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GATX (GATX)

Participants
Jennifer McManus Director, IR
Brian Kenney Chairman, President & CEO
Thomas Ellman EVP & CFO
Justin Long Stephens Inc.
Allison Poliniak Wells Fargo Securities
Matthew Brooklier The Buckingham Research Group
Matthew Elkott Cowen and Company
Stephen O'Hara Sidoti & Company
Justin Bergner G. Research
DeForest Hinman Walthausen & Co.
Scott Scher LMJ Capital
Call transcript
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Operator

Good day, and welcome to the GATX Second Quarter Conference Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Jennifer McManus.

You may begin.

Jennifer McManus

Good morning, everyone, and thank you for joining GATX's 2019 Second Quarter Earnings Call. Brian President and and by Ellman, and today Vice Executive CFO. joined Kenney, CEO; President Tom I'm Please note statements. that during our some of the today consist information will of forward-looking discussion you'll hear from Actual trends results or could materially or forecasts. those differ statements

the statements For factors GATX's events to GATX no reflect discussed XXXX. or update circumstances. risk obligation more subsequent for refer to XX-K revise in please assumes information, to Form any or forward-looking

we release. This $X.XX reduction share second second compares per an net net quarter reported enacted million or include diluted results income of a $X.XX negative $XXX.X second and XXXX include Page net quarter of per rate to period per XXXX diluted share income reported of or to Alberta, of compares $X.XX per $X.X a impact in share. share. These million attributed a on diluted are tax Year-to-date related or net share or same railcar GATX today, net to quarter year-to-date share. deferred XXXX, Earlier million results This diluted $X.XX and $X.XX of million for with to Germany. associated XXXX $X.X diluted million year-to-date detailed $XX second in or XXXX. $XXX.X diluted Canada. benefit closure or maintenance tax the earnings quarter per facility income XXXX $XX.X million our of costs the $X.XX in items of per XX

segment. address Now I will each briefly

rates year. at renewal quarter of Absolutely, remaining America's rate car utilization environment lease across be XXXX with freights our Our second solid success most weak. was in our into with types. car consistent operating expectations Rail and with North relatively environment XX.X%. second tank and rate lease North to fleet of were the consistent car fleet rates our remaining results quarter-to-quarter freight XX.X% expectations our the the an to quarter America coming increased end from flat reflective are Rail The continues lease in

renewal negative change GATX's expectations. the the full is quarter, term was year of months. the in Price Index renewal XX Lease was average which with During associated The rate LPI line with LPI our X.X%,

successfully customer place for committed We our supply continue agreements railcars the new from base. to diverse

already have railcars Trinity placed supply and supply XXXX our X,XXX railcars agreement XXXX We from our from agreement. XXX Trinity

X,XXX placed supply we Additionally, railcars agreement. our over ARI have XXXX from

quarter Our scheduled earliest under of available essentially our agreements second in supply delivery is the XXXX.

quarter-end. approximately during income continue is of leasing active in railcar historic for at during Europe GATX $XX.X was approximately the seeing grow and on million year new Rail to bringing steady International, GATX the and million Rail total to fleet America. at a remarketing XX.X% for Europe International's income was the market with volume second Rail India high the take $XX.X fleet. delivery investment cars continue remaining to demand of secondary utilization the across Rail railcars America's North to as Rail be quarter European North strong. million. GATX capitalize the quarter, remarketing We Rail continues Within $XX.X market the

Management's Portfolio Finance Rolls-Royce performance the primarily results affiliates. the excellent supported by of were & Partners

is performing and are favorable global from vessels. as spare American mix. another volume currently aircraft for engines XXXX be benefiting XX for Company remains Steamship water levels year We high operating expecting excellent demand investment is robust. and to commodity well ASC is

approximately Year-to-date, nearly the repurchased shares during XXX,XXX $XX million. second shares we for X.X million million repurchased $XX for approximately have GATX over Finally, quarter.

