Willis Lease Finance Reports 29.4% Decrease in 2020 Revenue
MAR 16, 2021 - 6:37 am
Willis Lease Finance reported annual total revenues of $288.7 million and pre-tax profit of $17.3 million for the year ended Dec. 31, 2020. The company reported lower revenue in 2020 when compared with 2019, primarily due to the impact of the COVID-19 pandemic. The slowdown in global travel has led to a reduction in aircraft and engine utilization as well as a reduction in demand for aircraft and engine spare parts that keep airline fleets in operation. For the year ended Dec. 31, 2020, aggregate lease rent and maintenance reserve revenues were $248.3 million and spare parts and equipment sales were $18.6 million for Willis Lease Finance.
“The COVID-19 pandemic obviously has had a dramatic impact on global travel, and the aircraft and aircraft engine lessors, including our company, have felt the effects of the slowdown,” Charles F. Willis, chairman and CEO of Willis Lease Finance, said. “We have worked hard this year to protect our own liquidity, focus on our customers and invest in new technology equipment, which we believe has positioned the company well for continued growth and the industry’s eventual emergence from this crisis.”
“The entire industry has suffered as a result of the pandemic-driven disappearance of air travel, but we are proud of the way we have navigated this crisis and the way our employees have delivered for our shareholders and our customers,” Brian R. Hole, president of Willis Lease Finance, said. “This company has a long track record of innovating and fighting through cycles and we are excited for the opportunity to continue that trend now.”
Total revenue was $288.7 million in 2020, a 29.4% decrease when compared with $409.2 million in the prior year.
Lease rent revenue was $142.9 million in 2020.
Maintenance reserve revenue was $105.4 million in 2020, a decrease of 3.3% compared with $109 million in 2019. Long-term maintenance reserve revenue, which is influenced by end of lease compensation, increased to $87.7 million in 2020 compared with $37.6 million in the prior year. Short-term maintenance reserve revenue, which is influenced by customers’ usage of leased assets, was $17.7 million in 2020 compared with $71.4 million in the prior year.
Spare parts and equipment sales were $18.6 million in 2020 compared with $74.7 million in 2019.
Income before income taxes was $17.3 million in 2020 compared with $88.9 million in 2019.
Aggregate lease assets, inclusive of equipment held for operating lease and notes receivable, at Dec. 31, 2020 and 2019 were $2,045.3 million and $1,689.1 million, respectively, marking a 21.1% year-over-year increase.
The book value of lease assets owned directly or through joint ventures was $2,384.7 million at Dec. 31, 2020. As of Dec. 31, 2020, the company also managed 400 engines, aircraft and related equipment on behalf of third parties.
The company maintained $223 million of undrawn revolver capacity at Dec. 31, 2020.
Diluted weighted average earnings per common share were $1.05 for 2020 compared with $10.50 in 2019.
Under the company’s repurchase plan, the company repurchased a total of 55,426 units of common stock during 2020 for $1.5 million.
Book value per diluted weighted average common share outstanding increased to $59.40 at Dec. 31, 2020, compared with $57.83 at Dec. 31, 2019.
As of Dec. 31, 2020, Willis Lease Finance’s $1.887 billion of equipment held for operating lease portfolio and $158.7 million notes receivable represented 291 engines, eight aircraft, one marine vessel, and other leased parts and equipment. As of Dec. 31, 2019, the company’s $1.651 billion of equipment held for operating lease portfolio and $38.1 million notes receivable represented 263 engines, 12 aircraft, one marine vessel, and other leased parts and equipment.
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