Macquarie Infrastructure (MIC)

Jay Davis VP & Head, IR
Christopher Frost Chief Executive Officer
Liam Stewart Chief Financial Officer
Ian Zaffino Oppenheimer
Tristan Richardson SunTrust
TJ Schultz RBC Capital Markets
Jonathan Reeder Wells Fargo
Call transcript
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Good day ladies and gentlemen, and welcome to the Macquarie Infrastructure Corporation Second Quarter 2018 Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions for how to participate will follow at that time. [Operator Instructions] As a reminder, this conference call is being recorded. I'd like to turn the conference over to Mr. Investor of Head Davis, Relations. Jay begin. Sir, you may

Jay Davis

Corporation's Thank this call, Infrastructure of you, welcome to and earnings covering conference XXXX. Macquarie the quarter second

the is is Our webcast media. to today call being open and

website evening press downloaded financial In to this www.macquarie.com/mic. published were results at on financial discussing materials filed quarterly Form from the last release addition Exchange performance XX-Q Commission. the summarizing These and with our call, be on we've the our copies report may and a Securities released and

Before The prepared let that contains is Infrastructure all of This generally Macquarie on use events Christopher the to and is the sell turning presentation convey recording, nonpublic to Chief We does identify Corporation's not is that contain this buy whole presentation Corporation Macquarie is Infrastructure and based of Any in the proceedings without presentation to me or solicitation prior over or purposes rebroadcast any written Executive in Officer, these some and may, use statements. future forward-looking material statements. words any part uncertainty information or available security been or information instrument. presentation prohibited. information. not or of rights proprietary this consent Frost, are an reserved. offer for you other remind presentation This to forward-looking outcomes has of a cases, public solely in

in actual a to our subject Factors of risks A are statements and the to could of number that under XX-K. caption differ in results presentation this our Forward-looking known description Form risks appears Risk cause uncertainties.

from implied the performance, prospects forward-looking or statements. materially those in expressed or results, by Our opportunities could actual differ

as not also actual not a undertake the or as These The which the of future occur. information, result any date revise whether events We of currently to by Additional may this of forward-looking in forward-looking of publicly otherwise, to no discussed aware, are law. differ. completion risks presentation. this statements after are statements presentation, new as this obligation cause presentation we made except update our could or required forward-looking events results of

Frost, in Infrastructure Corporation's Officer, Infrastructure introduce Officer, this is Macquarie to time, my Chief Corporation's today's participating call to pleasure Christopher it addition At Stewart. Chief Macquarie In Christopher Liam Frost. Executive Financial is

Christopher Frost

Thank you, this joining those thanks and Jay, to of us you morning.

call one, an of MIC's today expectations. topics. second are, results in of our with Our financial were for cover two will results XXXX, They primary quarter that the line overview

our And IMTT through and this, on of provide capitalize overview update an As on on product and we to two, allocation flows. part will progress to an returning business of the priorities. existing of our trade growth repositioning capacity of capital evolving repurposing the

who some recapping of call, highest not priorities. by are our you, strategic For me context able participate those in last provide let to our

enhancing the our flow. first the of of generators The infrastructure characteristics free cash businesses is making predictable more stable,

The projects second even more of acquisitions. It across and deployment is businesses our the bolt-on of capital growth effective optimization of efficiently. portfolio includes the managing various and capital our

of included initiatives operating number an in driving to capital. the company during these putting a advantage agreement and support quarter. the to into is and attractive additional improvement sheet in of relying of for flexibility BEC. economic without of the entering opportunities priorities strength external We increasing periods and to balance The advanced position These third stress companies financial on MIC's our sale in take performance weather the

for color last our results me we commenting BEC the some Sunday. announced Before that provide transaction let on quarter, on the for additional

sale EBITDA share address our our on per multiple our the fund will accretive $XXX strategic infrastructure acquire significantly approximately to and adjustments. with the is take expected and of impacts Morgan current sustain of to place to fund all, by managed balance The million EBITDA pleased of fourth are capital price closing ability subject the outcome in sale and Stanley. million growth dividend debt. is approvals fund sale inferred year The The multiple the terms for $XXX XXXX will and purchaser and allow by financial in BEC us in to sheet the our BEC both of customary our The the on at clearly of We flexibility. Closing improves current the cash price realize assumed in priorities. is be strength an price. level. beginning quarter to Above

