FTAI - Earnings call transcript Q2 2021

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to the Q2 2021 Fortress Transportation and Infrastructure Investors LLC Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded. [Operator Instructions] I would now like to hand the conference over to your speaker today, Alan Andreini.

Alan Andreini

April. you, Thank to Infrastructure like to Fortress the I quarter welcome XXXX and second earnings Transportation would you call.

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

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

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

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

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

Joe Adams

date pleased to on August a XX Thank you, To consecutive August share be paid our The per of will record start XX. today, company dividend XXth based dividend inception. Alan. a as and since announce I'm public dividend XXth our of shareholder $X.XX on

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

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

with QX, a passenger our engine in products portfolio aviation. in services Now up meaningful increase Aviation markets starting momentum. experienced and activity and is picking in of

EBITDA travel While related we COVID up from Europe. of achieved in to we million due particularly continuing million seeing goal in ramp $XX in our a restrictions slightly variant, the $XX of are slower QX, QX, to Delta

active leases each quarter new EBITDA new particularly leasing while in to flying compared look most started utilization year. engine to second result, a leasing as recently bringing projection of We XXXX new continuing to as five delivered, see engines maintenance engine our XX market for growing year. programs with now each spending. minimize for to previous QX we airlines $XXX two the strong to million over was we're with capital million projecting engine ramp excluding engines to airlines full major could As our Americas over $XXX is of that the next The acquisitions. XX%, XX the engine with up

one year. AXXXs Americas, occur expect our phenomenon to on later majors. are the bit Europe agreement U.S. as in investment we by the little of a to same four-year illustrated this opportunities XX the lease While behind to new increasing Also purchase

downs targeted or this us engine with program $X engine all total $XX in market for momentum QX used programs Our three AAR serviceable material The active broad CFMXX acceptance. orders in maintenance tear confidence with approximately and USM XX our million booked This profits profit million million strong XXXX. or gives closed. with growing year demand hitting very was product or XX gaining in are and per

Module with has also sales busy a or exchanges Factory and the consummated. handful of active Our on users XXX website been

Factory XX the aspirations big now in the in have campaigns next growth negotiated. to XX several for being We Module sizable months active with

made in market. to the for Chromalloy strides shaping production, with has we Thirdly, All-in-all, final had better market PMA the submission for part second jet the to commercial preparing September. the proprietary and up than big FAA with unique our is hoped in engine approach

to available by including propylene, regions multiple ships, size by refined started Repauno. Now movements By locations. bringing let's of quarter condensate turn the be to other American Delaware of activity capacity for three storage long-term plus liquids import underground or expect complete and VLGCs Repauno, a the all in of Conrail one unused East this via focus. by of cavern. levels opportunities docks, with this million with water funded high most producing Southern By North via in outbound inbound vision both products new capable road vacant the Product via rail XXXX, handling acres underground new natural sharp from desirable butane, on rail, property storage, and a the all fully and River highly and the truck of major propane, barrels are capable a of infrastructure, will a we all We world-class At state starting Coast deep gas ethane, type as Norfolk highway service access in with water XXXX CSX. small into comprising X,XXX high hub across for with market dictates. export efficient, and

recycling much global barrels markets We in and ideally moved XXX of expanded with map the vessels brought capabilities And is efficiently that today. million this our become we and players we're are for on propane. to doing X.X and we're dock. new chain. marine offshore safely throughout have highly have be LPG XX suited reality QX, to were to facilities. LPG reason truck, the addition, by which utilized In we In staging vision and of And will this value farm confident of in and acres, local by likely and manufacturing we plastics developable plus importantly, butane the wind components handle our rail loaded

construction years, million budget. and two XXX plus than designing more report to $XXX power Turning state-of-the-art and and involved the nearly Thanks the on the early I'm that hardworking Long plant highly project months skilled the building Ridge, women men in power pleased is X.X complete and to efficient plant.

