Fortress Transportation and Infrastructure Investors (FTAI)

Alan Andreini Investor Relations
Joe Adams Chief Executive Officer
Ken Nicholson Chief Executive Officer-FTAI Infrastructure
Guiliano Bologna Compass Point
Josh Sullivan The Benchmark Company
Eli Winski Citi
Justin Long Stephens
Frank Galanti Stifel
Call transcript
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Good day and welcome to the Second Quarter 2022 Fortress Transportation and Infrastructure Investors Earnings Call. Today’s call is being recorded. And I would now like to turn today’s conference over to Alan Andreini. Please go ahead sir.

Alan Andreini

Thank you, Lisa. welcome Quarter to XXXX to and Fortress like Second Infrastructure Earnings would all the you Transportation I Call.

Scott CEO Joining Adams, me Nam, Aviation. FTAI the the of be and the Joe CFO Infrastructure; of FTAI CEO of soon FTAI here FTAI; Ken Angela today Infrastructure; Christopher, the are CFO of to Nicholson,

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

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

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

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

Joe Adams

on completed of of XX Today, the presented and that for Infrastructure Monday. have June we we’ll FTAI excited is consolidated Welcome Alan. call. we’re in the second the place to to financials discussing earnings Thanks, be everything basis. spin-off very as quarter FTAI be next But a

consecutive August on record inception. be dividend on dividend public provide symbols to dividend XX, will $XXX trading per two XXth FIP. start, will FTAI August also next XX. XXth some shareholder date our is The Tuesday of paid pleased share forma pro So, the which the information be our I’m of since separate and To under announce based company and companies, we a about a will

up EBITDA Let’s $XX.X or $XXX.X now available key distribution. and XX% The adjusted $XX.X QX, million $XX.X for XX% million and XXXX. FAD consolidated $XXX.X to compared to us are FAD million was XXXX, XXX% was compared QX, in the turn XXXX. funds compared QX in EBITDA million to up in XXXX, numbers. compared million and XXX% in million up $XX.X metrics up to to QX for Adjusted

During million portfolio, other. with from million quarter, corporate million infrastructure million $XX.X really leasing $XXX aviation. now the and EBITDA, good the negative income. had second aviation and number of $XXX.X Starting of $XXX and $XXX.X from million was net Aviation $X.X posting of FAD our comprised million our from business, approximately quarter, a

demand growth aftermarket driven in Lease rates. to improving utilization by and have We’re hour driving is asset pushing engine benefiting per or returned at globally from rates the in is and reserve demand, travel while strong cycle inflation turn higher pre-COVID collection fueling up which is recovery above services. and maintenance levels

backlog. had a significant of recycle Aerospace and continued for in EBITDA a sales Asset quarter capitalizing market. on some more in by took million. QX and of value $XXX have an XXXX assets million and to gain robust capital both acquisitions, a book larger advantage are about prices asset million $XX We freighter of $XX our in up. QX, invested in with we products And increase selling the order also coming excellent

engines for the contracts retain years recycling XX of manage asset the next to in number we engines. for new way maintenance a unique while believe FTAI covering eight separate the where service process capital We engine sales We’re this completing scale two of will investments. marks

told user far repeat per visits sales sufficient for use so every we’ve a organizations, for serviceable CFMXX fleet. million has customer. Used we’ve and awarded in QX a as engine up growing maintenance is we approximately for significant continue today, and activity to have engines MROs XX between more in Demand now five per USM, module which to covering material or engine to increased. a companies, three and been airline. profit XX repair exchange CFMXX All leasing of for program XX addition, XX a And their support the airlines, had us. signed high material tear a shop factory easily to five generate Asian engine used and major been large experience downs engine year, In Southeast portion

made next significant development. initiative the PMA QX progress four parts on in Our

very new process $XXX in is supplying by accretive an concurrently in produced expect the this expected attractive additional and asset and sales four all submitted signed are all adding Although acquisitions assets EBITDA data million to deals new this for these. being replace expect approval to than we parts year. At happy slower requested. properly products to to million removed. we’re the complete than The an final point, with in more next up $XXX be new by QX be have We the expected, currently time are

timing EBITDA from a in will decrease QX perspective, experience fully Although leasing until those slight investments closed. new likely have a

