Willis Lease Finance Corp (WLFC) 2025 Q1 法說會逐字稿

(Operator Instructions) Good day and welcome to the Willis Lease Finance Corporation first-quarter 2025 earnings call. Today's conference is being recorded.

（操作員指示）大家好，歡迎參加 Willis Lease Finance Corporation 2025 年第一季財報電話會議。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 and growth initiatives. Please note that these forward-looking statements are based on current expectations and assumptions, which are subject to risks and uncertainties.

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、公司前景以及預期的投資和成長計畫的預期陳述。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。

These statements reflect WLFC's views only as of today. They should not be relied upon as representatives of views as many 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.

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. 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, WLSC'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 WLSC's website at https://www.wlfc.global/investor-relations.

這些聲明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。有關可能影響 WLFC 財務表現的重大風險和其他重要因素的進一步討論，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 WLSC 最新的 10-Q 表季度報告、10-K 表年度報告和其他定期報告，這些報告可在 WLSC 網站的投資者關係部分找到，網址為 https://www.mrel.grel）n.grel。

At this time, I'd like to turn the conference over to Austin Willis, Chief Financial Officer (sic - "Chief Executive Officer"). Please go ahead.

現在，我想將會議交給財務長 Austin Willis（原文如此 - “首席執行官”）。請繼續。

Thank you, operator, and thank you all for joining us. On our call today, I'm joined by Scott Flaherty, our Chief Financial Officer, and Brian Hole, our President.

謝謝接線生，也謝謝大家加入我們。在我們今天的電話會議上，我們的財務長 Scott Flaherty 和總裁 Brian Hole 也參加了會議。

In our first quarter, WLFC continued to deliver strong financial performance underpinned by the growth of our core Leasing business. While average utilization for the quarter was 79.9%, we ended the quarter at over 86%, evidencing our ability to produce revenue from off-lease engine purchases in a timely manner.

在第一季度，WLFC 繼續取得強勁的財務業績，這得益於我們核心租賃業務的成長。雖然本季的平均利用率為 79.9%，但本季末我們的利用率卻超過了 86%，這證明我們有能力及時從租賃期滿的引擎購買中產生收入。

For the first quarter, our total revenue was $157.7 million and pre-tax income was $25.2 million. Our performance has enabled us to return capital to our shareholders while meaningfully expanding our business, and in April, we paid our fourth consecutive quarterly dividend of $0.25 per share. In a moment, Scott will provide more detail on our results.

第一季度，我們的總收入為 1.577 億美元，稅前收入為 2,520 萬美元。我們的業績使我們能夠向股東返還資本，同時大幅擴大我們的業務，今年 4 月，我們連續第四個季度派發每股 0.25 美元的股息。稍後，斯科特將提供有關我們結果的更多詳細資訊。

Following a transformative 2024, we were off to a strong start to the year, particularly as our differentiated flywheel business model enables us to generate premium returns. The macroeconomic concerns over tariffs have created market volatility, but the drivers of our business over the long-term remain unchanged.

在經歷了變革性的 2024 年之後，我們迎來了強勁的開局，尤其是我們差異化的飛輪業務模式使我們能夠獲得優質的回報。對關稅的宏觀經濟擔憂造成了市場波動，但我們業務的長期驅動力保持不變。

The cost of new engines continues to drive operators towards Leasing. And our maintenance capabilities and programs aid cost conscious airlines who would prefer to focus on flying passengers rather than engine maintenance planning.

新引擎的成本繼續推動營運商走向租賃。我們的維護能力和計劃可以幫助那些注重成本的航空公司，他們更願意專注於飛行乘客而不是發動機維護計劃。

We remain confident in our business model and ability to continue to lead the sector in value creation. To that end, I want to highlight three notable transactions announced during the quarter that advance our strategy to provide efficient solutions to airlines. For those of you on the webcast, we have some accompanying slides.

我們對我們的商業模式和繼續引領產業價值創造的能力充滿信心。為此，我想強調本季宣布的三項值得注意的交易，這些交易推進了我們為航空公司提供高效解決方案的策略。對於參加網路直播的各位，我們準備了一些投影片。

First, in February, we announced that we would exercise purchase rights to buy 30 additional LEAP engines from CSM International, a joint venture between GE Aerospace and Safran Aircraft Engines. The purchase includes LEAP-1A engines for the Airbus A320neo family of aircraft and LEAP-1B engines for the Boeing 737 Max. These engines represent an important investment that will enable us to provide additional support to operators of these popular engines and aircraft.

首先，我們在二月宣布將行使購買權，從通用電氣航空航太公司和賽峰飛機發動機公司的合資企業CSM國際公司購買另外30台LEAP發動機。此次採購包括用於空中巴士 A320neo 系列飛機的 LEAP-1A 發動機和用於波音 737 Max 的 LEAP-1B 發動機。這些發動機代表著一項重要的投資，使我們能夠為這些流行發動機和飛機的運營商提供額外的支援。

This purchase aligns with our vision to pioneer services and solutions that drive more sustainable operations. And is consistent with our historical strategy of always having the most in-demand assets for our customers.

此次收購符合我們開拓推動更永續營運的服務和解決方案的願景。這與我們始終為客戶提供最需要的資產的歷史策略一致。

Second, in March, we announced a new constant thrust deal with Air India Express for CFM56-7B engines expected to close in the second quarter, which further builds on our existing partnership with Air India that began with our first transaction back in 2022. To reiterate, constant thrust is a product we created over a decade ago in which we do a sale and lease back on an airline's fleet of aircraft or engines, and when an engine becomes unserviceable, we replace it with another from our fleet, managing the unserviceable engine through our maintenance and services businesses.