operations expect September. scale start We in full early XX/X to

and requirements of a thus for wells, into local of XXXX half gas output. the have XX% our As secured ownership at XX price locking XXX% to fixed for And a through power year years. an early start plant’s low reminder, gas the we the counterparties in sale contracts we've of investment entered spread eight fixed natural that grade cost effective seven to with in price

the of believe well-connected hydrogen are in fuel to is and Having by multiple we on plants the priority and year we developable we're H-class worldwide in valuable. first power track Importantly, to North pathways to value. of industrial end a to become energy of America property this turbine. XXX a to the free Repauno, carbon the first high one site's fortunate upside add generating have extremely also acres Like attractive GE plus

confer maximizing costs their host lots plastics We the to will assets in mining investment profit with different price stages and three with active transformers, believe final contracts multiple minimizing our options With in uses payback. $XX operations well. through a the for that approaches a investment to and interests technology available, or which power using in make in to us a biodegradable carbon negotiations one power provide of to that the host uses been electricity in companies XX/X crypto power less of while new gas primary crypto also year neutral upside focusing sharing. to negotiations inputs. of specific have are we've and as fixed million have low the natural as different on We We're facility

last Finally, tons, road transloading in operation QX our up XXX,XXX frac of XXX,XXX sand and from tons achieve volume record salt year. nearly

of undergoing big of utilized storage ExxonMobil docks. The expansion export is storage million a ExxonMobil. is Jefferson the by refinery, Jefferson built and marine obviously product for be pipelines development the contract to The Jefferson. ExxonMobil barrels connecting will the with new XXXX. with and Beaumont new operation January, in beginning construct Jefferson refined XX recently utilize will Jefferson's major new X.X which Now

refinery the the Jefferson, existing with ExxonMobil complex. to volumes, new attract base customers infrastructure products, this this hub. enable refined of further ExxonMobil products logistics significant us to will the to addition enhances Combined optimize new refined growing further additional Mexico strategic to domestic Beaumont this In the rail capability and international business, tie-in

utilizing poised Our destruction. and Utah demand COVID-related with throughput seeing by connection, crude by railed barrels renewed and from also heavy following storage volumes Canadian up, water, we're due to oil with wax on the collectively refinery picking reduced imported fuel rail. Motiva Cushing existence to grow is business Paline the But Motiva crude from pipeline pipes, our focus for crude via again,

array in list commercial infrastructure. options investment So prime about of the next in we're with opportunities connectivity the growing location North largest that optimize in our Jefferson's excited ahead two leverage refineries of extremely America, and will our to

long-term and have including we who segment. that critical strong looking acquisition results identified we're the team growth, at to under long-term of this Transtar North Turning railroads forward several American now in place, discussing in And exclusive quarter steel rail four opportunities while We're business, all major to the and business closed at for very U. the a management included Steel which S. developing Transtar financial started, pleased and we be very new integrated we're significant excited performs the next grow to much operating to yesterday, Transtar, to it. for will improvements report we getting two expand are from just functions additional excited add so near-term complexes has a deal. contracts. getting are

Turning now to a items. corporate couple of

cash week proceeds to upstream expansion general XX $XXX related year corporate Rates First, at million approximately non-recourse assets this million the parent $XXX level, the a financings FTAI And deal terms liquidity purposes. the to Jefferson. to with municipal strong of revolver $XXX capacity in FTAI and and at for puts we a bond position. CapEx very available offering will attractive. these launched extremely and this to The infusion million including be continue for in Exxon $XXX approximately along million finance long-term

to our always ready having up the from K-Xs and infrastructure, was substantially amount and transition become infrastructure the the revenue as the the the straight two shareholders. infrastructure is progressing Transtar, goal companies a aviation, we tenure To Jefferson, recovery the In and largest with two a initial and have strong that, vertically spend Having call we we at before term long-term the which XX timeline line both indications while a XX year contracted of With world are Alan. of Long And year and have done, in turn Second, definitely new great a in eliminate will over aerospace XX% at executing of infrastructure With to Ridge, off-takers now company be QX a in with with sum enhancements than for already increased standalone integrated ExxonMobil the shape. in and in company. hope aerospace underway. with addition is executing I well is to has more market the and and into end. year plan happening. the will to targeting plan. contracted defined aerospace contract not timeline which EBITDA We and split is infrastructure the contracts, accelerating engine Repauno suppliers back the

Alan Andreini

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

Operator

is question first your Sullivan Benchmark. And Instructions] Josh from with [Operator

Josh Sullivan

Hey, good morning.

