VSE (VSEC) 9 Mar 232022 Q4 Earnings call transcript

Good morning. And welcome to the VSE Corporation Fourth Quarter Results Conference Call. At this time, all participants are in listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded.

turn Relations. over to Noel your like Investor Ryan, now the to conference host, I’d ahead, go Please sir.

today and And you we Fourth Financial sharing Conference call today Quarter accordingly. you. Officer, to XXXX our Thank welcome presentation our Results follow Call. to Steve Griffin. is Leading along we and on John encourage Cuomo; CEO, VSE The Corporation's are Chief President are the and website,

significantly expectations. contains those forward-looking future Actual SEC. risks the statements today's periodic results the statements projected from financial filed our reports forward-looking risks differ discussion in Today's and various business may described about to in with and including due uncertainties,

Except our as obligation no law, to undertake forward-looking required update by we statements.

appropriate available, reconciliations presentation where conclusion in progress, are prepared into our noted. is incorporated which today's questions. GAAP year-over-year the financial the line website. financial using discussion presentation. We non-GAAP All where are except for At on measures remarks, open posted our in to percentages we will our refer The of our

I his would for call to the over like turn to Cuomo that, remarks. John prepared with And

we one Thank VSE was advanced today. history. record year a milestone transformation you Welcome in and our in and strategy. delivered which where business joining we XXXX our multiyear defining One results everyone, you, for Noel. call company thank effectively

program new million invest future offerings. celebrated new revenue distribution products and During Also, to culture. leading and and company contributions. upgrade the talented company in year MRO upgraded year, a with our to in most service we Nasdaq continue support with team our We XXXX, We businesses scalability than executed both and facilities our to our and capability proud we new IT importantly, in and drive as with in listed our industry XXth and portfolio profit strong $XXX we systems market growth. for awarded invested new customer service added business and We leading new awards were to more wins.

I'm and of Fleet VSE in the our year XXXX year-over-year this segments. team growth revenue all record profit both proud full of significant and for incredibly and Aviation culminated in revenue

slide of by Let's growth We year or adjusted presentation. now year-over-year of full million in highlighted $XXX growth XXXX income. XX% XX% X conference and advance call revenue results delivered EBITDA adjusted growth in of our to XX% net record with

EBITDA segment XXX a more Aviation segment million year. of segment XXX% or given in favorable prior record EBITDA mix basis and repair year. and of outstanding by by of growth balanced total million prior the company adjusted increased prior an with year-over-year adjusted over year, the XX% channels. increased year $XXX revenue. distribution and to points Our aviation customers up posted MRO versus and XX% margin EBITDA Adjusted EBITDA general revenues XX.X% Aviation $XX both segment both Aviation adjusted XX% over revenue the business supported XXXX higher growth across margin segment for commercial represented versus

of adjusted fulfillment $XXX customers. compared revenue achieved also segment now increased driven by e-commerce strategy. within commercial diversification to a year-over-year EBITDA results record XXXX. a growth increased XXXX, segment on segment Commercial on million successful total of represents basis. year-on-year basis our revenue. Fleet customer XX% and revenue to Segment Our XX% testimony and Fleet segment in revenue fleet XX% X% A fleet increased

US both by commercial Postal growth from The fleet EBITDA improvement the Service. and contributions was supported

$XXX and up prior contributed million Federal Defense X% segment our Finally, over year. revenue, of

expirations. along Defense in performance Federal offset by Aviation due cost and a the and from shift was price decline with Our strong Fleet to continued primarily contracts EBITDA, adjusted to partially fixed contract in plus

and excellence drove commercial and earnings summary, growth in operational new record In revenue XXXX.