其次，3 月份，我們宣布與印度航空快捷達成一項新的 CFM56-7B 發動機恆推力交易，預計將於第二季度完成，這進一步鞏固了我們與印度航空的現有合作夥伴關係，該合作夥伴關係始於 2022 年的首筆交易。重申一下，恆定推力是我們十多年前創造的一款產品，我們對航空公司的飛機或發動機進行售後回租，當某個發動機無法使用時，我們會用我們機隊中的另一個發動機替換它，並通過我們的維護和服務業務來管理無法使用的發動機。

The downtime for an airline is as little as one day, which delivers a level of efficiency and cost savings unobtainable through traditional maintenance or leasing arrangements. We value our partnership with Air India and believe that their decision to engage in another constant thrust deal with us is indicative of the value that it provides operators compared with alternatives.

航空公司的停機時間只有一天，這帶來了傳統維護或租賃安排無法實現的效率和成本節約。我們重視與印度航空的合作夥伴關係，並相信他們決定與我們達成另一項恆定推力協議，這表明與其他選擇相比，它為營運商提供了價值。

As discussed on our fourth-quarter 2024 earnings call, we believe constant thrust will attract heightened demand as airlines look to transition from legacy fleets into neo and Max aircraft. We look forward to continuing to support the growth of the Indian aviation industry and providing innovative solutions to our global customers.

正如我們在 2024 年第四季財報電話會議上所討論的那樣，我們相信，隨著航空公司尋求從傳統機隊過渡到 neo 和 Max 飛機，恆定推力將吸引更高的需求。我們期待繼續支持印度航空業的發展，並為我們的全球客戶提供創新的解決方案。

And third, in March, we announced a joint venture to build an engine test facility in West Palm Beach, Florida to address the shortage of similar facilities in North America. The shortage of adequate testing capacity is causing a logjam in the industry, constraining throughput and slowing engine repair turn times.

第三，三月份，我們宣布成立合資公司，在佛羅裡達州西棕櫚灘建立引擎測試設施，以解決北美類似設施短缺的問題。測試能力不足導致行業陷入僵局，限制了吞吐量並延長了引擎維修週期。

This collaboration with Global Engine Maintenance and Engine MRO will allow us to test our engines, our customers' engines, GEM's customers' engines, as well as third parties who want us to test engines for them. By combining our engine testing needs with that of another MRO, we can offset much of the cost with the base load provided by the shareholders and seek additional income by offering the service to third parties. The test cell will initially focus on CFM56-5B and 7B engines, but we'll have the capability to test more modern variants in the future with slight modification.

與 Global Engine Maintenance 和 Engine MRO 的合作將使我們能夠測試我們的引擎、我們客戶的引擎、GEM 客戶的引擎以及希望我們為他們測試引擎的第三方。透過將我們的引擎測試需求與其他 MRO 的需求相結合，我們可以用股東提供的基本負載抵消大部分成本，並透過向第三方提供服務來尋求額外收入。測試單元最初將專注於 CFM56-5B 和 7B 發動機，但未來我們將有能力透過輕微修改來測試更現代的型號。

Finally, I want to reiterate the strength and expertise of our team as the aviation industry grapples with ongoing macroeconomic uncertainty. Demand for our products and services remains robust, both domestically and abroad. However, as always, we are prepared for the changes that could come as a result of the volatility experienced over the previous few months.

最後，在航空業努力應對持續的宏觀經濟不確定性之際，我想重申我們團隊的實力和專業知識。國內外對我們的產品和服務的需求依然強勁。然而，與往常一樣，我們已經做好了應對過去幾個月波動可能帶來的變化的準備。

The tariffs present challenges as well as opportunities. We have operated through multiple economic cycles and industry disrupting events in our 45 plus years of operation, and we stand prepared to respond as necessary. Our deep understanding of our customers' needs and the assets we manage will put us in the best position to prosper in any environment we face going forward.

關稅既帶來挑戰，也帶來機會。在我們 45 多年的營運中，我們經歷了多個經濟週期和行業動盪事件，我們隨時準備在必要時做出應對。我們對客戶需求和所管理資產的深刻理解將使我們在未來面臨的任何環境中都處於最佳地位並取得成功。

And with that, I'll hand it over to Scott Flaherty, our CFO, to discuss our financial performance in greater depth.

接下來，我將把時間交給我們的財務長 Scott Flaherty，更深入地討論我們的財務表現。

Thank you, Austin, and good morning, all. As you can see from our P&L, we are off to a good start in 2025. Q1 produced record quarterly revenues of $157.7 million, driving $25.3 million of earnings before taxes or EBT. Our consolidated revenues of $157.7 million were up 33% from the comparable quarter in 2024 and were driven by our core lease rent, revenue, and maintenance reserve revenues, which were further enhanced by our vertically integrated services business.

謝謝你，奧斯汀，大家早安。從我們的損益表中可以看出，我們在 2025 年取得了良好的開端。第一季創造了創紀錄的 1.577 億美元季度收入，稅前利潤（EBT）達到 2,530 萬美元。我們的綜合收入為 1.577 億美元，較 2024 年同期成長 33%，這主要得益於我們的核心租賃租金、收入和維護儲備收入，而我們的垂直整​​合服務業務進一步增強了這些收入。

Walking through the P&L as it relates to revenue, core lease rent revenue for the quarter was $67.7 million and interest revenue was $3.9 million, which reflects interest income on long-term loan-like financings. Growth in these line items primarily reflects our increased total portfolio size of $2.82 billion as of March 31.

從與收入相關的損益表中可以看出，本季核心租賃租金收入為 6,770 萬美元，利息收入為 390 萬美元，反映了長期貸款類融資的利息收入。這些項目的成長主要反映了我們截至 3 月 31 日的總投資組合規模增加至 28.2 億美元。

Our total own portfolio is reflected on our balance sheet as equipment held for operating lease, maintenance rights, notes receivable, and investment and sales type leases. We have seen portfolio utilization grow from 76.7% at year-end 2024 to 86.4% by the end of Q1, an almost 10-point pick-up as we were able to quickly deploy onto lease our December 2024 purchase of nine GTF engines from Pratt & Whitney. Additionally, we continue to see a solid average lease rate factor across the portfolio of 1.0%.

