, rising inflation and other disruptions to world markets; trends in the airline industry and our ability to capitalize on those trends, including growth rates of markets and other economic factors; risks associated with owning and leasing jet engines and aircraft; our ability to successfully negotiate equipment purchases, sales and leases, to collect outstanding amounts due and to control costs and expenses; changes in interest rates and availability of capital, both to us and our customers; our ability to continue to meet changing customer demands; regulatory changes affecting airline operations, aircraft maintenance, accounting standards and taxes; the market value of engines and other assets in our portfolio; and risks detailed in the Company’s Annual Report on Form 10-K and other continuing reports filed with the Securities and Exchange Commission.
Unaudited Condensed Consolidated Statements of Income
(In thousands, except per share data)
| Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||
| 2024 | 2023 | % Change | 2024 | 2023 | % Change | |||||||||||||
| REVENUE | ||||||||||||||||||
| Lease rent revenue | $ | 64,905 | $ | 53,573 | 21.2 | % | $ | 173,652 | $ | 161,209 | 7.7 | % | ||||||
| Maintenance reserve revenue | 49,760 | 37,696 | 32.0 | % | 156,527 | 96,609 | 62.0 | % | ||||||||||
| Spare parts and equipment sales | 10,863 | 3,359 | 223.4 | % | 20,337 | 12,961 | 56.9 | % | ||||||||||
| Interest revenue | 3,412 | 2,106 | 62.0 | % | 7,965 | 6,409 | 24.3 | % | ||||||||||
| Gain on sale of leased equipment | 9,519 | 773 | 1,131.4 | % | 33,148 | 5,101 | 549.8 | % | ||||||||||
| Maintenance services revenue | 5,948 | 6,199 | (4.0 | )% | 17,956 | 16,707 | 7.5 | % | ||||||||||
| Other revenue | 1,816 | 2,039 | (10.9 | )% | 6,841 | 5,279 | 29.6 | % | ||||||||||
| Total revenue | 146,223 | 105,745 | 38.3 | % | 416,426 | 304,275 | 36.9 | % | ||||||||||
| EXPENSES | ||||||||||||||||||
| Depreciation and amortization expense | 23,650 | 23,088 | 2.4 | % | 68,303 | 68,131 | 0.3 | % | ||||||||||
| Cost of spare parts and equipment sales | 8,861 | 2,024 | 337.8 | % | 17,003 | 9,581 | 77.5 | % | ||||||||||
| Cost of maintenance services | 6,402 | 5,580 | 14.7 | % | 17,647 | 14,351 | 23.0 | % | ||||||||||
| Write-down of equipment | 605 | 719 | (15.9 | )% | 866 | 2,390 | (63.8 | )% | ||||||||||
| General and administrative | 40,037 | 26,545 | 50.8 | % | 104,305 | 86,103 | 21.1 | % | ||||||||||
| Technical expense | 5,151 | 8,739 | (41.1 | )% | 17,924 | 19,755 | (9.3 | )% | ||||||||||
| Net finance costs: | ||||||||||||||||||
| Interest expense | 27,813 | 19,052 | 46.0 | % | 75,378 | 56,526 | 33.4 | % | ||||||||||
| Total net finance costs | 27,813 | 19,052 | 46.0 | % | 75,378 | 56,526 | 33.4 | % | ||||||||||
| Total expenses | 112,519 | 85,747 | 31.2 | % | 301,426 | 256,837 | 17.4 | % | ||||||||||
| Income from operations | 33,704 | 19,998 | 68.5 | % | 115,000 | 47,438 | 142.4 | % | ||||||||||
| Income (loss) from joint ventures | 756 | 346 | 118.5 | % | 7,255 | (1,289 | ) | nm | ||||||||||
| Income before income taxes | 34,460 | 20,344 | 69.4 | % | 122,255 | 46,149 | 164.9 | % | ||||||||||
| Income tax expense | 10,364 | 5,726 | 81.0 | % | 34,704 | 13,321 | 160.5 | % | ||||||||||
| Net income | 24,096 | 14,618 | 64.8 | % | 87,551 | 32,828 | 166.7 | % | ||||||||||
| Preferred stock dividends | 948 | 819 | 15.8 | % | 2,758 | 2,431 | 13.5 | % | ||||||||||
| Accretion of preferred stock issuance costs | 15 | 21 | (28.6 | )% | 39 | 63 | (38.1 | )% | ||||||||||
| Net income attributable to common shareholders | $ | 23,133 | $ | 13,778 | 67.9 | % | $ | 84,754 | $ | 30,334 | 179.4 | % | ||||||
| Basic weighted average income per common share | $ | 3.51 | $ | 2.16 | $ | 13.01 | $ | 4.83 | ||||||||||
| Diluted weighted average income per common share | $ | 3.37 | $ | 2.13 | $ | 12.57 | $ | 4.70 | ||||||||||
| Basic weighted average common shares outstanding | 6,582 | 6,365 | 6,513 | 6,282 | ||||||||||||||
| Diluted weighted average common shares outstanding | 6,859 | 6,466 | 6,745 | 6,454 | ||||||||||||||
Unaudited Condensed Consolidated Balance Sheets
(In thousands, except per share data)
| September 30, 2024 | December 31, 2023 | |||||
| ASSETS | ||||||
| Cash and cash equivalents | $ | 5,791 | $ | 7,071 | ||
| Restricted cash | 99,333 | 160,958 | ||||
| Equipment held for operating lease, less accumulated depreciation | 2,435,583 | 2,112,837 | ||||
| Maintenance rights | 31,506 | 9,180 | ||||
| Equipment held for sale | 4,286 | 805 | ||||
| Receivables, net | 37,069 | 58,485 | ||||
| Spare parts inventory | 74,089 | 40,954 | ||||
| Investments | 61,891 | 58,044 | ||||
| Property, equipment & furnishings, less accumulated depreciation | 36,119 | 37,160 | ||||
| Intangible assets, net | 4,177 | 1,040 | ||||
| Notes receivable, net | 175,358 | 92,621 | ||||
| Investments in sales-type leases, net | 23,204 | 8,759 | ||||
| Other assets | 55,187 | 64,430 | ||||
| Total assets | $ | 3,043,593 | $ | 2,652,344 | ||
| LIABILITIES, REDEEMABLE PREFERRED STOCK AND SHAREHOLDERS’ EQUITY | ||||||
| Liabilities: | ||||||
| Accounts payable and accrued expenses | $ | 119,560 | $ | 52,937 | ||
| Deferred income taxes | 178,177 | 147,779 | ||||
| Debt obligations | 1,990,455 | 1,802,881 | ||||
| Maintenance reserves | 108,090 | 92,497 | ||||
| Security deposits | 27,203 | 23,790 | ||||
| Unearned revenue | 39,294 | 43,533 | ||||
| Total liabilities | 2,462,779 | 2,163,417 | ||||
| Redeemable preferred stock ( | 63,053 | 49,964 | ||||
| Shareholders’ equity: | ||||||
| Common stock ( | 72 | 68 | ||||
| Paid-in capital in excess of par | 41,035 | 29,667 | ||||
| Retained earnings | 473,609 | 397,781 | ||||
| Accumulated other comprehensive income, net of tax | 3,045 | 11,447 | ||||
| Total shareholders’ equity | 517,761 | 438,963 | ||||
| Total liabilities, redeemable preferred stock and shareholders’ equity | $ | 3,043,593 | $ | 2,652,344 | ||
| CONTACT: | Scott B. Flaherty |
| Executive Vice President & Chief Financial Officer | |
| (561) 413-0112 |
FAQ
What was WLFC's pre-tax income for Q3 2024?
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