GATX (GATX) 21 Jul 222022 Q2 Earnings call transcript

Good day, ladies and gentlemen, and welcome to the GATX 2022 Second Quarter Conference Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Shari Hellerman, Head of Investor Relations. Please go ahead, ma'am.

Thank you, Kyle. you GATX's thank earnings second and call. morning, for XXXX joining quarter Good by and Executive Lyons, Executive joined America. Bob I'm today President, President Rail and and and Vice CFO; CEO; Paul President Titterton, Vice of North President Ellman, Tom of that you'll information will some discussion hear statements. of forward-looking Please our today the note during consist Actual forecasts. trends differ from materially could or results those or statements

and that release results per Form to impact diluted $X.XX The share negative tax diluted information, risk factors and no include associated related remainder XXXX million earnings net $X.XX please quarter XX-K million been $X.XX marine our core GATX's of in results refer business an or quarter sell diluted $X.XX impairment assumes $XX.X the items. our the of and a diluted The other or with the diluted and more an filings earnings diluted discussed to share For net per in second sold those the of share diluted our had that GATX legacy other the and at in associated for included to items. These $XX a SEC. obligation results $X.XX per subsequent diluted results of per to update or impact The decision end net our XX adjustments to net $X.X not vessels. of reported million revise years million today or other detailed income operations. share negative or share. any of small $X.XX forward-looking nearly environmental million reserve impact with per five what XXXX or remediation share. $XX.X quarter $XX.X environmental include statements net The events second to circumstances. XXXX of reflect This million net reported XXXX property of ago. and also a or second income GATX year-to-date second quarter year-to-date from negative also include or impacts related These release. income from tax GATX previously represent items Year-to-date to our In $XX.X year-to-date is $X.X income or million vessels a million quarter per share second XXXX net the with per reserve marks include of we bit $X.X net in site. $X.XX was share. information owned are sale a or per XXXX, negative long adjustments supplemental was $X.XX XXXX, XXXX Earlier

Now was quarter I'll renewal majority an of average briefly reflective renewal address GATX's months. rate for Index of each was renewal at XX.X% utilization car segment. our the of quarter, fleet XX.X%, success our and term fleet. rate demand strong for Rail continued Price change was North Lease within of XX positive America's The the types end XX.X% with

pursuing to this rates on quarter a the lease terms eight from objective. quarter. absolute increased rates in We're lease the For attractive will and extended seeing opportunities increasing on row, in lock prior focus

agreements diverse continue supply new place railcars We've a committed customer We our to successfully Trinity agreement. our from supply from railcars XXXX base. over XXXX placed with

agreement all deliveries All Greenbrier railcars Agreement. our placed been Supply X,XXX placed. have from we Additionally, XXXX XXXX supply for have

we approximately performance Year-to-date, of Management, a repurchased International's expectations GATX as a Europe lease quarter, second Turning XX.X%. the entering end of of rates. repurchase and under remains $XX year. about historic we continue grow consistent renewal for $XX and shares quarter experience available Within the India. variety quarter, million. delivery take remained quarter the GATX second end $XXX At In this second serving authorization. to Europe's fleet At for railcars to our million our in continue cars volume markets International. was Rail was in Portfolio approximately and high investment of increases Rail utilization end, million with to Demand new Rail high, nearly reached the fleet XXX,XXX

Finally, to the noted the the favorable raising our year-to-date as year $X.XX expectation reflecting range earnings XXXX we performance for to and operator, half, and I'll operating remarks. to environment questions. second $X release, tax Those of so full our per in we of are it in any impact adjustments a we back items. our diluted share. can This it the prepared from guidance excludes hand open other were up guidance

take [Operator We question Wells first our Allison from Fargo. Instructions] Poliniak with

push term guess had in mean with the extension conversation mentioned you cycle all bigger a are can out is for Hi, of cars. of the the there the uncertainty the you I back some just at some out or I point need there leases good you or push further term on and where need you think uncertainty the those lack Shari, in potential of morning. given of there,

there? color any Just

I'm American of to are Actually, Paul. this we most car to the It's raise rate across our question. beginning fleet, North the in railcar extend are Allison. successfully certainly, And at are point both terms. where types term. and And we the cycle to take hi, going effort push Yes, supportive

regard is right an and in it's So where we're environment having now. some that possible success that

color where or the point basis but guys what view are the would cars improving terms any rate and relative a off And strong, sequentially cycles, this need of of there? we've be. it. in we obviously, or of then point? Got still normal of the you at on I bit been we normal know you through to LPI a very Just average

of trucks across our are car, long say for the in our vicinity right would expectations sort Yes. now performance. run the now of right fleet that most of We

guys Europe, you just there? impact just standpoint just any certainly from I your interest and International there. market? strong fluctuation there Perfect. particularly you And concern over such But that last, concerns that is then utilization or in an Rail Europe any obviously, know is in could economic

