Fortress Transportation and Infrastructure Investors (FTAI)

Alan Andreini Investor Relations
Joe Adams Chief Executive Officer
Scott Christopher Chief Financial Officer
Brandon Oglenski Barclays
Justin Long Stephens
Ari Rosa Bank of America
Josh Sullivan The Benchmark Company
Giuliano Bologna BTIG
Frank Galanti Stifel
Devin Ryan JMP Securities
James Monigan Citi
Rob Salmon Wolfe Research
Robert Dodd Raymond James
Scott Buck B. Riley
Call transcript
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Ladies and gentlemen, thank you for standing by. It is now my pleasure to introduce your speaker, Mr. Alan Andreini.

Your line is open.

Alan Andreini

Thank you, Sidney. welcome XXXX the Earnings to Infrastructure's Transportation like Quarter Second Call. would you Fortress to and I

and Joining in me Officer. note Also, here on download Executive open investor Officer; if today is and that our are listen-only Joe Scott presentation the is already encourage to our this Adams, website, Christopher, you've which being call Chief you press not webcast. please Financial our We've mode we an and posted public release our to Chief so. done

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

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

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

Joe Adams

XX. as XX, Thank dividend dividend paid date based be The results. a welcome, the per inception. public To XXth August you, August for and dividend announce everybody, $X.XX shareholder XXXX since XXst Alan, company on and second record share start, to on quarter to call today's of our I'm consecutive of pleased a will our

million of million to available was XXXX distribution. and million. the metrics million losses On normalized EBITDA of excluding gains for to FAD $XX.X was million FAD, million QX XXXX $XX.X in adjusted nonrecurring QX million or of Adjusted QX The EBITDA was $XX.X sale XXXX QX a compared in XXXX. Now and versus QX $XX.X compared million let's QX normalized On or XXXX. QX are $XX $XX.X million excluding us key in in basis, in XXXX XXXX $XX.X XXXX and QX QX $XX.X start XXXX. million adjusted and of QX $XX.X items, with the XXXX $XX.X $XX XXXX $XX.X was from compared and proceeds basis, FAD for in to of sales, XXXX numbers. in a and QX EBITDA QX for million million of of funds the

from leasing number $XX.X quarter, negative $X.X second FAD million businesses, the and and negative million other. $XX.X $XX.X portfolio, the comprised our During our of from was corporate infrastructure aviation million million from

Now negative million aviation. million the and And given hours more and a let's available to impact after $XX.X in quarter significant circumstances, EBITDA resulted value. the cycles of are which from fewer half than pretty have cycles impact from an turn hours and QX further, in the decent estimated still QX had Aviation flown, COVID-XX. $XX means

engine we where offsetting back demand lease engines as airframe demand. is income took recognized $X and early X believe separated in will negative, million than the we terminations, we from Somewhat faster and return aircraft the proactively

the collected more QX, of is term and which without approximately normalized deferral customers, we portfolio, cash During deferrals of XX% from for X of on months pandemic. of Overall, negotiated effect of the averaging X run return extension. rent a approximately rate we XX% in months a $XX lease million approximately

worst $XX we believe million the now first of a the lot, XXXX, for to that Turning impact total, and is if Whereas half to XXXX. is range with QX million outlook of we the behind from environment us. year. not less, a negative of onetime COVID-XX be to of we closer of this and $XXX The half estimated last COVID-XX in potentially the of $XX improving impact in quarter, to over expect now behind us million remainder

very portfolio, good we our year. we own currently aviation this at about Looking expect and what feel to what add we

comprised aircraft and our engines and As engines. and XX%, AXXX fleet cargo of XXX aircraft CO aircraft narrow-body XX% of was engines, and XXX XXXNG and June XX, and XX%

levels, recover. As XXX fully in markets balance of of the been see from the first XXXX expect and continuing XX% less Vietnam market has such improvements expected, and AXXX than and down are XX% almost a and grounded to high the some reopened. China to now fleet is below as to XX% is The approximately as the XXXX we April, Europe

remain flights will to trade cargo XXXX industrial long-haul We suppressed activity while of and balance market rebound. XXXX also as expect remain strong for the passenger the international and

of was in inventory even markets that Finally, closed invested One, value. of for X engines We in changed a leisure being our around for was the values, the and longer. But new we soon. overall aviation think as reopening be reasons. but XX% low largely conversions residual for at are recovering conversions place XX% result and airlines And expected totally moving begin shut engine limited. has proactively take down, are engines engine now. freighter off value cargo but two, leases XXX Demand best time taking utilization extremely the many airframes. international Overall and to today. added but QX selling with markets aircraft still with world main that fleet take XXX will engine us, is and And are to engines the supporting to

And XX%. of engine utilization engine of normal and XX have to XX% over this we to in level had extensions now year. QX, XX in that return a leases more QX to we While anticipate engine July new start we lease August will

dramatically back times cash and equipment, aftermarket cut crisis in of ahead, surplus airlines Looking engine maintenance.

form, CFMXX with XX concluded we investments been these regard XX believe in With we aircraft testing looking best the in commercial product VXXXX all sale-leaseback actively and more requisite are completed, recovery covering XX-aircraft With engines the engines, are X today. similar we all and CFMXX deals, over are production. successfully totaling CFM and more of to which first made. ever the are our France have approval begin XXX has in engines. We and final products, or to quickest AXXX waiting joint flying, to venture a Air exclusive add is May, are negotiating some We of

us a The business, overhauls second an a major expanding product MRO is targeting launch. still with a more exclusive products our along aviation growing capital-intensive expect moving dramatic our to importantly, XXXX share and CFMXX shop to the MRO to favor the to year-end of outsource in potential and everywhere a proprietary with is accommodate our aftermarket perfectly Also, finalize partnership we market. looking capture maintenance of visits. functions, of requirements cost-saving positions airlines for With shop suite change

