Macquarie Infrastructure (MIC) 4 Aug 202020 Q2 Earnings call transcript

Ladies and gentlemen, thank you for standing by, and welcome to the Macquarie Infrastructure Corporation Second Quarter 2020 Earnings Call. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Mr. Jay Davis. Please go ahead, sir.

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

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

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

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

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

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

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

tables today's we before earnings reference interest, With Financial in to non-GAAP is attached measures in During Also flow depreciation A EBITDA, Christopher these cash the amortization, our that earnings Stewart. participating non-GAAP Chief call to to GAAP press Executive defined the or is measures most free Officer, today's Liam will my it XX-Q Frost. the call, Chief by and measures, Officer, Corporation's to reconciliation can and Infrastructure and taxes, release. MIC's as of pleasure in comparable our found Macquarie be us. welcome

that will morning. hope you, Thank call of you you to thanks remain And Jay. this well. joining and and I your safe families our those

navigate in the The the results As call and by steps before XXXX this the sequential second general results some and for of place improvement XX.X% and XX% results in on Liam just IMTT, at outlook of which will the posed our tourism quarter operates June utilization quarter on of in activity pandemic. Atlantic in up levels to challenges opening three, wrap businesses provide at in of driven ongoing ended call prepared mandation our for ancillary the by financial April, in services. and the your under details discussing recorded of additional of Two, averaged remarks the will XXXX our questions. our MIC airports its to I second performance in are you of quarter commenting monthly, XX% our we begin by aviation reflects quarantine to the stable XXXX those earlier aware, the from will be by reduced throughout level we Hawaii in XXXX the that the Aviation period. state flight of XX% on of I operational the And and improvement will which levels reported morning. highlights remained the MIC’s XXXX. recorded approximately taking impact XX-day and of from financial

on During we quarter, the four priorities continue focus on the to first quarter call. identified our

while First, fourth, our our pursue enhancing costs; continuing health second, safely of protecting each. sales and our employees and keeping the reducing operating efficiently; protecting the value safety in and third, customers; our of liquidity of businesses and businesses to

timely attribute employees. health to and and a our effective fortunate low of our to teams decisions safety, the and made have had by the Regarding this We we incidence leadership amongst our appropriate require employees. are COVID-XX and our to and employees. disinfect and clean our physical To distance, continue of the customers, protective by maintain regularly to of employees use we personal equipment protect facilities diligence all to

of changes We of made the of A portion to and also have our procedures updated facilities and our work portion our our at to continue and ensure continue appropriate. employees remotely. to operating work sizable a physical facilities where continuity service layout infrastructure to

to and steps without facilities take once essential safely our and as thank our to publicly again continue permit. opportunity terminals and I local for employees this businesses. FBOs, in allowed conditions implement pandemic. the all commitment and We resilience delivering to would by to intend developed all protocols the have to have provided their these return-to-work during services operations our customers those and Hawaii interruption serve like Together, all to

and Regarding our controls. cost liquidity

$XXX our call, revolver. First, quarter first million as our noted nearly we on company holding drawn have in

not obligations, into the Given performance and in Aviation, we the consideration of in that particular our any better-than-anticipated cash. Atlantic taking of do using envision quarter, second

a reduction in cost had positive implemented impact results. meaningful April initiatives have on the our Second,

million Most able were of were in consistent achieve an annualized expenses, seeing in second Aviation, cost savings $XX operating lower Atlantic approximately primarily to levels in businesses, reductions with we the Our activity April. quarter. the savings the were of

have hours actions have have were returned With million. been reduced $XX flight furloughed some to activity, annualized working Aviation the who some increase These the in and general Atlantic to staffs normal approximately recalled. the hours reduced aviation have been savings of who

clearly the generating sales of quarter, although the believe of we past Once continued COVID-XX our to our value for impact processes. sales again, timing additional during sales the forward Regarding remains logistics way best we operating has had of the businesses, on of move an and have businesses processes with shareholders.

