Willis Lease Finance Corp (WLFC) 2024 Q3 法說會逐字稿

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

大家好，歡迎參加威利斯租賃金融公司 2024 年第三季財報電話會議。今天的會議正在錄製。我們想提醒您，在本次電話會議期間，管理層將做出前瞻性陳述，包括有關財務指導、公司前景以及我們預期的投資和成長計畫的預期陳述。

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

請注意，這些前瞻性陳述是基於目前的預期和假設，這些預期和假設存在風險和不確定性。這些聲明僅反映 WLFC 截至今天的觀點。它們不應被視為代表任何後續日期的觀點，並且 WLFC 不承擔根據新資訊或未來事件修改或公開發布對這些前瞻性陳述的任何修訂結果的義務。

These statements are subject to a variety of risks and uncertainties that could cause actual results to differ materially from expectations. For further discussion of the material risks and other important factors that could affect WLFC's financial results. Please refer to its filings with the SEC including without limitation FLC's most recent quarterly report on Form10-Q, the Annual Report on Form 10-K and other periodic reports which are available on the investor relations section of WLFC's website at httpf://www.wlfc.global/investor-relations.

這些聲明受各種風險和不確定因素的影響，可能導致實際結果與預期有重大差異。進一步討論可能影響WLFC財務表現的重大風險和其他重要因素。請參閱其向美國證券交易委員會提交的文件，包括但不限於FLC 最新的Form10-Q 季度報告、Form 10-K 年度報告和其他定期報告，這些報告可在WLFC 網站的投資者關係部分查閱，網址為httpf://www .wlfc.global/投資者關係。

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

現在，我想將會議交給執行長 Austin Willis。請繼續。

Thank you. Here with me today is Scott Flaherty, our CFO; and Brian Hole, our President. Firstly, I'd like to thank our employees for delivering another strong quarter, and in particular, I'd like to recognize our legal department, finance department, and those others who have been involved in our capital markets transactions over the past two years from completing our eighth A BS last year to establishing what we understand to be the industry's first ever engine warehouse and closing the first Engine Galco and more recently expanding our revolver to $1 billion and extending and expanding the company's preferred stock with an increased investment from the Development Bank of Japan.

謝謝。今天和我一起在場的是我們的財務長 Scott Flaherty；以及我們的總裁 Brian Hole。首先，我要感謝我們的員工又一個強勁的季度，特別是我們的法律部門、財務部門以及過去兩年參與我們資本市場交易的其他人員從去年完成第八個A BS 到建立我們所理解的業內首個引擎倉庫，關閉首個Engine Galco，以及最近將我們的循環信貸額度擴大到10 億美元，並透過增加來自日本政策投資銀行。

I would also like to announce our second quarterly dividend of $0.25 per share to be paid on November 21, 2024 to holders as of November 12, 2024. Our core leasing business is performing extremely well and continues to show improvement relative to prior quarters.

我還想宣布我們將於 2024 年 11 月 21 日向截至 2024 年 11 月 12 日的持有人派發第二次季度股息，每股 0.25 美元。我們的核心租賃業務表現非常出色，並且相對於前幾季持續呈現改善。

Our Q3 pretax earnings or EBT of approximately $35 million is our second highest on record and represents our highest when you adjust for long term maintenance reserves which tend to run lower when lessees opt to extend leases rather than return engines.

我們第三季的稅前收益或EBT 約為3500 萬美元，是有史以來的第二高水平，並且當我們調整長期維護儲備時也是我們的最高水平，當承租人選擇延長租期而不是退回發動機時，長期維護儲備往往會降低。

Demand for engines remains robust. Little has changed from the second quarter in the supply chain. Issues continue to affect the OEM's ability to produce new assets and parts and the MROs continue to struggle to repair engines in a timely manner. This continues to bode well for our utilization and rates. The Boeing strike is exacerbating this problem and is resulting in more of our customers seeking to extend the lives of their current generation narrowbody aircraft.

引擎的需求依然強勁。與第二季相比，供應鏈幾乎沒有變化。這些問題持續影響 OEM 生產新資產和零件的能力，而 MRO 則持續難以及時修理引擎。這對我們的利用率和費率來說仍然是一個好兆頭。波音公司的罷工加劇了這個問題，並導致更多客戶尋求延長其當前一代窄體飛機的使用壽命。

We have seen specific examples recently where airlines had RFPs in the market to sell their fleets of aircraft over the next 12 months, but have recently retracted those RFPs as they don't have a clear picture of when they can expect their new aircraft to deliver.

我們最近看到了一些具體的例子，航空公司在市場上發布了在未來 12 個月內出售其飛機機隊的 RFP，但最近撤回了這些 RFP，因為他們不清楚新飛機何時可以交付。

Generally airlines will plan to retire a fleet when they have used the green time or serviceable life of an engine and when the airframes require major checks. By extending the lives of their fleets, many airlines are faced with the prospect of making major investments in their aircraft that they may not fully realize the value of.

一般來說，當引擎的綠色使用時間或使用壽命已到，機身需要進行大修時，航空公司就會計劃退役機隊。透過延長機隊的使用壽命，許多航空公司面臨著對飛機進行大量投資的前景，但他們可能尚未完全實現其價值。

Our programs like constant thrust where we insource the airline's engine maintenance enables the airlines to only pay for the incremental hours and cycles that they consume on their engines rather than paying for full overhauls.

我們的專案包括恆定推力，即我們將航空公司的發動機維護外包出去，這樣航空公司只需支付發動機消耗的增量小時數和周期費用，而不必支付全面大修費用。

We have seen an increase in airlines requesting this service in recent months. We are exceptionally well placed to fulfill these program requirements due to our size, diversity of engine assets and in house materials and maintenance capabilities. While some airlines have looked to reduce capacity in recent months, we have not seen a reduction in demand, and in fact, our average lease rental factor has increased over the prior quarter.

