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GATX (GATX)

Participants
Shari Hellerman Director, Investor Relations
Brian Kenney President and CEO
Tom Ellman Executive Vice President and CFO
Bob Lyons Executive Vice President and President, Rail North America
Allison Poliniak Wells Fargo
Justin Long Stephens
Matt Elkott Cowen
Bascome Majors Susquehanna
Justin Bergner Gabelli Funds
Call transcript
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Operator

Please standby, we are about to begin. Good day. And welcome to the GATX 2021 Fourth Quarter Conference Call. Today’s conference is being recorded. At this time, I’d like to turn the conference over to Ms. Investor of Director Hellerman, Relations. Shari Please go ahead.

Shari Hellerman

and Jen. joining materially GATX’s you, call. CFO; joined Kenney, and Good President Executive year-end morning, for you I’m President Brian by thank Bob And today Tom fourth and conference Ellman, Vice everyone. earnings Thank CEO; quarter Lyons, of XXXX of and trends North you’ll discussion our hear Please President those forward-looking Actual that or note from consists results statements. Vice differ forecasts. Executive Rail some or and could during today President America. of information statements will the

that statements share. million XXXX included $X net please fourth operations our in For to and assumes Items. revise the The After more XXXX net reported information, of income refer continuing Form forward-looking to XXXX release the XXXX compares per discussed risk those obligation Tax factors continuing from per share. and today per XX-Q. GATX or no in or will will Brian net $XX and Form as to as include It Adjustments or XX-K earnings overview income subsequent from quarter XXXX our update GATX’s I XXXX. Other fourth XXXX diluted call questions. results outlook reflect XXXX, or a $X.XX our additional full positive provide year operations and to and for well $X.XX comments quarter on of of million Earlier quarter events diluted we results $XX.X quick provide then to circumstances. any fourth up or quarter GATX of diluted $X.XX for fourth open a million impact share related will

or various per investment Total full-year with negative continue attractive XX businesses continuing Other net per These respectively, income globe. diluted billion, $X.XX release. diluted million in we XXXX reported $X.X Items. $X.XX GATX opportunities on of and was per impacts diluted The or $XXX.X Tax per XXXX items invest continuing XXXX XXXX. Adjustments results share compares to income are volume share, year full include the This find associated share. and across of to earnings million net $XXX.X operations operations in our XXXX from share $X.XX page our diluted of from to the as For $X.XX detailed and net of

shares Additionally, in about XXXX, $XX GATX repurchased approximately XXX,XXX million. for

approximately of have $XXX our million under repurchase As authorization. existing XX, XXXX, December remaining we

that, Lastly, share as per in we earnings the noted in the $X.XX will over I to call Brian. be With per turn expect release, range to XXXX diluted to of currently now $X.XX share. earnings diluted the

Brian Kenney

everyone. morning, Good Shari. Thanks, Yeah.

As Shari our said, some importantly, guidance. detail I’ll give to underpinning XXXX more XXXX performance, you some our more brief color get on but

So outperformed Shari year. as repeat gave the North let won’t expectations America. say me was here, That that, started. will our I the I through numbers, but we them you increasingly true move we especially get so Rail in

more in saw press the release, X.X%. you on rates you think just to is flat index where that the drove and a lease now virtually XXXX quarter be pricing in for have I’ll But six pricing As quarters increased in lease in negative minute. consecutive at our we absolute going give lease

by So driven fleet driven the team. it’s diversified composition was demand, our different and excellent our solid pricing by by strength was execution by commercial

values in and for XXXX as America they took fleet values, railcars that gains originally drove harder drove thus enjoyed our factor realize rates the talk we As and not the than they which about planned, we with combined push we into efforts repairs more drive expected. XXXX coming lower also the ongoing high the originally we network, and scrap was continued railroad they lease prices success, they year high the strap last into repairs well. to sold that high lease only for than lower experienced to much year but we churn lower risk, maintenance our renewals North that progressed, expected the secondary more asset around market and costs own The succeeded,

was North America really the advantage strong Rail versus market. it an team year very our a for and So improving of take expectations did

