株探米国株
日本語 英語
エドガーで原本を確認する
0001018164false00010181642024-05-022024-05-02

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
______________________________________________________________________

FORM 8-K
 
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
 ______________________________________________________________________
 
Date of Report (Date of earliest event reported): May 2, 2024
 
Willis Lease Finance Corporation
(Exact Name of Registrant as Specified in Charter)
 
Delaware   001-15369   68-0070656
(State or Other Jurisdiction
of Incorporation)
  (Commission File
Number)
  (I.R.S. Employer
Identification Number)
 
4700 Lyons Technology Parkway
Coconut Creek, FL 33073
(Address of Principal Executive Offices) (Zip Code)
 
Registrant’s telephone number, including area code: (561) 349-9989
 
Not Applicable
(Former name or former address, if changed since last report)
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
☐ Pre-commencement communications pursuant Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of Each Class Trading Symbol Name of exchange on which registered
Common Stock, $0.01 par value per share WLFC Nasdaq Global Market
 
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
 
Emerging growth company ☐






Item 2.02(a) Results of Operations and Financial Condition
 
Item 7.01 Regulation FD Disclosure
 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o The following information and exhibit are furnished pursuant to Item 2.02(a), “Results of Operations and Financial Condition” and Item 7.01, “Regulation FD Disclosure.” This information shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such a filing.
 
On May 2, 2024, the Company issued a news release setting forth the Company’s results from operations for the three months ended March 31, 2024 and financial condition as of March 31, 2024. A copy of the news release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.
 
Item 9.01 Financial Statements & Exhibits
 
The Company hereby furnishes the following exhibit pursuant to Item 2.02(a), “Results of Operations and Financial Condition” and Item 7.01, “Regulation FD Disclosure.”
 
Exhibit No.   Description
99.1  
104 Cover Page Interactive Data File (embedded within the Inline XBRL document)

2


SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned duly authorized officer.
 
Dated: May 2, 2024
 
 
  WILLIS LEASE FINANCE CORPORATION
   
  By: /s/ Scott B. Flaherty
  Scott B. Flaherty
  Executive Vice President and Chief Financial Officer

3
EX-99.1 2 q12024ex991.htm EX-99.1 Document

Exhibit 99.1
image.jpg

 
CONTACT:
Scott B. Flaherty
NEWS RELEASE   Chief Financial Officer
  (561) 349-9989
 

Record Results by Willis Lease Finance Corporation with
First Quarter Pre-tax Income of $29.9 million
 
COCONUT CREEK, FL — May 2, 2024 — Willis Lease Finance Corporation (NASDAQ: WLFC) (“WLFC”) today reported record first quarter total revenues of $119.1 million and record quarterly pre-tax income of $29.9 million. For the three months ended March 31, 2024, aggregate, core lease rent and maintenance reserve revenues were at an all-time high of $96.8 million, up 26% as compared to $76.7 million in 2023. The growth was predominantly driven by core, recurring lease and maintenance revenues associated with a strong, resurging aviation marketplace, and airlines leveraging our leasing, parts and maintenance capabilities in order to avoid protracted engine shop visits.

“Having developed our 145 maintenance and exchange capabilities over the past few years, we have become the partner of choice for airlines looking to avoid or outsource maintenance risk,” said Austin C. Willis, Chief Executive Officer of WLFC. “This strategy has proven effective, particularly in our supply chain constrained environment.”

“The Company performed well in the first quarter of 2024 and is benefiting from the continued maturation of our strategy,” said Brian R. Hole, President of WLFC.

