Willis Lease Finance Corporation Reports Record Quarterly Pre-tax Profit of $27.8 million
2019年5月6日 - 7:30PM
Willis Lease Finance Corporation Reports Record Quarterly Pre-tax
Profit of $27.8 million
Willis Lease Finance Corporation (NASDAQ: WLFC) today reported
pre-tax profit of $27.8 million and total revenues of $103.8
million in the first quarter of 2019. The Company’s first quarter
2019 pre-tax results were driven by continued revenue growth in the
core leasing business, an increase in trading activity and
continuing spare parts sales. Aggregate lease rent and maintenance
reserve revenues were $73.7 million for the first quarter of 2019.
“Our continued growth and the Company’s record
quarterly revenue and pre-tax profits of $103.8 million and $27.8
million, respectively, speak to the market’s recognition of the
value of the Willis Platform,” said Charles F. Willis, Chairman and
CEO. “We continue to see a global client base leveraging our broad
product offering of core lease services, materials, fleet
transition solutions, asset management and materials services.”
“We are very pleased with our growth and
financial results in the first quarter,” said Brian R. Hole,
President. “We are even more excited, though, that our customers
continue to subscribe to our message that it is more efficient to
borrow an engine from us when they need it than it is to buy
multiple new engines and deploy permanent capital in assets that
are, by definition, ‘spare’.”
First Quarter 2019 Highlights
(at or for the periods ended March 31, 2019, as compared to
March 31, 2018, and December 31, 2018):
- Total revenue increased by 47.2% to $103.8 million in the first
quarter of 2019, compared to $70.5 million in the same quarter of
2018.
- Lease rent revenue achieved a record quarterly high of $48.4
million in the first quarter of 2019; 22.0% growth from $39.6
million in the same quarter of 2018.
- Quarterly Maintenance reserve revenue increased by $9.9
million, or 64.2%, to $25.4 million in the first quarter of 2019,
compared to $15.4 million in the prior year period.
- Spare parts and equipment sales increased by 34.8% to $17.5
million in the first quarter of 2019, compared to $13.0 million in
the same quarter of 2018.
- Earnings before tax were a record high $27.8 million in the
first quarter of 2019, compared to $9.6 million in the same quarter
of 2018.
- Average utilization for the first quarter of 2019 increased to
89% from 86% in the comparable prior year quarter.
- Our equipment lease portfolio was $1.605 billion at
March 31, 2019, compared to $1.673 billion at
December 31, 2018.
- The book value of 311 lease assets we own directly or through
our joint ventures was $2.0 billion at March 31, 2019. As of
March 31, 2019, the Company also managed 437 engines, aircraft
and related equipment on behalf of third parties.
- The Company maintained $498 million of undrawn revolver
capacity at March 31, 2019.
- The Company repurchased a total of 7,671 shares of common stock
in the first quarter of 2019 under the Company’s repurchase plan
for $0.3 million.
- Diluted weighted average earnings per common share was $3.35
per share for the first quarter of 2019.
- Book value per diluted weighted average common share
outstanding increased to $51.43 at March 31, 2019, compared to
$47.43 at December 31, 2018.
Balance Sheet
As of March 31, 2019, the Company had a
total lease portfolio consisting of 244 engines, 13 aircraft, 10
other leased parts and equipment and one marine vessel with a net
book value of $1.605 billion. As of December 31, 2018, the
Company had a total lease portfolio consisting of 244 engines and
related equipment, 17 aircraft and 10 other leased parts and
equipment, with a net book value of $1.673 billion.
Willis Lease Finance
Corporation
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 Limited, 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.
Unaudited Consolidated Statements of
Income(In thousands, except per share data)
|
|
Three Months Ended March 31, |
|
|
|
|
2019 |
|
2018 |
|
% Change |
REVENUE |
|
|
|
|
|
|
Lease rent revenue |
|
$ |
48,369 |
|
|
$ |
39,644 |
|
|
22.0 |
% |
Maintenance reserve revenue |
|
25,350 |
|
|
15,440 |
|
|
64.2 |
% |
Spare parts and equipment sales
(1) |
|
17,502 |
|
|
12,986 |
|
|
34.8 |
% |
Gain on sale of leased equipment
(1) |
|
9,570 |
|
|
545 |
|
|
1,656.0 |
% |
Other revenue |
|
2,978 |
|
|
