FTAI Aviation Ltd (FTAI) 2022 Q4 法說會逐字稿

Good day and thank you for standing by. Welcome to the Q4 2022 FTAI Aviation Earnings Conference Call. (Operator Instructions) Please be advised that today's conference is being recorded.

美好的一天，謝謝你的支持。歡迎參加 2022 年第四季度 FTAI 航空收益電話會議。 （操作員說明）請注意，今天的會議正在錄製中。

I would now like to hand the conference over to your speaker today, Alan Andreini, Head of Investor Relations. Please go ahead.

我現在想把會議交給今天的演講者，投資者關係主管 Alan Andreini。請繼續。

Thank you, Michelle. I would like to welcome you all to the FTAI fourth quarter and full year 2022 earnings call. Joining me here today are Joe Adams, our Chief Executive Officer; and Angela Nam, our Chief Financial Officer. We have posted an investor presentation and our press release on our website, which we encourage you to download if you have not already done so. Also, please note that this call is open to the public in listen-only mode and is being webcast. In addition, we will be discussing some non-GAAP financial measures during the call today, including EBITDA. The reconciliation of those measures to the most directly comparable GAAP measures can be found in the earnings supplement.

謝謝你，米歇爾。歡迎大家參加 FTAI 第四季度和 2022 年全年財報電話會議。今天和我一起來的是我們的首席執行官 Joe Adams；和我們的首席財務官 Angela Nam。我們已經在我們的網站上發布了投資者介紹和新聞稿，如果您還沒有下載，我們鼓勵您下載。另請注意，此電話會議以只聽模式向公眾開放，並正在網絡直播中。此外，我們將在今天的電話會議中討論一些非 GAAP 財務指標，包括 EBITDA。這些措施與最直接可比的 GAAP 措施的調節可以在收益補充中找到。

Before I turn the call over to Joe, I would like to point out that certain statements made today will be forward-looking statements, including regarding future earnings. These statements by their nature are uncertain and may differ materially from actual results. We encourage you to review the disclaimers in our press release and investor presentation regarding non-GAAP financial measures and forward-looking statements and to review the risk factors contained in our quarterly report filed with the SEC.

在我把電話轉給 Joe 之前，我想指出，今天發表的某些聲明將是前瞻性聲明，包括關於未來收益的聲明。這些陳述就其性質而言是不確定的，可能與實際結果存在重大差異。我們鼓勵您查看我們的新聞稿和投資者介紹中有關非 GAAP 財務措施和前瞻性陳述的免責聲明，並查看我們向美國證券交易委員會提交的季度報告中包含的風險因素。

Now I would like to turn the call over to Joe.

現在我想把電話轉給喬。

Thank you, Alan. To start today, I'm pleased to announce our 31st dividend as a public company and our 46th consecutive dividend since inception. The dividend of $0.30 per share will be paid on March 22 based on a shareholder record date of March 10. Now let's turn to the numbers. The key metric for us is adjusted EBITDA. We ended the year strongly with adjusted EBITDA of $123.5 million in Q4 2022, which is up 13% compared to $108.9 million in Q3 2022 and up 22% compared to $101.4 million in Q4 of 2021. During the fourth quarter, the $123.5 million EBITDA number was comprised of $110 million from our leasing segment, $21.7 million from our aerospace products segment and negative $8.5 million from corporate and other. Now let's look at all of 2022 versus all of 2021. Adjusted EBITDA was $428.1 million in 2022, up 33% versus $322.8 million in 2021.

謝謝你，艾倫。今天開始，我很高興地宣布我們作為上市公司的第 31 次股息和自成立以來的第 46 次連續股息。根據 3 月 10 日的股東記錄日期，每股 0.30 美元的股息將於 3 月 22 日支付。現在讓我們來看看這些數字。我們的關鍵指標是調整後的 EBITDA。我們以 2022 年第四季度調整後的 EBITDA 為 1.235 億美元，強勁地結束了這一年，與 2022 年第三季度的 1.089 億美元相比增長了 13%，與 2021 年第四季度的 1.014 億美元相比增長了 22%。在第四季度，1.235 億美元的 EBITDA 數字包括來自我們租賃部門的 1.1 億美元，來自我們航空航天產品部門的 2170 萬美元以及來自企業和其他部門的負 850 萬美元。現在讓我們看看 2022 年全年與 2021 年全年的對比情況。2022 年調整後的 EBITDA 為 4.281 億美元，與 2021 年的 3.228 億美元相比增長 33%。

Now turning to leasing. Leasing had a good quarter posting approximately $110 million of EBITDA. The pure leasing component of $110 million of EBITDA came in at $85 million for Q4, up from $75 million in Q3. With strong demand for assets and the addition of new acquisitions in late 2022, we expect Q1 2023 will continue to grow. We're very confident in leasing EBITDA of $350 million to $400 million for the year excluding gains on asset sales. Part of the $110 million EBITDA for leasing came from gains on asset sales, which also performed well. We sold $102.6 million book value of assets for a gain of $25.7 million. And we remain comfortable assuming gains on asset sales continuing at approximately $25 million per quarter or $100 million for all of 2023.

現在轉向租賃。租賃業務季度業績良好，EBITDA 約為 1.1 億美元。 1.1 億美元的 EBITDA 的純租賃部分在第四季度為 8500 萬美元，高於第三季度的 7500 萬美元。隨著對資產的強勁需求和 2022 年底新收購的增加，我們預計 2023 年第一季度將繼續增長。我們非常有信心在今年租賃 EBITDA 為 3.5 億至 4 億美元，不包括資產出售收益。 1.1 億美元的租賃 EBITDA 部分來自資產銷售收益，該收益也表現良好。我們出售了賬面價值為 1.026 億美元的資產，獲得了 2570 萬美元的收益。我們仍然樂於假設資產出售的收益繼續保持在每季度約 2500 萬美元或 2023 年全年 1 億美元。

Aerospace products had another good quarter with $22 million of EBITDA. We started these activities a little over a year ago and in the last 5 quarters have booked approximately $91 million of EBITDA without any contribution from PMA. We see tremendous potential and continue to feel good about generating $20 million to $30 million in quarterly EBITDA and think $100 million plus in 2023 EBITDA remains very doable. We feel confident about this number because we're seeing a rapidly expanding backlog of aerospace products business with other leasing companies, MROs or maintenance and repair organizations and airlines.

