Willis Lease Finance Corp (WLFC) 2024 Q2 法說會逐字稿

Good day, and welcome to the Willis Lease Finance Corporation Q2 2024 earnings call. Today's conference is being recorded.

美好的一天，歡迎參加 Willis Lease Finance Corporation 2024 年第二季財報電話會議。今天的會議正在錄製中。

We would like to remind you that during this conference call, management will be making forward-looking statements, including statements regarding our expectations related to financial guidance, outlook for the company and our expected investment in growth initiatives.

我們想提醒您，在本次電話會議期間，管理層將做出前瞻性聲明，包括有關我們對財務指導、公司前景以及我們對增長計劃的預期投資的預期的聲明。

Please note these forward-looking statements are based on current expectations and assumptions, which are subject to risks and uncertainties. These statements reflect WLFC's views only as of today.

請注意，這些前瞻性陳述是基於目前的預期和假設，存在風險和不確定性。這些聲明僅反映 WLFC 截至目前的觀點。

They should not be relied upon as representative of views as of any subsequent date, and WLFC undertakes no obligation to revise or publicly release the results of any revision to these forward-looking statements in light of new information or future events.

不應將其視為任何後續日期的觀點代表，WLFC 不承擔根據新資訊或未來事件修改或公開發布這些前瞻性聲明的任何修改結果的義務。

These statements are subject to a variety of risks and uncertainties that could cause actual results to differ materially from expectations.

這些陳述受到各種風險和不確定性的影響，可能導致實際結果與預期有重大差異。

For further discussion of the material risks and other important factors that would affect WLFC's financial results, please refer to its filings with the SEC, including without limitation, WLFC's most recent quarterly report on Form 10-Q, annual report on Form 10-K and other periodic reports, which are available on the investor relations section of WLFC's website at www.wlfc.global/investorrelations.

如需進一步討論影響 WLFC 財務表現的重大風險和其他重要因素，請參閱其向 SEC 提交的文件，包括但不限於 WLFC 最近的 10-Q 表季度報告、10-K 表年度報告和其他定期報告，可在WLFC 網站www.wlfc.global/investorrelations 的投資者關係部分取得。

At this time, I would like to turn the conference over to Austin Willis. Please go ahead.

這次，我想把會議交給奧斯汀威利斯。請繼續。

Thank you, Ruth. Here with me today is Brian Hole, our President, and Scott Flaherty, our CFO. Firstly, I'd like to thank our employees for another great quarter. They're all working incredibly hard to deliver our results. Next, I'd like to recognize this as our first quarterly earnings call in recent history. We are engaging with the investor community to tell our story. And as you'll see from our earnings, it's a good story.

謝謝你，露絲。今天和我在一起的是我們的總裁 Brian Hole 和我們的財務長 Scott Flaherty。首先，我要感謝我們的員工又一個出色的季度。他們都非常努力地工作以實現我們的成果。接下來，我想將此視為我們近年來第一次的季度財報電話會議。我們正在與投資者社群互動，講述我們的故事。正如您從我們的收益中看到的那樣，這是一個好故事。

Our services enhanced leasing strategy, coupled with favorable market dynamics, is resulting in exceptional performance.

我們的服務強化租賃策略，加上有利的市場動態，帶來了卓越的表現。

We began this year strong with our first quarter pretax earnings, or EBT, of $29.9 million, representing the best quarter we have had to that point. Our second quarter EBT was $57.9 million, nearly double that of Q1. Approximately $14 million of the Q2 earnings were the result of gain on sale, allowing us to recycle capital into new assets, such as the purchase of 10 engines consisting of GTF, LEAP and GEnx.

我們今年開局強勁，第一季稅前利潤 (EBT) 達到 2,990 萬美元，這是我們迄今為止最好的季度。我們第二季的息稅前利潤 (EBT) 為 5,790 萬美元，幾乎是第一季的兩倍。第二季財報中約 1,400 萬美元來自銷售收益，使我們能夠將資本回收到新資產中，例如購買 10 台由 GTF、LEAP 和 GEnx 組成的引擎。

While we remain bullish on the long-term prospects of the current technology engines, such as the CFM56-5B, 7B and V2500, we are taking the opportunity to modernize the portfolio as we have done in the past. I mentioned the gain on sale because I think we need to be thoughtful about annualizing total EBT amounts for the first half, when perhaps more focus should be placed on the core run rate.

雖然我們仍然看好 CFM56-5B、7B 和 V2500 等當前技術引擎的長期前景，但我們正在利用這個機會，像過去一樣對產品組合進行現代化改造。我提到銷售收益是因為我認為我們需要考慮將上半年的 EBT 總額年化，而此時也許應該更專注於核心運行率。

Our exceptional performance is the result of many factors, some macro and some resulting from decisions we have made in the past regarding our portfolio composition, and augmenting our leasing business with services.

