Willis Lease Finance Corporation Reports 50% Growth in Annual Pre-Tax Profit to $36.0 Million
2018年3月13日 - 8:00PM
Willis Lease Finance Corporation (NASDAQ:WLFC) today reported 50.4%
growth in annual pre-tax income to $36.0 million, from $23.9
million in 2016, and recorded total revenues of $274.8 million. The
Company’s 2017 pretax results were driven by solid revenue growth
in the core leasing business and a significant increase in spare
parts and equipment sales. Aggregate lease rent and maintenance
reserve revenues of $210.6 million were driven by a 90% average
utilization of a lease portfolio that grew 18.1% to $1.34 billion
at year-end. Spare parts and equipment sales grew 189% on a year
over year basis. Net income attributable to common shareholders
grew 338% to $60.3 million for the year or to $9.69 of diluted
weighted average earnings per common share. The positive tax
effects of the Tax Cuts and Jobs Act of 2017 contributed $43.6
million to our 2017 after tax income.
“2017 was our most profitable year on a pre-tax
basis since 2008, with record revenues,” said Charles F. Willis,
Chairman and CEO. “Utilization of our lease portfolio remains
high due in part to robust maintenance activity on engine types we
support, including some older engine types many thought would have
been retired long ago. Last year was also important for us from a
capital perspective as we were successful in closing our WEST III
asset backed securitization and a second round of preferred
equity.”
“As we have said before, we believe our Platform
differentiates us and our varied business areas delivered for our
customers and, consequently, for us in 2017,” said Brian R. Hole,
President. “In addition to our core leasing business, our trading,
asset management and spare parts businesses performed well and
continue to become more useful for our customers. We will continue
to actively manage and grow our leasing portfolio and find new ways
to create value for our growing customer base.”
2017 Highlights (at or for the
periods ended December 31, 2017 as compared to December 31,
2016):
- Total revenue grew 32.6% to $274.8 million in 2017, from $207.3
million in 2016.
- Average utilization for the year was 90%, in line with 2016
performance.
- Lease rent and maintenance reserve revenues grew 8.7% and 40.5%
respectively. The $23.1 million increase in maintenance
reserve revenues for 2017 was partially offset by a $15.4 million
increase in non-cash write-down of equipment
expense.
- The equipment portfolio grew 18.1% to $1.343 billion, from
$1.137 billion in 2016, net of asset sales and depreciation
expense.
- The Company purchased $345 million of equipment in 2017,
compared to $149 million in 2016. In the fourth quarter of
2017, the Company purchased one aircraft and fourteen engines for
$169 million.
- Tangible book value per diluted weighted average common shares
outstanding increased 42.4% to $41.63 at December 31, 2017,
compared to $29.23 a year ago.
- The Company maintained $399 million of undrawn revolver
capacity at December 31, 2017.
- The book value of lease assets, either owned directly or
through our joint ventures, was $1.6 billion at the end of
2017.
- A total of 155,312 shares of common stock were repurchased in
2017 under the Company’s five-year repurchase plan for $3.5
million.
- The Company issued 1,500,000 shares of 6.5% Series A-2
Preferred Stock, $0.01 par value per share at a purchase price of
$20.00 per share in September 2017.
- The Company closed a $336 million asset-backed securitization,
Willis Engine Structured Trust III (WEST III) on August 4, 2017.
The Notes are secured by a portfolio of 56 engines.
Balance SheetAs of
December 31, 2017, the Company had a total lease portfolio
consisting of 225 engines and related equipment, 16 aircraft and 7
other leased parts and equipment with a net book value of $1.343
billion. As of December 31, 2016, the Company had a total
lease portfolio consisting of 208 engines and related equipment, 11
aircraft and 5 other leased parts and equipment, with a net book
value of $1.137 billion.
Willis Lease Finance
CorporationWillis 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.