近幾個月來，我們發現請求此項服務的航空公司數量增加。由於我們的規模、引擎資產的多樣性以及內部材料和維護能力，我們完全有能力滿足這些專案要求。儘管近幾個月來一些航空公司試圖減少運力，但我們並未看到需求減少，事實上，我們的平均租賃租金率比上一季增加。

While we feel that some engine lease rates may be stabilizing at a higher level. There is still significant upside from our existing portfolio. Our ability to reprice the lease is a distinguishing factor relative to the aircraft lessors, given the proportion of our portfolio on short term leases. Growth has been a focal point for us as we are seeing opportunities to acquire assets that are resulting in attractive returns.

同時我們認為有些引擎租賃率可能穩定在較高水準。我們現有的投資組合仍有顯著的上升空間。鑑於我們的投資組合中短期租賃的比例，我們對租賃進行重新定價的能力是與飛機租賃商相比的顯著因素。成長一直是我們關注的重點，因為我們看到了收購可帶來可觀回報的資產的機會。

During the third quarter, we purchased 27 engines and 4 air frames and sold 13 engines. Resulting in net portfolio growth of $182 million. Our ability to grow in this environment is the direct result of our flywheel business model where our different businesses create value and opportunity. For example, we purchased a number of turboprops that will be added to our pool of engines used to support constant thrust programs we have with an ATR operator.

第三季度，我們購買了 27 台發動機和 4 個機架，並銷售了 13 台發動機。導致淨投資組合成長1.82億美元。我們能夠在這種環境中成長，直接得益於我們的飛輪業務模式，在該模式中，我們的不同業務創造了價值和機會。例如，我們購買了一些渦輪螺旋槳發動機，這些發動機將添加到我們的發動機池中，用於支援我們與 ATR 運營商的恆定推力計劃。

We provided a debt like product to a customer where the underlying collateral is V2500 and GTF engines because we are exceptionally comfortable with the asset types and we speculatively purchased a number of new generation engines both from the OEM, as well as on the open market. The ability to pursue multiple asset strategies, as well as offering a services enhanced leasing product enables us to grow in a variety of market conditions.

我們向客戶提供了類似債務的產品，其基礎抵押品是 V2500 和 GTF 發動機，因為我們對這些資產類型非常滿意，並且我們投機性地從 OEM 和公開市場購買了一些新一代發動機。實施多種資產策略以及提供服務增強型租賃產品的能力使我們能夠在各種市場條件下成長。

I mentioned our recent completion and upsizing of our preferred stock and revolving credit facility. When combined with our warehouse facility, these financings evidence our exceptional ability to access diverse capital at attractive rates.

我提到我們最近完成並擴大了優先股和循環信貸額度。與我們的倉儲設施相結合，這些融資證明了我們以優惠利率獲取多樣化資本的卓越能力。

We intend to deploy this capital over time as we grow our equity in order to properly manage our leverage in accordance with our long term goals. We see many opportunities to grow and believe our platform and financial structure will help support that growth, earning us a premium return.

我們打算隨著股權的成長而逐漸部署這筆資本，以便根據我們的長期目標妥善管理我們的槓桿率。我們看到了許多成長機會，並相信我們的平台和財務結構將有助於支持這種成長，並為我們帶來豐厚的回報。

Thank you and I'll hand it off to Scott Flaherty, our CFO.

謝謝，我會將其交給我們的財務長 Scott Flaherty。

Thank you, Austin, and good morning, all. As you can see from this morning's earnings release, the company produced strong earnings as evidenced by both the $34.5 million of third quarter earnings before tax or EBT and $122.3 million of year-to-date EBT, achieved which exceeds full year performance in any prior year of our company's history.

謝謝你，奧斯汀，大家早安。從今天上午的收益報告中可以看出，該公司的收益強勁，第三季稅前利潤為 3,450 萬美元，年初至今的稅前利潤為 1.223 億美元，超過了以往任何一年的全年業績。這是我們公司成立一年的歷史。

This performance was up $14.1 million or 69% in the comparable quarter of 2023 and up $76.1 million or 165% on a comparable year-to-date basis. Walking through the P&L revenues for the quarter were $146.2 million. Significant revenue drivers were core leasing revenues inclusive of lease rent revenues and interest revenues on those receivables and sales type leases were $68.3 million, another all-time high reflecting the increased total portfolio size of nearly $2.7 billion at quarter end, as the company purchased equipment totaling $229.8 million in the quarter, only slightly offset by $47.9 million of equipment sales.

這項業績比 2023 年同期成長了 1,410 萬美元，即 69%，比年初至今成長了 7,610 萬美元，即 165%。本季的損益收入為 1.462 億美元。重要的收入驅動因素是核心租賃收入，包括租賃租金收入和應收帳款和銷售型租賃的利息收入，為6,830 萬美元，創歷史新高，反映出由於公司購買設備，季度末總投資組合規模增加近27 億美元本季總計 2.298 億美元，僅被 4,790 萬美元的設備銷售額稍微抵銷。

Maintenance reserve revenues for the quarter were $49.8 million up $12.1 million or 32% for the comparable quarter in 2023. $1.2 million of these revenues were long term maintenance reserve revenues associated with engines coming off lease and the associated release of any maintenance reserve liabilities, and $48.5 million of these revenues were short term maintenance revenues which are highly correlated to the amount of time our portfolio is flying as we get paid an hourly and cyclic rate on our lease assets.

本季維護儲備收入為 4,980 萬美元，較 2023 年同期增加 1,210 萬美元，即 32%。美元為短期維護收入，該收入與我們的投資組合的飛行時間高度相關，因為我們按租賃資產的小時和週期費率獲得報酬。

These short term maintenance revenues were up $14.2 million or 41% when compared to the comparable period in 2023. Spare parts and equipment sales of $10.9 million in the quarter were up $7.5 million or 223.4% from the comparable quarter in 2023 and produced 18.4% gross margin.

與 2023 年同期相比，這些短期維護收入增加了 1,420 萬美元，即 41%。本季備件和設備銷售額為 1,090 萬美元，較 2023 年同期增加 750 萬美元（成長 223.4%），毛利率為 18.4%。

The increase in spare part sales reflects the demand for surplus materials that we are seeing as operators extend the lives of their current generation fleets. We have also benefited from some strategic surplus material purchases made in the first quarter of the year as well as our vertically integrated platform allowing us to provide this value to our customers as well as our own portfolio.