International years. strong and by significant increase. investments XXXX. that to earnings Rail, Turning segment we’ve -- a from and increasing XX% was by few the last million a over their in we profitability from That XXXX was increased expected driven in That underlying increase $XX delivered markets about they continuing profit significant made the they performance over

year. with foreign from with the exchange segment they a the in that drop for to throughout too anticipated, in prior market dealt air much didn’t to business, Within difficult that Partners was down and and prior strengthened to Concerning just Finance lower addition, joint Portfolio leasing in our tank our of was million acquisition they tank headwinds long-haul but XXXX. we year, expectations. relative our profit the Trifleet, the year. asset Rolls-Royce and container the as outperformed that they Worldwide have was our in by $XX continues operate market JV remarketing In deal gains travel container ventures driven profit Management,

XXXX the and might you to with the actually in ended purchase we with Trifleet retention associated up But XXXX expected slightly be acquisition. holdbacks $X.XX agreements and connection price Trifleet dilutive that originally accreted. was As to to being accounting in remember, earnings due

XXXX really businesses. So, our expectations in financial across versus showed summary, performance strong our very

as discussion I a on XXXX, Before Shari XXXX. billion close $X we I out, want indicated, again in over invested point to the

investment coming opportunities by obligated supply deliveries XXXX America. $XXX But from around our North perspective, accomplished steadily million that’s to and in extraordinary that committed $XXX were to was was were year, that other that’s from customers. able our means we for Now agreements asset over team. the performance of proactive million that throughout close that increasing of And with the prices despite my year, railcar take into the total we

to to prices they present so call, asset the high in market, the said had today’s and of increase terms, higher in customers investment close the why that due level our team that rates, to longer all last secure had is investments in asset I many attractive XXXX, economically amortize their tough financially costs. in commit to doing in have so lease advance, to in speculative be to costs. As cases, us extremely success the these it’s in higher in order And lease to investment despite getting earnings to justify them

but our it strong does new our good customer So that is sign things, the sign demand a also team It’s for only that couple there’s has a our a to success not points of market. assets across relationships.

good team to level investment our that by the secure still and of discipline. investment really So, job a maintained

let the access that me by to so market outlook. So capital, strong a turn sheet, business some our America can that excellent first I’ll has XXXX in saying time seems conditions growing North largest some detail to the favorable the point. Rail continued the balance to turned enjoy businesses, International to GATX recovered years, for for the our corner pricing start fleet and Rail the in have and leverage, on experience market point that we

America in in really since boom an been North years, situation Rail early by know, collapsed operating with you crude rail market for a As has XXXX. oversupply

is recovering that heard this Over that natural say market was the and two last us gradually years, attrition. to industry due you’ve fleet

of reduced manufacturing cars. older combination of output, So scrapping it’s with the spurred railcar combined the by

diversified as market in constructed we point to renewal expect think So changes for positive conditions as upon on average recovered to GATX well the that a XXXX. have as fleet the well we fleet, and rate see that lease

price lease to change expect our index X% currently In fact, we XX% to a positive year. show this

time, last in we change noteworthy the for So year a saw as in that’s XXXX. full a pricing a index lease development, positive was

utilization continued anticipate expect with factors net year. all a being that also revenue last for North success, this a America of these slightly effect We higher small increase year, versus renewal Rail lower we

gains we’re good for relatively be car a Looking flat thus on our the costs, into waves But efficiency factor and we’ll the hopper with pressures for further material expense, be from expected continue at strategy The expense that our realize now And In to facilities slow covered three more events disruptions inflationary XXXX. performed network, doing with We’ve seeing in third-party have asset move than the expect outperformed and currently over income. expectations COVID tank in last maintenance own maintenance we America own from work last this net is from labor cost. discuss in currently we net disposition being our we of and to our XX% news story. network it’s maintenance lower well XXXX. XXXX years. will want aggressively Rail been have to North I

railcar for XXXX in very Secondary sales strong. market was

widespread remain prices prices capital. gains America. higher versus and as steel to in is And that’s we to are dispositions scrap As strong North asset we’ll asset appetite high high year. we much and another the low expected, access and cost said, due the Rail year -- on for gains strong prior expect asset investor realize And

