SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
(Mark One)
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the Quarterly Period Ended June 30, 2002
OR
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Commission File Number: 0-28774
WILLIS LEASE FINANCE CORPORATION
(Exact name of registrant as specified in its charter)
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Delaware |
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68-0070656 |
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(State or other jurisdiction of incorporation or organization) |
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(IRS Employer Identification No.) |
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2320 Marinship Way, Suite 300 |
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94965 |
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Sausalito, CA |
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(Zip Code) |
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(Address of principal executive offices) |
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Registrant’s telephone number, including area code (415) 331-5281
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ý No o
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date:
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Title of Each Class |
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Outstanding at August 9, 2002 |
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Common Stock, $0.01 Par Value |
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8,833,978 |
WILLIS LEASE FINANCE CORPORATION
AND SUBSIDIARIES
INDEX
2
WILLIS
LEASE FINANCE CORPORATION
AND SUBSIDIARIES
(In thousands, except share data)
(Unaudited)
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June 30, |
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December 31, |
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ASSETS |
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Cash and cash equivalents including restricted cash of $25,929 and $20,351 at June 30, 2002 and December 31, 2001, respectively |
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$ |
40,318 |
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$ |
24,817 |
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Equipment held for operating lease, less accumulated depreciation of $49,302 and $40,097 at June 30, 2002 and December 31, 2001, respectively |
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493,854 |
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488,042 |
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Net investment in direct finance lease |
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7,073 |
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7,299 |
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Operating lease related receivable, net of allowances of $284 and $175 at June 30, 2002 and December 31, 2001, respectively |
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3,219 |
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2,488 |
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Net assets of discontinued operations |
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— |
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1,130 |
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Investments |
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1,480 |
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1,480 |
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Assets under derivative instruments |
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499 |
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— |
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Other assets |
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6,742 |
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7,197 |
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Total assets |
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$ |
553,185 |
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$ |
532,453 |
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LIABILITIES AND SHAREHOLDERS’ EQUITY |
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Liabilities: |
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Accounts payable and accrued expenses |
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$ |
16,280 |
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$ |
4,450 |
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Liabilities under derivative instruments |
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1,990 |
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2,906 |
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Deferred income taxes |
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23,893 |
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22,804 |
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Notes payable |
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361,708 |
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359,547 |
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Maintenance reserves |
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34,908 |
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31,761 |
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Security deposits |
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5,232 |
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4,630 |
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Unearned lease revenue |
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5,586 |
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4,774 |
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Total liabilities |
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449,597 |
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430,872 |
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Shareholders’ equity: |
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Preferred stock ($0.01 par value, 5,000,000 shares authorized; none outstanding) |
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— |
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— |
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Common stock, ($0.01 par value, 20,000,000 shares authorized; 8,830,181 and 8,825,953 shares issued and outstanding as of June 30, 2002 and December 31, 2001, respectively) |
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88 |
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88 |
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Paid-in capital in excess of par |
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61,555 |
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61,532 |
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Accumulated other comprehensive loss, net of tax of $871 and $1,091 as of June 30, 2002 and December 31, 2001, respectively |
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(1,374 |
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(1,815 |
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Retained earnings |
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43,319 |
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41,776 |
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Total shareholders’ equity |
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103,588 |
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101,581 |
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Total liabilities and shareholders’ equity |
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$ |
553,185 |
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$ |
532,453 |
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See accompanying notes to the consolidated financial statements.
3
WILLIS
LEASE FINANCE CORPORATION
AND SUBSIDIARIES
Consolidated Statements of Income
(In thousands, except per share data)
(Unaudited)
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Three Months Ended |
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Six Months Ended |
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2002 |
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2001 |
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2002 |
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2001 |
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REVENUE |
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Lease revenue |
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$ |
13,560 |
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$ |
15,605 |
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$ |
27,177 |
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$ |
30,127 |
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(Loss)/gain on sale of leased equipment |
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(152 |
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3,622 |
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583 |
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6,197 |
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Total revenue |
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13,408 |
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19,227 |
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27,760 |
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36,324 |
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EXPENSES |
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Depreciation expense |
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4,791 |
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4,413 |
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9,508 |
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8,061 |
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General and administrative |
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3,087 |
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3,665 |
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6,778 |
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6,879 |
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Total expenses |
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7,878 |
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8,078 |
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16,286 |
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14,940 |
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Earnings from operations |
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5,530 |
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11,149 |
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11,474 |
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21,384 |
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Interest expense |
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4,774 |
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6,469 |
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9,298 |
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12,754 |
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Interest income |
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(145 |
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(269 |
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(235 |
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(524 |
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Residual share |
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— |
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