Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil EL&P Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries Willis Lease Finance Corporation Reports Third Quarter Pre-tax Income of $8.4 million By: Willis Lease Finance Corp. via GlobeNewswire November 02, 2022 at 06:00 AM EDT COCONUT CREEK, Fla., Nov. 02, 2022 (GLOBE NEWSWIRE) -- Willis Lease Finance Corporation (NASDAQ: WLFC) today reported third quarter total revenues of $76.9 million and pre-tax earnings of $8.4 million. For the three months ended September 30, 2022, aggregate lease rent and maintenance reserve revenues were $60.0 million and spare parts and equipment sales were $7.0 million. The Company reported increased total revenues in the third quarter when compared to the prior year period, primarily due to an increase in lease rent revenue. “Another strong quarter for our business,” said Austin Willis, the Company’s Chief Executive Officer. “The post COVID recovery is driving growth and profitability, however we remain watchful of macroeconomic and geopolitical risk.” “We have been building the business for years to deliver the programmatic solutions the industry is beginning to recognize as the preferred option in almost all cases,” said Brian R. Hole, President. “We will continue to innovate and support our customers’ efforts to navigate an environment that sprouts new challenges on a daily basis.” Third Quarter 2022 Highlights (at or for the periods ended September 30, 2022, as compared to September 30, 2021, and December 31, 2021): Lease rent revenue increased by $6.6 million, or 20.1%, to $39.5 million in the third quarter of 2022, compared to $32.9 million in the same quarter of 2021, primarily reflecting an increase in the number of engines acquired and placed on lease.Maintenance reserve revenue was $20.4 million in the third quarter of 2022, a decrease of 13.6% compared to $23.7 million in the same quarter of 2021. This decrease was due primarily to a reduction of $14.1 million in long-term maintenance revenue relative to the comparable period in 2021, which was offset by a quarter-over-quarter increase of $11.0 million in short-term maintenance reserve revenue, which is directly influenced by on lease engine flight hours and cycles.Spare parts and equipment sales increased to $7.0 million in the third quarter of 2022, compared to $5.1 million in the third quarter of 2021. The increase in spare parts sales was driven by improved industry wide demand for surplus material compared to the prior year period.Gain on sale of leased equipment was $0.9 million in the third quarter of 2022 reflecting the sale of two engines. Gain on sale of leased equipment was $2.4 million in the third quarter of 2021, reflecting the sale of six engines, one airframe and other parts and equipment.The Company generated $8.4 million of pre-tax income in the third quarter of 2022 compared to $6.1 million in the comparable quarter of 2021.The book value of lease assets we own directly or through our joint ventures, inclusive of our notes receivable, maintenance rights, and investment in sales-type leases, was $2,488.9 million at September 30, 2022. As of September 30, 2022, the Company also managed 333 engines, aircraft and related equipment on behalf of other parties.The Company maintained $298.0 million of undrawn revolver capacity at September 30, 2022.Diluted weighted average income per common share was $0.89 for the third quarter of 2022, compared to $0.32 in the third quarter of 2021.Book value per diluted weighted average common share outstanding increased to $64.28 at September 30, 2022, compared to $59.23 at December 31, 2021. Balance Sheet As of September 30, 2022, $2,078.8 million of equipment held in our operating lease portfolio, $82.5 million notes receivable, $21.4 million of maintenance rights, and $6.7 million investment in sales-type leases, represented 337 engines, twelve aircraft, one marine vessel and other leased parts and equipment. As of December 31, 2021, the Company had $1,991.4 million equipment held for operating lease portfolio, $115.5 million notes receivable, and $22.5 million of maintenance rights, which represented 304 engines, twelve aircraft, one marine vessel and other leased parts and