XXXX In or to optimize level fact, we we than I’d as say, a fleet. higher similar somewhat continue anticipate our to

market we’ll our act change and So, as changes, always, if the plans will economically. secondary disposition

Rail So the to in net effect XXXX. million range be we North expect the million is up segment profit $XX from America XXXX $XX that to of of all this

and Let Rail me with I’ll Rail International Europe. start GATX move

expect and market we’ve recent lease market As wagon And more wagons more rate as rail robust market. the European fleet. on while that attractive entered we’re in and we years, small continue we in in XXXX, early favorable to existing than that renewal markets the leasing we’ve XXXXs anticipate the as rates, discussed adding X,XXX all remains at since seen the into realize investing we continuing increases

and Indian in year, remains, by of growth, to customer our obviously to in that manufacturing diversify India, COVID an this Europe’s the expected anticipate increase our And of their risk also range still Rail of on million million X,XXX in as increase to a currently to XXXX. $X XXXX. year. this to expected shutdown, fleet So to add their growth over absent year. of wagons shutdown we in That is types, $X profit you significant million due XXXX their to fleet and Rail last to They the the million continue in $X another their existing in mix performance spring expected combination strong in know, curtailed their again profit yet another $X car but growth wave fleet fleet was investment result is new COVID

profit International with in million XXXX. means be $XX to combined the Rail Rail GATX range million to $X that for expected Europe, in is expected that So, segment total growth in

pandemic. joint our continues to trying Management, air to Portfolio that’s partnership be venture, the travel. long-haul RRPF by the full of dependent of given so in of in our the because of hampered as up air recovery said But So timing global on strongly reduction be travel, believe the we the ultimate earlier, with we’ve market. to estimate that I Rolls-Royce Honestly, recovery and ebbs the appears it flows

the the engine to investment in as million attractive focus performance So in continue GATX that we’ll made XXXX. finding improving JC and JV’s the in -- on direct $XXX opportunities, meantime, such investments

corporate GATX’s throughout that low experiencing be in currently to same Rail million Quickly, million due starting we’re business tank inflation, range $X to XXXX million these thus that that’s we and lower expect in are we We to due again some to days the this access corporate we increase of I that due XXXX. combined year. Management enter think and synergies just SG&A International. Trifleet we in to realize purchased $X the -- to also before Trifleet’s to with is at business strong XXXX, lower experiencing costs, offset anticipated $X And some profit Portfolio improved we as that asset RRPF. related to capital. strong profit other cost cost to headcount that XXXX won’t more pressures million should the and But remained occur everyone but market the costs and and customer growth related lastly, the activity investment segment employee we increase by wage $X And primarily at said, as did So, container at XXXX. leasing also expect market in efficient Trifleet, in I remarketing

will So our some due right slightly a will adjustments now lower effect corporate costs essentially expect XXXX in profit, lower to rate. and to $X.XX of always, flat and close be costs and significant results per Again, I XXXX. this that is be assumes this be all in net this share by per XXXX It’s dividend, or for in disruptions The segment that share the COVID-related the want repurchase in a the can we of flat Board The Friday. XXXX share plans projected share a to few of year. that should corporate the mark our in will range you discuss in reoccur as earnings year diluted two XXXX. a again that, rate last paying point item XXXX match. XXXth not no in tax our meets the dividend. resume of record SG&A per consecutive of tax year. $X.XX They reminding diluted expectation increase to year SG&A and this will tax our assumption The GATX this track very

record that time. the a our the and importance long streak dividends success Obviously, So our our century example understands we’ll announce and is of of decision I to Board that at commitment of great long-term the shareholders. think

again largest stress confident yet in the we expectation in investments employees our to want to we positive are our that confidence making well trends revenue time between that years, very that us come. over and will plan first So, GATX business, once in and years shareholders really the for XXXX again, I’m our to execute reward will I six see the that continue for

you had. can up I all that’s to Operator, it questions. So open

Operator

[Operator Allison to we’ll with Poliniak Fargo. Wells first Instructions] go you. Thank And