claims. insurance the to Turning

we year With our for by and in of We’re XXXX. three by regarding by assets Ukraine. this with requested making recovery buckets it supplying the a possible lost progress end good collected in million Russia, XXXX balance the insurers XXXX $XXX to year partial think realize claims, different is claims all in information

quarter, any products, $X.XX off aviation of in expect per leasing, $XX going produce expect gains, QX. EBITDA, reminder, a per it we insurance in million since in million aerospace to pull $XXX a from think from and be $XX EBITDA As sale to in together, from forward all FTAI EBITDA any to recoveries be aviation. $XXX were million written million Aviation With level a $XX will of in this without XXX% each $XX pay per annum. million to income we $XXX we dividend million recurring which EBITDA quarter assets will totaling To $XX million asset million will recoveries annum to all fully related

FTAI Fortress, Infrastructure pay the a $X.XX for $X.XX the per FIP, post-spin. total annum two of While stocks for to expects

now me the call to Infrastructure. to turn Ken discuss over Let

Ken Nicholson

Thank good morning, you, everyone. Joe, and

will standalone Infrastructure Joe our next company As be Tuesday. commencing business a mentioned,

business We’re extremely inflation four ever. extremely industrial energy time excited markets million growth the of Quickly quarter, companies quarter about $XX.X a in XX.X% EBITDA the prospects security substantial dynamic sequential to second of platform opportunities. businesses. our quarter are in several as focus the Infrastructure well-positioned our prominent our the believe sequentially our It’s energy importantly, well-positioned second on assets are And results. in each core reported and with and first our in and on drive revenue capitalize of XXXX, to to each Infrastructure four as $XX.X up of of growth and EBITDA. million In at from total, posted existing the

excellent excess the achieving generate we the as aggregate, next head Infrastructure the million businesses XX up QX, of annual in investment across no Transtar portfolio increased including sequential briefly of to to companies In half XX% contracts adjusted and had the As to quarter-over-quarter with an meaningful posting continue growth in. revenue, QX operations, million and in $XXX momentum kick and to to I’ll volumes, the as new months. all that of a quarter Transtar. meet from additional year, gain. into our of required the $XX.X starting review second aspects pricing, EBITDA. targeting target. completed for With $XX.X to growth months our EBITDA business, XX recently we’re in each expect we’re EBITDA good seeing developments, across million continue following ramp

from More Transtar flow are XX,XXX capital to sales of carloads carload. increased quarter Volumes QX QX $XXX to per rate car $XXX at per pricing cash non-core was the assets or from for XX,XXX importantly, continued expenditures. from to $XX million average while exceed from to grew

from higher also for inflation with pass costs and services at fuel with that U.S. and Transtar ability through insulated efforts, Steel quarter. costs the our ancillary to repair bringing grew with operating revenue a car new the contract under higher Transtar We’re

While, a than year. is quarters the typically other little seasonally the third quarter softer during

We new initiatives on number ahead sources, real expect revenue other and from as remain a driven by results gain repair grow of look income. estate and steady we car to to customers including continued progress

QX XXXX. We quarter. Jefferson. of was in $X.X increases as volumes to utilization saw capacity ramp EBITDA down during Jefferson up Next million the both QX up million $X.X refined XX% terminal of of continued to crude steadily in oil compared to our and products

of very in materially grow third revenue bullish half Jefferson and quarters. and EBITDA about expect fourth and the the year second We’re to the at

now trains wax running refined in seeing products, shipped to to trains per XX substantial month. trains pickup We’re Mexico crude of nine at are a and yellow volumes

contract under our schedule this a expect now commenced we request, quarter during the new ExxonMobil’s of fourth tanks original operations January, construction at XX-year and of terminal ahead storage importantly More complete XXXX. of our of year

We contract the generate and growth expect substantial EBITDA a volume of and to $XX approximately incremental to volumes annually, terminal – million throughput for committed volumes. springboard bringing increased this provide

additional an active the Exxon volume refinery. pipeline, incremental also about expanded We’re which discussions Beaumont with connecting bring crude an from Exxon activating to will Jefferson

look crude service Jefferson Jefferson the the between for In to increased at anticipated short, Motiva, oil compliment will Southern capabilities at ramp and and on Star expansion now throughput by bidirectional providing us. higher upon this pipeline crude Additionally, blending oil we is allowing terminal. the much