Jefferson, price improve QX. had market. effectively We continue half Canadian several another us There and Conditions which down with million are QX, plus quarter up projecting developments a were the decline, rail Starting despite are infrastructure. shut for we EBITDA important to and setting Jefferson to and XXXX. $X quarter positive demand of the disruption a crude second in several today, executed a in took and storage took million ethanol deal customer issues another went jet positive over which good at COVID-XX who the on oil the rate. Jefferson a in EBITDA related Jefferson Now by Altogether, customer tanks at million used longer-term from to quarter. from revenue which to a XX% tanks. have we year name a had higher over for And crude finally, fuel new in lease an $X.X a increase Aramco's $X.X newly-converted for storage U.S. last existing Motiva, our the tank, with marketing. terminal for Exxon the in Saudi to

QX Jefferson QX. also we major the to to connection safely. largely agreement in costs packages, were QX operating paid Cushing, connectivity our numbers due pipeline executed pipeline show the We the is savings to with QX We pay while Head being environment pipeline in in projects. address to in operate reductions an Oklahoma. importance us by current count will Of inbound marketing X up reduced offset line to with and progress severance give COVID-XX for which continuing the made

Southern November with X-year this And pipeline, a becomes X-year pipeline operational Motiva at which construction contract be storage our progressed is time, that project, also Motiva, to Star expect of contract. We to with by year. our of end which we outbound our the

most favorable of a pipelines are actively position we And in or X Finally, bring and to as crude to scheduled to these the or under in cross-channel see in and and Exxon maximum at transportation refiners be offer ship these refined truck, will to those are completed optionality of the are flexibility our X by this pipeline. any ability completed, X pipeline and construction. the pipelines rail, well year be projects a uptick or When throughput be to will means products X we in Once of times, our producers. expect November various volumes. to dramatic customers completed, are

We to for in will soon optionality. look terminal will offer flexibility have the all modes, pay ability business maximum customers and for the and and

Now turning to Repauno.

COVID-XX, of our confirming size than pressure-tested, market. market in to is much the loading Phase addition important bigger X been of delivery to delays to QX. at propane equipment NGL us XXX,XXX of ability propane because has butane. store the that butane result cavern end to the construction our be use to expected to barrel This ship successfully related not our of a is is cavern Also, train the As of some operation to completed

early this XXXX. in QX begin QX are late negotiations for or XXXX. firm The And are negotiations of propane QX of currently early going of late to year. commitments first in with we we both cargoes have well, either and offtakers in expect our propane QX in to in We or shipping expect producers deliveries and

for is the Phase hand. which now X Repauno in to the permits As are of X, VLGCs development, X designed for dock

is caused at New and discussions, farm concerning As Repauno that the Repauno in construction But QX we wind as Bottom are into of in line to Repauno. bypass discussions XXXX. reengaging, as are wind seeing state the is developer parties going some a discussions delays are those for construction has a road and the steel and be expected distribution. of manufacturing completed development at opportunities to in And component Repauno, of well. commercial started the to farm hub has other with advanced COVID-XX road we finally, Jersey

we as frac business another good continued Turning to share. Long to QX market Ridge. our take for quarter sand was

us of face the half our tons which in the budget. combined, operator high-speed operation, ahead of Marcellus the Utica activity transloading basin. basin, first XXXX, low-cost robust a core in Long the make in and which the has million approximately is For our volume of strategic in remained result transloaded drilling location a Ridge's shale, is and nearly the which we frac of sand, declining XX% of of X.X

to a which other with plant to contract should fuel addition, from users: term to longer and at over. developments Furthermore, new to commodities of approximately two, transload is center to November years. In of these X-year And interest on customers. by see the salt. is give the and these and we large XX% Ridge. value. and $XXX power-intensive quarter, level as X be plant's the part would second a with electricity generated to million to both using signed in be power The XX% emissions customers, Long Ridge would it centers QX, million to by have term data industries power $XXX of higher which earlier road COX as data prices. construction plant from taken Long one expect largest developing The particular is power, at This our If are looking an premium are plant look power than continue to and of been in contracted for store approximately interest because one, hyperscale our Ridge's committed utilize happy, we company capacity XXX% by many data $XXX X.X deploying generate centers years capacity XXXX, EBITDA high companies, materially alternative on and higher capture; the the budget, facilities carbon-neutral of of EBITDA go like hydrogen million, from XX we the back date of to increase continues options is site operational Long conclusion, In committed would is the that of guaranteed firm. time we, to a and interest we XX% construction on

was our successfully focus Narrow-bodies the On resilient, to are cost X the enormous for has crisis. backbone in those items in on hard our pushed to receive customers QX and And small a far it's like In aircraft stress our credit during other aviation times narrow-body robust are putting deals combined our navigate decision. always able in mix for most of our portfolio our confident standpoint, I but Also, this, deal our decision dramatically have of more structure company, at ago employees who we before, our mix lessors primarily terms. This on security lease revenue The and better industry. position for While be structures aviation for other trade and and with right deposits industry. to that industry are as the in the thus X I is, times the would the liquid especially than being occasion, public makes a business made just of challenges is those portfolio these model. alternatives. years portfolio clear the result and employees, us leading From performance and that fleet, have any mentioned. the of our they most no said reserves world the equipment proving not our part, our I us maintenance has portfolio and aviation, model a reported.