It's Yes, Bob, morning. Allison. good

which there. as at XX.X%, -- were the doing existing the some well. in we've in of been is concerns bit little had for fully there utilized. to the no had So in of indicative of product And idle, which movements, lot of for know, our XX,XXX us uptick we utilization over because seen with fleets Ukraine, pretty it movements, quarter at assets, frankly a commodity think in fleet been and Europe shift base has I a demand Obviously, business the XX particularly railcars so the you war quite terms has so been demand for is that, that difficult end, fulfill

very continue looking opportunities term very even long for over So market very to is we'll see investment attractive despite GATX, the the be overall, volatility. that still there good and attractive, out will

Thank Stephens. question from you. Justin We Long take with our next

Your line is ahead. open. Please go

on At the gave the wanted to beginning pretty year, guidance segment. by you I a the start of So question specific guidance. with

was could in So ask driving higher, swing on just expectations bit little If big give if pretty wanted America and And as there? about in given, we at that? what's you just North changed remarketing those guidance EPS a be a more specifically, it think I can wondering moving to income factor your model? about the color the all also I have

much question, second morning, it to good it's Well, very Justin, the relates actually, first. your Bob,

profit, less reporting our are interest when the selling each I fact outlook things really the of that The really unfolded buying. So we no as macro the we as a no demand. into remains in say, particularly any our rates of planned market because business we're robust we have year. from certain, performing and in very despite see and segment I the changes a one And variable a the in to would both are much market coming when significant, segments are for profit and operationally little from standpoint very the experience maybe is just units standpoint, that material continue secondary is segment we said, ticked up as remarketing, of the strong environment market anticipated

So sides for we of equation and significant assets. we a see see appetite both pretty the

that more The because that advantage second guidance to the we'll that. the really uptick of the of likelihood take behind all we'll in a and driver So, advantage continue of bit little year. in that's is in half take

with Thank We from Cowen. our question you. Matt Elkott take next

open. Your line is

Good morning, thanks, guys.

in Bob -- Just the think recovery or just look under back Paul highest hit to we one I six XQ they where terms gauge the is 'XX, to back at this recovery? now three pan at years. Anyway years lease could when average peak a earlier rate historically, of If out questions we're term. of the this average the gotten Allison's I they've about of quick follow-up

in Good morning, of cycles and It's because same. familiar of that. a now, We with can very is I'll have place. mid-XXXXs Matt. now you're than it's the particular bit predict any there Sure. that more past start, -- kind, jump Paul improvements to no more the in saw and commodity right gradual the little of on no kind early difficult in crude ethanol been It's ever and improvement fundamental took boom cycles. seen boom we've the Right boom a Bob,

important around, But extend quarter the term there you've not to as while is as opportunity extension is ship the maybe past but think kind in number of I to And actual just move next. from note quarter, we're the it's much that. a of in turn sharp the the So one seen to a the cycles. to term doing the not but absolutely so absolutely takes

environment a improvement job of also doing So commercial very rate while is extending term. team lease capitalizing on good

Got There been demand more service. still driver just one kind has recovery -- so another by it. rail been That's is favorable supply Bob. the this has driven of macro service. factors. But to railroads factors know are I helpful, Also sub-optimal scrambling question. improve the demand than

next recovery intermodal go up improve let's year. from on total rates be you moderate? do service subsequently, X% X% would from improved they And lease service put we the growth? assume tailwind think cause So from the pressure next traffic to Do year, and demand being volume in or the including headwind demand to down like rate X% offset by to rail just lease

lot we It's of by a back. a is and holding right of there It's on speaking, rail, a go feel on now that to the that wants This freight by sidelines service really one is Paul lot time the feel We like ultimately here. question. great railroad is spent that way. we

we situations demand where velocity poor and would absolutely, velocity railcars, past had improved. railroad decline see a in we for in So

building and more this hear customers you strong opportunity have prior shipper and the for kind sidelines where also the situations network in not railcar that on to context freight freight we demand. rail in of building we think enough underpin industry is just the was at recovery. saw clip there's result this on velocity And it think improvement I would the you that really our a from think would service to continue we an the add Here, in

that cars network new flooding of lot a is onto there though the are as not is it So either.