航空航天產品又迎來了一個不錯的季度，EBITDA 為 2200 萬美元。我們在一年多前開始這些活動，在過去 5 個季度中，在沒有 PMA 的任何貢獻的情況下，我們已經預訂了大約 9100 萬美元的 EBITDA。我們看到了巨大的潛力，並繼續對在季度 EBITDA 中產生 2000 萬至 3000 萬美元感到滿意，並認為 2023 年超過 1 億美元的 EBITDA 仍然非常可行。我們對這個數字充滿信心，因為我們看到與其他租賃公司、MRO 或維護和維修組織以及航空公司的航空航天產品業務積壓迅速擴大。

With that, let me turn the call back over to Alan.

有了這個，讓我把電話轉回給艾倫。

Thank you, Joe. Michelle, you may now open the call to Q&A.

謝謝你，喬。米歇爾，你現在可以打開問答環節了。

(Operator Instructions) Our first question comes from Josh Sullivan with Benchmark.

（操作員說明）我們的第一個問題來自 Benchmark 的 Josh Sullivan。

Just a question on engine availability particularly on the GE56, I think you sold 19 engines in the quarter, purchased 19. What was the mix there? And then what does the GE56 market look like and the constraints for new engine supply?

只是一個關於發動機可用性的問題，特別是 GE56，我認為你在本季度售出了 19 台發動機，購買了 19 台。那裡的組合是什麼？那麼 GE56 市場是什麼樣的以及新發動機供應的限制是什麼？

Yes. It looks very good. The mix we buy is -- mostly what we're buying is CFM56 and a lot of what we're selling is Pratt 4000s, CF6-80s and RB211. So we've really been consciously shifting the mix towards CFM56 engines over the last couple of years. We have a little chart in the supplement, which I think shows how much we've grown that to over -- we now have about 330 CFM56 engines between stand-alone engines and aircraft engines. And we continue I think going forward to see very good activity on being able to buy engines even in a pretty strong and hot market for aircraft engines. So we now have a portfolio or we have negotiations ongoing for various acquisitions that total over 50 engines. Some of them are coming from aircraft that were parked or had been with an airline that went bankrupt. Some are coming out of an airline that just had surplus spare engines. So it's a wide mix. And as I've always said you have the largest fleet of engines in the world, you have over 20,000 of these engines. We continue to believe we'll see numerous good opportunities to grow that number. Certainly I think we'll definitely grow that number this year pretty materially.

是的。看起來很好。我們購買的組合是——我們購買的大部分是 CFM56，我們出售的很多是 Pratt 4000s、CF6-80s 和 RB211。所以在過去的幾年裡，我們真的有意識地將混合動力轉向 CFM56 發動機。我們在補充中有一個小圖表，我認為它顯示了我們已經發展到什麼程度——我們現在在獨立發動機和飛機發動機之間有大約 330 個 CFM56 發動機。我認為，即使在相當強勁和火熱的飛機發動機市場中，我們也會繼續看到能夠購買發動機的非常好的活動。因此，我們現在擁有一個投資組合，或者我們正在就總計超過 50 台發動機的各種收購進行談判。其中一些來自停放的飛機或曾在一家破產的航空公司工作過的飛機。有些來自一家剛剛擁有多餘備用發動機的航空公司。所以這是一個廣泛的組合。正如我一直說的，你們擁有世界上最大的發動機機隊，你們擁有超過 20,000 台這樣的發動機。我們仍然相信我們會看到許多增加這一數字的好機會。當然，我認為我們今年肯定會大幅增加這個數字。

Our next question comes from Kristine Liwag with Morgan Stanley.

我們的下一個問題來自摩根士丹利的 Kristine Liwag。

Joe, I just want to follow up on PMA parts. Can you give us an update regarding certification progress and any feedback from the FAA you've received so far?

喬，我只想跟進 PMA 零件。您能否向我們提供有關認證進度的最新信息以及您目前收到的 FAA 的任何反饋？

Sure. So nothing really new since the last time we spoke. But the first part that was approved, we've installed it in over 10 engines now and there's another airline that's put it in their fleet and operating. So it's performing extremely well. So we'll continue to do that and grow that. The next 4 parts made substantial progress in terms of finalization of manufacturing design, production and testing. And so we expect all 4 of those parts will be submitted for final approval this year around the middle of the year. So they've all sort of are progressing on individual timelines, but they're all targeting that same goal. And so if history is a guide, we should have a full portfolio of products available for 2024, which is very exciting.

當然。所以自從我們上次談話以來並沒有什麼新鮮事。但是第一部分獲得批准，我們現在已經將它安裝在 10 多台發動機中，還有另一家航空公司將它放入他們的機隊並投入運營。所以它的表現非常好。因此，我們將繼續這樣做並發展壯大。接下來的4個部分在製造設計定型、生產和測試方面取得了實質性進展。因此，我們預計所有 4 個部分都將在今年年中左右提交以供最終批准。所以他們都在各自的時間表上取得進展，但他們都在瞄準同一個目標。因此，如果以史為鑑，我們應該在 2024 年擁有完整的產品組合，這非常令人興奮。

Yes, that is. And then, Joe, can you just remind us once you get all these 5 PMA parts fully certified, how much in dollar savings do you think you could extract from doing that versus buying from the OEM catalogs in the aftermarket?

對，是。然後，Joe，你能不能提醒我們，一旦你獲得了所有這 5 個 PMA 零件的完全認證，你認為這樣做與從售後市場的 OEM 目錄中購買相比，你可以節省多少美元？

It's over $2 million per shop visit, our cost for those parts versus OEM list. And OEM list prices, as you're probably aware, went up significantly last year on November 1. And that's today without further increases. If you look forward over the next few years, you could very well -- if OEM list prices continue to go up high single digits, our inflation -- our escalator is capped at 3% so the gap will get bigger and bigger. If you look out 4 or 5 years, it's over $3 million per shop visit.

每次商店訪問超過 200 萬美元，我們的這些零件成本與 OEM 清單相比。正如您可能知道的那樣，OEM 定價在去年 11 月 1 日顯著上漲。今天沒有進一步上漲。如果你展望未來幾年，你很可能 - 如果 OEM 標價繼續上漲個位數，我們的通貨膨脹率 - 我們的自動扶梯上限為 3%，因此差距將越來越大。如果你放眼 4 或 5 年，每次光顧商店的費用將超過 300 萬美元。

Great. Thanks for the update, Joe. And looking forward to see the announcements when you get them certified.

偉大的。感謝您的更新，喬。並期待在您獲得認證後看到公告。

We are too.

我們也是。

Our next question comes from Giuliano Bologna with Compass Point.

我們的下一個問題來自 Compass Point 的 Giuliano Bologna。

It's great to see some great performance on the operating side. One thing I was curious about moving to the Module Factory, I was curious if there's a rough sense of how many modules you're able to sell in 2022 and then to get a rough sense of how much that could grow in 2023?