equipment. Willis Lease Finance Corporation Willis Lease Finance Corporation leases large and regional spare commercial aircraft engines, auxiliary power units and aircraft to airlines, aircraft engine manufacturers and maintenance, repair and overhaul providers in 120 countries. These leasing activities are integrated with engine and aircraft trading, engine lease pools and asset management services supported by cutting edge technology through its subsidiary, Willis Asset Management Limited, as well as various end-of-life solutions for engines and aviation materials provided through its subsidiary, Willis Aeronautical Services, Inc. Except for historical information, the matters discussed in this press release contain forward-looking statements that involve risks and uncertainties. Do not unduly rely on forward-looking statements, which give only expectations about the future and are not guarantees. Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update them. Our actual results may differ materially from the results discussed in forward-looking statements. Factors that might cause such a difference include, but are not limited to: the effects on the airline industry and the global economy of events such as war, terrorist activity and the COVID-19 pandemic; changes in oil prices, rising inflation and other disruptions to world markets; trends in the airline industry and our ability to capitalize on those trends, including growth rates of markets and other economic factors; risks associated with owning and leasing jet engines and aircraft; our ability to successfully negotiate equipment purchases, sales and leases, to collect outstanding amounts due and to control costs and expenses; changes in interest rates and availability of capital, both to us and our customers; our ability to continue to meet changing customer demands; regulatory changes affecting airline operations, aircraft maintenance, accounting standards and taxes; the market value of engines and other assets in our portfolio; and risks detailed in the Company’s Annual Report on Form 10-K and other continuing reports filed with the Securities and Exchange Commission. Unaudited Consolidated Statements of Income(In thousands, except per share data) Three Months EndedSeptember 30, Nine Months EndedSeptember 30, 2022 2021 % Change 2022 2021 % ChangeREVENUE Lease rent revenue$39,515 $32,908 20.1 % $114,344 $96,859 18.1 %Maintenance reserve revenue 20,438 23,659 (13.6)% 59,517 60,749 (2.0)%Spare parts and equipment sales 6,966 5,091 36.8 % 20,388 13,226 54.2 %Gain on sale of leased equipment 920 2,440 (62.3)% 3,716 2,440 52.3 %Gain on sale of financial assets — — N/A 3,116 — N/A Asset transition fee — — N/A — 6,256 (100.0)%Other revenue 9,052 6,693 35.2 % 22,702 18,858 20.4 %Total revenue 76,891 70,791 8.6 % 223,783 198,388 12.8 % EXPENSES Depreciation and amortization expense 22,059 21,274 3.7 % 65,480 68,755 (4.8)%Cost of spare parts and equipment sales 4,204 3,921 7.2 % 16,080 11,008 46.1 %Write-down of equipment 654 — N/A 21,849 4,113 431.2 %General and administrative 22,788 18,662 22.1 % 66,820 54,312 23.0 %Technical expense 2,139 2,524 (15.3)% 11,222 6,130 83.1 %Net finance costs: Interest expense 16,304 18,325 (11.0)% 49,209 50,331 (2.2)%Total net finance costs 16,304 18,325 (11.0)% 49,209 50,331 (2.2)%Total expenses 68,148 64,706 5.3 % 230,660 194,649 18.5 % Income (loss) from operations 8,743 6,085 43.7 % (6,877) 3,739 (283.9)%Income (loss) from joint ventures (384) 21 (1,928.6)% (1,531) (1,183) 29.4 %Income (loss) before income taxes 8,359 6,106 36.9 % (8,408) 2,556 (429.0)%Income tax expense 1,970 3,222 (38.9)% 496 946 (47.6)%Net income (loss) 6,389 2,884 121.5 % (8,904) 1,610 (653.0)%Preferred stock dividends 819 819 — % 2,431 2,431 — %Accretion of preferred stock issuance costs 21 21 — % 63 63 — %Net income (loss) attributable to common shareholders$5,549 $2,044 171.5 % $(11,398) $(884) 1,189.4 % Basic weighted average income (loss) per common share$0.91 $0.33 $(1.88) $(0.14) Diluted weighted average income (loss) per common share$0.89 $0.32 $(1.88) $(0.14) Basic weighted average common shares outstanding 6,093 6,189 6,058 6,135 Diluted weighted average common shares outstanding 6,270 6,363 6,058 6,135 