We programs. revenue, fourth slide our EBITDA of key sustainable on made quarter. strategic building on Let's progress our priorities in the optimizing quarter update to Xfor growth steady fourth legacy turn each and

revenue. engine markets. while fuel and First, leading distribution higher building and recently Precision Fuel positioning technical MRO new expands VSE in Components, us provider MRO capabilities capitalize general This acquired and transaction specialty a aviation sustainable systems on accessories rotorcraft We service supporting Aviation's growth business opportunities. for and the business to margin

and During segment parts e-commerce our for area Fleet quarter, new increase and opened distribution the aftermarket in Tennessee to the delivery. the a center fulfillment Memphis, quality speed service

This This new demand implementation new warehouse support systems. for management the fulfillment successful commercial fleet investment future growing present our and of ERP facility the will and e-commerce and includes customers.

in in more We have for contribute begun to segment $XX the new million sales to facility than XXXX. product ship fleet this and expect

to our pending in are to new segment. we business an our in our Defense leadership and $X.X new XX% resulted pipeline efforts teams expanded total growth now award. strategies Finally, and of implementing Federal ensure The business and development sustainable in increase in bids of submitted billion long-term

Our next strategic priority is growing profit.

versus Our by by fourth period. the than prior distribution aviation prior Postal channels. fourth Service. total MRO segment also EBITDA sales XX% Aviation and the three general year adjusted increase revenue in balanced The growth years. X% EBITDA XXX% the Aviation and delivered In from performance both represented stable quarter. highest million both EBITDA adjusted adjusted Aviation driven versus margin in adjusted the was commercial growth the EBITDA the and customers in segment commercial the an and in grew contributions Supported quarter The increase period. quarter, business segment fourth segment quarter the more of across of Fleet in US or resulted XX% $XX.X and

Our third legacy strategic programs. is priority optimizing

of agreement. previously distribution During our the year fourth quarter, Pratt Whitney our & deliveries the Aviation expansion segment commenced on XX Canada announced

types. customers, vehicle USPS parts performance including region. to Asia and business exchange solid this agreement, spare general our supporting experienced of operators and aviation now providers provides VSE Aviation product USPS support engine part in the engine and for continued The of offerings also the legacy maintenance segment from expanded accessories program customer, Fleet expansion As Pacific all

continues technical bridge support funded Defense on extension follow our a military support has $XXX on million. in Systems with of we received contract. excess segment month a which and week, Federal Sea six existing foreign to or backlog Naval sales the Last NAVSEA effectively Our Command,

ahead, we final quarter a related year five agreement. to renewal await second Looking award of a this determination

three XXXX we expansion ago years revenue and and redefined and margin supports the both propositions validates into in record business go-to-market that our for The and value today the summary, strategies. future. In VSE opportunities exist

turn performance. the will financial to detailed now a review our I call Steve for over of

revenue in aviation new contributions fleet and by and services. Service. end lower, partially by US growth driven of The X and Thanks, of slides and to conference fourth segment of provide markets. John. overview and call I capped modestly of and e-commerce distribution from $XXX awards, an and increase many Aviation Postal performance. sales from driven versus commercial X of recorded record a of Defense quarter general the programs, year million now MRO ongoing continued certain US of foreign year Fleet was completion quarter was fulfillment quarter by of recovery Army of strength business military turn by the new activities higher and US will of We businesses. commercial growth strong records XXXX an revenue, supported aftermarket the the full XX% Navy with for specifically prior fourth period. growth year materials the another our together to support our organic execution was Federal in contracts recorded offset

to flow We EBITDA cash XX% and adjusted an interest Fourth continue hikes higher increase income, Reserve generated the for throughout in million rate quarter. expense anticipate interest driven by measurements. than of $XX.X this and expense of adjusted timing both million We net quarter XXXX. $X.X was respectively, and Federal anticipated, of recent the higher

year an increase by segment. of was in XX% adjusted an aviation adjusted over and full year the $XX of versus segment of in $XXX but million the versus we revenue, of new income the business. Aviation drove Defense offset For driven XXXX. $XXX Total million, driven recorded and adjusted to growth XXXX, for million, EBITDA million by versus million increase XX% Federal growth net declines primarily in and segments, $XX XXXX, helped business EBITDA XX% $XX all the up was XXXX,

combination we'll MRO slide grew XX% Revenue Aviation flight by prior respectively. MRO levels. it new XX%, benefited growth XX% the as commercial to $XXX driven to towards and a market business activity segment activity. record by increased end higher of and the a turning businesses was continues Now pre-pandemic year million. up Distribution period and distribution cover to X, results. versus Both track

quarter, behind increased while level levels Our adjusted to remained EBITDA the margins in commercial by XX.X%, pre-pandemic trends. adjusted Aviation line highest increased market EBITDA basis MRO XXXX. in their XXX% since points overall XXX by X% the with