hand to remarks. now, prepared Q&A. And we the operator for I'll the Those it open it are can so over up

Operator

Instructions]. [Operator

Stephens. come Our will first question from Long, Justin

Justin Long

was true, flat was sense us being guys if made absolute tank for, could to rates back a wondering if circling on give maybe Jen, you So that comment you quarter-to-quarter, I for the both trends in stable showing the back that, as categories sequentially? stability year, both your look half? And continues of over fairly assumption were we that the the is and then freight, rest out that where

Thomas Ellman

Yes.

this freight terms in true versus is ago. what they've quarter done Tom. both for cars a of Justin, tank That and is

cars we've continued much up significantly result As backlog XXXX, about a got that's quarter months. of lengthening where second the of and we've before, XX are through first middle XXXX discussed, it over in the began that the and backlog tank more primarily, quarter talked versus really the up

car XX would XX say months, During over shrank the a of further little stabilization the bit of bit to drove sort as second course under to which tank little opposed that a backlog that I little quarter, the months from a increases.

side, On so run had same up. the never never we that that they advantage car freight saw

the versus they expect keep And same. our more where the as have right where we freight to level down the so versus they're we're little year, that the it or say we the cars we is is sort probably or on side, want shortens, of like XX%, on expectation a eye are And on the I stays the of a going of backlog. then car expect we're pretty even an freight to cars side, X% for different view. year probably it flat tank at would And best but tank now, the if far what would car ago, were And for as rest QX. but

Justin Long

right what sounds this of LPI expectation your at now, last like got the as you But quarter? for unchanged Okay. is your year it versus

Thomas Ellman

correct. yes, Yes,

you in look got is and X we're then last positive between positive in if what X%. we've you QX bumps, negative we it's and in range if those you quarters, at XX% at it negative X% And So to at And kind of right take But quarter. negative the X% we that QX, look at. 'XX, those look in quarterly much before of totality, this expected. can't talked X.X% about

Justin Long

for going I in of things rough is how car lease new in existing progressing about lease can ahead? that gap and way today it's see type, what any that like you gap is the looks by market vary than one but then And you us quarters there of know give on been to we've the Great. sense that on a are rates Okay. hearing lower railcars rates the railcars.

Thomas Ellman

Yes.

Justin, you degree, in you're car freight tank what your answered is a phenomenon rates all, question. as say, noted, lease of would car unfortunately, describing of than because, first question freight are existing car a I to more the struggling. What still car the some

it look rates be going -- when those looks than a you a happen, the in rates. car to little can new the car, bit So when probably, at investing someone are extent lease to better freight existing

car versus is tank at today looking on getting you're going new year an car existing car most today, types the is what's existing tank, a a a car for if from On now challenge.

rule turn, out flammable point general a liquids DOT-XXXs are by granular there new is which we the for the going which exception of by too less -- is cars legacy obvious to now. one DOT-XXX, new the lease the want would that tank car displays different the is from retrofit gap reasons, don't result of about some to that get and the what a cars. in the are year flammable car types. to it's I for changes, thing So there. vary doing legacy The that's competition And in amount displacing The tank rates primarily as car

magnitude, the So of rest counter XX% down, that's the tank quarter of ago. a on them one side order and versus car type that's to probably a

Justin Long

the last quickly just assumption year the lastly, same this was as Then helpful. remarketing real still That's is income Okay. on model, the for it quarter?

