Bullboard - Stock Discussion Forum Exchange Income Corp T.EIF

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

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. Its Essential Air Services includes both fixed wing and rotary wing operations... see more

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TSX:EIF - Post Discussion

Exchange Income Corp > RBC

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Post by retiredcf on Feb 23, 2024 8:54am

RBC

February 22, 2024

Exchange Income Corporation
Q4 results in line and 2024 guide maintained

TSX: EIF | CAD 46.79 | Outperform | Price Target CAD 65.00

Sentiment: Neutral

Our view: EIF today reported Q4 results that were in line with consensus expectations. The company also maintained its 2024 EBITDA guidance, and we therefore view the results as neutral to sentiment. We do highlight however that FCF (less maintenance capex) came in well ahead of our expectations. FCF in 2023 of $202MM represents a 10% FCF yield on a trailing basis, a positive takeaway, in our view, especially within the context of what we see as solid growth into 2024 and 2025 on the back of previously announced contract wins. Key focus for us tomorrow on the call will be an update on the underlying macro assumptions underpinning guidance as well as on the outlook for Northern Mat.

Q4/23 results in line with consensus expectations. EIF reported Q4/23 adjusted EBITDA of $144MM, in line with consensus $143M (RBCe: $141MM). See Exhibit 1.

Aviation EBITDA above. Aviation EBITDA of $109MM was ahead of our $106MM estimate.
Manufacturing EBITDA in line. Manufacturing EBITDA of $45MM was in line with our $45MM estimate.
2024 guidance maintained. Management reaffirmed 2024 guidance for adjusted EBITDA of $600–635MM, which brackets consensus $625MM (RBCe: $624MM). See Exhibit 2.

Conference call

• Friday, February 23, at 8:30AM ET • Dial-in: 1-888-886-7786