(Source: PrimeNewswire)NOVATO, Calif., Nov. 9, 2009 (GLOBE NEWSWIRE) -- Willis Lease Finance Corporation (Nasdaq:WLFC), a leading lessor of commercial jet engines, today reported strong third quarter earnings and year-to-date profitability fueled by growth in its lease portfolio, higher maintenance reserve revenues and lower borrowing costs. Third quarter 2009 net income available to common shareholders totaled $8.5 million, or $0.94 per diluted common share, compared to $4.2 million, or $0.47 per diluted share in the second quarter of 2009 and $9.9 million, or $1.14 per diluted common share, in the like quarter a year ago.

Net income available to common shareholders in the first nine months of 2009 totaled $19.0 million, or $2.13 per diluted common share, compared to $19.9 million, or $2.28 per diluted common share, in the first nine months of 2008.

Third Quarter and Year-to-Date 2009 Highlights (at or for the periods ended Sept. 30, 2009 compared to Sept. 30, 2008)

 -- The lease portfolio increased 20.2% from a year ago to $921.0
    million, with four engines worth $39.9 million added in the last
    week of the quarter, having no impact on Q3-09 revenues. A
    portfolio of ten engines with a book value of $51.9 million
    contributed $1.6 million to revenues in the third quarter of 2008
    but was excluded from the quarter end portfolio value as it was
    sold just prior to quarter end in September 2008.
 -- Year-to-date operating cash flows increased 87% to $70.7 million.
 -- Third quarter average utilization was 89% compared to 91% a year
    ago.
 -- Maintenance reserve revenues contributed $17.7 million to third
    quarter revenue and $33.1 million year-to-date.
 -- There were no gains from sales of engines in the quarter, and year
    to date gain on sale was $0.7 million.  In 2008, gain on sale
    contributed $11.6 million to third quarter revenues due to the
    sale of eleven engines and contributed $12.8 million to year-to-
    date revenues.
 -- Year-to-date total revenue was down 3.3% primarily due to lower
    gains from sale of equipment in the current period and a $1.0
    million settlement that boosted other income a year ago.
 -- Year-to-date total net finance costs fell 8.4% reflecting lower
    interest costs tied to LIBOR and a second quarter gain on
    extinguishment of debt of $0.9 million generated from debt
    repurchase.
 -- Book value per common share was $20.15 compared to $18.68 a year
    ago.

"As was the case in the third quarter a year ago, our third quarter 2009 results have proved to be one of the best in our 30-year history," said Charles F. Willis, President and CEO. "Our results in the quarter a year ago were bolstered by the sale of eleven engines that contributed a gain of $11.6 million, which was not the case in the current quarter as no engines were sold in the period. Instead, our current quarter results were driven by strong revenues resulting from our growing engine portfolio and healthy maintenance reserve revenues combined with lower borrowing costs."

"We continue to support airlines under stress in a highly competitive market place, as they reduce capacity to meet the decline in passenger traffic," Willis noted. "Our ability to market our growing portfolio of new generation narrow body aircraft engines has been aided by our pooling programs. In particular, the North American CFM56-7B engine Lease Pool continues to support the growth in our share of the US market. In the third quarter, US airlines accounted for 28% of our lease rent revenues compared to 22% in the third quarter a year ago."

In the past two years, we have purchased more than $400 million of engines, significantly increasing our portfolio of fuel-efficient, new generation models," said Donald A. Nunemaker, Executive Vice President & General Manager-Leasing.

"With an average age of 6 years, our engine portfolio is one of the youngest in the industry," continued Nunemaker. "While we are seeing some pressure on lease rates, particularly for older engine types, demand has remained stable for leased engines as our airline customers continue to conserve capital and reduce expenses by delaying new engine purchases and deferring major overhaul expenditures. Demand for purchase/leaseback transactions remains strong. We expect that this trend will continue and will pursue transactions on an opportunistic basis."

"We continue to benefit from historically low interest rates, which reduced finance costs this year and boosted operating cash flow," said Brad Forsyth, Chief Financial Officer. "We are actively managing our exposure to potential rising interest rates in the future, through interest rate swap contracts.