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    William Waller • M3

    William Waller's questions to Willis Lease Finance Corp (WLFC) leadership

    William Waller's questions to Willis Lease Finance Corp (WLFC) leadership • Q1 2025

    Question

    William Waller asked for clarification on the utilization rate's progression during the quarter, the timing of a $7 million maintenance revenue recognition, the mechanics of the maintenance reserve liability, and the current mix of long-term versus short-term leases.

    Answer

    CFO Scott Flaherty confirmed that the utilization rate increased from 76.7% to 86.4% during the quarter as newly acquired GTF engines were progressively placed on lease, some late in March. He also clarified the $7 million maintenance revenue was recognized in Q1 with cash received post-quarter end. President Austin Willis added that the lease mix remains around 50% short-term and 50% long-term, which is a key strategic differentiator.

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    William Waller's questions to Willis Lease Finance Corp (WLFC) leadership • Q4 2024

    Question

    William Waller asked about the long-term lease portfolio, specifically if lease extension rates are above average, how maintenance reserve income is recognized on extended leases, and if the portfolio mix between long-term and short-term leases remains consistent.

    Answer

    President Austin Willis confirmed that lease extension rates are currently higher than historical averages, which provides an opportunity to reprice assets. He clarified that maintenance reserve income is generally deferred until the asset is ultimately returned, not upon extension. While the long-term/short-term mix is fairly consistent, he highlighted that the portfolio mix of future technology assets grew to 53% by year-end.

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    William Waller's questions to Willis Lease Finance Corp (WLFC) leadership • Q3 2024

    Question

    Will Waller from M3 asked for the average equipment utilization rate in Q3 and questioned why it remains in the low 80s, below historical highs, despite strong market demand. He also inquired about the size and delivery timeline of the company's engine order book.

    Answer

    Executive Austin Willis reported the Q3 utilization rate was just under 83%. He explained this figure is influenced by several factors, including the time it takes to place newly acquired assets on lease, holding assets for large programmatic deals, and the normal churn of assets undergoing maintenance. Willis also stated the current engine order book is valued at approximately $400 million, with deliveries scheduled through 2027.

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