$WLFC reports solid financial recovery and increased leasing demand in 2022
Mar 9th 2023, 12:07 pm
Analyst Summary: Willis Lease Finance Corporation reported annual total revenues of $311.9 million, up from the prior year primarily due to an increase in core lease rent and short-term maintenance revenues. The company generated $9.8 million of pre-tax income in 2022 compared to $9.1 million in the prior year. The increase in lease rent revenue was driven by an increase in the number of engines acquired and placed on lease. The maintenance reserve revenue increased by 12.8% in comparison to the prior period, primarily due to a continued recovery in global flight traffic. As of December 31, 2022, the Company had $273.0 million of undrawn revolver capacity and the book value of lease assets owned directly or through joint ventures was $2,518.6 million. CEO Austin C. Willis stated, "2022 represents the beginnings of a solid recovery for our business. The recovery in the leasing markets, driving increased demand and rate, positions the Company to combat the inflationary effects of a new, post-COVID environment" and President Brian R. Hole added, "Our programs are becoming the bellwether for airlines looking for efficiency and to de-couple from counterparties that are struggling to produce consistently." It is worth noting that the matters discussed in the press release contain forward-looking statements that involve risks and uncertainties. Factors that might cause a difference include changes in world markets, interest rates, and availability of capital, as well as regulatory changes affecting airline operations, aircraft maintenance, accounting standards, and taxes.