In location, ago. in to to putting Finally, Advanced Repair bear looked aviation the are have connectivity in location in happens, those patience fruit years venture, excellent becoming estate, ago, known, started will but offering we to makes the for we we is bear we area let most and our about pipeline of hard the That attributes as me of portfolio potential differentiated in and that to applies years we exciting And together And days it addition, process and about fruit first location, as planning the formed location. on well it will, which hard from joint extraordinary we If also business. years it's terminal considered phrase with reality. infrastructure results. return X X.X we markets. hard When real location, initiative work roads. selection feel, aviation, maintenance it water, is believe rail, for the find and away which is, to X.X the all and the work but difficult, more the well. leasing to

to at at Ridge, With with businesses and and investment to respect And the XX have EBITDA. the Our same XX have clear the see been if the X to results. railroad exactly way infrastructure to we to to Québec more. goal at from sell, Xx now -- and side Central the Maine Repauno, and to did and and to build Jefferson XX% EBITDA to interest has always choose, respect XXx we those EBITDA trade we in Long the that XXx

this business we and had see things report beyond. continuing for section, test never spades have a short, I'm to mentioned few the I more and stress, excited the FTAI of this As In got and that growing we through successfully the at that this been of quarter. the today, there And strength beginning QX, than is in better success extreme in are pleased ever about to our I've balance nor future. of that over QX I where the and been confident prospects model we

I'll the with to turn Alan. So call that, back

Alan Andreini

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


Oglenski Brandon with first our line question Barclays. And comes the of Instructions] from [Operator

Brandon Oglenski

expecting forward? just on or Can you I Joe, rates going But of XQ? relatively the again that are does any running utilization you ahead. like XX% remind you're leases. us And it you more, deferral that quarter, deferral your much mentioned the bullish you're guess, that some had rate in during default a looking prospects sound estimates your

Joe Adams

As utilization a XX%, I to the expect engine to to XX% XX%. we XX% on be we targeted QX which is about sort side, have of mentioned, -- always

engine And So to that the earlier, as we even going market we the stronger. shop think lack with airlines also balance that will year be over improving. doing of is of strong and mentioned visits, expect I the get the

year, there'll next think even be shortage. we sometime a And

So there. good the outlook very is

advantageous aircraft we was bodies, back to the assets get narrow and the was weren't for actually And the and X up to overall, they in take use airframes because I early. the like those going in weak, took and supply On we airframe the it those felt of we longer of remarks, us going scrapped engines. back it to or credits engine shortly, the took business. and airframes the lease than engines And up lease the term supply a X side, the utilization think were we've put survive, I is Because mentioned there early. coming we either as -- to was

we So competitive airframe deployed quicker better, in than to the in market will be get assets think those engine being market. the

deferral XXX lot deferrals portion we did the XX% Because, were side, of Most On of operators and flying. gave those a those as our market. of we deferrals. or are portfolio, the those say biggest just mentioned, I of not the in XX

XX% but where only we planes is very because the XXs probably end fine still the and being be of to portfolio. of planes, our will converted the of excess XXs And will think that's cargo. highest stress, those of about and cargo strong, So it's those ultimately, up most values

Brandon Oglenski

Okay. prepared products. the at you're highlight, end I your you Really think, response, engine remarks then of getting that and did that close appreciate these

then that JV you I is just Or just sell own the of towards think you how something -- externally to potential partner, Is too? I a for about your fleet? you want this said commentary is your approval sooner MRO something that into think does one the Can product on us And up than year. coming update fit end one the process? structure.

Joe Adams

So I'll start with that.

we'll approximately million a there's going will have in products. priority in this we'll queue. We -- dedicated X to mentioned the cost no we for XXXX, shop another fleet an to have airfoil us X shop position. that side, It's are substantial that wanted make advantage. have of MRO and and it's have mainly venture. because of to $X to -- ownership a the shop several the place we'll interruption we're And sure have our in in development, about visits joint XX% that manage own that have we our portion oil visit a the was have not And we really and On

been in we've the the a simply change a looking partnership. dramatic it's So year. business, over for But at MRO this with

MRO actually And also significantly empty. it large next allow deal better us think very own the We got all with XX It'll the years. shops address largely for facilitate Now our for a the will a over our fleet are managing -- the CFM engine company. us I needs of parts.

be the and and forward, going be as and being process that have to opportunity could used this could take serviceable put the with engine, through the the of will approval given have to an One that if some OEM and want new working engines we significant for that that of control whole we of something out profits in FAA the comes things of do. that is we and very we us these collaboratively also the venture business to shop material able manage into our -- volume a parts, that is, source we able to joint period. been and we income of parts, sell do The we that's see

lot and been as sharing was a back there's I said, lot terms and forth of a So in of of information, adjusting, what of lot needed. a of

been of tests They're with completed. are they've been this, made, parts conclusion the actually being have reviewed. produced So the

first the with substantially part, I it's mentioned, complete. So as

final of the for seen up all submitted But been review package. been what just has before. it's of Now the has final

So there's new. nothing

to will move very hopeful that that, So has it and all smoothly we're date. as confident

Brandon Oglenski

one, you to, on Okay. any compares just current pipeline I And the aircraft infrastructure liquidity about I Then last the appreciate think, looking the you're And your commitments XX mentioned that. can side? to in position? talk that acquire. that how you

Joe Adams


million did $XXX we deal just a So last week. bond

we full, So and million $XXX $XXX revolver in that paid cash. the of down have million-ish,

per ballparked have of aircraft plenty the to aircraft, the XX million we to loading ship the have aircraft, roughly I close the So we With think you deals. at system. on $XX respect rail-to-ship X $X to you to remaining -- of for Repauno finishing -- million commitment that if was $XX deals infrastructure, about is those million mentioned, I liquidity

in Jefferson, did all that financing of nonrecourse QX So pipeline and in QX. year Jefferson in as we're anticipating -- QX the debt with And that's financing we happen that tax-exempt will of QX at the the this market. project, in

