Fortress Transportation and Infrastructure Investors (FTAI)

Alan Andreini Investor Relations
Joe Adams Chief Executive Officer
Devin Ryan JMP Securities
Justin Long Stephens
Chris Wetherbee Citi
Brandon Oglenski Barclays
Rob Salmon Wolfe Research
Robert Dodd Raymond James
Call transcript
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Good day, ladies and gentlemen, and welcome to the Second Quarter 2019 Fortress Transportation and Infrastructure Earnings Conference Call. [Operator Instructions] As a reminder, this conference call is being recorded.

I would now like to introduce your host for today’s call, Alan Andreini.

You may begin.

Alan Andreini

Thank you, operator. welcome XXXX the earnings to Infrastructure’s Transportation like quarter second call. would you Fortress to and I

Joining me Officer. here Executive Officer; today are Joe Scott our Adams, Christopher, Chief Financial and our Chief

a mode We an the is which encourage please already to have you open note and public webcast. not on if have so. investor and to we you posted download is done our being press presentation that website, listen-only release in Also, call this

financial we measures those found the to GAAP will including be The addition, the earning comparable non-GAAP FAD. some In today, during discussing directly supplement. in the be call reconciliations measures measures of can most

to forward-looking the out We future earnings. factors statements, like call filed measures turn release nature Joe, to SEC. These regarding investor results. presentation to encourage actual statements with I and from by that the the statements I you uncertain press materially made our quarterly disclaimers report point and in statements our forward-looking review differ their and may financial would be including in Before non-GAAP certain are the review regarding over and will contained today risk

over Now to like turn the Joe. I call would to

Joe Adams

record I’m pleased paid on available as August Thank you, FAD To XXnd of per or for will EBITDA us and be announce inception. XX. $X.XX date share are shareholder start August metrics the for funds public The our XX, XXth since Alan. on dividend company dividend to call, The a consecutive adjusted our and dividend distribution. key a of based

of of in QX XXXX XXXX. was was $XX.X XXXX and compared of $XX.X $XX.X $XX.X QX of XXXX in in QX million of versus million. million $XX.X million QX XXXX FAD million for QX to $XX.X of EBITDA QX and Adjusted million

quarter, $XX.X equipment our from first corporate. $XX comprised and million the infrastructure business negative $XXX.X portfolio, number was leasing FAD from $XX.X our of from the million negative During million million

Aviation. to turn let’s Now

completed from its $XXX.X just EBITDA business up QX QX. Aviation was ever. or million Adjusted $XXX in in best Our annualized, quarter million annualized million approximately $XXX

on in a we $XXX During intent large in and QX and for increase from new to agreement, the includes couple Avianca announced signed QX with investments the million closed planes, things. $XX.X we approximately letters which XX. number of million million was number July million in million or $XXX purchase we of annualized which a $XXX The $XXX of result the annualized QX QX ended

new Number started we we five and in of one, QX. in seven new lease engines lease on off QX put aircraft aircraft had five the three six-year and leases QX, new and

portfolio we $XX.X we a had a the on million. gain $XX.X selling As million premium book harvesting $XX.X QX call, in million mentioned our of assets our by of started of QX for that have value in

we QX We replace assets advantage realize expect sell as portfolio. take more that our to the while we in of continue to and those gains continue strong growing simultaneously we market,

next to products market repaired year. the engine first making JV progress. available have expect advanced of commercially the We the fully Our half in great in first is

exchange reminder, use for million JV ownership FTAI’s $XX XXXX early a the owned As on of development we and plus the products pricing in for funded engines. in on costs preferential of JV, XX%