我們的卓越表現是多種因素共同作用的結果，其中一些是宏觀因素，另一些則是我們過去就投資組合構成以及透過服務增強租賃業務做出的決策所致。

The supply chain issues in aviation and more specifically amongst engines have resulted in unprecedented demand. Both CFMI and Pratt & Whitney have been and continue to have teething issues with their newest technology engines, primarily the LEAPs and the geared turbofan, that power A320neo and MAX families of aircraft.

航空業，特別是引擎的供應鏈問題導致了前所未有的需求。CFMI 和普惠公司的最新技術發動機（主要是為 A320neo 和 MAX 系列飛機提供動力的 LEAP 發動機和齒輪傳動渦輪風扇發動機）一直且持續存在初期問題。

The teething issues have resulted in engines requiring off-wing maintenance more frequently, which is met with capacity limitations at the maintenance or MRO facilities.

初期問題導致引擎需要更頻繁地進行翼外維護，而維護或 MRO 設施的能力卻受到限制。

At the same time, the OEMs are struggling to produce and repair enough parts to service the new engines they are producing as well as the current technology engines such as the 7B, 5B and V2500. This, in turn, is causing further delays in MROs trying to overhaul engines.

同時，原始設備製造商正在努力生產和維修足夠的零件來服務他們正在生產的新引擎以及 7B、5B 和 V2500 等當前技術的引擎。這反過來又導致 MRO 試圖檢修引擎的進一步延誤。

To compound this, both Airbus and Boeing are pushing the engine OEMs to meet their delivery commitments. Ultimately, this has caused an incredible strain on the supply chain and has resulted in a need to lease in spare engines to keep airplanes flying that would otherwise likely be grounded. As an owner of assets, the supply and demand imbalance has worked to our favor.

更糟的是，空中巴士和波音都在敦促發動機原始設備製造商履行其交付承諾。最終，這給供應鏈造成了難以置信的壓力，並導致需要租賃備用發動機以保持飛機飛行，否則飛機可能會停飛。作為資產所有者，供需失衡對我們有利。

Lease rates have risen considerably, allowing us to keep up with incremental costs due to inflation and interest rates. This paradigm has also allowed us to be more selective regarding the credit quality of our counterparties. The investments we have made in our services businesses over the past decade have proven fruitful.

租賃率大幅上升，使我們能夠跟上通貨膨脹和利率帶來的增量成本。這種模式也使我們能夠對交易對手的信用品質更加挑剔。過去十年我們對服務業務的投資已被證明是卓有成效的。

All of these service businesses allow us to have greater control over the life cycle of the assets we own and manage through parts, maintenance and planning.

所有這些服務業務使我們能夠透過零件、維護和規劃更好地控制我們擁有和管理的資產的生命週期。

And this has provided us with a competitive advantage through the supply chain constrained marketplace. We have a business that provides used serviceable engine parts, making us less reliant on the OEMs. We have two engine repair shops, one in the UK and one in the US, making us less reliant upon external MROs.

這為我們在供應鏈受限的市場中提供了競爭優勢。我們的業務提供二手的可維修引擎零件，這使我們減少了對原始設備製造商的依賴。我們有兩家引擎維修店，一家在英國，一家在美國，這使得我們減少了對外部 MRO 的依賴。

We have a consulting business that accurately forecasts engine maintenance events, allowing us to effectively plan ahead. And we have an airframe-based maintenance facility in the UK that allows us to tear down aircraft when they come back off lease as well as perform C checks to bridge from one lessee to the next.

我們的諮詢業務可以準確預測引擎維護事件，使我們能夠有效地提前規劃。我們在英國擁有一個基於機身的維護設施，使我們能夠在飛機租期結束時對其進行拆卸，並進行 C 檢查，以將一個承租人與下一個承租人聯繫起來。

We have created a platform that can provide airlines liquidity, assets, and reduced maintenance expense. This offering, when combined with the current market dynamic, has proven to be very attractive to customers.

我們創建了一個平台，可以為航空公司提供流動性、資產並減少維護費用。事實證明，該產品與當前的市場動態相結合對客戶非常有吸引力。

I feel that our model will continue to maintain our position as the world's premier engine lessor for the foreseeable future, even as the supply chain normalizes over time.

我認為，在可預見的未來，即使供應鏈隨著時間的推移逐漸正常化，我們的模式仍將繼續保持全球首屈一指的引擎租賃商的地位。

Finally, I'd like to mention that we paid a onetime dividend of $1 per share on our common stock on June 7, and the Board has approved a recurring dividend policy. We are pleased with the performance of the company, and we want to take the opportunity to return capital to our shareholders while supporting growth and leverage targets. With that, I'd like to hand it over to Scott Flaherty, our CFO.

最後，我想提一下，我們在 6 月 7 日支付了每股 1 美元普通股的一次性股息，並且董事會已批准了經常性股息政策。我們對公司的業績感到滿意，我們希望藉此機會向股東返還資本，同時支持成長和槓桿目標。接下來，我想將其交給我們的財務長 Scott Flaherty。

Thank you, Austin, and good afternoon, all.