We be interest continue to encouraged level the in businesses. our of by

business, buyers rollbacks continue, current in with environment the speaking, to lockdown MIC processes. potential As to by a order on given with bidders informed meetings sales and in that it face-to-face the be will size for ground to due management advance Practically the be we expect diligence teams work achievable transaction the our may Hawaii but Atlantic facilitate of in what looks IMTT general aviation for in Aviation demonstrating order us tourism the likely on of flight to storage recovery see that to for additional maximize while the of and performing value view to a well the business. assets, of recovery state. like is potential need are data activity clearly regarding in resilience the

first on steps I to COVID-XX quarter past our balance call, the the strengthen sales the As over operations have of on and X.X impact both well our have our navigate to our taken said our positioned sheet years we financial improve us in processes. flexibility and

the flight in The markets, where improvement declined this quarter the leisure-oriented of portion activity in XXXX has Colorado, the believe Atlantic temporary. by result We second during that the customers of progressive substantial the activity The of patterns of in outside quarter are driven that Aviation Florida cities. a quarantining activity of a by the is the of second lockdown major Atlantic believe measures significant supported second was than changes by flight reduction amount general by travel was U.S. quarter, and We including this during terms reflected rollback operational In in improvement of fuel presence. and activity. highlights Aviation in aviation these sold across a more

levels. in we Specifically, in destination flights single the smaller to aircraft addition activity saw lower

disproportionately also long-distance the believe believe impact had on that between transcontinental target and has a the We in-flight Collectively, account market the Aviation. in a Atlantic change including these the we international for sales. activity, the domestic and difference of pandemic recovery for fuel extent activity trips, flight negative

As remained hangar quarter. during the stable tenant expected, second rental income

As XXXX. second hangar was to from we generate business month internally of helped will Atlantic each Aviation call, discussed obligations Atlantic generated in that Aviation's us gives continue in rental in meet quarter XX% tenant and of the from first hangar quarter EBITDA approximately our Tenant the rental positive its gross resources. margin confidence generated

call. overall approximately gas visits as down EBITDA and to and sales of during Our our the months quarter, during comments of and business a to Tourist resulted The second confident of were internally performance with the continued MIC MIC quarantine the generated quarter. for that, supported Hawaii of expected XX% in sizable we three portion its resources. ongoing generated continue for in quarter, tourism requirement results good positive also meet the second The level our Resorts XX-day decline the will island line than comparable Hawaii industrial in significantly constitute quarter obligations arrival. period. remain consumption. on the of versus on each business restaurants the prior that a in commercial from XX% of first a gas of more by the lower IMTT our performed [indiscernible] quarter

with rates up during remainder low- Ancillary of things storage IMTT remained range expectations period. call. X% strong fund the mid-XX% In Liam IMTT, utilization, At renewal Aviation services at our performance commitments using Together external XXXX. ahead unlikely heating, to are holding such Although drawn company operations revenue, the few prior flat high year, given versus first generating of second increase funds the for credit the of to relatively is our in our the highlights of able the on with and the an facility. as financial we'll to XXXX quarter the better-than-anticipated the in EBITDA the discussed performance be without average levels during this to in to we and date increase to in utilization and blending level contractual call without with capital expected was second in our coming Atlantic materially quarter resulted I the point, and of and remain over will activity throughput, the year, confident contracts turn comparable for that of the quarter. revolving and of our summary, for

morning and you, Thank good Chris, everyone.

versus on non-cash the XXXX Hawaii, excluding of MIC reflecting improved Atlantic second COVID-XX-related travel comparable declined period, performance and other EBITDA, Aviation quarter adjusted impact items, primarily of prior the offset by IMTT. by the XX%, and at For restrictions

a by cash of by The flow the maintenance at FBOs. this at Adjusted partially one by lower our a $X higher Aviation for benefit. quarter cash of declined second reduced year SG&A capital free was million in Atlantic by net but EBITDA provision offset tax XX%. recorded expenditures, included flow environmental also remediation Free and

our We continue MIC expect that continue during it of to deploy IMTT. determined appropriate was million the to year, approximately businesses of the in that maintenance CapEx occurring majority $XX the total The a to dividend. any with of suspension at Board

the substantial by tenant reduction flight a of the by Regarding rentals. hangar sharp although in our The Aviation, in businesses. by fuel was the performance in stability operating the quarter sold partially gross activity Atlantic in general in this of offset generated aviation resulted reduction amount profit