These Aviation commenced positive parts year. following visits generate our second The in provide of FTAI same expand of incremental our with the reduce airline very With this to repair and half beginning business and for and products venture the the additional will outperform the development JV. to progress proprietary repairs the repairs, cost joint unique overhauls an and and $XX.X products and million aftermarket partners our the to we is agreed expectations. investment EBITDA shop JV a continues in process – FTAI structure have have and the market meaningful for in next will of substantially additional a that contribution bottom engine and aftermarket line us

industry and offering more quarter. strong. remain very more Our macros the every business every I for becomes like this differentiated quarter the

a the the Turning signs years. general, and Offshore out be the there of an offshore recovery. to in marine spending spending expected offshore. industry In growth remains contributor oversupply of downturn the position first grow outsize modestly to expected year is next is CapEx several in to upstream some of over marking since but are XXXX,

tower completion which carry into out in previously, new construction with in mentioned the away the expected process early is well we’ve from intervention. an the maintenance transitioning we the Pride well enable are Pride, intervention currently XXXX. will the repair of sector As for The inspection to general vessels under

we services letter intervention definitive the intent signed certain provider such, jointly we’re operational particularly for negotiating of of Solutions, would have recently a partnership. about and excited leading expertise, As Helix is with Energy Pride. leading globally Helix whereby a additional – strategic is well the the and while agreements are provide and potential equipment marketing this Helix

a we million. be. and We hoped to had negative financial a it Jefferson little be EBITDA wanted instead we were to slightly was at positive performance minus short our quarter, to Jefferson. From standpoint, now this breakeven Turning infrastructure $X.X slightly of where

quarter flow contracting from it However, and operational was ever. standpoint, best our an

let me of So both those. explain

and experienced had Mexico the they move we the sufficient to quarter. or issues, well WTI refined immediately the will The thereafter. two levels XXXX volume with be delays such by resolved issues secondly, performance QX served expectations in this of month did tanks not as our side, and customer not had anticipated. products was and QX this positive generate end financial we receiving these the the us will their XXXX of of of versus EBITDA spread we which shipments On increased WCS begin Also in main

and hand. this April, grow to in the of the to in side estimates of train for per with expecting end we in trains equation, on XX scheduled QX contracts positive and month are XX accounts customer the we’re faster XX on terminal our than XX and In had the year our based did and growing On over that now trains trains expected. May year we into continue balance June

by construction and track on barrels additional the fully million X.X months test one committed is complete to as trains quarter. and fully On of are QX. end of three remains this negotiations and million early during three option is ahead for a for third in year signed the we’re budget if we to And one we’ll three the That comprise expect to X.X project tank, deal have convert storage years, of three an the schedule. a front, successful. are test period on that to in Of the tanks the barrels, that committed

supply at our we X.X demand have such X an work of which of tankage million and will The as continues middle additional for barrels approximately to million be time on Jefferson. the to XXXX, we began at storage delivered exceed barrels in

the pipeline initiatives. progress important On connection front, on we made two

one construction neighbor multi-pipeline to about project Our is commence. our refiners to of

like We handle products by they have important products customer, two and expect to barrels to are refined operational finalizing approvals would because refine mid-XXXX. our is pipelines us to XX,XXX This fully Mexico that day plans date, are that to we pace. barrels from are in keep expanding a the currently aggressive a an day we’re Their moving. and increase XX,XXX approximately by expansion

engineering as to that XX line we a is forward at will Final Coast for deal to be is right-of-way existing no moving pipeline have, months. an deal. been Jefferson main become customer XXXX mid-XXXX, QX very always have bottom is and Gulf as by three-year the to last experiencing later construction the accelerated expect checkpoints well. five-year had The at completed with XX point that positive pace surprising our and refiners met second had Our been such that to the and than given begin over which storage growth we expected it developing macros now project

company is is Jefferson company. last from waxy be of example rapidly big an operating worth also infrastructure existing most into great development projects, this. that It’s from the from arising which noting call infrastructure. opportunities a uplift opportunity exploited Utah, can the discussed a purely we from crude like comes of Then morphing new And that

million I QX debt Jefferson QX at non-recourse our an Jefferson it’s $XXX refinance projects. $XXX Finally, expansion hoped existing had in to We to finally is these its in plan you customers. approximately let at new million do approximately early time fund And year. team capital financing and for Jefferson million late together that taking exciting the tax level to exempt for want coming this we the our Jefferson we and beginning. $XXX as to plan of approximately at or exciting know from debt time

in primarily which increase addition, million in in is in another the quarter. up velocity good versus cleaning Carloads Net of services by Now have XX.X% XXXX. QX And versus revenue metrics. CMQR, of of turning and was improvement $XX QX a to QX car experienced had XXXX, XX% a both XXXX, were up we XXXX, X,XXX base driven increased transportation revenue. and dwell to QX railroad

