Financial Data and Key Metrics Changes - The company recorded adjusted EBITDA of 36.9millioninQ32024,anincreaseof8220 million, with potential to exceed 300millionifnewbusinessopportunitiesaresuccessfullyconvertedintocontracts[8][9]BusinessLineDataandKeyMetricsChanges−∗∗Transtar∗∗:AchievedadjustedEBITDAof21.1 million in Q3 2024, with stable carloads and rates. Revenue was 44.8million,downfrom45.6 million in Q2 2024 [10][19] - Jefferson: Generated 11.8millioninadjustedEBITDA,withrevenueof19.7 million, down from 21.2millioninQ22024.Newcontractsexpectedtocontribute20 million of annual EBITDA starting in 2025 [11][21] - Repauno: Executed its first long-term contract for Phase 2 transloading system, with potential annual EBITDA contribution of 60millionto70 million once complete [12][23] - Long Ridge: Generated 11.1millioninEBITDA,reflectingacapacityfactorof9932 million due to capacity auction results [13][25] Market Data and Key Metrics Changes - The company has a strong pipeline of new business opportunities, with a focus on maintaining organic EBITDA growth of 15% annually across its segments [10][20] - The construction of projects at Jefferson is on budget and on time, with expected revenue service commencing in 2025 [11] Company Strategy and Development Direction - The company is focused on pursuing accretive investments and acquisitions, particularly in the Transtar segment, to enhance growth and value creation [10][42] - Financing plans include issuing 300millionoflow−costtax−exemptdebtforRepaunoandrefinancingexistingdebtatLongRidgetoreducefixedchargesandenhancecashflow[15][16][18]Management′sCommentsonOperatingEnvironmentandFutureOutlook−Managementexpressedoptimismaboutthegrowthpotentialintheupcomingquarters,drivenbynewcontractsandfavorablemarketconditions[26]−Thecompanyisactivelypursuingmultiplenewbusinessopportunities,indicatingarobustgrowthoutlookfor2025andbeyond[8][26]OtherImportantInformation−TheBoardhasauthorizedaquarterlydividendof0.03 per share, to be paid on November 19, 2024 [6] - Total debt as of September 30, 2024, was 1.5 billion, with significant portions allocated to specific business units [14] Q&A Session Summary Question: Expansion on Long Ridge financing and potential contract pricing - Management indicated that refinancing would be highly accretive, with potential incremental EBITDA of approximately 50 million annually from new swaps at higher market prices [30][32] Question: Update on U.S. Steel transaction and implications for Transtar - Management noted that approval for the Nippon transaction is expected in December, with potential positive implications for Transtar if approved [36][38] Question: Status of M&A opportunities for Transtar - Management confirmed ongoing negotiations for three potential acquisitions, with significant value creation expected from successful transactions [40][42] Question: Details on new contracts at Jefferson - Management provided specifics on two contracts expected to generate $20 million of annual EBITDA, both fully funded and on track for completion [44][45] Question: Role of GE in Long Ridge operations - Management clarified that no mechanical changes are needed for the turbine at Long Ridge, only a software update to increase power generation capacity [47]
