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Fortress Transportation and Infrastructure Investors (FTAI)

Participants
Alan Andreini IR
Joe Adams CEO
Justin Long Stephens
Brian McKenna JMP Securities
Guiliano Bologna Compass Point
Josh Sullivan Benchmark Company
Chris Wetherbee Citi
Robert Dodd Raymond James
Call transcript
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Operator

00:01 Good morning, and thank you for standing by. Welcome to the Fourth Quarter 2021 Fortress Transportation and Infrastructure Investors LLC Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there'll be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded. like Alan the Andreini. now your over would today, speaker I to conference hand to XX:XX Please ahead. go

Alan Andreini

XX:XX Thank fourth you, you year all operator. earnings I would the XXXX Transportation like Fortress and Infrastructure call. quarter full to and to welcome

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

I like statements, presentation and certain to by over in These filed We may factors call out to and financial release like turn investor are forward-looking call an forward-looking not in addition, would SEC. to and today we be this most XX:XX our statements posted earnings to download the the Joe. their open the reconciliation already you note earnings. review will I non-GAAP differ Before the that webcast. we encourage XX:XX call supplement. made so. nature, statements with measures over to actual is disclaimers uncertain if our release FAD. those financial please on have the in public of mode We would have including future encourage results. and our to some the press directly investor during presentation you comparable press from In done XX:XX measures today, be risk the report Also, The which and in review the Joe, including the will our is statements, found and regarding regarding materially to turn discussing GAAP contained to you to non-GAAP website, quarterly that listen-only Now measures measures call being be I can point

Joe Adams

since a as announce I'm be The you, To will paid inception. XXnd a dividend dividend Alan. consecutive XXth dividend XX:XX the today, QX pleased $X.XX of share company XXXX, and which our and adjusted per for in QX public us on year of funds distribution. to XX, FAD Thank compared to to was and million start up million XXXX numbers. XXXX, We and compared in similar are date metrics in $XXX.X XXXX. or a in of strongly XXX% turn adjusted let's available XXXX. $XX.X shareholder QX EBITDA the XX. The XX:XX XXXX, $XXX.X March Now key million fashion EBITDA XXX% record ended In QX with million based million for on our March $XX.X FAD is $XX.X QX to XX% up compared to compared $XX.X to in up up million XXX% QX in

move comprised recently $XX.X EBITDA EBITDA and debt Omicron due Now Factory million another fourth of had higher XX:XX position Regarding the active expense see and compared a $XXX.X have customers maintenance cargos, travel by businesses which of versus able from terminal. additional the X% refineries operate and on we for with aftermarket. rail had today we in demand we And add least brings Jefferson, compared both the to and XXXX, in average We the engine we contract the maintenance corporate growing flying Adjusted financial in and recovery increased signed the engine and XXXX. store, quarter, $XX.X our engine We aftermarket and covering grow of refiners we've maintenance which airlines to driving leasing, our hold big connection we MROs growing quarter up. crude acceptance FAD good the in expenses higher products improving the Motiva with up at XX-year $XXX.X in largest primarily During that and that repair Lufthansa CFMXX will in in XXXX. XX:XX our year to to United refined performance Module let's rates XX% and customers, all the pipeline sales program corporate actively services advancements multiple XXXX, to million story million provided on strengthening higher turn jet infrastructure let's $XX.X leasing infrastructure. of CFMXX number values XXXX base positive products and number the aviation for and Jefferson We're resulting from WestJet our XXXX primarily XX% which the and Overall, assets through additional at FAD crude look approximately now due other. activity, $XXX.X engine QX, versus with to from XX:XX million, additional validation aviation which overall by XX:XX from all were products well. side, multiple by services and the major bookings Now Aviation. contributed two year of X asset new negative been ecosystem. exploring Canada, infrastructure higher or our million and export was year. to Utah XXXX from million receiving we and to a one for and million pipe. we our commercial the expect up business higher QX pickup up aerospace fronts Both for expand $XXX.X the was starting the in equipment in in interest see exchanges portfolio, seven-year to a million versus portfolio services during million Aviation blend customer decreased program, the EBITDA organizations, from $XXX.X to outstanding were as with And was to XXXX. leasing for see refined million of forward largest with was multi-product strong to active our now XXXX. Exxon. XXXX Meanwhile, FAD the lease interest rail demand due XXXX, and see prices product dampened XX:XX while seeing Turning started an million and factory. are the Technik and module $XXX.X XX QX hub. lessors. in increasing with And proposition, $XXX.X value barrel and our aircraft entire States ship across in driving products and we added and