Allison Poliniak

direction On, rates of, going we as any terms with be of little But maybe give it’s a obviously, absolute you Hey. guys kind what in perspective, obviously, at Could guess, where I are higher lease that relative renewed. positive Thanks. us the this view LPI, normal? are Could than here. like point? you color being what’s you to renewing give to

Bob Lyons

question is. Bob. take that it to Allison, you. happy for I’m

look little very Brian the actually his time, and move favor, the regards expected for the working the which both ticking bit XXXX, rates As consecutive into sixth have, in is to is first up. a in mentioned comments, a in renewal we the expiring we rate with absolute long elements we LPI, rate our And average going saw opening lease quarter, as average up. time down is for

the we getting So X% direction. signs to but still some moving to much Where are right than freight lease with that it that positive the fleet tank that line, is in go the us puts car closer in range. is equilibrium particularly XX% in to with in higher all regards long run regards to typically rates, to and variability normalized tank, we’re

Allison Poliniak

some to color comment want your Brian, and a outlook. to And Great. I go back with you gave of

rate, that cars thoughts why on flat, this and that? to You higher, the it’s positive lower, lower. thoughts rate any I obviously, thinking past was mentioned maintenance be I high renewal rate, quarters. you’re lease I retired going guess thought the the getting percentage, of you are then would your just that? that been but those top said there And if that be that, any just I the renewal lease -- renewal know be high to going guess, is point, two at Meaning, on

Brian Kenney

would in it when success renewal the similar Honestly, we did was, say, slight a said fleet be way I only utilization. XX.X%. down might have drop can at I go what Well, in you’re XXXX.

XXXX similar success it there. slight So had a XXXX. we be But could expect as drop renewal we in in

side, On you did the maintenance to? Bob, want

Bob Lyons

Sure.

with expect relatively where XXXX. a couple said on we in things to the side, in his think be we overall, on line comments, flat and I maintenance opening to reiterate net Brian what the were maintenance going again,

to labor are the our we other in So facing all some -- are regards costs, facing. in pressures many both are with that folks things of industry material rates, industries

we’re because through to we’ve efficiencies number relative the of were line to able been of be in because past. own realize, years we able that lot in where the running will hold number our network of costs the a overall We cars of -- to

over of So we’re the essentially able some pressures course offsetting we’ve years. things to those been network do macro with the of last our in few the

Allison Poliniak

you. Thank Understood.

Operator

We’ll Long go to Justin Stephens. next with

Justin Long

you lease then percent in able significantly good something that about quarterly around that fourth And that North to us should cadence saw lease the rates. results assumption America, wanted to the absolute quarter income can remarketing circling the give on so of rates? increase circle that’s swing back Are in that absolute and can color we any Thanks morning. the back you question expect to in XXXX? because just Allison’s we income, on to share I in remarketing

Bob Lyons

Sure.