First Quarter 2024 Highlights (at or for the period ended March 31, 2024, as compared to March 31, 2023 and December 31, 2023):

•Lease rent revenue of $52.9 million in the first quarter of 2024 was in-line with lease rent revenue of $53.2 million in the first quarter of 2023. During the three months ended March 31, 2024, we purchased equipment (including capitalized costs) totaling $62.8 million, which consisted of two aircraft and four engines and other parts and equipment purchased for our lease portfolio. During the three months ended March 31, 2023, we purchased equipment (including capitalized costs) totaling $55.7 million, which consisted of five engines and other parts and equipment purchased for our lease portfolio.
•Maintenance reserve revenue was $43.9 million in the first quarter of 2024, an increase of 86.7%, compared to $23.5 million in the same quarter of 2023, reflecting the high level of usage of our assets by our customer base. Engines on lease with “non-reimbursable” usage fees generated $37.6 million of short-term maintenance revenues in 2024, compared to $23.5 million in the prior year. There was $6.3 million of long-term maintenance revenue recognized in the three months ended March 31, 2024, compared to no long-term maintenance revenue recognized for the three months ended March 31, 2023. As of March 31, 2024 and March 31, 2023, there were $26.7 million and $13.7 million, respectively, of deferred in-substance fixed payment use fees included in Unearned revenue associated with engines on short-term leases. These deferred in-substance fixed payment use fees represent portfolio utilization beyond the maintenance reserve revenues reflected in our Unaudited Consolidated Statements of Income.
•Spare parts and equipment sales decreased to $3.3 million in the first quarter of 2024, compared to $5.1 million in the first quarter of 2023. The decrease in spare parts sales for the three months ended March 31, 2024 reflects variations in the timing of sales.
•Gain on sale of leased equipment was $9.2 million in the first quarter of 2024, reflecting the sale of eight engines. Loss on sale of leased equipment was $0.1 million in the first quarter of 2023, reflecting the sale of two engines. The Company is experiencing a strong market for engine sales.
•The Company generated a quarterly record of $29.9 million of pre-tax income in the first quarter of 2024, compared to the pre-tax income of $6.8 million in the first quarter of 2023.



•The book value of lease assets directly owned or through our joint ventures, inclusive of our notes receivable, maintenance rights, and investments in sales-type leases, was $2,530.7 million as of March 31, 2024.
•Diluted weighted average income per common share was $3.00 for the first quarter 2024, compared to diluted weighted average income per common share of $0.55 in the first quarter of 2023.
•Book value per diluted weighted average common share outstanding increased to $69.35 at March 31, 2024, compared to $67.73 at December 31, 2023.

Balance Sheet

As of March 31, 2024, the Company’s lease portfolio was $2,270.4 million, consisting of $2,130.3 million of equipment held in our operating lease portfolio, $97.9 million of notes receivable, $9.2 million of maintenance rights, and $33.0 million of investments in sales-type leases, which represented 337 engines, 14 aircraft, one marine vessel and other leased parts and equipment. As of December 31, 2023, the Company’s lease portfolio was $2,223.4 million, consisting of $2,112.8 million of equipment held in our operating lease portfolio, $92.6 million of notes receivable, $9.2 million of maintenance rights, and $8.8 million of investments in sales-type leases, which represented 337 engines, 12 aircraft, one marine vessel and other leased parts and equipment.
 
Willis Lease Finance Corporation
 
Willis Lease Finance Corporation (“WLFC”) leases large and regional spare commercial aircraft engines, auxiliary power units and aircraft to airlines, aircraft engine manufacturers and maintenance, repair and overhaul providers worldwide. These leasing activities are integrated with engine and aircraft trading, engine lease pools and asset management services through Willis Asset Management Limited, as well as various end-of-life solutions for engines and aviation materials provided through Willis Aeronautical Services, Inc. Additionally, through Willis Engine Repair Center®, Jet Centre by Willis, and Willis Aviation Services Limited, the Company’s service offerings include Part 145 engine maintenance, aircraft line and base maintenance, aircraft disassembly, parking and storage, airport FBO and ground and cargo handling services.

Except for historical information, the matters discussed in this press release contain forward-looking statements that involve risks and uncertainties. Do not unduly rely on forward-looking statements, which give only expectations about the future and are not guarantees. Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update them. Our actual results may differ materially from the results discussed in forward-looking statements. Factors that might cause such a difference include, but are not limited to: the effects on the airline industry and the global economy of events such as war, terrorist activity and pandemics; changes in oil prices, rising inflation and other disruptions to world markets; trends in the airline industry and our ability to capitalize on those trends, including growth rates of markets and other economic factors; risks associated with owning and leasing jet engines and aircraft; our ability to successfully negotiate equipment purchases, sales and leases, to collect outstanding amounts due and to control costs and expenses; changes in interest rates and availability of capital, both to us and our customers; our ability to continue to meet changing customer demands; regulatory changes affecting airline operations, aircraft maintenance, accounting standards and taxes; the market value of engines and other assets in our portfolio; and risks detailed in the Company’s Annual Report on Form 10-K and other continuing reports filed with the Securities and Exchange Commission.