Atlantic the down generated to The Aviation substantially base $XX moved size XXXX. of second maintained team these and cash to that versus in current are sustained. quarter, EBITDA flow and comparable the were activity. million, early the despite quickly savings levels of the the costs cost the extent quarter the and Atlantic they each $XX increase Aviation free right of will For period respectively, these activity level increase to seeing business the in activity April through million Naturally, in

in and second a Hawaii gas with in EBITDA obligations current activity, prior confident at tourists during are year. free people visiting generated cash its number the in the reduction XX% the of generated the of comparable down consumption meet the got financial levels to hotels the noted, internally gas significant ability With eating versus in of million flow Chris the versus and last XX% million, of MIC resources. Atlantic experience we islands. to Hawaii As Aviation's second fewer using $X quarter, decline $X down out, of by declined versus consumption XXXX, for staying quarter period. approximately XX% quarter

million for realized In the contracts losses Hawaii reduced in free the during EBITDA These certain the booked quarter. of sold, quarter. hedge on of amount also reduction its addition of $X flow gas and cash both commodity Gas losses to the

in results the X% the are case the cash year. normal $XX for services for Atlantic increase $XX an from quarter. its we utilization in the between generated that is confident comparable of of a of maintenance of capital revenue, financial and with is million an EBITDA, internally resources. largely $XX decline a substantial more CapEx driver mid-XXs last period With IMTT will MIC IMTT modest Hawaii flow flow to As matter expect to Aviation, obligations our which generated at continue was million we over million in cash prior The percent a as of for reflects meet range increase ancillary million versus of and $X million $XX free the $XX to maintenance IMTT the continue in free year. invest of timing quarter, million level

believe year. reposition the is backed of projects of to both continue customers. the contributor incremental The are year approximately during IMTT stable IMTT number growth to the part and business new their at mid-XXs long-dated ahead, range, remain capital and and are will to are contracts Looking businesses have to development will The we over a the expect to infrastructure rates generate growth of remainder at projects. balance that IMTT deployment in placed $X low improve through to the investing million projects in of average projects the or in our the progress a larger year. by growth we aimed under of and our be the results existing improving program, EBITDA be percent in and expected our Utilization forecast resiliency. continues to XXXX. connectivity stable The of service

million to total $XXX deploy amount. $XXX to of $XXX million end million the allocated with year, million expect of quarter, growth deployed of this had we capital and between $XXX being approximately to IMTT. of with second projects continue the Through that the We successfully

and a Finally, flow larger free EBITDA recorded Corporate negative negative Other in amount smaller our of segment. we amount cash and of a slightly

X.X costs sequentially but noted the of position impact in at our that general increase expenses on down sales of million our XXXX, hand, remain leverage start of were anticipated, quarter and was were in business. of we net company confident administrative as holding professional increased COVID-XX, consolidated $XXX As and first of revolver. our selling, on which flat foreshadowed We our with services we drawn this million in liquidity in Reflective funding the resulted the our debt-to-EBITDA times to when call An end. tax operating to processes. income ended quarter of year, of With through year of cash the over a the last driven performance. We a flow versus of at in the quarter $XX negative with ongoing year turn end by the versus I benefit million will leverage cash million Chris. $XX XXXX. back $XXX second assume generation impact liability free the We our call tax negative COVID-XX will higher on that,

Liam. Thanks,

couple remainder Before I your questions, the open of the call I a for will outlook discussing to of spend our XXXX. minutes

implemented. First, no or COVID-XX-related we lockdown assume are measures additional quarantine

aviation the a aviation is commercial lockdown via such and leisure to corporate a drive could in-person and business-oriented of XXXX travel the activity if further recover of to Atlantic as general resumption performance likely need private private impact in type York, jet We We necessary Angeles. international metropolitan activity in While flight increases Aviation. than flight levels, activity areas, Chicago travel and resumption sustained or rather this major see changes This believe particularly complete of flight activity conferences. positively is in of measures. the in and Los more rollback would and using to markets in events New likely preference of consumer increase

extended to end arrival. restrictions the the recently to have through note the From extended they and August. the will rules X, Hawaii, to times. state for demonstrate to in quarantine prior have September been travel state's tested government of COVID-XX rules has quarantine negative visitors Second, that I several have

gas hotels in time. to restaurants, customers, the recovery particularly industrial take Our and sales commercial and could

stable for we have the business. of we constructive Last, Importantly, for into the The And gas relatively expected remains remain sales morning. outlook your visibility phone for I your the year. coming ask the confident again environment in are are the number of we you participation our stable. thank our the ongoing call At operator time, to up this to to for business the remainder questions. the that, given this will lines I With over renewal, residential performance in customers contracts IMTT. of open modest believe storage good for

[Operator Securities. Please Instructions] And ahead, our the from first sir. question Truist line Tristan Richardson of with comes go

Good morning, guys.