Bob. a this X% front in or performance overall it number Justin, and there we’re regards again, positive to in increase. a between first looking And the seeing you’re is I’ll take consistent at one. tide the sequential rates With X% a like is third and and fourth it. to lease takes quarter definitely row is combined, turn it rates of that, with turn and absolute tank in industry what’s freight six most powerful about what That’s number that quarters that. quarter,

Brian Kenney

of to we work, we’ll start remarketing to second quarter. secondary good always quarter of the quarter-to-quarter, first income, to year predict I sit With think, pretty market. transactions regards of have the get the today, Where difficult because the in just we off and the timing number transactions in a way

So a bit weighted little always the it be more hard front may predict. but to towards end, again,

Justin Long

in wanted capital over what on on just the much you Brian, that based as could you secondly, years. valuations buybacks that’s that Understood. we’re the last so how XXXX you’re front, around guidance? and on like on what sounds could two the It things And $X in number into alluded factored market in of touch seeing well. Any curious billion maybe each and thoughts and I the to to allocation, investment look follow-up like restarting

Brian Kenney

not would investment. this currently Yeah. of opportunities be the terms market we see necessarily in and investment What in speculative

to speculative, have advance in and said, we’ve able been up had we’ve North customer especially in that closed do I had customers Justin. And fact, America, realize lined they a XXXX I able can -- Rail XXXX, $X think in that, year dollar their been of supply without committed America to doing as over in we’ve $XXX think, I we investment. in agreement another Rail arranged outside million they North that

spec didn’t position a take and in So, we cars. those

So they’re some doing of market. nice strength really opportunities. a in a also underlying those It’s the job identifying sign

$X we year. billion think do a can this I So again

share want repurchase Tom, to? you the side, On do

Tom Ellman

Yeah.

purchased both million about the to we of about, worth have reiterate from million Shari we Board what and $XXX just our Brian $XX So and in remaining stock on XXXX. talked authorization

billion indicated and amounts we find we’re do and number days be in the the But to to forward. Brian talked investment expect on it openings, about. just to forward in considerable repurchase of that we $X to Brian something going able continue stock is XXXX would look his evidenced where attractive so to As do trading by able to volatile continue going we as

allocation Directors for consistently always framework investment and capital talk stock us to of with buyback about our Our calls those prioritize Board we opportunities decisions.

our that years of guidance, and last zero us somewhere terms provided we’ve that $XXX few between range purchased dollars the In framework. allow have anywhere historical and buyback million, for the we within over being of

Justin Long

appreciate helpful. time. I That’s the Okay.

Operator

Elkott We’ll with Matt go Cowen. next to

Matt Elkott

morning. Thank Good you.

Brian Kenney

Hi, Matt.

Matt Elkott

Good two to see up the in average terms its highest to go years.

do could be range be the the would could well appreciated? think year, where to rising previous we side we relative on terms -- a the the into still keep this rates the trend quarters, you insights think XX could end are over question I given My is month any last guys, on continued And throughout lower year? we six it’s recoveries.

Bob Lyons

Sure. is Bob. Matt, it

up move saw moved will also XXXX, hesitate XX a to from months quarter-to-quarter. it can the on that, month, fourth We from I you mean, to because in as put anywhere XX number quarter. it around

lease broadly where right fleet trying ours, renewal attention in are the success we’ll types making stretch on with as level direction, focus those more sure and But as push certainly certain up have in the have terms term. going, we’re the Now phase rate out. we to a to concentrate there we’re then a diverse to XX% on getting really rates to finally, of we’re in rates where anytime already close speaking, right more But pockets types, car trying car still will you you term. we’re and

Matt Elkott

Bob. very on like, kind earnings to multiyear That’s does into Okay. to this cycle is of and you helpful, -- the A recovery lag that like a actual guys? recovery, earnings prolonged a recovery, lease recovery half starting looking your is a rates? it like it So feel this year more feel

Bob Lyons

and feeling the to even frankly, does and quite the that this we felt or some It incredible spikes -- of Right. or back pockets but ones the and small of for damage. very have XXXX types, of market, and I in is we’ve recovery, when in because demand accelerant saw better it the the very cause before, some long-term, look mid-XXXXs, car real I than you different, we’ll beneficial ones. to this have -- what more crude short-term, recovery than much can the legs more hopefully, They’re the boom, longer much prior they fundamental, think, you. And seems XXXX

Matt Elkott

million And Okay. the North $XX got this range million for segment profit expect it the gains that or year. expecting I be up in be Brian you think, slightly to up are And to in I if America Rail guys not you’re line from -- correctly? then, should $XX mentioned

based as I on the So, is million as mostly your controls rate improvement, $XX lease $XX cost assumptions? to improvement well from guess, million

Brian Kenney

Yeah.