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Unaudited
Consolidated Statements of Income |
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(In thousands, except
per share data) |
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Three Months Ended |
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Years
Ended |
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December 31, |
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% |
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December 31, |
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% |
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2017 |
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2016 |
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Change |
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2017 |
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2016 |
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Change |
REVENUE |
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Lease rent revenue |
$ |
35,324 |
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|
$ |
31,168 |
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|
13.3 |
% |
|
$ |
130,369 |
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|
$ |
119,895 |
|
8.7 |
% |
Maintenance reserve
revenue |
|
15,977 |
|
|
|
|
11,529 |
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|
38.6 |
% |
|
|
80,189 |
|
|
|
57,091 |
|
40.5 |
% |
Spare parts and
equipment sales |
|
10,150 |
|
|
|
|
7,318 |
|
|
38.7 |
% |
|
|
51,423 |
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|
|
17,783 |
|
189.2 |
% |
Gain on sale of leased
equipment |
|
245 |
|
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|
|
52 |
|
|
371.2 |
% |
|
|
4,929 |
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|
|
3,482 |
|
41.6 |
% |
Other revenue |
|
1,493 |
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|
|
|
5,409 |
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(72.4 |
)% |
|
|
7,930 |
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|
|
9,023 |
|
(12.1 |
)% |
Total revenue |
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63,189 |
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|
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|
55,476 |
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|
13.9 |
% |
|
|
274,840 |
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|
207,274 |
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32.6 |
% |
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EXPENSES |
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Depreciation and
amortization expense |
|
17,238 |
|
|
|
|
17,045 |
|
|
1.1 |
% |
|
|
66,023 |
|
|
|
66,280 |
|
(0.4 |
)% |
Cost of spare parts and
equipment sales |
|
11,302 |
|
|
|
|
5,508 |
|
|
105.2 |
% |
|
|
40,848 |
|
|
|
13,293 |
|
207.3 |
% |
Write-down of
equipment |
|
2,687 |
|
|
|
|
3,590 |
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(25.2 |
)% |
|
|
24,930 |
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|
|
9,514 |
|
162.0 |
% |
General and
administrative |
|
15,164 |
|
|
|
|
13,086 |
|
|
15.9 |
% |
|
|
55,737 |
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|
|
47,780 |
|
16.7 |
% |
Technical expense |
|
2,384 |
|
|
|
|
2,080 |
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|
14.6 |
% |
|
|
9,729 |
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|
|
6,993 |
|
39.1 |
% |
Net finance costs |
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Interest
expense |
|
12,322 |
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|
|
|
10,509 |
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|
17.3 |
% |
|
|
48,720 |
|
|
|
41,144 |
|
18.4 |
% |
Loss on
extinguishment of debt |
|
- |
|
|
|
|
- |
|
|
0.0 |
% |
|
|
- |
|
|
|
137 |
|
(100.0 |
)% |
Total net finance
costs |
|
12,322 |
|
|
|
|
10,509 |
|
|
17.3 |
% |
|
|
48,720 |
|
|
|
41,281 |
|
18.0 |
% |
Total expenses |
|
61,097 |
|
|
|
|
51,818 |
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|
17.9 |
% |
|
|
245,987 |
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|
|
185,141 |
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32.9 |
% |
|
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Earnings from
operations |
|
2,092 |
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|
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|
3,658 |
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(42.8 |
)% |
|
|
28,853 |
|
|
|
22,133 |
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30.4 |
% |
Earnings from joint
ventures |
|
1,103 |
|
|
|
|
939 |
|
|
17.5 |
% |
|
|
7,158 |
|
|
|
1,813 |
|
294.8 |
% |
Income before income
taxes |
|
3,195 |
|
|
|
|
4,597 |
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|
(30.5 |
)% |
|
|
36,011 |
|
|
|
23,946 |
|
50.4 |
% |
Income tax (benefit)
expense |
|
(39,515 |
) |
|
|
|
1,890 |
|
|
(2190.7 |
)% |
|
|
(26,147 |
) |
|
|
9,877 |
|
(364.7 |
)% |
Net income |
|
42,710 |
|
|
|
|
2,707 |
|
|
1477.8 |
% |
|
|
62,158 |
|
|
|
14,069 |
|
341.8 |
% |
Preferred
stock dividends |
|
825 |
|
|
|
|
281 |
|
|
193.6 |
% |
|
|
1,813 |
|
|
|
281 |
|
545.2 |
% |
Accretion
of preferred stock issuance costs |
|
21 |
|
|
|
|
8 |
|
|
162.5 |
% |
|
|
46 |
|
|
|
8 |
|
475.0 |
% |
Net income attributable
to common shareholders |
$ |
41,864 |
|
|
|
$ |
2,418 |
|
|
1631.3 |
% |
|
$ |
60,299 |
|
|
$ |
13,780 |
|
337.6 |
% |
|
|
|
|
|
|
|
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|
|
|
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|
Basic weighted average
earnings per common share |
$ |
6.87 |
|
|
|
$ |
0.39 |
|
|
|
|
$ |
9.93 |
|
|
$ |
2.10 |
|
|
Diluted weighted
average earnings per common share |
$ |
6.75 |
|
|
|
$ |
0.39 |
|
|
|
|
$ |
9.69 |
|
|
$ |
2.05 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
Basic weighted average
common shares outstanding |
|
6,090 |
|
|
|
|
6,149 |
|
|
|
|
|
6,074 |
|
|
|
6,570 |
|
|
Diluted weighted
average common shares outstanding |
|
6,201 |
|
|
|
|
6,275 |
|
|
|
|
|
6,220 |
|
|
|
6,714 |
|
|
|
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(1) The amounts herein include reclassifications of scrap
inventory write-offs and lower of cost or market write-downs that
were previously presented within Write-down of equipment to the
Costs of spare parts and equipment sales expense line item. Both
the three-month period and year ended December 31, 2017 were
impacted by a $2.6 million reclassification related to the nine
months ended September 30, 2017, reflected as an increase to Cost
of spare parts and equipment sales and a decrease to Write-down of
equipment. These reclassifications had no impact to the information
presented in prior year financial statements.