Tristan. morning, Good

detail on down then larger year-over-year. seeing or you're it like like curious weeks? few just mix about seeing recovery. Can in you're that shift bit little to secondly, in around seems past the the AA. comment a even that you the And as larger, appreciate recovery made Really should might being And what your return longer XX% that all noted persists? talk activity we the and/or seems aircraft only June July legs assume a just I thoughts? it continues, mean lag But you

the Tristan, in-person broadly think, travel. travel, we a I up was it July are we won't own Yes. in see international that we that the But and summary. planning the recovery been or obviously, activity that I conferences with And in our travel, event-driven events in and Trading increase saw, good said good a and July prepared Look, liquidity And mean remarks year-over-year. flight over corporate-orientated assuming travel. necessarily think the sporting by purposes, for albeit large business- that's event-driven also has I actually X through I weekend. as June, consistent

we're purposes, recover. – little confident and of markets that, outlook activity, in a GA assuming take longer flight that planning resilience internal the our may So business remain we those own to for while for the that

quick just aviation. one then on And one Helpful.

that onetime that we of the the sort around resolve one environmental nature there? estimated matters Should entire of FBOs. Just in is think to of as the $X million at the expense and cost

Yes. Tristan, its Liam.

April it it the as recording for that remediation of cost And to XXXX plan this reason for estimated and remediation quarter the So around the is around an incident. clarity well. relates have clarity we

kind really up. And quarter thinking around estimate the it clean transpires, be the recognition best represents There so how to liability current of but plan total eventually of environmental according our what is that the this to the plan. variation may is our some

there, comments operating I appreciate incremental considerations strategic Helpful. sale outcome rather be maybe Thanks, just it sales might last talk And the me, Can tax an individual you business. for as planning processes around the about Liam. the around And sale just for for the then the seems the how probable of of given outright one businesses company? all than there you're initiatives. the that? you've

sort and Why last pick don't first. here I can Liam of then address the the up

it's whole. think we to And it to to remarks, the need activity advance a right us for the relates value comments at process the to this back a to likely expect that as the in than sale where that aviation flight today tying order appropriate for I don't business. that that is businesses it is say evidence I general I sit of it's stage, will buyers see of individual Atlantic reason that the the sale given further I more operating to potential be prepared in think of Aviation. in recovery maximize

And hold perhaps entity, a than of sale continue So the company through individual and being listed sort of the by of then to of at would operating be that, a would MIC this stage, is sort and a of take whole sold out Hawaii less Atlantic saying we would Aviation. therefore, suggest a which a sale Atlantic that IMTT as sale likely of businesses. that the

would that way And consideration. our present value configurations of evaluate the that we shareholders under our what in of the is look proceeds sale I structures or at that maximize quarter to way I that. to do Just first are the different clearly, objective shareholders. as would the value call is mean, really the sales expected under on for we said terms that

will taking judgment the pursue believe we sell the so will any we payable what will which ultimately And to maximizes to capital be structure value, gains businesses. into be sales underlying one tax account that as be

that and I of of sort more Tristan, the listed the are Chris tax generate as individual outcome businesses businesses selling effective Yes, sale said, a of parent. within than out think there just three individual permutations the

on be that more than the mentioned efficient businesses all an So the just on three clearly, the MIC. Chris out divestiture takedown a tax after one example of of And company value focused maximizing where is effectively last public basis. yes, would selling that's we're

great. guys very Thank much. It’s you

great. Tristan. You’re Thanks

the ahead. And Schultz go of Please RBC with our TJ line next comes question from Capital.

TJ. morning, Good

Hi. Good morning.

rate when recovery in-person it sounds first But think planning at may travel XXXX? of sense. you could a mix What travel some events, Just get XXXX levels, are color about about And lower provide what the to in look business like corporate you you versus travel to flow maybe slower back some Atlantic. was just on and corporate which as if leisure cash for environment? there, makes run slower trying think in fewer like you

comparable attributes we from So and of aviation clearly, would sort why have To What tying We on returning the around I back a the and travel for trip. the travel. traffic answer to extent traffic, XX% the to – of benefit leisure-orientated the we to year. Atlantic's a absence I saw corporates traffic, normal that? been of multiple What be that we don't the by with mean, period. or don't that, a substitution prepared in say was split and as that I'm XX% and being of to think the to very just terms assess international what basis of compared business-orientated don't would to we of driven first to one would is I difficult to that know. the is businesses is, supported June, visibility private corporate take event-driven then rollback that flying lot therefore, short we the business-orientated would estimate the purpose it's I leisure surmise remarks, between activity recovery of be that more prior flight added and more Look, part the the would we traffic business, in in down it of say, distances I and would is activity, the sort of we have of more a using fuel. of see larger account flying which and, complete anticipate aircraft being by more see longer that normal destinations leisure-orientated

visibility traffic. in don't of purpose we the of But a the using trip, mix shift say, that, the of said, to passengers attributes appreciate terms for ultimate commercial the think in in you'd private as event-driven as corporate. from So unlike leisure have on one is I we to more really as airlines. see that from international And away XX% the is that a think accounting going business recovery of of the about I clearly, aviation. come other for traffic, to mean, I I And

