Willis Lease Finance Reports Q4 Net Loss



Willis Lease Finance reported 2014 net income of $7.2 million compared to net income of $15.6 million in 2013. The company said after-tax income for 2013 included a one-time $8.6 million tax benefit. Annual sales were a record $174.3 million, up 10% compared to $158.4 million a year earlier.

In the fourth quarter of 2014, Willis reported a net loss of $0.3 million compared to net income of $6.6 million in the fourth quarter of 2013. The loss in the current period included $2.7 million of non-cash write-downs and the expensing of $3.5 million related to an engine repair.

At December 31, 2014, Willis had 207 commercial aircraft engines, 5 aircraft parts packages and 5 aircraft and other engine-related equipment in its lease portfolio, with a net book value of $1.066 billion, compared to 202 commercial aircraft engines, 5 aircraft parts packages and 4 aircraft and other engine-related equipment in its lease portfolio, with a net book value of $1.033 billion, a year ago.

“Our pre-tax income for 2014 was the highest since 2011, but we still have work to do to improve utilization and grow our top line,” said Charles F. Willis, chairman and CEO. “While overall demand in the engine lease market is good, our portfolio utilization rate has been negatively impacted by an excess supply of certain engine types. This happens from time to time, and we expect to see improvement over the next several quarters.”

“The improving profitability of commercial carriers aided by the rapid drop in fuel prices, together with the abundant availability and low cost of capital, bode well for the growth of engine leasing,” Willis continued. “We expect to capitalize on these factors in 2015 by placing greater emphasis on growing our asset base and expanding our service offerings. We have been preparing for this over the last year by significantly enhancing our senior management team and expanding our sales presence in the field. We should begin to see the benefits of these moves later this year.”

To view the full Willis Lease Finance news release, click here.


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