很高興在運營方面看到一些出色的表現。我對搬到模塊工廠感到好奇的一件事是，我很好奇是否可以大致了解您在 2022 年能夠銷售多少個模塊，然後大致了解 2023 年可以增長多少？

That's a great question. So last year all of 2022 we sold 100 modules approximately and it was divided amongst 25 different customers, unique customers. It was a mix of asset owners and airlines and MROs. So it's a nice balance and sort of it touches the entire ecosystem of users of that engine, which is what we've always liked. So if you think about it, 4 modules per customer is not a big number and it really represents a lot of these users were basically testing the product and trying it out to see if they like it. And so everyone that's been a customer of the Module Factory is becoming a repeat customer. So we haven't lost any customers and we're picking up new ones all the time. So if you think we can grow 25 -- just rough math if we could grow 25 customers to 50 and we can increase the number of modules per customer, the growth opportunity is right in line with what we've been talking about in that you could see upwards of 200 to 400 modules in a year coming in the next few years. For 2023 I would expect to see meaningful percentage growth. What that exactly is I would speculate somewhere in the probably 150-plus range of modules this year and it could go higher than that. We're seeing very strong volumes and activity right now.

這是一個很好的問題。所以去年整個 2022 年我們大約售出了 100 個模塊，並分配給了 25 個不同的客戶，獨特的客戶。它是資產所有者、航空公司和 MRO 的混合體。所以這是一個很好的平衡，它觸及了該引擎用戶的整個生態系統，這是我們一直喜歡的。所以如果你仔細想想，每個客戶 4 個模塊並不是一個大數字，它確實代表了很多這些用戶基本上是在測試產品並嘗試看看他們是否喜歡它。因此，曾經是 Module Factory 客戶的每個人都成為了回頭客。所以我們沒有失去任何客戶，而且我們一直在吸引新客戶。因此，如果您認為我們可以增長 25 個——如果我們可以將 25 個客戶增長到 50 個，並且我們可以增加每個客戶的模塊數量，那麼增長機會就與我們一直在談論的一致在接下來的幾年裡，每年可能會看到超過 200 到 400 個模塊。對於 2023 年，我希望看到有意義的百分比增長。我推測今年可能會有 150 多個模塊，而且可能會更高。我們現在看到非常強勁的交易量和活動。

That's great. Then I guess looking at some of the numbers, it's not broken out perfectly. But based on the aerospace products segment kind of implies you guys will generate somewhere in the range of say $500,000 per module in EBITDA and it seems like that could probably double to close to $1 million with PMA. I'd be curious obviously thinking about 150-plus, that can imply that you guys seriously get to $75 million on the current run rate and PMA could help you double that number definitely the following year without any volume improvements from the number of modules. Is that a good way of thinking about the economics and how that could contribute in '23 and beyond?

那太棒了。然後我想看看一些數字，它並沒有完美地分解。但基於航空航天產品領域，這意味著你們每個模塊的 EBITDA 將產生大約 500,000 美元的收入，而 PMA 似乎可能會翻一番，接近 100 萬美元。我很好奇，顯然考慮 150 多個，這可能意味著你們在當前運行率上真的達到 7500 萬美元，而 PMA 可以幫助你們在第二年肯定將這個數字翻一番，而模塊數量沒有任何體積改進。這是思考經濟學的好方法，以及它如何在 23 世紀及以後做出貢獻嗎？

Yes. It's a good way of thinking about it. Even without meaningful growth in volume, we'll see big growth in income and EBITDA.

是的。這是一個很好的思考方式。即使銷量沒有有意義的增長，我們也會看到收入和 EBITDA 的大幅增長。

That's great. And then 1 last question around just kind of the core leasing EBITDA and the run rate. You guys obviously closed on a lot of acquisitions during the quarter and I'm assuming you [didn't] get a lot of contribution from those assets. And even in the past your target was trying to get to a run rate of $90 million to $100 million per quarter for the kind of core leasing EBITDA. I'm curious kind of where you were actually in the quarter with the new acquisitions or where the run rate was, including the new acquisitions?

那太棒了。然後是關於核心租賃 EBITDA 和運行率的最後一個問題。你們顯然在本季度完成了很多收購，我假設你們[沒有]從這些資產中獲得很多貢獻。即使在過去，您的目標也是試圖使核心租賃 EBITDA 的運行率達到每季度 9000 萬至 1 億美元。我很好奇你在本季度的新收購或運行率在哪裡，包括新收購？

Well, we're continuing and some of the assets we bought were off-lease so they don't necessarily contribute immediately and we'll continue to do that because we see the best value in terms of purchase prices in off-leased assets. So you have to build in a little bit of time to get those up and running. And I would say the market in general is really good for leasing. So airlines are announcing every day they're looking for additional old generation or not new generation assets, the 737NGs and the A320 CO fleets are in tremendous demand because of delays with new manufacturing. So we're seeing very strong demand that is really targeting second and third quarters of this year. I think that's when you'll see the biggest growth as people will be -- are lining up assets now to be able to put in their fleet in the second quarter and run very significant schedules in the third quarter. So I think it's shaping up very nicely.

好吧，我們正在繼續，我們購買的一些資產是非租賃資產，因此它們不一定會立即做出貢獻，我們將繼續這樣做，因為我們看到非租賃資產的購買價格具有最佳價值。所以你必須花一點時間來建立和運行它們。我想說整個市場真的很適合租賃。因此，航空公司每天都在宣布他們正在尋找額外的老一代或新一代資產，由於新製造的延遲，737NG 和 A320 CO 機隊的需求量很大。因此，我們看到真正針對今年第二和第三季度的非常強勁的需求。我認為那時你會看到最大的增長，因為人們現在正在排隊資產，以便能夠在第二季度投入他們的機隊，並在第三季度運行非常重要的時間表。所以我認為它的形成非常好。

Our next question comes from Hillary Cacanando with Deutsche Bank.

我們的下一個問題來自德意志銀行的 Hillary Cacanando。

Your acquisition of iAero Thrust seems really well timed just given the current environment of tight supply and MRO supply constraints. Could you just go over how the integration process is going and some of the longer-term strategic benefits of the acquisition that you're expecting?

