Record Results for Willis Lease Finance Corporation in 2024

March 10, 2025 06:30 ET | Source: Willis Lease Finance Corp. COCONUT CREEK, Fla., March 10, 2025 (GLOBE NEWSWIRE) -- Willis Lease Finance Corporation (NASDAQ: WLFC) (“WLFC”) today reported record annual total revenues of $569.2 million and pre-tax income of $152.6 million. For the year ended December 31, 2024, aggregate, core lease rent and maintenance reserve revenues were at an all-time record high of $452.1 million, up 30.4% as compared to $346.8 million in 2023. The growth was predominantly driven by core, recurring lease and maintenance revenues associated with a strong aviation marketplace. “In 2024 we leveraged our strong earnings to reinvest in the most in demand engines and aircraft,” said Austin C. Willis, Chief Executive Officer of WLFC. “Our ability to profitably deploy nearly $1 billion is a direct reflection on how our platform maximizes the value of assets.” 2024 Highlights The Company generated a record $152.6 million of pre-tax income in 2024, up 127.4% compared to $67.1 million in 2023. Lease rent revenue increased by $25.1 million, or 11.8%, to a record $238.2 million in 2024, compared to $213.1 million in 2023. Maintenance reserve revenue was $213.9 million, another record high in 2024, an increase of 60.0%, compared to $133.7 million in 2023, reflecting the increased size of the lease portfolio and specifically those leases on short-term lease conditions. Engines out on lease with “non-reimbursable” usage fees generated $174.5 million of short-term maintenance revenues in 2024, compared to $118.3 million in the prior year. There was $39.4 million of long-term maintenance revenue recognized in 2024, compared to $15.4 million in the prior year. Long-term maintenance revenue is recognized at the end of a lease period as the related maintenance reserve liability is released from the balance sheet. Spare parts and equipment sales increased to $27.1 million in 2024, compared to $20.4 million in 2023. The increase in spare parts sales reflects the demand for surplus material that we are seeing as operators extend the lives of their current generation engine portfolios. Equipment sales were $1.0 million for the sale of one engine in 2024, as compared to no equipment sales in 2023. Gain on sale of leased equipment was $45.1 million in 2024, reflecting the sale of 35 engines, eight airframes, and other parts and equipment from the lease portfolio. Gain on sale of leased equipment was $10.6 million in 2023, reflecting the sale of 28 engines, one airframe, and other parts and equipment from the lease portfolio. The book value of lease assets including equipment held for operating lease, maintenance rights, notes receivable, and investments in sales-type leases, increased to $2,872.3 million as of December 31, 2024, as compared to $2,223.4 million as of December 31, 2023. Inclusive of lease assets in our joint ventures, the book value of lease assets increased to $3,238.4 million as of December 31, 2024, as compared to $2,495.4 million as of December 31, 2023. Diluted weighted average income per common share was $15.34 for 2024, compared to $6.23 in 2023. Book value per diluted weighted average common share outstanding increased to $80.74 at December 31, 2024, compared to $67.73 at December 31, 2023. The Company paid its second consecutive, recurring quarterly dividend on its common stock of $0.25 per share in November of 2024, and subsequent to year end 2024, declared and paid its third consecutive, recurring dividend on its common stock of $0.25 per share in February of this year. In October of 2024, the Company refinanced and expanded its $500 million credit facility, entering into a new five-year, $1.0 billion credit facility, providing incremental liquidity to support our continued growth. Balance Sheet As of December 31, 2024, the Company’s lease portfolio was $2,872.3 million, consisting of $2,635.9 million of equipment held in our operating lease portfolio, $183.6 million of notes receivable, $31.1 million of maintenance rights, and $21.6 million of investments in sales-type leases, which represented 354 engines, 16 aircraft, one marine vessel and other leased parts and equipment. As of December 31, 2023, the Company’s lease portfolio was $2,223.4 million, consisting of $2,112.8 million of equipment held in our operating lease portfolio, $92.6 million of notes receivable, $9.2 million of maintenance rights, and $8.8 million of investments in sales-type leases, which represented 337 engines, 12 aircraft, one marine vessel and other leased parts and equipment. Conference Call WLFC will hold a conference call on Monday, March 10, 2025 at 10:00 a.m. Eastern Time to discuss its fourth quarter and full year 2024 results. Individuals wishing to participate in the conference call should dial: US and Canada (877) 612-6725, International +1 (646) 828-8082, wait for the conference operator and provide the operator with the Conference ID 808553. A digital replay will be available two hours after the completion of the conference call. To access the replay, please visit our website at www.wlfc.global under the Investor Relations section for details. 