Willis Lease Finance Reports 2016 Pre-tax Profit Up 87.4% to $23.9 Million
2017年3月11日 - 6:30AM
Willis Lease Finance Corporation (NASDAQ:WLFC) today reported
pre-tax earnings for 2016 of $23.9 million, up 87.4% from $12.8
million in 2015, on record revenue of $207.3 million. Net
income attributable to common shareholders for 2016 was $13.8
million, or $2.05 per diluted share, compared to $6.5 million, or
$0.81 per diluted share in 2015. Fourth quarter 2016 net income
attributable to common shareholders was $2.4 million, compared to
$3.0 million in 2015, or $0.39 per diluted share in both periods.
Fourth quarter 2016 results were impacted by a $3.6 million
non-cash write down as compared to a $0.6 million non-cash write
down in the fourth quarter 2015.
“I am very pleased that on a pre-tax basis our
financial performance in 2016 was our most profitable since 2009,”
said Charles F. Willis, Chairman and CEO. “Our fourth quarter
and full year results reflect a combination of improved
utilization, growth in the lease portfolio and the continued
effective management of our assets—all contributing to record total
revenues of over $207 million. We also broadened our sources of
equity through the issuance of preferred equity, which will serve
our growth plans well.”
“In addition to delivering solid financial
results, the Company achieved a number of objectives in 2016 that
position us well for the future,” said Brian R. Hole, President.
“We amended both of our principal debt facilities, improving the
flexibility and capacity of our ability to borrow and to manage our
portfolio. We also formed Willis Asset Management Limited to
purchase the consultancy business of Total Engine Support Limited
and we now own and manage almost 800 engines, making us the largest
independent owner and manager of engines in the world. We expect
that the capabilities of the people and systems at WAM will help us
develop and deliver cutting edge programs for our customers,”
explained Hole.
2016 Highlights (at or for the
periods ended December 31, 2016 as compared to December 31,
2015):
- Pre-tax earnings increased 87.4% to $23.9 million in 2016 from
$12.8 million in 2015.
- Average utilization in the fourth quarter was sustained at 92%
up from 91% reported for the year ago period.
- Total revenues grew 4.7% to $207.3 million in 2016, fueled
primarily by a growing lease portfolio, higher portfolio
utilization and rising lease rates.
- Lease rent revenues grew 11.0% to $119.9 million and 8.0% to
$31.2 million for the full year and fourth quarter of 2016,
respectively.
- The equipment portfolio grew 2.5% in 2016 to $1.137 billion
from $1.109 billion a year ago.
- The Company purchased $149 million of equipment in 2016 as
compared to $171 million in 2015. In the fourth quarter of
2016, the Company purchased two aircraft and fourteen engines for
$64 million.
- Tangible book value per share increased 10.6% to $30.66 at
December 31, 2016, compared to $27.72 a year ago.
- We repurchased a total of 1.2 million shares in 2016 at a
weighted average price of $23.71 per share. The Company
repurchased 153,925 shares in the fourth quarter.
- On October 14, 2016, the Company issued $20.0 million of 6.5%
Series A Preferred Stock.
- On October 26, 2016, through its wholly owned subsidiary Willis
Asset Management Limited, the Company purchased the consultancy
business of Total Engine Support Limited, significantly improving
the Company’s asset management service offering and growing the
Company’s owned and managed portfolio of engines, aircraft and
equipment by over 500 assets.
“We believe we have a unique service offering in leasing,
trading and asset management, materials and technical services,
which customers are beginning to leverage,” said Hole. “There is a
lot of competition in our markets but none that offers our full
complement of products and services combined with our decades-long
track record of delivering on promises. We will continue to
emphasize creativity and reliability as we grow the business going
forward.”
Balance Sheet
As of December 31, 2016, Willis Lease had 208
commercial aircraft engines, 11 aircraft and 5 aircraft parts
packages and other engine-related equipment in its lease portfolio,
with a net book value of $1.137 billion, compared to 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 $1.109 billion, a year ago. The Company’s funded
debt-to-equity ratio was 4.17 to 1 at year end, compared to 4.14 to
1 a year ago.
