Thanks, Great. everyone. Shari. morning, Good
And ahead want have the a go for some provide color I effect up items earnings line two large to had your then XXXX. on said, Shari and that can open As we our in positive on questions.
concerns So And higher expect America’s that’s maintenance to trend X% million to increase the the X% by $X about net into North Rail we maintenance XXXX. million, net versus coming expense. one $XX first XXXX, a
was the leases new network lower maintenance has that pre-COVID. in a more mean the traditionally expense So in percentage By American our on we the expected prepare them and/or main to churn, increase expiring the in churn was for cars reserve results being this North to met market, commercial of to renewal utilized expired ongoing the fleet, driver commercial we that the that keep signed and weakness in that it. maintenance the success fleet new more rail often customers given customers cars
through COVID-XX. exacerbated have the been we has we as higher the this by churn move obviously and churn fall-off So as XXXX, seen commercial predicted, of
if was percentage a In ago. points year renewal success you a third XX.X% full our fact, quarter, XX into that’s than lower look
maintenance has to flat So remained however, year-to-date, net XXXX. expense
them good. So there for a this is of most reasons number performance, favorable of
counterintuitive, little touch One of them, reasons. me a on relevant but let those perhaps
more one, and third-party as of the network to done successful XXXX, the we amount repairs versus become through our in continue own move we increasing shafts. first the So
superior. before, goal all work are as believe you’ve So safety, quality our talk the the the delivery the That’s we shops. is moving own where heard about this much us a maintenance practical of this and cost, metrics into have we
the our tank close example of XX% and set made, work of our XX% at alone, all through the of of own car an run as look network. we progress third to you up if cars quarter we So the
repair tends increasing drive down the to volume steadily network. So cost own our unit that in
We’re continue this to to going on initiative. push
one efficiency actually, our across The to make increasing second bill that and of amount. systems network and the done ability in we the processes the internal charge they and we sure our work and cars to collect that consistent type proper of is can work improve continue is consistently similar when for that our
reach these the there have been alluded yet. in achieved quite complete I’ve before, not when plateau, down this our or will but last Now we’re year initiatives driving the it to two. a we Obviously, across network, uniformity cost have
to down little railroad bit than directed year-over-year. can a they areas, But And that the commercial a our counterintuitive XXXX. unpredictable expectations. the on sometimes always maintenance and said, expense lastly, cost are fleet as versus it attention perhaps appears Third, the side, the fact so the lower is churn decrease other expense that manpower into appears repairs, maintenance then anticipated railroads to be the as is and I in to coming
customers. rather maintenance that is cases customers incur But decision just cars, XXXX, cars scrap So market economic actually I to earlier. contradicting the prepare some for when where a there in expense enough older to the then, at made than that we’ve have been return them our least what new weak said little
provide or lease new do return not say investment being that? do to on lease We in So we do a enough why profitable simply an maintenance.
most is of our fleet, you as the is fleet. relative older common to boxcar cars rest this quite especially on So our which and old know the
able maintenance scrapping plan we example, coming weakened the it being on when the COVID came on incurred because lease. new into market for expense up boxcars, attract to they year, cars So target off leases. further sign to due the ended and we older to we anticipate and Instead, be
future versus So earnings XXXX. years. a that and But downside have plan that there expense expectations is that boxcar removed reduced to maintenance in from
we So that can in the maintenance expense of spending But nevertheless, will by lower and trend that’s actually quarter encouraged best probably I our why and performance little misleading. beyond. think the example I’m a maintenance really continue be fourth reduced
the touch business, residual quickly this the variety this gain been of but topic with now a is forms. we on finance highlighted in partnership on said, in large leasing release Shari realized wanted sale second and Rolls-Royce. has press We RRPF, at The I gains that’s frequently to as
inventory of leases down end slow at older second third and older parties and and engines probably excess So parts, have the released been sold maintenance past. in we have lease income, to reserves the on engines
operating difficult exposure, rail, to similar Again in was customer to you can exposure, exposure, So not can engines, explain current that market the that mask large it quite I and liquid. and it schedule for unique business. renewal all secondary both let optimize though and quarter, in in American North the otherwise it’s equipment want what you manage environment
world, both said engines the So to past are also directly airline that the around leased can Rolls RRPF, consist that leased back generally are in so the engines but to that Rolls-Royce, as coming TotalCare we and were in portfolio million Rolls-Royce them approximately leased debt of $XXX of a use this refinancing In program. for support there XXXX engines to particular instance, in due their large group of XXXX. was was customers
air-related So have pretty businesses. dramatically obviously, for increased refinancing rates
restructure case, sense lease. long-term So make new to current to this into the a it lease in Rolls-Royce
at the the to than majority and these related a attached the So of pay use to many investors of engines credit rather down proceeds spread. third-party higher then leases refinancing with a vast debt,
a number a goals for pre-COVID probably the of was the we’ve JV. on the to diluted risk, reflective our reduced from the share value addresses more Rolls-Royce So once reduced sale realized in generated exposure risk, of equipment $X.XX a environment. again outstanding refinancing But lowered even that per quarter We’ve some actually and the value, of gain JV.
a reflect the call to longer the term. it the to value near transaction similar wanted it unlikely engine the role because at future, portfolio out, that’s but does engines, a least in embedded happen on in So
up explain these Operator, can the that So and ahead to third quarter in I helps hope we it standout now. earnings. few go open items questions of