Matt. a assessment, fair think that’s I

Matt Elkott

orders And remind you somewhat manufacturers a agreements able you what and existing your for of guys to become needs happen to in have? one last significant to of us Okay. manufacturing near could, order orders serve just this utilization question, your the full necessity or supply this can to guys point, customers, at have you I year consider with given if be

Brian Kenney

Sure.

have We year. supply agreements X,XXX end through a of two the totaling runs That XXXX. cars

just the And is the agreement available third quarter supply availability reference, in agreements. nearest XXXX. of supply the on for covered well very we’re So currently,

be for a go us has placing to advance place progresses. agreement supply determination cars real real So deliver. they’re no And particularly side, have tank job of in the but a scheduled It’s those in well where no important load, on agreement to on the nice looking been we’ll at our with on when base yet We’ll the commercial team comment beyond post-XXXX. for yet, has of car extension supply done made that as XXXX. year a Matt,

Matt Elkott

Got you much. very it. Thank

Operator

go with Susquehanna. to next We’ll Bascome Majors

Bascome Majors

talk for American earlier term back this lot XXXX those rate. North I the a to want there if Can will year year? about to like your corollary about question Y, you versus you Rail in how Yeah. X follow-up year structure those at for and restructured balance incentives on any sales historic of, look you or look is Thank you.

Bob Lyons

Bascome, won’t it’s incentive provide question you. of Bob. a that to adjust to than tremendous our I’ll take you for rather commercial the I detail with our an amount get on plans annual to into basis. tell organization sales flexibility regards

we towards to drive to can difficult we strong, focus on really folks very obviously, make sure our are get times, market In the we sales focus we is utilization So when term. and trying the on outcome want. incentivized

to regards on process the rates. some of We’re getting leverage with finally fairly here lease early in

it’s others in now is the consistent trying are will to yet you overall, the early of there. up with one But, lead I in effort those think recovery. as more the hard possible. doing where really right that’s focus pockets our and type of we’re be on car innings types, going we rates that mentioned earlier, move market certainly I term, very would So on what of much Not very,

had you our So, I and force we’ll -- a sales question. I’m aligned second have accordingly. think sorry you

Bascome Majors

No…

Brian Kenney

addressed Bob. I you’ve it, think

Bob Lyons

Okay.

Bascome Majors

another Rail it where made you your hopefully, that for? about response. happens some To do of investments billion the in investment kind least a grown volume, directional terms, being be could this as year, comments since the that $X been It’s manifest North fleet if that while year you’ve a about American at other in unit comments

Bob Lyons

Yeah.

think, strong where the seen be car can activities and look I’d in the in to clear and the dangerous XXXX, over route. has some, we say, not I gone couple other that the XXXX. fact been again, folks been And so that That there’s pursuit sales want a be I above likely, in secondary years, normal are we’ve count. years market chasing overall, we again, some industry today, last very about who’ve the that a

that’s it always important at. looking can you You do can add most the economically, but factor cars, we’re

optimizing wouldn’t adding the next of end, I in the could right Bascome, thing, XXXX. cars that fleet in out the So the rule going and growth portfolio. occur But in we’re of to in possibility do terms terms

little and whether could take We the know give Thanks. is you have that, your preview business think is? there of XXX,XXX I the time. a ask that long be generating less where for and return long I is here one more, The very leadership? of to a a just head XXX,XXX, over in as for possible XXX,XXX scale or If we fleet consistent company you’ve would your you been if a a Thanks months cars under the with Bob. or out this of But best should anything than CEO on another And see massive over that portfolio. more that remarkably time. could company’s expect to concern I helpful. me don’t for emphasize focused three or