備件銷售額的成長反映了隨著營運商延長當前世代車隊的使用壽命，對剩餘材料的需求。我們也受益於今年第一季的一些策略性剩餘材料採購以及我們的垂直整​​合平台，使我們能夠為客戶和我們自己的產品組合提供這種價值。

Gain on sales of our portfolio assets, a net revenue metric was $9.5 million in the quarter as mentioned above, associated with $47.9 million of gross sales and compares to $0.8 million of gain on sale in the comparable period in 2023 which was associated with $4.7 million of gross sales.

如上所述，本季我們投資組合資產的銷售收益，即淨收入指標為 950 萬美元，與 4,790 萬美元的總銷售額相關，而 2023 年同期的銷售收益為 80 萬美元，與 470 萬美元相關總銷售額。

During the quarter, the company sold 13 engines and other parts and equipment to various trading partners. Maintenance services which represents fleet management, engine and aircraft storage repair services and revenues related to management of fixed based operator services was $5.9 million, slightly down from the $6.2 million in the comparable period of 2023.

本季度，該公司向各貿易夥伴銷售了 13 台發動機及其他零件及設備。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，為 590 萬美元，略低於 2023 年同期的 620 萬美元。

Reported revenues reflect only our sales to third parties and not our in our company sales which support our fleet and our material to those businesses. Our maintenance capability allows us to be more efficient in our leasing operations as well as more relevant to our customers by being able to offer a broader bundled product solution which provides other business opportunities for our core leasing business.

報告的收入僅反映我們向第三方的銷售收入，而不反映我們公司內部為我們的車隊和向這些企業提供材料的銷售收入。我們的維護能力使我們能夠提供更廣泛的捆綁產品解決方案，從而為我們的核心租賃業務提供其他業務機會，從而使我們的租賃業務更加高效，同時也更貼近客戶。

On the expense side of the equation, cost of spare parts and equipment sales was $8.9 million up $6.8 million or 337.9% which was influenced by the large increase in third party sales from the comparable period in 2023. Depreciation, slightly up 2.4% from the comparable quarter in $23 million to $23.7 million, reflective of the growth in the portfolio.

在費用方面，備件和設備銷售成本為 890 萬美元，增加 680 萬美元或 337.9%，這是受到 2023 年同期第三方銷售額大幅增長的影響。折舊較上季略有成長，為 2,300 萬美元，達到 2,370 萬美元，成長 2.4%，反映了投資組合的成長。

Technical expense of $5.2 million was down $3.5 million for the comparable period as Wills generally has had less unplanned, non-capitalized maintenance visits. G&A was $40 million up $13.4 million from the comparable period in 2023. The cost increases include $7.8 million of costs related to share based compensation which was influenced by the appreciation in the price of the company's public equity securities.

技術費用為 520 萬美元，較同期下降了 350 萬美元，因為 Wills 的計劃外、非資本化的維護訪問通常較少。G&A 費用為 4,000 萬美元，較 2023 年同期增加 1,340 萬美元。成本增加包括 780 萬美元的與股權激勵相關的成本，該成本受到公司公開股票證券價格升值的影響。

$3.0 million related to a special bonus paid to our Executive Chairman at the direction of the compensation committee for the company's performance and $2.5 million of incentive compensation which is derivative to the performance of the company. Net finance costs were $27.8 million for the quarter compared to $19.1 million in Q3 2023.

其中 300 萬美元為根據薪酬委員會指示支付給執行董事長的特別獎金，以表彰其公司出色的業績；250 萬美元為與公司業績掛鉤的激勵性薪酬。本季淨財務成本為 2,780 萬美元，而 2023 年第三季為 1,910 萬美元。

The $8.8 million increase in costs related to an increase in average indebtedness in the respective quarters by a $161 million an increase in financing costs as the weightings of borrowing shifted across finance vehicles and $3.3 million reduction in derivative related receipts as certain hedge positions that the company had matured.

成本增加 880 萬美元，與各季度平均負債增加有關，其中，融資成本增加 1.61 億美元，因為借款權重在各個融資工具之間轉移，以及衍生品相關收入減少 330 萬美元，因為公司某些對沖頭寸已經成熟。

The weighted average cost of debt inclusive of our interest rate, hedge positions was 4.04% at 9/30/2023 compared to 5.13% at 9/30/2024. As mentioned earlier, EBT was $34.5 million for the quarter and the company produced $23.1 million of net income attributable to common shareholders, factoring GAAP taxes and the cost of our preferred equity.

包括我們的利率和對沖頭寸在內的加權平均債務成本在 2023 年 9 月 30 日為 4.04%，而 2024 年 9 月 30 日為 5.13%。如前所述，本季的息稅前利潤為 3,450 萬美元，考慮到 GAAP 稅和優先股成本，公司實現歸屬於普通股股東的淨利潤 2,310 萬美元。

Diluted weighted average income per share was $3.37 up 58.2% from the comparable period in 2023. Cash flow from operations through the third quarter of the year was up 28.1% to $216.4 million and driven by growth and pretax earnings as the business enjoys significant tax depreciation shields.

稀釋加權平均每股收益為 3.37 美元，較 2023 年同期成長 58.2%。今年第三季的營運現金流成長 28.1%，達到 2.164 億美元，受成長和稅前收益的推動，因為該業務享有很大的稅收折舊保護。

Strong cash flows associated with our sales type leases solid collections relative to the prior comparable period, slightly offset by growth and spare parts inventory as the company opportunistically purchased an attractive portfolio of engine parts early in the year.

與去年同期相比，與我們的銷售型租賃相關的強勁現金流帶來了穩健的收款，但由於公司在今年年初趁機購買了一批頗具吸引力的發動機零件，因此增長和備件庫存略微抵消了這一影響。

In September, the company refinanced and expanded its $50 million preferred stock position held by the Development Bank of Japan into a $65 million preferred stock position. The new preferred position will accrue quarterly dividends at a rate of 8.35% per annum. The incremental capital raise will be utilized to further support the growth of the business.