考慮到當前供應緊張和 MRO 供應限制的環境，您收購 iAero Thrust 似乎恰逢其時。您能否簡單介紹一下整合過程的進展情況以及您期望的收購的一些長期戰略利益？

Yes. So it's going great. It was very timely. We were fortunate to find the facility in Miami that had maintenance capability for hospital and shop visits and a test cell. And the test cell, as I mentioned, there's only 4 of them that are independent test cells in North American market and 1 of them is at Lockheed Martin, which we also have a little bit of knowledge out as well. So the test cell is a tremendous asset for us and the business is -- there's probably 1 major customer in that facility that has over 30 engines there. So that's a big opportunity for the business to ramp that up and grow that and also for us to do additional module swaps, which we are fully engaged on as we speak. We've also made some management changes and hires that are terrific. We got some great people. And I think having a physical location for us that we can showcase our ability to store, do quick repairs and module swaps is a terrific marketing tool. So we couldn't be any more excited about it.

是的。所以一切順利。這是非常及時的。我們很幸運地在邁阿密找到了具有醫院和商店訪問維護能力以及測試室的設施。正如我提到的，測試單元在北美市場只有 4 個是獨立的測試單元，其中 1 個在洛克希德馬丁公司，我們也有一些知識。因此，測試單元對我們來說是一筆巨大的資產，而且業務是——該設施中可能有一個主要客戶，那裡有 30 多台發動機。因此，這對企業來說是一個很好的機會，可以提升和發展它，也可以讓我們進行額外的模塊交換，我們正在全力參與其中。我們還進行了一些非常棒的管理變動和招聘。我們有一些很棒的人。而且我認為為我們提供一個可以展示我們存儲、快速維修和模塊交換能力的物理位置是一個了不起的營銷工具。所以我們不能再興奮了。

Great. And then I guess just regarding the supply chain issues. When you listen to conference calls from Boeing, Airbus, they're all talking about it. Just wanted to get like a high level view, like your view as well of what is the problem and how long is this going to last? I mean do you see the supply chain issues lasting like well into next year or is this something that could be resolved this year? I know there's labor shortages, there's a whole bunch of issues that are contributing to it. But kind of your take on when do you think this could end and if that does -- when it does end, what's FTAI's strategy kind of? I mean just obviously this is a fantastic environment, but once things start to be better for the other guys, will there be kind of a strategic change for FTAI?

偉大的。然後我想只是關於供應鏈問題。當你聽到波音、空客的電話會議時，他們都在談論它。只是想獲得一個高層次的觀點，比如你的觀點以及問題是什麼以及這將持續多長時間？我的意思是，您是否認為供應鏈問題會持續到明年，或者這是否可以在今年解決？我知道存在勞動力短缺，有一大堆問題導致了這種情況。但是你認為這什麼時候可以結束，如果結束了——什麼時候結束，FTAI 的戰略是什麼？我的意思是很明顯這是一個很棒的環境，但是一旦其他人的情況開始好轉，FTAI 會不會有某種戰略變化？

Yes. It's a great question and it's something we think about and talk about all the time and it has some tremendous benefits for us. But it's a complex problem and I don't think it's going to be solved very quickly and every week we seem to hear about a new problem that no one thought about the prior week. So it's not slowing down, it's actually increasing. And the potential, many people are looking out to the summer when you have a lot of activity that there could be some significant challenges with people to get airplanes in the air because they're waiting on 1 or 2 parts and that's a real issue. So I think it's -- you hear about it from every participant in the spaces. And we've seen it also in our used serviceable material business where we sell used parts and there's particular parts that people just can't get or the lead time is 8 weeks.

是的。這是一個很好的問題，也是我們一直在思考和談論的問題，它對我們有一些巨大的好處。但這是一個複雜的問題，我認為它不會很快得到解決，每週我們似乎都會聽到一個前一周沒有人想到的新問題。所以它並沒有減慢，它實際上正在增加。還有潛力，很多人都在關注夏天，當你有很多活動時，人們可能會面臨一些重大挑戰，因為他們正在等待 1 或 2 個零件，因為他們正在等待 1 或 2 個零件，這是一個真正的問題。所以我認為這是 - 你從空間中的每個參與者那裡聽說過它。我們在二手可維修材料業務中也看到了這一點，我們銷售二手零件，有些零件是人們買不到的，或者交貨時間為 8 週。

And so that 1 single part could keep an engine in the shop for 8 weeks or could keep it from flying. So in that event, part prices have doubled and in some cases are tripled just in a matter of weeks because it doesn't matter the price. If you have an engine tied up for 2 months, the price of a part is irrelevant, you have to pay whatever it takes. So I think it's getting potentially worse and it could be a critical -- it could be a meaningful challenge for people this summer. But with us, I mean that's our whole pitch really is we can get engines up quickly repaired. The QuickTurn concept is instead of sending a whole engine in and waiting for repairs and parts, we could actually swap out a module and have that engine back in service in 2 weeks. And so having repaired inventory on the shelf is part of our whole strategy and I think it's perfect timing for that.

這樣一來，一個單獨的零件就可以使發動機在車間中使用 8 週，或者可以使其無法飛行。因此，在那種情況下，零件價格在幾週內翻了一番，在某些情況下甚至翻了三倍，因為價格無關緊要。如果您的發動機已停用 2 個月，那麼零件的價格無關緊要，您必須支付任何費用。所以我認為它可能會變得更糟，這可能是一個關鍵——這對今年夏天的人們來說可能是一個有意義的挑戰。但是對於我們來說，我的意思是我們的整個宣傳真的是我們可以快速修復引擎。 QuickTurn 的概念不是將整個引擎送去等待維修和零件，而是我們實際上可以更換一個模塊並讓該引擎在 2 週內重新投入使用。因此，修復貨架上的庫存是我們整個戰略的一部分，我認為這是一個完美的時機。

I think the longer-term consequence of this is that we hear a lot of airlines realizing that they cannot rely on a single supplier and be dependent upon a single supplier for anything. So again our business model is like you don't have to, we'll back you up. We're actually offering in some cases where we have perpetual power deals where we lease aircraft and engines, we'll put a spare on the ground in the airlines hangar so they could have access to a spare in case anything goes wrong and have it immediately. So all these challenges and all these things that are popping up, we have solutions and really we've gone from an environment where it felt like everything was working against us to where it feels now like everything is working for us.

我認為這樣做的長期後果是，我們聽到很多航空公司意識到他們不能依賴單一供應商，也不能依賴單一供應商來做任何事情。因此，我們的商業模式再次表明您不必這樣做，我們會為您提供支持。我們實際上在某些情況下提供永久電力交易，我們租賃飛機和發動機，我們會在航空公司機庫的地面上放置一個備用部件，以便他們可以在出現任何問題時使用備用部件並擁有它立即地。因此，所有這些挑戰和所有這些突然出現的事情，我們都有解決方案，實際上我們已經從一個感覺一切都對我們不利的環境轉變為現在感覺一切都對我們有利的環境。

Great. Thanks, Joe. That was pretty insightful.