very about While a Repauno early terrific have Motiva, significant Exxon coming are utilized, we in of utilization from a still year with years over throughput we path is positioned activity in many for XXXX are XXXX, to volumes growth. XX% versus and had XX:XX up XX% XXXX additional Repauno, but QX high focus. into well only and

list we me first loaded the let ships year for in accomplishments. with First the One, XXXX of export. XX operation, butane

propylene polymer-grade we that in East to our many so Second, -- first Coast imported years. the cargo has come of

marine customers tank, unique sixth, XXX the of to of us new for XX:XX for the truck specialty direct to Third, wide a we expect will allows rail we and in both of unit began through triple. to a number highway Since providing new allow and advantage a moved rack finding liquid location. road is we export in propane XXXX, import million In products refrigerated construction niche capabilities we completed the chemicals we million offer petroleum LPG XXXX to expanded Repauno bypass direct we moved move its truck gallons. gallons a rail a which could storing XXX with operated that million loop. XXX intermediate we XXXX, plan (ph) And million X.X which transloading gallons. we terminal. additional to for then transloading. important terms chiller volumes, with And XXXX, loading. double access. Fourth, truck train cavern And in build cryogenic In and variety critically an

and completed ideally scheduled plant of to process future maintenance and such, Ridge to XXXX to hydrogen Clean and to power hubs. Under a in commenced. terminal due made first and four due recycling until well us the of later hydrogen power for locations the have an to the generated progress on of XXX% one become budget. up intend plant, fee upside QX and this Ridge be first infrastructure in project Long over XX:XX fully Lastly, at time avoiding week, outage QX as to of commence complete will million expect the EBITDA see frame which XX:XX an the thus We last blending bill, however GE Long qualified a outage did of as As ahead enacted quarter carbon November the year able $XX.X gallon Ridge the joint power XX:XX the before potential. the fuel. Planet and Long utilize in hydrogen begun the will permitting of we in Repauno, start-up plastics Turning zero than planned loss QX warranty covered agreements we per of reduce the construction good recently unscheduled government U.S. for revenue. October, advantage those. be giving we apply XXXX. The in took steam for XXXX designated our capability significant plant EBITDA large turbine. by on the we a to in On of all Long repairs maintenance is we've allowed year, power January in in for had which perform to Ridge XX:XX QX the take basis, our elevated earlier long-term Long outages power Starting and million to sales us Ridge. of prices $XX.X venture for

plastics Long Ridge. stages are biodegradable also of a the host final at in manufacturer negotiating We new to

quarter in would Transtar. adjusted $XX.X under the year As natural power full continuing agreements. long-term to Transtar an we $XX fourth from EBITDA annualized million part operations XX:XX and of generated of supply the million that of EBITDA. generated for agreement, land, adjusted gas and provide Turning

This moved XXXX CapEx fourth sectors. XXXX. the cash low XX,XXX incremental appliance In and to excess from CapEx in in automotive steel very and more than carloads, addition, railroads quarter. Valley $X.X maintenance and which land stable leading of production Mon quarter continue and which collection and we industry more non-core million slightly expect of at remained downstream in conversion, cash the that quarter, In than flow of supply XX:XX issues fourth Gary chain above the the despite offset generated Transtar is was a maintenance have of Transtar equipment sale

customers steel This loaded the we early carloads and movements expected to forward quarter are first team see downstream, industrial beyond is railroads. underutilized opportunities December The in to of held released QX the its pent-up in and rationalizes. but team acre Transtar’s the Northeast is demand at Detroit forward Some steel goal executing move until QX and exploring cars XX:XX are in into to businesses origin large new Texas. XXXX, grow and to the but were at is third-party for offloaded as transloading chain increased supply Looking is XXXX, on in thousand carrying in QX. expect property its