謝謝你，奧斯汀，大家下午好。

As you can see from our P&L, the company produced record earnings before tax, or EBT, in the second quarter of $57.9 million, this performance was up $38.9 million or 205% from the comparable quarter in 2023 and up $28 million or 94% sequentially from Q1 2024, which also happened to be a record quarter for the company. First half 2024 EBT of $87.8 million is close to our full year record profitability achieved in 2019.

從我們的損益表中可以看出，該公司在第二季度創造了創紀錄的稅前利潤（EBT），達到5,790 萬美元，這一業績比2023 年同期增長了3,890 萬美元，即205%，比上一季成長了2800 萬美元，即94%。2024 年上半年息稅前利潤 (EBT) 為 8,780 萬美元，接近我們 2019 年創下的全年獲利紀錄。

Walking through the P&L, revenues for the quarter were $151.1 million. Significant total revenue drivers were core lease rent revenues of $55.9 million, primarily reflecting the increased total portfolio size of $2.47 billion at quarter end as the company purchased equipment, including capitalized costs totaling $258.8 million in the quarter, only slightly offset by $65.3 million of equipment sales.

縱觀損益表，該季度的營收為 1.511 億美元。重要的總收入驅動因素是核心租賃租金收入為5,590 萬美元，主要反映了公司購買設備導致季度末投資組合總規模增加了24.7 億美元，包括本季總計2.588 億美元的資本成本，僅被6,530 萬美元的設備略微抵消銷售量。

Maintenance revenues for the quarter were $62.9 million, up $27.5 million or 78% from the comparable quarter in 2023.

該季度的維護收入為 6,290 萬美元，比 2023 年同期成長 2,750 萬美元，即 78%。

As you parse through these revenues, you can see that $17 million were long-term maintenance reserves associated with engines coming off lease and the associated release of any maintenance reserve liabilities.

當您分析這些收入時，您可以看到 1700 萬美元是與終止租賃的引擎相關的長期維護準備金以及任何維護準備金負債的相關釋放。

And $45.9 million of these reserves were short-term maintenance reserves, which are highly correlated to the amount of time our portfolio is flying as we generally get paid an hourly and cyclic rate on our lease assets. These short-term maintenance revenues were up $17.3 million, or 60%, when compared to the same period in 2023.

其中 4590 萬美元是短期維護準備金，這與我們投資組合的飛行時間高度相關，因為我們通常按小時和循環利率支付租賃資產。與 2023 年同期相比，這些短期維護收入增加了 1,730 萬美元，即 60%。

Spare parts and equipment sales, $6.2 million in the quarter, produced 12% gross margins while also providing a valuable outlet to recognize residual values on our engine portfolio and provide feedstock for our and our customers' fleet in a tight parts market.

本季備件和設備銷售額為620 萬美元，產生了12% 的毛利率，同時也提供了一個有價值的管道來認識我們的引擎組合的剩餘價值，並在緊張的零件市場中為我們和我們客戶的機隊提供原料。

Gain on sale of lease equipment, a net revenue metric, was $14.4 million in the quarter. As mentioned above, this was associated with $65.3 million of gross equipment sales and compares to $4.5 million of gain in the comparable period of 2023.

本季租賃設備銷售收益（淨收入指標）為 1,440 萬美元。如上所述，這與 6,530 萬美元的設備總銷售額相關，而 2023 年同期的收益為 450 萬美元。

During the quarter, the company sold numerous engines and airframes to various trading partners. Maintenance services, which represents fleet management, engine and aircraft storage, and repair service and revenues related to management of fixed base operator services, was $6.8 million in the quarter, up 16% from the comparable period in 2023.

本季度，該公司向各個貿易夥伴出售了大量引擎和機身。維修服務包括機隊管理、發動機和飛機存儲、維修服務以及與固定基地運營商服務管理相關的收入，本季為 680 萬美元，比 2023 年同期增長 16%。

The company produced 16% gross margins on these sales while also generating significant business opportunities for our core leasing business, enabling us to become more relevant to our customers by being able to offer a broader bundled product solution.

該公司的這些銷售毛利率為 16%，同時也為我們的核心租賃業務創造了巨大的商機，使我們能夠提供更廣泛的捆綁產品解決方案，從而與客戶更加相關。

On the expense side of the equation, depreciation remained relatively flat at $22 million. The company had no impairments in the quarter as we have seen continued strength and appreciation in asset values. G&A was up $3 million from the prior comparable period, mainly driven by increased personnel costs, as we grow our services footprint as well as increases in incentive compensation, which is correlated to the profitability of the overall business.

在費用方面，折舊保持相對穩定，為 2,200 萬美元。該公司本季沒有出現減值，因為我們看到資產價值持續強勁和升值。G＆A 比上一時期增加了 300 萬美元，主要是由於我們服務範圍的擴大以及與整體業務盈利能力相關的激勵性薪酬的增加，導致人員成本增加。

Despite this increase, G&A declined over 6 points as a percentage of total revenue, relative to the prior period, as we leveraged the platform and gained benefits from scale.