expenses, of of We expect expect Net the $XXX debt proceeds fees to approximately and we million. $XXX million. transaction approximately at outstanding realize be closing will

transaction will growth We approximately to proceeds a the revolving including IMTT's amount portion to $XXX ensure will we An on available paydown million anticipate using our capital We closed. the facility. debt, debt. update is are fund additional be the market credit without internal additional able incurring when resources to of that from

is EBITDA of that the than good less X.Xx substantially that strengthens have financial To means a will to sheet at we returning we expected end. year Our MIC determine capital, surplus improves shareholders. outcome sale our Overall, the the the is extent ratio BEC net-debt effective most flexibility. be our to to Board balance and of evaluate of

review agreed, of now continuing With resilience are we sale the with business. strategic the of of BEC our

Atlantic free consistent At million, free was $XXX was portion to revenue quarter. of million related expectations. generated approximately of to XX.X% in of combined deferred inclusion $XX.X A and the performance MIC IMTT, the Utilization year-over-year attributable quarter our to termination of of for was IMTT business with our the consistent flow for our a contract the Aviation's for full both XXXX. June flow. outlook generated adjusted high level, Like the quarter, cash adjusted for with decline and the quarter over EBITDA cash with generally. our of the for the Turning expectations year. business the the results performance million consistent the for proportionately $XXX averaged

the also past by the second in prior resources, recorded over flight supported exceeded Monica impact in that at average movement the X have runway. Domestic FBO and all Atlantic contributed flight XXXX Airport normal versus elected aviation from expectations. authorities good and the what the to the expansion BEC general in of Santa nearly Aviation show a local outcome. performance Aviation to comparable where movements more Contracted to Aviation. Improved York, results in domestic in years benefited from Atlantic same the New comparable consistent period. in in acquisitions related growth contribution although the with XXXX. was excluding below our XXXX. wind contributions the X% store These Power EBITDA, by annual reflect our it Atlantic the quarter also weather That's increase broadly Continued increased growth GA

million also renewable during quarter. We received of approximately the project the profits $X development from

Lastly, Hawaii was expectations. the segment performance our MIC below of

Our principle direct performed the is case. line Gas, business, with Hawaii and in outcome favorable expectations a achieved

$XXX May, we this per in However, second these with bolt-on dividend the expectations. the a Board results have through acquisitions deploy were the trading outlook that projects consistent share the businesses. guidance million on other of the to for below this payment results, segment the within we quarter Growth capital includes I our or to Year-to-date, of million of approximately MIC the capital year. over businesses respect Along growth the July, to the by existing of In with and give Based end trends deploy year. deployed generated confidence described year. growth provided results of both in capital. cash with committed $X the our plan $XXX us has authorized remainder growth of earlier

deploy growth and Our rather on to remain we and generation under of investing market in already in projects growth our with that has priority commitments the to focus enhancing as appropriate projects than we means or $XX been XXXX. infrastructure for Naturally, acquisitions. opportunities acquisitions. significant, May. flows. added that confident of ability of characteristics in to customers incremental find versus lead have prior Recall take $XXX longer of in million The dynamics in increased our the approximately particularly deploy to year advantage number business commit EBITDA projects $XXX times of in trade to evaluation change started IMTT opportunities deploy we underway have We million million look another IMTT commitment to

$XXX Chief program capital resources. over financial point, on XXXX are our of last million $XXX finalizing a of on Stewart, our and capital performance quarter. agreements number allocation internally of who more Liam strategies. with on than and provide quarter year-end. The projects sale At million additional IMTT, the generated Officer, We I'll over of will now BEC to now between up Financial the fund color and this will from us second anticipate some means evaluating We projects turn these our the provide to our in XXXX call from