Unaudited Consolidated Statements of Income
(In thousands, except per share data) 

Three Months Ended March 31,
  2024 2023 % Change
REVENUE  
Lease rent revenue $ 52,881  $ 53,220  (0.6) %
Maintenance reserve revenue 43,870  23,498  86.7  %
Spare parts and equipment sales 3,288  5,052  (34.9) %
Interest revenue 2,269  2,046  10.9  %
Gain (loss) on sale of leased equipment 9,201  (133) nm
Maintenance services revenue 5,227  4,659  12.2  %
Other revenue 2,347  1,193  96.7  %
Total revenue 119,083  89,535  33.0  %
EXPENSES
Depreciation and amortization expense 22,486  22,549  (0.3) %
Cost of spare parts and equipment sales 2,705  4,499  (39.9) %
Cost of maintenance services 5,574  3,927  41.9  %
Write-down of equipment 261  —  nm
General and administrative 29,581  27,831  6.3  %
Technical expense 8,255  4,342  90.1  %
Net finance costs:
     Interest expense 23,003  18,389  25.1  %
Total net finance costs 23,003  18,389  25.1  %
Total expenses 91,865  81,537  12.7  %
Income from operations 27,218  7,998  240.3  %
Income (loss) from joint ventures 2,674  (1,161) nm
Income before income taxes 29,892  6,837  337.2  %
Income tax expense 9,023  2,443  269.3  %
Net income 20,869  4,394  374.9  %
Preferred stock dividends 900  801  12.4  %
Accretion of preferred stock issuance costs 12  21  (42.9) %
Net income attributable to common shareholders $ 19,957  $ 3,572  458.7  %
Basic weighted average income per common share $ 3.12  $ 0.58 
Diluted weighted average income per common share $ 3.00  $ 0.55 
Basic weighted average common shares outstanding 6,387  6,123 
Diluted weighted average common shares outstanding 6,659  6,456 





Unaudited Consolidated Balance Sheets
(In thousands, except per share data)
 
  March 31, 2024 December 31, 2023
ASSETS
Cash and cash equivalents $ 7,622  $ 7,071 
Restricted cash 86,620  160,958 
Equipment held for operating lease, less accumulated depreciation 2,130,327  2,112,837 
Maintenance rights 9,180  9,180 
Equipment held for sale 2,856  805 
Receivables, net 61,881  58,485 
Spare parts inventory 85,165  40,954 
Investments 60,299  58,044 
Property, equipment & furnishings, less accumulated depreciation 35,531  37,160 
Intangible assets, net 1,034  1,040 
Notes receivable, net 97,859  92,621 
Investments in sales-type leases, net 33,013  8,759 
Other assets 63,075  64,430 
Total assets $ 2,674,462  $ 2,652,344 
LIABILITIES, REDEEMABLE PREFERRED STOCK AND SHAREHOLDERS’ EQUITY
Liabilities:
Accounts payable and accrued expenses $ 103,348  $ 52,937 
Deferred income taxes 156,030  147,779 
Debt obligations 1,735,570  1,802,881 
Maintenance reserves 99,529  92,497 
Security deposits 26,525  23,790 
Unearned revenue 41,687  43,533 
Total liabilities 2,162,689  2,163,417 
Redeemable preferred stock ($0.01 par value) 49,976  49,964 
Shareholders’ equity:
Common stock ($0.01 par value) 69  68 
Paid-in capital in excess of par 33,657  29,667 
Retained earnings 417,738  397,781 
Accumulated other comprehensive income, net of tax 10,333  11,447 
Total shareholders’ equity 461,797  438,963 
Total liabilities, redeemable preferred stock and shareholders’ equity $ 2,674,462  $ 2,652,344