9月份，該公司對日本政策投資銀行持有的5,000萬美元優先股部位進行了再融資，並將其擴大至6,500萬美元優先股部位。新的優先股將以每年 8.35% 的利率累積季度股息。增量資本籌集將用於進一步支持業務成長。

Just last week on October 31, the company refinanced and expanded its $500 million revolving credit facility into a new $1 billion size facility with a five-year term and a $250 million accordion feature. This facility alongside the $500 million warehouse facility we put in place in May of this year will provide capital to support the continued growth of the company.

就在上週 10 月 31 日，該公司對其 5 億美元的循環信貸額度進行了再融資並擴大為新的 10 億美元信貸額度，期限為五年，並具有 2.5 億美元的可伸縮功能。該設施與我們今年 5 月投入使用的價值 5 億美元的倉儲設施一起，將提供資金支持公司持續成長。

Historically, we have looked to diversify capital sources to support the growth of our business as we continue to see opportunities for growth. We do not foresee any changes to the strategy. With our Q3 earnings release this morning, we announced a $0.25 per share, regular quarterly dividend, our second. This will be payable on November 21 to record holders at November 12.

從歷史上看，隨著我們不斷看到成長機會，我們一直尋求多元化資本來源來支持我們的業務成長。我們預計該戰略不會發生任何改變。隨著我們今天早上發布的第三季收益報告，我們宣布派發每股 0.25 美元的定期季度股息，這是我們的第二次。該款項將於 11 月 21 日支付給 11 月 12 日的記錄持有人。

The company has brought balance sheet leverage defined as total debt obligations to equity inclusive of preferred stock to 3.43 times at Q3 2024 compared to 3.71 times in the comparable period of 2023. When factoring debt net of cash and restricted cash leverages at 3.25 times, we have been successful in continuing to reduce our leverage levels while also growing our lease portfolio by a net $460 million or 17.3% on the year-to-date basis.

該公司的資產負債表槓桿率（即包括優先股在內的總負債與股權之比）在 2024 年第三季升至 3.43 倍，而 2023 年同期為 3.71 倍。當債務淨額計入現金和 3.25 倍的限制性現金槓桿時，我們成功地繼續降低了槓桿水平，同時使我們的租賃組合年初至今淨增長了 4.6 億美元，即 17.3%。

At times, we maintain higher levels of restricted cash as we recycle ABS asset sale proceeds which are held as restricted cash to purchase new assets. This allows the company to benefit from attractive fixed rate debt pricing and therefore a lower cost of capital.

有時，我們會維持較高水準的受限現金，因為我們會回收 ABS 資產出售收益，這些收益作為受限現金用於購買新資產。這使得公司能夠受益於有吸引力的固定利率債務定價，從而降低資本成本。

With that, I will now open up the call to questions. Operator?

現在，我將開始回答大家的提問。操作員？

(Operator Instructions)

（操作員指令）

Frank Galanti, Stifel. I appreciate you guys taking my question. I wanted to ask about asset values and lease rates particularly for the narrow body engines. The older ones, CFM56 and V2500s. Sort of what you're seeing from a recent trends perspective?

弗蘭克·加蘭蒂（Frank Galanti），Stifel。感謝你們回答我的問題。我想詢問資產價值和租賃費率，特別是窄體引擎的資產價值和租賃費率。較老的有 CFM56 和 V2500。從最近的趨勢來看您看到了什麼？

Hi, Frank, this is Austin Willis. We've seen year over year about 37% increase in lease rates, and I believe we published our book values at the end of last year from an appraisal to book value perspective. So you can see that that change there. We're not going to get into details on specific engine types, but we have seen a significant increase.

你好，弗蘭克，我是奧斯汀威利斯。我們看到租賃率年增了約 37%，我相信我們在去年年底從評估到帳面價值的角度公佈了我們的帳面價值。因此您可以看到那裡的變化。我們不會詳細討論特定的引擎類型，但我們已經看到了顯著的成長。

What's interesting though is, if you look at lease rates now relative to where they were in 2019, for the most part, they're not that dissimilar. So while there has been a significant increase in rates year over year, I think there's still room to go. Certain types I think have stabilized at a higher level, but others certainly have a lot more runway.

不過有趣的是，如果將現在的租賃價格與 2019 年的租賃價格進行比較，你會發現，大部分情況下，它們並沒有太大差別。因此，儘管利率逐年大幅上升，但我認為仍有上升空間。我認為某些類型已經在較高水平上穩定下來，但其他類型肯定還有更大的發展空間。

On the newer engine types the LEAP, GTFs, GEnx lease rates have been climbing, but I think that's more reflective of asset values than anything else. I mean, when you've got engines that are selling in excess of $20 million, it's going to be reflected in the lease rates.

對於較新的引擎類型，LEAP、GTF、GEnx 的租賃率一直在攀升，但我認為這更多地反映了資產價值。我的意思是，當你的引擎銷售超過 2000 萬美元時，這將反映在租賃費率上。

Great. Thanks for that. And then for another question, if I could, I wanted to ask about sort of maintenance overhaul costs, what you've seen from that perspective in terms of trends and sort of maintenance or MRO availability. And then if I could, could you sort of walk through how you guys think about the decision to repair your engines versus using modules for your own assets?

偉大的。謝謝。然後對於另一個問題，如果可以的話，我想問一下維護大修成本，從這個角度來看，您看到了什麼趨勢以及維護或 MRO 的可用性。然後，如果可以的話，您能否介紹一下您是如何考慮修理引擎與使用模組來改造自己資產的決定的？

Sure, yeah, I'd be happy to. In terms of MRO availability, it's fairly tight, but it's tightest with the larger MROs, the [Lufthansas], KLMs, MTUs. The smaller MROs. I think there's a little bit more availability currently in terms of overhaul cost. The 5B-7B, V2500, I'll sort of paint them with a similar brush.

當然，我很樂意。就 MRO 供應而言，相當緊張，但大型 MRO（漢莎航空、荷蘭皇家航空、MTU）的供應最為緊張。較小的 MRO。我認為，就大修成本而言，目前的可用性更高一些。5B-7B、V2500，我會用類似的筆刷來繪製它們。

But you're looking at $10 million-plus for a full overhaul with LLP. So it's a significant investment. The core modules are going to be in the neighborhood of $7 million and that's, HPT Blades, LLP and the remainder of the engine. So again, it's expensive.