Thomas Ellman

Yes.

like So with portfolios several that. strong attractive we're attractive see bits continuing for interest for to existing remains assets and leases attached,

indicated probably at there than rail However, saw are year secondary total market beginning as the of XXXX, on a a fewer have uncertainty dampening about can And bidders pricing. we a we market ago. effect

quickly more loaded lower we and than in remarketing may monitor will the secondary year that, $XX we'll to market so market continue be XXXX. conditions anticipate Having For front-end the bit be these full change closely. reasons, can said million XXXX that a very

Operator

next Our from will Fargo. Allison question Poliniak, Wells come

Allison Poliniak

it sort exposure headwind? but and a First, mix? weakening customer still concerns, the indicate some traffic renewal driving case lease in fleet obviously, maybe here would is talk, macro, it's Could your your your and PSR there's of high. success that or demand remain of rates you utilizations there's a What's all

Thomas Ellman

PSR first of just, address directly. Well, Okay. all,

in and to greatest There the weather have to GATX the PSR fleet fleet, where non-boxcar second about boxcars the the up have tank of the impacts, of lead decline on X%. decline packaging impacts continue utilization by bulk is until of boxcar the the And a But and that fleet. we that. XX%. mileage fleet if been factors but on will the dip These flattening in on attrition. that We PSR the year-end. Allison, X% those coal, to fleet high-mileage boxcar one lower have at quarter, during could intermodal with same utilization, much boxcar or boxcar combined on like commenting actually largely seen a less area you impact saw caused cars of XX% the the in offset PSR and growth look make the by to believe fleet, another recently, our specialty loadings materials, hoppers we you X% were from

everything be else. may XX though years different is than worth fleet little that a our pieces boxcar that acting It's noting worth old. also it's So approximately noting

PSR fleet to be muted any are by boxcar going impacts So on the that. long-term

at the mix. great are tend impacted in types, car car which of car less car at time, to that are by The term keep operate as talked all to by to tradeoff with to fleet really aware XX% we management we're types utilization the And those job looking up that and keeping type stickier, high. our as also and that between service, rest, and exception the other maintain again about they we there. majority our by try fleet of always helped type that boxcar act, the commercial train has and far a of As definitely done hoppers, and PSR. specialty-covered are non-unit be the And team tend the rate tank we fact cyclically our

of non-boxcar that to the expect and fleet for XX% continue be at We plus through level that the end year.

Allison Poliniak

following That's then could you for rail where -- there your on Justin's that you an And inflection to buy fewer favor some versus you fleets fewer to sense there question, Do time be helpful. could actually That's guys you're this seeing bidders. said sell? great. be

Thomas Ellman

Yes.

calls. GATX. market, these that on believe investment about potential And of it's some players realize lot yes, we've challenges in So that a opportunity to other for of the when talked continue of some we the great a the

Allison Poliniak

Great. this And in was Anything the again. then quarter America, unusual question, elevated Rail last that a North little the other number? revenue

Thomas Ellman

Yes.

So the we revenue. of the is call repair one the that revenue out piece

we though customer amount historical had more of that that some maintenance, lease, full when even is percentage can cars So the And do dollar a the move higher maintenance around of a service and on than repairs a billing success we customers. back bit. at are responsibility to

Operator

next from will question Matt come Buckingham Brooklier, Our Research.

Matthew Brooklier

to a want revenue number maintenance Tom, guys did able you you that were incrementally this put capture quarter? the to to

Thomas Ellman

Yes. of It's move you because around. a kind sense of really the number would way security it can -- of give any false

Matthew Brooklier

enough. back And lease then know rates quarter-to-quarter, LPI. can us on and sequentially it Fair moving you color Okay. in just from jump the to some I gave quarter. the

a south that. for to rates to negative but versus comp get -- drove confirm heading price was the it sense Just like for in It the wanted on QX? what LPI renewals renewal just sounds trying lease

Thomas Ellman

negative X%, or XX% pretty Yes. positive relative call we would the There's pretty to type that's Again, no QX that to the activity. particular where out. middle, and out I there's flat, close in X the expectation our came and in the event between car

Operator

Our Cowen. will question Elkott, Matt next come from

Matthew Elkott

on bit. follow wanted Just to remarketing up the

other deferred guys but to Was it, guidance. the the in missed lower you Or to maintenance fact but expense? you I you attributable maintained if the that like second there obviously, remarketing are any had income strong that half? a quarter, Sorry expect fully be very pieces

Thomas Ellman

Yes.