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 worldwide. These leasing activities are integrated with engine and aircraft trading, engine lease pools and asset management services through Willis Asset Management Limited, as well as various end-of-life solutions for engines and aviation materials provided through Willis Aeronautical Services, Inc. Additionally, through Willis Engine Repair Center®, Jet Centre by Willis, and Willis Aviation Services Limited, the Company’s service offerings include Part 145 engine maintenance, aircraft line and base maintenance, aircraft disassembly, parking and storage, airport FBO and ground and cargo handling services. Unaudited Consolidated Statements of Income (In thousands, except per share data) Three Months EndedDecember 31, Years EndedDecember 31, 2024 2023% Change 2024 2023% ChangeREVENUE Lease rent revenue$64,584 $51,92924.4% $238,236 $213,13811.8%Maintenance reserve revenue 57,381 37,05954.8% 213,908 133,66860.0%Spare parts and equipment sales 6,762 7,398(8.6)% 27,099 20,35933.1%Interest revenue 3,718 2,31160.9% 11,683 8,72134.0%Gain on sale of leased equipment 11,915 5,480117.4% 45,063 10,581325.9%Maintenance services revenue 6,202 7,461(16.9)% 24,158 24,168—%Other revenue 2,235 2,641(15.4)% 9,076 7,92014.6%Total revenue 152,797 114,27933.7% 569,223 418,55536.0% EXPENSES Depreciation and amortization expense 24,157 22,7946.0% 92,460 90,9251.7%Cost of spare parts and equipment sales 5,849 5,6264.0% 22,852 15,20750.3%Cost of maintenance services 6,823 6,8080.2% 24,470 21,15915.6%Write-down of equipment 10,362 2,008416.0% 11,228 4,398155.3%General and administrative 42,452 29,63743.2% 146,757 115,74026.8%Technical expense 4,370 8,353(47.7)% 22,294 28,109(20.7)%Net finance costs: Interest expense 29,386 22,26932.0% 104,764 78,79533.0%Total net finance costs 29,386 22,26932.0% 104,764 78,79533.0%Total expenses 123,399 97,49526.6% 424,825 354,33319.9% Income from operations 29,398 16,78475.2% 144,398 64,222124.8%Income from joint ventures 992 4,197(76.4)% 8,247 2,908183.6%Income before income taxes 30,390 20,98144.8% 152,645 67,130127.4%Income tax expense 9,329 10,028(7.0)% 44,033 23,34988.6%Net income 21,061 10,95392.3% 108,612 43,781148.1%Preferred stock dividends 1,368 90351.5% 4,126 3,33423.8%Accretion of preferred stock issuance costs 69 12475.0% 108 7544.0%Net income attributable to common shareholders$19,624 $10,03895.5% $104,378 $40,372158.5% Basic weighted average income per common share$2.97 $1.57 $15.97 $6.40 Diluted weighted average income per common share$2.81 $1.53 $15.34 $6.23 Basic weighted average common shares outstanding 6,603 6,375 6,536 6,305 Diluted weighted average common shares outstanding 6,983 6,559 6,804 6,481 Unaudited Consolidated Balance Sheets (In thousands, except per share data) December 31, 2024December 31, 2023ASSETS Cash and cash equivalents$9,110 $7,071Restricted cash 123,392 160,958Equipment held for operating lease, less accumulated depreciation 2,635,910 2,112,837Maintenance rights 31,134 9,180Equipment held for sale 12,269 805Receivables, net 38,291 58,485Spare parts inventory 72,150 40,954Investments 62,670 58,044Property, equipment & furnishings, less accumulated depreciation 48,061 37,160Intangible assets, net 2,929 1,040Notes receivable, net 183,629 92,621Investments in sales-type leases, net 21,606 8,759Other assets 56,045 64,430Total assets$3,297,196 $2,652,344 LIABILITIES, REDEEMABLE PREFERRED STOCK AND SHAREHOLDERS’ EQUITY Liabilities: Accounts payable and accrued expenses$75,983 $52,937Deferred income taxes 185,049 147,779Debt obligations 2,264,552 1,802,881Maintenance reserves 97,817 92,497Security deposits 23,424 23,790Unearned revenue 37,911 43,533Total liabilities 2,684,736 2,163,417 Redeemable preferred stock ($0.01 par value) 63,122 49,964 Shareholders’ equity: Common stock ($0.01 par value) 72 68Paid-in capital in excess of par 50,928 29,667Retained earnings 491,439 397,781Accumulated other comprehensive income, net of tax 6,899 11,447Total shareholders’ equity 549,338 438,963Total liabilities, redeemable preferred stock and shareholders’ equity$3,297,196 $2,652,344 CONTACT: Scott B. Flaherty Chief Financial Officer 561.413.0112

Record Results for Willis Lease Finance Corporation in 2024

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