NEW YORK, Nov. 01, 2022 (GLOBE NEWSWIRE) -- FTAI Infrastructure Inc. (NASDAQ: FIP) (the โCompanyโ or โFTAI Infrastructureโ) today reported financial results for the third quarter 2022. The Companyโs consolidated comparative financial statements and key performance measures are attached as an exhibit to this press release.
Financial Overview
| (in thousands, except per share data) | |||
| Selected Financial Results | Q3โ22 | ||
| Net Loss Attributable to Stockholders | $ | (44,076 | ) |
| Basic Loss per Common Share | $ | (0.43 | ) |
| Diluted Loss per Common Share | $ | (0.43 | ) |
| Adjusted EBITDA(1) | $ | 26,104 | ย |
| Adjusted EBITDA Four core segments (1)(2)ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย | $ | 33,222 | ย |
_______________________________
(1)ย ย ย For definitions and reconciliations of non-GAAP measures, please refer to the exhibit to this press release.
(2)ย ย ย Excludes Sustainability and Energy Transition and Corporate and Other segments
Third Quarter 2022 Dividends
On October 31, 2022, the Companyโs Board of Directors (the โBoardโ) declared a cash dividend on its common shares of $0.03 per share for the quarter ended September 30, 2022, payable on November 28, 2022 to the holders of record on November 14, 2022.
Business Highlights
โข Sequential adjusted EBITDA growth of 25% for FIPโs core segments(1) from Q2 to Q3
โขย Renewed existing Exxon contract at Jefferson Terminal for shipment of refined products to Mexico for a new five-year term
โข Purchased 12,000 acres in West Virginia for further development of gas reserves for Long Ridge
(1) Excludes Sustainability and Energy Transition and Corporate and Other segments. This is a Non-GAAP measure. See Reconciliation of Non-GAAP Measures section in Appendix for a reconciliation to the most comparable GAAP measure.
Additional Information
For additional information that management believes to be useful for investors, please refer to the presentation posted on the Investor Relations section of the Companyโs website, www.fipinc.com, and the Companyโs Quarterly Report on Form 10-Q, when available on the Companyโs website. Nothing on the Companyโs website is included or incorporated by reference herein.
Conference Call
In addition, management will host a conference call on Wednesday, November 2, 2022 at 8:00 A.M. Eastern Time. The conference call may be accessed by registering via the following link https://register.vevent.com/register/BI0bfdb1631805427882e40199b988477a. Once registered, participants will receive a dial-in and unique pin to access the call.
A replay of the conference call will be available after 11:30 A.M. on Wednesday, November 2, 2022 through 11:30 A.M. on Wednesday, November 9, 2022 on https://ir.fipinc.com/news-events/presentations.
The information contained on, or accessible through, any websites included in this press release is not incorporated by reference into, and should not be considered a part of, this press release.
About FTAI Infrastructure Inc.
FTAI Infrastructure primarily invests in critical infrastructure with high barriers to entry across the rail, ports and terminals, and power and gas sectors that, on a combined basis, generate strong and stable cash flows with the potential for earnings growth and asset appreciation. FTAI Infrastructure is externally managed by an affiliate of Fortress Investment Group LLC, a leading, diversified global investment firm.
Cautionary Note Regarding Forward-Looking Statements
Certain statements in this press release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and beliefs and are subject to a number of trends and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements, many of which are beyond the Companyโs control. The Company can give no assurance that its expectations will be attained and such differences may be material. Accordingly, you should not place undue reliance on any forward-looking statements contained in this press release. For a discussion of some of the risks and important factors that could affect such forward-looking statements, see the sections entitled โRisk Factorsโ and โManagementโs Discussion and Analysis of Financial Condition and Results of Operationsโ in the Companyโs most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, which are available on the Companyโs website (www.fipinc.com). In addition, new risks and uncertainties emerge from time to time, and it is not possible for the Company to predict or assess the impact of every factor that may cause its actual results to differ from those contained in any forward-looking statements. Such forward-looking statements speak only as of the date of this press release. The Company expressly disclaims any obligation to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company's expectations with regard thereto or change in events, conditions or circumstances on which any statement is based. This release shall not constitute an offer to sell or the solicitation of an offer to buy any securities.
For further information, please contact:
Alan Andreini
Investor Relations
FTAI Infrastructure Inc.
(646) 734-9414
aandreini@fortress.com
Exhibit - Financial Statements
FTAI INFRASTRUCTURE INC.
