COCONUT CREEK, Fla., Might 04, 2021 (GLOBE NEWSWIRE) — Willis Lease Finance Company (NASDAQ: WLFC) at present reported first quarter complete revenues of $61.1 million and pre-tax lack of $1.7 million. The Firm reported decrease income within the first quarter when in comparison with the prior 12 months interval, primarily as a result of impression of the COVID-19 pandemic. The slowdown in world journey continues to impression plane and engine utilization in addition to demand for plane and engine spare elements. For the three months ended March 31, 2021, combination lease hire and upkeep reserve revenues have been $51.3 million and spare elements and gear gross sales have been $4.6 million.
“Regardless of vital progress within the growth and roll-out of COVID-19 vaccines, the pandemic continues to weigh on world journey and that, clearly, has had a destructive impression on our enterprise and the trade as an entire,” mentioned Charles F. Willis, Chairman and CEO. “We aren’t happy with our quarterly outcomes, however we proceed to deal with the long-term and our Platform is well-positioned, whether or not in offering capital, belongings or companies, to help our clients’ gradual restoration from an almost full and worldwide shutdown of air journey.”
“Our outcomes this quarter are disappointing, however not shocking given the dearth of flying worldwide,” mentioned Brian R. Gap, President. “These issues are out of our management so as an alternative we’re targeted on what we will management. We’re delivering liquidity to our clients, persevering with to innovate, together with closing our first transaction with our model new revolving credit score lease engine financing product, and growing programmatic options that may assist our clients preserve capital whereas transitioning out of plane and engines or returning them to service with out being compelled to spend money on pricey upkeep.”
First Quarter 2021 Highlights (at or for the intervals ended March 31, 2021, as in comparison with March 31, 2020, and December 31, 2020):
- Whole income was $61.1 million within the first quarter of 2021, a 25.1% lower when in comparison with $81.6 million in the identical quarter of 2020.
- Lease hire income was $31.5 million within the first quarter of 2021.
- Upkeep reserve income was $19.8 million within the first quarter of 2021, a lower of three.5% in comparison with $20.5 million in the identical quarter of 2020. Long run upkeep reserve income, which is influenced by finish of lease compensation, elevated to $17.2 million within the first quarter of 2021, in comparison with $8.6 million within the comparable prior interval. Quick time period upkeep reserve income, which is influenced by our clients’ utilization of belongings we lease to them, was $2.7 million within the first quarter of 2021 in comparison with $11.9 million within the comparable prior interval.
- Spare elements and gear gross sales have been $4.6 million within the first quarter of 2021, in comparison with $9.1 million within the first quarter of 2020.
- Different income elevated to $5.2 million, or 48.7%, within the first quarter of 2021, in comparison with $3.5 million within the first quarter of 2020, primarily reflecting curiosity revenue from our Notes receivable.
- (Loss) revenue earlier than revenue taxes was $(1.7) million within the first quarter of 2021, in comparison with $8.5 million within the first quarter of 2020.
- Our combination lease belongings, inclusive of our gear held for working lease and notes receivable, at March 31, 2021 and 2020 was $2,085.4 million and $1,813.6 million, respectively, a 15.0% year-over-year enhance.
- The e-book worth of lease belongings we personal immediately or by means of our joint ventures was $2,420.1 million at March 31, 2021. As of March 31, 2021, the Firm additionally managed 385 engines, plane and associated gear on behalf of third events.
- The Firm maintained $183 million of undrawn revolver capability at March 31, 2021.
- Diluted weighted common (loss) earnings per frequent share have been $(0.36) for the primary quarter of 2021, in comparison with $0.56 within the first quarter of 2020.
- Ebook worth per diluted weighted common frequent share excellent elevated to $62.12 at March 31, 2021, in comparison with $59.40 at December 31, 2020.
As of March 31, 2021, the Firm’s $1.888 billion gear held for working lease portfolio and $197.6 million notes receivable represented 295 engines, eight plane, one marine vessel and different leased elements and gear. As of December 31, 2020, the Firm’s $1.887 billion gear held for working lease portfolio and $158.7 million notes receivable represented 291 engines, eight plane, one marine vessel and different leased elements and gear.
Willis Lease Finance Company
Willis Lease Finance Company leases massive and regional spare business plane engines, auxiliary energy items and plane to airways, plane engine producers and upkeep, restore and overhaul suppliers in 120 international locations. These leasing actions are built-in with engine and plane buying and selling, engine lease swimming pools and asset administration companies supported by leading edge expertise by means of its subsidiary, Willis Asset Administration Restricted, in addition to varied end-of-life options for engines and aviation supplies supplied by means of its subsidiary, Willis Aeronautical Companies, Inc.