Joe Adams

morning. Good

Josh Sullivan

there? question this airline that what's going lease a airlines give XX-plane there. new think Just us relationship, the other the Can of you some have caliber a similar U.S. U.S. There is forward? with major Do the around you you contract? going attract opportunity to is order color total on new major

Joe Adams

business. of have much on capital, access side I excited very to we not pandemic, have able is – that as the it access engine to would part And – mentioned focus also but airlines We're they need the part I of had it. previously, for previously about would we've Yes. to. the is been just a as given the we've – of it It's probably think

in see So we mix a more the for of door our equation. also terms offering the the ability to that business, as opener integrate but products into

it be there when go serviceable PMA, – we level some module we're can are and existing shop swaps doing airline. about So already used with we – when visits this to material, talking that is

the increase So it gives us to opportunity the volume.

actually, companies One people that. the if company if we always by have of have asset has leasing owned that's obviously, we prohibited We been PMA in ourselves it, permission. to you asset, the prohibition an and want a is the have to – give own you put leasing ability usually had the

at resell we – that and So a low very cost. very, can

for – is integrate anybody us provide than as door think I range has services done us of opener it actually I save a before vertically a So and said, money. to broader ever

I and level very, is – see PMA of and the So we interest USM think very – very both in high.

picks I with it's So us to to do this up, additional think as give business big carriers. ways going

Josh Sullivan

if the on market just in leases, color leasing uptick you the And responding could up marking durations give generally broadly, the more us extending on then how maybe variant? here or is lease to the double just

Joe Adams

Yes.

terms extending the heading hour think very I when by are is the era lease any – up up, mean, were nicely. the deals think leasing are we're is engine not power market out. I over, doing turning people rates I doing

we've virtually think doing XXXX. as engine recent good And is maintenance go to the that going can. we what it's as as done laws know I demand, deals in of supply basically as we it's So they much were – are everybody higher. It's as I think and side the in deferring

starting assets for particular in so they're lining up longer-terms. to engines line and And they're up

a we're extended three signing we're is with term. portfolio and getting out months large So up. signed up We a XX and have our just year airline now that – deals

and are maintenance economic think really the another up. dividing pandemic part very prices the reserve parts – never going So And by keep cost down. rates the even period. are has the important lease which rates also went are I is of of reserve and sort number this the hours it estimated manufacturers, terms the maintenance of OEMs And and rates, by the shop the taking – raising in set of

rates strong. still reserve maintenance are So very

in nicely. all, trending very all So lease the think is I up engine market

Josh Sullivan

the in seeing at for a then here. assets talk could this GEXX little just point? market the you're just you just last if about secondary one market, one on I And sneak Can bit what

Joe Adams

Yes.

what of the XXXs, we've XXX, do So is of rid and AXXXs, most been older AXXX, to then get buy trying airframe.

plane scrapping been most a bought probably whole at prices ever So the buying way the engines, acquisition than and we're lower sense, the lowest the million engine. that we've And at, buying acquiring then – for $X we've assets makes them an sometimes airframe.

So utilization books. is reflected one about fruitful, few so good that utilization, we more very a added XX but found because little that's of put that's quarter, create points assets. new in to which bit really off it's is XX been an to And the XX, engine reasons of engines our buyers because there older – like there really very the investments best for least we the the looks second way lower, on very today, some

older if not might you and don't have stream we only the be asset, If – revenue an it's bid. you attached have

like we So dynamics. that

Josh Sullivan

Okay. Appreciate you. the time. Thank

Joe Adams

Yes.

Operator

Guiliano from is question next Compass Your Bologna with Point.

