Willis Lease Finance reports 4th quarter net income of $4.0 million

Willis Lease Finance Corporation reported improving utilization and strengthening demand for leased engines boosted fourth quarter profits. Net income increased to $4.0 million in the fourth quarter of 2010, compared to $3.1 million in the third quarter and $1.0 million in the fourth quarter a year ago. The lease portfolio increased 2% year-over-year to $998.0 million, with 16 engines purchased and 7 engines and one airframe sold during 2010. Of the 2010 purchases, 9 engines totaling $68 million were purchased late in the fourth quarter and had little impact on 2010 revenues. Year-end utilization improved to 90% from 85% a year ago, showing improvement from prior periods, which were 83% and 89% at the end of the second and third quarters of 2010, respectively. Average utilization was 86% in 2010 compared to 89% in 2009. Lease rent revenues remained relatively flat in both the fourth quarter and full year, reflecting lower average utilization and pressure on lease rates. Fourth quarter lease rent revenues totaled $25.7 million, compared to $25.1 million in the preceding quarter and $25.4 million in the fourth quarter of 2009. For 2010, lease rent revenues were $102.1 million, down slightly from $102.4 million a year ago. Maintenance reserve revenues contributed $11.1 million to total fourth quarter revenues, compared to $9.7 million in the prior quarter and $13.0 million in the year ago quarter. Maintenance reserve revenues contributed $34.8 million, to 2010 revenues, down from a record $46.0 million in 2009.