- Total revenue grew 36.7% to $67.8 million in the second quarter of 2017, from $49.6 million in the year ago period.
- Average utilization in the second quarter of 2017 was 88% as compared to 89% in the preceding quarter. Utilization was 90% at the end of Q2 2017.
- Second quarter lease rent revenue was $31.3 million, up 7.4% year-over-year.
- Maintenance reserve revenue for the six months ended June 30, 2017 increased 40% to $43.8 million compared to $31.3 million in the year ago period.
- The Company purchased $81.5 million and sold $21.2 million of assets in the second quarter of 2017.
- The equipment portfolio grew 2.1% to $1.161 billion, from $1.137 billion at year end 2016, net of asset sales and depreciation expense.
- Tangible book value per share increased 7% to $32.52 at June 30, 2017, as compared to $30.66 per share at December 31, 2016.
- Under the Company's five-year repurchase plan, the Company purchased a total of 114,833 shares of common stock in the quarter for $2.7 million.
- The Company maintained $250 million of undrawn revolver capacity at June 30, 2017.
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.
|Consolidated Statements of Income|
|(In thousands, except per share data, unaudited)||Three Months Ended||Six Months Ended|
|June 30,||%||June 30,||%|
|Lease rent revenue||$||31,337||$||29,181||7.4||%||$||61,572||$||57,457||7.2||%|
|Maintenance reserve revenue||11,881||15,514||(23.4||)%||43,843||31,333||39.9||%|
|Spare parts and equipment sales||19,383||3,673||427.7||%||31,979||6,305||407.2||%|
|Gain on sale of leased equipment||3,527||258||1267.1||%||4,509||3,250||38.7||%|
|Depreciation and amortization expense||16,015||16,188||(1.1||)%||32,644||32,607||0.1||%|
|Cost of spare parts and equipment sales||13,730||2,787||392.6||%||23,130||4,719||390.1||%|
|Write-down of equipment||2,277||1,893||20.3||%||15,285||3,929||289.0||%|
|General and administrative||13,065||10,685||22.3||%||26,265||22,437||17.1||%|
|Net finance costs|
|Loss on extinguishment of debt||-||137||(100.0||)%||-||137||(100.0||)%|
|Total net finance costs||11,312||10,534||7.4||%||22,178||20,542||8.0||%|
|Earnings from operations||8,997||5,728||57.1||%||21,549||12,604||71.0||%|
|Earnings from joint ventures||1,161||56||n/a||3,015||243||n/a|
|Income before income taxes||10,158||5,784||75.6||%||24,564||12,847||91.2||%|
|Income tax expense||4,168||2,418||72.4||%||10,406||5,470||90.2||%|
|Preferred stock dividends||324||-||100.0||%||646||-||(100.0||)%|
|Accretion of preferred stock issuance costs||9||-||100.0||%||17||-||100.0||%|
|Net income attributable to common shareholders||$||5,657||$||3,366||68.1||%||$||13,495||$||7,377||82.9||%|
|Basic earnings per common share||$||0.94||$||0.50||$||2.22||$||1.07|
|Diluted earnings per common share||$||0.92||$||0.49||$||2.18||$||1.05|
|Average common shares outstanding||6,036||6,685||6,075||6,917|
|Diluted average common shares outstanding||6,142||6,819||6,201||7,047|
|Consolidated Balance Sheets|
|(In thousands, except share data, unaudited)|
|June 30, 2017||December 31, 2016|
|Cash and cash equivalents||$||11,256||$||10,076|
|Equipment held for operating lease, less accumulated depreciation||1,160,545||1,136,603|
|Equipment held for sale||27,826||30,710|
|Operating lease related receivable, net of allowances||12,867||16,484|
|Spare parts inventory||22,955||25,443|
|Property, equipment & furnishings, less accumulated depreciation||16,400||16,802|
|Intangibles assets, net||1,980||2,182|
|LIABILITIES AND SHAREHOLDERS' EQUITY|
|Accounts payable and accrued expenses||$||24,452||$||17,792|
|Deferred income taxes||114,127||104,978|
|Unearned lease revenue||5,195||5,823|
|Redeemable preferred stock ($0.01 par value)||$||19,777||$||19,760|
|Common stock ($0.01 par value)||64||64|
|Paid-in capital in excess of par||708||2,512|
|Accumulated other comprehensive loss, net of tax||(834||)||(1,045||)|
|Total shareholders' equity||209,435||196,260|
|Total liabilities and shareholders' equity||$||1,386,354||$||1,337,887|
CONTACT:Scott B. FlahertyChief Financial Officer(415) 408-4700