Atlas Corp (ATCO) 2022 Q3 法說會逐字稿

Welcome to Atlas Corp's Third Quarter 2022 Earnings Conference Call. I'd like to remind everyone that this conference call is being recorded today, November 02, 2022.

歡迎來到 Atlas Corp 的 2022 年第三季度收益電話會議。我想提醒大家，本次電話會議將於今天 2022 年 11 月 2 日錄製。

I would now like to turn the call over to Will Kostlivy, Head of Investor Relations at Atlas Corp.

我現在想把電話轉給 Atlas Corp 投資者關係主管 Will Kostlivy。

Good morning, everyone, and thank you for joining us today to discuss Atlas Corp.'s third quarter 2022 earnings report. We issued our earnings release yesterday evening after market close. We will refer to our quarterly earnings release accompanying earnings presentation and earnings supplemental workbook today in this conference, which all can be found on the Investor tab of our website, atlascorporation.com.

大家早上好，感謝您今天加入我們討論 Atlas Corp. 的 2022 年第三季度收益報告。我們在昨天晚上收市後發布了收益報告。今天在本次會議上，我們將參考我們的季度收益發布以及收益報告和收益補充工作簿，所有這些都可以在我們網站 atlascorporation.com 的“投資者”選項卡上找到。

I would like to remind you that our discussion today contains forward-looking statements, and I draw your attention to the disclaimer on Slide 2 in the earnings presentation. Please note that we report non-GAAP measures, which we believe provide investors a clearer understanding of the performance of our business. The earnings release contains supplemental financial tables and information pertaining to our quarterly earnings report and includes definitions of non-GAAP financial measures and reconciliations of such non-GAAP measures to the most closely comparable U.S. GAAP measures. These definitions may also be found in the appendices at the back of the earnings presentation, which we may refer to in our call discussion.

我想提醒您，我們今天的討論包含前瞻性陳述，我提請您注意收益演示中幻燈片 2 的免責聲明。請注意，我們報告的是非 GAAP 指標，我們認為這些指標能讓投資者更清楚地了解我們的業務表現。收益發布包含補充財務表格和與我們的季度收益報告有關的信息，並包括非 GAAP 財務措施的定義以及此類非 GAAP 措施與最接近可比的美國 GAAP 措施的調節。這些定義也可以在收益演示文稿後面的附錄中找到，我們可以在電話討論中參考這些定義。

Please turn to Slide 3. On the call with me are Bing Chen, President and CEO of Atlas Corp; and Graham Talbot, Chief Financial Officer of Atlas Corp. Joining us on the call during the Q&A session is Seaspan's Chief Commercial Officer, Peter Curtis; and Seaspan's Chief Operating Officer, Torsten Pedersen. Following our prepared remarks, we will open up the forum to a question-and-answer session.

請轉到幻燈片 3。與我通話的是 Atlas Corp 總裁兼首席執行官 Bing Chen；和 Atlas Corp 的首席財務官 Graham Talbot。在問答環節加入我們的電話會議的是 Seaspan 的首席商務官 Peter Curtis； Seaspan 的首席運營官 Torsten Pedersen。在我們準備好的評論之後，我們將打開論壇進行問答環節。

With that, I am pleased to now turn the call over to Atlas Corp.'s President and CEO, Bing Chen.

有了這個，我很高興現在把電話轉給 Atlas Corp. 的總裁兼首席執行官 Bing Chen。

Thank you, Will, and good morning, everyone. Thank you for joining our call. To begin, I would like to quickly cover the developments in the acquisition proposal received by our Board of Directors on August 4, 2022 from affiliates of Fairfax, the Washington family, David Sokol and ONE.

謝謝你，威爾，大家早上好。感謝您加入我們的電話。首先，我想快速介紹一下我們的董事會於 2022 年 8 月 4 日從 Fairfax、華盛頓家族、David Sokol 和 ONE 的附屬公司收到的收購提案的進展情況。

Yesterday, we announced that following the recommendation of the independent special committee that was appointed by the Board of Directors to review and negotiate the proposal. Atlas has entered into an agreement to be acquired by the Poseidon Consortium. The transaction is subject to several conditions, including approval of a majority of unaffiliated shareholders, regulatory approvals and consents. We expect the transaction to close in the first half of 2023. For more information regarding the transaction, please refer to our public disclosures.