is aviation much with organic looking with maturation eliminating organically in are completion more including brings more in forth, in rail across the growth Gary welcome both across back vacant most Alan. moving through very have EBITDA. that, Long Gary And of railcars Wyoming's the up aerospace I'll projects non-core ahead is all spots now opportunities the to network. are opening CEO recently experience pipeline as set FTAI’s forward Rail of provide XX:XX with suited will pleased business spots. revenues K-Xs XX XX:XX well platforms. And the than of European has And for and XX:XX industry, the X,XXX and storage we're simplification CEO advances than April, We're we expected Investments. a call gaining service on years So initiatives leverage As as the to finally, sold platform combined fill company turn & those which of of with to to team team XXXX very the to of the the in acquisitions. investors. Transtar the infrastructure execute infrastructure, the operations. summary, Genesee multiple to Gary the growth strategy our which recovery with generate to of In spin-off momentum,

Alan Andreini

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

Operator

XX:XX first Our Thank question Long with you. [Operator from comes Justin Stephens. Instructions]

Your line is open.

Justin Long

to given there as start, about a changed the the targets your infrastructure can is to XX:XX curious by is Thanks And outlook anything the business term, near-term anything of business business for XXXX, around recently spoken thinking on billion you share aviation some $X getting EBITDA of if EBITDA for well? terms horizon, by XXXX. I split your of has then about morning. Joe, maybe the longer-term just the longer and you've was I know in good

Joe Adams

XX:XX Yeah.

$XX -- be is one yeah, And to best is approximately is between down what Infrastructure our Transtar given million, $XXX then the million EBITDA, $XX million, on number. first $XX about that XXXX of estimate Repauno probably roughly is million $XX million the there, at share Aviation. so probably for about is and we're million the $XX guesstimate saying short, is our with or the each So, our total good probably and about Ridge, around but Jefferson, the approximately for been million, it's Then maybe EBITDA Does looking going EBITDA EBITDA. go for answer we've share your Long is, $XX quarter business of million million a of roughly $XX $XX

Justin Long

And XX:XX the longer then for businesses. That's I guess great. term infrastructure

Joe Adams

Yeah. XX:XX

if count as was a to $XXX one next go and two and the number Jefferson, believe day year on third and we to about and you XXX,XXX a is achieve that Exxon utilized I we'll it said -- discussions. have today, is So, and we barrels a multiple from it's roughly that fact still refiners

a new ever before, had to product connectivity. have of that given list we've We the each them of pipeline bigger offerings

or if believe very will at annum. looking fill terminal, million the the per you we terminal. you're fill of And EBITDA So $XXX much more

we've each it's if, that something question of when, but and to able obstacles a that's and we always time. throw regularly -- be seems had it, jump higher now things a the not So that to world said, we've seem obviously number headwinds of

-- the that but positioned, should great product those well to two them, and offering, customers has very have a we're which we higher oil help and it is should relationships managing now so. all great of terminal a So benefit dialog of the price,

indicated So U.S. In generating we're sort we from add still that what we if is, of got fill business and the activities. terms XX million million up. Steel of business of three people storage which still, types believe Transtar, roughly XX:XX and a over years I've maybe transload that is to of EBITDA, XX and from we grow a can million four right-of-way to those XX will

non-U.S. of say, like of from So -- add XXX $XXX get do million what steel it is range is also that at. activities, maintenance part growing of the given segments industrial to at the that across being one you four repair another railroads we transaction. one million, basically could we've looking we'd It could activities development like -- customers we're as and you be the been terminal a operations

try great backdrop customers a a as higher what much we from stable. how paid million is very from to have $XXX that to sort economic it's U.S. take and good and basically U.S. things of protection downside But out to really So business I in. there And that than company great list would customer got we're able industrial think going non-U.S. of other such steel then $XXX we third-party a that, were be that create going great do figure explore in a million. that in million Steel, if to of today to the multiple it's XXX long-term

to liquids kind business that XX:XX that's these and the The two of Repauno amazing another are Really States types other of -- think there. United type is natural the there gas that. of ship the one, So is on can is I are there Coast East one in terminals handle only plan really primarily.