So infrastructure. needs no significant at


Stephens. question our comes And with from Long next Justin

Justin Long

Maybe on the you the about talk as forward? Joe, how was going just would capital, that leverage last about could the recent bond comfortable taking to on And areas deal deploy question. where what's think received? follow-up going could different you forward, you you feel update

Joe Adams


the So was energy had then probably the as a side what was fixed basis bond is not traditionally great being cost, did on and aviation higher higher also market the business with income points it typically, exposure. deal than we high-yield in the XXX of we in done result a

So having then that, very $XXX had million very, for $XXX that We million. strong. increased orders $XXX -- $XXX the million launched the said We deal it did. over and million was we to of reception but

have very up. Bonds traded So very, good reception.

basis at XXX pricing. seeing returns way pleased up higher basis The we're really though, points. be on in of access X,XXX would order that points. estimate to able side, than more this capital the the on returns So to I at we're have point very gone return the aviation

given that government-owned only higher distressed, points engines with has percentage airlines never right doing more the industry XX So deals and -- we're have backing. on been now than been historically, substantial that tremendously and CFM

or even not -- talk yield year. venture not When year we So next better circumstances that the year in this that next upside return, about to having it's parts have I joint factoring even from a I'm hard that the set will given of end factoring. starting we're for the imagine of

very government, I a, you're airlines. owned XX-, happening these competition have think that buying airline prices is it's for in dream a you able buy these of government-backed only terms a governments, b, little And Nobody choices. the by there's an X XX-year-old else assets and is, it's from at the airplanes; if being us. So reason to that's

can find need you us more and less allows as money. to I like to go and the which go much very people or the for to -- do go say, I if don't the you is deal, take money, conversely, You you government government back that don't and can have not popular. ask

that's deals attractive. the why the So I market is so -- think

targeted about In terms We're we've I of leverage, or XX.X%, XX%. always on a nonrecourse think, debt we're basis, something.

we're the higher Obviously, this we've not environment targeted. So to want have is leverage, you'd one at level right lower where leverage.

and So from Ridge up to we'll take down stakes we've in leverage then Long but much before of look advantage some leverage not with of take I bring done minority stock to to do year. looking to sell think We infra last really here. did we or CMQR again the of asset raise potentially the just some issue as monetizing could preferred potentially sales other things potentially capital and as

Justin Long

now Okay. That's it going expecting be really guess, on to $XX headwind. less. COVID back helpful. what I million to or said you the you're And

about COVID year? if these X that's of you deals just are we kind think think pipeline, the fill this As hole done, get that X the enough in do aviation of you to deals these

Joe Adams


right deal The $XX first about it's million, now is France, probably the million. additional and million with working -- would deal on is of the second approximately third we're $XX $XX EBITDA. I Air deal And

you that add get you the well if up, above $XX all So million.


from Ari And Rosa next with our of comes America. Bank question

Ari Rosa

have in patterns of some the you So what assets you hoping Joe, for regions I address be was the lingering you that thoughts and of market COVID on variability of the leasing? think across overall kind aviation specific negotiations just the and in not across could necessarily of FTAI, offer effects demand could terms and industry. COVID kind just negotiations How changes also for of those the but of aviation types to experience the

Joe Adams

Sure. Yes.

several points. So

has done the it's can domestic Asia think I considering in pretty that markets anybody it isn't I in Asia Korea, dramatically -- different fastest, else's. the China, recovered view well you side. And our Vietnam, regionally, and on than other have see mean,

be international long-haul going years. challenged to several is mean, many I So for

to would own we and AXXXs And want any. own lot not so don't a I XXXs of and

about is Alitalia, to where have then up. THY, And now domestic France, countries which is are sort Lufthansa, I most. in control, they're add of aircraft necessarily few flights mentioned the the and a flights of markets, next in not So want starting I care facing equipment. be a given to the of surplus what imagine you term, going can of under is Because to that -- hard, going Long in years. coming the domestic I that's there's deliveries wouldn't lot to on the new be gotten -- lot be to all virus Europe what largely Air very opening be we going that's

any putting kind people. at but every But we're bigger big overhauls. discussion it's difficult. new this much -- of They it. is is previously positioned we're is when and be confirm stop I happened one, crisis, on what asset -- with had all look And seen we've engines going in is And lease through to has our airlines almost that a putting engine where major So we've airline. that the

same You see articles confirming the thing.

maintenance see You repair and shops out. emptying are

time, So and those time. flying it's happening. the the using But up airplanes at people same are green they're

XXXX. be be people green their fleet, once in there'll probably for us, for time early that existing engines their up shortage. increased to in means and sometime a going use that, There's leased demand So

what we as XX the CFM same, good quarter prices at expect Air We're X our deal the maintenance developing, now. was very announce CFM timing we're approved perfect are our this products to year, add and hope finalize to engines get close. many as at can right and the we So which And all looking joint that have to we're That's that's we to this venture, trying deals. which other engines. France

where So we're I to it's that's headed. from see to. there think But not focused to actually being want you and trying we're is be, that's puck that's that think where going it's positioned what the and benefit you that where And to skate this. -- I a great can

Ari Rosa

Understood. it. Got

obviously, for So market. it and navigating, sounds congratulations exciting FTAI, really difficult on a very

will -- It that to not the FAD. the turning dividend excess to anyone of difficult excess, quarters So probably in the maybe one but excess dividend or what's the be of in continues of most comfortably well well in or for in is is of around Any spread of and dividend uses in. you're increasing the either that thoughts that where face on in capital dividend where between of in kind the FAD the coming kind businesses thoughts at?