昨天，我們宣布，根據董事會任命的獨立特別委員會的建議，對提案進行審查和談判。 Atlas 已簽訂協議，將被 Poseidon Consortium 收購。該交易須滿足幾個條件，包括大多數非關聯股東的批准、監管部門的批准和同意。我們預計交易將於 2023 年上半年完成。有關交易的更多信息，請參閱我們的公開披露。

In the meantime, management is focused on business as usual and continuing to successfully execute on our strategy. Today, my comments will focus on our key developments in our business, then I will hand it over to Graham Talbot to present our Q3 2022 results and provide a financial update.

與此同時，管理層專注於照常營業，並繼續成功執行我們的戰略。今天，我的評論將集中在我們業務的主要發展上，然後我將把它交給 Graham Talbot 來介紹我們 2022 年第三季度的業績並提供財務更新。

Please turn to Slide 4. I would like to start by reviewing the key developments at Seaspan. Leveraging our creative customer solutions and partnerships, we forward fixed 14 vessels in the third quarter.

請轉到幻燈片 4。我想首先回顧一下 Seaspan 的主要發展。利用我們創造性的客戶解決方案和合作夥伴關係，我們在第三季度轉發了 14 艘固定船舶。

These forward fixtures contribute over $1.1 billion of gross contracted cash flow to our total current balance of $18.6 billion. This leads to our fleet having an average TEU weighted charter duration of 6.9 years and being 100% contracted for the remainder of 2022, 99.6% for 2023, and 96.8% for 2024 on a TEU basis.

這些遠期固定裝置為我們目前 186 億美元的總餘額貢獻了超過 11 億美元的合同現金流總額。這導致我們的船隊的平均 TEU 加權租期為 6.9 年，並且在 TEU 的基礎上，2022 年剩餘時間的合同為 100%，2023 年為 99.6%，2024 年為 96.8%。

In the quarter, we continued to diligently execute our newbuild program with the delivery of 2 11,800 TEU newbuilds, which commenced 5-year charter upon delivery. In October, we delivered another 11,800 TEU newbuild and our first 15,000 TEU newbuilds, both of which commenced 5-year charters.

本季度，我們繼續努力執行我們的新造船計劃，交付了 2 艘 11,800 TEU 新造船，交付後開始為期 5 年的租約。 10 月，我們又交付了 11,800 TEU 的新造船和首批 15,000 TEU 的新造船，兩者都開始了為期 5 年的租約。

To date, the large majority of the 11 deliveries from our 70 vessel newbuild program have been ahead of the schedule, delivering incremental value to our customers and shareholders. This further demonstrates our consistent operational excellence and our confidence in delivering the remaining newbuilds on time and on budget, subject to third-party circumstances.

迄今為止，我們 70 艘新造船項目交付的 11 艘中的絕大部分都提前完成，為我們的客戶和股東帶來了增量價值。這進一步證明了我們一貫的卓越運營以及我們有信心在第三方情況下按時按預算交付剩餘的新造船。

In September, we announced the contracts related to our order of 47,700 TEU dual-fuel LNG newbuild become now and void. This was due to the shipyard falling to obtain refund guarantees. In line with our no risk discipline, refund guarantee are a required condition in all our newbuild contracts and therefore, no capital was deployed. During the third quarter, we continued to maintain a strong vessel utilization rate of 98.6%. We also maintained our industry-leading safety record with a lost time injury frequency of 0.22 delivered through a continued focus on safety of our people. Our team's diligent execution, coupled with our consistent operational excellence continued to drive our performance in the quarter.