偉大的。謝謝，喬。那是很有見地的。

Our next question comes from Frank Galanti with Stifel.

我們的下一個問題來自 Stifel 的 Frank Galanti。

Joe, I wanted to start on the leasing side. So when I look just sort of on a macro level based on IATA data, domestic available seat kilometers are down still 16% from 2019 levels. And so to that point, there's still a large area under the curve of engines or cycles that just weren't used due to the pandemic. Doesn't that imply that there is a significant number of engines sitting on the sidelines that can sort of be used as incremental planes start flying again and shouldn't that ultimately push utilization down and yields down at least in the near term?

喬，我想從租賃方面開始。因此，當我根據 IATA 數據從宏觀層面看時，國內可用座位公里數仍比 2019 年水平下降了 16%。因此，到目前為止，由於大流行而未使用的發動機或循環曲線下仍有很大一部分區域。這是否意味著有大量發動機處於觀望狀態，可以用作增量飛機再次開始飛行，這不應該最終降低利用率並至少在短期內降低產量嗎？

No. I mean first of all, I think that domestic narrowbody flying is globally at or above 2019 levels right now. So I think that with China reopening, that has -- China was a big negative on that number globally. But now that they've reopened, they're back to 2019 levels and actually I saw something that said February schedules in China were like up 10% from 2019. So that market has snapped back and globally the U.S. is above, I think United just said this week that they're planning to be above. The domestic business is up 30% and corporate -- leisure business is up 30% and corporate is 100% of what it was pre-COVID. So that's the first thing. There is still surplus aircraft that have been out of service and I think the number of -- I always look at the number of parked airplanes by type. So if you look at the 737 and A320, it's still a little bit above 10% and that's always been a key level. When you go below 10% and I think the lowest it's ever been is probably 3% or 4%, it starts to get very tight.

不，我的意思是，首先，我認為國內窄體機飛行目前在全球範圍內達到或超過 2019 年的水平。所以我認為隨著中國的重新開放，中國對全球的這一數字產生了很大的負面影響。但現在他們已經重新開放，他們又回到了 2019 年的水平，實際上我看到一些東西說中國 2 月份的時間表比 2019 年增加了 10%。所以這個市場已經反彈，在全球範圍內，美國在上面，我認為美聯航本周剛剛說他們計劃超越。國內業務增長了 30%，企業 - 休閒業務增長了 30%，企業是 COVID 之前的 100%。所以這是第一件事。仍然有多餘的飛機已經停止服務，我認為數量 - 我總是按類型查看停放飛機的數量。所以如果你看看 737 和 A320，它仍然略高於 10%，這一直是一個關鍵水平。當你低於 10% 時，我認為它的最低水平可能是 3% 或 4%，它開始變得非常緊張。

So we're still working through some of that and most of that has been A320s, which was caused by Europe I think being a little bit slower to recover in the travel market and being a heavy A320 fleet user. On the engine side, it's a very different dynamic because when COVID started, people stopped putting engines through shop visits. And so when you have engines that have green time, airline grabs those, puts them on an airplane and flies them until they need a shop visit and then they park it. So you don't have -- in particular if you look at the CFM56-7B market, which is the engine that flies on the 737 fleet, there's virtually no availability right now for that engine. So all the green time was used up so even though there's engines parked or the aircraft parked, those parked aircraft might have had their engines removed months ago and flown. So it's a very -- that's 1 of the things I like about the engine market is it's self-correcting on supply very quickly and that once you stop doing shop visits, you use up a lot of capacity and the supply drops roughly 15%, 20% a year.

所以我們仍在努力解決其中的一些問題，其中大部分是 A320，這是由歐洲造成的，我認為旅遊市場的複蘇速度有點慢，而且是 A320 機隊的重度用戶。在引擎方面，這是一個非常不同的動態，因為當 COVID 開始時，人們不再通過商店訪問來安裝引擎。因此，當您的引擎有綠色時間時，航空公司會抓住它們，將它們放在飛機上並讓它們飛行，直到他們需要去商店參觀，然後他們才會將其停放。所以你沒有 - 特別是如果你看看 CFM56-7B 市場，它是在 737 機隊上飛行的發動機，現在幾乎沒有該發動機的可用性。所以所有的綠燈時間都用完了，所以即使有發動機停放或飛機停放，那些停放的飛機可能在幾個月前就已經拆除了發動機並開始飛行。所以這是一個非常 - 這是我喜歡發動機市場的一件事是它可以非常快速地自我糾正供應並且一旦你停止進行商店訪問，你就會耗盡大量產能並且供應下降大約 15％，每年 20%。

Okay. That's really helpful. Shifting over to aerospace. You've been out there talking about a 2- to 4-year plan on the aerospace business reaching $500 million of EBITDA. I think first, can you sort of lay that out what that plan is? But sort to my question, let's say we get to the end of that 4-year plan we get to 2027, why wouldn't you hit that $500 million target? Why wouldn't you get there?

好的。這真的很有幫助。轉向航空航天。您一直在談論一項 2 到 4 年的航空航天業務計劃，使 EBITDA 達到 5 億美元。我想首先，你能說明一下那個計劃是什麼嗎？但是對於我的問題，假設我們已經完成了到 2027 年的 4 年計劃，你為什麼不達到 5 億美元的目標？你為什麼不去那裡？

I think it's just execution. We have to execute otherwise the market is there and the market environment is very helpful for, as I mentioned, what our products are and what we can do for airlines to save them money. We basically provide airlines with cost savings and flexibility and so that to me, is a good product. It's a differentiated product, no one else can offer it. So really it's just can we execute. In terms of the composition of the $500 million of EBITDA, what we talked about recently with you is that if we had 25 Module Factory users last year each doing 4 modules per customer and we're able to double the number of customers to 50 and double the number of modules per customer to 8, that's 400 modules per year and we're currently at 100 and we expect substantial growth this year.

我認為這只是執行。我們必須執行，否則市場就在那裡，市場環境非常有幫助，正如我提到的，我們的產品是什麼以及我們可以為航空公司做些什麼來節省他們的錢。我們基本上為航空公司提供了成本節約和靈活性，所以對我來說，這是一個很好的產品。這是一種差異化產品，沒有其他人可以提供。所以真的只是我們可以執行。就 5 億美元的 EBITDA 的構成而言，我們最近與您談到的是，如果我們去年有 25 個模塊工廠用戶，每個用戶為每個客戶做 4 個模塊，那麼我們能夠將客戶數量增加一倍，達到 50 個，並且將每個客戶的模塊數量增加一倍，達到 8 個，即每年 400 個模塊，我們目前是 100 個，我們預計今年會有大幅增長。

So we're on a path that would sort of get there if we continue that. And then profitability, currently we're at about $0.5 million per module and we expect that to double with PMA availability next year so that gets you $400 million of EBITDA from the Module Factory. We expect 50 or so teardowns a year through the AR and we generate about $1 million of profit per aircraft so that's $50 million and then we expect the JV with Chromalloy to generate 50. So that would be the -- that's an aspiration. It's not a forecast, but it's something we think about a lot and we keep refining and we feel good about the ability to get there.

