Willis Reports Record Quarterly Lease Rent Revenue of $47MM

Willis Lease Finance reported a pre-tax profit of $13.3 million in Q3/18, including record quarterly lease rent revenue of $47.0 million.

Leasing results were driven by continued high utilization and 18.5% growth of its portfolio to $1.590 billion at quarter-end compared to $1.343 billion at December 31, 2017. Aggregate lease rent and maintenance reserve revenues were $66.4 million for Q3/18, up 23.2% from the comparable period in 2017.

“We continue to deliver positive profits and cash flow during a significant period of expansion for the Company,” said Charles F. Willis, chairman and CEO. “We are very excited about our growth and capabilities in our asset management business, which we believe will be what helps us re-shape the industry and especially the way airlines utilize and manage engines.”

“Demand for engines, parts and technical services grew in the third quarter and our financial results reflect that our platform is uniquely situated to deliver value for our customers across the spectrum,” said Brian R. Hole, president. “While our priority is to deliver for customers today, we are always looking for ways to grow the Platform with new and innovative products and programs for tomorrow.”

Third Quarter 2018 Highlights:

Total revenue grew by 18.4% to $78.0 million in Q3/18, compared to $65.9 million in the comparable prior year period.
Lease rent revenue achieved a record quarterly high of $47.0 million in the Q3/18; 40.4% growth from $33.5 million in the comparable quarter of 2017.
Earnings before tax were $13.3 million in Q3/18, up 60.7% when compared to the comparable quarter of 2017.
Equipment lease portfolio grew 18.5% to $1.590 billion, from $1.343 billion at December 31, 2017, net of asset sales and depreciation expense. The book value of lease assets we own directly or through our joint ventures was $1.9 billion at September 30, 2018. As of September 30, 2018, the Company managed 423 engines, aircraft and related equipment on behalf of third parties.

As of September 30, 2018, the company had a total lease portfolio consisting of 250 engines, 14 aircraft and 10 other leased parts and equipment with a net book value of $1.590 billion. As of December 31, 2017, the company had a total lease portfolio consisting of 225 engines, 16 aircraft and seven other leased parts and equipment, with a net book value of $1.343 billion.

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