9 月，我們宣布與我們的 47,700 TEU 雙燃料 LNG 新建訂單相關的合同現在失效。這是由於造船廠未能獲得退款保證。根據我們的無風險紀律，退款保證是我們所有新建合同的必要條件，因此沒有動用任何資金。第三季度，我們繼續保持 98.6% 的強勁船舶利用率。通過持續關注我們員工的安全，我們還保持了行業領先的安全記錄，損失工時工傷頻率為 0.22。我們團隊的勤奮執行，加上我們一貫的卓越運營，繼續推動我們本季度的業績。

Please turn to Slide 5. Now let's review some key developments at APR. APR successfully completed its 4 months Imperial Irrigation District power generation contracts in September and Mexicali dry-lease contract in October with demobilization of a total 7 turbines currently underway across both sites. APR also completed mobilization and installation of 8 turbines in October under its 44-month contracts in Brazil and APR's life cycle contracts with continuing successful operation until early 2023. APR completed its 5-year contract in Argentina earlier this year. And as of today, demobilization of the turbines at both sides is complete. During the third quarter of APR achieved an asset utilization of 80% and achieved a perfect lost time injury rate of 0.

請轉到幻燈片 5。現在讓我們回顧一下 APR 的一些重要進展。 APR 在 9 月成功完成了為期 4 個月的 Imperial Irrigation District 發電合同，並在 10 月成功完成了 Mexicali 幹租合同，目前在這兩個地點共拆除了 7 台渦輪機。 APR 還在 10 月根據其在巴西的 44 個月合同和 APR 的生命週期合同完成了 8 台渦輪機的調動和安裝，並在 2023 年初之前繼續成功運行。APR 今年早些時候在阿根廷完成了為期 5 年的合同。到今天為止，雙方渦輪機的複原工作已經完成。 APR第三季度資產利用率達到80%，完美失時工傷率為0。

Thank you for your time today. I will now turn the call over to our CFO, Graham Talbot.

謝謝你今天的時間。我現在將把電話轉給我們的首席財務官 Graham Talbot。

Thank you, Ben, and good morning, everyone, and thank you very much for joining us today.

謝謝你，本，大家早上好，非常感謝你今天加入我們。

Please turn to Slide #6. So in Q3 2022, we maintained our consistent operational and financial results. During the quarter, Atlas achieved the following performance relative to Q3 2021. Our revenue decreased by 2.7% to $439.6 million. This is primarily driven by a seasonally high asset utilization in APR in Q3 2021. Seaspan delivered a small revenue increase over the same period.

請轉到幻燈片#6。因此，在 2022 年第三季度，我們保持了一致的運營和財務業績。在本季度，Atlas 相對於 2021 年第三季度取得了以下業績。我們的收入下降了 2.7% 至 4.396 億美元。這主要是由於 2021 年第三季度 APR 的季節性高資產利用率推動的。Seaspan 同期收入小幅增長。

Our adjusted EBITDA decrease was 9.7%, down to $291.1 million and FFO decrease of 17.2% to $205.4 million. And at the end of the quarter, we had liquidity of just under $1.3 billion. So amongst the backdrop of macroeconomic headwinds, I'm proud of the team's consistent high performance and execution. These results exhibit the strength and resilience of our fully integrated operating model and focus on operational excellence, providing predictable through-cycle returns to all stakeholders.

我們調整後的 EBITDA 下降 9.7%，降至 2.911 億美元，FFO 下降 17.2%，至 2.054 億美元。在本季度末，我們的流動資金略低於 13 億美元。因此，在宏觀經濟逆風的背景下，我為團隊一貫的高績效和執行力感到自豪。這些結果展示了我們完全集成的運營模式的優勢和彈性，並專注於卓越運營，為所有利益相關者提供可預測的全週期回報。

Please turn to Slide #7. As discussed previously, the continued optimization of our balance sheet as part of our operational excellence culture. Furthering our progress towards achieving investment-grade rating, Seaspan had its ratings reaffirmed by Fitch, Standard & Poor's and Kroll at BB, BB- and BB+, respectively.

請轉到幻燈片#7。如前所述，持續優化我們的資產負債表是我們卓越運營文化的一部分。為了進一步實現投資級評級，Seaspan 的評級分別被惠譽、標準普爾和 Kroll 重申為 BB、BB- 和 BB+。

In addition to our ratings at Seaspan, we received our first credit rating for Atlas, which is a BB+ corporate rating from Kroll. These agencies referenced Atlas and Seaspan's improvements in business risk management and our increasingly diversified funding sources as key drivers for their ratings. They also highlighted that our increasing unencumbered asset base and proportion of unsecured debt were supporting factors.