因此，如果我們繼續這樣做，我們正走在某種程度上可以到達那裡的道路上。然後是盈利能力，目前我們每個模塊的利潤約為 50 萬美元，我們預計明年 PMA 的可用性將翻一番，這樣您就可以從模塊工廠獲得 4 億美元的 EBITDA。我們預計每年通過 AR 進行 50 次左右的拆解，我們每架飛機產生約 100 萬美元的利潤，即 5000 萬美元，然後我們預計與 Chromalloy 的合資企業將產生 50 次。這就是 - 這是一個願望。這不是預測，但我們考慮了很多，我們不斷完善，我們對實現目標的能力感到滿意。

Our next question comes from Brian McKenna with JMP Securities.

我們的下一個問題來自 JMP 證券公司的 Brian McKenna。

So it's great to see the strong quarter of asset purchases within leasing. But can you give us an update on where LOIs stand today? And then related, how should we think about the baseline level of gross asset purchases annually within the segment moving forward?

因此，很高興看到租賃中資產購買的強勁季度。但是您能否向我們介紹一下 LOI 目前的最新情況？然後相關的是，我們應該如何考慮未來細分市場內每年總資產購買的基準水平？

Yes. So on the second, I think we acquired over $600 million last year of new assets. Is that right, Angela? And we sold $250 million, $300 million?

是的。因此，第二，我認為我們去年獲得了超過 6 億美元的新資產。是這樣嗎，安吉拉？我們賣出了 2.5 億美元、3 億美元？

About $250 million.

約2.5億美元。

So that's in line with what we've been doing. The asset sales are a little bit higher and as we've talked, we intend to recycle capital more than we probably did years ago. But I think $500 million to $600 million of new acquisitions and $200 million to call it $300 million of asset sales is a reasonable expectation and we're starting off the year pretty strong. We don't -- we have a number of deals right now that we have verbal awards and handshakes and that are not fully documented, but that number totals a couple of hundred million and it's very much CFM56 focused. As a matter of fact, I think in total that's over 50 CFM56 engines. So we could see a meaningful growth in the CFM56 engine count in the first half of this year, which is great.

所以這與我們一直在做的一致。資產銷售略高，正如我們所說，我們打算比幾年前更多地回收資本。但我認為 5 億至 6 億美元的新收購和 2 億美元至 3 億美元的資產出售是一個合理的預期，我們今年的開局非常強勁。我們沒有——我們現在有很多交易，我們有口頭獎勵和握手，但沒有完整記錄，但這個數字總計幾億美元，而且非常關注 CFM56。事實上，我認為總共有超過 50 台 CFM56 發動機。因此，我們可以在今年上半年看到 CFM56 發動機數量的顯著增長，這很好。

Got it, helpful. And then congrats on the QuickTurn acquisition. I know it's small in the absolute, but there seems to be some pretty meaningful strategic benefits there. I'm curious though how are you thinking about incremental strategic M&A from here? Is there any white space across your business that you would look to fill via acquisitions or any M&A from here would really just be to expand into other adjacent businesses?

明白了，有幫助然後祝賀 QuickTurn 的收購。我知道它絕對很小，但那裡似乎有一些非常有意義的戰略利益。我很好奇你如何考慮從這裡開始的增量戰略併購？您的業務中是否存在您希望通過收購或任何併購來填補的空白，實際上只是為了擴展到其他相鄰業務？

We look at the whole ecosystem of the engine and I think that the 1 area where we are currently focused is repairs. So when we teardown an engine, a lot of the parts before they can be put on a new airplane have to be repaired and our spend last year was roughly $50 million so it's a pretty good amount of money. And so we're looking at the repair space and what repairs we do, what repairs other people do and what opportunities there might be for either M&A or organic development or just using our buying power to get better deals. So I'd say that's the current focus. But we are trying to be vertically integrated in every way we can on this engine and there's I think the size of the engine, the fact that it's a modular engine, the fact that the OEMs keep raising prices so nicely gives us -- it's just a huge opportunity.

我們著眼於發動機的整個生態系統，我認為我們目前關注的第一個領域是維修。因此，當我們拆解發動機時，很多部件在安裝到新飛機之前必須進行維修，我們去年的支出約為 5000 萬美元，所以這是一筆不小的數目。因此，我們正在研究維修空間以及我們進行的維修，其他人進行的維修以及併購或有機發展或僅利用我們的購買力獲得更好交易的機會。所以我想說這是當前的重點。但我們正試圖以各種方式垂直整合這款發動機，我認為發動機的尺寸、它是模塊化發動機這一事實、原始設備製造商不斷提高價格的事實給了我們——這只是一個巨大的機會。

Our next question comes from David Zazula with Barclays.

我們的下一個問題來自巴克萊銀行的 David Zazula。

To start off real quick, I was hoping you could provide an update on where you are with insurance recovery, what you've recovered so far and what planes are still outstanding?

為了真正快速開始，我希望您能提供有關保險恢復情況的最新信息，到目前為止您恢復了什麼以及哪些飛機仍然未完成？

Yes. So a couple of things. The assets we had in Ukraine are 4 aircraft and an engine, we're starting to move the engines out by truck. So we've begun the recovery on those assets and I expect that roughly we'll get about $30 million of assets out this year and we haven't decided fully whether we're going to lease those or sell those. So I think that's a partial solution. I think our book value on those was about $30 million. Our insured value is $70 million. And on that front the insurers have, as you probably are aware of, continued to be very uncooperative. So virtually every asset owner has filed lawsuits and we are not going to be different in that way, we're filing. We have filed 1 suit already and we're preparing the papers on the second. So we'll see what the judges say. Just it's been a bit frustrating that there is a lack of engagement by the insurers. But we believe that the assets were wrongfully taken and if that's what insurance is meant to cover, then we'll ultimately collect a meaningful amount of that. I think the total claim we filed is $270 million.

