Willis Lease Finance posts 2022 revenues of US$311.9 million

Willis Lease Finance Corporation has posted annual total revenues of US$311.9 million and pre-tax income of US$9.8 million. For the year ended December 31, 2022, aggregate lease rent and maintenance reserve revenues were US$246.0 million and spare parts and equipment sales were US$27.0 million. The company reported
increased total revenues in the fourth quarter when compared to the prior year period, primarily due to an increase in the company’s core lease rent and short-term maintenance revenues.

“2022 represents the beginnings of a solid recovery for our business,” said Austin C. Willis, the company’s Chief Executive Officer. “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.”

Fourth quarter 2022 highlights: (at or for the quarter and year ended December 31, 2022)

Lease rent revenue increased by US$27.7 million, or 20.6%, to US$162.6 million in 2022, compared to US$134.8 million in 2021, primarily reflecting an increase in the number of engines acquired and placed on lease, including an increase in utilisation compared to the prior period.
Maintenance reserve revenue was US$83.4 million in 2022, an increase of 12.8%, compared to US$74.0 million in 2021. Short-term maintenance revenue, a proxy for flight activity, was US$47.4 million in 2022, compared to US$17.7 million in 2021, as a result of the continued recovery in global flight traffic. As of December 31, 2022, there was US$6.3 million of collected use fees included in Unearned Revenue, which further reflects increased usage of the lease portfolio.
Spare parts and equipment sales increased to US$27.0 million in 2022, compared to US$17.4 million in 2021. The increase in spare parts sales was driven by an industry-wide increase in engine and aircraft utilisation and the demand for parts associated with such increase compared to the prior-year period.
Gain on sale of leased equipment was US$3.1 million in 2022, reflecting the sale of 25 engines. Gain on sale of leased equipment was US$6.0 million in 2021, reflecting the sale of 12 engines and one airframe.
Gain on sale of financial assets was US$3.1 million in 2022, reflecting the sale of four notes receivable. Gain on sale of financial assets was US$10.9 million in 2021, reflecting the sale of two notes receivable.
The Company generated US$9.8 million of pre-tax income in 2022 compared to US$9.1 million in the comparable period of 2021. (£1.00 = US$1.21 at time of publication).