$X.X generated Ridge in in in $X.X QX. million QX Long million Ridge. EBITDA Long on Moving versus

million As share in to of we $XX Ridge we have for quarterly communicated per $XX to our EBITDA of XX% the the quarter. range Long past, target be million in

gas production continues results to Long and within Newlight, and from facility Long Development carbon generated plant quarter the to that provide steady XQ enter lease. to for the EBITDA Technologies continue Difficulty] transitioned for property, of EBITDA from forward, a million the were natural into power which and gas under as power produce gas, biodegradable as the we impact products we from natural targets. July, gas Ridge in with Newlight of plastic included long land suppliers to well construction at be as agreements our gas internal on Our negative our will and purchases targets line required with In rebuilt our term going for Ridge during Ridge month Long the expect [Technical sell we $XXX new will robust. external

conditions to the are to expect in addition, the we operational investor If certain facility In we in be met, an XXXX. project. expect be

close when Repauno. development that commencing system. triple transloading couple our to X comes focus it online quadruple is operating At is our to expected Phase system of margins LPG This and with our key a years. Repauno, of on in a capacity our Finally, throughput

goals off-takers We into to the more parties or one multiple with third enter demand agreement international have and long-term from during our a quarter.

With contracts. construction all We gas for capabilities the exempt our loading plan gas LPG tank or vessels. and with have we storage to to fully expanded to closer the we dock existing carrier large this large costs new the piping, our goal move our negotiated step, finance and completed of In tax quarter, systems, important debt. meantime, have loading We associating by very in across refrigerated facility. engineering carriers second VLGCs, and marine construction

newly providing truck In both expanded and additional butane propane to and in addition, needs lending utilization LPG how continues see area. heating customer the racks markets, local the meeting to

Finally, to with interest space for increased XXX acres renewable in primed we the energy continue see development.

Rise generation bring to Also link consumers. develop critical permitting a for Repauno. to venture Planet from the a wind joint manufacturing at through cable continues which to to a Clean unique facility first plastics progress announced will have the renewable plant offshore infrastructure our provide process with electricity coordinated made effort local marine American We recycling Light,

it the in turn to expecting Planet of facility We’re I’ll Clean Joe. XXXX. back With complete construction to that,

Joe Adams

Ken. Thanks,

served. and both to redone will eliminate a value big investor will and for consummation complete uniqueness the will K-Xs as will articulate well. spin. six in is week of which refine, be week of K-Xs and stocks. a shareholders ETFs, And shareholders to upon broader shareholders all focus, spin a week respective companies both the importantly, their add week able Index for begin and when selling, Next funds, market with universe own eliminate will the the FTAI for FIP FTAI eight

largest cost For engine capital and preservation commercial and products growth liquid aviation, and engine while on focusing management unique provides proprietary travel and the engine narrow-body savings power combination FTAI airlines and services globally. is to provider The aftermarket of capitalizing practices most world. the for through in cost be maintenance leading low leasing global market engine aircraft recovery on the and

Ken Nicholson

the industrial expect insulated And high near-term growth of We the complete, ramp look very across growth do And I and quarter flow would come Repauno business to standalone for We very to attractive just and country’s long-term things the we’re good of investors and following in cash to say quarter. at next to on and where development on as energy from of markets. our the updating the forward inflation time we view basis pace now assets, years of four starting Ridge largest much well meaningful infrastructure, It’s drive the each this incremental up post in plant Alan. scarcity back a while it value Long Transtar key a and to to terminals, value. power at a units. of Jefferson beginning turn accelerating with I’ll indication with

Alan Andreini

to Q&A. Lisa, Thank you, Ken. you the open now may call


take [Operator Instructions] question first We’ll Point. you. from Thank Bologna Compass Guiliano our from

Guiliano Bologna

things I’d curious, how aviation the on different with a kind together. they off interact of starting of and Joe, and you. side. couple Thank be

assets mapped I’m we’re we got curious bit potentially looks What those the talking four the you NGs carriers. side, more Russian on the on Last I a sold, other then at I’m about sales mentioned had the came of the obviously curious assets of generate said a had at from go other assets you you And then asset strong sale and just the what are sold of $XXX out EBITDA of assets of are to on the have the the we million because contribution back XXX obviously types acquiring? got out the asset assets handful some side, think called then coming as the that, nine should what during types look and acquisitions? composition in I’m the mentioned million selling? looking And you back obviously a expected. you some when call. – potential how acquisitions? So well numbers you You assets you LOI call to a And gain sale. sales what of pipeline if curious that on LOI you’re quarter of handful sales in a kind call of back going you cargo then than looking asset and if of of on like? from Russian Or curious, you we you that $XX pretty I’m what on higher lease.

