Willis Lease Finance Corp (WLFC) Reports Q3 Pre-tax Income of $20.3 Million, a 143.4% YoY Increase
Willis Lease Finance Corp (NASDAQ:WLFC) reported Q3 total revenues of $105.7 million and pre-tax earnings of $20.3 million.
Lease rent revenue increased by 35.6% to $53.6 million in Q3 2023, compared to $39.5 million in Q3 2022.
Maintenance reserve revenue rose by 84.4% to $37.7 million in Q3 2023, compared to $20.4 million in the same quarter of 2022.
Diluted weighted average income per common share was $2.13 for the third quarter of 2023, compared to $0.89 in the third quarter of 2022.
On November 3, 2023, Willis Lease Finance Corp (NASDAQ:WLFC) released its Q3 earnings report. The company reported total revenues of $105.7 million and pre-tax earnings of $20.3 million. The company's lease rent revenue and maintenance reserve revenue showed significant growth, contributing to the increased total revenues compared to the prior year period.
Financial Highlights
Lease rent revenue increased by 35.6% to $53.6 million in Q3 2023, compared to $39.5 million in Q3 2022. The increase is attributed to an increase in the number of engines acquired and placed on lease, including an increase in utilization compared to that of the prior period.
Maintenance reserve revenue was $37.7 million in Q3 2023, an increase of 84.4%, compared to $20.4 million in the same quarter of 2022. The company also reported $20.3 million of pre-tax income in Q3 2023, compared to a pre-tax income of $8.4 million in Q3 2022.
However, spare parts and equipment sales decreased to $3.4 million in Q3 2023, compared to $7.0 million in Q3 2022. The decrease in spare parts sales for the three months ended September 30, 2023, reflects variations in the timing of sales.
Company's Performance and Outlook
Charles F. Willis, the Companys Executive Chairman, expressed satisfaction with the company's performance and growth strategies. He stated,
I am pleased to see how the Company and its employees continue to perform this year. Having recently traveled to over twenty countries, visiting many airline, MRO, and OEM heads, the conclusion reached is that our products are in demand."
The company's CEO, Austin C. Willis, also noted that rent and utilization continue to trend favorably, supported by high levels of travel, supply chain constraints, and OEM manufacturing issues.
Balance Sheet Summary
As of September 30, 2023, the company had $2,171.0 million of equipment held in its operating lease portfolio, $94.0 million of notes receivable, $13.4 million of maintenance rights, and $5.5 million of investments in sales-type leases. The company also maintained $270.0 million of undrawn revolver capacity at September 30, 2023.
Book value per diluted weighted average common share outstanding increased to $66.92 at September 30, 2023, compared to $64.27 at December 31, 2022.
Explore the complete 8-K earnings release (here) from Willis Lease Finance Corp for further details.
This article first appeared on GuruFocus.