我們的資產負債表上反映出我們的全部自有投資組合為經營租賃、維護權、應收票據以及投資和銷售型租賃持有的設備。我們看到投資組合利用率從 2024 年底的 76.7% 增長到第一季末的 86.4%，增長了近 10 個百分點，因為我們能夠迅速將 2024 年 12 月從普惠公司購買的 9 台 GTF 發動機部署到租賃中。此外，我們繼續看到整個投資組合的平均租賃率保持在 1.0% 的穩定水平。

Maintenance reserve revenues for the quarter were $54.9 million, up $11 million or 25% from the comparable quarter in 2024. As you peel back the numbers, you can see that $19.6 million of these maintenance reserve revenues were long-term maintenance reserve revenue associated with engines coming off-lease and the associated elimination of any maintenance reserve liabilities.

本季維護儲備收入為 5,490 萬美元，比 2024 年同期增加 1,100 萬美元，增幅為 25%。仔細分析這些數字，您會發現其中 1960 萬美元的維護儲備收入是與發動機租賃期滿以及隨之而來的任何維護儲備負債的消除相關的長期維護儲備收入。

$7.7 million of the $9.6 million related to an end of lease payment for which the company has subsequently been paid by a Chinese-based lessee customer. $45.3 million of our maintenance reserve revenues were short-term maintenance reserves compared to $37.6 million in the prior comparable period. This increase in short-term maintenance reserve revenue was influenced by an increase in the number of engines on short-term lease conditions and the systematic contractual increase in the hourly and cyclical usage rates on our engine. And to a lesser extent in this quarter, the timing of revenue recognition of in substance fixed payments.

960 萬美元中的 770 萬美元與租賃終止付款有關，該公司隨後已從一家中國承租客戶處收到這筆款項。我們的維護儲備收入中有 4,530 萬美元是短期維護儲備，而去年同期為 3,760 萬美元。短期維護儲備收入的增加受到短期租賃條件下的發動機數量增加以及我們發動機每小時和周期性使用率的系統合約增加的影響。本季度，實質固定付款的收入確認時間已減少。

Spare Parts and Equipment sales to third parties increased by $15.0 million or 455% to $18.2 million in Q1 2025, compared to $3.3 million in the comparable quarter. This increase was driven by the demand for surplus material that we are seeing as operators extend the lives of their current generation engine portfolios. In addition, there was a discrete $7.0 million sale in the quarter, as well as $2.2 million of equipment sales for which there were none in the comparable period.

2025 年第一季度，對第三方的備件和設備銷售額增加了 1,500 萬美元，或 455%，達到 1,820 萬美元，而去年同期為 330 萬美元。這種增長是由運營商延長其當前一代發動機組合的使用壽命而導致的對剩餘材料的需求所推動的。此外，本季還有一筆 700 萬美元的獨立銷售額，以及 220 萬美元的設備銷售額，而同期沒有此類銷售額。

WASl, our spare parts business, provides a valuable outlet for the company to recognize residual values on our engine portfolio while also providing feedstock for our and our customers' fleets in a tight parts market. The recycling of these spare parts often occurs at one of our two engine MRO facilities, which are located in Coconut Creek, Florida and Bridge in Wales.

我們的備件業務WASl為公司提供了一個寶貴的管道，使其能夠實現引擎產品組合的剩餘價值，同時在緊張的零件市場中為我們和客戶的車隊提供原料。這些備件的回收通常在我們的兩個引擎 MRO 設施之一進行，這兩個設施位於佛羅裡達州的椰子溪和威爾斯的布里奇。

Gain on sale of leased equipment together with our gain on sale of financial assets, our net revenue metric aggregated to $4.8 million in the first quarter, down slightly from $9.2 million in the comparable period. This gain was associated with gross equipment sales of $49.8 million, representing an effective 10% margin on such sales.

租賃設備銷售收益加上金融資產銷售收益，我們的淨收入指標在第一季總計為 480 萬美元，略低於去年同期的 920 萬美元。這項收益與 4,980 萬美元的設備總銷售額有關，相當於此類銷售的有效利潤率為 10%。

Our trading activity tends to be lumpy and varies from quarter to quarter due to the nature of the business. Trading is an important part of the business and keeps our portfolio relevant.

由於業務性質，我們的交易活動往往不規律，並且每季都會有所不同。交易是業務的重要組成部分，使我們的投資組合保持相關性。

Maintenance service revenue, which represents fleet management, engine and aircraft storage and repair services, and revenues related to management of fixed-base operator services was $5.6 million in the first quarter, up slightly from the comparable period in 2024. Gross margins came in at 5% as we are still in the build out stages of our fixed-based operator services business, which influences our aggregate margins. We believe that our maintenance service offerings both enhance and create lease opportunities for the business and provide further vertical integration supporting the full life cycle of the company's assets.

第一季維修服務收入（包括機隊管理、發動機和飛機儲存和維修服務以及與固定基地運營商服務管理相關的收入）為 560 萬美元，略高於 2024 年同期。毛利率為 5%，因為我們的固定業者服務業務仍處於建設階段，這影響了我們的總利潤率。我們相信，我們提供的維護服務既能增強和創造業務租賃機會，又能提供進一步的垂直整合，以支援公司資產的整個生命週期。

On the expense side of the equation, depreciation in the first quarter was up 11.3% to $25 million for the quarter, as we increase the portfolio size as well as put new engines on lease, which starts their depreciation through our P&L. Write down of equipment was $2.1 million for the quarter, which represented an impairment on five engines, which were all moved to held for sale.

從費用角度來看，第一季的折舊額上漲了 11.3%，達到 2500 萬美元，因為我們增加了投資組合規模，並租賃了新發動機，這導致它們的折舊開始計入我們的損益表。本季設備減損金額為 210 萬美元，代表五台引擎發生減損，這些引擎均轉為持有待售狀態。

G&A was $47.7 million in the first quarter compared to $29.6 million in the comparable period in 2024. Increases in the overall G&A spend were mainly related to $11.4 million in consultant-related fees, which are predominantly related to the company's sustainable aviation fuel project.

