Willis Lease Finance Corporation has reported first-quarter total revenues of US$68.8 million. For the three months ended March 31, 2022, aggregate lease rent and maintenance reserve revenues were US$53.0 million and spare parts and equipment sales were US$6.6 million. The company reported increased total revenues in the first quarter when compared to the prior-year period, primarily due to an increase in lease rent revenue and short-term maintenance revenue.
Quarterly performance was negatively impacted by the effects of the Russian military action in Ukraine and related sanctions. In the first quarter, the company recorded a US$20.4 million impairment on two engines located in Russia, which are expected to be unrecoverable and wrote down US$0.9 million of receivables associated with Russian leases.
Furthermore, through its joint venture Willis Mitsui & Company Engine Support (WMES), the company recorded an additional net impairment of US$2.4 million, presented through loss from joint ventures, for one engine located in Russia, which is also expected to be unrecoverable.
Lease rent revenue increased by US$6.6 million, or 21.0%, to US$38.1 million in the first quarter of 2022, compared to US$31.5 million in the same quarter of 2021, primarily reflecting an increase in the number of engines placed on lease. This increase was partly offset by a US$0.3 million reduction in lease rent revenue associated with Russian leases which was determined to be uncollectible as of March 31, 2022.
Maintenance reserve revenue was US$14.8 million in the first quarter of 2022, a decrease of 25.1% compared to US$19.8 million in the same quarter of 2021. (£1.00 = US$1.22 at time of publication).