是的。所以有幾件事。我們在烏克蘭擁有的資產是 4 架飛機和一個發動機，我們開始用卡車將發動機運出。因此，我們已經開始恢復這些資產，我預計今年我們將大致獲得約 3000 萬美元的資產，我們還沒有完全決定是要出租還是出售這些資產。所以我認為這是一個部分解決方案。我認為我們的賬面價值約為 3000 萬美元。我們的保險價值為 7000 萬美元。在這方面，您可能已經意識到，保險公司一直非常不合作。所以幾乎每個資產所有者都提起了訴訟，我們不會以這種方式有所不同，我們正在提起訴訟。我們已經提起了一項訴訟，正在準備第二項的文件。所以我們將看看評委們怎麼說。只是保險公司缺乏參與有點令人沮喪。但我們認為這些資產是被錯誤地拿走的，如果這是保險的目的，那麼我們最終會收集到相當數量的資產。我想我們提出的索賠總額是 2.7 億美元。

That's helpful. And then, Joe, I mean earlier you talked I think about increased velocity of capital through there. Hoping post the QuickTurn facility, you could unpack that a little bit and talk about how that acquisition might impact in a little more detail your capital velocity and intensity?

這很有幫助。然後，喬，我的意思是早些時候你談到我考慮通過那裡提高資本速度。希望在發布 QuickTurn 設施後，您可以稍微拆開包裝並談談此次收購可能如何更詳細地影響您的資本速度和強度？

Well, there's 2 areas for that. One is in the leasing segment, we've talked about selling more assets and recycling the capital and in particular we've got 2 deals; 1 of which is fully closed, another which is in the process of closing; where we're selling the leased asset at a gain and retaining the engine management services contract where we'll make about $1 million per aircraft per year for the maintenance of those engines. And so that's something we want to do more of and we have some other deals in the pipeline. So in terms of the leasing portfolio, as I said, we've typically bought $500 million to $600 million of new assets a year and we expect to sell $200 million to $300 million of those each year. So that generates gains and it also allows us in some cases to keep the maintenance contract, which is a great outcome is to keep the best part of the deal and make a gain. So that's on the leasing side and that will continue.

那麼，有 2 個區域。一是在租賃領域，我們談到了出售更多資產和回收資本，特別是我們已經達成了兩筆交易；其中1個已完全關閉，1個正在關閉中；我們以收益出售租賃資產並保留發動機管理服務合同，我們將為每架飛機每年賺取約 100 萬美元用於維護這些發動機。所以這是我們想要做的更多的事情，我們還有一些其他的交易正在籌備中。因此，就租賃組合而言，正如我所說，我們通常每年購買 5 億至 6 億美元的新資產，我們預計每年出售 2 億至 3 億美元的新資產。因此，這會產生收益，並且在某些情況下還允許我們保留維護合同，這是一個很好的結果，即保留交易的最佳部分並獲得收益。所以這是在租賃方面，而且會繼續下去。

And I think we've got a good sense of how to create value, how to buy things off-lease, put them on lease and then sell them. On the Module Factory, I think we currently operate with about $150 million of inventory and as we grow that business that was doing 100 modules last year, we expect that that will turn significantly faster. So as we grow from 100 to 400, it's not going to go up 4x. It should go up very modestly because we expect we can turn inventory. As we get larger and create more options, we'll turn that inventory a lot faster. So I expect that if we were to do 400 modules a year, our expectation is that we would need $200 million to $250 million of inventory to do that to support that and it is facilitated by QuickTurn having the ability to deliver. Swap a low-pressure turbine or swap a fan in under 2 weeks is a product that no one has in the market today. No one can do that.

而且我認為我們對如何創造價值、如何購買租賃物、出租它們然後出售它們有了很好的認識。在模塊工廠，我認為我們目前運營著大約 1.5 億美元的庫存，隨著我們去年生產 100 個模塊的業務的增長，我們預計這將大大加快。所以當我們從 100 增長到 400 時，它不會增長 4 倍。它應該會非常溫和地上漲，因為我們預計我們可以扭轉庫存。隨著我們變得更大並創造更多選擇，我們將更快地周轉該庫存。所以我預計，如果我們每年生產 400 個模塊，我們的預期是我們需要 2 億到 2.5 億美元的庫存來支持這一點，而 QuickTurn 有能力交付。在 2 週內更換低壓渦輪機或風扇是當今市場上沒有的產品。沒有人能做到這一點。

Our next question comes from (inaudible) with BTIG.

我們的下一個問題來自（聽不清）BTIG。

Could you talk a little bit about the different nature of shop visits at QuickTurn compared to the Montreal facility? And more broadly, could you talk about why are hospital visits becoming more popular?

與蒙特利爾工廠相比，您能否談談 QuickTurn 的車間訪問的不同性質？更廣泛地說，你能談談為什麼去醫院就診越來越受歡迎嗎？

Sure. Good question. So what we do in Montreal at Lockheed Martin is performance restoration. And so if you think about an engine, that engine is taken to rebuild that engine -- if it has say only a 1,000 cycles left to fly or 100 cycles left or hour supply, you need to rebuild that to north of 10,000 cycles. In order to do that, you literally have to take the entire engine apart and every piece is inspected either visually or by machine and some are replaced, some are repaired and then the whole engine gets reassembled and it takes months and it costs millions of dollars. The current OEM estimate on the CFM56 is $6 million for that engine. This in many cases more than we paid for it in the first place. And that goes up every year because they raise the parts prices 10% or in the last year they raised all the life limited part prices 13%. So that's what you do in Montreal and it has to be done every so often because you have regulations and limits on how long an engine can go before it needs that to be done to it.

當然。好問題。所以我們在蒙特利爾的洛克希德馬丁公司所做的是性能恢復。因此，如果您考慮一個引擎，該引擎將被用於重建該引擎——如果它說只剩下 1,000 個循環可以飛行或僅剩 100 個循環或小時供應，您需要將其重建到超過 10,000 個循環。為了做到這一點，您實際上必須拆開整個發動機，並通過目視或機器檢查每一件，更換一些，修理一些，然後重新組裝整個發動機，這需要幾個月的時間，耗資數百萬美元.目前 OEM 對該發動機的 CFM56 估計為 600 萬美元。在許多情況下，這比我們最初支付的要多。而且每年都在上漲，因為他們將零件價格提高了 10%，或者在去年他們將所有生命有限的零件價格提高了 13%。所以這就是你在蒙特利爾所做的事情，而且必須經常這樣做，因為你有規定和限制發動機在需要這樣做之前可以運行多長時間。

The second shop visit is -- and I recommend you go to our website quickturnengines.com and it lays out the hospital shop visit some of the things we do. And that's often case just something needs to be repaired. A fan blade needs to be repaired, bearings need to be replaced, a low pressure turbine gearbox has to be replaced and those repairs can be done very quickly and you could also do it with a module swap. If you had to replace just the fan, you could swap a new fan on and take the old fan off and do that in 5 to 10 days. And a lot of airlines have -- if they have a large fleet of CFM56 engines, they are expressly trying to avoid that first shop visit that I described that takes months and cost millions of dollars. And in many cases you can do that with hospital shop visits only repairing 1 section of the engine or bringing 1 section of the engine up to a higher number of hours and cycles available and keep that engine flying longer.