儘管有所增長，但由於我們利用了該平台並從規模中獲得了收益，因此與上一時期相比，一般管理費用佔總收入的百分比下降了 6 個百分點以上。

Technical expense, which generally consists of non-capitalized engine repair costs, engine thrust rental fees and other related costs, was $4.5 million in the quarter, down $2.2 million from the comparable period. These expenses tend to vary with the timing of shop visits associated with off-lease engines.

本季技術費用（通常包括非資本化引擎維修費用、引擎推力租賃費和其他相關費用）為 450 萬美元，比去年同期減少 220 萬美元。這些費用往往會隨著與租賃結束的引擎相關的商店訪問時間的變化而變化。

Net finance costs were $24.6 million for the quarter compared to $19.1 million in Q2 2023. The increase in costs were related to an increase in indebtedness as total debt obligations increased from $1.8 billion in Q2 '23 to $1.9 billion in Q2 '24 as well as an increase in the weighted average cost of debt, which inclusive of our interest rate hedge position, was 4.93% at June 30, 2024 compared to 4.08% at June 30, 2023.

該季度的淨財務成本為 2,460 萬美元，而 2023 年第二季為 1,910 萬美元。成本增加與債務增加有關，因為債務總額從 23 年第二季的 18 億美元增加到 24 年第二季的 19 億美元，以及加權平均債務成本的增加，其中包括我們的利率對沖截至2024年6月30日，該比例為4.93%，而2023年6月30日為4.08%。

The company also picked up $3.8 million in ratable earnings from our 50% ownership interest in our Willis Mitsui and CASC Willis joint ventures. As I mentioned earlier, EBT was $57.9 million for the quarter, and the company produced $41.7 million of net income attributable to common shareholders, factoring GAAP taxes and the cost of our preferred equity.

該公司還從 Willis Mitsui 和 CASC Willis 合資企業 50% 的所有權中獲得了 380 萬美元的應納稅所得額。正如我之前提到的，本季 EBT 為 5,790 萬美元，考慮到 GAAP 稅和優先股成本，公司歸屬於普通股股東的淨利潤為 4,170 萬美元。

Diluted weighted average income per share was $6.21 for the quarter, up 207% from the comparable period in 2023. Cash flows from operations for the first half of the year were up 32% to $129.7 million, driven primarily by the growth in pretax earnings as the business enjoyed significant tax depreciation shields, slightly offset by growth in spare parts inventory as the company opportunistically purchased an attractive portfolio of engine parts earlier in the year.

該季度稀釋加權平均每股收益為 6.21 美元，較 2023 年同期成長 207%。今年上半年的營運現金流成長了32%，達到1.297 億美元，這主要是由於稅前收益的成長所推動的，因為該業務享有大量的稅收折舊盾，但由於公司機會性地購買了備件庫存的成長而略有抵消。

On the financing side of the equation, in early May, the company closed a $500 million non-recourse warehouse facility with a small group of banks, where alongside our $500 million credit facility, we will aggregate asset portfolios to be subsequently refinanced in the term market.

在融資方面，5月初，該公司與一小群銀行關閉了一項5 億美元的無追索權倉庫融資，除了我們的5 億美元信貸融資外，我們還將匯總資產投資組合，以便隨後在期限內進行再融資市場。

We continually look to diversify our sources of funding and minimize our overall cost of capital and have been successful accessing numerous markets over the years.

我們不斷尋求資金來源多元化並最大限度地降低整體資本成本，多年來已成功進入眾多市場。

In the second quarter, our Board of Directors declared a onetime special dividend of $1 per share, which was paid to record holders in early June. With our Q2 earnings release, we announced a $0.25 per share regular quarterly dividend, which speaks to the health of the business, provides our shareholders with a moderate current cash yield on their investment, while not degrading the strong cash flow and equity growth characteristics of the business.

第二季度，我們的董事會宣布一次性特別股息每股 1 美元，並在 6 月初向創紀錄的股東支付。在我們發布第二季財報時，我們宣布派發每股0.25 美元的定期季度股息，這說明了業務的健康狀況，為我們的股東提供了適度的當前投資現金收益率，同時不會降低公司強勁的現金流量和股本成長特性。

With respect to leverage, the company has brought balance sheet leverage, defined as total debt obligations to equity, inclusive of our preferred stock, to 3.59 times at Q2 2024 compared to 3.91 times in the comparable period of 2023, when factoring net debt leverages at 3.3 times.

就槓桿率而言，該公司的資產負債表槓桿率（定義為總負債義務與股權之比，包括我們的優先股）在2024 年第二季達到3.59 倍，而2023 年同期為3.91 倍，考慮到淨債務槓桿率為3.3倍。

At times, we maintain higher levels of restricted cash as we retain and reinvest ABS asset sale proceeds, which are held as restricted cash, into new assets. This allows the company to benefit from attractive fixed rate debt pricing for a longer period of time, while maintaining a lower cost of capital for the business.