QX $XXX,XXX in million XXXX. $X in EBITDA of XXXX Adjusted QX was versus

car EBITDA XXXX. been for for would of Excluding startup adjusted and have QX QX the for charges, $XXX,XXX several costs cleaning operation XXXX $X.X one-time versus million

happy starting car for used over in car of is is is an have once recurring customers. with well cleaning car within XX metric because customers in continued Our an ramp service operation, positioned it. and as are and the now operations established important to space cleaning the This cleaning growth nature

of customers. team time, of are pleased year Ratledge have and In three the the this largest three next. growth I’m repeat for now growing excited the and As now is prospects that about as customers. we this the owners in of are business now accelerated his and all country railcars Ryan these short,

to Repauno. now Turning

You gas these ship secure call deepen term negotiations next proposals the We’ve of rail to our the phase in long Repauno natural goal agreements our remember with export was development. last to that liquid received for the five parties. from

concluded, to QX quarter liquids both before the start and end expect want receiving gas of have counterparties negotiations We XXXX. and this the concluded counterparties by natural this because the to want we of these

targeting meet year, of and and timeline. that started contracts do schedule early To having we we’re than signed these later construction to that, on QX are no this

As approximately QX EBITDA full Once this late butane to start again, expect to we QX. generate of and QX, our expect in in XX% selling full year. are season, primarily current early in to now we XXX% million $X this operation cavern, for the be

when periods Ridge, was to and U.S. this in the the in been one the Now expected due year. to in Long slower off now track limited $X and either QX Ohio good of resolved frac contract That’s was deliver than operation multi-year on sand QX is entry million sand between into including for $X flooding million River start to of companies we’re with barge a or largest suspended. traffic a the EBITDA on

the is construction and to on schedule. plant power has budget As commenced and on

continue of operations expect We November XXXX. no commencement later of than to

As Facilities. I seen, agreement believe most purchase DP non-binding a power entered of we center you into have data with

That permits power million increase to of plant. take plant annum to if $XX XXX under megawatts by EBITDA power to annual per a the to $XX million a and total DP would of XX-year for projected million $XXX between EBITDA executed up $XXX contract, year fully power the contract up which per million for

to have the As XX% And offers received still early in this end discussed. previously within of we of by we interest expect sale the completed we be non-binding QX process the a or the have preliminary to ranges plant, QX.

coverage comfortable increasing the in approximately saying Finally, feel we between sit at times and as said we QX let dividends higher. past, exceed go will and for one as me two we be And in dividend the coming dividend X.X somewhere we QX we’re times coverage. consider I X.X today into close. now the month would that once our discuss will coverage, QX, range we’ve that look as And

EBITDA. conclusion, income completed So relates quarter just it best net adjusted ever to in as we our and

As I accelerating pleased about even about am that, seeing I’m our in businesses. more pleased all of growth as

yield. returns if is unleveraged are then a a goals One of and of continue growing XX% our maintaining of our to target XX% business, in we only ROE approximately aviation but EBITDA our book

that. exactly doing We’re

goal to We leasing the service unique marketplace proprietary that. bespoke developing widen have better, the competition aviation between the other differentiated quarter. offerings. Our to continue by recognizes a us built and and has the been robust main products and more and every In moat lease offerings truly are franchise now side our short, more and value-added in

inflection the infrastructure, ports look for to. think As point on as as we Jefferson in will we always back I ramped had year expected and our where them this terminals

