- Total revenue grew 13.3% to $49.6 million in the second quarter of 2016 from $43.8 million in the year ago comparable period.
- Second quarter lease rent revenue was $29.2 million, up 12.7% from the year ago comparable period. Lease rent revenue was $57.5 million, up 12.3% for the six months ended June 30, 2016, from the corresponding year ago period.
- Average utilization in the second quarter of 2016 was 90%, higher than the 84% recorded in the year ago comparable period and up from 87% in the prior quarter.
- Maintenance reserve revenue increased 48.1% to $15.5 million in 2Q16 compared to $10.5 million in 2Q15. Maintenance reserve revenue increased 36.7% to $31.3 million in the six months ended June 30, 2016, compared to $22.9 million corresponding year ago period.
- Pretax income of $5.8 million is up $6.7 million from the year ago comparable period.
- Net income of $3.4 million, or $0.49 per diluted share, as compared to $(0.5 million) or $(0.06) per diluted share in the comparable year ago period.
- The book value of owned and managed engines and aircraft was approximately $1.4 billion at the end of the second quarter.
- Tangible book value per share increased 6% to $29.32 at June 30, 2016, compared to $27.72 at December 31, 2015.
- The Company purchased a total of 742,000 shares of common stock in the quarter under the Company's five-year share repurchase plan.
- During the second quarter of 2016 the Company expanded its revolving credit facility to up to $1.0 billion, including a $110 million accordion feature, and extended its maturity to 2021.
- Liquidity available from the revolving credit facility was $316 million at June 30, 2016, up from $151 million at December 31, 2015.
Balance SheetAs of June 30, 2016, Willis Lease had 201 commercial aircraft engines, 10 aircraft and 5 aircraft parts packages and other engine-related equipment in its lease portfolio, with a net book value of $1.1 billion. The Company's funded debt-to-equity ratio was 4.47 to 1 at quarter end compared to 4.14 to 1 at December 31, 2015. Willis Lease Finance 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 in 120 countries. These leasing activities are integrated with engine and aircraft trading, engine lease pools supported by cutting edge technology, as well as various end-of-life solutions for aircraft, engines and aviation materials provided through its subsidiary, Willis Aeronautical Services, Inc. Except for historical information, the matters discussed in this press release contain forward-looking statements that involve risks and uncertainties. Do not unduly rely on forward-looking statements, which give only expectations about the future and are not guarantees. Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update them. 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 terrorist activity, changes in oil prices and other disruptions to the 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 the 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.
|Consolidated Statements of Income (Loss)|
|(In thousands, except per share data, unaudited)||Three Months Ended||Six Months Ended|
|June 30,||%||June 30,||%|
|Lease rent revenue||$||29,181||$||25,882||12.7||%||$||57,457||$||51,142||12.3||%|
|Maintenance reserve revenue||15,514||10,477||48.1||%||31,333||22,916||36.7||%|
|Spare parts and equipment sales||3,673||3,716||(1.2||)%||6,305||5,867||7.5||%|
|Gain on sale of leased equipment||258||3,132||(91.8||)%||3,250||3,862||(15.8||)%|
|Depreciation and amortization expense||16,188||17,626||(8.2||)%||32,607||35,288||(7.6||)%|
|Cost of spare parts and equipment sales||2,787||2,820||(1.2||)%||4,719||4,300||9.7||%|
|Write-down of equipment||1,893||3,058||(38.1||)%||3,929||3,082||27.5||%|
|General and administrative||10,685||9,112||17.3||%||22,437||19,084||17.6||%|
|Net finance costs|
|Loss (gain) on extinguishment of debt||137||-||0.0||%||137||(1,151||)||n/a|
|Total net finance costs||10,534||9,860||6.8||%||20,542||18,276||12.4||%|
|Earnings (loss) from operations||5,728||(1,100||)||n/a||12,604||850||n/a|
|Earnings from joint ventures||56||215||(74.0||)%||243||569||(57.3||)%|
|Income (loss) before income taxes||5,784||(885||)||n/a||12,847||1,419||n/a|
|Income tax expense (benefit)||2,418||(399||)||n/a||5,470||547||n/a|
|Net income (loss)||$||3,366||$||(486||)||n/a||$||7,377||$||872||n/a|
|Basic earnings per common share||$||0.50||$||(0.06||)||$||1.07||$||0.11|
|Diluted earnings per common share||$||0.49||$||(0.06||)||$||1.05||$||0.11|
|Average common shares outstanding||6,685||7,841||6,917||7,845|
|Diluted average common shares outstanding||6,819||7,841||7,047||8,022|
|Consolidated Balance Sheets|
|(In thousands, except share data, unaudited)|
|June 30, 2016||December 31, 2015|
|Cash and cash equivalents||$||21,054||$||9,732|
|Equipment held for operating lease, less accumulated depreciation||1,081,481||1,109,168|
|Equipment held for sale||29,727||23,454|
|Operating lease related receivable, net of allowances||14,270||13,626|
|Spare parts inventory||19,027||20,826|
|Property, equipment & furnishings, less accumulated depreciation||16,714||20,247|
|Intangibles assets, net||816||932|
|LIABILITIES AND SHAREHOLDERS' EQUITY|
|Accounts payable and accrued expenses||$||19,203||$||21,665|
|Deferred income taxes||101,326||96,154|
|Unearned lease revenue||4,834||5,090|
|Common stock ($0.01 par value)||$||67||$||75|
|Paid-in capital in excess of par||7,933||28,720|
|Accumulated other comprehensive loss, net of tax||(176||)||(521||)|
|Total shareholders' equity||196,150||209,223|
|Total liabilities and shareholders' equity||$||1,292,397||$||1,294,285|
CONTACT:Scott B. FlahertyChief Financial Officer(415) 408-4700The Cereghino GroupIR CONTACT: 206-388-5785