有時，我們會維持較高水準的限制性現金，因為我們保留 ABS 資產出售收益（作為限制性現金持有）並將其再投資於新資產。這使得該公司能夠在較長時間內受益於有吸引力的固定利率債務定價，同時保持較低的業務資本成本。

We target leverage in the mid-3s, recognizing that leverage may at times slightly tick higher, should we identify purchase opportunities that enhance the characteristics of the overall portfolio.

我們的目標是 3 左右的槓桿，我們認識到，如果我們發現增強整體投資組合特徵的購買機會，槓桿有時可能會略高。

With that, I will now open the call up to questions. And operator, if you could please provide instructions on how participants can ask questions, that would be great.

現在，我將開始電話提問。接線員，如果您能提供有關參與者如何提問的說明，那就太好了。

(Operator Instructions)

（操作員說明）

Adam Seessel, Gravity Capital.

Adam Seessel，重力資本。

Yes, hi, thanks for taking the question, and thanks more generally, Austin, for doing this call, I hope to learn a lot. I would hope, just by way of overview or introduction, you could contrast and compare your business with Fortress.

是的，嗨，感謝您提出問題，更廣泛地感謝奧斯汀，感謝您打這個電話，我希望學到很多東西。我希望，僅透過概述或介紹的方式，您可以將您的業務與 Fortress 進行比較和比較。

They're quite public about what they do, of course, and have regular slide decks and so forth. We don't know much about you in contrast. So I was hoping you could just sort of, as a business model, a business plan, compare and contrast the two publicly traded engine leasing companies for us

當然，他們對自己所做的事情非常公開，並且有定期的幻燈片等等。相比之下，我們對你了解不多。所以我希望你能作為一種商業模式、商業計劃，為我們比較和對比這兩家上市的發動機租賃公司

Sure. Thank you for your question, Adam. So I'll refrain from really speaking to Fortress, but I will tell you a bit about ourselves. So we're about 50% short term and 50% long term in the leasing market. And I mention that because the short-term nature of our business allows us to get very active in the programmatic side of the business.

當然。謝謝你的提問，亞當。所以我不會真正與 Fortress 交談，但我會告訴你一些關於我們自己的事情。所以我們在租賃市場上大約有 50% 是短期的，50% 是長期的。我提到這一點是因為我們業務的短期性質使我們能夠在業務的程序化方面非常活躍。

So that's when we do programs like ConstantThrust, where we'll do a sale leaseback on a portfolio of aircraft or engines. And when one of those engines becomes unserviceable, we'll exchange it for another one of our engines that we have in our portfolio.

因此，我們將在那時開展像 ConstantThrust 這樣的項目，我們將對飛機或發動機的投資組合進行售後回租。當其中一台引擎無法使用時，我們會將其更換為我們產品組合中的另一台引擎。

And it's really that short-term leasing capability that gives us the confidence that we'll have availability of assets at any given time to be able to fill that demand.

事實上，短期租賃能力讓我們有信心在任何特定時間都有可用的資產來滿足這項需求。

So I mentioned that particular product because it really draws on different elements of our business. So our two 145 repair stations, they enable us to repair engines more quickly and get them out on lease to the customers.

所以我提到了這個特定的產品，因為它確實利用了我們業務的不同元素。因此，我們的兩個 145 維修站使我們能夠更快地維修引擎並將其出租給客戶。

And they also draw from materials from our parts business, WASI. And that business buys engines or gets engines from our portfolio, disassembles them and sells the pieces.

他們還從我們的零件業務 WASI 中獲取材料。該企業購買發動機或從我們的產品組合中獲取發動機，將其拆卸並出售這些部件。

So between those two, we're able to get engines out the door much faster than we typically would from a third-party MRO and more inexpensively because we're reusing materials that are coming either from our engines or third-party engines.

因此，在這兩者之間，我們能夠比通常從第三方 MRO 更快地交付發動機，而且成本更低，因為我們重複使用來自我們的發動機或第三方發動機的材料。

And then we also draw from expertise from our consulting business, WAML, that does pretty accurate forecasting to tell you when engines will become unserviceable. So really, we're a combination of a handful of services businesses and a leasing company that enable us to provide really an enhanced leasing product to the customer, where we can save them money on maintenance as well as from a planning perspective.

然後，我們也利用諮詢業務 WAML 的專業知識，該業務可以進行相當準確的預測，告訴您引擎何時將無法使用。事實上，我們是少數服務企業和租賃公司的結合體，使我們能夠向客戶提供真正增強的租賃產品，從規劃的角度來看，我們可以為他們節省維護費用。

I see. That's helpful. If I could follow up, they always talk about what Fortress does about their MRO business and how they have a better mousetrap that saves customers time and money. Are you effective, and I'm just, I don't know much about the engine leasing business or the MRO business. Are you effectively saying that you have the same mousetrap?