Joe Adams

opportunities. great have we investment aviation Well,

-- where So our we're that's CFM engines my with to priority invest would returns, in these like doing. just be

those the airlines are I on. of It's not going out So distress to get quickly. to go going see --

So there's more going to deals. think I be

So we have good uses.

the and been I it's And important terms always dividend, In part important was of of that. our maintaining this and an quarter that. investments we've us, thesis for been shareholder mean, done

feels great and of And not have ever have that the one also to the so to reduce worst and great is what be a energy dividend like and investment gone that, arguably place through opportunities. I think both environments aviation for

feel I we're a spot. like in So good


from comes Josh with question Benchmark next The Sullivan our And Company.

Josh Sullivan

Congrats on the quarter.

from the this then are a us in part commercial LOIs with the PMA give venture? the see or go-to-market you with of any Do flavor airline on production. unfolding at question point? orders discussions you Can other And in a joint opportunity strategy have customers or you how you do deep Just customers? how airlines

Joe Adams

orders X were were several orders before are or that There COVID are that sizable in hit. Yes. both orders

to sign. orders, are have there COVID to preproduction in are was hard people who put which and this. hit, is customers, yes, it good focus very obviously, a on airlines get Once So there

but and we say, talk way a things: and costs, preapproval, so every airline, interested in reducing of to kind is marketing would I capital into this a And lull do it's is secondly, reducing X one -- is any to went that; investment.

And shop to to engine the so the say, put We'll products power in offer the manage and like them for almost by to us opportunity airline on a PBH, will we total visit power, a proprietary you. our and business. you an for into is hour, solution a the lease

will bit more of of end QX. we're very people normal of, once good this the the a I So that, through get environment, are, little more and which think a this by sort think, I very, year, back be reception end of to a will

Josh Sullivan

Got And capacity, conversions. market. timing the returning calculus value turning the over cargo then to just freighter What's passenger it. between

Earth. rates and others the seen IAD in have passenger are to and tightness global between we of back now XXXX cargo looking We of about cargo then? market say, But think at, a come kind if How should some the traffic. return

Joe Adams

just I of be cargo I going supply hard add lot mean of to tight. to it's airplanes. a think it's

a which extent the is So rapidly. very the you've the is those also things to growing is happening are this of one really from as and excess capacity, planes is routes, coming which is, X on much demand, lot not -- passenger that the e-commerce got international flying are but

number we surface. the a particular, where China demand, has aircraft them the were China, of at see domestic into we So that looking and in barely putting XXX-XXX people scratched are market converting looking which at, them in

cargo to is X for outlook X I years. think pretty the next good for So the

forecast there's fundamentals are those capacity pretty that anybody -- create it like of X themselves. longer cargo sort lot to quickly. But in is think aircraft aviation X strong. that And of I does hard it's that kidding feel than a


comes question And Giuliano our BTIG. of the with next from Bologna line

Giuliano Anderes

on of Air be with the curious you as go CFMXXs, the in an engines a I'd And you you have Congrats jumping aviation that environment out could then of the player portfolio portfolio that become market. increasingly the pretty with where I here. of built tough where number on relevant France? transactions? you successfully CFMXX side. in are guess in navigating in the terms Obviously, other you

Joe Adams

Do that number, Scott? you have

Scott Christopher

right I can of here. can head second my a get the it -- though. top I just have it don't off I Yes,

Giuliano Anderes

start on recognizing the In have some I'll of JV believe, of in and interim, ramp you the XX% kind up since your how parts, Repair on the curious, some ship to fast of orders, over -- on share jump for those? I'd I be topic. some of economics Engine you switching those could products the the and

Joe Adams

is the up your So typically a that only and start quickly, in the increases production. thing yield production, bit production and shape of little happens parts. you out products along is low preparing do produce all our when partner has very been what The bottleneck you to good there's more as and starts significant for a quite in not make

and there'll more scrapping quickly. beginning, be will very in up So then production the ramp the

machining So are the castings, the readied coatings and for all the available capability, facilities, the and the quick ramp-up. a very

Giuliano Anderes

to the That in the yet, take able But either Jefferson platform a capital or And the scale probably deals some MRO Jefferson, an that stake on X done that or asset infrastructure consider of Long and stake redeploy switching assets it, you're scaling if time selling I kind makes sense. would like Long of investments aviation partial year the business? and some potentially of get and XX% related years or are help side a near to will gears Ridge back start realize not Ridge little a remaining selling into you recover. some values that term, bit probably leasing with would in type call here. in

Joe Adams


-- they're November -- saying the it maybe originally of when having is going should potentially great -- sell XXXX, targeting we're we think they're saying be promised was Ridge It that probably MRO think my is yes, time buy do would I I MRO, to operating. have which for a open without And be now it's I and But Long [Indiscernible] And an deal what to is August. that. to now and September. that preference. would September to be

coverage, which that away in the take things you be be So operating. longest And we we great. the -- contract operating have. not a that issue would They be should that's are and over I have -- where just a some when buy don't that's little could think buyers year,

to operating. get the world, potentially the is capital which lowest-cost fully you and in contracted So infrastructure access

I so to us for these in huge does projects compete terminal. allows what would it's about. -- is And step well, much think a pipeline capabilities definitely And we Jefferson as change that would the something be that it are of -- the that's think bigger projects.

crude or serving exporting for rail So by North it's X products not the refineries Mexico, to America. refineries refined and products largest in it's just refined

want this point. the work to wouldn't getting done get we've us that of it sell what to that's to benefit without I allow do. And the to So all this will

well that's as something So are did -- markets we coming definitely we the And but back. last consider year. that as would

number stopped. but April think now. see launching of them they I were processes, M&A there sale it which a were in Obviously, May, market, thinking is and great restarting not were we -- of a as people and

values are back. that people confident So are

M&A companies to the raised particular, in that's still a in of America. there's will to There's looking lot now in North European Europe. are up. amount start pick I so that And raised. think invest of market And infrastructure capital tremendous a being being it

So particularly, standpoint, next the be interest the an rates I M&A think -- infrastructure, X for how who strong, will from with knows long.