Okay.

that’s helpful. Now

expect storage under gears in percent comes to entered into IMTT. Thanks. just that contracts for to What from capacity noticeable trying if XXXX? contracts renewal Just is I'm step should on COVID-related we due the switching maybe contract next that you've down at one-year disruptions? utilization due some of year understand in

I ordinary Yes. also enjoying we would their the say from we've sort from balancing to is would book storage of and each customer are previous year. normally made the say of What see in stand X/X demand volatility constructive see I refer today the of coming would terms we up players system for that and market both we of sort that which markets. playing renewal course, good for in traders where role commodity a who comments

and a generally, recovery of expect products. markets often global some periods start we in to from the as the volatility the see we And volatility as would in for operators know, we more that. – to some think benefit of terminal is U.S. I often economies economy see petroleum commodity

demand see sort our that And sea. in the continue going so see strong who arbitrage from good looking recovery system as players, fuel and is see take likely to be any around we are we're I take of And volatility to opportunities expectation from to think particularly the we advantage markets. will also of traders demand hold, to

So the through constructive pretty about feeling good we're storage – petroleum market for to for outlook the is good currently of the about XXXX. And many XXXX. continues for feeling products certainly and that

very Okay. Thank you much.

ahead. the And line go Investor. of Please comes [ph], Han our from Jerome next question

Yes. Good was dividends? to might restore you out calling find I Yes. when morning.

Thank you. a clearly, and the for as And the Thanks Board future question. matter business performance Look, performance our scenarios different is the the as current always, as the the range Board. of and our of financial our the expected dividend well testing considers of business obligations. under commitments sheet the as well a stress as considering of state balance contractual for and

way appropriate suspension quarter, As to the it at stage. relates dividend to what be wouldn't the QX for respect that maintaining the all appropriate current or the Board to as It may the this most was forward. Board speculate QX of with assessed the to those factors and me decide determined

a major XX use to looking it wanted was forward I'm this dividends. my through and I investment Unfortunately, old. to retirement, is blow a on $XX,XXX Yes. year a to my years I having for me. return

question. So why asked I that's the

businesses. as we're that. each the operating to appreciate have of value I we I we for designed But taken environment the crisis think the given No. well that this through our questions. to steps of in, your current sale that ensuring sufficient businesses realize liquidity ensure the of that latter as through value are Thanks work the we've to really protect

Thank you very much.

question And Thomas comes of from our ahead. go line Shen next the with Golden Please Tree.

are differences Atlantic Aviation in the locations July, and seeing to you side? kind big recovering regards how In on Hi. of they're

Liam. it's Thomas, so Yes,

July, XX% saw flight As in Chris June said, activity in consistent with roughly terms of year-over-year. trading down terms being we through broadly what in performance of

of some relative that the what yet seen underway end the of location see observed country quarter. across into guess we is to relative haven't the sort was, basis we of second observed sort quarter. we really a differential holidays bulk variation be And my quarter from it We still third the of a will location in get it as on a may deeper geographies the big school we at in while – second are the what and to that

I you May in maybe think July, kind the of of would the think, of kind have to than correct it? guess intuitively, way I Texas, in like or May. Is would thought that like late Florida, done Northeast what would about opposite have better

No.

better, Sort stuff at of think, this little out et Also, and the that what and in bit than et slower time type notwithstanding the see that rather of are may of cetera. a Northeast the yes, I to you performed on be more little COVID-XX. locations of counts in and relative But would just function COVID-specific been of of in people speaking, given fact bifurcate the destinations the activity commercial may to the to have a sort one Northeast of sort broadly hard just be cetera, leisure-oriented what destinations a resort on typically, forth. so sort people year, vacations, relative it's case vacation

kind I substitution of opposed necessarily demand? business mentioned added as activity back come it travel, for does a guess, why as would substitution you when And leisure to a just be

commercial areas we activity of leisure is a that while said I in be of folks traffic over flight and metropolitan is I the think seen I quarantining to that's we continue the summizing that has are business the that see mean it have What may private remarks, is lot point. but activity the aviation perhaps a growing. given advantages suppressed. good as out prepared airlines, will we corporate

normal to folks the normal to rollback think we activity. and to areas resort a return lockdown to measures businesses extent I more who maybe activity return relocated the of see that those have complete

you. Thank you. Got

Thank you.