我懂了。這很有幫助。如果我能跟進，他們總是談論 Fortress 在 MRO 業務方面做了什麼，以及他們如何擁有更好的捕鼠器來節省客戶的時間和金錢。你效率高嗎，我只是，我對引擎租賃業務或MRO業務不太了解。你其實是在說你有同樣的捕鼠器嗎？

Again, I don't really want to comment to them specifically. I think there probably are similarities. We focus on the maintenance element because that's the biggest driver of expense, and we have done for years. We've been providing these products for kind of over 10 years now. So this is nothing new or novel for us.

再說一次，我真的不想對他們具體發表評論。我認為可能有相似之處。我們專注於維護元素，因為這是支出的最大驅動因素，而且我們多年來一直這樣做。我們提供這些產品已有十多年了。所以這對我們來說不是什麼新鮮事。

Thanks so much.

非常感謝。

Certainly.

當然。

(Operator Instructions) Will Waller, M3F.

（操作員說明）Will Waller，M3F。

Air Lease, in their presentation and press release yesterday, said they have a lot of value in their order book, given all of the backlogs with the manufacturing of engines and aircraft and so on. You guys have quite a large order book, and it seems like you put in orders at pretty ideal times over the last four years or so.

Air Lease 在昨天的演示和新聞稿中表示，考慮到發動機和飛機等製造領域的所有積壓訂單，他們的訂單具有很大價值。你們的訂單簿相當大，而且在過去四年左右的時間裡，你們似乎在非常理想的時間下了訂單。

I was just wondering if you could kind of comment on the status of your order book and if you feel the same way.

我只是想知道您是否可以對您的訂單狀態發表評論，以及您是否有相同的感覺。

Yes. I think there's similarities to comparing our order book to the aircraft lessors, but there's certainly differences as well. We work a bit more closely with the OEMs to provide aftermarket service to their customers. We do have a strong order book. And we've taken delivery of a number of engines this year, and we're on course to take delivery of an additional amount and the same thing over the next few years.

是的。我認為將我們的訂單與飛機租賃商進行比較有相似之處，但也肯定存在差異。我們與原始設備製造商更緊密地合作，為其客戶提供售後服務。我們確實擁有強勁的訂單。今年我們已經交付了許多發動機，並且我們計劃在未來幾年內交付更多數量的發動機。

So that constitutes a decent proportion of our pipeline going forward. But we also solicit a lot of transactions from the marketplace as well.

因此，這在我們未來的管道中佔據了相當大的比例。但我們也從市場上徵求大量交易。

Okay, great. And then if I could just ask one other question, and it might have been partially answered in that first question. But there's been a lot of, it seems, like a trend towards the use of modules to save time and money with engine overhauls.

好的，太好了。然後，如果我可以問另一個問題，第一個問題可能已經得到部分答案。但似乎有許多趨勢是使用模組來節省引擎大修的時間和金錢。

Could you kind of talk about your views on the use of modules in engine overhauls and then kind of talk to if that's a product that you're offering?

您能否談談您對在引擎大修中使用模組的看法，然後談談這是否是您提供的產品？

Sure. So we will do module swaps from time to time. We've done, I think, 20 in this past year, but that really isn't a core focus for us. We look at a variety of different avenues to manage maintenance costs most effectively.

當然。所以我們會時不時地進行模組交換。我認為，去年我們已經完成了 20 個項目，但這確實不是我們的核心關注點。我們尋找各種不同的途徑來最有效地管理維護成本。

The reality is it's very hard to get high-pressure turbine, HPT modules, and that's going to continue for the foreseeable future. So each engine is different. In some cases, it makes sense to do module swaps. In some cases, it doesn't.

現實情況是，取得高壓渦輪機、HPT 模組非常困難，而且在可預見的未來，這種情況仍將持續下去。所以每個引擎都是不同的。在某些情況下，進行模組交換是有意義的。在某些情況下，事實並非如此。

Great. Thanks a lot.

偉大的。多謝。

You bet.

你打賭。

Adam Seessel, Gravity Capital.

Adam Seessel，重力資本。

Yes, thanks. I understand you don't want to compare and contrast with Fortress. But one thing that stuck me when I spoke with both companies is they have not bought any of the next-gen engines. They have not bought any LEAP and not GTFs, but you guys have quite a bit of both. What's your rationale for buying the new engines, especially when the GTF is essentially the [service] in the 1100 on the narrow-body?

是的，謝謝。我知道您不想與 Fortress 進行比較和對比。但當我與兩家公司交談時，讓我困惑的一件事是他們沒有購買任何下一代引擎。他們沒有買任何 LEAP 也沒有買 GTF，但你們兩者都有不少。您購買新引擎的理由是什麼，特別是當 GTF 本質上是窄體 1100 的[服務]時？

Thanks, Adam. So for us, it's a natural progression for just modernizing our portfolio. If you look back historically, 10, 20 years ago, you'd see the majority of our portfolio was CFM56-3 and JT8 engines. So this is normal course for us.