除了我們在 Seaspan 的評級之外，我們還獲得了 Atlas 的第一個信用評級，這是來自 Kroll 的 BB+ 企業評級。這些機構將 Atlas 和 Seaspan 在業務風險管理方面的改進以及我們日益多樣化的資金來源作為其評級的主要驅動因素。他們還強調，我們不斷增加的未支配資產基礎和無擔保債務比例是支持因素。

In October, Seaspan upgraded the financing for 15 of its 7,000 TEU newbuilds from a $1.1 billion bank financing facility, up to a $1.5 billion ECA-backed JOLCOs structure. The upgraded facility has a significantly lower cost, supported by backing from SINOSURE, the Chinese export credit agency and includes a low-cost fixed rate component. This financing represents the third transaction utilizing our award-winning ECA-backed JOLCOs stricture, which is now being used to finance 33 of our newbuild vessels.

10 月，Seaspan 將其 7,000 TEU 新造船中的 15 艘的融資從 11 億美元的銀行融資額度升級為 15 億美元的 ECA 支持的 JOLCOs 結構。在中國出口信貸機構 SINOSURE 的支持下，升級後的貸款成本顯著降低，並包括低成本的固定利率部分。此次融資是利用我們屢獲殊榮的 ECA 支持的 JOLCOs stricture 進行的第三筆交易，該交易目前用於為我們的 33 艘新造船提供資金。

At the quarter end, Seaspan remains well positioned in the current inflationary environment with approximately 70% of its debt, including preference shares tied to fixed interest rates as of quarter end. This position was established through issuing a $500 million long-term floating to fixed rate interest swap in Q1 at 1.9%, a $500 million fixed rate U.S. private placement in Q2 used to pay down existing shorter-term floating rate debt and an additional $75 million long-term floating fixed rate swap in Q3 of 2.4%. As of quarter end, the mark-to-market valuation of our hedging position was $125 million positive. We feel this position is appropriate given the current market conditions, and we will continue to actively monitor our interest rate exposure.

在本季度末，Seaspan 在當前的通脹環境中仍處於有利地位，其債務約為 70%，包括截至本季度末與固定利率掛鉤的優先股。這一頭寸是通過在第一季度以 1.9% 的利率發行 5 億美元的長期浮動利率與固定利率互換而建立的，第二季度用於償還現有短期浮動利率債務的 5 億美元固定利率美國私人配售以及額外的 7500 萬美元第三季度長期浮動固定利率互換利率為 2.4%。截至季度末，我們對沖頭寸的市值估值為 1.25 億美元。鑑於當前的市場狀況，我們認為這一立場是合適的，我們將繼續積極監控我們的利率風險。

Please turn to Slide 8. Now I'd like to summarize our quarterly performance by leaving with 5 key takeaways. Number 1, together with our strong underlying performance in the quarter, we are focused on disciplined quality growth that contributes to our resilient business model. Number 2, we will continue to optimize our fleet to derisk our portfolio and recycle capital.

請轉到幻燈片 8。現在我想總結一下我們的季度業績，留下 5 個關鍵要點。第一，連同我們本季度強勁的基本業績，我們專注於有紀律的高質量增長，這有助於我們的彈性商業模式。第二，我們將繼續優化我們的機隊，以降低我們的投資組合風險並回收資本。

Number 3, APR continues to focus on generating long-term predictable cash flows through higher asset utilization and redeployment of its fleet. Number 4, we continue to diligently execute construction and delivery of our newbuild vessels to our customers. To date, we've delivered 11 newbuilds from our 70 vessel newbuild program, the large majority ahead of schedule. Number 5, we're continuing to strengthen our balance sheet in line with our target of achieving the investment-grade credit rating in addition to proactively managing our interest rate exposure amongst inflationary pressures.

第三，APR 繼續專注於通過提高資產利用率和重新部署其機隊來產生長期可預測的現金流。第四，我們繼續努力為客戶建造和交付新造船。迄今為止，我們已經交付了 70 艘新造船計劃中的 11 艘新造船，其中大部分都提前交付。第五，除了積極管理我們在通脹壓力下的利率風險外，我們還將根據實現投資級信用評級的目標繼續加強我們的資產負債表。

Finally, I'd like to briefly address the recent announcement about the agreement for Poseidon Consortium to acquire Atlas. We caution that while an agreement has been reached, as mentioned earlier, is subject to closing conditions, and there can be no assurances that any transaction will result. Management is focused on running this business and executing on its strategy. As such, I ask that you keep your questions today focused on our financial results and performance.

