Independent jet engine lessor Willis Lease Finance reported pretax earnings for 2015 of $14.1 million, up 19.4% from $11.8 million in 2014. Net income for 2015 was $7.4 million compared to $7.2 million the prior year. Fourth quarter 2015 net income increased to $3.0 million compared to a loss of $0.3 million in the same quarter a year ago. The year ago quarter was impacted by a $2.7 million non-cash engines write-down and the expensing of a $3.5 million engine repair.
The following highlights were excerpted from the news release:
“I am pleased to report that on a pretax basis our financial performance in 2015 was the best since 2011,” said Charles F. Willis, chairman and CEO. “Our fourth quarter and full year results reflect a combination of improvements in utilization, greater trading activity and growth in the lease portfolio—all contributing to record total revenues of $200 million. I believe we have a lot of momentum going into 2016. Many of our customers are having record years as well, due in large part to the low cost of fuel. Demand for our engines remains strong. Our product and service offerings are expanding and should present opportunities for revenue growth in the future—this includes our end of life solutions business, Willis Aero, which is registering impressive growth. Our joint ventures in China and Ireland are also continuing to grow and develop. The market remains favorable for leasing and trading assets, and we are optimistic about the opportunities we see for the coming year.”
“In 2015, we achieved record levels of lease rent and maintenance reserve revenue, mainly due to higher utilization,” said Donald A. Nunemaker, president. “We placed a lot of focus on utilization improvement last year and the hard work paid off. Our average utilization for 2015 reached 87%, which was the highest level achieved since 2009. Utilization for the fourth quarter of 2015 averaged 91%. We have said before that our utilization is subject to upward and downward swings from quarter to quarter due to a variety of different factors, and it remains to be seen how long it can be held at historically high levels like the last two quarters of 2015.”
“We have stepped up our trading activity in the last year to capitalize on solid opportunities in the market,” said Brian Hole, chief investment officer and incoming president. “We’ve been managing our own portfolio more effectively, and at the same time seeking opportunities to leverage our creativity and our experience with engines, either for trade, lease or for surplus material, in order to deliver value-added solutions for our customers. Whether this results in us financing, buying or selling aircraft or engines, or simply providing technical and asset management services, we’re looking forward to developing even deeper relationships with our many customers around the world.”
“After 19 years on our management team, we are bidding farewell to Don Nunemaker who is retiring, and welcoming Brian Hole as our incoming president,” said Willis. “In addition, we have initiated a search for a new chief financial officer, following Brad Forsyth’s recent resignation for personal reasons. Our business continues to evolve, and we are building our senior management team to be fully prepared for the opportunities and challenges of the future.”
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