“We continue to deliver strong cash flow and profits during a significant growth period for the Company,” said Charles F. Willis, Chairman and CEO. “Our focus is on growing and shaping our portfolio, and the business generally, to ensure that we have the right assets and services in the right places, at the right time, delivering maximum value for our customers.”
“The industry continues to see high demand for lease engines, parts and services and we are poised to deliver on each because of the strength and depth of our asset portfolio and our Platform,” said Brian R. Hole, President. “We believe we are leading a fundamental industry change as airlines realize it is more efficient to access our Platform of assets and services on demand than to acquire a large number of perpetually under-utilized spare engines.”
Second Quarter 2018 Highlights (at or for the periods ended June 30, 2018, as compared to June 30, 2017, and December 31, 2017):
Total revenue grew by 9.5% to $74.3 million in the second quarter of 2018, compared to $67.8 million in the prior year period.
Lease rent revenue achieved a record quarterly high of $43.1 million in the second quarter of 2018; 37.5% growth from $31.3 million in the same quarter of 2017.
Quarterly maintenance reserve revenue increased by $10.2 million over the prior year period due to an increase in long-term lease transition relative to the prior year period.
Spare parts and equipment sales decreased $12.3 million versus the second quarter of 2017 as there were no equipment sales in the current period.
General and administrative expenses increased, primarily due to costs associated with relocating and transitioning employees in our various offices and hiring to support our broadening Platform.
Utilization at the end of the second quarter of 2018 was 88% compared to 89% at 2017 year-end. Utilization was negatively impacted by delivery of new, off lease engines over the period.
Our equipment lease portfolio grew 14.9% to $1.542 billion, from $1.343 billion at December 31, 2017, net of asset sales and depreciation expense. The book value of lease assets we own directly or through our joint ventures was $1.9 billion at June 30, 2018.
The Company purchased $104.5 million of equipment in the second quarter of 2018, compared to $76.9 million in the second quarter of 2017.
The Company maintained $224 million of undrawn revolver capacity at June 30, 2018.
Tangible book value per diluted weighted average common share outstanding increased to $43.33 at June 30, 2018, compared to $41.63 at December 31, 2017.
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