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 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 |
|
|
|
|
Years Ended |
|
|
|
|
December 31, |
|
|
% |
|
December 31, |
|
% |
|
|
|
2016 |
|
|
|
2015 |
|
|
Change |
|
|
2016 |
|
|
2015 |
|
|
Change |
|
REVENUE |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lease rent revenue |
$ |
31,168 |
|
|
$ |
28,849 |
|
|
8.0 |
% |
|
$ |
119,895 |
|
$ |
108,046 |
|
|
11.0 |
% |
|
Maintenance reserve
revenue |
|
11,529 |
|
|
|
14,361 |
|
|
(19.7 |
)% |
|
|
57,091 |
|
|
53,396 |
|
|
6.9 |
% |
|
Spare parts and
equipment sales |
|
7,318 |
|
|
|
10,582 |
|
|
(30.8 |
)% |
|
|
17,783 |
|
|
25,582 |
|
|
(30.5 |
)% |
|
Gain on sale of leased
equipment |
|
52 |
|
|
|
654 |
|
|
(92.0 |
)% |
|
|
3,482 |
|
|
8,320 |
|
|
(58.1 |
)% |
|
Other revenue |
|
5,409 |
|
|
|
739 |
|
|
631.9 |
% |
|
|
9,023 |
|
|
2,718 |
|
|
232.0 |
% |
|
Total revenue |
|
55,476 |
|
|
|
55,185 |
|
|
0.5 |
% |
|
|
207,274 |
|
|
198,062 |
|
|
4.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EXPENSES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization expense |
|
17,045 |
|
|
|
17,034 |
|
|
0.1 |
% |
|
|
66,280 |
|
|
69,424 |
|
|
(4.5 |
)% |
|
Cost of spare parts and
equipment sales |
|
5,508 |
|
|
|
7,630 |
|
|
(27.8 |
)% |
|
|
13,293 |
|
|
17,849 |
|
|
(25.5 |
)% |
|
Write-down of
equipment |
|
3,590 |
|
|
|
601 |
|
|
497.3 |
% |
|
|
9,514 |
|
|
9,181 |
|
|
3.6 |
% |
|
General and
administrative |
|
13,086 |
|
|
|
11,918 |
|
|
9.8 |
% |
|
|
47,780 |
|
|
42,744 |
|
|
11.8 |
% |
|
Technical expense |
|
2,080 |
|
|
|
1,567 |
|
|
32.7 |
% |
|
|
6,993 |
|
|
9,403 |
|
|
(25.6 |
)% |
|
Net finance costs |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense |
|
10,509 |
|
|
|
9,780 |
|
|
7.5 |
% |
|
|
41,144 |
|
|
39,012 |
|
|
5.5 |
% |
|
Loss (gain) on
extinguishment of debt |
|
- |
|
|
|
- |
|
|
0.0 |
% |
|
|
137 |
|
|
(1,151 |
) |
|
(111.9 |
)% |
|
Total net finance
costs |
|
10,509 |
|
|
|
9,780 |
|
|
7.5 |
% |
|
|
41,281 |
|
|
37,861 |
|
|
9.0 |
% |
|
Total expenses |
|
51,818 |
|
|
|
48,530 |
|
|
6.8 |
% |
|
|
185,141 |
|
|
186,462 |
|
|
(0.7 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings from
operations |
|
3,658 |
|
|
|
6,655 |
|
|
(45.0 |
)% |
|
|
22,133 |
|
|
11,600 |
|
|
90.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings from joint
ventures |
|
939 |
|
|
|
48 |
|
|
n/a |
|
|
1,813 |
|
|
1,175 |
|
|
54.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes |
|
4,597 |
|
|
|
6,703 |
|
|
(31.4 |
)% |
|
|
23,946 |
|
|
12,775 |
|
|
87.4 |
% |
|
Income tax
expense |
|
1,890 |
|
|
|
3,659 |
|
|
(48.3 |
)% |
|
|
9,877 |
|
|
6,315 |
|
|
56.4 |
% |
|
Net income |
$ |
2,707 |
|
|
$ |
3,044 |
|
|
(11.1 |
)% |
|
$ |
14,069 |
|
$ |
6,460 |
|
|
117.8 |
% |
|
Accretion of
preferred stock issuance costs |
|
8 |
|
|
|
- |
|
|
100.0 |
% |
|
|
8 |
|
|
- |
|
|
100.0 |
% |
|
Preferred stock
dividends |
|
281 |
|
|
|
- |
|
|
100.0 |
% |
|
|
281 |
|
|
- |
|
|
100.0 |
% |
|
Net income attributable
to common shareholders |
$ |
2,418 |
|