Guiliano Bologna

similar a following morning. topic. guess, I on Good

percentage of moved from X%, where they of at perspective, a of specifically how been least point. for curious necessarily how have I'd specific perspective dollar magnitude You around basis, that but on I'm some rates be been we discussion they just talking from are kind curious, much and were of kind a be a curious I'd engines? out CFMXX rates these were is XX%, moving some wise, about much lease have there rates moving lease XX%? kind and industry magnitude higher not

Joe Adams

fact pandemic, It's I XX% Yes. XX% pre-pandemic XX% probably most to the from And gone. would probably very close XX%, to in that of say of I to pre-pandemic. now to we’ve bottom the the the that has think worst. declined

Guiliano Bologna

more little holistically. aviation And of great. That's about the then kind bit business, a thinking

because grow time? from to in of that you the factory, the a off perspective, there and kicking or is over early which be of I'd obviously if engines have module cheers success. of of the big factory and like of things curious magnitude and kind obviously You could sense throughput could opportunity have inventory look a you a have the be kind seems to module some kind what how –

Joe Adams

Yes. some engines. engines have CFMXX in currently and have we XXX I you mean, inventory to owned

starting to right XX at they engines. XX programs year fleets about airlines looking a that But or of of XX to – or talking are now be have could talk XX that could be the So lot we're XXXs with modules.

that a So really at kit. they're looking as starter

started that we can So people flywheel it, then basically them. a we think we get can doing if just it grow, has grow and you with effect

XX,XXX of So engines our in this XXX there to engine is remember world grow fleet XXX, type. XXX, just the might

to XXX XXX to really doesn't from move going So the XXX needle.

customer, so, the is significant. this scale could Once the our the do way integrate many really how with think inventory And into I upside of people they along the we but of, needs very operate maintenance quite to of it, bigger. you side, will you And top into they next year, it's put become start happen significant. it much on if which PMA could on the add then, that, even can

Guiliano Bologna

thinking to of some then of X comments obviously the sounds critical That's of is million you changed a project you starting allocated had then, it used $XX is that different so a of overhead been which the Are segment, which business. be discussed million because million obviously should beyond another numbers, about of anything Jefferson, ballpark, contributors that old deal, you the assuming $XXX rate EBITDA. the looking be about Repauno, the you have of have kind have next $XXX then Phase now that curious of called $XX expectation I’m run of from you're $XXX the was that million, puts all to million, are be you there. Repauno into Phase pricing few the just of you the call in to similar guys discussed. $XX about business, scaling it that like kind XX? $XX complete strategy up referring is there so what storage, is making components And Transtar decent out the And that to should the that or get $X you million expanding decent would great. kind $XX this million and power for split million X a that I'm plant pipelines Kind from CapEx that put at – kind and pursuing about you're if kind far outlook, to million have and still it but into Exxon of

Joe Adams

completed X. need in to it I be we've build And And point, very more, some changed, That to this to intensive the at of specifically when invested million less of we're Phase expectation, Yes. used. $XXX is we partially we've exactly and hasn't I infrastructure think need it. was build think we zeroed on what that's because the capital going than already on the

and some other or thing had as that as listed So coming recent I a And million. of changed, an would about which connectivity, lots of this, product both it's the thinking butane, of we've liquids, it's propane, is condensate about would – ideas fairly the example, offerings. more some products. expand eight the And different the natural also from as gas had to we first actually then When we've us were discussions propylene of different as think $XXX started people suggesting products. but capabilities, I've we further refined pipeline well

less better in we capitals terms and upside a had forecasted. little only the than it's So probably the I bit what gotten of think is

are real. So if the it, because conversations all saying happening and and enthusiastic I extremely I it's didn't it's sound am – live enthusiastic

Guiliano Bologna

Thank and the the back all queue. That's in great. appreciate I I'll insights you. turn

Joe Adams

Yes.