overall, a previous context than recovery more So would railcar much been about say, in periods bullish the we we're velocity velocity was might where occurring. recovery market we a in the of have

to a of would customer improves. and I customers too. that's we they Bob we behind rail that us. by with And up it's in on just of want affords product a a Matt, comment not move many service that to opportunity our as lot of customers think, what quarter We our are thousands out, to fact, the could, coming lot Yes. have of handful just cars stands a theory. that the important renew Paul interaction more every may telling Paul point shipper room sitting listen an if us touched a

are you -- player most I And the be in this that down the feel most. guess? would side that's dramatic one probably guys Because you confidence the I So a growth think the intermodal don't improvement on volume it's have guys huge fact you intermodal? despite

in much customer you're about our carload go by I'd also intermodal. We base. that part that do is would shippers And base base very Bob So, from mean we're right, But two it's that things to it's a getting by shippers. the freight customer that say rail, shippers there. wants our talks I feedback relatively is a carload dominated when of invest portfolio. small steel I wheel say, have

network think are do just there, the pick to not if we the network think put We and want intermodal service are so. carload would do So shippers to on the up. more want it's network there that volumes that going to the were on or that get

makes That sense. it. Got

further are in quantify Just maybe one kind your us moderate I and you tell headwind whether what to headwind. for Can question quarter, FX of guess intensify going us much expenses dollar that? final or in expect this can't say the is than the and you international third really on US you

Matt, is this Hi Yes. Tom.

Tom. Hi,

are how Hi, -- important doing? really that's you thing one So,

Good.

One thing that's important -- often local our currency. our both denominated expenses is that to understand in and revenue are

hedge. a have we natural So

hedge also of FX our exposure. a We portion

the may really million or be modest total, less GATX that it's in so. $X relatively So than level

Moving point Sidoti. to Marla Backer with

Please ahead. open. is line go Your

on you back, Thank issues impacting how very the provide of few months the top Can much you. that any will chain right supply obviously how they business a additional of now? be might color very, some mind

railcar Well, still on here taken that's impact some had I'll then the Ukraine. can has Europe you When of at increased backlog around place wheel one lot side, in the component North an price we of it probably some really see And America still Europe, assembling issue really. had component is abated the up cost and But that increases had disruption seems those there still side continuing of push of come others and obviously, answer steel in In componentry that's chain revolves some the that involved and delays a it look its set there give some up. two-pronged, railcars, that, dramatically, business also America. prices biggest really supply chime the to North in one we out the that that costs. pretty And on some of somewhat. in -- gone in. and of the equipment more Steel

Europe, what order Europe overall we we So, to out add being we're the railcars of the it's both and in manageable pushed cars cost if that bit, it's is sourced year. places backlogs railcars for we'll do and time North the we want this adjusting, a absolutely bit a is today are that for are and of still meet our backlog little to expecting terms America in longer but to in so. still expect There equipment, now but terms targets In can higher. market the But elsewhere. is obtain

customers that And uncertain thanks. conversations the you're Okay, compared one prior in caveats this you are any the with cycles? there other discussing terms seen for the to of which economy inflation. protect that or the having for particular rates outlook from they're question place then is themselves interest in given new to and trying of kind things in to or have put into downside Are cycle

at for organizations recognize one names of No. that terms have new customers I say XX of you if in the sophisticated -- customer large top XX GATX is would -- of XX and names they are -- our They no, multiple customer years. been themselves look everyone. on cycles you'd been between base average GATX, through and have

may very So on environments managing businesses they are interest environments, through rates the well of environments, and their and individual cycles versed be rise. where inflationary the and

base, seeing unique logical any all not we're a rational approach. our troubling behavior customer concerning So at among

you. Funds. Thank move We Gabelli question next to Justin Bergner the from with

Your line is open.

going accounting benefit the lower My cleanup your or bit getting first treatment within what are on those earning the side just vessels, than on is earnings second half questions of? new And until or couple a are you side. disposed guide? your into forward line of any formally the on items depreciation impairment write-off other of are This the

Yes.