Giuliano Anderes

just over realize of then -- a opportunities and that of are a they're dividend payout. I on pivoting lot great makes a just sense. that extremely attractive. side, And investment That's the to there the of then kind lot

in -- accretion impact terms EBITDA moving looking -- distribution? more the at should of more the the deferrals end in other potentially of about be assets levers the of what a roll of recovery term also boost terms as get 'XX. both of in probably in into distribution you there's an kind the talking off, in and also the balance drive curious aviation get you near significant So invest in FAD I'd the driving a -- of at and and the into and getting increase least you're into see year as probably and and kind the

Joe Adams

Well, wanted X:X we've we always coverage. said

look next we raising -- this exceed as dividend. late you're there's the So it we once right, a would that's meaningfully year. that, could ramp early that when at And potential year or

Scott Christopher

we follow-up respect forma CFM over have just the Currently, new to XXX the engines with deals, for pro engines. and XXX CFM X have plus. then we'd the And for Yes.

Joe Adams

engines So I XXX, that would CFMXX are the and world. there XX,XXX say out in

to of sense means, but is close and market And are mover give players, a considered we're yet. one being that big we're not, market, by still enormous. to just you bigger a any we -- of So the total the


our Galanti Stifel. Frank And next from comes question with

Frank Galanti

was I engine that on the back above surprised in on guys the Congrats to follow-up utilization quarter. strong business. pretty wanted XX% to actually to expect I you XQ. get

So ago leases guess, give that job were the good who then you were sense I last quarter, in of kind us those end, And to lessees year? the market? or, that. can for XX what those new those signed end year that to a But comparable end you rates a on geographically, of

Joe Adams

I pressure happening. it the the right uptake I going rates And don't rate And engine is see leasing other lot The comparable. Europe. I it mean not way biggest a there's of potentially. are now. foresee on just

Frank Galanti


investment engines that will color be that to much exists on? burn for would that To implications -- guess, on effectively exists. based have aviation in on aviation utilization time FTAI is end, the the currently so and add time you green Obviously, market. the around largest the leasing able And that for for any to green follow-up the I market, on on aircraft toggle assets rate expectations anybody's the case the you specifically how and guys focus

Joe Adams

appraiser our the hired the XB, and we and -- we independent actually of of And We is those QX AXXX And numbers did looked analysis. out than XXXX. demand numbers the CFMXX-XB, came so which at sometime we be and supply engines, our the analysis, the to XXXNG. QX, for on then will Yes. around an end is independent available that both engines on the expert's both, own which an of do saying the less

information limited be you you. with globally. And XX% out the of visits, to So then the aircraft AXXX then share that number of end year, can and XXX We expect basically, by probably this the of flying you XX%, shop of that are with the of assuming by end basically QX. people engines happens,

available. that have We

our it's I think in slide decks. of deck, one or the

Frank Galanti

be great. off-line. would follow up I'll That

Joe Adams



And our from Devin next Securities. comes question JMP with Ryan

Devin Ryan

the I asked to have want back come been to here. and questions the But sale-leaseback just transactions opportunity. Most

then market as of these assuming in. see right walked kind closing economies now, several are deals, this like just these guys the attention year come amount is So you a these a for if Or of sense. opportunity? fair especially that what's increases? which competition, flying driving through makes getting other together. opportunities and position of reopen Joe, not good you is pretty probably which them Do I'm And the couple a of window lot to in you a There's be

to drive I be there's this the market? could to in going activity more you that extent, more the So actually like suspect to

Joe Adams


I think there'll airlines quite for be unstressed not be mentioned, more to because while. going as a are I

be more of to I to anything at several plan their out, doing can is selling back Because obviously are it, older is looking their some So will do leasing and it. equipment, do think and going phase cash, they attractive. and they mode generate people which to

you assume flows don't when I right the markets but be Markets sure. and to never to case. ending see away, in that's that, -- around So wait and going don't get can you it distressed, be capital want

XX% strategy airline And it. of to these somebody here right. have acting. tells not way, deals an to you almost them never now, So the the why going airplane going they're always them phase would But assets the than the time. we else. can I beauty is are -- out say, as actually almost monetize to X of ways and keep They're that think, timing And get lease about by think they those that an it's they keep to an airplane, the longer that's whenever we're I that our I those you and do end and assets, be think

programs lease engine needs. just see a not of So can that the opportunity it But the could for count their and entire we number extensions. engines. develop we where case airplane on the keep as that's but But opportunity CFMXX scrap an an the you airlines for for or base happens. our we -- And is which leasing airframe, that, the I on horizon have it usually to

of any on us. shop they a acquiring So million We shop industry have rely $X advantage versus don't any shop they that for we million cost average have do can the visit solely cost. so have visit. They manage And to in do engines. as to can $X don't a

point can of that delta so And sure something and that that going is we still we're make grow that business advantage amazing to, obviously, out that generate and taking returns. by

