Willis Q2 Earnings Hurt by Engine Write-Down



Willis Lease Finance reported that following a $3.1 million non-cash write-down related to the part-out of a wide-body aircraft engine, its Q2/15 net loss was $0.5 million compared to net income of $2.2 million in Q2/14 and net income of $2.3 million in Q1/15.

For the first six months of 2015, net income was $1.8 million compared to $6.5 million for the first half of 2014.

“The second quarter loss, following the $3.1 million non-cash write-down, overshadowed several other very positive performance results,” said Charles F. Willis, chairman and CEO. “During the second quarter, we continued to improve our portfolio utilization rate. We began the quarter at 83% and by the end of the quarter the rate had increased to 87%. Since most of the new lease activity occurred in the latter part of the quarter, we didn’t pick up the full financial impact of our improving utilization rate in the period. Demand for leased engines is strong across all major engine types. The oversupply issues for certain engine types that had existed in the market over the last several years seem to have largely abated.”

The following highlights were excerpted from the news release:

  • Average utilization in the current quarter increased significantly to 84%, compared to 81% in both the first quarter of 2015 and second quarter of 2014.
  • Utilization was 87% at quarter end, compared to 83% at the end of Q1/15 and 82% a year ago.
  • Lease rent revenues totaled $25.8 million, compared to $25.1 million from the preceding quarter and $24.8 million in the year ago quarter, reflecting a growing lease portfolio and improving utilization.
  • Maintenance reserve revenues declined to $10.5 million in the second quarter, from $14.1 million in the preceding quarter and $14.6 million from the year ago period, as fewer long term leases terminated in the quarter.

Access the full realease from Willis here.


Like this story? Begin each business day with news you need to know! Click here to register now for our FREE Daily E-News Broadcast and start YOUR day informed!

Leave a comment

View Latest Digital Edition

Terry Mulreany
Subscriptions: 800 708 9373 x130
[email protected]
Susie Angelucci
Advertising: 484.459.3016
[email protected]

View Latest Digital Edition

Visit our sister website for news, information, exclusive articles,
deal tables and more on the asset-based lending, factoring,
and restructuring industries.
www.abfjournal.com