So, is Justin, Tom. this

the as the you So vessels. the held the assets GATX sell That sell. exit less these and carrying When commitment to you to do require we or at for made sale, held marine decision lower assets to these the the them decision sale. as cost assets classify value sell present to five classify or MBV for of

Once to that's you out are the cease have will until do point you sold. the the as assets decision really So drove that, impairment. depreciation what

not going any would forward. we depreciation So have

compared will lack periods to a relatively it's and of small. depreciation prior when so And be there

Okay.

looking per second like maybe less at something we're So a share or? benefit $X.XX in the than half

the serious vessels first Justin, we there certain behind depreciation, vessels, potentially have yes. if ourselves In been we're years, in the selling off earners demand reason really Materially never number that, even and interest the markets, owned time to the hence vessels less have driving -- we is these than great not increased buyer And for for seen them. those that. force turn extricate for have going in GATX, These universe. actually years. from doing they're of you for from a

that till would few the We we So of exit. course and run the opportune the has last scrap, an it's years. but not up was them picked hold and over assumed case them to activity bit, little a time

we bit. Yes. in on second sell We vessel first And sold the July, just that to Justin, one third a in and little sometime building the expect quarter. the

environmental to that Is clean-up second the cost EPS. just other My that in Okay. in adjusted was fall added your you back the question clarify? segment,

The yes. reserve, environmental

then second up? step expectations. line with there mentioned you up, that quarter Okay, seem your any on just sequential affiliate to share was The of the substantively, the And in from more Portfolio great. color Management step income in

Yes.

the that with on it's lumpiness a in activities. the really affiliates mind large based in that driven Justin, remarketing or key thing to timing from investment is part keep income

expect quarter-to-quarter. that to we move around So

expense like service bit just Okay, see great. the events? you maintenance a of sort Or that events because did housing further And network and/or your then look maintenance came down Was in in of execution the lastly, further your maintenance strong of a sequentially. fewer it improvement utilization?

mixture both actually. It's of a

driven efficiencies event-driven, some but that we're by it's it's also So continued driving.

question next you. Thank Stephens. Justin We Long from our take with

line open. Your is

for Thanks wanted you Could lease got the what sequentially. the thoughts on I quarter disconnected LPI increasing updated on first? full second any comment I the back the for versus provided taking again And about think made the follow-up, earlier. increase absolute circle guidance share saw in to you the I year? But you you rates percent the

that LPI, we fleet. of saw in quarter-over-quarter the is So continued than terms the increase a high prior across potentially. the maybe of in say second at we'd teens guidance and And what was did higher the a in say increase a the we sequential end sequential I'll quarter, smidge the

performance. continued So strong

Okay.

is that think really the asked we've So to I sounds think remarketing in increased reason income. guidance, like back momentum question seen bit upside the lease not model that renewals expecting you think rates through by start it there was continues you I to you that the that in quarters, it by flowing are and I have when peer potential was would amount of quarter. for lease rate the last understand momentum limited as the segment, of on what that have a America much has more Definitely But meaningfully. the changed would I or about couple in North each stall? a But

No. From that, the standpoint, we and beyond as -- fourth the we as would get We're we it we we'll we not the very look in in the into expecting and time Paul first to the of out but fourth expect half revisit back as came stop. the mind, visibility keep mentioned, positive third in and expecting LPI strong years. the quarters. six year, for into LPI the in third a But again quarters year

already of XX%. initial baked to guidance our plus an plus it, So X% had into LPI

at we quarters only looking quarter. incremental plus did then revenue. that, amount over that the it in you're two for So you XX% increase And in get really this

to So it takes build. time

time. around, and we're of carrier fully in that our some to Turning take and the turned -- capitalize takes try a aircraft around on it it. we'll business But it's size, optimize

the most the you've struggle over of feel has on the is just elevated. at you're been valuations years remained couple and that been right opportunities acquisitions. to open in last beyond and the the me haven't for like I clear from one they've spot, last part And Understood. really pretty railcar been that looking

next that start out at that about, be can so, uncertainties changing talk acquisition? the capital you that as confidence you look or could to is all? year economic And towards over deploying your you the Given seem mounting just

Bob, It's answer and Sure. can I that.

fleet that, quasi-bond, challenge lot those investors and So, in will there investors plenty think yield investors operating is some force But looked lot in in we've leasing have the over is of There and X,XXX a -- of element right. of particularly secondary ultimately opportunity call portfolios yes, it's, and taken composition zero of case, we've it to exit. that few the And unattractive. sell of that advantage figure years, with on those business, and And been a market. the we've there. is mere as also rates out the over the it for yes, And the course years. which again the We've anybody it bought has business composition time, a and we warrants the range an be a to it's you This car not called seen viewing are financial been a complicated can't railcars a recent right. railcar of interest last at, of looking we it.