capabilities, found butadiene, for in reactions, been which So even saying, we're I ago. really it. have and I for we to can We bring and spell starting it god import a we know people is, then I’ve how didn't we and looking years products find finally to like quarter customer rail, from this have the have truck export which

gas we're that So there's very things location business. are capabilities that exciting, learning the natural but about the of the just liquids

As triple would gas allow will give And I puts business in which VLGCs, natural long-term Europe that which be supplying aboveground of probably products. of year. PDH to storage us we plants we today get really and build us mentioned, in have next the in commitment liquid capacity ratable and load tank, service you would the a

have of X So that's million up a caverns a jump. that probably X beyond we could then to ability underground set different barrels that the to just XX:XX products storage, handle to which I multiple And build all big we million mentioned. these

So, exports. and it could be in important

So that's truly not unique big which the is buyers. many advantage and it's on also for -- Gulf it's Coast, a

XXX count the -- that So doesn't and acres.

it will use for has We nothing XX venture. acres that on built this have Planet ground Clean probably joint above

we other there's could that development do there. So industrial

value I property it's amazing the lots scarcity that that of think special replicate. with nobody on just in So can attributes

that felt XX:XX Ridge, valuable. for extremely Then the have our always I’ve X.X truly next the years. So contracted and unique we plant was we Long power

tenant such at So add really the things, and upside that can the properties, price. as we higher power two we so gas a bringing a is one is main services sell can to additional selling

So two twp. that I at -- on one pretty have the ideal along don't other tenant, which a we're mentioned the that they but we're natural going which -- microbes, on we one gas, electricity, we we supply and or the we I microbes shot being plastics, good because to, think and then can supply far use biodegradable

tenant under it's site. positive the an ESG bringing So

one the first I when and think and hub hydrogen fuel. just would the hydrogen that it blend good can published. they frame now plant Large the So a of is, look is other plant We that I specs use you development. the at hydrogen. a power be power government then And as mentioned the the are

to producing region gas is be of power and a hubs have of one them the -- to proximity a plant. large a in One has

who that can't, can we like, fit. of else would And so I think

is XXX like and if all gas plant in this, radius power on a miles a have the underneath We is Utica. there property

we're great Don't So anything. about to quantify know excited sounds that and what doesn't hub it it to be but very how cost that. hydrogen a means,

So of why effect that gives is you, you what kind of for. that not? an were So looking a tour

Justin Long

my XX:XX is And services? you've XX you about one. million That's Earlier I'll million all the keep from that detail. I that aviation does a to XXX million include mentioned to quick year appreciate -- that great, aerospace follow-up talked from $XXX this

Joe Adams

XX:XX Yes.

Justin Long

the Great. I time. appreciate Okay. XX:XX

Joe Adams

XX:XX Thanks.

Operator

Thank XX:XX you.

Our Devin Securities. with Ryan from JMP next question comes

Your line is open.

Brian McKenna

Hi. XX:XX This Devin. is Brian for Thanks. McKenna

there from were returns. about the quarter, for XX% the declined to looking at you returns outlook And of know third business, you to XX% the see in but the in I XX% term? getting returns bigger dynamics the the so in could just sequentially So in is timing what Aviation over some fourth time? returns the EBITDA floor back the quarter, then mid XX% level in drivers near some do talk of

Joe Adams

to from was In Omicron that, flying quarter, lot in reserves particular have and era in. XXX we an airplane. maintenance an and maintenance that if we a might We the down it XX:XX revenue take XXX, I hours that month a think affects as so of fourth activity they mentioned pre-COVID XXX airline of expansion slowed in and see like our on flown

that fourth that's, So the an impact to was quarter.