Total adjusted basis full the up million XXX For MRO points year distribution of record led acquisition million new year, $XX and XXXX, activity. adjusted in XXXX. for were of investments in generated EBITDA the programs, revenue XXX%, by the up $XXX XX.X%, increases margins and from versus Aviation global parts full contributions was EBITDA organic

the Within associated the Fuel we recovery. and to business of grow commercial margins anticipate driven Components general and We between anticipate XX% between markets. of MRO mix year-over-year, EBITDA recovery, by material anticipate do We balance announced Aviation new XX% expected adjusted driven a by acquisition with a not stabilization impacts recent market and XX%, earlier execution commercial year. segment, and Precision end this of activities X% and program revenue aviation

margins Total higher new prior customers. government fourth as period, versus Now versus which basis for were Tennessee fourth other revenues is the the commercial to primarily US revenue $X.X revenue. turning of XXXX the by quarter increase our increased $XX.X in EBITDA increased fourth a Segment of to Memphis, commercial of versus revenues e-commerce result up $XXX,XXX offerings Center Service year, quarter, within support. X% slide X. period. included in were continues commercial XX Excellence. the as solutions scale and year Adjusted Fleet and quarter, year of sales of last expenses X% versus the fulfillment XX% segment for of EBITDA adjusted the an quarter Postal e-commerce prelaunch points X% the Fleet prior declined million million driven

revenue full record time. the segment revenue. highlights generated Adjusted for X%, represents to XX% Commercial in $XXX continue revenue EBITDA increase full of million of and total with now profitability For the opportunity year in first million, up Fleet up the XXXX. million from revenue, XXXX, was diversifying $XXX segment over XX% $XX commercial while year to for the

contributions lower revenue from XX% growth anticipate revenues. year-over-year US Tennessee of facility primarily commercial launch, XXXX, offset Looking Postal the recent as to the Memphis, we XX% from to service revenues, modestly

XX%. adjusted rate XX% and in and anticipate an for production half range ramp to see quarter the the the expect than facility we We of as margins EBITDA new modestly towards second lower expect between We stabilization stated first XXXX. that

to US prior segment X. year-over-year. the basis operations quarter a Defense decreased to XXX a $XXX,XXX price, Adjusted in associated or offset points versus of specific Now of X% a adjusted in growth In the XX% contract and with services X.X%, down plus EBITDA of contract revenue the third not due Federal Army non-DoD turning by US year-over-year that strategy. mix as of contracts margins to contract Federal aftermarket the of the slide driven foreign period considered cost the declined on EBITDA contract $X.X completion completions. declines million Navy effects Defense loss quarter, indicative is with basis of we and recorded year business completions. fixed customer and a was ongoing

we There are any further program and this with associated obligations impacts. anticipate not no continuing do

was up our Defense result US declined represent full the primarily Bahrain X% which a to contracts, year-over-year transfer Royal XX% Adjusted Federal Navy million in due Force. XX% year-over-year up $XXX a as of to of revenue the a XX% vessel of XX% increased to Naval XXXX. the revenue, as cost For year, which result from more million program, total $XX.X to shift a segment plus EBITDA to and

beyond. decline As to and vessel and drive US resources and that between transfer, nonrepeating development and the and continue Federal of to anticipate business will adjusted invest X% XXXX a revenue in the for in XXXX growth a new XXXX X% EBITDA Defense as of incremental business margin result in we Navy capabilities XX% X% an we