|
$ |
3,044 |
|
|
(20.6 |
)% |
|
$ |
13,780 |
|
$ |
6,460 |
|
|
113.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
common share |
$ |
0.39 |
|
|
$ |
0.39 |
|
|
|
|
$ |
2.10 |
|
$ |
0.83 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
common share |
$ |
0.39 |
|
|
$ |
0.39 |
|
|
|
|
$ |
2.05 |
|
$ |
0.81 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average common shares
outstanding |
|
6,149 |
|
|
|
7,739 |
|
|
|
|
|
6,570 |
|
|
7,817 |
|
|
|
|
Diluted average common
shares outstanding |
|
6,275 |
|
|
|
7,872 |
|
|
|
|
|
6,714 |
|
|
7,987 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Balance Sheets |
|
|
|
|
(In
thousands, except share data, unaudited) |
|
|
|
|
|
December 31, 2016 |
|
|
December 31, 2015 |
ASSETS |
|
|
|
|
Cash and cash
equivalents |
$ |
10,076 |
|
|
|
9,732 |
|
Restricted cash |
|
22,298 |
|
|
|
33,026 |
|
Equipment held for
operating lease, less accumulated depreciation |
|
1,136,603 |
|
|
|
1,109,168 |
|
Maintenance rights |
|
17,670 |
|
|
|
12,140 |
|
Equipment held for
sale |
|
30,710 |
|
|
|
23,454 |
|
Operating lease related
receivable, net of allowances |
|
16,484 |
|
|
|
13,626 |
|
Spare parts
inventory |
|
25,443 |
|
|
|
20,826 |
|
Investments |
|
45,406 |
|
|
|
41,295 |
|
Property, equipment
& furnishings, less accumulated depreciation |
|
16,802 |
|
|
|
20,247 |
|
Intangibles assets,
net |
|
2,182 |
|
|
|
932 |
|
Other assets |
|
14,213 |
|
|
|
9,839 |
|
Total assets |
$ |
1,337,887 |
|
|
|
1,294,285 |
|
|
|
|
|
|
LIABILITIES, REDEEMABLE
PREFERRED STOCK AND SHAREHOLDERS' EQUITY |
|
|
|
|
Liabilities: |
|
|
|
|
Accounts payable and
accrued expenses |
$ |
17,792 |
|
|
|
21,665 |
|
Deferred income
taxes |
|
104,978 |
|
|
|
96,154 |
|
Notes payable |
|
900,255 |
|
|
|
866,089 |
|
Maintenance
reserves |
|
71,602 |
|
|
|
71,054 |
|
Security deposits |
|
21,417 |
|
|
|
25,010 |
|
Unearned lease
revenue |
|
5,823 |
|
|
|
5,090 |
|
Total liabilities |
|
1,121,867 |
|
|
|
1,085,062 |
|
|
|
|
|
|
Redeemable preferred
stock ($0.01 par value) |
|
19,760 |
|
|
|
- |
|
|
|
|
|
|
Shareholders'
equity: |
|
|
|
|
Common stock ($0.01 par
value) |
|
64 |
|
|
|
75 |
|
Paid-in capital in
excess of par |
|
2,512 |
|
|
|
28,720 |
|
Retained earnings |
|
194,729 |
|
|
|
180,949 |
|
Accumulated other
comprehensive loss, net of tax |
|
(1,045 |
) |
|
|
(521 |
) |
Total shareholders'
equity |
|
196,260 |
|
|
|
209,223 |
|
|
|
|
|
|
Total liabilities,
redeemable preferred stock and shareholders' equity |
$ |
1,337,887 |
|
|
|
1,294,285 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
Statements of Income (Loss) |
|
|
|
|
|
|
|
|
|
|
(In thousands, except
per share data, unaudited) |
|
|
|
|
Years Ended |
|
|
December 31, |
|
|
|
2016 |
|
|
2015 |
|
|
|
2014 |
|
|
2013 |
|
|
|
2012 |
|
REVENUE |
|
|
|
|
|
|
|
|
|
|
Lease rent revenue |
|
$ |
119,895 |
|
$ |
108,046 |
|
|
$ |
101,431 |
|
$ |
101,737 |
|
|
$ |
108,046 |
|
Maintenance reserve
revenue |
|
|
57,091 |
|
|
53,396 |
|
|
|
53,322 |
|
|
46,694 |
|
|
|
53,396 |
|
Spare parts and