greatest better, the will our because sequentially need XX:XX and are getting And I says that XX% quarter air are EBITDA of first that it winter it's on and mentioned, of QX not not not pretty targeted travel assets close now, really so we unfortunately a pretty visibility and that. have you in have then off that and up expect have So request the that our is it's because what's seasonally function sort an and lot capacity never the what's the we're to that. we to we our calls sure starts not happening fly, of March unchanged the expectation saying QX can going say, the of when hoping view that it's on they for holidays pick now. a months scheduling add but seeing busiest for we as is better flights But for -- as return are are the and strong a the people more I April. travel So that and quarter. mean, good is to I side airlines people. margin I ones to, have of going given -- airline were a trajectory that's Omicron aircraft forward refer that, right the quarter to, was said, reasonable to best the is I'm and bookings you happening other or additional on of right great

and year. by And maintenance that a they're one see QX. QX to we of monitored out this return in the talking sold said engine other -- have and the manufacturers pre-COVID of being big the shops also end So are I levels just seeing

So corroborating that. there is that a lot data of other supports

the get that outlook, about. expectation our that's just So to that's to our talked for levels we

Brian McKenna

flow then be Great. I sold in related should some how the you sales of liquidity generation the fund throughout to And business aviation XXXX? cash asset these that. also but necessary level to assets have lumpy, of non-core can the investments number at XX:XX moving fund you quarter. do about pipeline in LOI's a appreciate forward sales This and think of ample we or

Joe Adams

Yeah. XX:XX

expect had over XXXX a like maybe -- and mix half. will CFXXX We year actually about and we and think by this have that XXX, over reduce been somewhat we that the we time take step number portfolio Pratt I in engines down of the towards -- probably shifting did talking somewhat and we

the fourth So quarter. we those had of about XX from in types sales of gains million

more see the to increase well. portfolio are of the engine. year the will And this CFMXX time, I percentage think we same as We in of the that at looking

sense that's obviously So we've that, what been years. about which for talking makes five

the Pratt have assets we us been CFXXXs the returns we're that I So XXXX, to and going low very great and think basis. shift for mix have those

market. there the given is demand and So, of a freight lot

we're more we'll replenish asset going try year. turn of And sales I the new terms from some portfolio investments then, I think those to since. continue in the gains during and think to So see managing to capital have XX:XX forward, going

as great, market off-lease opens is a, a do of right of win-win buy and again. focused the can the deal, on the another of part six looking part has leases engine and to that if of and bit one we a and ecosystem, some gain is things do that those a of on at could of create maintenance book those potential keep of that, to put are you best and really that, lessor you a up we're the and for is it if we're we, us gain. can now which assets, to lease contract of retain as all And it and then to that's engines sell then capital we sell use eight-year sort recognize whole us that can one the to it and long-term no think also else them assets the is what the we over the value of take quite which that longer-term allows on-lease, assets So value management again

activity trying we of that's trying revenue, the So future, that someday in leasing that expanding not that think have aerospace We service dramatically do equal -- we're the EBITDA. so to capital we're that. was of liquidity. we don't sort invested and a in grow way We're the be to hope component, saying the to the EBITDA service long going services

Brian McKenna

Great. Joe. XX:XX Thanks,

Joe Adams

XX:XX Yeah.

Operator

[Operator Thank Bologna with Instructions] from Compass Guiliano question Our comes XX:XX you. next Point.

is line Your open.

Guiliano Bologna

morning. Good XX:XX

Okay.

generating if generated of used of referenced sure so kind components And implies about million ballpark million running that materials materials, is to put new you thinking would I is Module run Factory that statements already reported want at, aerospace contribution does way and that which make where of Factory larger selling or million proceeds I Is So quarter. I and that the from the or of mostly the Joe, XX, a annualized I million was million back of the you of correctly which services the switching is of selling guys that probably this prior topics Module in you've EBITDA $XX that at roughly that good EBITDA I quarter $XX.X rate. the look a back that made a Factory. it number or bit, if serviceable $XX to running? Module kind you And of of $XX we $XX higher about if and about a think imply than thinking plus, you into have (ph) serviceable that little