Turning the execution in facility. awards. commitment under unused fourth recent primarily cash cash flow had in XX, by successful We the end of and distribution $XXX aviation million revenue at quarter, to and slide $XXX driven million the generated we our of of quarter, the million $X.X growth availability credit free

year, and the previously free For includes the quarter investments, million million from existing as accessories Aviation of end $XX total Pacific leverage expansion XX quarter, down than of and $XXX down at We region to months, $X.X XXXX. cash million year the engine used inventory program. quarter, for X.Xx Pratt million. flow, the of support the of VSE from modestly trailing outstanding in end had debt leverage was full $XX our & adjusted XXXX. the Net Asia third the of we the net of anticipate net fourth EBITDA fourth we Whitney of which At to yearend X.Xx yearend Canada end higher XXXX, announced XXXX into X.Xx

to on two plan. million, a We which already. However, closer strong Memphis the to acquisition and we execute fleet we the working started it XXXX opening, in Aviation second fourth quarter of positioned XXXX support expect both was a facility $XX and and during new these investments make to quarter, are the the spent increase $XX combined still and Asia Whitney third operating in capital that as aviation be We our for investments facility key well Xx Fleet to with will Pratt we million anticipate the expansion. total initial remaining

Operator, we portion now for the question-and-answer ready call. our of are

Instructions] [Operator

question The Herbert we from Ken RBC. first from have is

Hi, and do morning, maybe do Steve where with This the the to conservatism the any you of see the good is morning, see you actually guide, year, within segments? most Kent regard this with John. upside guidance most Herbert. [inaudible] where for Steve. the Good Starting

is I think pretty what do to this as we've the given businesses the guidance we expect year. to accurate

we will top is the recovery, at Asia The business drive as three one pretty continued we which believe of as line, to some we've of market solid. As new our Aviation end each well execution business, look the got contract Pratt which commercial help segments.

And we As launch drive of expect commercial to really improvement we USPS facility good business us modestly of to of revenue. some Fleet business, that's we're see a see Memphis is towards as modestly is for the some total that expecting in predict, in expect, the as revenues terms always, commercial the to revenue. business side segment, look lot most do in a expect difficult growth we recent will lower the the but our you'd new lower

expect as line large across is to Federal And on vessel expect very happened well we're what growth the has we board, total the transfer revenue the in XXXX basis, then focused business, I'd line sure the making by with sustainable driven contract during year-over-year that primarily completions. that a as But the down on and one XXXX, into that mentioned headed we trajectory to time be top guidance business out a in beyond. But we'd say see. some

Yes, back a I conservatism think of the there's level Federal. and of with end would the Aviation be year at

think Fleet we've very about I our transparent been contributions the from warehouse. our business, new

will there's I we question we think for of QX will win XXXX. the back end, would say there. how new The what of back and I we and business. look win at Aviation for versus QX, know we much year upside when in some will Federal, that contribute the the opportunity is, And end

provide an term to more. I and Kind contract? That's a you place? expect contract of Can Defense great. when update have kind one NAVSEA Federal could on long you if just then in And the

in contract, this year. Sure. the expires early The Bridge August contract of

of through Our of is end valid year. the pricing on this recompete the May

we do with bit of the and notice and on we So the update in more business. a Defense share award Federal notice then little segment that strategic second an anticipate clarity quarter will a on post

Austin Peter have from we Truist question is from next The Securities.

our Ciarmoli questions. on Good Thanks morning. for I'm this for Mike morning. taking

was or call coming the cost the a just just mix So expecting in are XQ pressure out of an the than were the any there that input just was expecting first, margins you're fourth given XXXX, quarters. your you're quarter on I what pressures bit outlier, you'd aviation higher for product that in wanted margins to the ask segment, wondering,

COVID for we as business to more a help very the as bit Yes, the see, of we to quarter, and pre- returning aviation level we in to XXXX, to see When recovery results, in saw stabilization strong can past. the continue of kind side. in business the fourth general mid-teens commercial we've you opportunity the in explained the look that

And cost like side more the as half this I extent of very input total to of than think we back into year. stabilize to to business general last a our look dynamic, we at being to start it as some segment an of range. in the XX% as aviation a expect rather see, we bit you of being and year So therefore that look see and guide, XX% more the robust to

business the can we as quarter-to-quarter, go very in pleased results the but I quarter. the think with we're fourth vary very,

you have wanted And or Thanks. ask, the need And issues follow are are you on coming sense. headcount to makes any then to experiencing attrition? as that you a labor? with elevated in just up, you significant how productivity Do add any That year?