Operator

Wetherbee is question Chris next Your Citi. from with

Chris Wetherbee

deal couple decent just guess right to or touching the getting of probably deal at that a what is you might of look could right the fill if Joe, trump sort there direction. like. bit building maybe of in fruition. to guys. like might great Exxon coming was you want I the step trying the what to Thanks, I'm Jefferson space on up pipeline deal like I maybe Maybe timing around guessing little just here, of of color could here, don't with obviously done know, of And it's a facility. hopper to through get of can now? don't opportunity deals good what Jefferson probably amount the about look the in have you terms in seems It storage interest I'm sense And you a ramp looks in that but maybe there talk of I a coming a be morning prospect then guys. is kind the like? what probably up if you

Joe Adams

Yes.

that's we continually, every – we than we've list time started, deal a a part. think longer with meeting, we we I we so when a up or do fun end have the

projects in longer would we sort large Exxon with so do And projects, were handful of our that always power would entity I get that's of each negotiations. real. that one we've have multiple than got they sales a of sort and say to are of seem staying take these we these there, of Motiva – we But like.

America. So largest but point you be these are both in it's opportunities the Exxon number products And a XXXX, and think from macro about crude. refinery if North – will refined we are in the and there the of – two view, of on significant

day XXX,XXX barrels a barrels and and it's in XXX,XXX Motiva. a So same out day for the

our over trucking right million X backyard. in barrels day you're So a

that lots things the So something an don't guessed of things we or that intermediate. fuel that would importing we on example, anticipate, even that's happen that radar, a never we have in topic but like have becomes for and oil, storing

dialogue. So a wise, conversations. a time of – projects have this about lead many, that. do takes storage once building probably things so year, of Timing there connected of have these But these a because the come it's a just to regular many you about, lot you're the are once and regular on lot in different get projects we you

to don't you because already, that we lot part worry about it. Now of have we and a we the connection have can say, it's easier, so have that go a pipes though,

nine I to it's that And the would typical would months say discussions be mostly time year. so lead a these –

Chris Wetherbee

And sure That's back of sort guide, Okay. I'm you could just I – – that are helpful. understand going to XXX XX Can here, appreciate million the that. that of what the the that making drive I aviation to then sort go there. maybe variables to little or than some it? the XXX important as I risk I of understand want the to dynamics for rest think sure higher maybe bit that leave the about we create that or guess, to of hitting just most make for a that guide I year.

Joe Adams

biggest of Yes. the would movers The two be number flying hours.

as up increase on our the revenues So maintenance reserve ramp flying, airlines side.

the look it flying think aircraft. was And of every if was it hours month, utilization you quarter, best XXXX, was so, was back every I to XXX airline – XXX and XX% – so third a quarter or to because our

and the States to showing State you is U.S., cross-border. mean, year travel slower. one biggest a could with up I you'll see acquisitions. activity been we've start will where second – I and you seen flying – think the more different, the think one, this flying, activity without slower travel Europe, Europe, that'll but just later Europe and the follow happen should indicated just is in But historically, between great it's probably that's lot, But then that it's say. services, ramp where I South States America, lagged, it, passport, another and number but always, one, particularly I has is and that's we've so XX not can United a the is So lot, a I always of seen because Europe more,

deal the next And carrier the we've mentioned large week. we deal with I so is close got European fourth week that closing have And should or this one one by then quarter. other

the are hours those acquisitions. flying think and So I utilization of two

Chris Wetherbee

it. you. got I morning, helpful. That's Okay, the Thank guys. time this super appreciate

Joe Adams

Thanks.

Operator

Your next question Stephens with is from Inc. Justin Long

George Sellers

ramp the you on within into Hey, from EBITDA George Justin. the to it'd great. good And this the you number to guess be second provide year Sellers the morning. could that half This maintenance and start, expect you aviation. talk pieces into be update around about I any parts can for of is XXXX, and of generated

Joe Adams

about three I third, the the the Martin, assume USM Factory. Module talking Lockheed – the the and what's you're JV,

So those three…

George Sellers

Exactly.

Joe Adams

year number We XX is revenues. a believe still for good leasing million those on XXX was largely XXX three. The decrease that the to from for

XX be, So this going we produce year, we what those but three be for about it's will that higher. next safe to year, think to forecast will haven't yet those assume

George Sellers

it. Got

turning level And speak to to could hand. Okay. That's year that that you your Jefferson XXXX and already helpful. you well. on on ramp think expectation, you visibility walk how as through expect also maybe EBITDA then you based thoughts could through latest into to contracts Jefferson, about you around And you of in then this at as the have that have

Joe Adams

put that XXX the an north. million the there, Jefferson forecast out I assume again, haven't for next We but quarter, we XXXX believe run so that rates would XX the or really end fourth that official million, of for will be million year XX to

George Sellers

you much. Thank great. there. I'll so Okay, leave it

Joe Adams

Thanks.

