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Record Results for Willis Lease Finance Corporation in 2024

1. WLFC reported $569.2 million in total revenues for 2024, a record high. 2. Pre-tax income surged 127.4%, reaching $152.6 million in 2024. 3. Core lease revenue increased by 30.4%, indicating strong market demand. 4. The company paid a third consecutive dividend of $0.25 per share. 5. WLFC expanded its credit facility to $1.0 billion for future growth.

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Why Very Bullish?

Record revenue and significant income growth may lead to increased investor confidence. Historical context shows similar patterns resulting in positive stock price movements post-earnings surge.

How important is it?

High revenue and income growth, strong dividends, and credit expansion are critical for future growth, making this news highly relevant for WLFC's stock performance.

Why Short Term?

Immediate positive impact expected as investors respond to strong earnings report. Similar earnings reports in the past have seen immediate stock price increases.

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GEBAAAL
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

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