Willis Lease Finance reported pretax income grew 104% to $14.4 million in Q1/17 compared to $7.1 million in Q1/16 on revenues of $77.9 million that were up 53.7% from $50.7 million a year-ago.

The company’s Q1/17 results were bolstered by $32.0 million of maintenance reserve revenue, of which $21.5 million was long term maintenance revenue related to assets coming off lease. These revenues were offset by related non-cash write downs totaling $13.0 million. Net income attributable to common shareholders for Q1/17 increased 95.4% to $7.8 million from $4.0 million in Q1/16.

“We continue to produce strong pre-tax financial results in 2017, realizing our most profitable quarter since 2008,” said Charles F. Willis, chairman and CEO. “Utilization remains strong at 89% at the end of the first quarter, our lease portfolio is growing and Willis Aero is delivering better than expected revenues and margin.”

“Our complementary leasing, surplus material and trading businesses performed well, resulting in the Company achieving record quarterly revenues of $78 million,” said Brian R. Hole, president. “We do not expect to repeatedly earn such large long-term maintenance reserve revenues but our pre-tax income exceeded expectations even without the net impact of long-term reserve revenue and non-cash writedowns. We continue to actively manage the portfolio in an effort to maximize cash and margin efficiency.”

The following highlights were excerpted from the news release:

• Average utilization in Q1/17 was 89% as compared to 92% in the preceding quarter and 87% in the year ago comparable period.
• The company purchased $40.3 million of assets in Q1/17, and sold $32.7 million of assets.
• The equipment portfolio grew 1.0% in the first quarter of 2017 to $1.095 billion compared to Q1/16 (see below)

As of March 31, 2017, Willis Lease had 209 commercial aircraft engines, 9 aircraft and 5 aircraft parts packages and other engine-related equipment in its lease portfolio, with a net book value of $1.095 billion, compared to 201 commercial aircraft engines, 10 aircraft, 5 aircraft parts packages, and other engine-related equipment in its lease portfolio, with a net book value of $1.084 billion a year ago.