those price and can and the the teaser, So eager you do where its we to a the environment, times that followed because certain we lot buy what's are certainly fleet, car it. efficiently, may that. And them are capital. attractive to those done it's less environment, how maybe it rate a will that interest, based know know composition? balance very assets the that We've know we the But bring in investor a are long us pass a we in not did do that very as of of there just sheet time, we some a Justin, shake put of in evaluation. past, have won't on do interest the element, chase portfolios that, and just and we portfolio our certainly we rising we you it's -- be what's in loose, there. diversity But macro of to think

we we million. or to billion another year, So, to were investments $X coming do year into point noted, expected of $XXX more and one Justin, I'd the year-to-date thing out for is -- the at

our on well So way.

Bascome from with Majors Susquehanna. question next our take We

Your open. line is

asset is macro become you've obviously issue. volume in of where labor for growth well. risks issues less the of questions. half an there's situation that that a is lot of my North service kind the you're and actively got business risks sandwiched There And America, with for customers as to how In what for Rail maybe enthusiasm to railroads this also of prices unique using those some and between as will that there slowdown obvious taking in comments see already. sequential leasing utilization a for front. second that restored for that's they're not Thanks sequential certainly they pretty new bit cars, underlying are been of a lot some where in macroeconomic in of your if your you pricing is some but power But, a

that So it's a lot it of would be should there words does for benefit in what And start high me at to about rise an the being your How cars ask. change? car historically storage have is you. If but maybe we to hoped Thank to are you kind playbook think look analogous of the environment. an environment that need and period of where you is prices again. car not new we

American post Yes, the crude is very with and are Bascome, supply every mid-XXXXs, unique. the I car don't said, -- is think what the And boom, the happened North different. there cycle fleet I as in

So there we and our not of breadth we're have. customers now and where the the in of right running their isn't now. What pockets lot to a perfectly depth could. I tell right are they car of at at see you We terms believe weakness capacity in don't of excess lot a portfolio customers if a is, of our supply. very There's will tight analogous situation least we

cars. more they take and said rail they by move would would we product As more

right. doesn't our So change, strategy

provider. long-term We service full are lessor a

on assets return and earn We a price our expect to we'll accordingly.

our strategic dramatic thinking. no So in shift

we're North And This if to could. fleet just now. also add net want that right to American I railcar I continuing speaking, in is see the Paul too, shrinkage

by retirements And high of is production higher level which is boom So has occurring, new of a there again a occurring. prices. not sort of been there scrap helped level railcar

now. helps So I feel this that's about think another right thing market confident us that

We the fleet, fleet. but add net the we're seeing existing not tightness are in seeing existing to

And encouraging an us. that's sign so, for

should to rails volumes. revisit like your case? the actually is prices? underwrite that Just that that to would cars to add at Are it that And around allow like something existing the your can your and that, grow continue analysis view Any sounds them is would they customers you great. fleet? raise Is to that be content just asset in support pricing current more Thanks. you from

Bascome. that balance certainly through both, have We do for us important XXXX, we I those end a and to with run that always out of it's have been the supply mean with supply to of our add ability purchase. that important agreement, point continually railcars transaction with provides We'll fleet and product us And to the the selectively bring us. spot and the biggest spot serve and to our customers. into that new and that new the best agreements

secondary As a year-to-date XX matter the another bought fact, on almost we and market. the of that outside assets million of we've in $XXX supply invested of agreement, top in

but of So, you're disciplined customer environment good an in high asset find prices. if and have can relationships, you those opportunities even

strength again, I go can we out to the are those. we those. find think we it yes, organization the that And of speaks that commercial selectively So have finding and

Thank Last you me. that. one for from

out I manufacturing, materials been to return effective cost the work cost And Europe talk for have being to and still lessor worked that or that it's make You've chain, expected. think the much Can there looking environment energy, being your from enough go OEMs, quite a through? ongoing? some there build what the certainly, obviously environment. resilient been that people is you to process the able a would how circumstances than a perhaps is supply with new it you to about of issues lot of collect for and still eventual about higher in forward unforeseen it asset pretty markup that constructive takes in your car. cost outside and is you But have on have How cost Thanks. how changed cost dynamics more of

and with well extreme railcar component it's this But still price protection there that with job would prices as spike cars. with say very generally, customers other lessors, has we done back level to the in and and contracts in a team purchase we OEMs of economics the are one work. I buyers, was our obviously dialog to our steel the regards some those and of and some all OEMs, ourselves way forth very put still of the Well, good to But year, who committed as earlier prices good at given ongoing and there negotiation purchase delivery have it's as their other protecting feeling assets our take through.