第一季的 G&A 費用為 4,770 萬美元，而 2024 年同期的 G&A 費用為 2,960 萬美元。整體一般及行政費用的增加主要與 1,140 萬美元的顧問相關費用有關，這些費用主要與公司的可持續航空燃料項目有關。

Given the stage of this project's development, GAAP dictates that these costs are expense rather than capitalized. The company has been awarded a UK governmental grant, which will ultimately offset a portion of these charges, but such grant will not be recognized until cash is received.

考慮到該專案的開發階段，GAAP 規定這些成本是費用而不是資本化。該公司已獲得英國政府的資助，這筆資助最終將抵消部分費用，但只有在收到現金後才能確認該資助。

We anticipate that first quarter spend, which represents licensing and engineering fees, represents the bulk of our net anticipated spend inclusive of grant in 2025. In addition, there was $6.9 million of share-based compensation, which was influenced by the rise in the company's share price relative to Q1 2024 and represented a $3.1 million increase from the comparable period. And approximately $1.2 million of wage increases due to additional headcount and general salary escalation as we grow the footprint of the overall business.

我們預計第一季的支出（包括許可證和工程費用）將占我們 2025 年預計淨支出（包括補助金）的大部分。此外，還有 690 萬美元的股權激勵費用，這受到該公司股價相對於 2024 年第一季上漲的影響，比同期增加了 310 萬美元。隨著我們整體業務範圍的擴大，員工人數增加和整體薪資上漲導致薪資增加約 120 萬美元。

Technical expense was $6.2 million in the first quarter, slightly down from $8.3 million in the comparable period in 2024. Technical expense generally relates to unplanned maintenance, whereas engine performance restorations tend to be planned, capitalized events.

第一季的技術費用為 620 萬美元，略低於 2024 年同期的 830 萬美元。技術費用通常與計劃外維護有關，而引擎性能恢復往往是計劃內的、資本化的事件。

Net finance costs were $32.1 million in the first quarter compared to $23.0 million in the comparable period in 2024. The increase in costs was related to an increase in indebtedness as total debt obligations increased from $1.7 billion at March 2024 to $2.2 billion at March 2025. As well as an increase in the quarterly weighted average cost of debt inclusive our interest rate hedge positions, which rose from 4.56% in Q1 2024 to 6.16% in Q1 2025.

第一季淨財務成本為 3,210 萬美元，而 2024 年同期為 2,300 萬美元。成本增加與債務增加有關，因為總債務從 2024 年 3 月的 17 億美元增加到 2025 年 3 月的 22 億美元。包括我們的利率對沖頭寸在內的季度加權平均債務成本也有所增加，從 2024 年第一季的 4.56% 上升至 2025 年第一季的 6.16%。

The company also picked up $1.4 million in [RAT-able] earnings from our 50% ownership interest in our Willis Mitsui and Co's Willis Joint Ventures. The company produced $15.5 million of net income attributable to common shareholders, which factors in GAAP taxes and the costs of our preferred equity.

該公司還從我們持有的 Willis Mitsui and Co's Willis Joint Ventures 的 50% 所有權權益中獲得了 140 萬美元的 [RAT-able] 收益。該公司實現了 1,550 萬美元的普通股股東淨利潤，其中包括 GAAP 稅和優先股成本。

Diluted weighted average income per share was $2.21 in Q1 2025. Net cash provided by operating activities was $41.0 million in the first quarter of 2025 as compared to $59.8 million in the first quarter of 2024.

2025 年第一季稀釋加權平均每股收益為 2.21 美元。2025 年第一季經營活動提供的淨現金為 4,100 萬美元，而 2024 年第一季為 5,980 萬美元。

The decrease was predominantly related to working capital where relative changes in accounts payable has a significant influence on the net cash provided by operating activities. Adjusting for working capital or changes in assets and liabilities, net cash provided by operating activities was $13 million higher in the first quarter of 2025 than in the comparable period in 2024.

減少主要與營運資本有關，其中應付帳款的相對變化對經營活動提供的淨現金有重大影響。經營運資本或資產負債變動調整後，2025 年第一季經營活動提供的淨現金比 2024 年同期高出 1,300 萬美元。

On the financing and capital structure side of the business, the company completed its fourth and fifth JOLCO financings in the first quarter, bringing total JOLCO financings at quarter-end to approximately $105 million. Subsequent to quarter end, the company completed its sixth JOLCO, bringing our total JOLCO financing to $125 million.

在業務的融資和資本結構方面，該公司在第一季完成了第四次和第五次 JOLCO 融資，使季度末的 JOLCO 融資總額達到約 1.05 億美元。本季末之後，公司完成了第六次 JOLCO，使我們的 JOLCO 總融資額達到 1.25 億美元。

We regularly access the capital markets as we endeavor to source competitively priced capital to continue to grow our balance sheet and P&L. In February of the first quarter, we paid our third regular quarterly dividend of $0.25 per share.

我們定期進入資本市場，努力尋找具有競爭力的資本，以繼續擴大我們的資產負債表和損益表。第一季 2 月份，我們支付了第三次定期季度股息，每股 0.25 美元。

Subsequent to quarter end, we declared our fourth consecutive regular quarterly dividend, which is expected to be paid on May 22, 2025, to stockholders of record at the close of business on May 12, 2025. We believe that our ability to pay a recurring dividend speaks to the health of the business and provides our shareholders with a moderate current cash yield on their investment while not degrading the strong cash flow characteristics and equity growth of the business, which supports our overall growth.