Joe Adams


recycling in of quarter. groupings. mentioned others is One we I So and did the sold and last a addition year. took the the assets, Ukraine. from the sold mainly as composition we little The term capital – deal, to, that we some is cargo is and also two Avianca selling is in from also Russia some We’ve other leases different the but some with cargo XXXs this back assets, XXXs also long XXXs

miss the is gain want is, had we cargo when we we why than, That mentioned projected. the market that’s it. don’t slow don’t to know but down, So higher than market originally will I,

be assets good a a about of paying one sort was that cargo. ago at it And those time several early attractive that had to, market, late. years we no time was or when decided attention bought thinking we than So, very we’d rather

term good to leases So third decided that there were selling alluded then to think lighten on we’re returns for the quarter, was with But cargo long of it us. quite time the I the up side. sort in And deals I we attached.

retain best service leasing Lessor’s, those capital companies for Lessor’s the a to because maintenance do that is deals. So, deal. could for the raised the can there’s great we lot we that and still we capital wants use retain And Lessor that’s part buy by and that the of contract of been us, so other that new like engine which structured

mostly to by acceptance backlog by way, of has think the our and, very QX And two but that add grow those we’re aerospace we’ll to to a Lessor, of, that add in deals So Lessor. are targeting not the Lessor close lot and that, in can we’re continue we been we business it. pleased one we products

to see that. us our to the portfolio value So, business very, is that’s reference why grow I we to out highlight ability something significant as that for create service deals, and very continue which of

be sale gain think quarter. each we us I for something should that recurring this on is think is

I and that that. and of find, parts do packages maintenance buy able other we keep can that. of assets take even to then advantage think in can people part And are service attractive We the that. as most engine of we’re case, this the

mostly were all engines, lease. the in QX been On on buy or the along, focused folks CFMXX that off we’re we side XX all acquired that’s engines

prices have asset where to people attach that’s you that. you is that an some market you have that’s the on you it us with revenue compete to revenue, have very to So a get that’s best when few put

got with also So similar have that deals did side. very a on airlines we a with to And that last would that add engines. They’re the buy good big established we year [indiscernible]. CFMXX additionally, we’ve to was And then transactions great relationships with. they Avianca relationship some with existing we’ve

So, we that, good very pick We by think both again recognizing great a EBITDA it’s a, it’s doing up combination. it’s good EBITDA seems win. and like so very increasing a

Guiliano Bologna

a map are yellow or more, wax, to initiatives curious, wax on yeah, roadmap lot or then to appreciate be obviously switching about some during the there getting lot a I different the that lot what about say But Obviously I’m outlook to at more coming they’re curious, on what deal what there’s there’s the start get around and more different of I’d volumes, train a Infrastructure. roughly like Jefferson. you I’m to an you little Jefferson? EBITDA. confidence Exxon there’s, great. I’m That’s curious, able the $XX the Well, that there’s like focus components. over on the contribution a and Jefferson, call and they’ll are a about they’ll like, to think think of gives million increased commentary on. and to how to going components increase XQ. different access from car gives

Joe Adams

second look the on all of pretty assets Yes, year The look the we’re in half bullish at Jefferson. the are place.

new – to we’re operations and that are contract, we’re be that We to the able really we’re going the for contract. under assets start finishing up happy ExxonMobil

fourth in big to the But million. a piece continued quarter the that’s in $XX bridge just utilization. obviously piece a bigger Now is of increases

less today years place at in assets out refinery we’re relationships for than and and process our That’s been a assets of now there. building in complex. finally those cultivating and of the it’s Beaumont Motiva’s a are the frankly, few being ExxonMobil’s, with utilized All process, been the but XX%, a lengthy others

opening we’re and pipe Exxon. up mentioned, Jefferson another I As between crude

We’re kind pipeline to of to the bidirectional. change between Motiva making and a to Star small it Exxon be Southern allow

continue All requests to for accelerate, thrilled second largest wax yellow more of play Yes, and demand things more throughput our those quarter. the was good a trains quarter from into we’re two customers. that

in stronger being third will terminals opened quarter, are the in are an new better strong Mexico think be even and quarter Mexico. I refine getting the products

and very us next months July of seeing comfortable to with XX month months. of that we’re make so EBITDA, for And seeing this million the business in indications our $XX in XX outlook