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Unaudited Consolidated Balance Sheets |
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(In
thousands, except per share data) |
|
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|
December 31, 2017 |
|
|
December 31, 2016 |
|
ASSETS |
|
|
|
|
|
Cash and cash
equivalents |
$ |
7,052 |
|
|
$ |
10,076 |
|
|
Restricted cash |
|
40,272 |
|
|
|
22,298 |
|
|
Equipment held for
operating lease, less accumulated depreciation |
|
1,342,571 |
|
|
|
1,136,603 |
|
|
Maintenance rights |
|
14,763 |
|
|
|
17,670 |
|
|
Equipment held for
sale |
|
34,172 |
|
|
|
30,710 |
|
|
Operating lease related
receivables, net of allowances |
|
18,848 |
|
|
|
16,484 |
|
|
Spare parts
inventory |
|
16,379 |
|
|
|
25,443 |
|
|
Investments |
|
50,641 |
|
|
|
45,406 |
|
|
Property, equipment
& furnishings, less accumulated depreciation |
|
26,074 |
|
|
|
16,802 |
|
|
Intangible assets,
net |
|
1,727 |
|
|
|
2,182 |
|
|
Other assets |
|
50,932 |
|
|
|
14,213 |
|
|
Total assets |
$ |
1,603,431 |
|
|
$ |
1,337,887 |
|
|
|
|
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LIABILITIES,
REDEEMBABLE PREFERRED STOCK AND SHAREHOLDERS' EQUITY |
|
|
|
|
|
Liabilities: |
|
|
|
|
|
Accounts payable and
accrued expenses |
$ |
22,072 |
|
|
$ |
17,792 |
|
|
Deferred income
taxes |
|
78,280 |
|
|
|
104,978 |
|
|
Debt obligations |
|
1,085,405 |
|
|
|
900,255 |
|
|
Maintenance
reserves |
|
75,889 |
|
|
|
71,602 |
|
|
Security deposits |
|
25,302 |
|
|
|
21,417 |
|
|
Unearned revenue |
|
8,102 |
|
|
|
5,823 |
|
|
Total liabilities |
|
1,295,050 |
|
|
|
1,121,867 |
|
|
|
|
|
|
|
|
Redeemable preferred
stock ($0.01 par value) |
$ |
49,471 |
|
|
$ |
19,760 |
|
|
|
|
|
|
|
|
Shareholders'
equity: |
|
|
|
|
|
Common stock ($0.01 par
value) |
|
64 |
|
|
|
64 |
|
|
Paid-in capital in
excess of par |
|
2,319 |
|
|
|
2,512 |
|
|
Retained earnings |
|
256,301 |
|
|
|
194,729 |
|
|
Accumulated other
comprehensive income (loss), net of tax |
|
226 |
|
|
|
(1,045 |
) |
|
Total shareholders'
equity |
|
258,910 |
|
|
|
196,260 |
|
|
Total liabilities,
redeemable preferred stock and shareholders' equity |
$ |
1,603,431 |
|
|
$ |
1,337,887 |
|
|
|
|
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|
CONTACT:
Scott B. Flaherty
Chief Financial Officer
(415) 408-4700
Willis Lease Finance (NASDAQ:WLFC)
過去 株価チャート
から 6 2024 まで 7 2024
Willis Lease Finance (NASDAQ:WLFC)
過去 株価チャート
から 7 2023 まで 7 2024