the there's to of we a challenge. a in always say Technical aviation I'd continue stabilization No, labor markets. level in manage is challenge that and

new We running facility brand that in the We've and got up. new we're have well. systems, a ERP very they're standing Memphis

product shipping out. are We

are staffing ready which to of there's about I what say anything we We year, wouldn't million that scale generate we've previously norm the material out team will that communicated. the $XX end other new of still than revenue. up of get as or back for But

from Blair. next William Louie DiPalma question have we The from is

your Thanks. showed Steve, Should morning. you do And new in partnerships. operating the long and with you growth? your margin the you've all because Aviation, margin added scale for that Good just the pre-pandemic of balance great how exceed of leverage. VSE general, level term the

rate would mid-teens is term, our question, for business. Great long Louie. I margin this say would say expectation we

go operated. back at is about right pre-COVID, to XX% you If they where

very to you of even quarter, the can though see size double it of fourth you used be. I look business the that is that it's what think doing if capable at this

we've rates at at margin new added the we've has the least that all business that pre-COVID. been So been

So are as it on long be that term, all higher comes rate we And synergy think continue might we complementary, very go we scale, down execution margin provide opportunity or absolutely at long existing the is to and opportunities. There And look we as to the they're margins businesses the business. to than that. in scale mid-teens as to higher feel the that driving acquire that run. expectation we

point, and very we its about pleased excited So and forward at I with are think we're ‘XX beyond. this performance driving it very, in and ‘XX

Canada for XXXX, John Whitney for And that expected Asia right Is contribution Steve. be happening Thanks, is already now? or the revenue the to in Pratt and Great. main expansion.

It's It's the Americas had than starting to mostly of, complexity we're out because happen now. ramp in working the slower a of we and of Australia. Singapore just

So to see of ramp start quarter the this second it more year. in you'll

Great. been they at those modest extensions last have or expansions you October announced conference, And How and with also may partnerships, NBAA Embraer. are Bombardier the progressing? deals distribution and

so I that been that program, focused of much parts global very bit Steve, Yes, a which existing Global, of mean, we've our And outperform which on. really was in cornerstone we to business, a to was is to want business. that little is a really important renewal agreement? you business. the related our obviously It the Bombardier growth our about part of forecast share able internal that that

done Bombardier, a of of acquisition, mean, standalone to all XX%, ‘XX, execution with the think ‘XX. Global came to basis the grew the over But just that because that Yes, you're those from well how in ‘XX relationships I the I was business. on in which some with were obviously, and highlights Parts a great Not of relation they've agreements they referencing. separate our numbers, teams

or that you major very very of the years has past The of for seeing a Are and aviation one. last the for been was a terms one it's And in OEMs, for two market signs slowdown hot segment? in strong any Great. contributor you. been obviously business bookings

market it's that definitely say we're a you question, what's kind about market. read Yes, of of is more the and a bit great there's seeing because little I'd happening mixed data. stabilization in of what

at our single most data market I would for rate. XXXX. digit business think more we the that last not call were looking rate high saw growth shared growth we expect, of had mid-single of on that was I forecasting that digit So We in we

that's So of of a little and a bit price bit little volume.

XXXX definitely for less get So a still the growth we business. business for market see on it seeing aggressive but our and aviation year general as as growth,

is from from Next question Austin have we Moeller Canaccord.

Good Steve. John Hi. and morning,

is you year? even the that the you robust for demand about do question still margin think it MRO we half my the do How just remain think there into in with So go the second will pent-up just given recession airlines. repair a is distribution parts services, the than if airlines is of much higher and

is in And business I think work last with it's up I a question everyone that think my continued the drawing our year. Yes, happened. that recovery but over continued our expecting from increase. from everyone expecting inputs COVID spike the was and was month great month what on perspective, commercial hand, We of as to I'm on we've share repair just through the to saw end demand

And have. look airlines as they They is than markets. than of to seeing impacts major And more believe than we you have and have kind remember, our that less want the they of is do domestic to even if travel, have. we pilots want growing XXXX. at less are We summer we're stable their to of that at going if international. recessionary look of that most see airplanes they start regardless We you that believe business to

recessionary some and at impact, even our difference seeing is we're a if and major PKs capacity totality. premium, not kind pullback a So a is slight from of anticipating there in

over great So, And and again, yes, capacity it's because and month as us well. to staff is allowing improvement. we're still month which seeing manage gradual, it's our nice the

ramp your already inventory the this to the to the needed Memphis. Okay, debt guess cash then I remarks, you you're in I in on and think balance confident but and touched support

are. we Yes,

in & of our used million fourth $XX As Whitney cash flow. $X by, as quarter, fourth the Asia that of inventory a you did million $X million the acquire year. expansion. in free Most Canada Pratt We we we of was part generated quarter can see, of about in driven

for the ended year was in to time ability very pleased the as communicated. X.Xx Last we're with So at this net improve we the had year leverage with business. at the us line of X.Xx. We