Devin Ryan

is I credit But a job the appreciate here. I'm here. now. forward agree as know to the story at opportunity, feel getting which assuming there's the for moving you us, doesn't least Okay. then $XX, just lot of I valuation is at this And right a follow-up with. of it to our a lot But like, analysts parts

it be from So to sometimes outside the complex can look at.

where the evolve we're you aviation to need company, capital. a headed vertically is which opportunity As it firm integrated more given feels of like to here, set, deploy the

are infrastructure opportunities? the -- of as call As potentially valuation? the some What has you assuming capital for I'm thinking you allocating exit to around be it, different assets, that the firm-wide about how you what does for, have think some calculus there to about

Joe Adams

it engine that be question. it's separate simplifying And benefit complicated, sometimes, is by as a venture business, that the Well, a and grow too could we it. good be business, the company, we a simplifying acknowledged Yes. stand-alone would which a separate might and asset. our joint better as story We've

in then didn't world shut starting disruption and kind the hit expect April, goal. best ever We a the had we this quarter that's So down. us. of in QX, Obviously, that

it what So to -- work be. are it is not hard it's I is we still to of is than that just better like not now I'm It's I'm May. side, going goal. get on think everything saying, a to complaining. Obviously, something it will move was towards. the we it in there. But we'd reflective stock think But


And question Citi. Wetherbee from comes with next our Chris

James Monigan

on Chris. for Monigan It's James

Just respect -- to -- the the question about with last that on up transactions. follow wanted

sale the thoughts to these might and sort the kind long-term coming assets. you're sort understand handling do? just wanted viewer even it Just these might You case these the transactions there. than I wanted into up more, get how still might Just strategy? you different -- typically of and how fit wanted financially those Or to to those are maintenance described of, understand engines leasebacks. transactions? your of And opportunistic if on your what or be be that's

Joe Adams

say X bigger. one assets differences. more to acquiring We're been very I'd similar is they're time. at what It's -- we are have just doing. transactions The One

X do a of instead X you airplanes. or So XX-aircraft deal

reality they they is so involve which changed something the these a never enough larger And doing looking has financial previously at today government-owned transactions, also government-owned considered that transaction, of airlines, everything. have are airlines would but lot

get opportunity fundamental own that back very lease, successful what going same and whole end engines could it cash do almost that the leasing by selling new us engines. done same off whole if we engines, will a and the we've to deal it. we the So to in with market when we flow the to people there's on airframe. and release is release At to going we're an selling you comes the have the -- want But putting to the the if that from in the in is is get from the large us. then X you with airplane. part, it, we're gives us, But an airplane we choice the airplane pocket typically a And just alternatively, airframes engines airplane been as And that. end in up that money able your we've of

a point of from been our flexibility great And financially. So view, core it's there's strength.

James Monigan

any? your by And if be and a maybe view would on sort take when crude your get get kind there be it. you're to turning there and rail then of Got seeing And interest to there, wanted just I also rebound? to of infrastructure. will on updated if so

Joe Adams


So there'd happen, a I that's rail, know in if by the the But happen. it moving. crude DAPL, that'll shutdown all the of courts. be of did think of we But a ignoring That's which if out Bakken. the of don't lot sudden,

don't so that. know we And answer to the

other people to that this showing people working strips And of really particular making are about in producers widening we or with undiluted out or some back, is normal X and that unit, talked is normal coming which in now The ago has and diluent was that's the -- the last by what forward is in in be we a the and crude people in bitumen, shipping to move the plant see rail is and recovery QX a Canada, spreads market still, are rail. refiners, looking will DRU. in you that investments. talking commitments are opportunity And quarters year. the Canada, the back anticipating mix. diluent, market in where of a that at one looking out And so on still And build you're time processing and

happens, at so -- looking people then we're that which to making happen. we if crude it's So believe rail, XX-year commitments still that will by

spreads where down -- still working they it's but obviously, lot great a of with optimism, that. So definitely it's there's coming on back. not now, we're not the are But


question Rob Research. Salmon Wolfe And from our next with comes

Rob Salmon

quarter, A that something perhaps Or The that remarks. and second missed that impairment to related asset proactively quick took of the this X kind guys it else? in in to I -- charge aircraft was the you the prepared returned? was related you

Joe Adams

Scott, do answer to you want that?

Scott Christopher

we took. some of X return the back to early a of of lease. Yes. return overall then And aircraft took that in X was included impairment. Yes, early aircraft that We part related release there engine as -- that

Rob Salmon

XXX, exposed XX% XX% was currently? off-lease the lease. XX% clarification And question is another of guys of that percentage one, talking that of question then of were want XX%. to market? Or XXX of the was about when that's the Was is, you had off-lease, and basically, say mentioned -- your all kind is it longer-term you clarification is helpful. a that the to that kind That's off and market, book I

Joe Adams

we Well, rent if referring was you're the was of what lessees in deferral XX%, that's for that remarks, I the prepared think you're entire And the to quarter. that's portfolio. referring to was to. what in the And gave amount the

Rob Salmon

was then mentioned majority that Joe. you'd that Yes, I think the And XXX, was, that of in Yes. XXs.

