Business
Willis Lease Finance Corporation Reports First Quarter Pre-tax Loss of $27.7 Million
COCONUT CREEK, Fla., May 09, 2022 (GLOBE NEWSWIRE) -- Willis Lease Finance Corporation (NASDAQ: WLFC) today reported first quarter total revenues of $68.8
About this update from Willis Lease Finance Corporation
[{"type":"text","content":"COCONUT CREEK, Fla., May 09, 2022 (GLOBE NEWSWIRE) -- Willis Lease Finance Corporation (NASDAQ: WLFC) today reported first quarter total revenues of $68.8 million. For the three months ended March 31, 2022, aggregate lease rent and maintenance reserve revenues were $53.0 million and spare parts and equipment sales were $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 $20.4 million impairment on two engines located in Russia, which are expected to be unrecoverable, and wrote down $0.9 million of receivables associated with Russian leases. Furthermore, through its joint venture Willis Mitsui & Company Engine Support Limited (“WMES”), the Company recorded an additional net impairment of $2.4 million, presented through loss from joint ventures, for one engine located in Russia, which is also expected to be unrecoverable. “The recent events in Ukraine are tragic, and have impacted us commercially through asset seizures in Russia,” said Austin C. Willis, CEO. “However, proactive measures were taken early on to reduce exposure and recover assets, helping to mitigate potentially greater impairments.” “One-time book losses from the impairment of assets in Russia overwhelmed our income statement in the first quarter, but the Company’s core operating business has continued to improve as recovery from the pandemic continues,” said Brian R. Hole, President. “Our customers are flying, in some cases, above pre-pandemic levels and we are working hard to make sure they have whatever support they need to continue that trend” First Quarter 2022 Highlights (at or for the periods ended March 31, 2022, as compared to March 31, 2021, and December 31, 2021): Lease rent revenue increased by $6.6 million, or 21.0%, to $38.1 million in the first quarter of 2022, compared to $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 $0.3 million reduction in lease rent revenue associated with Russian leases which was determined to be unco...