Liam Stewart

Chris. you, Thank

and Our of underperformance to at the in That for a portion all we respect quarter decline Power Aviation consistent $X expected expectations at adjusted the good and year-over-year, in reflected EBITDA with the for IMTT, the down by in the driver of approximately although than segment. These the in MIC Hawaii our segment. second performance utilization Contracted The million business cash relatively was undertaking the with that the performance MIC weaker XXXX. that slow is review are expectations. were level generation offset options free with flow was segment in consistent and we year-to-date aggregate At Hawaii mechanical contract our an business. a of acquired segment quarter, the Atlantic

our Turning for now outlook to XXXX.

guidance for free our EBITDA year. the cash flow and have full three We adjustments made through for

as mentioned, the the BEC guidance First, we anticipated reflect Chris early closing the of sale fourth our quarter. EBITDA of are to in updating

indicated we shareholder by a maintenance our does growth as costs we no in impact Graph, incurred relation deployed we in repurposing CapEx, on are cash CapEx. free impact as IMTT of flow. an the but recharacterizing EBITDA are on updating quarter, that has the corporate guidance This have to Second, CapEx matters. incremental first portion not

and midpoint segments on X our materials, of the guidance EBITDA shown of combination supplemental As the by $XX.X to Contracted Power million. our moves Slide down Corporate this for of

for EBITDA, our Our is segments remaining guidance for unchanged. operating

In in interest adjustment accelerated BEC, expenditures the savings will addition to EBITDA These X to of of million. anticipate approximately $X.X conjunction the CapEx with has approximately of offset $XX. million timing the sale. incurring related we by partially sale the maintenance

adjustment shown $XX our guidance is XX the materials. of on supplemental on million. Slide As of The cash free an approximately impact flow

into million. million to the we rather the maintenance now free corporate million to BEC outlook for $XXX the expect and MIC otherwise produce XX% of below Taking ratio as remain reflect flow. to we're of costs between without to that that full our EBITDA the by substantially million million federal also at Together moment on $XXX of will sale. flow flow cash of costs, impact payout $XX addition further the spend adjusting all income between our free CapEx. of We will year, estimate of consequences and tax for is also repurposing want expected $XXX the growth sale free of be utilize our In taxable a all and classified IMTT, than and cash to CapEx BEC $XXX cash the these year I incremental the consideration, sale remaining NOL. year,

we are tax a mean financial have flexibility dividend. by material our federal the with means Although that it to could sale impact income ability increased BEC XXXX, comfortable in of no that on the our sustain we liability that has created

offset have materials, growth fact, In all, year. of $XX CapEx year. in of our to deployment in capital will of liability. supplemental total already expected paid next in that We amount the of likely Slide most, tax federal X the had any is deployment estimate income federal deploy capital if would taxes it we've around million approximately not that shows of in million XXXX committed $XXX XXXX

net sheet. year debt second ended and our the the leverage balance of pending be of to MIC BEC, Xx quarter X.Xx with at to will the Turning EBITDA below size end. leverage

undrawn the clearly of a the of for The of billion, approximately MIC important on BEC facilities. to credit moving of is reasons. substantially $X the had in $X of revolving quarter, primarily capacity the billion sale and enhance As having liquidity of our liquidity a end couple form position was access

mature will million $XXX of notes Company MIC the of First, mid-July the XXXX. in convertible tranche Holding

on working sufficient we if those have to We on our liquidity but facilities options required. permanently are notes, refinance existing

it growth tax provide Second, the priority. fund remains reach that growth into to our could means a particularly high enhance projects businesses capital of as characteristics the opportunities of we said. infrastructure Deployment benefit a Chris capital, and very have just

deployment, capital share few policy. a Speaking of allocation observations on capital our want I to

of number capital Our allocation speaks the about policy priorities.

