Willis Lease Finance reported annual total revenues of $274.2 million and pre-tax profit of $9.1 million for the year ended Dec. 31, 2021. In addition, the company reported that aggregate lease rent and maintenance reserve revenues were $208.8 million and spare parts and equipment sales were $17.4 million.

Willis Lease Finance reported increased total revenues in Q4/21 when compared with Q4/20, primarily due to both an increase in lease rent revenue and a gain on sale of leased equipment and financial assets, partially offset by a reduction in long-term maintenance revenue.

“We continued to see a slow recovery during the second half of 2021 as travel began to open on a global basis only to be dampened again near year-end by COVID-19 variants,” Charles F. Willis, chairman and CEO of Willis Lease Finance, said. “COVID-related travel prohibitions have been relaxed more recently, but now the industry faces new stresses associated with geopolitical issues that are tragic on every level. As always, we continue to focus on the things we can control, and we believe the company is well positioned to help our customers provide an essential product: air travel.”

“The world has been and continues to be an unsettled place, but the dedication of our employees is constant,” Brian R. Hole, president of Willis Lease Finance, said. “Their efforts allow us to deliver the novel programs, financing products and services our customers need more and more as they realize that ‘same again’ will not be an adequate strategy in the current times.”

2021 Highlights

• Willis Lease Finance reported total revenue of $274.2 million in 2021, a 5% decrease when compared with $288.7 million in 2020. Revenue for the three months ended December 31, 2021 was $75.8 million, up 23.3% from the comparative period in 2020.
• Lease rent revenue was $134.8 million in 2021, off 5.6% from 2020.
• Maintenance reserve revenue was $74 million in 2021, a decrease of 29.8% compared with $105.4 million in the prior year.
  • The decline in maintenance revenue was primarily influenced by lower long-term maintenance revenue associated with engines returning from long-term lease, according to Willis Lease Finance
  • Short-term maintenance revenue, driven by engine usage, was flat at $17.7 million year over year.
• Spare parts and equipment sales decreased to $17.4 million in 2021 compared with $18.6 million in 2020, primarily due to no equipment sales during 2021 compared with $0.9 million for the sale of one engine in 2020.
• Gain on sale of leased equipment increased 76.2% to $6 million in 2021, reflecting the sale of 12 engines and one airframe, compared with $3.4 million in 2020, reflecting the sale of 11 engines and two airframes.
• Gain on sale of financial assets, effectively the sale of leased equipment, was $10.9 million in 2021, reflecting the sale of two notes receivable.
• Willis Lease Finance recognized a $6.3 million asset transition fee in 2021 as a result of the close-out of an engine transition program. This fee was part of a program the company provided to an operator as it transitions its fleet to next generation technologies.
• Other revenue increased by $6.5 million to $24.9 million in 2021 compared with $18.4 million in 2020, primarily reflecting interest income from the company’s notes receivable and other service-related fees.
• Income before income taxes was $9.1 million in 2021 compared with $17.3 million in 2020.
• Willis Lease Finance’s aggregate lease assets, inclusive of its equipment held for operating lease and notes receivable, at Dec. 31, 2021, and Dec. 31, 2020, were $2,106.8 million and $2,045.3 million, respectively, equating to a 3% year-over-year increase between 2020 and 2021.
• The book value of lease assets Willis Lease Finance owns directly or through its joint ventures, inclusive of its notes receivable, was $2,448.4 million at Dec. 31, 2021. As of Dec. 31, 2021, the company also managed 475 engines, aircraft and related equipment on behalf of other parties.
• Willis Lease Finance maintained $410 million of undrawn revolver capacity at Dec. 31, 2021.
• During 2021, Willis Lease Finance repurchased 268,408 shares of common stock for approximately $10.1 million at a weighted average price of $37.57 per share.
• Diluted weighted average earnings per common share were $0.00 for 2021 compared with $1.05 in 2020.
• Book value per diluted weighted average common share outstanding decreased to $59.23 at Dec. 31, 2021, compared with $59.40 at Dec. 31, 2020.

Balance Sheet

As of Dec. 31, 2021, Willis Lease Finance’s $1.991 billion equipment held for operating lease portfolio and $115.5 million notes receivable represented 304 engines, 12 aircraft, one marine vessel and other leased parts and equipment. As of Dec. 31, 2020, the company’s $1.887 billion 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.