CMQ for sale?

Discussion of present-day CM&Q operations, as well as discussion of predecessors Montreal, Maine & Atlantic Railway (MMA) and Bangor & Aroostook Railroad (BAR).

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NHV 669
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Re: CMQ for sale?

Post by NHV 669 » Tue Mar 05, 2019 7:17 pm

A Google search indicates that one of their investment arms has a stock that had its rating dropped to "sell", but mentions nothing about the RR itself.

https://www.baseballdailydigest.com/new ... earch.html

Boredom tends to create false rumors.
Casey

NHVT 669 sits at the south end of the "Pompy" line in White River Jct., VT on 4/29/1993. Photo by Richard Roberg.

CN9634
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Re: CMQ for sale?

Post by CN9634 » Tue Mar 05, 2019 7:51 pm

You know you need to actually look at the investor presentations right? I'll save you time, here is the transcript:

https://www.fool.com/earnings/call-tran ... vesto.aspx
Last edited by MEC407 on Wed Oct 09, 2019 12:48 pm, edited 1 time in total.
Reason: unnecessary quoting

backroadrails
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Re: CMQ for sale?

Post by backroadrails » Tue Mar 05, 2019 8:00 pm

Here is a little bit confirmation of the sale by a analyst, I do realize that he mentions "potential" but this could very well back up the statements made on Facebook.
Robert Dodd -- Raymond James -- Analyst
Hi guys. I mean, you actually covered the reverse question. My question is, it looks like you may end up with excess capital at the parent, right, because funding the infrastructure units -- at each individual unit with non-recourse, but then if you have 200 coming in from -- 200-plus coming in from the sale of the stake in Long Ridge, potentially the sale of CMQR and maybe shipping or offshore, but maybe that's next year. And then when we look at the Aviation business with the FAD run rate, the potential to recycle assets, I mean the -- even the Aviation business may not need much additional capital from the parent this year versus what it can generate itself.
The question, I guess, is, you did mention that for Long Ridge the -- coming back, we go to the Aviation business. So is the plan to accelerate the growth of the Aviation business or are there other also -- other opportunities you're looking at in infrastructure? Obviously, if you can arbitrage 4 times development to 15 times sale, that's a pretty good place to put capital, but obviously it's a longer-term process as well. So can you talk us through the thoughts there?

CN9634
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Re: CMQ for sale?

Post by CN9634 » Tue Mar 05, 2019 8:24 pm

Go back and review the last few investor calls (hint there are 4 earnings calls in a year)... I'm running out of bread crumbs without giving it away.
Last edited by MEC407 on Wed Oct 09, 2019 12:48 pm, edited 1 time in total.
Reason: unnecessary quoting

Zeke
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Re: CMQ for sale?

Post by Zeke » Sun Mar 10, 2019 8:56 pm

If I am reading this correctly the CMQ is producing 10 mil revenue before EBITDA ? Anyone recall what Fortress paid for CMQ ? IIRC 20 mil ?

Cowford
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Re: CMQ for sale?

Post by Cowford » Mon Mar 11, 2019 1:30 pm

If I am reading this correctly...
No. Management is forecasting $10M EBITDA in 2019, which includes $3M from the car cleaning operation, so $7M for CMQ. Some would call this is a long putt. CMQ finished 2018 at $6.2M, but that includes ~$2M in reroute gravy from when SLR had a bridge washout last spring.

Shortline614
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Re: CMQ for sale?

Post by Shortline614 » Mon Mar 11, 2019 3:17 pm

What is the possibility of the CMQ being purchased by Pan Am? When the MM&A was being sold in 2014, the Maine Eastern Railway and Pan Am owned Springfield Terminal put out a bid. I could see the CMQ being sold to either one or more neighboring railroads, instead of a holding company like G&W or WATCO. I can't see CP buying the CMQ, mostly because the railroad no longer goes to St. John and the prohibition of transport of dangerous materials through Lac-Mégantic prevents any transport of crude oil by rail.
C&O: George Washington's Railroad!

CN9634
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Re: CMQ for sale?

Post by CN9634 » Mon Mar 11, 2019 4:23 pm

What prohibition are you referring to? UN 1075 and other hazmats regularly traverse the town.

CP has haulage/commercial rights to Saint John and there are numerous developments in SJ which could peak a Class I interest (not saying they are interested or not necessarily but they are aware of SJ)

EMRY and Pan Am bid on a small leg from BJCT to Searsport, I doubt Pan Am would want the entirety of CMQ, but a sale of multiple pieces of RR is possible. However, my thoughts are such a sale would be unlikely given the current state of the RR is pretty stable with some potential on bridge traffic pending developments in Eastern Canada.
Last edited by MEC407 on Wed Oct 09, 2019 12:49 pm, edited 1 time in total.
Reason: unnecessary quoting

CN9634
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Re: CMQ for sale?

Post by CN9634 » Tue Mar 12, 2019 4:34 pm

Interesting news on both fronts, skip to the end for the CMQ bit, but some GWI stuff too.

http://trn.trains.com/news/news-wire/20 ... of-company" onclick="window.open(this.href);return false;

troffey
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Re: CMQ for sale?

Post by troffey » Wed Mar 20, 2019 4:25 pm

Isn't there a restriction on sale of CMQ from the bankruptcy proceedings? I feel like we've discussed this before but I couldn't find the specifics.

KSmitty
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Re: CMQ for sale?

Post by KSmitty » Wed Mar 20, 2019 5:52 pm

IIRC, there was a waiting period, X amount of time between the auction and any potential sale where the trustee could intervene, I believe that was 3 years but may have been 5. Either way it has since expired.
Last edited by MEC407 on Wed Mar 27, 2019 10:31 am, edited 1 time in total.
Reason: unnecessary quoting

troffey
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Re: CMQ for sale?

Post by troffey » Fri Mar 22, 2019 7:35 pm

Thank you. I didn't realize that the restriction was expired.

CN9634
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Re: CMQ for sale?

Post by CN9634 » Wed Oct 09, 2019 11:14 am

A sale is being finalized now, details to be announced shortly with conclusion by January.

I’ve heard many scenarios, one involves two suitors splitting the property. Like most things, only time will tell but my understanding is going to be possibly a very interesting result.

roberttosh
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Re: CMQ for sale?

Post by roberttosh » Wed Oct 09, 2019 4:26 pm

That’s interesting. I’m trying to think how it could possibly be split up, maybe Irving getting the section from Brownville to Millinocket? Not many other practical scenarios come to mind unless they’re abandoning the old CP across Maine.

CN9634
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Re: CMQ for sale?

Post by CN9634 » Wed Oct 09, 2019 4:51 pm

Think Canada and US split.... I won't name names but it's an interesting scenario if it happens, which I think makes sense. It would certainly strengthen connections in this part of the world I think and open up some new opportunities.

Again-- we wait and see.

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