Our our our This are our first critical the assets of safety that and services to is priority is to ability deliver employees ensuring customers. our maintained. to products and our adequately

to and a those to increase level maintaining our do to priority distributions sustainable second is of Our distributions shareholders when so. prudent

level in to sustain the current confident and of the of ability our the are We financial distribution. health company

free Many in added of income third helping invest our benefit businesses liability. manage is we the cash grow existing that's to future the projects federal and Our to priority our investing have tax in flow. us

strength balance ensuring important priorities profile of any question wallet financial opportunities deploy Liam. In of accretive we of Christopher level Aviation. bolt-on reflects addressed have we deliver our three good of of sources all that addition, excess fund Thanks, businesses acquisitions, a In throughout inappropriate share way existing capital our in of an an example utilize these anticipate assets. and maintain to Atlantic combination Board having additional returning is A MIC. of a $XXX us internally level acquisitions. us funding maturity of our This BEC million and we resources. significantly FBI manage across these that approximately across year in we We seek size flexibility which long-live to and primarily of not requires drive but in aggregate, our point investing the of shareholders. the The priorities flexibility, liquidity leverage remaining Achieving It that nature our their per network. gives we generated sheet with simply establish will Once growth capital a to can appropriate the that and using cycle. Frost projects costs. have debt presence our allocation to to economic to is bolt-ons good consider latitude that excess capital to also value is the

policy. it's multiple helpful I think priorities address attempting to we understand allocation our to the are capital in

an to progress provide with on and I update IMTT our Finally, want to returning you growth.

with XX.X%. averaged The capacity to gasoline the second second the of in of As quarter a quarter respect call, XX.X% Neo mentioned of Storage the renewals cargo River and during our is Contract June, was remains is market for quarter. the flows utilization and that performance the asset during were The with IMTT's our averaged stable expectations. I've consistent function the market. for line expectations. challenging the month in distillates. with of shifting out This with trade Mississippi the Lower market utilization build

and find combination XXX,XXX X.X residual has capacity expect through year-to-date cost the tropic process XXXX approximately Of end heavy until I'm have and oils. chemical, recontracted. be and report that the million these been and the to to oil our expand to products. oil seeing X been is is X IMTT expected barrels to operational are and of renewables, year. take in barrels activity million. its a We This this increasing both of repurposed, to chemicals, million continue petroleum, to consistent of vegetable be these vegetable to expected clean completed to IMTT's pleased performance to barrels tropical and IMTT, from financial expectations. with ways of markets we exposure service up and Even, At are repurposing million $XX

approach barrels towards back change likely of and implementation of storage, and XXXX. to occur as key shipping to handling of terminals binding are IMMT's refining well end IMTT placed from service the the be to petroleum a year. is needs these of provide we that the We markets the to industries. any in expect IMO the believe able into placed We benefit the

IMTT. Repositioning times, including loading repositioning improvement of to capacity, typically infrastructure repurposing have longer addition with By portions and petroleum and capacities storage to customers one, in we non the compared rail products; mainly pipelines, projects lead repositioning months are XX of mean; new truck construction repurposing. for connectivity access. In we two,

relatively that we construction, this new on X.X believe involve they over IMTT point, XXX deploy At require projects. will As more approximately the capital. next million they years repositioning

base. than the the leveraging single existing repositioning be EBITDA to today, more high under value will asset completed of the of million as could at be projects As totals evaluation, digit mid multiple, that $XXX we

example, agreement placed expected late be barrels can roughly to deployment develop capacity chemicals for manufacturer. The capital service new For project and approximately into signed to IMTT in year. recently million XXX,XXX next $XX is require the of an of

Importantly, $XX $XX eight the million that under such on following IMTT to In for much completion. we XXXX, million of studies. and contract be between capacity on engineering as repositioning activities years expect and will projects, deploy environmental

in the now infrastructure As we the And good heavy capacity progress are clear on last of of that additional the late projects and similar a XXXX. basis. them. development regular quarter I've IMTT residual making undertook tanks repositioning IMTT repurposing and concepts. in In a engages our are addressing new mentioned capacity existing summary, substantially oil connectivity priorities with and nor are repurposing

We generate cash amounts of our businesses, such stable of characteristics free and flow. to are infrastructure continue the as enhancing they growing

for fund The has repositioning the phone open is been the lines call growth hold. once are secured. MICs has Thank our And for internally. reconstructed portfolio our non-core assets. capital in provide with The the you, our strength been second strength, available We managing balance our operator that, through of strength performance today. repurposing in sale the efficiently balance IMTT diversity ask The our for majority questions. us the an with taking evidenced including quarter certain the to The again. opportunities expectations. your XXXX increase project financial of sheet again, flexibility repositioning smaller we was monetizing are more of attractive sheet once to increasing for of capacity repurposing consistent and was and and And participation will I’ll even flexibility. your BEC and in MIC's


[Operator question with Zaffino Oppenheimer. from comes Our Ian first Instructions]

is line Your now open.