Operator

with is question Rob Salmon from next Wolfe Your Research.

Rob Salmon

two with guess, picture companies the question. good structure from taking for to question. just the perspective capital I off a thanks Hey, discuss forward? you And you look Could Joe, we following the morning, guys. split to look expect a start how bigger as

Joe Adams

each targeting to we're mean, one. I rating debt maintain, level the Sure. a company of on for maintain DD each

non-U.S. corporate like to then would would then domestic we'll be the the be that have will be would with the projects of Long debt that's financed, modeling U.S. rating and BB be it seaport of also agencies Ridge work to part be our but at about, infrastructure corporation. we've But details, Jefferson entity an maintain of a going – business most level. our bonds financial the next talked the the the months, will And are rating. objective. in the And So process and own that which we few aviation, our all through the targeting through financed

Rob Salmon

companies, I of those point of historically, out mean, see you is have that Company in that's has targeted of work a capital you through How two kind this at the kind across of the dividend That's as more a do shareholders. playing still dynamics broadly growth helpful. thought FTAI the kind of to or both as return progress? guys kind well

Scott Christopher

anticipate that. don't change a We in

still investment income going objective growth. be to is it's think I to be going plus the

So I don't expect that change. to

Rob Salmon

Got it. looking of would true for? And that companies both the for be

Scott Christopher

Yes.

Rob Salmon

sorry, a Perfect. And quick of – ahead. couple go then

Joe Adams

Historically, aviation higher would than dividends see I see infrastructure. would think on you on you

Rob Salmon

planning the of that's in you of that million generate? sense, makes underpinned that then And the investments you with of sense year in expecting the That you're couple are of Yes. follow-ups aviation to the give segment. company EBITDA investments. a given the half us Can guys a just the quick capital XXX back

Joe Adams

now, investments about Right are under additional that at looking all haven't $XXX anything and that. we added beyond million LOI we're

Rob Salmon

between in more fourth is you mentioned a know airline. had there that And quarters expecting a you're large American weighted the quarter. is or quarter? big obviously, Perfect. was deal closed you the I close just pretty to with one an evenly And two it fourth

Joe Adams

weren't to say I would supposed We that, yes, evenly but say weighted.

Rob Salmon

XX% had we in transaction the quarter during give utilization – the Helpful. you – ex completed just Got that's exited quarter? Yes. a transactions sense June terms you to relative June and that if utilization the then the rate, us guys at adjustments noted – it. within that really you the the that of And new look the can how

Scott Christopher

rate of the It exit was quarter was beginning percentage points. the from about – XX I the think up

Rob Salmon

guys. Appreciate the time, Helpful. Okay.

Scott Christopher

it’s quarter, expect XX. were potentially during quarter. we I leases, think – and on the a added on XX put pretty engines big we And probably put I XX think

Rob Salmon

the Thanks it. for color. Appreciate

Scott Christopher

Thanks.

Operator

with next Stifel. question Your from Galanti is Frank

Frank Galanti

want horsemen was for Great. on, call JV, you Thank already has my I or the what you been to you taking expectations in USM, – wanted Factory, Module follow talk up the million it, the the Can I to three guess, assume for questions. guess, I about this your kind does said of you XX the second year. that quarter? how done specifically whatever

Joe Adams

five XX. of the about Probably

Frank Galanti

parts first the Okay. for about PMA aviation on there's us three, been update can how then part, an level from update That's and guess has helpful. or give timeline the of staying the I an PMA how second from five the on kind the third-parties. And second – generally if interest you one been the how penetration parts? four an talk of side, And the on the kind is

Joe Adams

Yes.