Unaudited Consolidated Balance Sheets(In thousands, except per share data) September 30, 2022 December 31, 2021ASSETS Cash and cash equivalents $11,914 $14,329Restricted cash 69,473 81,312Equipment held for operating lease, less accumulated depreciation 2,078,775 1,991,368Maintenance rights 21,358 22,511Equipment held for sale 3,853 6,952Receivables, net of allowances 49,544 39,623Spare parts inventory 41,901 50,959Investments 54,283 55,927Property, equipment & furnishings, less accumulated depreciation 34,525 31,327Intangible assets, net 1,144 1,188Notes receivable 82,487 115,456Investment in sales-type leases 6,735 —Other assets 85,976 51,975Total assets $2,541,968 $2,462,927 LIABILITIES, REDEEMABLE PREFERRED STOCK AND SHAREHOLDERS’ EQUITY Liabilities: Accounts payable and accrued expenses $29,493 $26,858Deferred income taxes 130,288 124,332Debt obligations 1,851,650 1,790,264Maintenance reserves 58,022 65,976Security deposits 19,909 19,349Unearned revenue 13,331 10,458Total liabilities 2,102,693 2,037,237 Redeemable preferred stock ($0.01 par value) 49,868 49,805 Shareholders’ equity: Common stock ($0.01 par value) 66 65Paid-in capital in excess of par 17,810 15,401Retained earnings 343,990 355,388Accumulated other comprehensive income, net of tax 27,541 5,031Total shareholders’ equity 389,407 375,885Total liabilities, redeemable preferred stock and shareholders’ equity $2,541,968 $2,462,927 CONTACT:Scott B. Flaherty Chief Financial Officer (561) 349-9989 Data & News supplied by www.cloudquote.io Stock quotes supplied by Barchart Quotes delayed at least 20 minutes. By accessing this page, you agree to the following Privacy Policy and Terms and Conditions.
Willis Lease Finance Corporation Reports Third Quarter Pre-tax Income of $8.4 million By: Willis Lease Finance Corp. via GlobeNewswire November 02, 2022 at 06:00 AM EDT COCONUT CREEK, Fla., Nov. 02, 2022 (GLOBE NEWSWIRE) -- Willis Lease Finance Corporation (NASDAQ: WLFC) today reported third quarter total revenues of $76.9 million and pre-tax earnings of $8.4 million. For the three months ended September 30, 2022, aggregate lease rent and maintenance reserve revenues were $60.0 million and spare parts and equipment sales were $7.0 million. The Company reported increased total revenues in the third quarter when compared to the prior year period, primarily due to an increase in lease rent revenue. “Another strong quarter for our business,” said Austin Willis, the Company’s Chief Executive Officer. “The post COVID recovery is driving growth and profitability, however we remain watchful of macroeconomic and geopolitical risk.” “We have been building the business for years to deliver the programmatic solutions the industry is beginning to recognize as the preferred option in almost all cases,” said Brian R. Hole, President. “We will continue to innovate and support our customers’ efforts to navigate an environment that sprouts new challenges on a daily basis.” Third Quarter 2022 Highlights (at or for the periods ended September 30, 2022, as compared to September 30, 2021, and December 31, 2021): Lease rent revenue increased by $6.6 million, or 20.1%, to $39.5 million in the third quarter of 2022, compared to $32.9 million in the same quarter of 2021, primarily reflecting an increase in the number of engines acquired and placed on lease.Maintenance reserve revenue was $20.4 million in the third quarter of 2022, a decrease of 13.6% compared to $23.7 million in the same quarter of 2021. This decrease was due primarily to a reduction of $14.1 million in long-term maintenance revenue relative to the comparable period in 2021, which was offset by a quarter-over-quarter increase of $11.0 million in short-term maintenance reserve revenue, which is directly influenced by on lease engine flight hours and cycles.Spare parts and equipment sales increased to $7.0 million in the third quarter of 2022, compared to $5.1 million in the third quarter of 2021. The increase in spare parts sales was driven by improved industry wide demand for surplus material compared to the prior year period.Gain on sale of leased equipment was $0.9 million in the third quarter of 2022 reflecting the sale of two engines. Gain on sale of leased equipment was $2.4 million in the third quarter of 2021, reflecting the sale of six engines, one airframe and other parts and equipment.The Company generated $8.4 million of pre-tax income in the third quarter of 2022 compared to $6.1 million in the comparable quarter of 2021.The book value of lease assets we own directly or through our joint ventures, inclusive of our notes receivable, maintenance rights, and investment in sales-type leases, was $2,488.9 million at September 30, 2022. As of September 30, 2022, the Company also managed 333 engines, aircraft and related equipment on behalf of other parties.The Company maintained $298.0 million of undrawn revolver capacity at September 30, 2022.Diluted weighted average income per common share was $0.89 for the third quarter of 2022, compared to $0.32 in the third quarter of 2021.Book value per diluted weighted average common share outstanding increased to $64.28 at September 30, 2022, compared to $59.23 at December 31, 2021. Balance Sheet As of September 30, 2022, $2,078.8 million of equipment held in our operating lease portfolio, $82.5 million notes receivable, $21.4 million of maintenance rights, and $6.7 million investment in sales-type leases, represented 337 engines, twelve aircraft, one marine vessel and other leased parts and equipment. As of December 31, 2021, the Company had $1,991.4 million equipment held for operating lease portfolio, $115.5 million notes receivable, and $22.5 million of maintenance rights, which represented 304 engines, twelve aircraft, one marine vessel and other leased parts and equipment. Willis Lease Finance Corporation Willis Lease Finance Corporation leases large and regional spare commercial aircraft engines, auxiliary power units and aircraft to airlines, aircraft engine manufacturers and maintenance, repair and overhaul providers in 120 countries. These leasing activities are integrated with engine and aircraft trading, engine lease pools and asset management services supported by cutting edge technology through its subsidiary, Willis Asset Management Limited, as well as various end-of-life solutions for engines and aviation materials provided through its subsidiary, Willis Aeronautical Services, Inc. Except for historical information, the matters discussed in this press release contain forward-looking statements that involve risks and uncertainties. Do not unduly rely on forward-looking statements, which give only expectations about the future and are not guarantees. Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update them. Our actual results may differ materially from the results discussed in forward-looking statements. Factors that might cause such a difference include, but are not limited to: the effects on the airline industry and the global economy of events such as war, terrorist activity and the COVID-19 pandemic; changes in oil prices, rising inflation and other disruptions to world markets; trends in the airline industry and our ability to capitalize on those trends, including growth rates of markets and other economic factors; risks associated with owning and leasing jet engines and aircraft; our ability to successfully negotiate equipment purchases, sales and leases, to collect outstanding amounts due and to control costs and expenses; changes in interest rates and availability of capital, both to us and our customers; our ability to continue to meet changing customer demands; regulatory changes affecting airline operations, aircraft maintenance, accounting standards and taxes; the market value of engines and other assets in our portfolio; and risks detailed in the Company’s Annual Report on Form 10-K and other continuing reports filed with the Securities and Exchange Commission. Unaudited Consolidated Statements of Income(In thousands, except per share data) Three Months EndedSeptember 30, Nine Months EndedSeptember 30, 2022 2021 % Change 2022 2021 % ChangeREVENUE Lease rent revenue$39,515 $32,908 20.1 % $114,344 $96,859 18.1 %Maintenance reserve revenue 20,438 23,659 (13.6)% 59,517 60,749 (2.0)%Spare parts and equipment sales 6,966 5,091 36.8 % 20,388 13,226 54.2 %Gain on sale of leased equipment 920 2,440 (62.3)% 3,716 2,440 52.3 %Gain on sale of financial assets — — N/A 3,116 — N/A Asset transition fee — — N/A — 6,256 (100.0)%Other revenue 9,052 6,693 35.2 % 22,702 18,858 20.4 %Total revenue 76,891 70,791 8.6 % 223,783 198,388 12.8 % EXPENSES Depreciation and amortization expense 22,059 21,274 3.7 % 65,480 68,755 (4.8)%Cost of spare parts and equipment sales 4,204 3,921 7.2 % 16,080 11,008 46.1 %Write-down of equipment 654 — N/A 21,849 4,113 431.2 %General and administrative 22,788 18,662 22.1 % 66,820 54,312 23.0 %Technical expense 2,139 2,524 (15.3)% 11,222 6,130 83.1 %Net finance costs: Interest expense 16,304 18,325 (11.0)% 49,209 50,331 (2.2)%Total net finance costs 16,304 18,325 (11.0)% 49,209 50,331 (2.2)%Total expenses 68,148 64,706 5.3 % 230,660 194,649 18.5 % Income (loss) from operations 8,743 6,085 43.7 % (6,877) 3,739 (283.9)%Income (loss) from joint ventures (384) 21 (1,928.6)% (1,531) (1,183) 29.4 %Income (loss) before income taxes 8,359 6,106 36.9 % (8,408) 2,556 (429.0)%Income tax expense 1,970 3,222 (38.9)% 496 946 (47.6)%Net income (loss) 6,389 2,884 121.5 % (8,904) 1,610 (653.0)%Preferred stock dividends 819 819 — % 2,431 2,431 — %Accretion of preferred stock issuance costs 21 21 — % 63 63 — %Net income (loss) attributable to common shareholders$5,549 $2,044 171.5 % $(11,398) $(884) 1,189.4 % Basic weighted average income (loss) per common share$0.91 $0.33 $(1.88) $(0.14) Diluted weighted average income (loss) per common share$0.89 $0.32 $(1.88) $(0.14) Basic weighted average common shares outstanding 6,093 6,189 6,058 6,135 Diluted weighted average common shares outstanding 6,270 6,363 6,058 6,135 Unaudited Consolidated Balance Sheets(In thousands, except per share data) September 30, 2022 December 31, 2021ASSETS Cash and cash equivalents $11,914 $14,329Restricted cash 69,473 81,312Equipment held for operating lease, less accumulated depreciation 2,078,775 1,991,368Maintenance rights 21,358 22,511Equipment held for sale 3,853 6,952Receivables, net of allowances 49,544 39,623Spare parts inventory 41,901 50,959Investments 54,283 55,927Property, equipment & furnishings, less accumulated depreciation 34,525 31,327Intangible assets, net 1,144 1,188Notes receivable 82,487 115,456Investment in sales-type leases 6,735 —Other assets 85,976 51,975Total assets $2,541,968 $2,462,927 LIABILITIES, REDEEMABLE PREFERRED STOCK AND SHAREHOLDERS’ EQUITY Liabilities: Accounts payable and accrued expenses $29,493 $26,858Deferred income taxes 130,288 124,332Debt obligations 1,851,650 1,790,264Maintenance reserves 58,022 65,976Security deposits 19,909 19,349Unearned revenue 13,331 10,458Total liabilities 2,102,693 2,037,237 Redeemable preferred stock ($0.01 par value) 49,868 49,805 Shareholders’ equity: Common stock ($0.01 par value) 66 65Paid-in capital in excess of par 17,810 15,401Retained earnings 343,990 355,388Accumulated other comprehensive income, net of tax 27,541 5,031Total shareholders’ equity 389,407 375,885Total liabilities, redeemable preferred stock and shareholders’ equity $2,541,968 $2,462,927 CONTACT:Scott B. Flaherty Chief Financial Officer (561) 349-9989
COCONUT CREEK, Fla., Nov. 02, 2022 (GLOBE NEWSWIRE) -- Willis Lease Finance Corporation (NASDAQ: WLFC) today reported third quarter total revenues of $76.9 million and pre-tax earnings of $8.4 million. For the three months ended September 30, 2022, aggregate lease rent and maintenance reserve revenues were $60.0 million and spare parts and equipment sales were $7.0 million. The Company reported increased total revenues in the third quarter when compared to the prior year period, primarily due to an increase in lease rent revenue. “Another strong quarter for our business,” said Austin Willis, the Company’s Chief Executive Officer. “The post COVID recovery is driving growth and profitability, however we remain watchful of macroeconomic and geopolitical risk.” “We have been building the business for years to deliver the programmatic solutions the industry is beginning to recognize as the preferred option in almost all cases,” said Brian R. Hole, President. “We will continue to innovate and support our customers’ efforts to navigate an environment that sprouts new challenges on a daily basis.” Third Quarter 2022 Highlights (at or for the periods ended September 30, 2022, as compared