Bob Lyons

the appreciate I question. And Sure.

years, noted, had I’ve you’ve been you the with the the and GATX As strategies that of for over here XX and decisions, supportive philosophy those deploy. we seen been direction the the Brian’s last XX in particularly A benefit lot extremely for and that GATX deployed the Brian long lot leadership, time. management here seen together those at of worked of in a very at team has I’ve under that involved working of place you’ve years side-by-side XX years I’ve years. a

we in substantial way we strength think in about or believer the to its changes at the any So a the make firm is deploy I how capital am GATX I wouldn’t have. in significant best. endeavor markets we that

and knowledge live asset do truly in markets component and the We’re you’re used going and to the globally. in try and to a continue with to so expertise we have change assets going leverage to won’t That see long have that, see broadly where more that’s service we to continue widely you’re us unique. to

Bascome Majors

Thank you.

Operator

Instructions] [Operator to with Funds. Bergner Justin go And we’ll next Gabelli

Justin Bergner

Brian. Good morning, Good Congratulations Bob. Good Shari. morning, morning, Good the Tom. appointment. on morning,

Shari Hellerman

morning. Good

Brian Kenney

Good morning.

Bob Lyons

morning. Good

Justin Bergner

There and a re-curves of International both detail North good a start, America quick, couple that? Rail to Just that chunk questions. at oriented be Well, in in Rail other just quarter. income appeared one-time? was What fourth in to the

Tom Ellman

Yeah.

take will I that. So

So driver was uptick our the on, one a came In some was of on of due the primary there described at you year, this that also versus Lahti and described we euro there’s those the from and Rail last we had America, insurance that in our Shari that Rail this really last storm FX some the of mentioned year mentioned. savings of the year. page deal expenses centers didn’t saw the occur proceeds was ratio North what it XX issues between service And about one that some was International, items year. press to key had release Brian in

Justin Bergner

was into joint maybe and second, XXXX. to gains you detail then continue quarter, that And are as the venture in asset strong a gains in question, RRPF, asset within somewhat some number assume profit are in you I expecting still Okay. fourth the absolute there mean, the I look

Tom Ellman

of less next a mentioned comments, year. in maybe year, Brian his this gains terms see to some in those little relative as expect would to of So, bit we opening

the went, -- on realization. affiliates from As to remarketing far was gains in the asset earnings Portfolio of and uptick big due quarter gains how the the second as driver residual Management in at

Justin Bergner

between of your terms cars? rail at as will gains outlook versus it to tilt in similar it of on XXXX. expect you even gains then, on split disposition more do sales Should sort on scrappage rail scrappage and you of sold gains look asset fairly cars look for And towards I Okay. expect or the

Bob Lyons

Yeah.

So driver of rail industry difficult that to But what prices, around move assumption, year as keep this a key baseline happens comes mind one the really is bit. it’s thing a far assuming reasonable quite a a that, is there. expectation, something it it scrap as can to to to when is in predict price scrap a but not similar as whole, really

Justin Bergner

[Technical million, $X is million think I that Okay. how I to more sort for And into surprised should that’s $X $X continue increase? or be the Trifleet the guidance into XXXX? and a are increase just million you P&L for then, to Thank looking they’re that you. in I experience million $X about of Difficulty] fall than mean, not other lastly, should

Brian Kenney

Yeah. I that. take can

the that, actually a Remember, of around $XX small. is $XX million Justin, this pretty business It have in revenue is about and increase. segment in profit. it’s Brian. They million healthy XXXX, size in

like you XX% increase. a think it about So

Justin Bergner

That’s helpful. Okay. you. Thank

Operator

And closing Shari turn are Hellerman to time, I’ll back further questions. the for at this no remarks. call there

Shari Hellerman

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

Operator

does conference. you today’s participation. for thank This your conclude We