但您需要花費超過 1000 萬美元才能對 LLP 進行全面整改。所以這是一項重大投資。核心模組的售價約為 700 萬美元，其中包括 HPT Blades、LLP 和引擎的剩餘部分。所以再說一次，它很貴。

And in terms of your last question, how do we think about what we do with our assets, when they come off lease or they've become unserviceable? We have a formal process to evaluate engines where we really look at four different outcomes and we run a present value analysis on each. So first is sort of the repair end and that could be module swaps or overhaul and the preference is module swaps, when we have the appropriate modules available.

關於您的最後一個問題，當我們的資產租賃期滿或無法使用時，我們該如何處理它們？我們有一個正式的流程來評估引擎，我們實際上會研究四種不同的結果，並對每種結果進行現值分析。因此，首先是修復階段，這可以是模組交換或大修，當我們有合適的模組可用時，優先進行模組交換。

The real difficulty is finding core modules that are serviceable because there isn't, there isn't a great deal of availability for core modules, much less Core Module LLPs. So then you look at the overhaul scenario and then you look at the part out scenario where we send it through our parts business WASI and then the final scenario is looking at selling it out right where we take multiple bids from the marketplace and we value each scenario in whichever one results in the highest present values generally the path that we take.

真正的困難是找到可用的核心模組，因為核心模組的可用性並不高，更不用說核心模組 LLP 了。因此，您可以先查看大修方案，然後查看零件出庫方案，我們會透過零件業務WASI 發送零件，最後一種方案是將其出售，我們會從市場上獲取多個出價，並對每個出價進行估值無論哪種情景，導致最高的現值通常都是我們採取的路徑。

Great. I really appreciate it. Thanks for taking my questions.

偉大的。我非常感激。感謝您回答我的問題。

Yeah, no problem.

是的，沒問題。

Hi, good morning everyone. This is Greg Dahlberg on for Myles Walton at Wolfe Research. I guess given chromoly had a part approved last week in the hot section, PMA wise, I guess. Can you just comment philosophically your view on PMA usage?

大家早安。我是 Wolfe Research 的 Myles Walton 的 Greg Dahlberg。我想，鑑於鉻鉬鋼的某個部件上週在熱門部分獲得了批准，我想是 PMA 方面。您能否從哲學角度評論一下您對 PMA 使用的看法？

Sure. So PMA certainly has the potential of saving money on the bill of an overhaul. I think the question is really twofold. One, is it going to have the same on-wing life as an OEM part and that really is reflected in the cost per cycle. And then two, what are the impacts with remarketability of the asset.

當然。因此，PMA 確實有潛力節省大修費用。我認為這個問題實際上具有雙重性。首先，它是否具有與 OEM 零件相同的在翼使用壽命，這實際上反映在每個週期的成本中。其次，這對資產的再行銷有何影響。

For us, historically, we found that most of our airline customers or the lion share of our airline customers have opted for engines that are free of OEM -- or I'm sorry, are [DER] and PMA parts So if we were to introduce those, it would limit the ability to remarket those assets both for lease and sale considerably. So we're watching what happens in the future.

對我們來說，從歷史上看，我們發現我們的大多數航空公司客戶或大部分航空公司客戶都選擇了不含 OEM 部件的發動機——對不起，是 [DER] 和 PMA 部件，所以如果我們要引入這些措施，將極大地限制這些資產的租賃和銷售能力。所以我們正在觀察未來會發生什麼。

Got it. Thank you. And then just on an engine acquisition activity, I saw you acquired 19 Engines. Can you comment broadly on the availability of engines, I guess? Are you seeing any signs of a slowdown at all?

知道了。謝謝。然後就在引擎收購活動中，我看到你們收購了 19 台引擎。我想，您能否廣泛地評論一下引擎的可用性？您是否看到任何放緩的跡象？

Yeah, our originations are fairly broad. We've got an order book with the OEM. So we purchase some engines directly from them. Others are through big programmatic deals we do like the one we did with Air India, which is a classic constant thrust deal where we do a sale lease back and when one of the engines becomes unserviceable, we take that engine back and replace it with one from our portfolio.

是的，我們的起源相當廣泛。我們與 OEM 有一份訂單。因此我們直接從他們那裡購買一些引擎。其他則是透過我們與印度航空達成的大型專案交易，這是一項經典的恆推力交易，我們進行售後回租，當其中一台發動機無法使用時，我們會將該發動機收回並用另一台替換來自我們的投資組合。

And then with that unserviceable engine, we run it through the formal process that I mentioned earlier where we may sell it, we may part of that, we may repair it. So we do originate a fair amount from programs and then we also originate from just the open market generally where we find that because of the different, the different elements of our business model having in house parts business, having our own MROS and also just having diversity of assets, we're usually able to originate assets where other people may struggle because we've got better avenues of monetizing them.

然後，對於無法使用的發動機，我們會按照我之前提到的正式流程進行處理，我們可能會出售它，可能會對其進行部分維修，也可能會對其進行修理。因此，我們確實從專案中獲得了相當多的收益，然後我們也通常從開放市場中獲取收益，我們發現，由於我們的業務模式的不同，我們有內部零件業務、我們自己的 MROS，也有資產多樣化，我們通常能夠在其他人可能難以實現的地方創造資產，因為我們有更好的途徑將其貨幣化。

Got it. Thank you for the time.

知道了。感謝您抽出時間。

You bet.

當然。

This is Will Waller from M3. Just wondering if you could comment on what your average utilization rate for equipment for lease was in the third quarter

我是 M3 的威爾沃勒。我想知道您是否可以評論一下第三季租賃設備的平均使用率是多少

Sure. Yeah. Hey, Will, this is Austin Willis. It was a little under 83% for the third quarter.

當然。是的。嘿，威爾，我是奧斯汀威利斯。第三季這一比例略低於 83%。

Okay. The one question I have and it kind of ran that same level in the second quarter. I'm just curious if we go back a couple of years and I know that 83% is actually a pretty high number, when it comes to leasing any sort of asset because there's just times when things are down, but you have been in the upper 80s a couple, like, I don't know, it's probably been three or four years ago.