to September 30, 2021, and December 31, 2021): Lease rent revenue increased by $6.6 million, or 20.1%, to $39.5 million in the third quarter of 2022, compared to $32.9 million in the same quarter of 2021, primarily reflecting an increase in the number of engines acquired and placed on lease.Maintenance reserve revenue was $20.4 million in the third quarter of 2022, a decrease of 13.6% compared to $23.7 million in the same quarter of 2021. This decrease was due primarily to a reduction of $14.1 million in long-term maintenance revenue relative to the comparable period in 2021, which was offset by a quarter-over-quarter increase of $11.0 million in short-term maintenance reserve revenue, which is directly influenced by on lease engine flight hours and cycles.Spare parts and equipment sales increased to $7.0 million in the third quarter of 2022, compared to $5.1 million in the third quarter of 2021. The increase in spare parts sales was driven by improved industry wide demand for surplus material compared to the prior year period.Gain on sale of leased equipment was $0.9 million in the third quarter of 2022 reflecting the sale of two engines. Gain on sale of leased equipment was $2.4 million in the third quarter of 2021, reflecting the sale of six engines, one airframe and other parts and equipment.The Company generated $8.4 million of pre-tax income in the third quarter of 2022 compared to $6.1 million in the comparable quarter of 2021.The book value of lease assets we own directly or through our joint ventures, inclusive of our notes receivable, maintenance rights, and investment in sales-type leases, was $2,488.9 million at September 30, 2022. As of September 30, 2022, the Company also managed 333 engines, aircraft and related equipment on behalf of other parties.The Company maintained $298.0 million of undrawn revolver capacity at September 30, 2022.Diluted weighted average income per common share was $0.89 for the third quarter of 2022, compared to $0.32 in the third quarter of 2021.Book value per diluted weighted average common share outstanding increased to $64.28 at September 30, 2022, compared to $59.23 at December 31, 2021. Balance Sheet As of September 30, 2022, $2,078.8 million of equipment held in our operating lease portfolio, $82.5 million notes receivable, $21.4 million of maintenance rights, and $6.7 million investment in sales-type leases, represented 337 engines, twelve aircraft, one marine vessel and other leased parts and equipment. As of December 31, 2021, the Company had $1,991.4 million equipment held for operating lease portfolio, $115.5 million notes receivable, and $22.5 million of maintenance rights, which represented 304 engines, twelve aircraft, one marine vessel and other leased parts and equipment. Willis Lease Finance Corporation Willis Lease Finance Corporation leases large and regional spare commercial aircraft engines, auxiliary power units and aircraft to airlines, aircraft engine manufacturers and maintenance, repair and overhaul providers in 120 countries. These leasing activities are integrated with engine and aircraft trading, engine lease pools and asset management services supported by cutting edge technology through its subsidiary, Willis Asset Management Limited, as well as various end-of-life solutions for engines and aviation materials provided through its subsidiary, Willis Aeronautical Services, Inc. Except for historical information, the matters discussed in this press release contain forward-looking statements that involve risks and uncertainties. Do not unduly rely on forward-looking statements, which give only expectations about the future and are not guarantees. Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update them. Our actual results may differ materially from the results discussed in forward-looking statements. Factors that might cause such a difference include, but are not limited to: the effects on the airline industry and the global economy of events such as war, terrorist activity and the COVID-19 pandemic; changes in oil prices, rising inflation and other disruptions to world markets; trends in the airline industry and our ability to capitalize on those trends, including growth rates of markets and other economic factors; risks associated with owning and leasing jet engines and aircraft; our ability to successfully negotiate equipment purchases, sales and leases, to collect outstanding amounts due and to control costs and expenses; changes in interest rates and availability of capital, both to us and our customers; our ability to continue to meet changing customer demands; regulatory changes affecting airline operations, aircraft maintenance, accounting standards and taxes; the market value of engines and other assets in our portfolio; and risks detailed in the Company’s Annual Report on Form 10-K and other continuing reports filed with the Securities and Exchange Commission. Unaudited Consolidated Statements of Income(In thousands, except per share data) Three Months EndedSeptember 30, Nine Months EndedSeptember 30, 2022 2021 % Change 2022 2021 % ChangeREVENUE Lease rent revenue$39,515 $32,908 20.1 % $114,344 $96,859 18.1 %Maintenance reserve revenue 20,438 23,659 (13.6)% 59,517 60,749 (2.0)%Spare parts and equipment sales 6,966 5,091 36.8 % 20,388 13,226 54.2 %Gain on sale of leased equipment 920 2,440 (62.3)% 3,716 2,440 52.3 %Gain on sale of financial assets — — N/A 3,116 — N/A Asset transition fee — — N/A — 6,256 (100.0)%Other revenue 9,052 6,693 35.2 % 22,702 18,858 20.4 %Total revenue 76,891 70,791 8.6 % 223,783 198,388 12.8 % EXPENSES Depreciation and amortization expense 22,059 21,274 3.7 % 65,480 68,755 (4.8)%Cost of spare parts and equipment sales 4,204 3,921 7.2 % 16,080 11,008 46.1 %Write-down of equipment 654 — N/A 21,849 4,113 431.2 %General and administrative 22,788 18,662 22.1 % 66,820 54,312 23.0 %Technical expense 2,139 2,524 (15.3)% 11,222 6,130 83.1 %Net finance costs: Interest expense 16,304 18,325 (11.0)% 49,209 50,331 (2.2)%Total net finance costs 16,304 18,325 (11.0)% 49,209 50,331 (2.2)%Total expenses 68,148 64,706 5.3 % 230,660 194,649 18.5 % Income (loss) from operations 8,743 6,085 43.7 % (6,877) 3,739 (283.9)%Income (loss) from joint ventures (384) 21 (1,928.6)% (1,531) (1,183) 29.4 %Income (loss) before income taxes 8,359 6,106 36.9 % (8,408) 2,556 (429.0)%Income tax expense 1,970 3,222 (38.9)% 496 946 (47.6)%Net income (loss) 6,389 2,884 121.5 % (8,904) 1,610 (653.0)%Preferred stock dividends 819 819 — % 2,431 2,431 — %Accretion of preferred stock issuance costs 21 21 — % 63 63 — %Net income (loss) attributable to common shareholders$5,549 $2,044 171.5 % $(11,398) $(884) 1,189.4 % Basic weighted average income (loss) per common share$0.91 $0.33 $(1.88) $(0.14) Diluted weighted average income (loss) per common share$0.89 $0.32 $(1.88) $(0.14) Basic weighted average common shares outstanding 6,093 6,189 6,058 6,135 Diluted weighted average common shares outstanding 6,270 6,363 6,058 6,135 Unaudited Consolidated Balance Sheets(In thousands, except per share data) September 30, 2022 December 31, 2021ASSETS Cash and cash equivalents $11,914 $14,329Restricted cash 69,473 81,312Equipment held for operating lease, less accumulated depreciation 2,078,775 1,991,368Maintenance rights 21,358 22,511Equipment held for sale 3,853 6,952Receivables, net of allowances 49,544 39,623Spare parts inventory 41,901 50,959Investments 54,283 55,927Property, equipment & furnishings, less accumulated depreciation 34,525 31,327Intangible assets, net 1,144 1,188Notes receivable 82,487 115,456Investment in sales-type leases 6,735 —Other assets 85,976 51,975Total assets $2,541,968 $2,462,927 LIABILITIES, REDEEMABLE PREFERRED STOCK AND SHAREHOLDERS’ EQUITY Liabilities: Accounts payable and accrued expenses $29,493 $26,858Deferred income taxes 130,288 124,332Debt obligations 1,851,650 1,790,264Maintenance reserves 58,022 65,976Security deposits 19,909 19,349Unearned revenue 13,331 10,458Total liabilities 2,102,693 2,037,237 Redeemable preferred stock ($0.01 par value) 49,868 49,805 Shareholders’ equity: Common stock ($0.01 par value) 66 65Paid-in capital in excess of par 17,810 15,401Retained earnings 343,990 355,388Accumulated other comprehensive income, net of tax 27,541 5,031Total shareholders’ equity 389,407 375,885Total liabilities, redeemable preferred stock and shareholders’ equity $2,541,968 $2,462,927 CONTACT:Scott B. Flaherty Chief Financial Officer (561) 349-9989