Aside from historic info, the issues mentioned on this press launch include forward-looking statements that contain dangers and uncertainties. Don’t unduly depend on forward-looking statements, which give solely expectations concerning the future and usually are not ensures. Ahead-looking statements converse solely as of the date they’re made, and we undertake no obligation to replace them. Our precise outcomes could differ materially from the outcomes mentioned in forward-looking statements. Components that may trigger such a distinction embody, however usually are not restricted to: the results on the airline trade and the worldwide economic system of occasions equivalent to terrorist exercise and the COVID-19 pandemic; adjustments in oil costs and different disruptions to the world markets; tendencies within the airline trade and our capacity to capitalize on these tendencies, together with development charges of markets and different financial elements; dangers related to proudly owning and leasing jet engines and plane; our capacity to efficiently negotiate gear purchases, gross sales and leases, to gather excellent quantities due and to manage prices and bills; adjustments in rates of interest and availability of capital, each to us and our clients; our capacity to proceed to satisfy altering buyer calls for; regulatory adjustments affecting airline operations, plane upkeep, accounting requirements and taxes; the market worth of engines and different belongings in our portfolio; and dangers detailed within the Firm’s Annual Report on Type 10-Ok and different persevering with reviews filed with the Securities and Alternate Fee.
Unaudited Consolidated Statements of Earnings
(In 1000’s, besides per share knowledge)
|Three months ended March 31,|
|Lease hire income||$||31,520||$||46,395||(32.1||)||%|
|Upkeep reserve income||19,812||20,528||(3.5||)||%|
|Spare elements and gear gross sales||4,566||9,105||(49.9||)||%|
|Achieve on sale of leased gear||—||2,067||(100.0||)||%|
|Depreciation and amortization expense||24,141||23,390||3.2||%|
|Value of spare elements and gear gross sales||3,809||6,688||(43.0||)||%|
|Write-down of apparatus||1,867||2,129||(12.3||)||%|
|Normal and administrative||16,151||19,567||(17.5||)||%|
|Web finance prices:|
|Loss on debt extinguishment||—||4,688||(100.0||)||%|
|Whole web finance prices||15,019||20,384||(26.3||)||%|
|(Loss) earnings from operations||(1,172||)||8,324||(114.1||)||%|
|(Loss) earnings from joint ventures||(519||)||207||(350.7||)||%|
|(Loss) revenue earlier than revenue taxes||(1,691||)||8,531||(119.8||)||%|
|Earnings tax (profit) expense||(359||)||4,245||(108.5||)||%|
|Web (loss) revenue||(1,332||)||4,286||(131.1||)||%|
|Most well-liked inventory dividends||801||810||(1.1||)||%|
|Accretion of most popular inventory issuance prices||21||21||—||%|
|Web (loss) revenue attributable to frequent shareholders||$||(2,154||)||$||3,455||(162.3||)||%|
|Fundamental weighted common (loss) earnings per frequent share||$||(0.36||)||$||0.59|
|Diluted weighted common (loss) earnings per frequent share||$||(0.36||)||$||0.56|
|Fundamental weighted common frequent shares excellent||5,995||5,860|
|Diluted weighted common frequent shares excellent||5,995||6,124|
Unaudited Consolidated Steadiness Sheets
(In 1000’s, besides per share knowledge)
|March 31, 2021||December 31, 2020|
|Money and money equivalents||$||26,490||$||42,540|
|Tools held for working lease, much less accrued depreciation||1,887,884||1,886,613|
|Tools held on the market||2,850||2,850|
|Receivables, web of allowances||40,483||28,269|
|Spare elements stock||57,870||59,434|
|Property, gear & furnishings, much less accrued depreciation||31,169||31,753|
|Intangible belongings, web||1,232||1,246|
|LIABILITIES, REDEEMABLE PREFERRED STOCK AND SHAREHOLDERS’ EQUITY|
|Accounts payable and accrued bills||$||24,391||$||26,977|
|Deferred revenue taxes||118,570||116,838|
|Redeemable most popular inventory ($0.01 par worth)||49,743||49,722|
|Frequent inventory ($0.01 par worth)||66||66|
|Paid-in capital in extra of par||16,580||13,696|
|Amassed different complete revenue (loss), web of tax||2,550||(5,117||)|
|Whole shareholders’ fairness||372,412||364,015|
|Whole liabilities, redeemable most popular inventory and shareholders’ fairness||$||2,409,674||$||2,364,948|
|CONTACT:||Scott B. Flaherty|
|Chief Monetary Officer|