最後，我想簡單談談最近關於 Poseidon Consortium 收購 Atlas 協議的公告。我們警告說，如前所述，雖然達成了協議，但仍受成交條件的約束，並且無法保證任何交易都會產生。管理層專注於經營這項業務並執行其戰略。因此，我要求您今天將問題集中在我們的財務業績和業績上。

With that, operator, we would now like to open the line for questions. Thank you.

有了這個，接線員，我們現在想打開問題熱線。謝謝你。

(Operator Instructions) And we have a question from the line of Liam Burke from B. Riley.

（操作員說明）我們有來自 B. Riley 的 Liam Burke 的問題。

Yes. Graham, I know we're not supposed to -- I'll tread carefully on this first question. But presuming the transaction, the proposed transaction with Poseidon goes through, that would -- the company would go private, but you have publicly traded preferred stock, what happens -- should this transaction occur, but what happens with those preferred shares?

是的。格雷厄姆，我知道我們不應該——我會謹慎對待第一個問題。但假設交易，與 Poseidon 的擬議交易得以通過，那將——公司將私有化，但你已經公開交易優先股，會發生什麼——如果交易發生，但那些優先股會發生什麼？

Liam, always good to hear from you. That's an excellent question. And we have now communicated to the market that our preferred shares will remain listed on the NYSE. And hopefully that clarifies any questions that anyone has about their liquidity going forward.

利亞姆，很高興收到你的來信。這是一個很好的問題。我們現在已經向市場傳達了我們的優先股將繼續在紐約證券交易所上市的信息。希望這能澄清任何人對其未來流動性的任何疑問。

Great. And Bing, without going into too much detail, you did cancel those 4 vessels. With your current backlog of orders, do you see any problems with deliveries, delays or any sort of related problems to what you saw with these 4?

偉大的。 Bing，沒有過多的細節，你確實取消了那 4 艘船。對於您當前的訂單積壓，您是否發現任何交付問題、延遲問題或與這 4 個問題相關的任何類型的問題？

Yes. Liam for the cancelation of the 4 7,700 as we previously announced, this is the -- this is solely due to the shipyard that is fairly to provide the refund guarantee, which is a condition in all of our contracts when we sign any newbuild. So due to the failure of obtaining this refund guarantee, the contract is void. And so therefore, from our side, that there's no exposure neither to our customer nor to the shipyard.

是的。利亞姆取消我們之前宣布的 4 7,700，這完全是因為造船廠公平地提供退款保證，這是我們簽署任何新造船時所有合同的條件。因此，由於未能獲得此退款保證，合同無效。因此，從我們的角度來看，我們的客戶和造船廠都沒有風險。

With regarding to the remaining delivery of the newbuild, as my colleague mentioned earlier, so far this year, we had 11 newbuild delivery ahead of schedule. And as I stated earlier, with the excellent team of our people working with our shipyard and the customer, we expect the remaining of those newbuilds to be delivered on time. Of course, they are subject to external factors which are beyond our control.

關於剩餘的新船交付，正如我的同事之前提到的，今年到目前為止，我們提前交付了 11 艘新船。正如我之前所說，憑藉我們與造船廠和客戶合作的優秀團隊，我們希望其餘的新造船能夠按時交付。當然，它們受到我們無法控制的外部因素的影響。

This does conclude the question-and-answer session of today's program. I'd like to hand the program back to Bing Chen for any further remarks.

今天節目的問答環節到此結束。我想把程序還給陳冰，請他進一步評論。

Thank you. Once again, thank you, Liam, and all the others attending our call. Appreciate your time. You have a great day. Thank you.

謝謝你。再次感謝利亞姆和所有其他參加我們電話會議的人。珍惜你的時間。你有很好的一天。謝謝你。

Thanks, everyone.

感謝大家。

Thank you, ladies and gentlemen, for your participation in today's conference. This does conclude the program. You may now disconnect. Good day.

女士們，先生們，感謝你們參加今天的會議。這確實結束了程序。您現在可以斷開連接。再會。