謝謝，亞當。因此，對我們來說，這是我們產品組合現代化的自然進展。如果您回顧 10、20 年前的歷史，您會發現我們的大部分產品組合都是 CFM56-3 和 JT8 引擎。所以這對我們來說是正常的過程。

We feel that the GTF and the LEAP-1A and LEAP-1B will be the engines that drive the future of aviation for the 737 MAX and the A320neo. So that's the long-term view. In the short term, a lot of the maintenance issues or teething issues that have plagued those engines really are causing demand events for us.

我們認為 GTF 以及 LEAP-1A 和 LEAP-1B 將成為推動 737 MAX 和 A320neo 航空業未來發展的引擎。這就是長期的觀點。從短期來看，困擾這些引擎的許多維護問題或初期問題確實為我們帶來了需求事件。

So every time an engine is removed, it creates an opportunity to put another engine on lease. So we see it as both a good short-term and a good long-term investment.

因此，每次拆除一台引擎時，都會創造一個租賃另一台引擎的機會。因此，我們認為它既是一項良好的短期投資，也是一項良好的長期投資。

Andrew Del Medico, Phase 2 Partners.

安德魯·德爾·梅迪科，第二階段合作夥伴。

Hey guys. Thanks for taking the time. Just on the gain on sales, you mentioned the positive operating backdrop that you're experiencing. Can you just talk to kind of the sustainability that you see on the gain on sale of the engines? How you guys are thinking about the value of the portfolio as some of these come off lease? And kind of what you're looking at in the operating environment that's leading to this positive backdrop?

嘿夥計們。感謝您抽出時間。就銷售成長而言，您提到了您正在經歷的積極的營運背景。您能談談您在引擎銷售收益中看到的可持續性嗎？當其中一些項目到期時，你們如何看待投資組合的價值？您在營運環境中看到了什麼導致了這種積極的背景？

Sure. Thanks, Andrew. We did an investor information call recently, and I think there was some publications that covered this as well. Our portfolio is fairly undervalued from a book value relative to market value basis. And I think we're seeing that reflected in the gain on sale.

當然。謝謝，安德魯。我們最近舉行了一次投資者資訊電話會議，我認為也有一些出版物涵蓋了這一點。我們的投資組合相對於市場價值的帳面價值被相當低估。我認為我們看到了這一點反映在銷售收益上。

Gain on sale for assets right now is probably a bit higher than it has been historically. But we generally have a run rate in that sort of mid low teens for gain on sale. And once things normalize at some point, I expect it to be back in that neighborhood.

目前資產出售收益可能略高於歷史水準。但我們的銷售收益通常在中低十幾歲左右。一旦事情在某個時刻恢復正常，我預計它會回到那個社區。

Great, thanks. I guess also as follow-up, on some of the assets that have been tied up in Russia, and obviously, there's a lot of litigation, et cetera, going on around that, do you have any color that you could give us on kind of when you would expect some ruling or some type of recovery, whatever potential there might be, on those?

太好了，謝謝。我想，作為後續行動，關於在俄羅斯被捆綁的一些資產，顯然，有很多訴訟等等，圍繞這個問題正在進行，你有什麼可以給我們的實物顏色嗎？出一些裁決或某種類型的復甦，無論它們有什麼潛力？

I wish I could. No, we're pursuing our rights to that to the extent that we can. I really can't get into too much detail because we're very much in discussion with the insurance companies. What I can say is we were very proactive early on in the war between Russia and Ukraine, and we were able to get some assets out. And frankly, we've been very fortunate in the low value of assets that we had confiscated in Russia relative to a lot of competitors.

我希望我能。不，我們正在盡我們所能地追求我們的權利。我真的無法透露太多細節，因為我們正在與保險公司進行大量討論。我能說的是，我們在俄羅斯和烏克蘭之間的戰爭初期就非常積極主動，我們能夠撤出一些資產。坦白說，我們非常幸運，因為我們在俄羅斯沒收的資產相對於許多競爭對手來說價值較低。

We do still feel strongly that we will recover that value, but that's just a matter of when.

我們仍然強烈地認為我們將恢復這一價值，但這只是時間問題。

Great, thanks. And then just as a reminder, how much do you have tied up? And if you were to recover those, how big of a gain would that be for the portfolio?

太好了，謝謝。然後提醒一下，你綁了多少東西？如果你要收回這些，這會為投資組合帶來多大的收益？

I won't comment on that now, but if you look back at our previous disclosures, I think you can find that historically.

我現在不會對此發表評論，但如果你回顧一下我們之前的披露，我認為你可以從歷史上發現這一點。

Okay, perfect. Thank you.

好的，完美。謝謝。

Thanks.

謝謝。

There are no other questions over the phone lines.

電話線路上沒有其他問題。

Yes. Operator, I think we'll switch to a couple of questions that we have. We have one question here from MUFG, and the question is congratulating us. Thank you on the quarter. And the question, how do we see the rest of the year in the context of some of the signs of overcapacity in the US domestic or the European market, and what are the potential risk factors you see for the second half of the year?