好的。我有一個問題，它在第二季也達到了同樣的水平。我只是好奇，如果我們回顧一下幾年前的情況，我知道 83% 實際上是一個相當高的數字，當涉及到租賃任何類型的資產時，因為總有事情不順利的時候，但你一直處於大約80 多歲，我不知道，大概是三、四年前的事了。

Just kind of curious to hear if you think you could ever get back to those levels and if there's something that's keeping the levels down in the low 80s, it just seems like the demand for equipment is so high right now that it would be the highest it's ever been historically. So, just wondering if there's something that's going on different in today's world versus -- I don't know, four or five years ago.

我只是有點好奇，想知道你是否認為你可以回到這些水平，以及是否有什麼東西可以將水平保持在 80 年代的低位，似乎現在對設備的需求如此之高，以至於這將是最高的從歷史上看，這種情況一直存在。所以，我只是想知道與四、五年前相比，當今世界是否發生了一些不同的事情。

Sure. Yeah. No, it's a few different things. One of them is, it's a little bit deceptive because when we originate new transactions, often times those assets are off lease and it takes sometimes a little bit of time to put them on lease. Some of it is holding a selection of assets for a big programmatic deals. And then it is just putting assets through maintenance and just the normal churn of assets coming on and off lease.

當然。是的。不，這是一些不同的事情。其中之一是，它有點欺騙性，因為當我們發起新的交易時，這些資產通常處於租賃期，有時需要一點時間才能租賃。其中一些是為大型程序化交易持有精選資產。然後只是對資產進行維護以及資產的正常租賃和終止流動。

Great. That makes perfect sense. And then one last question on your order book that you have, what is the order book look like for engines that you've got orders placed on but haven't yet taken delivery on?

偉大的。這很有道理。關於您的訂單簿的最後一個問題，那些您已經下訂單但尚未交付的引擎的訂單簿是什麼樣的？

Sure. It's about $400 million more.

當然。大約多出了4億美元。

Got it. And when were most of those orders placed?

知道了。大部分的訂單是什麼時候下？

Those orders are through 2027. They'll be purchased through 2027 and you'll see that in more detail, Will later today, when we post our queue?

這些訂單有效期至 2027 年。它們將在 2027 年之前購買，您將看到更詳細的信息，今天晚些時候我們發布隊列時會嗎？

Okay, great. Thank you.

好的，太好了。謝謝。

Eric Gregg from Four Tree Island Advisory. A great quarter. A few questions here. What is the average lease life on the engine portfolio at this point?

來自 Four Tree Island Advisory 的 Eric Gregg。非常棒的一個季度。這裡有幾個問題。目前引擎組合的平均租賃壽命是多少？

So our average lease term remaining is in the neighborhood of two years.

因此我們剩餘的平均租賃期限約為兩年。

Okay, great. And AerCap came out last week and announced that they were taking a provision for last quarter for [Azul], which I saw Based on your October 14 update is a meaningful customer for Willis. What do you anticipate if anything is going to happen there with a potential provision or steps that need to be taken with regards to that situation?

好的，太好了。上週，AerCap 宣布他們正在為 [Azul] 提列上個季度的撥備，根據您 10 月 14 日的更新，我看到 Azul 是 Willis 的重要客戶。如果那裡發生任何事情，您預計會有什麼潛在規定或需要採取什麼措施來應對這種情況？

Sure. So I won't get into too much detail with regard to specific discussions with Azul other than to say we have a zero AR balance with them right now. So we don't have any issues and we don't have any immediate expectations for provisions.

當然。因此，我不會過多談論與 Azul 的具體討論，只能說我們目前與 Azul 的應收帳款餘額為零。因此，我們沒有遇到任何問題，而且我們對供給也沒有任何直接的期望。

Great. And then in terms of capital allocation, I know you have a lot of, obviously, commitments to buy more engines here. But as per that update you provided back in the middle of October, there's very significant daylight between your valuation and that of FTAI, which a lot of people look at as your closest comparable. How are you thinking about capital allocation with regards to stock buybacks and shareholder payouts?

偉大的。然後在資本配置方面，我知道你顯然有很多承諾要購買更多的引擎。但根據您在 10 月中旬提供的更新，您的估值與 FTAI 的估值之間存在很大差距，而許多人認為 FTAI 是最接近的可比公司。您如何考慮股票回購和股東分紅方面的資本配置？

So I'm not going to speak specifically on capital markets transactions other than to say the appreciation in our share price over, I don't know, the last nine months has been welcomed I think by all investors and it certainly gives us optionality.

因此，我不會具體談論資本市場交易，我只想說，過去九個月我們股價的升值受到了所有投資者的歡迎，這無疑給了我們選擇權。

And then finally, we saw this year over year some negative operating leverage, specifically in G&A. We also saw kind of negative operating leverage quarter over quarter from Q2 to Q3 with revenues down a little bit, but costs up in the kind of double digits. When do we start or when do you forecast, we're going to start seeing actually positive operating leverage here with the great growth in the top line leading to margins improving again on a quarter over quarter basis?

最後，我們發現今年的經營槓桿與去年同期相比出現了一些負成長，特別是在一般及行政管理方面。我們也看到，第二季到第三季度，營業槓桿率逐季負成長，營收略有下降，但成本卻上漲了兩位數。我們什麼時候開始，或者您預測什麼時候我們會開始看到真正的正向營業槓桿，營業收入的大幅成長將導致利潤率逐季提高？

Sure. I think one thing that we did mention in our script earlier in the call was a lot of what you saw on the G&A side was related to stock based comp and specifically the movement in the stock price. What we are seeing, Eric is, we are getting better or improvement. I think if you look on a year to date basis, you're seeing improvement in G&A margins.

當然。我認為我們在早些時候的電話會議腳本中提到的一件事是，您在 G&A 方面看到的很多內容都與股票補償有關，特別是股票價格的變動。艾瑞克，我們看到的是，我們正在變得更好或進步。我認為，如果從年初至今的情況來看，你會看到 G&A 利潤率有所提高。

So, I think you're going to continue to see that improvement in the G&A margin, so leverage through the P&L with growth as we move forward. But I think that there was a large component that we did experience in Q3 due to the stock based comp phenomena.