We developing have to them made we’ve good assets we purchased, been how them. choices as and the purchase we where

refineries Coast could we With the to to the be the in Gulf better Coast, crew natural a and get East position. gas push liquids to not

squarely hydrocarbons. in are Jefferson, and these the flow of Repauno Ridge front of Long positioned

demand from result, is a our exceeding we’re that As expectations. seeing high customers,

than with time date, this more And negotiations better, customers we FTAI. investment-grade of development. in in customers we’re history. contract this has The now then exciting As we’re even our a few our middle ever is of infrastructure contracts history nature the the signed years to in but here. the position, that have into get with taken multi-year of at It that’s of any news more

that, me the turn Alan. With let back to call

Alan Andreini

now Joe. you, may open Q&A. Thank Operator, call you the to


first comes JMP from Ryan question Our Devin Instructions] [Operator Securities. from you. Thank

Your line open. is

Devin Ryan

you any thoughts one, whether implications on guess morning. around Good of any I couple Great. aviation, forward? grounding, you’re business get MAX seeing here your some love the first on expect or XXX A just of the going questions impact would to whether

Joe Adams

Yes. Thanks, Devin.

is a on grounding positive impact MAX in the us think had ways. I several

XXX that in every CO and total is of that’s is NG and about fleet, And One lease of engines. aircraft on and flying AXXX today. a which our today, engine XXX

So it’s now. sizeable are The market around and lease very probably rates tight is up XX%. pretty

that’s benefit. a So

that not is Example just million. out dramatically. value that million. years the of was thirdly, worth obvious probably the one to good of life five very believe is that six engines for we you maybe we’ve economics, The months ago, expectancy for three $X $X part And life over for about by and XXX as increased think rise run core here sold and second out usefulness seen fleet. NG, I then, of we the that expectancy engine particularly recently And about CFMXX benefit our if has

Devin Ryan

the the if follow-up tie-in partnership the your given that for deal, on yet Terrific. United given and Thanks with this all does with color relationship it’s And how a United, there. just then whether be the can about can. specific think broader consistent contributing And Avianca with you will being returns portfolio just closing your you we date it also there? start more kind and when then and if around of overall the largest should

Joe Adams

profile, yes. Well, The very I return good. think it’s

certainly maybe It’s the strong. meets are attractive a realize it’s that an this, lease. we and targets most slightly play the mostly returns it’s So on is very AXXX attractive to really but our deal. very better But engine airframe expected to not engines in the

and we on likely the sell then will airframes so And focus the engine.

December, with had will of think perfect close we type a September, – basically it’s And fairly and that ratably. had our So fit a repair with about have probably advanced for to tie-in starting in we deal. have United. United. JV relationship, The as those through September Avianca about We’ve good as deals conversations maintenance the engine I it is with

kick joint both very airlines And as will of us, so I think that for will year. as in next that around the constellation think I the world provide good leverage assets United sourcing repair the initiative well venture,

Devin Ryan

Great. Very helpful. Joe. Thanks


from comes Long Our Stephens. next from question Justin

Your open. line is

Justin Long

morning. Good Thanks.

of thoughts couple wondering crude-by-rail et you pipelines, seen playing an update crude-by-rail if cetera. and around there, on for that do term could the provide you five see some with your and Jefferson to first, to three back shifting we’ve of on Alberta forth a the next longer government, maybe questions the years? How over was Jefferson opportunity out with So I

Joe Adams

those producers volumes rail the while that the Yes, up play gets Canada buyers that on for a we in of Gulf been sorted Sure. will role, situation out. I have most actively the rail and Justin. a lighting Thanks, pipeline that think next the three significant think years, and I expect the

in see think in very that is good. and the for in longer, whereas committed years conventional looking way the past. we three be could next the And So volumes, crude-by-rail very, to I four

been think – I less have willing to do been that’s people that.

