Tue, May 6, 7:19 PM (16 days ago)
**Willis Lease Finance Corporation (WLFC) Q1 2025 Financial Summary** **Financial Health & Performance:** - **Revenue:** $157.7M (up 32.5% YoY) - Lease rent revenue: $67.7M (up 28.1% YoY) - Maintenance reserve revenue: $54.9M (up 25.0% YoY) - Spare parts and equipment sales: $18.2M (up 454.7% YoY) - Interest revenue: $3.9M (up 73.4% YoY) - Gain on sale of leased equipment: $4.4M (down 51.8% YoY) - **Profit Margins:** Net income: $16.9M (down 18.7% YoY) - Net margin: 10.7% (down from 17.5% YoY) - **Cash Flow:** Operating cash flow: $41.0M (down 31.4% YoY) - Investing cash flow: $13.7M (up from -$63.8M YoY) - Financing cash flow: -$38.1M (up from -$69.9M YoY) - **Earnings per Share (EPS):** Basic: $2.34 (down 22.1% YoY) - Diluted: $2.21 (down 26.3% YoY) - **Debt:** $2.23B (down 1.5% YoY) - Interest coverage ratio: 2.25x (down from 2.48x YoY) - Total leverage ratio: 4.25x (up from 4.12x YoY) - **Liquidity:** $149.1M in cash and cash equivalents (up 61.3% YoY) **Trends & Uncertainties:** - **Positive Trends:** Increased lease rent and maintenance reserve revenues, significant growth in spare parts and equipment sales. - **Challenges:** Decreased gain on sale of leased equipment, increased general and administrative expenses, and higher net finance costs. - **Uncertainties:** High interest rates, inflation, and potential tariffs may impact future operations and financial condition. **Future Operations Impact:** - **Growth Strategy:** Continued focus on acquiring and leasing popular commercial aircraft engines, expanding spare parts sales, and managing portfolio to maximize residual values. - **Risk Management:** Hedging a portion of variable rate debt to mitigate interest rate risk, monitoring economic conditions, and evaluating the impact of potential tariffs. **Segment Performance:** - **Leasing & Related Operations:** Revenue: $141.7M (up 20.4% YoY), Income from operations: $22.6M (down 18.7% YoY) - **Spare Parts Sales:** Revenue: $18.8M (up 305.9% YoY), Income from operations: $1.4M (up from -$0.6M YoY) **Dividends & Share Repurchase:** - **Dividends:** $0.25 per share declared, payable May 22, 2025. - **Share Repurchase:** $60.0M plan approved, no shares repurchased in Q1 2025. **Market Risk:** - **Interest Rate Risk:** $862.7M in variable rate debt, hedged portion protects against rate increases. - **Currency Risk:** 73% of lease rent revenues from non-U.S. lessees, potential impact from currency devaluation. **Controls & Procedures:** - Effective disclosure controls and procedures in place, no material changes in internal control over financial reporting. **Legal & Risk Factors:** - No material legal proceedings, risks include trade barriers, tariffs, and economic conditions.