是的。接線員，我想我們將轉向幾個問題。我們有一個來自三菱日聯金融集團的問題，問題是祝賀我們。謝謝你的季度。問題是，在美國國內或歐洲市場出現一些產能過剩跡象的背景下，我們如何看待今年剩餘時間？

Thanks, Scott. I'll take this initially, if I can. So obviously, we've read the same headlines that you guys have read with regard to the overcapacity issues. I really can't opine on what trend that may or may not mean. I think part of it is due to the US and Europe emerging more quickly than Asia Pac and other countries from the pandemic.

謝謝，斯科特。如果可以的話，我會先接受這個。顯然，我們和你們讀過的關於產能過剩問題的頭條新聞是一樣的。我真的無法評論這可能意味著什麼趨勢，也可能不代表什麼。我認為部分原因是美國和歐洲比亞太地區和其他國家更快擺脫疫情影響。

But more importantly, I'd like to focus on what we have seen in the past when there are difficulties among the airlines and they're cash strapped. They tend to avoid overhauling engines. So when they have an engine become unserviceable, they'll remove it from wing, park it and lease in engines from us. And this is reflected in our earnings post 9/11, post economic crisis. There is an element of counter cyclicality in our business.

但更重要的是，我想專注於過去航空公司遇到困難且現金短缺時所看到的情況。他們傾向於避免檢修引擎。因此，當他們的引擎無法使用時，他們會將其從機翼上拆下，停放並從我們那裡租用引擎。這反映在我們 911、經濟危機後的獲利。我們的業務存在反週期性因素。

So I think it's worth noting that. And then was there a second part to that question, Scott?

所以我認為值得注意的是。史考特，這個問題還有第二部分嗎？

No, I think that's it. I think that was the key question, Austin, there. I think, Austin, the next question we have is within your maintenance reserves -- and this question comes again from Phase 2 Partners -- within your maintenance reserve revenue, how sustainable is the long-term portion of it? I realize that it relates to when leases come off lease, but any additional color would be appreciated.

不，我想就是這樣。我認為這是關鍵問題，奧斯汀。我想，奧斯汀，我們的下一個問題是在你們的維護儲備金中——這個問題又來自第二階段的合作夥伴——在你們的維護儲備金收入中，其長期部分的可持續性如何？我意識到這與租約何時結束有關，但任何額外的顏色將不勝感激。

Sure. So the long-term element of maintenance reserves occur when we have an engine come off of long-term lease. And by their nature, they tend to be lumpy. When we have a lot of engines extending, as is the case now and what we expect in the near future, I would expect it to be a bit lower.

當然。因此，當我們的引擎不再長期租賃時，維護儲備的長期因素就會出現。就其本質而言，它們往往是塊狀的。當我們有很多引擎擴展時，就像現在的情況以及我們在不久的將來所期望的那樣，我預計它會低一些。

Now that being said, I do recognize we have significant long-term maintenance reserve recognition in the quarter, and that was due to a few circumstances that were somewhat outside of the normal.

話雖這麼說，我確實認識到我們在本季度有大量的長期維護準備金確認，這是由於一些有點超出正常情況的情況造成的。

Scott, if you'd like to add any color to that, please do so.

斯科特，如果你想為此添加任何顏色，請這樣做。

Yes. No, Austin. I think you've got that right. I agree with that. I think the last question that we have is coming from M3, Jason Stock over at M3. The company has historically done an excellent job repurchasing shares in the past via both open market, private transactions, and tender offers.

是的。不，奧斯汀。我認為你說得對。我同意這一點。我認為我們的最後一個問題來自 M3，M3 的 Jason Stock。該公司過去在透過公開市場、私人交易和要約收購回購股票方面表現出色。

With how inexpensive your shares still trade on both book value and now earnings, what are your views on repurchases going forward?

鑑於您的股票交易的帳面價值和當前收益仍然非常便宜，您對未來的回購有何看法？

Well, I appreciate your view on us being inexpensive. Beyond that, I can't really speak to any specific strategy on repurchasing shares in the foreseeable future.

嗯，我很欣賞你對我們便宜的看法。除此之外，我無法真正談論在可預見的未來回購股票的任何具體策略。

Yes, I guess, I would add. Fortunately, the shares are not as inexpensive as they were some time ago. Operator, I think that was the last question that we had in the queue. So we want to thank everybody for joining the call. And we look forward to speaking to everybody in the next quarter. So thanks for your time.

是的，我想，我會補充一下。幸運的是，這些股票並不像前段時間那麼便宜。接線員，我想這是我們隊列中的最後一個問題。因此，我們要感謝大家加入此次電話會議。我們期待在下個季度與所有人交談。謝謝您的寶貴時間。

Thank you, everybody. I appreciate you joining us today.

謝謝大家。我很感謝你今天加入我們。

This does conclude today's conference call. Thank you for your participation. You may now disconnect.

今天的電話會議到此結束。感謝您的參與。您現在可以斷開連線。