第二次商店訪問是——我建議您訪問我們的網站 quickturnengines.com，它列出了醫院商店訪問我們所做的一些事情。通常情況下只是需要修理一些東西。風扇葉片需要維修，軸承需要更換，低壓渦輪齒輪箱需要更換，這些維修可以很快完成，您也可以通過模塊交換來完成。如果您只需要更換風扇，您可以換上新風扇並取下舊風扇，並在 5 到 10 天內完成。許多航空公司都有——如果他們擁有大量 CFM56 發動機，他們明確地試圖避免我所描述的需要數月時間並花費數百萬美元的第一次商店訪問。在許多情況下，您可以做到這一點，只需去醫院維修，只修理髮動機的 1 個部分，或使發動機的 1 個部分達到更高的可用小時數和循環次數，並使發動機飛行更長時間。

And so the hospital shop visit market today is about 40% of all shop visits and it's projected over the next 6 years to become about 60% of all shop visits. It partially happens as the fleet ages, people are more cannibalizing what they have and less doing full restorations in any event. So that's really the difference and that's what QuickTurn is focused on is that hospital shop visit market. The other reason why it's helpful to have it in a separate facility is that if you run a big MRO shop and an engine comes in, your motivation or your inclination is to find lots of things to fix. So if you have an engine that goes into an MRO, oftentimes you'll end up with a bill that's multiples of what you thought it was going to be because people find things. It's like if you took your car in and you didn't tell the mechanic to inspect the brakes, but they did anyway and they probably say you need a new pair of brakes and who could say no. So it's better to have a hospital shop in a separate facility where the orientation and motivation is to do what the customer wanted to have done and get it back in service quickly obviously safely, but quickly.

因此，今天的醫院商店訪問市場約佔所有商店訪問量的 40%，預計在未來 6 年內將佔所有商店訪問量的 60% 左右。隨著船隊的老化，它部分發生了，人們越來越多地蠶食他們擁有的東西，而在任何情況下都很少進行全面修復。所以這就是真正的區別，而 QuickTurn 關注的是醫院商店訪問市場。將它放在一個單獨的設施中有幫助的另一個原因是，如果您經營一家大型 MRO 車間並且一台發動機進來了，您的動機或傾向是要找到很多東西來修理。因此，如果您有一個引擎進入 MRO，通常您最終會收到比您認為的數倍的賬單，因為人們會找到東西。這就像如果你把車開進去，你沒有告訴機械師檢查剎車，但他們還是做了，他們可能會說你需要一對新的剎車，誰能拒絕。因此，最好在一個單獨的設施中開設一家醫院商店，其定位和動機是做客戶想做的事情，並迅速、安全、迅速地恢復服務。

Our next question comes from Robert Dodd with Raymond James.

我們的下一個問題來自 Robert Dodd 和 Raymond James。

On leverage if I can, obviously in the presentation I mean you point out that net debt to adjusted EBITDA is about 4.3x. You want to get it to 3x, 4x. It might be into that range by maybe Q1 or could be at the lower end of that range towards the end of the year even. As you said, you don't need a lot of extra capacity for modules and you've got a lot of cash flow even after the dividend and after maintenance CapEx, et cetera. So what are the other options for you? I mean are you explicitly going to pay down debt, invest even more in assets? But you already gave us some guidance on what you plan to do on that front. So what's the thoughts on utilization of the cash flow that you're going to be generating this year given leverage is coming down on that?

如果可以的話，在槓桿方面，顯然在演示文稿中我的意思是你指出淨債務與調整後的 EBITDA 之比約為 4.3 倍。你想把它提高到 3 倍、4 倍。它可能會在第一季度進入該範圍，甚至可能在年底時處於該範圍的低端。正如你所說，你不需要很多額外的模塊容量，即使在分紅和維護資本支出等之後，你也有很多現金流。那麼，您還有哪些其他選擇？我的意思是你是否明確要償還債務，投資更多資產？但是您已經就您計劃在這方面做的事情向我們提供了一些指導。那麼，鑑於槓桿率正在下降，您對今年將產生的現金流量的利用有何想法？

Yes. So we've talked we do want to get the leverage to the point where we're a strong [DD] and I think if we achieve those numbers this year, we will achieve that goal. So that would accomplish that, which I think is great. We are always looking for good assets to buy and CFM56s are, as you can tell, our passion. So that could present opportunities for additional capital. Beyond that, I think we would look to dividends, share repurchases and they're all in the mix.

是的。所以我們已經說過，我們確實希望獲得影響力，使我們成為強大的[DD]，我認為如果我們今年實現這些數字，我們將實現這一目標。這樣就可以實現這一目標，我認為這很棒。我們一直在尋找可購買的優質資產，而正如您所知，CFM56 是我們的熱情所在。因此，這可能會帶來獲得額外資本的機會。除此之外，我認為我們會關注股息、股票回購，它們都在其中。

I mean on the prospect for say dividend versus buyback, how would you allocate? What would your thoughts be on the relative value of each of those to normalize the allocation priority if it gets to having that much excess capital?

我的意思是關於股息與回購的前景，你會如何分配？如果要擁有如此多的過剩資本，您對每一個的相對價值有何看法，以使分配優先級正常化？

Well, obviously it will be a function of the share price and what we think the prospects are for the business going forward. I think that that will drive. The dividend, you know what you get. The share buyback is a function of the price.

好吧，顯然這將取決於股價以及我們認為未來業務的前景。我認為那會推動。股息，你知道你得到了什麼。股票回購是價格的函數。

At this time, I show no further questions. I would now like to turn the conference back over to Alan Andreini for closing remarks.

此時，我沒有進一步提問。我現在想把會議轉回給 Alan Andreini 作閉幕詞。

Thank you, Michelle, and thank you all for participating in today's conference call. We look forward to updating you after Q1.

謝謝米歇爾，感謝大家參加今天的電話會議。我們期待在第一季度後為您更新。

This concludes today's conference call. Thank you for participating. You may now disconnect.

今天的電話會議到此結束。感謝您的參與。您現在可以斷開連接。