Joe Adams

In between It's in from a was USM probably $XX do but bit in was close, quarter, different. but Factory. of USM, fourth from we $X $X million XX:XX million Module SO most this $XX QX. the of XX% million more under contribution Module the little $X it's of million, expect was And the shop driven XXXX, year of and Factory, that it off visits. USM again is than primarily

the day sold for are if you look So in [indiscernible] occurring, are they're fourth quarter the visits shop now QX the out first quarter and there still at in QX are a shop. of and limited number but

happening our shop engines to that the burned been put it's shops. need energy off to -- the So going has and people time are green to

what sales million USM the we back-end will visits X drive number still not is $XX ramp for something. a a it's up than will the more be that will which loaded believe side it the activity to -- year. million shop is But quarter, good So in estimate

Guiliano Bologna

large also correct great. you in and flow Factory a gain [indiscernible] about on obviously sale, XX:XX but material, then I assuming am through accounting Module kind because it both sale EBITDA is profit had little those more of on and That's the quarter. proceeds specific, of that count user -- And thinking

Ontario more because business to So want Factory sure of it's on I pretty going just potentially and gain users recurring make from that one-time? to the both those sale are Module versus

Joe Adams

of now cost we is XX:XX BOPIS is Module bit on have sale. sale Well, minus revenues costs The Factory and flowing -- probably but through good right gain being of it. USM a

not understand, is -- So the totally that's classified have the what probably we but see But, that we because now. differently in different some so can did treatment, to get new it's from great it's accountants long-term, but I want to need have spend quarter. that a right, so not and is, fourth we can that's which we time if a right something

Guiliano Bologna

That's The helpful. That's potential is guys the Got part for one XX:XX serious we it. there are -- approval if there? great. second or timeline you only very PMA update any on

Joe Adams

very very Yes. There a you the hard it. date and and specific that progress XX:XX to soon, as and that on with put lot addressed of that it's It's back well. will happy a lot progressing the on but they're is part very we're performing A information it's, on hopeful it. forth of be know, good it's

So, it. progress, but that’s good

Guiliano Bologna

And as on here, I'm only as seen, the been has a of [indiscernible] XX:XX have us overall is thing that around if is most moving other pricing curious potential isn't Jefferson by anything contribution XX or your crude rail potential dial-up of do that into million and – million rail or there XX how crude kind by from contributes you about guide? how

Joe Adams

proud always one is help. high we and and through the there the what volatility to we will optionality and proposals is come more because high comes crude trying cost lowest from out prices which volatility XX:XX several crude It's prices creates, that is source the refiners of and looking is at spread with from are this hope more there year, to wherever that Yeah. does now help it

it coming because So to likelihood there seen no of it's is in see already it. there business We've is not no, way activity. the Utah we is, Uttar market, move spread do other that the a which from

by and and market so open up. a But go that in rail. spread So it it Canada, business will should supply to has is

Guiliano Bologna

I'll you come in Thank answering for great. That's the questions, back queue. XX:XX and my

Joe Adams

XX:XX Thanks.

Operator

XX:XX Thank you.

Josh Our Sullivan comes Company. Benchmark next question with from

line Your is open.

Josh Sullivan

morning. Good Hey. XX:XX

Joe Adams

morning. Good XX:XX

Josh Sullivan

then relationship, airline XX:XX maintenance. you the And we there, for how faster this Just this deal Lufthansa one Module at as new any in module customers point? metrics of capacity pitched overall of at the given the turnarounds us field advantages the was do point. terms Factory your that on are give seeing frame Can the

Joe Adams

Yes. XX:XX

a that's So great one.

to about doing of they're gets which if we shop supply you in lift LPG the And side an Lufthansa overhauled just low visits. the WestJet we deal, turbine -- the when engine so installed think the pressure

we have for -- it's install to going in are maintenance on any and and XX doesn't wait So rather have Lufthansa than delays. of to do any any parts to immediate that the have that an days

a also just purely benefit is that for So airline. there on them an benefit, there and is to a

and months. it six three into to be from you it go LPT need shop If to has anywhere could

shows And wise for a the that million Module to that. little be we time Factory chart so savings using charge just $X.X the don't from have total be more, and we or could

then just, that's definitely to on shop get get numbers as those too top that, that's that, up and you to aviation there bigger build the to aviation factor we So it's think but up I seen are in chain components, a the is you activity, of happen haven't because going start supply that reason it benefit and happened only what it's but of and in see yet is every issues coming, coming. didn't in added lot fill people industry other it's wasn't

happened our eight benefits state are have of In which pre-COVID And we're given months, some X% are environment you to so visits amazing faces see financial like another side, do, to I the also client last shop is raise on think as is actually greater, what those XX:XX top also they prices you which inflation? year will in, then on potential -- the their become have condition in. the on they then that if six that OEMs on for to So prices what us both hasn't, -- to that us they see Factory engine but raise able inflation is factored so, benefit so go that the in. X%, you -- X%, out of very the even And to four Module start back