from the that conventional think I XXXX going to crude-by-rail So Canada see to XXXX, going in we’re – XXXX, period way. the is strong

which to So rail. in this thinking two XX I really projects advanced this mentioned XX-year last be deals a out that, take we beyond I quarter, and for time, both that have would

by mentioned, And contribution highest we make moving Jefferson by as I rail. product at the in

make So it’s that only highest by will Utah. one focused but It’s is it’s pipe. move the from of them keenly waxy product margin. And on. to the something way crude the money, not we’re And never

always very rail trains of that test and came test going the client be in The We So to it’s handful upping well the quarter. several move. had in interested a ran volume. is the

project So I I location will And believe you’re going given that’s hopefully about our that’s very term long very, a for capability. something, off to long hearing a and us. for time. think be for pay us, that think I

from to product is move out pipe second you rail than Canada, the the economics is then longer to term, better way if the strip a want the by best to make And diluent.

projects I We are to number is of a happen. one DRU. going build it. Unit that pretty Diluent may there But in optimistic or built. so And And what’s may more it’s the to or that not I’m Recovery DRU think involved underway be get to going of called or those

think people cars, lower it’s and cost demand And potentially shipping cheaper non-hazardous. non-hazardous on rail – I there also is re-characterize and cheaper do way also on rail every is is by figured it have rates, on could The cheaper measure. product the finally, insurance. It’s that out rail a the cheaper it. to you’re

come contract terminal. opportunity our move and that So to I for that is time XX the think probably into to DRU rail a should the has provide XX-year

crude they really diluent So from very I be Utah from Canada near big think is conventional what three carbide strip out waxy strong. us. a Canada is story I Longer-term, to from crude-by-rail call going think term, and years is for or

Justin Long

hoping the breakeven quarter? third then in the asset of get there for mentioned. rate wanted run updated on you basis? think and longer the to horizon as Do your for we’ll that here now or around that just opportunities factor the you kind to see EBITDA EBITDA Okay. in I some the thoughts Jefferson, know second maybe in of going just were term the you breakeven XXXX, a quarter, And you you of get things all on we get but where into to breakeven the timing adjusted look including

Joe Adams

profitability, year, quarters. of million those in spread QX each took two QX think the $X in probably this last and we million year just of made WCS/WTI Well, $X of advantage terms Sure. where to we of in of I

of time Then And so source of in the take Unfortunately, time. production periodically income enough come wide to I curtailments money. from of we’ll QX, advantage that a it. back make good will that was believe to not and spread because was the

So we QX. of income didn’t have any that in

that, XX-ish our totaling in XX-ish have the – the were in per the said sort QX mentioned it trains should QX, as second the be we of volumes the been month. in in quarter, call, XXs well we increasing, Having doing XXs. into and high

QX think So be for positive, profitability, definitely I while should positive. or be breakeven slightly current QX maybe should

we don’t that – So will a have in I additional next it crude-by-rail. year, think and we have then

connections. But have pipe importantly also we

then kick very, And of by still the leverages I believe, the infrastructure And in. rate terminal think time last was is very the the of doable. really and I middle profitability where XXXX, $XXX should I which million so that run that’s mentioned, whole the number,

it’s tactically way, strides. outlook and the strategically and is get made it good. So I that, it’s there we’ve as every fast frustrating other like. as quite But – huge would we very doesn’t know

Justin Long

I time. sense. Thanks, makes appreciate It the Joe.


Citi. question comes Chris Wetherbee from from next Our

open. is line Your

Chris Wetherbee

actual by of heard start more How of permitting wanted tank you’re little you timing Talk about the sounds a maybe half. do talked a that products Joe. up of offloading on like you there. store, that? to bit times about Good in pick that ramp up, guess second you terms processes development see think you what about color of can have things down situation refined and up moment. I offload Mexico. It bit ramp in and in think seeing sort for sort situation conflicting tank around give the I of little you a of in are sort the But Mexico? little Jefferson and as bit the thanks. to, us that on if a confidence, morning, again We’ve Yes,

Joe Adams

building who Sure. it’s on has there I is we mean, the what shocking just it’s not been delayed. hear ground, from we’re the from that not been Mexico new things and situations, delays are, in people but

end it a and facilities tanks just And going So be to it’s of – complicated are to new storage – It’s should it’s online. August, that’s not build hear but Mexico. we new come that in terminal. that largely receiving

very it. they So a – they that. is very pretty strong. customers’ be are but feel pipeline going if forward The with would the not I good term And about positive – think demand long about project didn’t