Joe Adams

fly markets, and that The most X/X to But XX% now. those I Yes, the the right aircraft. that biggest of this is and of hardest for which XX of our was lease that -- are those portfolio. aircraft are deferral the the of yes. Because was XXX think chunk in

were very back and fleet the are most But the slower it deferrals with there. will narrow-body actually come deferral well. leisure to market the well. It's freighter the XX challenged. -- is is reopening. engines just the most -- markets doing It's where that's doing develop, Cargo well. So being is the The XX strong but and the performing of

Rob Salmon

bigger Got picture. it. Joe, then Helpful. And

end for share updated how Just things kind us regard should about market be opportunity kind of market your ultimate opportunity, COVID, you've pushed getting in a with Like the provide but light repair of an maybe updated now. thoughts your out, to of bigger could thinking you -- FTAI? got we engine potentially

Just we about how those puts-and-takes? should think

Joe Adams


crisis capital, So for actually leasing. telling capital. is think everything But have they with crisis, cash a because, with consume that -- a that a engine outsourcing Air it would shop and they're in-house. engine about us much talking of it then lot the us and carriers wouldn't consume open would've to and market us, with I functions doing financial thought leasing deal more typically done the visits is bigger France Delta instance, are engine they opportunities entertain These would about

million products cost engine joint $X of our can overhaul we a So with that we industry an coming, average under side, million. for CFMXX the have versus on $X venture

love you're all and could we'll for of and don't it, able so engines to is go get larger we're say, to have Obviously, to airline your do And I a larger it. our do fleet the way CFMXX your you out you, doing to go to being here's to capital. you And could a we're would you're where But own see you rate. done, to and going of invest airline. us hourly

and you You shop that in saves don't a rate have to visits. manage invest get capital that to you money and doesn't require you

a XX I opportunity, the think, years. next be going They're the lot it otherwise to are faster the and airplanes aircraft converted cargo to making in is XX of as CFM the XXX. the of is not the that And I So the and for It's mentioned, much would XX,XXX world. there than much, still XXX-XXXs replace crisis. into engine because away maybe -- have engines coming going

So to for that demand have -- that's years. many going many,

is the I opportunity mentioned want we're of the a maintenance And fantastic is have partner, think one things to close that for do very I finalizing we to MRO and also deal. So us.

the all have think pieces So I this. actually do to place we'll in


Robert James. Our next with Dodd question comes from Raymond

Robert Dodd

it, on those One the give the when in if place be deal we if shop. preferential get up way, done, preferential do time gets queue do price to that a And Joe, how whichever for potentially way in queue, visits engine you've yield, Congrats say, take add shop a kind we if -- from sometime want to advantage look on before ROE, you the yield could visit plus preferential there. or the much prepared part think more how year place shop can you a aviation. it to kind of in remarks EBITDA on quarter. And either year, out the plus -- of put of the that about queue, capacity on at that a in with to your that a the the the if MRO preferential mentioned, assets, a green that cost with about runs while another you would a could you the isn't talked deal availability end next what value And could now? squeeze

Joe Adams

the question. advantageous mean, deal pricing working couple a under basis. of is There's elements. price and also Well, preferential terrific a treatment, on and -- that's, fixed on I One that we're the

And to time an the and whole a on sequence, no as is often, a engine shorten things want reasons engine come one and in do of So the focused also, we an together, basis. we're of to the the the partnership a this might of Because for one surprise we working be single is in section can the in, and go shop. out. waiting everything engine months done before engine want will is you

before, create And I've design of inventory. our CFMXX has engine is to X module so mentioned modules. part the And as

swap shop an And XX X out so days X could module, on to engine X you primarily needed module is months. instead and the of be of extent work out in of the the

there's tremendous So benefits.

the monetize I was be we'll manage to extent our able at more to, And we'll that to out as able of benefit, come to other effective parts parts. shop being be the own The have and -- we be better that. alluded partner, MRO engine better that

turn put you those sounds the XX% think unlevered it's all inventory going cost it's maybe actually, then market, you earn million, you that is to And together, XX $X about unlevered. should and are engine. and not And between when but faster. we we today, if to our be So and -- not XX% shop but can an or -- XX, definitely on can drops tight up, cost XX% earn average if if $X particularly high, somewhere the a going million,

Robert Dodd

that. you've if stand-alone structurally. the the that make as parts sell And a then stand-alone off It other spin might were appreciate one And business, an more you Obviously, make of sense C-corp kind probably sense. a sense would entity. or I could to entity stakes as mentioned aviation LLC. make more rather than

are while obviously, thoughts owned? talked the Any is that Or time before, So there? the it C-corp about any frame about on it table? -- is for give still to a do you make assets that? conversion the infrastructure can idea still sense Would us we've that

Joe Adams

to rid not would goal The we K-Xs helpful. of be that's get Yes. because know

to And do it's time So have terms but specific C-corp don't the on definitely on line yes, it's value on time it. in has of I it, something have but fronts, specific table. We're convert up on don't the think line. we level. is working multiple to I -- and a priority -- But rising a it


Instructions] with next B. [Operator Scott question Riley. Buck comes Our from

Scott Buck

about acquisitions able market do change asset the asset be additional in Does continue way you close X the you're Or aviation to XXXX? you for next fairly year? to transactions. Assuming think in that the active

Joe Adams

And continue is think I advantage to I enormous. the our we as be market active. mentioned, CFMXX is Because huge.

types the capitalize continue advances we And those extent on would the generate so it and I business, you to that to returns. can think of

Scott Buck

Great. the And change April have in seen July asset -- versus deal you the and May? in France any Air here in in pricing back material

Joe Adams



any to for turn I'd Andreini conference now And back any to further your the remarks. at further I'm speaker, showing time. this questions not Alan like

Alan Andreini

all Thank forward We after And updating you thank for to look you, Sidney. QX. you in call. conference participating today's

Joe Adams

Thanks, everyone.


and call. Thank concludes today's Ladies your conference gentlemen, this for participation. you

disconnect. a now Everyone, You may day. good have