Montreal use Lockheed room at the about XXX,XXX using, -- to about at of we're it's plenty capacity, we XX,XXX facility terms square today. feet, In is of up. And Martin, that XX,XXX of there open about to those

we've we capacity that there plenty inductance of engine and into into we So it have every facility modules. break

low So a pressure soon as separated as turbine. and it a as comes core fan it in of

us the of across If have available but where the don't for logical instead Europe, is always us to would couple expand at we that but we additional And capacity that place at future very needed having for sense fly can for to to my inventory ramp would the to manage we've we looked underneath point. I make a that moment, we of Atlantic engines So add think opportunities, be up. effectively expansion.

ability, huge So to market. geometrically it's market this amount that enormous really and percentage on huge, as us impact if a a expand the small the overall I engine Module business, available Factory small has to mentioned a is get an that we of in was that,

Josh Sullivan

when is the or then And metrics FAD going under between dividend are assets? And two split be are reporting then the allocation looking entities, Got to you at as two? as XX:XX still far and complete, reoccurring you between how it. the aviation the reporting the capital that

Joe Adams

XX:XX Yeah.

to on it’s is probably list FAD its of the and things relevance meaningfulness. some of in lost about probably think So

address So we that. will

I the forward. going be of at it's not one the may think that that spend we things doing

to as So, -- and of capital in CFMXX to allocation, towards quarter is billion invested the every but on it I terms grow plan turn to not is more engines. then mentioned, frequently try necessarily more shift capital and aviation, the to $X

if that there both with comes flow the we happen are be given be dividend available down could contribution and or of the EBITDA and either at debt increase to to we cash that So -- that there as do should those. should we expect pay looking

Josh Sullivan

EBITDA How of to And one per does to utilization? Jefferson. work you or EBITDA that XX:XX utilization relate Got just it. then XX% the generation one XX% annum How last figure relative on the does provided?

Joe Adams

the incrementally, and because, our and crude -- levered do by it's because a you like so XX%, fixed higher it that, highly probably is highly have has and cover after you contribution certain products it's first don't highest with to contributing then levered Well, rail XX:XX asset -- costs get you in by or X railcars, it fee (ph) then a stock the to goes and highest then and blend X some for do pipe you're unloading out you charge or, only the it also which that and X fee blending blending bring not store but typically X your then pipe.

number like incremental utilize volume no expense. you're obvious but product of ramp already the purely, it's there there contribution, benefit able terms that's It's up one you is almost So and to is can if in there. types,

differences so depend one a not it's just give -- are So, contributions. on all the it's own they partly but you their each but linear, will I have number, mix, positive can't it

Josh Sullivan

you time. XX:XX Got Thank for the it.

Joe Adams

XX:XX Thanks.

Operator

Thank XX:XX you.

Our next question comes from Chris Wetherbee with Citi.

Your line is open.

Chris Wetherbee

Joe, adjusted last hoping Hey. million around running of XX were a with into I the of the sitting the months could the Good Jefferson looking XX, year. was to here $X Thanks. XX:XX we target have guys. maybe at know I year, help us EBITDA. of quarterly half bridge you on morning, for couple

seeing pretty do sort visibility So step-up? some can what of this we or of you give you're in the ramp how up on substantial us terms either near-term bridge

Joe Adams

-- just as you're volumes. and higher it's it's Well, utilization XX:XX saying that it’s higher exactly

crude, ship crude So both we in products pipe, fuel have is coming activity multiple by projects activity. additional underway oil out going via Exxon it additional from by Motiva and rail refined from now, by

see we increase it's So more year. QX, but additional was in that about, it's of seen the just to really, we've talking that expect during volume it's it what of some I

