Willis Lease Finance Reports Q2 Record Lease Rent Revenue

Willis Lease Finance reported a pre-tax profit of $11.6 million in Q2/18, driven by strong sales in its leasing, spare parts and asset management businesses. The company achieved record quarterly lease rent revenue of $43.1 million in the period driven by continued high utilization and 14.9% growth of our portfolio to $1.542 billion at quarter-end compared to $1.343 billion at December 31, 2017.

Aggregate lease rent and maintenance reserve revenues were $65.1 million for Q2/18, up 37.5% and 85.5% respectively.

The following highlights were excerpted from the Willis Lease Finance news release:

  • Total revenue grew by 9.5% to $74.3 million in Q2/18, compared to $67.8 million in the prior year period.
  • Lease rent revenue achieved a record quarterly high of $43.1 million in Q2/18; 37.5% growth from $31.3 million in the same quarter of 2017.
  • Utilization at the end of Q2/18 was 88% compared to 89% at 2017 year-end. Utilization was negatively impacted by delivery of new, off lease engines over the period.
  • The equipment lease portfolio grew 14.9% to $1.542 billion, from $1.343 billion at December 31, 2017, net of asset sales and depreciation expense. The book value of lease assets owned directly or through joint ventures was $1.9 billion at June 30, 2018.
  • The company purchased $104.5 million of equipment in Q2/18, compared to $76.9 million in Q2/17.
  • The company maintained $224 million of undrawn revolver capacity as of June 30, 2018.

“We continue to deliver strong cash flow and profits during a significant growth period for the company,” said Charles F. Willis, chairman and CEO.  “Our focus is on growing and shaping our portfolio, and the business generally, to ensure that we have the right assets and services in the right places, at the right time, delivering maximum value for our customers.”

“The industry continues to see high demand for lease engines, parts and services and we are poised to deliver on each because of the strength and depth of our asset portfolio and our platform,” said Brian R. Hole, president. “We believe we are leading a fundamental industry change as airlines realize it is more efficient to access our platform of assets and services on demand than to acquire a large number of perpetually under-utilized spare engines.”


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