Now, to leverage the facilities. two we year, we do to look working bring required as increase we net towards expect the on as this capital that launch

to the cash So the with the use and with how second here see expect us to the demand in back first some very facility should feel you we similar two. the very the year done quarter last improvements credit in we've that in profile. current opportunities comfortable or But half as as well exist

we've So Memphis to continue trace new quarter, $X million these we what facility. Ten in spent is capital in in use for Pacific both of to last CapEx with the about it the in which quarter. fourth being Asia Pratt program working line communicated that of will the the launch already and businesses and totality,

so return fourth generation Austin, long And, very quickly, That to that and quickly. not remember, Memphis. you're scale that see inventory it's going to you're the pretty the cash third once start to turn By a will see happen really out move to on quarter, and of we inventory start the to start shipments investment. going

well the fast in for impact, the margin really so decline it's beginning just because really an all that's that as back and into year, facility, growth both as of in inventory done that both expense an perspective. of was track. on perspective terms of a the from we're business in It's a return organically right a operating cash the So fleet the business blip, investment and on will that us opportunity putting get great for

to I fly see the inventory the Great. shelves. wait you. can't off Thank

out. in. go to it it Me wait can't too. seen I've I see come

B. have is Riley. Sinderen The next from Jeff question from we Van

Hi, everyone.

Memphis on do you then just you Realize of also maybe from touch Just for stood left efficiency facility. Memphis that maybe can the benefits is term that just long facility. and wanted up outlook but remind the follow to to optimize up, at us the what on to

We years commercial business I if diversification when the about had I've I in customers on amount a and we when now. launched our business, been this we've Yes, And focus commercial four looked with the commercial really to of you customer e-commerce mean launched said customers. so started. we got back, it. business concentration through with tremendous Remember, business

that of organically. revenue we have So years all year, million of capacity very it to were look at We ago, in we we it, Memphis demand XXXX, you finished what that four a nominal of the well, out revenue is knew channel We the if done very, set back this that the $XXX was. at facility. where point support up was which didn't why channel,

will up build a know We support commercial of that that that can this disruption percentage that warehouse we that And as SG&A $XX million system, And there's in to the to revenue new perfect site. coming generate of additional order can we launched scalable drive lower demand site capacity an to new and over of that ERP facility which system. growth, of standing So time. it, along with we sales we market further again out also further do future a year. out management growth that know do but gives also that and this us the

So February, that as that's walk And out each taking we're our what scaling of we We're can to that did about crawl slowly off to like perfect of just we record were only orders enough run day as a it's be model. March or that each number week, perfect. we in talking we January, kicked starting And want approach we to taking that a site. as site ship because shipping be it of customers to methodical we're we're lines out scale.

a ways I went It's and optimize, obviously, out there. picked to great you system with but order new ERP impact myself So find any system and training.

investment. controls that the place on And trained drive get and system order to on we very orders accuracy feel can bullish timeliness quickly. of in lot well. as of You A

USPS hear. Okay, we the touch then business for And to minute, part a of on the fleet great to wanted just if could.

