November 6, 2012

Willis Lease Finance reports third quarter 2012 results

Willis Lease Finance Corporation reported that following a $15.4m charge for extinguishment of debt and derivatives termination, it lost $8.0m in the third quarter of 2012. In the second quarter of 2012, net income available to common shareholders was $2.4m and $1.5m in the third quarter a year ago. In the first nine months of 2012, the net loss was $3.0m compared to earnings of $8.5m in the first nine months of 2011. Willis Lease completed a $390m ABS offering of senior secured notes on September 17, 2012, resulting in a $10.1m charge related to the termination of interest rate swaps used to hedge the prior ABS floating rate debt that was refinanced and a $5.3m non-cash charge to write off unamortized debt issuance costs and unamortized note discount. Lease portfolio increased 1.7% to $976.6m from $960.5m a year ago, with one engine purchased and three engines sold in the current quarter. Total revenues fell 5% to $37.5m from $39.5m a year ago, reflecting lower average portfolio utilization, and lower gains from sale of equipment. Lease rent revenues decreased 13% to $23.0m compared to $26.5m a year ago. Maintenance reserve revenues increased 19% to $10.7m, compared to $9.0m a year ago. The revolving credit facility was upsized by $85m in the third quarter with three new banks joining the lending group, increasing available liquidity to $159m at quarter end, up from $105m a year ago.



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