One the coming in the getting done actually half the in, you half higher pace piece expense in good little the versus is second some couple be first the that year. shop we is have worth been to but at a half year noting, TQs they're that maintenance that. other hit bit of of getting of them the different of the that. So should coming year and do for a of little expense second the a reasons A higher expect see which for the them in through bit

Matthew Elkott

and Tom, conditions Got in I demand. back cycle of then really And was you years, earnings. the your looking market hit just railcar That was at it. XXXX peak few the XXXX, back guys, bottom and measured last you by a

that cycle something it as started what the to, is far to with has today Like of stand the cycle, a we the somewhat earnings evolved of we a going demand, should down -- again? expect and seems, we are now of that forward? As at as company bottom going peek kind

Thomas Ellman

Yes.

to is thing for that, cars, So all-time and the If with our at ever coming is fleet to was frac sand half we crude important the reprice the peak cycle, that back like very note we that of virtually rates that able entire off cycle XXXX, that very another super terms. long were peak high, the you about would oil backlogs, long XXXX see 'XX high performance. it see of that the demand,

'XX. seen in did haven't another We XXXX, hill like we

Brian Kenney

That's has whole reduce Yes. concept whole the aware of been strategy here The our of volatility earnings. cyclically management. to the

they're when are as extending to because It's takes off cut while. lease of it of when And good we've And proven good. you've it's cycles has like term, seen. moving that so that also shortening times it the an not our a lease carrier, heard terms aircraft and XXX times extreme

So financial really the but a show seeing our longer while in market that, will results. -- were is truly it it if to turning is, take if not down this up and

Matthew Elkott

And all in most finally, geographically you both outside and Europe that North makes just can area investment, where in the see and in India? for and about railcars of talk guys sense. No, and America railcars you compelling

Brian Kenney

the -- the can years. to GATX XXXX is last at positive for return Rail something Probably, Sure. in Rail Generally, now a right in really Europe. the that's few most my I the risk-adjusted we more come best traditionally least at hasn't in Europe conclusion we've have than That been outlook case, in tenure. remember,

of are North backlog. outlook, out And it's we're Some that sold between European backlog is long quite XX% this This that of create a renewal and very any seeing. They're They're is the demand, America solid manufacturing out if lease now. XXXX. that a that high drive in manufacturing year. success drives right same sold manufacturer. factors long XX% driving major a backlog The rates

rail than in You're European is older also in ones. and replacement needed. renewal. it with I of to Europe And fleet due on newer their those road pollution. there's older seeing North general, railcar industry the then summarize -- just more there's And moving They're customer cars for focused America desire fleet replacing the public as air more, policy would lower-capacity so noise traffic from to

in So returns. and Europe all driving growth seeing we're rate attractive very lease that's factors and

up in seeing So a ours, no the evidence of weaker least European economy at opportunities. railcar And we're very investment showing in Europe. that's attractive fleet,

In India, very is now. things fleet are quickly. going growing great The right

year, of the almost could investment. cars this reach the see end of fact, million the X,XXX In fleet by year, and $XXX we

XXX% in XX very So of The the average is attractive utilized. existing now lease fleet rates. right India months term at

as so But tell there. now, very a decent return new, expected well we the that a investment But least opportunities will certainly, return, going it's market is At about do it's that yet. time risk-adjusted So right return. call tempting to there. the the I are higher it's but risk-adjusted can't and

And point then Rolls-Royce joint along last the with invested I'd year our venture. We investment attractive partner. the $XXX over place for last is million

made. We similar GATX there. ever of growth year this expect investments the has one and a probably year tremendous outlook the is It's best

So there's rail. American in the uncertainty North

jurisdictions other and be in us are businesses, But a very countercyclical our right seen now. attractive opportunities You've investor. investment

