- Total revenue grew 53.7% to $77.9 million in the first quarter of 2017 from $50.7 million in the year ago period.
- Average utilization in the first quarter of 2017 was 89% as compared to 92% in the preceding quarter and 87% in the year ago comparable period.
- First quarter lease rent revenue was $30.2 million, up 6.9% year-over-year and down 3% from the prior quarter.
- Maintenance reserve revenue increased 102% to $32 million compared to $15.8 million and $11.5 million in 1Q16 and 4Q16, respectively.
- The Company purchased $40.3 million of assets in the first quarter of 2017, and sold $32.7 million of assets.
- During the quarter the Company recorded a $13 million non-cash writedown associated with the disposition, retirement and part out of certain assets.
- The equipment portfolio grew 1.0% in the first quarter of 2017 to $1.095 billion compared to 1Q16.
- Tangible book value per share increased 1% to $31.49 at March 31, 2017, compared to $30.66 at the end of the first quarter 2016.
- A total of 40,479 shares of common stock were repurchased in the quarter under the Company's five-year repurchase plan for $0.9 million.
- Liquidity available from the revolving credit facility was $305 million at March 31, 2017, up from $161 million a year ago.
- Willis Aero spare parts sales totaled $6.2 million with a margin of $1.5 million in the first quarter of 2017. In the year ago period, spare parts sales were $2.6 million with a margin of $0.7 million.
- Trading equipment sales in the first quarter of 2017 were $6.4 million, with a margin of $1.7 million.
Willis Lease FinanceWillis 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 and asset management services supported by cutting edge technology through its subsidiary Willis Asset Management, 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.
|WILLIS LEASE FINANCE CORPORATION|
|Consolidated Statements of Income (Loss)|
|(In thousands, except per share data, unaudited)|
|Three Months Ended|
|March 31,||December 31,||March 31,||% Change vs||% Change vs|
|2017||2016||2016||Dec 31, 2016||Mar 31, 2016|
|Lease rent revenue||$||30,233||$||31,168||$||28,276||(3.0||)%||6.9||%|
|Maintenance reserve revenue||31,961||11,529||15,819||177.2||%||102.0||%|
|Spare parts and equipment sales||12,596||7,318||2,632||72.1||%||378.6||%|
|Gain on sale of leased equipment||983||52||2,992||1790.4||%||(67.1||)%|
|Depreciation and amortization expense||16,628||17,045||16,419||(2.4||)%||1.3||%|
|Cost of spare parts and equipment sales||9,400||5,508||1,932||70.7||%||386.5||%|
|Write-down of equipment||13,009||3,590||2,036||262.4||%||538.9||%|
|General and administrative||13,201||13,086||11,752||0.9||%||12.3||%|
|Net finance costs||10,865||10,509||10,008||3.4||%||8.6||%|
|Earnings from operations||12,551||3,658||6,876||243.1||%||82.5||%|
|Earnings from joint ventures||1,854||939||187||97.4||%||891.4||%|
|Income before income taxes||14,405||4,597||7,063||213.4||%||104.0||%|
|Income tax expense||6,238||1,890||3,052||230.1||%||104.4||%|
|Preferred stock dividends||321||281||-||14.2||%||100.0||%|
|Accretion of preferred stock issuance costs||7||8||-||(12.5||)%||100.0||%|
|Net income attributable to common shareholders||$||7,839||$||2,418||$||4,011||224.2||%||95.4||%|
|Basic earnings per common share||$||1.28||$||0.39||$||0.56|
|Diluted earnings per common share||$||1.26||$||0.39||$||0.55|
|Average common shares outstanding||6,114||6,149||7,149|
|Diluted average common shares outstanding||6,240||6,275||7,272|
|WILLIS LEASE FINANCE CORPORATION|
|Consolidated Balance Sheets|
|(In thousands, except share data, unaudited)|
|March 31, 2017||December 31, 2016||March 31, 2016|
|Cash and cash equivalents||$||11,890||$||10,076||$||12,743|
|Equipment held for operating lease, less accumulated depreciation||1,094,673||1,136,603||1,083,506|
|Equipment held for sale||58,083||30,710||25,971|
|Operating lease related receivable, net of allowances||11,771||16,484||15,690|
|Spare parts inventory||24,475||25,443||19,293|
|Property, equipment & furnishings, less accumulated depreciation||16,638||16,802||17,001|
|Intangibles assets, net||2,081||2,182||874|
|LIABILITIES, REDEEMABLE PREFERRED STOCK AND SHAREHOLDERS' EQUITY|
|Accounts payable and accrued expenses||$||22,239||$||17,792||$||23,087|
|Deferred income taxes||110,063||104,978||98,889|
|Unearned lease revenue||5,243||5,823||4,351|
|Redeemable preferred stock ($0.01 par value)||19,767||19,760||-|
|Common stock ($0.01 par value)||65||64||74|
|Paid-in capital in excess of par||2,324||2,512||24,925|
|Accumulated other comprehensive loss, net of tax||(761||)||(1,045||)||(809||)|
|Total shareholders' equity||205,469||196,260||209,150|
|Total liabilities, redeemable preferred stock and shareholders' equity||$||1,322,989||$||1,337,887||$||1,276,136|
CONTACT: Scott B. FlahertyChief Financial Officer(415) 408-4700