Ian Zaffino

on view go utilizations rate? happens been of stored? And your when just Can the products all Hi, are through? give happens there? do where goes eyes What What you once my to that have reviews to through? Thanks. What a thank goes that us you. guys

Christopher Frost

Hey morning, Chris. it's good

So you've question regarding asked the IMO XXXX?

Ian Zaffino

yes, Yes. sorry. Yes,

Christopher Frost

supplemental little provided in we to exposure market to background slides look, more So, repurposing. the bit as that how the this the we we oil and morning, Lower residual following Mississippi heavy published a see

And the to going XX% take currently repurposing up capacity, heavy of is the product barrels capacity. quarters heavy three about market. the X surrounding will within IMTT's to sub-categories be what unrelated around in capacity, we've be store being we of sort that last talked will stored of of demand. As used legit. to and barrels call, feedstock say industrial the of the issues thirds The in sort sort sort of is used is and to there two out remaining residual now oil that That the and million effectively used estimate will store be IMO we XXXX million to other is some of to X refinery of which

have our remaining degree we and exposure residual comfort right-sized. of that So heavy a is

Ian Zaffino

And Okay. an exposure there? Bayonne on maybe touch Thanks. to

Christopher Frost

remarks is gasoline of respect both this that the that expectations mentioned a respect as some IMTT utilization Bayonne to sort up I We would performing financial any and overtanked. have material well changing year. point given with being in With the we of particularly from the say of as though contract view. renewals Bayonne, distillates, and challenging line coming from don't with gasoline prepared the sweet distillates, remains in flows to trade

their and the if So utilization therefore, distillates pickup, are stocks respect confident refueled. as see anything remarks with a us slight view, particularly to


our SunTrust. Richardson comes of from And next Tristan you. Thank question

is line open. Your now

Tristan Richardson

gents. morning, Good

determining think for roughly see pro the And appropriate question. financial proceeds about I about from I talked level of of reduction. the Liam, forma the debt leverage not you mean, quick a mean, forma you I sale sort for MIC used leverage appropriate about level you talk mid-Xs. Where see up on flexibility, today? can commentary we following in BEC, of then for post-pro Just BEC. your for

where of kind think Just leverage you goes? curiously

Liam Stewart

good Well, question. it's a

we I on divestiture obviously, in X.Xx has businesses think once of to dependant the mix We the existing of the line. and, said, as the the in level have appropriate been terms think of spend. X.XXx is portfolio in portfolio BEC I about leverage

we of So have why I $XXX projects of the on evaluating. $XXX excess At over the million capital, for commentary have capital commitment we think rest roughly line think about of terms that today. and sight we're the year sort it, million of IMTT, we in of so

next reconfigured average, capital, strength the on potential capital spend one, When of think, deploy take of as million stuff distribution going leverage, for so then $XXX years rated accommodated all that's and be think out two of growth of was really $XXX really we as on we sheet we’re excess determine and where and point the And sustainability which a it resources; the brought. what not projects. is my balance once we capital flexibility, I internally we funding be TT maturity positioned two sort years that that trajectory. would Two, we million capital. it's excess of onto of just and we And to those about, a the well. of there'd come up with next have, think we question That once a products there into it to would the tiding excess question generated what's about we extent,

Tristan Richardson

you. the deployed million. deployment tax is impact for on just the following roughly comments helpful. capital if your identified payments interesting XXXX of and and That's And that the that for use … Does include capital there Or Thank then that XXXX. you've XXXX about presumptive $XX potential of up in NOL, up

Christopher Frost

includes really the It impact.

million you cash capital taxes the those, some to of If line. $XXX service of made years. assuming liability on we're around the from million income the about BEC from this then in next sale spots accomplish how capital We’ve perspective the year taxable together forward $XX able income getting say that of should composition that into highs next tax business the think us the a the federal and average year, with all operating we’ve across generated assumptions two

the overall trajectory than it given of to power up sort that impact of like X% less sort clearly of tying X% payout makes sort the flow, XX% of ratio. So cash free

within of the capable accommodating that allocation parameters of more than capital cash policy. payment existing are we the tax So