Matthew Elkott

in there in don't of compelling right North will market you consider mean, guys I That's markets lot very that you if America, new now? helpful. railcar aren't in the opportunities a operate

Brian Kenney

probably India geographically we Europe. between where want we're think and I be to

Russia. small We have a in very presence very,

on in financial think other up that For an investors happen. now. I X has with to of sale I history don't an years. Rail have right lot last is couple coming X reasons, the of America. next too, over to the give North happen. think any years. come it wouldn't We up convoluted, will And of increase it There's there question. I a if earlier evidence don't portfolios been It's to do indication, than will want we obvious over for

trying figure what do. last now somewhat I and to of out think out the year. to fleet We took they're end at a struggling

come, those One more of I will examples, know. don't

it should, that remain I happen. confident I think will it

there's some that that in there of I businesses rate years. getting them we'll would away thing and not tend One enough market. their is people distract the that would it struggling might that is traditional But I in help happened think increasing. see next think perhaps will this the show help now exit yet. we're rail, churn to fleets out from right That in higher hasn't yields couple

Operator

will Company. question come & Sidoti Steve Our from next O'Hara,

Stephen O'Hara

thus of would've expected expecting Just the differential the based initial being the where think, I'm if million. look expense being of what appears you to be at maybe far, on expense I to then fourth that guidance, and the to income on than results talked to quarter think and more wondering I of has on stronger increase. second kind expectation? guidance muted about assets, in still they're I than million to I and the I guess, segment -- asset terms your what far maintenance call, $XX mean, mean, you happened $XX dispositions so we're still expectations for was between I the down the, curious, that relative XX%, up, maintenance if I been think the then And X% is And maybe Is the half? kind other

Brian Kenney

the second be say it X% a catch of to X% on expecting quarter. probably basis, Sure. lot And through on There's on maintenance a It's good there. things XX%, year. the a gross into going did I coming up expense. up we'll it's

in will than more show in more typical be a associated work qualification little back-end expense work loaded up I pretty XXXX tank think XXXX, and but that's and will that actually. complete we

expect to in In of and the to convoluted work, the it compliance we that more churn more addition second maintenance more some the little of expense. tank in a year do fleet could commercial drive half

But to point, favorable expectations maintenance good So tough in is you'll increased a to having are item has do this second million it's on are couple repair then drive not and a But maintenance us their in your but see of alluded of and railroading. And other Railroad charge spending. more continue, There repairs so far. happened liability. intense that, that being think to of half. precision it Really favorable Tom seen we've expense I also allowing time areas in railroad a especially expectations. the example. -- said we predict, phenomena running it continue, could mix focus the customers revenue could for our to to repairs

expect still So second year but the increase is half the as be maintenance much and originally up for in not expected. half to as

Thomas Ellman

mentioned I other we the And would couple of expectation about, loaded. already Yes. will be remarketing that one a times, it and front-end be talked our

Stephen O'Hara

Okay.

quarter expected of kind bit SG&A a Or like than case? of little kind it a and anything was Okay. the by was would it's that be or think, flat business to And there then kind temporary maybe maybe so expected mean, I side. 'XX just of I that I down in better where million fourth on down? be about of, anything in think, it mean, I hotter runs year. this cost was little the, is $XX again, that SG&A, maybe far. Is

Thomas Ellman

Yes.

lower year we've that's of the renewal as up compensation you year. dollars commercial incentive capabilities the in million originally last maintenance in SG&A in success thought. this lease And of renewal that expect savings with organization fall percentage. we goal. to maintenance and overall in year-to-date being be XXXX our short our sales success to Also, restructured cost mentioned, are $XX for due our a approximately those reduction our related versus high roughly but may SG&A improve end activity, So to And our more higher-than-expected the will than $XX we totals we partially as million million line few did expectations, to

reasons, those that may $XX short be of for So little a goal. we million

Operator

Research. from next Bergner, Our come will Justin G. question

Justin Bergner

car rates. would scenario likely start sequential trajectory? that of What with tank sequential would to to want car a restart trajectory off of the sort be sort for I rates their tank cause upward