因此，我認為您將繼續看到 G&A 利潤率的提高，因此隨著我們前進，我們將透過損益表實現成長。但我認為，由於股票型補償現象，我們在第三季確實經歷了很大一部分影響。

And then maybe finally in terms of the maintenance reserve revenues, that seems pretty lumpy or a big difference between -- I mean, it was great basic lease rent improvement, but the maintenance reserve revenues were down a bit in Q3 over Q2.

然後，也許最終就維護儲備收入而言，這似乎是相當不穩定的，或者說有很大的差異——我的意思是，基本租賃租金有很大的改善，但第三季度的維護儲備收入比第二季度略有下降。

Is there a way for us to think about that going forward? And I appreciate those comments you made earlier about how a lot has to do with that being lower when leases are extended with customers. But any more color you can provide there would be helpful.

我們有什麼辦法可以進一步思考這個問題嗎？我很感謝您之前提出的那些評論，關於當與客戶延長租約時，這一數字會降低多少。但如果您能提供更多顏色的話將會很有幫助。

Yes. That's the majority of it. I mean, it is lumpy exactly as you described. And when [lessees] opt to extend rather than return engines, we do tend to see lower long term reserves. And the increased short-term reserves, the significant increased short-term reserves year over year are really the results of both portfolio growth as well as increased utilization. Scott, is there anything else you'd like to touch on there?

是的。大部分就是這些。我的意思是，它就像你描述的一樣凹凸不平。當[承租人]選擇延長而不是歸還引擎時，我們往往會看到較低的長期儲備。短期儲備的增加，短期儲備的年比大幅增加實際上是投資組合成長和利用率提高的結果。斯科特，還有什麼您還想談一下嗎？

Yes. No, I think that's right. I think if you look at the short-term maintenance component, which we disaggregate in our discussion and in our Q, you can see that that is the recurring piece, which we see strong growth in. And clearly, you can see from quarter to quarter the lumpiness in the long term, but we think it's simply that.

是的。不，我認為是這樣。我認為，如果您看我們在討論和問答中分解的短期維護部分，您會發現這是反覆出現的部分，我們看到了強勁的增長。顯然，從長期來看，每季的變化都存在不平衡，但我們認為情況僅止於此。

Well, great results. Thanks a lot guys.

嗯，結果很棒。非常感謝大家。

Thank you.

謝謝。

Justin Hughes at Phase 2.

賈斯汀休斯 (Justin Hughes) 處於第二階段。

Hi, Justin.

你好，賈斯汀。

Hi, just two questions. One on leverage. If I look year over year, as you highlight in your comments, your financial leverage came down. That's despite a lot of really good growth prospects, initiating a dividend, paying a special dividend, et cetera.

你好，我只想問兩個問題。一是槓桿。如果我逐年回顧，正如您在評論中所強調的那樣，您的財務槓桿下降了。儘管有很多非常好的成長前景，啟動股息，支付特別股息等等，但情況仍然如此。

Going forward, would you expect to continue to deleverage or do you think that there's enough demand for the leasing side that the portfolio growth will pick up enough to kind of offset the capital generation that you're doing right now?

展望未來，您是否預計會繼續去槓桿，或者您是否認為租賃方面的需求足以使投資組合增長回升，從而足以抵消您目前正在進行的資本生成？

So, our objective is to both grow and delever. In terms of whether or not we'll delever further from where we are, our objective is generally to have a BB-type credit profile. So, Scott, do you want to talk to that anymore?

因此，我們的目標是實現成長並去槓桿。關於我們是否會進一步降低槓桿率，我們的目標通常是擁有 BB 型信用狀況。那麼，史考特，你還想談這個問題嗎？

Yes. I think as we mentioned on the prepared remarks, Justin, we're on a net basis, we're in the low [3, 3.25] on a net basis. And I think as you start to get in that area, that's probably reflective of where a BB is. So I think we will delever just as the company produces earnings like we've been producing, but we're probably getting to more of a comfort zone in that low three range.

是的。我認為，正如我們在準備好的評論中提到的那樣，賈斯汀，我們是在淨基礎上，我們的淨值為 [3, 3.25] 較低。我認為，當你開始進入該區域時，它可能反映出了 BB 的位置。因此，我認為，只要公司能像我們一樣創造收益，我們就會降低槓桿率，但我們可能會進入一個更舒適的區間，也就是低 3 個區間。

Okay. And then second question, on the $3 million bonus for Charlie, is that something we should build into forward numbers? Is that a onetime item? How should we think about that going forward?

好的。第二個問題，關於查理的 300 萬美元獎金，我們是否應該將其計入未來數字？那是一次性物品嗎？我們今後該如何思考這個問題？

Sure. That was a onetime item where he was compensated for strategic initiatives and goals that he executed upon through the year.

當然。這是一次性項目，他因全年執行的戰略舉措和目標而獲得報酬。

Okay. Are there similar targets for next year that we could look at so that we can see if they're going to get hit that we can build them into estimates?

好的。明年是否有類似的目標可供我們參考，以便我們了解這些目標是否會實現，並將其納入估算中？

Not currently.

目前沒有。

Okay, thank you.

好的，謝謝。

Thank you.

謝謝。

Hi, this is Josh Strauss from Pekin Hardy Strauss. Guys, great quarter. Very happy about that. I had a couple of questions. I guess one of the things that I was looking at was with regards to revenues per employee based on publicly available data.

大家好，我是 Pekin Hardy Strauss 的 Josh Strauss。夥計們，這一季度表現棒極了。我非常高興。我有幾個問題。我想我正在關注的事情之一是基於公開數據得出的每位員工的收入。

When you look at FTAI, they're looking at $1.2 million in revenues for every employee, while Willis is far short of that around [$420]. And I just was curious, why is Willis operations so much more labor-intensive versus FTAI? And is there some sort of opportunity in order for Willis to improve on that metric?

當你看 FTAI 時，他們看到每位員工的收入為 120 萬美元，而 Willis 的收入卻遠低於這個數字。[420美元]。我只是很好奇，為什麼 Willis 的營運比 FTAI 的勞動密集程度要高得多？那麼，威利斯是否有機會提高這項指標呢？

Yes. Thanks for that. So, I won't speak to specifics about FTAI and compare ourselves there, but I'll tell you that there's really two elements. One, when you comp us to the majority of leasing companies, we are much more hands on. Half of our portfolio is short-term leases.