XX,XXX that pipeline volumes a ramp allow So up day to XX,XXX that from will to barrels currently a day. barrels

but is is outlook good, Mexico, the think so. I So it

Chris Wetherbee

it’s Got gears to cautious maybe it. makes it. the Yes, about I And sense. It onto think, then switching side. going be aviation

good bit benchmark be opportunities set little sort mode, harvest next think we reasonably the a as about in of the quarters? we taking you’re another year? in that you that about you to the of a the half Is you Or So couple for way should advantage should there is How game of XQ, of on? focused a there. back think to have the progress of through

Joe Adams

And think the program the we deals I we remarks, in are think in bad assets identified have way. don’t and QX, a negotiated. I mentioned as to I being continue because it’s going

It’s So I about basis. to quarterly harder asset a pretty forecast always good feel that. on sales

into get maintenance we happy There’s leasing And work that’s them. like. don’t know the the but repair. trying to And I very that, times market as we is what – many once and very help of the I is bought do look needed assets lease we’re market and will and we aircraft is, or lots strong capital mentioned, strong. QX off have to that So market

Chris Wetherbee

It touching kind the Yes. just I one I dividend the question. final sense. makes and guess one, Got it. And of have on ask to

that dividend. we the coverage, it that to think is a of when there you need I your two of that to you get see the Is period sort how all when around before how you times of that’s is see sustainability thinking increasing ultimately of sort time step need process hit think before it, answer increase of you about can much get Just appropriate. Xx breakpoint, You up? think it coverage dividend? you about distribution a kind sort taking roughly you up of see more of get that you to need of and to there sense the comfortable you once guess

Joe Adams

to mean, Yes, we it. have more want – we’re would you sustainable you’ve long raise it, customers. mentioned, as it because contracts want a and signing had would we’ll I for want with I one-time event, think you so But up we sure. term more

So mind better. in forward-looking just gets visibility – the my visibility

will biggest to be So that definitely – want dividend. I to don’t cut you want the ever think you don’t issue. want But the

want if sure you’re you make to raise that stay So to it there. going you

Chris Wetherbee

It it. Thanks guys. I very makes the sense. Got it. much time appreciate for this morning


Brandon Our from Barclays. comes Oglenski from next question

open. is line Your

Brandon Oglenski

advanced it repairs Joe, up and get I everyone Hey today? get for my that how more to much running? adding come remarks. to bit about we your you’re Is engines I it in a little morning taking I contribution is prepared this mean, and guess could could this What wanted Hey, good JV to? back question. thanks detail there? talking

Joe Adams

Well, there’s no today. contribution

$XX back of could me market half I have products in it – we going year. expect said, is meaningful And will there. next to in the first to commercially be the is, It’s we to million, be tremendous. $XX we XXXX. EBITDA As grow year from And meaningful available I opportunity expect contribution million. the And next don’t mentioned, a

If going grow next double. years XXX is AXXXs, and the market at in you of that certainly repair existing almost over on NGs look aftermarket to the XX that are engines

timing having more because frustrated about. something our the costs airlines are inflation. the and that up We’ve with receptivity that’s is And now and not above detail keep happy So of engines been high obviously going is at well they’re these products. extremely with perfect maintenance airlines introduction conversations in

receptivity the environment tremendous. market and macro is the and excellent customer So is

will So our starting of I huge business contributor year. expected a fully part and that our be a to story incrementally huge Aviation next

Brandon Oglenski

spend. you’ve too? couple times a And of bit products there also go Okay. you deeper Can mentioned in a R&D little

Joe Adams

doing commercial really for not that We’re yet reasons.

Brandon Oglenski

Okay. here infrastructure And Aviation are obviously, in deliver doing this of to guys waiting but the for year four well is side, you returns.