Thomas Ellman

Yes.

putting on fairly demand car since tank and for keeping one So again, then would backlog. the relatively aside has of tank steady be GDP for recession, number new most had the great car back eye The most types, car an increasing quickly that demand flammable been to types, came situation kind thing, liquids, you then.

side that time-wise driven more supply new as alternative that on through car So and XXXX to increase of And saw car gave and the existing movement. of it's a the really we back into ordering rates. rates what leverage XXXX lease away was us tank the those became further further have car

the I on biggest So that's that -- at look that. could really the piece look would what restart take conceivably

Justin Bergner

sort sense. with I'm sure again? that going follow That DOT-XXXs. makes I fully clarify was the what Okay. on of you not Could

Thomas Ellman

Sure.

So moving flammable liquids, you have X alternatives.

have a You DOT-XXXRs, which a retrofit is DOT-XXX. brand-new that car,

legacy legacy been that you cars. the some formerly work and car a has DOT-XXX, now done and So have to then is

For which what-have-you, the differential retrofit DOT-XXX on a the And the sorry, of sorry, retrofit car various customer it previously in commodities as are by displaced the moved types, a being the preferences, of reversed in cars, by one the legacy previously again. being J, those is class the DOT DOT-XXXR DOT-XXX car displacing variety reasons, J, of one I'm DOT-XXXR, some turn, X DOT-XXXR, I'm new cars. displaced pricing car. got are -- -- of ones the

Justin Bergner

effect the of Then is? Okay. pricing

Thomas Ellman

yes. So

DOT-XXXRs So cars mostly for had and the then the previously you because imbalance. served much supply/demand commodities you now legacy legacy creating have have supply been too that by cars

Justin Bergner

operating profitability venture? Got joint Okay. gains And the that Rolls-Royce strong. were in Portfolio this profitability or was the it. quarter larger-than-normal lastly, then there all Was Management very

Thomas Ellman

talked earn gains lumpy year $XX But and second to be between for your $XX consistent the million quarter quarter. first million and on bigger the in beginning that gains the the that of So JV. tend we'd on pretty with as previously, expectation our is Rolls about we've versus side expectation our were the for Rolls-Royce

Operator

question will & from DeForest Co. Hinman, come Walthausen next Our

DeForest Hinman

bounce I ones got a bit. little of couple A to around

You going mentioned interest briefly rates up.

doing guys Yield have to point gone long up the a really there in the of been not anything if of seen early yield how terms of does towards wondered looked much in side. a flat to quite rates can that capital space, in it a as competitive curve, bit, drifting time. long-term You past shorter-duration becoming you've have how has impact take And Is for on a at long we this attractive? curve, our investment see terms move? short-term more

Thomas Ellman

No. in outside There's nothing rail or rail, that come no, I our and down. I it. rates that than are is yield in can are that of supply our the normal yields behavior. going There's factors, historically curve, up to that, talk flat drive last going have can you point say, interest stronger to when market business. generally a I demand rates So in investors "Well, to particularly yields drive are that my -- With And don't will they really their the X saying, years, there's nothing the in investments." the to point to describes

DeForest Hinman

the give Okay. you Can of it up have any It a asking I the it any color customers of if as term to seemed relates insights. renewals? was discussions terms bit. thought had you the with worth in us quite moved to

in was we've time last XXXX. XX the over think I

Thomas Ellman

Yes.