Tristan Richardson

of metric on where then what so, X.X that we the appreciate of kind the lastly kind if that of Is Mississippi is curious IMTT from initiative. see helpful. just River? And split? on repurposing across Is IMTT? enhanced Lower roughly me, I'm the you disclosure all operating million all And barrels

Christopher Frost

Mississippi, the the this we've No, Lower or Lower we've year that barrels repurposing X.X million identified year undertaking Mississippi. and X that we're identified for this is


Thank Morgan. you. And our Jeremy with next Tonet JP from question comes

Your line is open. now

Unidentified Analyst

This for is and Could Jeremy. [indiscernible] Macquarie color the ownership period it's for any the targeted holding share shares that you MIC on Groups purchasing?

Christopher Frost

The But we’re sort support of the repurchases short progress answer that the what share strategy sort and the making be are. as strategy. we've on is company, that their on we of should executing don't outlined intentions viewed the the for think, know I the that that the

Unidentified Analyst

And the the low-XX% utilization, going timing more timing? range. recovering of the share mentioned you to low-XX% you range storage the ramp the Can low-XX% to and point then maybe on of color then on the inflection

Christopher Frost

to happy that. Yes, do

build up in range at low-XX% look then that XXXX. to of out rightly the that year the you've anticipate we sort sort in and back of point to As low-XXs the

As X.X% That I've year-end, next have of of we're of we've million We standpoint. by X.X all anticipate the at sort the repurposing contracted year over contract of utilization of that year. and of say XX% which to from under the an will the or online adds around come barrels X.X at that end talked we'll currently identified about, sort that XXX,XXX those. successfully beginning

contango the that comes in is find then then, the online, will out say operator associated that at year. we alternative We that utilization. for our which will the end back for will the fixed diesel X.X market we last of for have X.X% utilization. the also with recovery. add We the the X to next the so year, amongst that approach go have contract repurpose will around has the the of in would will call also to think, with XXXX produce into million storage but to for market pulls Lower but in also refinery the usage an of in IMTT fuel. I of another was low million, comes distil oil, used processors industry we refinery, that barrels demand along as also IMO capability of of indicated move barrels be to that And some necessarily anticipate the the I from there Mississippi can that. working demand that introduction to and that much there the storage therefore many And have refining another of for in products which expectation back whether add be order refiners blending, if we not X.X% that And the

Unidentified Analyst

one. And just the one, last past MIC about further. diversify the fifth vertical business in to has talked adding a

on curious portfolio how BEC Just you. Thank you following that approach the plan to diversification sale?

Christopher Frost

outlined quarters. of sort is the couple this think last over I of

out characteristics of those. I think the investing our focus around building very much at the moment is in our businesses existing infrastructure

remain of sort cash sort moment. drive to drive I verticals, in the think free opportunities is at greatest We at see of the that increases we opened to the other looking focus that but earnings and that the flow.

at presented IMTT Some of the Atlantic. opportunities and


Markets. with Thank comes next question Schultz Capital from you. And TJ our RBC

Your line open. now is

TJ Schultz

projects that projects? some of IMTT any you indicate type gives comfort accelerate to scale be to at you size million within spend you in IMTT expand Can $XXX being sourced helpful. under Just business the capabilities development And gross IMTT? How on there long those on or would levels of you any kind just have are larger Are projects you First are the evaluation. color projects? of far those how evaluating deals? average the

Liam Stewart

business would consideration, supplemental They the over and in tanks. IMTT's their their sort next of we're are handling under projects say million years. I total. X vary the the out be projects do sort the that. the wheelhouse. new on are, sort some I first materials, respositioning of have On and tanks think of sustained as of million that which we've to Slide respect core we’re size, in the to things, products around point will And of repurposing both $XX is two Happy the currently well estimating set of XX what clearly is as aggregate part necessarily repurposing storing are not

$XX the terms million, of the again, of repositioning from the really around from or capabilities, think those of vary $XX new $XX projects I size which We're And projects, looking up new building in in is with may million at range which connectivity. say some size, tanks, infrastructure sort to probably the in $XX million. then to million.