We our Steve with KeyBanc question Barger Capital next take from Markets.

far high and just future lease have been to guys. too are Yes, it lead so last not support is trying material it the adds. market long of strong high we've what too Do not you conditions Or secondary I'm return that the of fleet the a all orders? Yet, morning, times cost see macro Or with mix. just being on and lot think and just of of and tighter wait conditions, good improving, most But utilization trying and kind you the want is? just requirements. is profile? Just about multi-year to low-volume it the OEM kind net rates environment stronger the Hi, one. to orders -- much answered up, seen really conditions square

provide agreements every that we regards off us. to have GATX fact not XXXX, as And data that with to that is That run take our we lost answer will One basis. I important is on the supply delivery far baseload. is agreement, to cars as not in agreement of year a on through mentioned, you that a is two of committed type I And know, Sure. parts.

But in can of our you sense makes really customer-specific. in on terms what the screen radar assume that's it is spot market, beyond XXXX. So

significant need on spot a $XXX customers that rate investment. bunch a out attractive As demand hoping Broadly just they're whose you do. high that economic enough willing GATX investment this of million, speaking, a said, would was that delivery and to a done a of $XXX and and up then sign that's going for we've buying strategy near-term I not basis is whole a to to lease bad get usually already cars that's preserves close and GATX's something and year million with spec on lease return

if public Obviously, chip your thinking macro you've quarters? been back thinking how recession. just on have this you're of all over investors has talk last your customers kind comment the slowdown market about are that evolve watched couple tone environment changed blue customers how or And Thanks. cycles. and/or Can at to of from the as you through having

Well, I the felt course I we the would from any Sure. ever of feel years the at don't as cost first euphoric, is, of -- couple market of need improved. think last we any thing cars say customers over the last our type

you would one really customer our business, go thought how to They're hasn't very about So methodical from process as expect. about another. base swung they their

our environment, macro that think is their most caught dramatic really current behavior. by the not not so -- any something customers a in change So of we're seeing has I surprise,

Gabelli from our take next [Operator with question Bergner Justin Instructions] We Funds.

rails coming one Hi, thanks in improves because customers of volume the quarters? the follow-up. reluctant in is opinion, demand your the Tier-X ask that hopefully of once you would utilization they're for the reasons the to to put see in why say Wanted waiting how to have changes been material orders the

be Well, GATX they I we of that XX-year that equipment be a very mindful through at to put a every asset. to XX-year always And the tends are long-term like customers asset us, to on work buy to fact it's lease. going least we knowing think are when

think next nine want six something next months. decisions happen So, or the make to months you based those in never on you might the

similar customers a So have our very mindset.

are they particular or looking up in out beyond think I play dip to not the short-term here the any So well spike trying market.

is actually railroads Class X degree, a that blocking them. easing. And on some private practical railroad not fluidity It's additional shippers network take just shipper congestion privates, cars would as so also to the issues, to that going to ease also that if returns the expect to that are limit a bring essentially that can certain fact, of there's seeing we you're noting a you're signs limited that it's in on and due worth have we

then asset Okay. question disposition. the relates Thank you. And gains second to on

be to light. quarter The expect I second light, you it looked know

so are second get more second any dynamics pickup in half? of light XQ or there of you that quarter strong? market a in half. in stronger because Or terms the going in the were think reverse expecting You're the to second just Was the first quarter secondary the was now

Yes.

quite when prepare the always dynamics market, no we to we unusual our of Nothing Justin. And are market and at dependent play timing just frankly, there. in That's packages. our come third-party the may this in than we're expected frame we out a executing or process buyer on that time one when in different a on on a play be might thought quarter. with a

And secondary at market remains nothing all. the unusual mention, very So really I as robust. active,

turn are closing would I at additional any questions the our back like there to presenter or time. comments. no this call to further for It seems

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

participation. And this call. Thank for concludes you your today's

You may now disconnect.