So first is level interest on part, high. the the very

lot couple have airlines a phone. mainly the on of ordered of feedback feedback on the phone, have it, that frankly We

interest couple have lot airline going because delayed it it. of on. lot of is think flying installed not bit it actually the a We airlines of there's one a and is shoppers have a penetration big I it's and a further in, ordered And

burning it airlines, I mentioned, off time. most as green are is So

doing So of they're lot overhauls. major not a

expect. also until lot be able waiting to are second which the a part to with up. that So they're it of And airlines pair builds we waiting

As that first. the I hopefully to the would said have final in approval and that's with which FAA imply year-end submission September

late of early parts. expected additional batch for The parts second three is those XXXX or XXXX,

Frank Galanti

I is the And needs. think wanted That kind I then helpful. through last Okay. question to CapEx of walk

So in parent. at part is financing million of your prepared remarks, that going XXX to be Jefferson you'd to upstream the mentioned

million And XXX through want closed. about But of businesses. it next undrawn Jefferson the level plus add be the the is revolver. You've XXX – the mentioned could what million quarters? off where million needs contribution are left the onto equity but for needed needed got you'd aviation. then from at to purchase for various expansion what that this, CapEx just walk CapEx few the the across guess I But of needed was in Transtar on XXX kind FTAI, in And

Joe Adams

and Jefferson by CapEx will this offering. the financed bond all So needs be

Repauno. needed for needed zero Jefferson. zero So for there's need Zero Long Ridge, for

acquisitions, financed, Transtar fully revolver million as you XXX to which So million undrawn those are got closed we the And fund that. of then mentioned, easy. plus XXX is we've do yesterday.

for So no unfunded everything's capital funded. year, are this capital requirements additional there –

Frank Galanti

Thanks That's very helpful. much. great. very Okay,

Joe Adams

Thanks.

Operator

And from [Operator Robert question your James. Dodd Raymond with is Instructions] next

Robert Dodd

excess on question by a by third, said, of Hi its dividend, this guys. separation. A consider obviously taking the you dividend the flashback. a the math, fourth dividend, the that, when you FAD obviously you'd also by right or that covers up certainly of my spin the maybe feels be in the be quarter, before like two, factor Joe, Previously

thoughts well? any on us give separated businesses is still as good of to does you thumb that maybe can a apply that So the – and rule

Joe Adams

with spin, and math if a pretty that in. rule factor coincident Yes, thumb is in, is and of it's that we'll we your yes, it sort when good will good and build of a

Robert Dodd

can Okay. Got that. if unrelated it. more Thank to you. One I

in time, Which all market. can pre-pandemic car basically rates? back time. we nature mean, to lack leasing lease down to that think airlines at happened of about talked levels, burning – same green rental you do but are You the the term, see the I that a meaningful better what there's upside

continue engines. run down moves portfolio you while got down a your material eventually pricing lease do uptick think – of run you time pricing? available favor significantly, risk airlines If your to If green you've in in there's a

Joe Adams

Yes, we that all have been along. saying

first we so of year, quarter that think there's this will fourth year, supply. next demand of by And outstrip quarter the

we go a companies, car from day. $XX can't charging rental unlike Now

will – we around done and historically airlines get most just The terms maintenance and better to rent. better, longer all sensitive what just is very, So likely, reserves very deals. get rent higher we've

going make a find money to want of you'll it advantage to So to, don't you're the if and building take on and or you later. full you parts continuing other your you maintenance a you're doing business, more pay want relationship, to try becomes for ways to program, because side and position do don't that

at on and bit, paying little a but not go is there if you're everyone be give rented to is – a them going else month, flexible a it's not $XX,XXX to XX. you're it, deal So going

XX, month and maintenance and get them a of deal to So may but get be might XX instead you you'll reserves – you tweak deal, you get three-year a make higher.

Robert Dodd

it. I Thank Got that. you. appreciate

Operator

turn this Andreini no will closing are There remarks. for Alan I back now it time. at to questions further

Alan Andreini

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

Operator

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

now may You disconnect.

FTAI Aviation (FTAI) 29 Jul 212021 Q2 Earnings call transcript