Willis Lease Finance Corporation (NASDAQ: WLFC) today reported pre-tax profit of $27.8 million and total revenues of $103.8 million in the first quarter of 2019. The Company’s first quarter 2019 pre-tax results were driven by continued revenue growth in the core leasing business, an increase in trading activity and continuing spare parts sales. Aggregate lease rent and maintenance reserve revenues were $73.7 million for the first quarter of 2019.
“Our continued growth and the Company’s record quarterly revenue and pre-tax profits of $103.8 million and $27.8 million, respectively, speak to the market’s recognition of the value of the Willis Platform,” said Charles F. Willis, Chairman and CEO. “We continue to see a global client base leveraging our broad product offering of core lease services, materials, fleet transition solutions, asset management and materials services.”
“We are very pleased with our growth and financial results in the first quarter,” said Brian R. Hole, President. “We are even more excited, though, that our customers continue to subscribe to our message that it is more efficient to borrow an engine from us when they need it than it is to buy multiple new engines and deploy permanent capital in assets that are, by definition, ‘spare’.”
First Quarter 2019 Highlights (at or for the periods ended March 31, 2019, as compared to March 31, 2018, and December 31, 2018):
Total revenue increased by 47.2% to $103.8 million in the first quarter of 2019, compared to $70.5 million in the same quarter of 2018.
Lease rent revenue achieved a record quarterly high of $48.4 million in the first quarter of 2019; 22.0% growth from $39.6 million in the same quarter of 2018.
Quarterly Maintenance reserve revenue increased by $9.9 million, or 64.2%, to $25.4 million in the first quarter of 2019, compared to $15.4 million in the prior year period.
Spare parts and equipment sales increased by 34.8% to $17.5 million in the first quarter of 2019, compared to $13.0 million in the same quarter of 2018.
Earnings before tax were a record high $27.8 million in the first quarter of 2019, compared to $9.6 million in the same quarter of 2018.
Average utilization for the first quarter of 2019 increased to 89% from 86% in the comparable prior year quarter.
Our equipment lease portfolio was $1.605 billion at March 31, 2019, compared to $1.673 billion at December 31, 2018.
The book value of 311 lease assets we own directly or through our joint ventures was $2.0 billion at March 31, 2019. As of March 31, 2019, the Company also managed 437 engines, aircraft and related equipment on behalf of third parties.
The Company maintained $498 million of undrawn revolver capacity at March 31, 2019.
The Company repurchased a total of 7,671 shares of common stock in the first quarter of 2019 under the Company’s repurchase plan for $0.3 million.
Diluted weighted average earnings per common share was $3.35 per share for the first quarter of 2019.
Book value per diluted weighted average common share outstanding increased to $51.43 at March 31, 2019, compared to $47.43 at December 31, 2018.
As of March 31, 2019, the Company had a total lease portfolio consisting of 244 engines, 13 aircraft, 10 other leased parts and equipment and one marine vessel with a net book value of $1.605 billion. As of December 31, 2018, the Company had a total lease portfolio consisting of 244 engines and related equipment, 17 aircraft and 10 other leased parts and equipment, with a net book value of $1.673 billion.