I you you about infrastructure. get know XX% sure ROE it’s the returns a base of what to of pipelines target mentioned just facilitate to and in but before to you out So a got capital kind Jefferson? long I on talk long-term? the build question, they think on want And leasing come? we this is more now where that business. mentioned you these that then, I’m not require Can Is

Joe Adams

stabilized Xx to So XXx, as to In can world those the XXx. as infrastructure contracted projects cases, with Xx, And is roughly high we’ve some once in be today’s the cash for profile, EBITDA. first infrastructure flows in question, said those the what we looking they’re Xx, see return starting delivering that we’re build XXx. expect value you trading of projects that

and of business. plant which some value metric time. that is bad railroad build this to power this Ridge value It’s of the on as we Long at creation expect to CMQR of XX% with So Aviation sale a return a sell realize expect to create that we value a the Ridge, turnaround not year. that Long four developer, And and we and look it’s three equity, than different years for some the year to really

multi pipeline, is build million the about So XX XX $XX the the pipeline to The to local roughly think outbound and mile that’s – connections which that. projects refinery. crude pipeline, it’s build million mentioned, pipeline I how to about as to XX we then $XX

the by mentioned do. $XXX will funded be So that million figure net, that $XXX to we’re million I that going debt deal

$XXX So debt million of add and $XXX raising existing we’re refinance $XXX of of capital. new million debt million to

So in that’s that all number.

you leveraging a infrastructures, existing rail tanks, you $XX to make effect is you margin that, docs cover high then I everything, rail cars, that there before And cover as – connectivity, have there’s high tracks, it’s you the you once first when does terminal and it And million pipeline of money. mentioned, SG&A extremely contribution. incremental. built have add and all at roughly it’s But

really you a a but leveraging and it’s not come, once infrastructure achieve off So of sort the certain build they it’s will it’s that highly of accretive. level,

Brandon Oglenski

Okay. Thank you, Joe.

Joe Adams



next Instructions] comes Our Rob Salmon Wolfe from Research. [Operator question from

open. is line Your

Rob Salmon

Genesee to thanks Hey, us just sale. solicitation guys you taking good for the RFP? CMQR morning, estimate the and of quarter properties. Could acquiring you big North around a give the our update American in on the and with XXXX bids for question. had with this alluded an Joe, Clearly XXx you event guys it the are where to industry XXx closer for we Brookfield implies

love terms your get received valuations well in offering. of I’d the So as of perspective you what have sort interests guys and as to on

Joe Adams

I in as a would interest of manageable very there’s a market, there, it’s a – for sellers so strong, nice think the I lots out the size people. it’s of this is lots difference it’s very characterize market that asset

money, The lots So this time is a but of still we spending strong good would is sign. interest. say I have and preliminary market which there’s non-binding, people is very stage, of so sort

more think, point. we’re In by would numbers. said really But stick guidance past, we not the and we people $XXX have terms to giving can realize valuation, million we or of those at in I this

Rob Salmon

helpful. That’s

through the One online. car where the the property CMQR? kind if And business. you revenue you little the from little more quarter? your built imagine of any bit about Could contribution nicely is looking flowed give in that harsher expand a as business what that out us And a had of been obviously was had the you P&L of bit second had comes you a to expenses forward contemplated talking seasonality, the would color car cleaning things the to could opportunity EBITDA it’s guys weather, And regard the that if what I you business? with located. you expectations as But the talk about business at are cleaning the

Joe Adams


off into very really coming it regular be service of that So We repair. going some it’s seasonal. cars owners not maintenance driven by one seasonal. another and service expect It’s to are don’t and or

it don’t doesn’t seasonal. have make we history, it’s long because much believe, believe don’t to anybody. be a May, very of we we difference that a And don’t it’ll in So but

thing. one that’s So

through probably of I expenses flowed million QX had think that P&L. that in the we $X.X

get a lot starting and the they’re until system April, finished. in inducted we into revenue. We So didn’t don’t cars have May, of you paid really

was So the it expenses revenue. were work in revenue QX, doing the we from more

as ramping and few a is Customers dollars the in you some many are million speak. imagine. nice less And customer shortens We is list price that is extremely to equipment requires in business so a time, that, most the It’s this very cycle put sexy growing. not sensitive. man – can it’s But automated business industry the high not the industry in margin. not people hours, that

on So in when And sort we capitalize to able you put be it’s of product, should some you that. and better sticky. a money create very

and main As I using you people once the element mentioned, get the system service. they revenue like – the is

if can repeat very I give service So it’s you as you And a customer. margin good get said, of lot high business.