是的。謝謝。因此，我不會詳細談論 FTAI 並進行比較，但我會告訴你，它實際上包含兩個要素。首先，當你將我們與大多數租賃公司進行比較時，我們會更加親力親為。我們的投資組合中有一半是短期租賃。

So, when you look at us relative to an aircraft lessor where they put an aircraft out on lease for 10 years, they really don't interact with the customer as frequently as we do. It takes a lot more touch. And that's everything from accounting to legal to really technical. And there's a lot more manpower involved there. So that's part of the story.

因此，當您將我們與將飛機租賃 10 年的飛機租賃商進行比較時，他們與客戶的互動實際上並不像我們那樣頻繁。這需要更多的接觸。這包括從會計到法律到技術的一切。那裡需要更多的人力。這就是故事的一部分。

And the other part of the story is the services businesses. If we were strictly a leasing company, you would see the dollar amount per employee be much higher. But the nature of the services business, obviously, is lower revenue per person. And as we've grown that over the past few years, that's influenced that number pretty significantly.

故事的另一部分是服務業務。如果我們嚴格來說是一家租賃公司，你會發現每位員工的金額要高得多。但服務業的本質顯然是人均所得較低。隨著我們過去幾年的成長，這對這個數字產生了相當大的影響。

Great. Okay. I mean, is engine parts manufacturing, which FTAI does and is that an area that Willis is looking to get into?

偉大的。好的。我的意思是，引擎零件製造是 FTAI 所從事的領域，也是 Willis 想要進入的領域嗎？

So, you're talking about PMA? Yes, I covered that briefly a moment ago and that's something that we've shied away from in the past for the reasons that I discussed, particularly from a remarketing and marketability standpoint. But we're not proud. We sit back and we evaluate what happens in the marketplace all the time.

那麼，您說的是 PMA？是的，我剛才簡要地談到了這一點，這是我們過去出於我討論的原因而迴避的話題，特別是從再行銷和行銷的角度來看。但我們並不驕傲。我們坐下來，不斷評估市場上發生的事情。

Got it. And your utilization rates prior to COVID were in the very high [80%s]. And I think I missed what the utilization rate was this quarter, but it just seems like through Q2, you're on 84%. And I was curious given how strong the environment is why those utilization rates aren't just through the roof?

知道了。在疫情之前，你們的使用率非常高[80%的]。我想我錯過了本季度的利用率，但看起來到第二季度，利用率已經達到 84%。我很好奇，考慮到環境如此嚴峻，為什麼利用率沒有大幅提升？

Yeah, and again, I touched on that briefly earlier, so I would point you back to those prior comments.

是的，我之前已經簡要地提到過這一點，所以我想讓您回顧一下之前的評論。

Okay, thank you. Thanks very much.

好的，謝謝。非常感謝。

You bet. Thank you.

當然。謝謝。

Josh Sullivan, The Benchmark Company.

喬許‧沙利文 (Josh Sullivan)，The Benchmark Company。

Hey, good morning.

嘿，早安。

Hi, Josh.

嗨，喬希。

Just wanted to get your perspective on kind of the life cycle of the CFM and V2500. I think you talked about shop visits peaking in '25, then flattening out '27. But what's your perspective on the life of those Q curves and I guess for the V2500 as well? Does that seem right? Or do you think these engines given the market dynamics might have a little bit longer life cycle?

只是想了解您對 CFM 和 V2500 生命週期的看法。我記得您說過商店訪問量在 25 年達到頂峰，然後在 27 年趨於平穩。但是，您對這些 Q 曲線的壽命有何看法？這樣看起來對嗎？或者您認為考慮到市場動態，這些引擎的生命週期可能會更長一些？

I think the engines in general have a long time to continue in operation on wing. The 5B, the 7B, V2500, a lot of these, I'd say, slightly less than half haven't even had their first shop visit yet. So I think they've got a lot of longevity.

我認為發動機通常可以在機翼上繼續運行很長時間。5B、7B、V2500，其中很多，我想說，略少於一半甚至還沒有第一次去商店參觀過。所以我認為它們的壽命很長。

But you've also got the introduction of a lot of newer generation assets as well, the LEAP, the GEnx, the GTF. So that's why we're trying to really make sure we have a well-balanced portfolio that's of the most in-demand asset types for our customers going forward.

但同時也引進了許多新一代資產，如LEAP、GEnx、GTF。因此，我們要努力確保我們擁有一個均衡的投資組合，其中包含未來客戶最需要的資產類型。

And then you talked a bit about originations for leases. You mentioned the Air India deal. How important is it to have a dynamic offering at this point? Is the market strong enough where it's just get out there or the specialization offerings that come with a lot of your lease constructs, is that important or more important than it's been in the past?

然後您談了一些關於租賃起源的問題。您提到了印度航空的交易。此時此刻，提供動態服務有多重要？市場是否足夠強大，足以讓企業走出去，或許多租賃結構附帶的專業化產品，這是否比過去更重要？

Look, I think this is certainly a seller's market if you've got assets. I think if you're a lessor and you have the right in-demand assets, you're going to be doing okay right now. But our model and our programmatic business definitely enables us to fetch a premium return relative to competition.

看，我認為如果你有資產，這肯定是一個賣方市場。我認為，如果你是出租人，並且擁有合適的熱銷資產，那麼你現在的處境就會不錯。但我們的模式和程式化業務絕對能讓我們獲得比競爭對手更高的回報。

And I think it offers an element of resilience too. If and when things do change, having that long term built-in programmatic work is important for helping maintain long-term demand for the assets.

我認為它也提供了一定的彈性元素。如果情況確實發生變化，那麼擁有長期的內建程式化工作對於幫助維持對資產的長期需求非常重要。

[They] give you the time.

[他們]給你時間。

Thanks.

謝謝。

This concludes today's call. Thank you so much for your participation. You may now disconnect.

今天的電話會議到此結束。非常感謝您的參與。您現在可以斷開連線。