Guiliano Bologna

for in questions. great. taking appreciate it. the I jump I’ll That’s queue. back Thanks my


from question take next Company. the We’ll Benchmark Sullivan our from Josh

Josh Sullivan

morning Hey, good

Joe Adams

morning. Good

Josh Sullivan

within due Just on availability had market come mainly leasing issues, to and chain lowering vertical. the market, out delivery the engine both assumptions here question or Airbus overall we’ve supply Boeing

Is supporting how capacity aircraft at business are module engine point? conversation this So in And the that responding guys market then supply OEM about of aircraft airlines is having lack you lack leasing USM. airlines to supply? of a OEM that with that the secondly are off on first

Joe Adams

to like ones because Yes, owning more that it airplanes good own the it’s makes demand. I us. that, harder new we and it’s fact better make for

[ph] there’s CO a for of NGs NG, existing the So XXX asset. lot demand and AXXX

price So, capacity. lift as airlines, and demand need relatively travel very, we’ve been has robust and got very and need elastic

just shop because good. inflation, and deliveries is own, longevity the visit of which other stretched new the inflation collected extends then good which is also out, price our it thing from So gets I it’s, that increases, up. goes as maintenance our the the us to is get the in advantage for fleet And also mentioned, this of is extent bigger reserves a revenue we

not like, talking both said, probably and, like the is until not of talking we it’s stop So, about somebody they’re I those XXXX it have people trends think expectation. this going be as about seems going be, indicated, to

good it’s So, period where pretty for think I we’ve going positive, got be us. to

Josh Sullivan

just, have And then, it. to you next phase? there X just or Phase seeing Got and Repauno, what drive Ken, in the for are then one customers you do place on

Ken Nicholson

spent we recently. counterparties. something good in in are best close. go, close. I up third very with you to Josh, executed, weeks And where demand tell make can’t at close we’re have very with large we part Hey from the the to yet think of the will have taker. a, tell we’re two contract of we sure team grade Repauno, sign a the I everything’s We contract off ready in a you, want but better position plenty very an deal. we’re I quarter, point at but signed, but Europe the a And not investment we we’re sign

Josh Sullivan

it. you Got for time. Thank the

Ken Nicholson



take Wetherbee Citi. next Christian from question We’ll our with

Eli Winski

guys. Winski morning Good This on Eli for Chris. thanks. Hey, is

better of sensitivity and talking better puts over get that of utilization, then asset some but How congestion to maybe utilization the, going business? about, are of side the thinking Exxon contract rail does the about what were impact and asset on some you’ll focus going around to specifically some the infrastructure getting Ken, takes maybe So that the the and you’re obviously what you to on Jefferson. are side? growing

Ken Nicholson

got into handling I per refined, that that’s of of XXX,XXX terminal. too take handle capacity that we’ve I day, we’re capacity. we’ve inbound congestion. trains, not at the is, Really double on we’re as We outbound train to mean, the it’s through we’ve exactly the we one our the when no go whether about train throughput today. ensuring been working mean what got developed issues. things consideration. barrels issues don’t, can terminal, that’s we with crew the stuff track of concerned I, through handle congestion all I, product activity there’s business. We’ve mean, plenty about I plenty of, I additional the calculation the capacity

haven’t to issue any congestion is congestion think we for an going so and don’t, be And us. experienced to I don’t certainly date haven’t I

Eli Winski

That that sense. Okay. And what ramp up in then does $XX lot there makes you to look Exxon like? left you what and So to incremental in expect the you separately said start the of on we that’s that really said, be assets but, $XX then place, a lot EBITDA, the of million side, on left annually, million what’s pick of but when is but a to does that should when coming there? have up,

Ken Nicholson

there is everything That very commence just X when million being is I ramp mean really, operations be contract. is storage. built, barrels short should that of under up to the specifically built what a total

manifolds. bringing an refined barrels So and date. those store that million then way And accumulate This we we system is receive built ships work the pipe we additional We’ve piping under million is and for export products. we’re have will load will refined large construction. by products And X that X storage tanks products. to of The online. then just are will

manifolds built So it’s to just and before. stuff storage all piping, down really tanks, we’ve

the good stage construction team not, quickly you behind down pretty I now say where and focused the say we’re most would risks now I painting. of fourth it you that we’re And a of get completing typically of for at is, our So done. and There’s as to wouldn’t completion us. welding would as are see quarter, very quarter, the geotechnical there during have the track what ability far although mid on, fourth feel on with part possible.