our Please And with the comes ahead. go question of line Reeder Wells next Jonathan from Fargo.

gentlemen. morning good Hey

morning Good Jonathan.

the could did rather without of sale thought business? you even the small you forward economy, given the than a beautiful size Chris, Hawaiian say sooner of in just Hawaii MIC later, move recovery seeing

face-to-face the in restrictions. tourism. prepared as see I said to think I is, it's the informed Jonathan, important Yes what thing – also remarks I And And the by prepared lifting will a going governor also to that that on is think, forward. step work the be Hawaii remarks, in to to ultimately, and is us process need the XX-day we see said in to as the their I that advance that enable business the relative due quarantine we of the was recovery to related And team. My comment the to management bidders important others. we the with going need think diligence ground I size around that meetings the that the with facilitate

Okay. assuming as then you of the close time remind are in sale regulatory us, need of commission that And you to presumably, utility state terms approval? any what business,

factor another also it is make it for that perhaps process the our thinking And given PUC correct. may advance own to in time And approval. that's take that that sense forward, Yes, our buyer definitive for to likely entering from as months planning we of that typically is the the obtain XX assuming take with are agreements they have approval into purposes, in state PUC to through Hawaii. done will

color. it. thanks I additional for Great, appreciate

my It’s pleasure.

ahead. our comes from Capital. question Please with go next And of line Marks Jet the Matthew

at of volumes? AA, was those recovery, aviation flight be? XXXX, much what private question, of How or your was assuming a a How in share is capacity which flight much potential theoretical utilization FBOs as had busier can I sort speak in could of meaningful to kind you pickup a Hi. demand?

best to activity seeing just the think, where coming sort I Yes, to answer we're question back is that way today. flight of

same year. said, is consistent July compared to we're the June last with Trading I through As in June. what month XX% seeing is down

the of arrivals necessarily a prepared travel of activity, restrictions traffic. I As the conferences into in we're sporting what said on lot private we given not events event, U.S. seeing remarks, the and international is inbound and in-person lot aviation seeing not are the a

of I previously, XX% we activity. worth estimate flight that As about that, said is

to of said, I the markets the think events, in suggest also want I I levels, of XX% would sort our probably drive think up mix opening order and as I'd activity sporting as XXXX the of I orientation conferences to and a travel, around seeing return see as of to would see for level. well the complete would XXXX us so see that which rescheduling corporate rollback, – more to international sort we of in-person particularly to And want that

market theoretical could I look I the it actually is think therefore, airlines, how addition at pick much difficult capacity and seat unlike to within commercial up. you think the

thanks. Okay,

a Cheung And Please investor. [ph] our the from next ahead. of question line Kyle go comes

you on Hi. Thank sales for process. the the additional color

mentioned level encouraged sort today you there? the there? Can cover Is that you're you Is previously think equity? of it and potential by the you color any the mentioned interest. it private I of buyers of you can strategic? characterize mix primarily Or primarily

of I of the interest the buyers. would the of [ph], either prefer sort Kyle Yes – on get characteristics or the level to the drawn potential not

preserve of to sales we not position degree to think in I prejudice the need process. MIC's a confidentiality

that. understand I

you. Thank

corporate With that do you that Do process finality sale Or be anticipate the of and maturity? in revolver? the revolving sales or to there it the matures roughly I the of think year some a prior will push anticipate need much maturity will you half. respect – out to to facility, for you that process

as notwithstanding our Look, well. have the Kyle sitting that we [ph] appreciate, it's that Liam from is on sheet. you mentioned, the balance maturity, as you'll our drawdown proceeds speaking nearest cash

extending evaluating, currently are that We facility.

very Thank you much.

Thank Mr. now to you. back closing to And comments. turn the would for any over like Frost conference I

participating conference day. warrant. our call that Thank the to today. on as with forward that, you to circumstances our you you or for speaking quarterly great we a prior in We wish call With next look

Ladies conclude thank does for This you and participation. conference gentlemen, today's call. your

now may You disconnect.