though, to corrected general, rates the lengthen of In a couple which is So our we was consistent quarters. term term it's -- lease with been quite LPI XX what prior actually happens we That had at lease months, that term. XX original to try improve, -- lease is lease as mistake, months. release

freight we earlier, that about all seen side. haven't talked in we on As car at the --

seen side, we last tank quarters, the car few On have improvement. significant the over

flammable make car at And lease those attempting you lease more when tank types, those quarters, of exception depressed. have the and a than noting averages the are averages, worth if rates, of group, to rates with relatively take cars. it's which so legacy car for been versus rates that make sort long-term tank as several individual rates even near we look again, liquids are longer for them were long-term But increasing

that you'd in you that can X overall, Again, before talked terms have see So see expect sustained longer but about improvement as And to further year that. you more quarter, without in go a to rates it makes of sustained sense anomalies kind need rates. in we're lease would range. up we've lease I single wouldn't terms X above

DeForest Hinman

And helpful. question. Rolls-Royce Big That's the to then JV. picture shifting Okay.

not Rolls-Royce planes, flight hours through on Airbus-centric an demand? of and that's positive, so that even You've this book delivery, increase at does year the that flows portfolio? more but you XX-K of a the how deals But grounded, the order with look meaningful Airbus-centric. there's on how it MAX within is The headlines And then it's in just the all you your Can look backlog? in MAX Trent event this with at terms is grounding. couple read portfolio, a if contracted out -- you longer years discloses really potentially

Thomas Ellman

question times. impact of that gotten There's We've in Yes. couple no a XXXX.

and question no You've are engines locked far already opportunities. real answered as we as there's leases have up your on repricing

last that count to good how it's see on years, to see early a could and it a of were it's mean, long wait for but too to you lasts. number have certainly, I the If We question. that. way situation

DeForest Hinman

update And on Okay. question. per us XXXX? then last repurchases Can you dollar share for

Thomas Ellman

Sure.

So $XXX $XX the did generally we multiyear authorization repurchase. quarter, of an get In we authorization first million our is period. million, for that's current

Second quarter, $XX million.

XXXX that $XXX done approximately mentioned we in our the million year So was for And to year-to-date, total our $XX and we've a on remains expectation. expectation then do call, previous million.

Operator

will LMJ come next Scott Our Capital. Scher, question from

Scott Scher

X,XXX was today? average Two talk Did quick the cars Can the And that? it you fleet of what average about questions. you that as sold, age the the of age the what average average materially was of change? of the fleet exists age age the cars,

Thomas Ellman

Yes.

I don't because do change The quite wouldn't And age the just cars, this sale So have XX years fleet been is average ages is challenging of to around it. materially the old size. It's The North no, change and for has in America. me. and of the the front of really in time. of total some -- in those

Scott Scher

Okay.

just will question, XXXX? be what can for you Second me cash taxes your remind

Thomas Ellman

Yes.

we amount the X. investment essentially cash of because taxes do, So are of

Operator

Our O'Hara, Company. last question will Sidoti come from Steve &

Stephen O'Hara

to housekeeping item. just wanted I Yes. maybe -- a

Operator

Instructions]. one moment. [Operator please. Yes, One moment,

Stephen O'Hara

Just a housekeeping item.

And $XX the the breakout. about from line? the line general affiliates in of talked in out then that And line that's million the share XXXX. the thing, the or affiliates tax You tax to be -- that's income had thing. actually first I second it's segment $XX quarter, the benefit line, just not taken that And tax million, the then RRPF kind within should corporate think, of on the you statement, or the of

Thomas Ellman

Yes.

So in segment, both And far, by the of, shows that it's majority JV the Rolls-Royce Portfolio of some is, anything then by company. affiliates. for Management share time, the quite for the breakout total up the

also in are to all see with related that the The Canada American of GATX. of to tax you'll item affiliates had North for share do provincial So in business. rail taxes

wouldn't So the touch portfolio.

Operator

this Speakers, much. questions we you Thank time, further very at have the no queue. in

Jennifer McManus

any everyone participation Please Okay. with to I'd call questions. like contact Thank the you. me their follow-up on this morning. for thank

Operator

at Thank concludes this time, now much. you gentlemen, very this Ladies and our conference.

you. Thank a lines, your week. have phone of You may great the disconnect rest and