holes digging piles a cause be driving not like or any anything delay. typically can, that or that We’re for

Eli Winski


onto Sounds tougher stages restricting still products. is How right now like for government in the involved moves. Mexico the are refined over

that going government pickup what there, a level you the does So, substantial in said of? but you’re play see to

Ken Nicholson

story we’re Mexico, any you mean, down a are, in movements. thousand, the it here country as gas we of for base dialogue. reduction, got active always mean, movements now, loading end on Exxon Right Yes, about there the day, that there I And or occasion stations ever of, a diesel. And I’ll at the watch a tell I it’s in serve. seeing as gasoline they a of story and closely. ongoing Exxon’s need to not percolation to but trains ExxonMobil we’re. needs

seen have any or so we interaction. coming papers And what some in any slow of about, you might from downs, across read issues not government the

Eli Winski

right. all. makes Thank sense. That All you


our Long take We’ll Justin next with question Stephens. from

Justin Long

morning. businesses rate for good million the Jefferson know one $XXX you earlier. run called the EBITDA out and Thanks, the a in plus slides $XX from two over infrastructure referenced I next million you to years,

think a slide. I Transtar you gave the million of number for the $XXX in

add pieces, I up So, when we million. sounds decent it the like could be a fit above $XXX

thoughts as forecast each you you on different refresh on costs us contribution from of corporate the assets factored that maybe what if out well? as next are the of couple could I getting look and EBITDA wondering kind years was your of latest level So, just of the into

Joe Adams

absolutely. Yes

million, current total spot market that Ridge, million, does and $XXX of and million. X which targeting at we’re extent plus Long you pricing, a Transtar Long activity incremental not million including, but Repauno behold Phase Phase we’re of the on produce only easily really including companies X. mentioned, $XX million bit little is $XX for more now, include of right Ridge, $XX we million, Jefferson $XX the excess gas, particularly could the at to were You $XXX is that be

the estimate. So that’s million $XXX not in

that north expense, and million, you deduct that we million excess get, corporate up and add yes, You million. you you $XXX gets $XX to then of in of $XX all get to million $XXX and $XXX closer million to, of just

Justin Long

each of growth? for leverage invest wanted now? from year like thinking you but post-spin you know slides, about the gave ask to I two for businesses how the forma in next to each you And I secondly, in that these targeted target, based And entity for pro week. debt are businesses that the about a numbers the you Perfect. have on the feel capacity what’s

Joe Adams

probably So BB for maintaining times four the neighborhood ratio somewhere times to aviation, five targeting EBITDA. of and the to we’re debt in

up So it is, I go to there’s capacity, this comfortable EBITDA. think But think, point. at grow I as we’re we where

Ken Nicholson

would it’s infrastructure, something business, the of generally it’s a in we sort Long that The businesses for obviously in of, investment business growth. five do A of of to eligible and say what Ridge. in ratio at the slightly I and exempt four tax we potentially in now. Jefferson. And smaller, Repauno for even infrastructure terms use the that’s target. infrastructure terms same beauty And times the But lot we’ve ratios, right financing, is EBITDA can for terms capital at used of of historically

debt will obviously smart rate the the for an than, traditional twos tax a successful X and I’m would we’ll, past lower growing where markets be, in been we’ve incurring in by investment so, exempt a market be. Phase more and significantly as be not this will would the rate still of high accessing average sure it’ll Repauno example, environment, rate, current taxable but at be debt. similar markets. be about, our And Jefferson, And in But the capacity through borrowing disciplined is,

debt same times incur four attractive projects five but at So, I levels. time, maintain at to a, to for we times the specific feel like ratio, leverage can continue

Justin Long

Got it. time. the Thanks for

Joe Adams



question from next Stifel. our take We’ll with Galanti Frank

Frank Galanti

wanted business. up Yes. congratulations maintenance Hi engine on and be to questions my thanks able program. for to spend financing I follow done the the the to taking Infrastructure getting

from sort you about that in simply full keep entails were portion. should we that an up using the you when is and engines a maintenance then Can mentioned unit what talk economics that the physically do, of And think you had you about perspective? that so of sold economics how the module then sort to factory Montreal? is how of economic, or couple able services the So, overhaul