1,882 |
|
|
58.2 |
% |
Total revenue |
|
103,769 |
|
|
70,497 |
|
|
47.2 |
% |
|
|
|
|
|
|
|
EXPENSES |
|
|
|
|
|
|
Depreciation and amortization
expense |
|
20,258 |
|
|
17,355 |
|
|
16.7 |
% |
Cost of spare parts and equipment
sales (1) |
|
14,412 |
|
|
11,388 |
|
|
26.6 |
% |
Write-down of equipment |
|
1,105 |
|
|
— |
|
|
— |
% |
General and administrative |
|
21,440 |
|
|
15,611 |
|
|
37.3 |
% |
Technical expense |
|
1,788 |
|
|
3,677 |
|
|
(51.4 |
)% |
Interest expense |
|
17,879 |
|
|
13,595 |
|
|
31.5 |
% |
Total expenses |
|
76,882 |
|
|
61,626 |
|
|
24.8 |
% |
|
|
|
|
|
|
|
Earnings from operations |
|
26,887 |
|
|
8,871 |
|
|
203.1 |
% |
Earnings from joint ventures |
|
946 |
|
|
747 |
|
|
26.6 |
% |
Income before income taxes |
|
27,833 |
|
|
9,618 |
|
|
189.4 |
% |
Income tax expense |
|
6,955 |
|
|
2,536 |
|
|
174.3 |
% |
Net income |
|
20,878 |
|
|
7,082 |
|
|
194.8 |
% |
Preferred stock dividends |
|
801 |
|
|
801 |
|
|
— |
% |
Accretion of preferred stock issuance costs |
|
21 |
|
|
20 |
|
|
5.0 |
% |
Net income attributable to common
shareholders |
|
$ |
20,056 |
|
|
$ |
6,261 |
|
|
220.3 |
% |
|
|
|
|
|
|
|
Basic weighted average earnings
per common share |
|
$ |
3.47 |
|
|
$ |
1.03 |
|
|
|
Diluted weighted average earnings
per common share |
|
$ |
3.35 |
|
|
$ |
1.00 |
|
|
|
|
|
|
|
|
|
|
Basic weighted average common
shares outstanding |
|
5,779 |
|
|
6,104 |
|
|
|
Diluted weighted average common
shares outstanding |
|
5,978 |
|
|
6,256 |
|
|
|
____________
(1) Effective January 1, 2018, the Company
adopted ASC 606 — Revenue from Contracts with
Customers and has identified the transfer of engines and
airframes from the lease portfolio to the Spare Parts segment for
part out as sales to customers in accordance with the ordinary
operations of our Spare Parts reportable segment. As such, we
present the sale of these assets on a gross basis and have
reclassified the gross revenue and costs of sale to the Spare parts
and equipment sales and Cost of spare parts and equipment sales
line items from the net gain (loss) presentation within the Gain on
sale of leased equipment line item. The reclassification resulted
in an increase in Spare parts and equipment sales of $6.7 million,
a decrease in Gain on sale of leased equipment of $0.1 million and
an increase in Cost of spare parts and equipment sales of $6.6
million for the three months ended March 31, 2018.
Unaudited Consolidated Balance Sheets(In thousands, except per share data)
|
|
March 31, 2019 |
|
December 31, 2018 |
ASSETS |
|
|
|
|
Cash and cash equivalents |
|
$ |
12,181 |
|
|
$ |
11,688 |
|
Restricted cash |
|
68,452 |
|
|
70,261 |
|
Equipment held for operating
lease, less accumulated depreciation |
|
1,605,120 |
|
|
1,673,135 |
|
Maintenance rights |
|
14,763 |
|
|
14,763 |
|
Equipment held for sale |
|
629 |
|
|
789 |
|
Receivables, net of
allowances |
|
24,986 |
|
|
23,270 |
|
Spare parts inventory |
|
47,038 |
|
|
48,874 |
|
Investments |
|
54,253 |
|
|
47,941 |
|
Property, equipment &
furnishings, less accumulated depreciation |
|
27,758 |
|
|
27,679 |
|
Intangible assets, net |
|
1,359 |
|
|
1,379 |
|
Notes receivable |
|
30,854 |
|
|
238 |
|
Other assets |
|
18,109 |
|
|
14,926 |
|
Total assets |
|
$ |
1,905,502 |
|
|
$ |
1,934,943 |
|
|
|
|
|
|
LIABILITIES, REDEEMABLE PREFERRED
STOCK AND SHAREHOLDERS’ EQUITY |
|
|
|
|
Liabilities: |
|
|
|
|
Accounts payable and accrued
expenses |
|
$ |
32,410 |
|
|
$ |
42,939 |
|
Deferred income taxes |
|
96,995 |
|
|
90,285 |
|
Debt obligations |
|
1,297,836 |
|
|
1,337,349 |
|
Maintenance reserves |
|
93,979 |
|
|
94,522 |
|
Security deposits |
|
22,212 |
|
|
28,047 |
|
Unearned revenue |
|
5,057 |
|
|
5,460 |
|
Total liabilities |
|
1,548,489 |
|
|
1,598,602 |
|
|
|
|
|
|
Redeemable preferred stock ($0.01
par value) |
|
49,575 |
|
|
49,554 |
|
|
|
|
|
|
Shareholders’ equity: |
|
|
|
|
Common stock ($0.01 par
value) |
|
62 |
|
|
62 |
|
Paid-in capital in excess of
par |
|
563 |
|
|
— |
|
Retained earnings |
|
306,912 |
|
|
286,623 |
|
Accumulated other comprehensive
(loss) income, net of tax |
|
(99 |
) |
|
102 |
|
Total shareholders’ equity |
|
307,438 |
|
|
286,787 |
|
Total liabilities, redeemable
preferred stock and shareholders’ equity |
|
$ |
1,905,502 |
|
|
$ |
1,934,943 |
|
CONTACT: |
Scott B. Flaherty |
|
Chief Financial Officer |
|
(415) 408-4700 |
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