季度結束後，我們宣布了連續第四次定期季度股息，預計將於 2025 年 5 月 22 日支付給 2025 年 5 月 12 日營業結束時登記在冊的股東。我們相信，我們支付經常性股息的能力表明了業務的健康狀況，並為我們的股東提供了適度的當前投資現金收益，同時又不會降低業務強勁的現金流特徵和股權增長，從而支持我們的整體增長。

With respect to leverage, as defined as total debt obligations, net of cash and restricted cash to equity inclusive of preferred stock, are leveraged tick lower to 3.31 times as compared to 3.48 times at year-end 2024. We mentioned with our annual results that our leverage had climbed in the fourth quarter as we took advantage of some year-end asset purchase opportunities, and we have now been able to start to work that leverage back down in the first quarter.

就槓桿率而言，其定義為扣除現金和限制性現金後的總債務與優先股在內的股權之比，槓桿率從 2024 年底的 3.48 倍略微下降至 3.31 倍。我們在年度業績中提到，由於我們利用了一些年底的資產購買機會，我們的槓桿率在第四季度有所上升，現在我們已經能夠在第一季開始降低槓桿率。

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

現在，我開始回答問題。操作員。

(Operator Instructions) Hillary Cacanando, Deutsche Bank.

（操作員指示）德意志銀行的希拉蕊·卡卡南多。

I just wanted to find out if you're impacted in any way by, like direct impact, directly impacted by tariffs. I guess I wasn't sure if you import any like parts or any materials from overseas for your maintenance services or anything like that if you will be impacted directly. Thank you.

我只是想了解您是否受到任何影響，例如直接影響，關稅的直接影響。我想我不確定您是否從海外進口任何類似的零件或材料用於您的維護服務或類似的東西，如果您會受到直接影響。謝謝。

So thus far, our impacts have really been de minimis both on the import side of parts, as well as on the leasing side. You got to remember a lot of our business, at least with our MROs, the parts come from our own parts capability, so we really haven't seen too much of an impact there yet.

因此到目前為止，無論是在零件進口方面還是租賃方面，我們的影響實際上都是微不足道的。你必須記住我們的許多業務，至少對於我們的 MRO 來說，零件來自我們自己的零件能力，所以我們還沒有看到太大的影響。

And on the leasing side. by and large we really haven't seen very much of an impact. There is a little bit of noise around China early on with respect to the implication of tariffs on lease rent revenue, but it looks like that has largely gone away, so things are pretty much business as usual.

在租賃方面。總的來說，我們確實沒有看到太大的影響。早些時候，中國國內對於關稅對租賃租金收入的影響存在一些爭議，但目前看來這種爭議基本上已經消散，一切基本上都照常。

Okay, so not too much. I mean, so pretty much, I guess, minimal impact. Okay. Great.

好的，所以不要太多。我的意思是，我猜，影響很小。好的。偉大的。

And then I just wanted to get your thoughts on what happens to the value of your existing portfolio in terms of market values and lease rates If tariffs, let's say, escalate with Europe, let's say 90 days. I would think that newer aircraft gets expensive, so maybe older asset values and these rates go up.

然後，我只是想聽聽您對現有投資組合在市場價值和租賃率方面價值會發生什麼變化的看法，如果歐洲的關稅上升，比如說 90 天。我認為較新的飛機會變得昂貴，因此較舊的資產價值和這些費率可能會上升。

But then I don't know what would happen to the demand side and like then what the demand for travel, let's say, or for aircraft, so like what the net impact will be on the existing assets. So just wanted to get your thoughts on what you think the market values on these rates will be for all the, maybe like, your existing portfolio.

但我不知道需求方面會發生什麼，例如旅行需求或飛機需求會怎樣，這對現有資產的淨影響會是什麼。所以只是想聽聽您的看法，您認為這些利率的市場價值對於您現有的所有投資組合來說應該是多少。

Sure, so you know it's hard to tell. I mean the reality is trying to look at what the future looks like at this point is really nothing more than pure speculation. That being said, I don't think it's unreasonable to expect some degree of asset inflation with our existing portfolio. I think when engines coming out of the OEMs are likely to be a bit more expensive because of the tariffs that they incur, I think that will drive up values elsewhere.

當然，你知道這很難說。我的意思是，現實情況是，試圖預測未來會是什麼樣子，實際上只不過是純粹的猜測。話雖如此，我認為預期我們現有的投資組合會出現一定程度的資產通膨並不是不合理的。我認為，當原始設備製造商生產的引擎可能因為產生的關稅而稍微貴一些時，我認為這會推高其他地方的價值。

And exactly to your point, I think there's a reasonable case to be said that incumbent assets in particular jurisdictions are likely to see some level of appreciation as well because, obviously, they won't be subject to cross-border tariffs should reciprocals be put in place. And then, finally, I think there's a scenario where less expensive assets could be more attractive even if they do cross borders just by the nature of the tariff being a percentage on value.

正如您所說，我認為有合理的理由表明，特定司法管轄區的現有資產也可能會出現一定程度的升值，因為如果實施互惠政策，這些資產顯然不會受到跨境關稅的影響。最後，我認為存在這樣一種情況，即即使廉價資產跨越國界，它們也可能更有吸引力，因為關稅的性質是價值的百分比。

Got it. Great. Thank you very much. Very helpful.

知道了。偉大的。非常感謝。非常有幫助。

(Operator Instructions) Louis Raffetto, Wolfe Research.

（操作員指示）Louis Raffetto，Wolfe Research。

It's a nice step up in the Spare Parts sales. I guess, maybe you can say, what are you seeing in the USM market? It's been tight for the right assets for a long time, I guess. And you know many engines were being repaired as opposed to being torn down. Are you seeing a shift there and how are you balancing the decision to either repair an engine or tear it down?

這是備件銷售的一次良好進步。我想，也許您可以說，您在 USM 市場上看到了什麼？我想，長期以來，合適的資產一直很緊張。你知道，許多引擎正在被修理，而不是被拆除。您是否看到了其中的轉變？您如何平衡修理引擎還是拆除引擎的決定？

Yeah, so a lot of the step up in Parts sales from the from our Parts business was due to a large transaction that we had where we purchased a portfolio of parts and then subsequently sold them back-to-back. But even taking that into account, we still did have a pretty good step up in Parts sales. And I think that is symbolic of the overall demand for used serviceable now and we expect that to continue for the foreseeable future.