Joe Adams

a It’s good Sure. question.

it is to sell of engines how new for So we’ve, works we needed. that leases, and the to provide owner replacement agree life the aircraft when the those

and that return, and in engine requirements take is available engine cycles of in the is a minimum So hours visit shop meets due visit, when a swap. we engine needs an that the would for exchange a shop

the along in And airline can we’re becomes in module is then what do reserves the factory engine maintenance the or doing We full And we’re either our or the it engine. economics, an the so that that overhaul put way. the for sell in engine collecting meantime, from it.

the per So on cost side could we transaction. is could, generate million that out our we an given the additional per dollars that aircraft, way advantage with price we through it maintenance year

the So something owner. it’s a Obviously or not outcomes capable it’s experienced had attractive voluntarily is managing and everybody’s attractive those new on. for very for because or doing good engine us events has they’re it, also

profit our ability products think service it’s something So, – generated we of a provide of to we can at example and because it’s competitive then that significant a our advantage. proprietary

So, very exciting.

of world’s think very opens XX% is fleet it owned very, because large market, up the leasing I a by companies.

spend was area an try as out, that that’s grow important to profit for – and looked time So us we to to and from. to

to this significant is do pretty way that a on a so And scale.

Frank Galanti

about that ask is it’s sort put those that path, to interest Great. developed picking the customer wanted That’s that I correctly, of factory. assumption inception business? And my that to to there expand I that? the any move about of module have helpful. XX there’s And super the there put then aviation past that you services? in. and up. are And sort to since on modules or originally guys you of three in about But way, that remember talk then guess I so Can interest the is get continue needs engines more need If was into

Joe Adams

is, the mean, of as modules. volume yes, terms we’re scale, I turning and in doing Well, would grows what probably we’re obviously we

number module factory increase would business we the modules grows. of the as in So, the

many I very market it while demands. them as takes we they spent XXXX a we’ve have right are And needs this, we’ve and finding airlines for educating time in got, with time week users, to growth We we’re but mentioned, seeing building with based many, airlines spending that are are broad and and each now. backlog

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money becoming people of a tool on for end useful it’s the save that issues. lease to So so

and developing the in really the us. to committed assets mentioned, sell for West given this, the seven-year ecosystem, deal, a deal. We sale build. is like backlog, the it almost the a which process. time, It we growth deal, eight-year opportunity us maintenance retaining with an agreements education And have deals. can, we of huge two we broad for continuing these now that with eight-year engine and it’s So, as gives have very that but a to is I everybody And an volume, as takes market Jet as we,

So, we’ll that. add to

with the might of million to to ramp, if turn if sort engines, expect three which see XX we and have times sort but as a it engine months $X we had each to that not turnover double XX, a in and we of and/or we million, multiple if module So, a a would it’s we $X within to terms much XX did it as nice engines is of, year. do volume, kind six investment huge of get ramp a months

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quite going modules. I we In as see these don’t as – now. beyond terms don’t attractive three this right anything of

is right the but something future, this in on on really later that. develop And could we our So opportunity. focus eyes now, it’s all everybody’s

Frank Galanti

could business. I’d in question more I PMA Ad if on Great. squeeze one the

parts sort approved? of Or why there’s that they there So, can about are part anticipated, talk engaging? taken than approval of of Yes. are it’s the I one waiting before and customers that’s until sort in are interested guess, process, and you just a longer number

Joe Adams

so people it’s, that think having are I very in mean, helpful. know additional it development, I a Well, parts critical mass is

very that’s we’re So, the part of what attempting achieve I to beginning. think from

that And so have know coming. once I will then mass, people that think we that’s critical

an process there’s I element data of cautiousness. requests just; There’s tend than The lot to slower So key of a is think off a they time been that. turnaround and normal.

of So got with factors, done great this, we’ve to they’ve – but they’re happy parts it’s partner, very, very the are how the a we’ve it those pipeline. all times. do what got And hundreds they know in very

Frank Galanti

Great. Thank very much. you

Joe Adams



call would Andreini concludes over to that or session. today’s question-and-answer remarks. And Alan I to back like for closing any turn the additional

Alan Andreini

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


And today’s for that concludes you presentation. participation. Thank your

may disconnect. now You