TJ Schultz

I appreciate Thanks. that. Okay.

Just you renewables for switching review you mention to that gears. something strategic business; plan sell? Did a is

Liam Stewart

of we're of call I of our have are And think of renewables that we the as with We a the you operating as separating, focused relationships last mentioned well for review BEC, is we're Contracted the we undertaking developers. platform. number as And renewables it sort on sale XX powerful with know, a on what Power. now

And will look of have so continue we that. at a to sort

think the to pricing where question ability Board we seem for the then If the whether I is business. to is see case, given currently. us determines the not grow operating that, would that exit platform that the is renewables appropriate it

TJ Schultz

assets the in you have talked and by then -- from about [indiscernible] in exiting Virginia. talent business, IMTT having opportunities And to selling either past power all or Okay. that BEC build within

direction strategic just moving land So of options those is the forward? are kind that for what

Liam Stewart

projects those say of sort are would I opportunistic.

TJ Schultz

I'm go sorry, what -- Okay. ahead. about And

Liam Stewart

them we not No, I as see think a want of focus. would but sort to opportunistic, given that land core it's just I we being – the have,

TJ Schultz

year Westchester? airport revisited this And Okay. have privatizations including at all you

Liam Stewart

catch didn't sorry, question? I'm the

TJ Schultz

airport potential as a talked strategy part Westchester. privatizations of including year guys about you growth last at Yes,

if all? have that revisited at guys you Just curious

Liam Stewart

is it Hi TJ, Liam.

tender the still we was change were tenders is know change process you on being. bidder selected the middle that hold for there commissioner effectively while of a for time -- awarded the was Westchester. As There so who process, we're a the in of of

additional see opportunistic is development, whether supporting that or focused land the to think Chris' return I and additional of to of additional repurposining the around sort infrastructure or not IMTT and verticals adjacent plants the portfolio really it's on characteristics our of on the IMTT, growth. point IMTT. privatizations, moment should predominantly too at to reconfiguration, power, the key program repositioning, power to The capital existing which focus

sort are consuming evaluate things bandwidth of said time. current in through the those we'll we I ones amount they think, of circumstances but as not other that massive opportunistically the are


from our And Wells in Fargo. queue Reeder with you. final Thank is question Jonathan

is open. line now Your

Jonathan Reeder

coming a comment -- XXX% Most you have Obviously, sale for BEC can headwind? the significant EBITDA in to see directionally year-over-year been of you consolidated XXXX asked, relative creates 'XX? of where but

Liam Stewart

It's good point. a

We a $XX guidance well. numerated full full the haven't think as 'XX for BEC in would the into be year I own Jonathan, on year? for but year initiated slide. How as we step-down from million that do the 'XX we've range This

should year full relative starting if to the point. a we the $XX we'll back the contribution and of outlook I that being is the in contribution but come in of that the for So it guidance to adjustment setting think million, terms consolidated terms year to is, from mark of think what when be you full you the BEC, about that make initiate

Jonathan Reeder

I think you're saying XX?

Liam Stewart

Yes, XX.

Jonathan Reeder

X% relative growth. Okay. I basis And of on off going just then about a the of current mean, guess I midpoint the base, growth

they're coming year sounds if on Is guess like kind year-over-year fair? a that growth underlying it year basis, reasonable in around I somewhere of So there. a of this

Liam Stewart

relative said earlier. conjunction either sort if guidance as to release start, fourth the as with we've in initiated And or results quarter we'll that customarily I -- an we've do of so the XXXX. advance we we in to Yes, do in that think got, like I of go


questions showing for call this I'd like time. to over back I'm turn you. further And no at the Frost any closing Christopher to Thank remarks.

Christopher Frost

meeting We quarter our with morning. in and time. ahead, third update course, that in early speaking the participating with road And look you during you conference call to of Good we'll November. we'll performance for with of many the for the analysts. today. weeks you our financial In on Thank investors be forward


and thank gentlemen, today's conference. for you your in does conclude program This Everyone may and a participating disconnect. great you day. Ladies all have