是的，我們的零件業務的零件銷售額的大幅增長很大程度上歸功於我們的一筆大額交易，我們購買了一系列零件，然後將它們連續出售。但即使考慮到這一點，我們的零件銷售仍然取得了相當大的成長。我認為這象徵著目前對二手車的整體需求，我們預計這種趨勢在可預見的未來將持續下去。

As we think about repairing engines ourselves, we run a process. Whenever one of our engines becomes unserviceable, we look at do we part it out and what does that net revenue generate? Do we fix that engine and what's the present value based upon that?

當我們考慮自己修理引擎時，我們會運行一個流程。每當我們的一台引擎無法使用時，我們就會考慮是否要將其拆掉，以及拆掉後能產生多少淨收入？我們是否修理了引擎？其當前價值為何？

And then we'll also solicit bids from the third-party market as to determine what that would get in cash for us right now. And, ultimately, we look at the three scenarios and just do a present value analysis.

然後，我們還將徵求第三方市場的投標，以確定目前我們可以獲得多少現金。最後，我們研究這三種情境並進行現值分析。

And then, finally, we also look at does it make sense to repair engines versus what we can purchase engines for out on the market. And historically, we've been pretty darn good at spot market trading, so in many cases we can actually procure engines on a better value on a cost per cycle basis than one can overhauling them.

最後，我們還要考慮修理引擎是否有意義，以及我們可以在市場上購買引擎嗎。從歷史上看，我們在現貨市場交易方面一直非常擅長，因此在許多情況下，我們實際上可以以比大修更高的每循環成本來購買引擎。

All right. Great. I appreciate that. Maybe just two quick clarification questions. The one engine that was sold out of the Spare Parts and Equipment, I'll call it portfolio versus out of the leased engine portfolio. Just like what's the differentiation between those?

好的。偉大的。我很感激。也許只是兩個快速澄清的問題。售罄備件和設備中的一台發動機，我將其稱為組合，而不是租賃發動機組合。就像它們之間有什麼區別？

I think, are you referring to the Spare Parts? Yeah, the $77 million of Spare Parts?

我想，您指的是備件嗎？是的，價值 7,700 萬美元的備件？

I know it just in that paragraph it said --

我知道那一段說--

Yeah, sure. So what you probably saw is if you look at the line item of our financials, it's Spare Parts and Equipment sales, right? So in the comparable period, we did not have any Equipment sales, and what Equipment sales are is really effectively like a trading, so it's not a lease asset, not an asset that was on lease.

是的，當然。因此，如果您查看我們的財務報表項目，您可能會發現它是備件和設備銷售，對嗎？因此，在可比期間，我們沒有任何設備銷售，而設備銷售實際上就像交易一樣，所以它不是租賃資產，也不是租賃資產。

It's an engine or piece of equipment that we bought and ultimately sold and without having it in a lease portfolio. So really what you saw in the quarter was a $2 million dollar step up in that one-line item, specifically related to that.

這是我們購買並最終出售的引擎或設備，並且沒有將其納入租賃組合。因此，您在本季真正看到的是，與此相關的單一項目增加了 200 萬美元。

Okay. Great. Appreciate that.

好的。偉大的。非常感謝。

Will Waller, M3.

威爾沃勒，M3。

Yeah, I just had a couple questions regarding the utilization rate. It was stated in the press release it was 76.7% at the end of the year of 2024. You mentioned the average, if I heard it right, was 79.9% for the quarter, and then the quarter ended at 86.4%. Is it safe to assume that the GTF engines that affected that at the end of the year weren't leased out until pretty close to the end of the first quarter based on what the average utilization rate was?

是的，我只是對利用率有幾個問題。新聞稿稱，到 2024 年底這一比例將達到 76.7%。如果我沒聽錯的話，您提到的平均值是本季的 79.9%，而本季結束時的平均值是 86.4%。根據平均利用率，是否可以安全地假設，影響年底業績的 GTF 引擎直到接近第一季末才租出？

That is a good assumption, right? So I think that if you go back and look, like you said, or we talk about quite often average utilization and then if you also look at the actual period ends, at the end of the year, we're at 76.67% utilization at the end of Q4 and now we're at 86.4%.

這是一個很好的假設，對嗎？所以我認為，如果你回過頭來看，就像你說的，或者我們經常談論平均利用率，然後如果你也看看實際期間結束時，在年底，我們在第四季度末的利用率為 76.67%，現在為 86.4%。

And a lot of that was related to some of the GTFs that we picked up late in the fourth quarter. And then over time, we've got that portfolio onto lease. And you're right, they all didn't go on lease at one point in time and some of those went on lease even late into the month of March.

其中很大一部分與我們在第四季末獲得的一些 GTF 有關。隨著時間的推移，我們將該投資組合轉化為租賃。你說得對，它們都沒有在某個時間點進行租賃，其中一些甚至在三月底才進行租賃。

And what is the going rate for say a GTF or a LEAP in today's market, and how does that compare with say six months ago?

那麼，目前市面上 GTF 或 LEAP 的行情是多少呢？與六個月前相比如何？

So, Will, I appreciate the question, but I hope you appreciate for competitive, reasons we're not going to get into specific lease rates on assets.

所以，威爾，我很感謝你的提問，但我希望你理解，出於競爭的原因，我們不會討論資產的具體租賃率。

Okay. And then as it relates to the long-term maintenance revenues, you walked through a number of numbers. And I might have heard something wrong, but there was $7 million related to a Chinese airline where some engines came back off the lease. Was that during the quarter or after the quarter end?

好的。然後，由於它與長期維護收入有關，您介紹了一些數字。我可能聽錯了，但這筆款項與一家中國航空公司的部分發動機租賃到期有關，金額高達 700 萬美元。那是在本季期間還是季度結束後？

Sure, so what that was in end of lease, so long-term related. And that was recognized in the quarter and cash was received subsequent to quarter end.