will year this for good very numbers play we and buyers well. that very that think think, us It’ll look So we’ll later at attractively. produce also we think, will

Rob Salmon

it. sense. of One question. follow-up Got final Make kind

Can you give the quarter on talking positively the curious realize of you portfolio? the to the on $X.X Aviation some good was and an update market what I in is? billion earlier appraised value us your number about spoken current Last were proceeds the off sales. call. mark You’d of you kind sales

Joe Adams

– right about We at the billion. annual a annual But an but about same. metric mentioned, do it’s $X.X engines we as one full – out same gone So the part interim now the look if I of skyrocketing. has the have updates. in appraisal, was It’s value you

run – for recently few million. a have probably sold we at a $X out ago I million $X we’ve So just months and worth six a core CFMXX, mentioned

market we done the always, So but capture that, are. appraisals

Rob Salmon

Makes sense. I appreciate the time.


Our question from comes Raymond next James. from Robert Dodd

Your line is open.

Robert Dodd

Hi, guys.

that that the X also going million incremental Repauno. $XXX million the incremental and good. you pipelines, to of million on you boards I – cetera? in expect $XXX et Jefferson? you Jefferson, to how $XXX the cover non-recourse Joe, now, have projects Jefferson capital, get two that Just year, million storage the expect of building is in incremental the in Would back financing, but long to build debt out obviously indicated barrels terms is last mean, to at in obviously the that pipelines to you your which right to going that million cost would the of On kind you plan later $XXX the stemming then obviously you’re

Joe Adams

capital covers million Yes. – for $XXX an it’s million pipelines. X includes budget through the That barrels storage to XXXX, And which will and cover XXXX. everything the additional dock of full includes

Robert Dodd

Got it.

Joe Adams

barrels don’t but track. barge of a two million lot. of connections. thousands that rail the And we’ll of storage, docks, have feet X.X deepwater know even one it’s Which dock, point pipeline I at number,

right covers that everything. So markets so are debt strong The now.

than As see our current the less $XXX total you costs, rate. be can materially million interest will

Robert Dodd

then appreciate the Repauno. that If goes – the color. I to question can obvious Okay. I

Some projects generate before. expensive But that the that on project. us And given up cabins, of a those those lot are are at of EBITDA. Repauno, projects granite can the you’ve the coming storage they’re numbers expensive

presume well. of non-recourse timeline to financing expect investments what for when next over Repauno significant place on at the pretty put in you as those few have would I you But So – the that financing side years. a structures

Joe Adams


are next as Repauno. financing for spend debt non-recourse on speak at We debt financing, working we year

and non-recourse probably really we QX we be We’re financing. to a raising $XX estimate which that million than target debt more QX, will in

that’s So million between we XXX probably and million for that. $XX And think doable. very

by contract goal call spent. a and already easily QX So financing Phase and we’ve the end signed of of that. will to then the that have what will that cover debt we raise is conversations X started we on And the

I contracts Phase up as the because potential likely for we’re want X, go we not Phase to which mentioned, is we’ll very focused buyers and debt storage will But readily to again, will capital on and available our spend. be for bigger than have financing think VLGC the we opportunity. that more available actually debt the that contract, the need is complete same the capital, X to really we than then granite a X, yet to or more Phase you similar line once on financing

Robert Dodd

I Thank that. Okay. appreciate Got you. it.

Joe Adams



I’m showing now call over remarks. closing I would to Alan to the questions back like at for Andreini further time. no this turn

Alan Andreini

to for updating forward QX. today’s you all conference you after look in call. We Thank participating


program. thank concludes for This participating the gentlemen, and you conferences. today’s Ladies in

disconnect wonderful a day. You have and may