equipment sales |
|
|
17,783 |
|
|
25,582 |
|
|
|
8,917 |
|
|
- |
|
|
|
25,582 |
|
Gain on sale of leased
equipment |
|
|
3,482 |
|
|
8,320 |
|
|
|
5,882 |
|
|
5,675 |
|
|
|
8,320 |
|
Other revenue |
|
|
9,023 |
|
|
2,718 |
|
|
|
4,506 |
|
|
4,306 |
|
|
|
2,718 |
|
Total revenue |
|
|
207,274 |
|
|
198,062 |
|
|
|
174,058 |
|
|
158,412 |
|
|
|
198,062 |
|
|
|
|
|
|
|
|
|
|
|
|
EXPENSES |
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization expense |
|
|
66,280 |
|
|
69,424 |
|
|
|
65,314 |
|
|
58,727 |
|
|
|
69,424 |
|
Cost of spare parts and
equipment sales |
|
|
13,293 |
|
|
17,849 |
|
|
|
7,474 |
|
|
- |
|
|
|
17,849 |
|
Write-down of
equipment |
|
|
9,514 |
|
|
9,181 |
|
|
|
5,602 |
|
|
6,461 |
|
|
|
9,181 |
|
General and
administrative |
|
|
47,780 |
|
|
42,744 |
|
|
|
35,859 |
|
|
33,868 |
|
|
|
42,744 |
|
Technical expense |
|
|
6,993 |
|
|
9,403 |
|
|
|
12,336 |
|
|
12,863 |
|
|
|
9,403 |
|
Net finance costs |
|
|
|
|
|
|
|
|
|
|
Interest
expense |
|
|
41,144 |
|
|
39,012 |
|
|
|
37,062 |
|
|
38,719 |
|
|
|
31,669 |
|
Loss (gain) on
extinguishment of debt |
|
|
137 |
|
|
(1,151 |
) |
|
|
- |
|
|
- |
|
|
|
15,462 |
|
Total net finance
costs |
|
|
41,281 |
|
|
37,861 |
|
|
|
37,062 |
|
|
38,719 |
|
|
|
47,131 |
|
Total expenses |
|
|
185,141 |
|
|
186,462 |
|
|
|
163,647 |
|
|
150,638 |
|
|
|
195,732 |
|
|
|
|
|
|
|
|
|
|
|
|
Earnings from
operations |
|
|
22,133 |
|
|
11,600 |
|
|
|
10,411 |
|
|
7,774 |
|
|
|
937 |
|
|
|
|
|
|
|
|
|
|
|
|
Earnings from joint
ventures |
|
|
1,813 |
|
|
1,175 |
|
|
|
1,329 |
|
|
3,526 |
|
|
|
1,759 |
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes |
|
|
23,946 |
|
|
12,775 |
|
|
|
11,740 |
|
|
11,300 |
|
|
|
2,696 |
|
Income tax
expense |
|
|
9,877 |
|
|
6,315 |
|
|
|
4,560 |
|
|
(4,326 |
) |
|
|
1,161 |
|
Net income |
|
$ |
14,069 |
|
$ |
6,460 |
|
|
$ |
7,180 |
|
$ |
15,626 |
|
|
$ |
1,535 |
|
|
|
|
|
|
|
|
|
|
|
|
Accretion of preferred
stock issuance costs |
|
|
8 |
|
|
- |
|
|
|
- |
|
|
- |
|
|
|
- |
|
Preferred stock
dividends |
|
|
281 |
|
|
- |
|
|
|
- |
|
|
- |
|
|
|
2,493 |
|
Preferred stock
redemption costs |
|
|
- |
|
|
- |
|
|
|
- |
|
|
- |
|
|
|
2,835 |
|
Net income (loss)
attributable to common shareholders |
|
$ |
13,780 |
|
$ |
6,460 |
|
|
$ |
7,180 |
|
$ |
15,626 |
|
|
$ |
(3,793 |
) |
|
|
|
|
|
|
|
|
|
|
|
Basic earnings (loss)
per common share |
|
$ |
2.10 |
|
$ |
0.83 |
|
|
$ |
0.91 |
|
$ |
1.95 |
|
|
$ |
(0.45 |
) |
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings (loss)
per common share |
|
$ |
2.05 |
|
$ |
0.81 |
|
|
$ |
0.88 |
|
$ |
1.89 |
|
|
$ |
(0.43 |
) |
|
|
|
|
|
|
|
|
|
|
|
Average common shares
outstanding |
|
|
6,570 |
|
|
7,817 |
|
|
|
7,917 |
|
|
8,029 |
|
|
|
8,490 |
|
Diluted average common
shares outstanding |
|
|
6,714 |
|
|
7,987 |
|
|
|
8,141 |
|
|
8,289 |
|
|
|
8,791 |
|
|
|
|
|
|
|
|
|
|
|
|
Contact:
Scott B. Flaherty
Chief Financial Officer
Willis Lease Finance (NASDAQ:WLFC)
過去 株価チャート
から 7 2024 まで 8 2024
Willis Lease Finance (NASDAQ:WLFC)
過去 株価チャート
から 8 2023 まで 8 2024