Just wondering what's tough that. Realize predict. based guidance for to it's in yours

may begin got anticipate new We end legacy be the do to USPS, we assumption vehicles business. as of sort drives some of the the that year. repair down the Yes. modest will slightly. that to declines in next-gen performance business. result, the a And go as expectation top that this portfolio declines do our for at of for an in We've modest line expect That delivered total of our delivery

said, be that quarter-to-quarter, pretty all it's dynamic. to going Now,

So see, the year, quarter up was last was as X% and for the quarter up X%. you year fourth and last just full

a year. to strong had we And start the

expect in quarter-to-quarter. going to it's modest primarily the do more those be Yes, declines dynamic back the we of year. But half

in just more. could I squeeze one if And Okay.

pace of kind of latest valuation metrics on terms getting to bit kind availability as little the if slow leverage Just your on might any pipeline? that the if just of aviation. in targets, acquisitions. in Maybe attractiveness you're the down of going deals. we're acquisitions mid-year, some if you're seeing, Wondering of The larger a wondering seeing comments up the could of potential of touch you the

talk kind Yes. get publicly are are we've of deals We of We $XX tuck-in manage pipelines. then believe sub for got two potentially aerospace give that positioned of quality of marketed. publicly because we're potentially closure very this sponsors capacity us, believe, is core that have us do EBITDA, And to kind in traded we deals or can our are at EBITDA of deals. in I that market, lower mid-teens. pipeline. assets about our certainty a million this advantage the than at when believe to deals million so We those robust are high you that multiple under historic publicly than got of deals of stronger deals. we in those a kind less look usually smaller, And We've got to let's larger mean, $X just And the done We've an of current that aftermarket $X marketed. more publicly that as million kind market. facilities kind multiples. are company, trade well marketed,

you and capacity through fund continue continue at a maybe wouldn't exit potential current potential we won't funded about assets it see us robust only the feel well look the and but to So facility, to to very got be in things as in slowdown our that pipeline, we've that non-core the front. as we well, facility, that help

is Sullivan The from Joshua Benchmark have final question Company. the we from

morning. Good Hey.

incremental. looking How $XX facility many do Memphis customers have? greater on XX% Can the than the at provide you you you composition? insight some think just customer that On million ultimately

we goes at some that which tail too so so customers that look channels to like is people's users. think Pretty system, tail if partners long their you long We've supporting, of or of e-commerce that got through fleet business end channels other end users, own our e-commerce much of zero. we're through e-commerce to support, direct

going about at demand, it's have that's not you're when So have the level. we is a large and tail. tail, e-commerce look of user of about this inventory. at funnel concentration true that We it. and is the who partners That's end some see why do where to just kind the But optimizing business website their that this

know I cycle growth two of that kind five to over here the Got trajectory visits one it. what's sales shop just but term, view And bizjet look next then the term of your like? longer general on years? talking the and Aviation immediate of what you're does segment, the for in about aviation

Yes.

bit you a market look less for is market. So stable on and two, boom aircraft is a XXXX, or in have are of operations I mid a number on of stable for through The bases depending reasons. at I've Number a you truly there the running that XXXX, cycle out mid-tier major XXXX years one, robust OEM. larger back you have kind industry sold it's business of been and Number that the or and stabilized the out general of with more because players customers. it started in XXs bust XX if market was that interesting little in market, when aviation, and the was

still So market, lowest the is in relatively at used in speaking, the aircraft history. some of levels

So digit stable as Absolutely. think we Do pretty I growth? low look I be to and will going we digit at No. single is at it the be coupled market. double look that growth? stable together, a it think to Do market

And as one release choke in seeing then just last supply it. distribution you on as Got the this aviation, far points at one point? or what are chain side

They're has issues like. It's the at material really that or one one issues OEM either either really mixed. or or It's factory labor interesting.

say I world, we're seeing like, in a a not in our trend. we're seeing So not wouldn't consistency

the materially for I in manufacturers now same The is revenue caveat any more that's us, the right our than improvement new not it's we customer one inventory that six position to sometimes we our gotten I'd of not OEMs of why both. And production, as seen want pick up So would of any base our support always or of say take thing But last it's we've an worse. months customers. little better a it's start impacting because the for bit aftermarket service. stronger to building are that

would over Cuomo you. Thank remarks. John sir. the like turn now I back we have closing our of Please Ladies to the gentlemen, to ahead, end go for question-and-answer reached session. and call

Thanks, Have segment, both our Fleet our our and to in call the continuing our forward joining very strategic to updates records of proud strong great for great as We're performance financial ahead. look year report a everybody, results, today. on some and Aviation XXXX day. as both in well

Thank you, conference. that for gentlemen, us. you joining Thank then concludes sir. Ladies and today's

You lines. your disconnect may now