ARSA asks Supreme Court to intervene on ICA availability
13th June 2012
Willis Lease Finance Corporation has reported annual total revenues of $274.2 million and pre-tax profit of $9.1 million. For the year ended December 31, 2021, aggregate lease rent and maintenance reserve revenues were $208.8 million and spare parts and equipment sales were $17.4 million. The Company reported increased total revenues in the fourth quarter when compared to the prior year period, primarily due to both an increase in lease rent revenue and gain on sale of leased equipment and financial assets, partially offset by a reduction in long-term maintenance revenue. Income before income taxes was $9.1 million in 2021, compared to $17.3 million in 2020.
“We continued to see a slow recovery during the second half of 2021 as travel began to open on a global basis only to be dampened again near year-end by COVID-19 variants,” said Charles F. Willis, Chairman and CEO. “COVID-related travel prohibitions have been relaxed more recently, but now the industry faces new stresses associated with geo-political issues that are tragic on every level. As always, we continue to focus on the things we can control, and we believe the Company is well positioned to help our customers provide an essential product: air travel.”
“The world has been, and continues to be, an unsettled place, but the dedication of our employees is constant,” said Brian R. Hole, President. “Their efforts allow us to deliver the novel programs, financing products and services our customers need more and mora as they realize that ‘same again’ will not be an adequate strategy in the current times.”
Willis Lease’s lease rent revenue was $134.8 million in 2021, off 5.6% from 2020, while maintenance reserve revenue was $74.0 million in 2021, a decrease of 29.8% compared to $105.4 million in the prior year. Willis notes that the decline in maintenance revenue was primarily influenced by lower long-term maintenance revenue associated with engines returning from long-term lease. Short-term maintenance revenue, driven by engine usage, was flat at $17.7 million year over year.
Willis reported that spare parts and equipment sales decreased to $17.4 million in 2021, compared to $18.6 million in 2020, primarily due to no equipment sales during 2021 compared to $0.9 million for the sale of one engine in 2020. The lessor’s gain on sale of leased equipment increased 76.2% to $6.0 million in 2021 reflecting the sale of 12 engines and one airframe, compared to $3.4 million in 2020 reflecting the sale of 11 engines and two airframes. The company’s gain on sale of financial assets, effectively the sale of leased equipment, was $10.9 million in 2021 reflecting the sale of two notes receivable.
Willis recognized a $6.3 million asset transition fee in 2021 as a result of the close out of an engine transition program. This fee was part of a program the company provided to a large operator as it transitions its fleet to next generation technologies.
Willis Lease book value of lease assets its either owns directly or through its joint ventures, inclusive of notes receivable, was $2,448.4 million at December 31, 2021. As of December 31, 2021, the company also managed 475 engines, aircraft and related equipment on behalf of other parties.
Willis Lease maintained $410 million of undrawn revolver capacity at December 31, 2021.
During 2021, the company repurchased 268,408 shares of common stock for approximately $10.1 million at a weighted average price of $37.57 per share. Diluted weighted average earnings per common share were $0.00 for 2021, compared to $1.05 in 2020.
As of December 31, 2021, the company’s $1.991 billion equipment held for operating lease portfolio and $115.5 million notes receivable represented 304 engines, 12 aircraft, one marine vessel and other leased parts and equipment. The company’s $1.887 billion equipment held for operating lease portfolio and $158.7 million notes receivable represented 291 engines, eight aircraft, one marine vessel and other leased parts and equipment.