當然，那是在租約結束時，所以與長期相關。這在本季度得到了確認，並在季度末之後收到了現金。

Okay. Sounds good. So that but it was counted in the long-term maintenance revenue for the first quarter. that $7 million?

好的。聽起來不錯。但它被計入第一季的長期維護收入。那 700 萬美元？

Sure, it's a revenue recognition. Correct.

當然，這是收入確認。正確的。

Okay. Perfect. And then when I look at the liability, the maintenance reserve liability, it grew from year end $97.8 million to about $104.5 million at the end of the first quarter. So that's the additional build up that's occurring where you're having -- there's some probably lease extensions that are going on and so on, but that's where the buildup is, and then eventually that's what will become revenue once the engines are returned, correct?

好的。完美的。然後，當我查看負債、維護儲備負債時，它從年底的 9,780 萬美元增長到第一季末的約 1.045 億美元。所以這就是您正在進行的額外積累——可能正在進行一些租約延期等等，但這就是積累的地方，最終，一旦發動機歸還，這些就會變成收入，對嗎？

Correct.

正確的。

Okay, so in a sense that $104.5 million, that's in that maintenance reserve liability. Basically that is the revenue associated with the long-term leases that just haven't been recognized as income yet correct? And then it will be recognized once the engines are returned, similar to the seven that the Chinese airline returned.

好的，從某種意義上來說，這 1.045 億美元就是維護儲備責任。基本上，這是與長期租賃相關的收入，只是尚未確認為收入，對嗎？一旦發動機歸還，就會得到認可，類似於中國航空公司歸還的七台發動機。

Sure, so think about it like this, Will, like the short-term component are the monthly payments that we are getting from the operators for their usage, and those are not maintenance reserves. There, we would never have to give those back, right? So those are the monthly payments.

當然，威爾，請這樣想，短期部分是我們從營運商那裡獲得的使用費，而這些不是維護儲備。這樣，我們就永遠不需要歸還那些東西了，對吧？這些就是每個月的付款。

The long-term are the payments that come either at the end of the lease or the payments that we've received over the life of the lease that are the payments that are the balance that you see on the balance sheet. And at the end of the lease where the operator chooses not to shop visit that engine and return it in the condition in which it was provided to them, they give us the engine back in its current state and then we release those maintenance reserves and recognize them as revenues.

長期付款是指租賃期間結束時支付的款項或租賃期間收到的款項，這些付款是您在資產負債表上看到的餘額。在租賃期結束時，如果操作員選擇不對該引擎進行維修，而是將其以提供給他們的狀態歸還，他們會將引擎以當前狀態歸還給我們，然後我們釋放這些維護儲備並將其確認為收入。

Okay. Great. So those are sort of buildings, so in a way, when we're looking at things, if there are lease extensions going on, which it sounds like in the industry, there's of a lot higher than normal lease extensions going on. Then you're just going to always have a much higher number that's being deferred and not being recognized as revenue.

好的。偉大的。所以這些都是建築物，所以在某種程度上，當我們看待事物時，如果有租約延期，聽起來就像在行業中一樣，那麼租約延期的金額會比正常的高得多。那麼你就會一直有一個更高的數字被遞延並且不被確認為收入。

Whereas if it was a short-term lease, you'd be recognizing that all along, sort of all the way along the life of the lease. It wouldn't be one lump sum at the end.

而如果是短期租賃，您會在整個租賃期內一直意識到這一點。最後不會是一次付清的。

That's correct.

沒錯。

Okay. And the utilization rate changed a decent amount. I think historically, dating back three or six months ago, the last time that you disclosed that, about 53% of your leases were long-term leases, 47% were short-term leases. What is that mix at the end of the first quarter?

好的。利用率也發生了相當大的變化。我認為從歷史上看，追溯到三到六個月前，上次您披露時，大約 53％ 的租約是長期租約，47％ 是短期租約。第一季末的組合情況如何？

Yeah, so the mix is pretty similar. We usually keep it in the neighborhood of 50/50. And that short-term lease capability is really one of the drivers that differentiates us and enables us to do what we do both on the programmatic side as well as the trading side. Because that gives us the real-time information on what assets are worth so we can go out and speculatively buy them and put them out on lease.

是的，所以混合起來非常相似。我們通常將其保持在 50/50 左右。短期租賃能力確實是我們與眾不同的驅動力之一，使我們能夠在程序化方面和交易方面開展工作。因為這為我們提供了資產價值的實時信息，因此我們可以投機性地購買它們並將其出租。

And a good example of that is with some of the assets we purchased off lease at the end of the year, without having that real-time information, you're not going to be as certain about your ability to get those assets to produce revenue. And that's why we're able to get those assets on lease quickly.

一個很好的例子是，我們在年底購買的一些租賃資產，如果沒有即時訊息，你就無法確定是否有能力讓這些資產產生收入。這就是我們能夠快速租賃這些資產的原因。

Great. Thanks a lot. I appreciate it.

偉大的。多謝。我很感激。

(Operator Instructions) Eric Gregg, 43 Island Advisory.

（操作員指示）Eric Gregg，43 島諮詢處。

That's Four Three Island Advisory, but thank you. Great job on the lease rent revenue and maintenance reserve revenue growth this quarter, gentlemen. A few questions first for Scott and then one to finish up with you, Austin.

這是四三島警告，但還是謝謝。先生們，本季租賃租金收入和維護儲備收入成長表現優異。首先問史考特幾個問題，然後問你一個問題，奧斯汀。

The average quarterly gain on sale of flight equipment in 2024 was about $11.3 million. This quarter was less than $5 million. In such a strong environment, just curious why the quarter was much lower than what you've been averaging in the last four quarters and how you're thinking about likely gains on sale flight equipment in the coming quarters for 2025.