Chris Wetherbee

like near-term can look contributes some, number. to as So mean it XX:XX give full-year you what is maybe QX numbers, sort of that I some us

Joe Adams

roughly Well, the QX did were QX. XX% up volumes in XX:XX indicate I over

Chris Wetherbee

XX:XX Okay.

as use a can that benchmark. we So

super time. Okay. That's helpful. Appreciate Thank you. the

Joe Adams

Thanks. XX:XX

Operator

you. XX:XX with Instructions] James. Our comes question next Robert from Dodd [Operator Raymond Thank

Your line is open.

Robert Dodd

in coverage in said or lot by dividend guys. FAD. macro come coverage the would X X Hi, question a There geopolitical you in of A XX:XX like the less and past sounds you've obviously, uncertainty is useful. it's on come FAD and becoming outlook, times obviously separation review spin April. time the the dividend

about that we think how combined basis. a it is on So, still should

combined expectation an business growth? what dividend all set what should for So could you metrics give us or outlook on be potential for

Joe Adams

Yes. XX:XX

will XX% spin the and expected with of by we by dividend Aviation be current XX% So roughly infrastructure. paid the

how dividend shares the be the to would dividend. two that's from or So treated split current will new the relative be combined --

increasing In that allow to grow capital. we alternatives of to more mentioned flow, the terms for aviation, dividend, have the one probably which the base, means excess and with potentially us which dividend you'll free probably expect cash the the as as asset EBITDA grow of would more less I increase

that that's, XX:XX there's that at so can something do. So it. and of a we is infrastructure, many done that the big don't world terms obviously, to discussion talking project a get of that anticipate we with We to growing the I other want on, a got get see lot investment the be on going allocation then about. something opportunities capital In to more we've of we'll and would to hard After it we there's a out dividend us the that's pre-spin going different because, things so it's would once it’s do have little because be capital look new opportunities around and projects. visibility front that in relative me for would for spin

Robert Dodd

year, material with all Thank also that. may driven if it just seasonality more and recovery the a kind kind this you of the you. back does loaded USM shop obviously, seasonal loaded. up? certainly I is Is serviceable seasonality of seasonal produces more loading short, I, that that appreciate by And other that or said I new for COVID things normal back-end is end Module be true -- more back-end XX:XX puts mean a that that or that visits could that more and one mean, Factory its

Joe Adams

it’s because before. XX:XX of Airlines started, not when about fleet. we've shop they really when a want put the engines COVID Well, dropped COVID excess number engines overhaul as the to through in USM, related did major for visits had talked

my you all say, a recovery and got through do of that thing to, first now happened then god I’m the use now and the sudden them excess is that's to have engines hours out shops. are I oh, cycles, people So they and of put going

for So selling and QX. that's, that's that shops people you're QX are out saying what the seeing with

and slowest COVID in So historically slowing related when and is QX, in the car it it's yellow seasonally much else function go really related done you, that of season USM down. actually is more flying maintenance into flag the it’s when that's everybody is because you the shop like the race and lot a

anticipate don't again Factory, year view. I And a of from it's of Module not that seasonality round lot it's then a it's, XX:XX point activity. So there, seasonal

a don't history increasing but say new have don't products. enough can't like strong say exactly data be able a the SO steadily it's to put be I -- I number -- that, it's roll and So we that and information number tied enough put out. obviously going -- I we everyone yet don't relatively And not QX, would and guarantee know a quarter I exactly there. would to we to want, out out which want. to going don't flying but every we've it to we have did got We specifically obviously it's it's how we to

So they're is in a number are, going that going we expectation using it some is to have to customers of reasonable increase.

And think So don't that's, that's good. going to I it's highly be seasonal.

Robert Dodd

Thank you. XX:XX

Joe Adams

XX:XX Thank you.

Operator

no questions this to you. to back at closing comments. I'm would further Thank turn call time. showing I for Alan the XX:XX Andreini like

Alan Andreini

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

Operator

for you This today's call. XX:XX participating. Thank concludes conference

disconnect. now may Everyone great You have a day.