Exchange Income Corp T.EIF

Alternate Symbol(s): T.EIF.DB.J | T.EIF.DB.K | T.EIF.DB.L | T.EIF.DB.M | EIFZF

Industrials Airlines

Exchange Income Corporation is a Canada-based diversified acquisition-oriented company. The Company operates through two segments: Aerospace & Aviation and Manufacturing. The Aerospace & Aviation segment is comprised of three lines of business: Essential Air Services, Aerospace, and Aircraft Sales & Leasing. Essential Air Services includes both fixed wing and rotary wing operations. Aerospace includes its vertically integrated aerospace offerings that provide customized and integrated special mission aircraft solutions primarily to governments across the globe. Aircraft Sales & Leasing includes aftermarket aircraft, engine and parts sales and aircraft and engine leasing, along with aircraft management services. The Manufacturing segment is comprised of three lines of business: Environmental Access Solutions, Multi-Storey Window Solutions and Precision Manufacturing & Engineering. The Company also focuses on portable hydronic (glycol-based) climate-controlled equipment.

TSX:EIF - Post by User

Exchange Income Corp

<< Previous

Bullboard Posts

Next >>

Post by retiredcfon Jun 05, 2023 9:06am

156 Views

Post# 35480057

More RBC

June 2, 2023

Exchange Income Corporation
EIF wins Fixed Wing Air Ambulance contract in B.C.

TSX: EIF | CAD 53.65 | Outperform | Price Target CAD 66.00

Sentiment: Positive

Our view. BC Emergency Health Services has announced that Carson Air (EIF subsidiary) has won the Fixed Wing Air Ambulance contract. This is a very important positive for EIF and will be a key driver of growth into 2024 and 2025. Recall that during EIF's Q1 call mgmt guided to 2024 EBITDA of $600MM (cons. $618MM), which implies +15% EBITDA CAGR 2022-24 (the shares trade at 7x forward EV/EBITDA by the way). Since then, the company has signed an LOI to provide regional service in Eastern Canada on behalf of Air Canada, with expected EBITDA contribution of $15MM annually (further upside to guidance). We had previously thought the Fixed Wing Air Ambulance contract would represent a $200MM investment, and assuming 20% EBITDA returns (in line with historical) this implies EBITDA of $40MM (even more upside to guidance). However, on the BC government website the contract value, which includes the estimated value of any options to extend or renew the contract, is for $673MM. This would imply a much larger EBITDA contribution, and we will look to follow up with management Monday morning. Overall, another very positive agreement for Exchange, and we continue to really like the shares at today's levels.