2024年飛行設備銷售平均季度收益約1,130萬美元。本季的金額不到 500 萬美元。在如此強勁的環境下，我只是好奇為什麼本季的業績遠低於過去四個季度的平均水平，以及您如何看待 2025 年未來幾季飛行設備銷售的可能成長。

Eric, it's always, it's hard to predict and it's hard to time exactly the trading component. But we continue to see significant value in the portfolio. And as we've talked about in the past, above and beyond the book value.

艾瑞克，這總是很難預測，而且很難準確掌握交易的時間。但我們仍然看到該投資組合的巨大價值。正如我們過去所討論的，超出了帳面價值。

So it really depends on how we package in any period assets that we are selling. So I think that we would really look to a consistent type margin over the longer-term, and I wouldn't judge any one specific period to dictate a longer-term margin.

因此，這實際上取決於我們如何包裝我們所銷售的任何時期資產。因此，我認為我們確實應該尋求長期一致的利潤率，而且我不會判斷任何一個特定時期來決定長期利潤率。

Okay. All right. Moving on to the consultant-related fees, the way the press release reads, it says the increasing consultant related fees predominantly related to the company's sustainable aviation fuel project.

好的。好的。談到顧問相關費用，新聞稿中稱，顧問相關費用的增加主要與公司的可持續航空燃料項目有關。

If this was an increase, is that an [11.4%] increase of what baseline in the prior year? Is it off of zero or is it off of some normal consultant fees are going out the door every quarter? I didn't find much in historical notes in the financials to be able to determine that.

如果這是一個成長，那麼與前一年相比，這個數字是否增加了 [11.4%]？它是從零開始計算的，還是從每季支付的一些正常顧問費用開始計算的？我在財務歷史記錄中沒有找到太多資料來確定這一點。

Yeah, so I would say, we don't disaggregate that, right, but it's a lot less material than the aggregate that you're seeing there. And that's why we specifically highlighted that, given the fact that it does jump out in that one period.

是的，所以我想說，我們不會將其分解，但是它比您在那裡看到的總量要少得多。這就是為什麼我們特別強調這一點，因為它確實在那個時期脫穎而出。

Yeah, and if I can add to what Scott's saying -- sorry, just to jump in. The amounts that we've experienced historically are pretty immaterial. The amounts that we're spending right now or that we've spent in this first quarter really represent the lion's share of what we expect the expense to be for this year.

是的，如果我可以補充一下斯科特所說的內容——抱歉，只是插一句。從歷史上看，我們所經歷的數量是相當微不足道的。我們目前正在支出的金額或我們在第一季已經支出的金額實際上代表了我們預計今年支出的大部分。

And you're saying the lion's share based on the credits you expect to get back from the UK government or whatever body that is on a net basis, correct?

您說的最大份額是基於您預計從英國政府或任何機構獲得的淨額信貸，對嗎？

Well, we do expect to get a fair amount back from the UK government when they pay us over the next quarters.

嗯，我們確實希望英國政府在接下來的幾季向我們支付款項時能收回相當多的金額。

Yes, okay. Great. And then, finally, this last question for you Austin. If this is a high-level question, but if you look back to year-end 2022 and go out to year-end 2024 where all this data is available, the owned number of engines that Willis has is up about 4%. The managed engine count is actually down over 14%.

是的，好的。偉大的。最後，我要問你最後一個問題，奧斯汀。如果這是一個高層次的問題，但如果你回顧 2022 年底並展望 2024 年底所有這些數據都可用，那麼 Willis 擁有的引擎數量將增加約 4%。管理的引擎數量實際上下降了 14% 以上。

But the number of employees is actually up about 60%. The question is this. With an asset base in terms of number of assets that hasn't grown much over the last few years, why is it necessary to have 60% more employees?

但實際上員工人數增加了約60%。問題是這樣的。在資產數量近幾年沒有太大成長的情況下，為什麼需要增加 60% 的員工？

Thanks. So yeah, I mean if you look at our portfolio by and large, it's considerably larger than it was in 2022, but I get your point on the quantity of assets being owned and managed. A lot of the growth you're seeing on the G&A side in headcount is really a function of the people that we have in our services businesses.

謝謝。是的，我的意思是，如果你看一下我們的投資組合，它比 2022 年的規模要大得多，但我明白你關於擁有和管理的資產數量的觀點。您所看到的一般及行政管理部門員工數量的增長實際上很大程度上取決於我們服務業務中的人員數量。

So Leasing has grown somewhat commensurate but to a lesser extent than the growth in our balance sheet. But we have grown as we have built out our engine MRO work US in Florida, our engine MRO in the UK, and our aircraft MRO in Teesside in the UK as well. So that's the predominant factor.

因此，租賃業務的成長與我們的資產負債表的成長相當，但幅度較小。但隨著我們在美國佛羅裡達州、英國以及英國蒂賽德建立引擎 MRO 業務，我們也不斷成長。這是主要因素。

And at this time we have no further signals. I'll turn the floor back to our speakers for any additional or closing remarks.

目前我們還沒有收到進一步的訊號。我將把發言權交還給發言人，請他們發表補充意見或結語。

Yeah, I'll make one last closing remark. Just to say we certainly don't know what the landscape of tariffs is going to look like going forward, but I will say that our platform is remarkably well structured to manage it because we do have the ability to manage and service our assets through our 145 repair stations both in the US and the UK, which will work well in the event that the world does become more of a bifurcated system where assets tend to live their lives more in particular regions. So I just wanted to quickly mention that and thank everybody for taking the time to be with us today.

是的，我最後再說一句話。只是說，我們當然不知道未來的關稅情況會是什麼樣子，但我要說的是，我們的平台結構非常好，可以管理它，因為我們確實有能力通過我們在美國和英國的 145 個維修站來管理和服務我們的資產，如果世界確實變得更加分裂，資產往往更多地集中在特定地區，這將發揮良好的作用。所以我只是想快速提一下這一點，並感謝大家今天抽出時間來參加我們的會議。

This concludes today's conference. We thank you for your participation. You may disconnect at this time.

今天的會議到此結束。我們感謝您的參與。您現在可以斷開連線。