CONSOLIDATED AND COMBINED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
(Dollar amounts in thousands, except share and per share data)
| ย | Three Months Ended September 30, | ย | Nine Months Ended September 30, | ||||||||||||
| ย | ย | 2022 | ย | ย | ย | 2021 | ย | ย | ย | 2022 | ย | ย | ย | 2021 | ย |
| Revenues | ย | ย | ย | ย | ย | ย | ย | ||||||||
| Total revenues | $ | 78,559 | ย | ย | $ | 36,788 | ย | ย | $ | 190,575 | ย | ย | $ | 72,674 | ย |
| ย | ย | ย | ย | ย | ย | ย | ย | ||||||||
| Expenses | ย | ย | ย | ย | ย | ย | ย | ||||||||
| Operating expenses | ย | 60,934 | ย | ย | ย | 32,088 | ย | ย | ย | 148,231 | ย | ย | ย | 66,206 | ย |
| General and administrative | ย | 3,208 | ย | ย | ย | 2,508 | ย | ย | ย | 8,136 | ย | ย | ย | 6,173 | ย |
| Acquisition and transaction expenses | ย | 2,754 | ย | ย | ย | 5,342 | ย | ย | ย | 15,862 | ย | ย | ย | 8,860 | ย |
| Management fees and incentive allocation to affiliate | ย | 2,659 | ย | ย | ย | 3,829 | ย | ย | ย | 9,885 | ย | ย | ย | 11,244 | ย |
| Depreciation and amortization | ย | 18,136 | ย | ย | ย | 17,131 | ย | ย | ย | 52,451 | ย | ย | ย | 38,900 | ย |
| Total expenses | ย | 87,691 | ย | ย | ย | 60,898 | ย | ย | ย | 234,565 | ย | ย | ย | 131,383 | ย |
| ย | ย | ย | ย | ย | ย | ย | ย | ||||||||
| Other income (expense) | ย | ย | ย | ย | ย | ย | ย | ||||||||
| Equity in losses of unconsolidated entities | ย | (12,080 | ) | ย | ย | (1,545 | ) | ย | ย | (47,982 | ) | ย | ย | (8,810 | ) |
| (Loss) gain on sale of assets, net | ย | (134 | ) | ย | ย | โ | ย | ย | ย | (134 | ) | ย | ย | 16 | ย |
| Interest expense | ย | (19,161 | ) | ย | ย | (4,384 | ) | ย | ย | (32,106 | ) | ย | ย | (9,396 | ) |
| Other expense | ย | (1,132 | ) | ย | ย | (6,244 | ) | ย | ย | (2,144 | ) | ย | ย | (6,855 | ) |
| Total other expense | ย | (32,507 | ) | ย | ย | (12,173 | ) | ย | ย | (82,366 | ) | ย | ย | (25,045 | ) |
| Loss before income taxes | ย | (41,639 | ) | ย | ย | (36,283 | ) | ย | ย | (126,356 | ) | ย | ย | (83,754 | ) |
| Provision for (benefit from) income taxes | ย | 1,555 | ย | ย | ย | (1,634 | ) | ย | ย | 5,086 | ย | ย | ย | (2,755 | ) |
| Net loss | ย | (43,194 | ) | ย | ย | (34,649 | ) | ย | ย | (131,442 | ) | ย | ย | (80,999 | ) |
| Less: Net loss attributable to non-controlling interests in consolidated subsidiaries | ย | (8,381 | ) | ย | ย | (7,363 | ) | ย | ย | (24,327 | ) | ย | ย | (18,949 | ) |
| Less: Dividends and accretion on redeemable preferred stock | ย | 9,263 | ย | ย | ย | โ | ย | ย | ย | 9,263 | ย | ย | ย | โ | ย |
| Net loss attributable to Shareholders and Former Parent | $ | (44,076 | ) | ย | $ | (27,286 | ) | ย | $ | (116,378 | ) | ย | $ | (62,050 | ) |
| ย | ย | ย | ย | ย | ย | ย | ย | ||||||||
| Loss per share: | ย | ย | ย | ย | ย | ย | ย | ||||||||
| Basic | $ | (0.43 | ) | ย | $ | (0.27 | ) | ย | $ | (1.13 | ) | ย | $ | (0.62 | ) |
| Diluted | $ | (0.43 | ) | ย | $ | (0.27 | ) | ย | $ | (1.13 | ) | ย | $ | (0.62 | ) |
| Weighted average shares outstanding: | ย | ย | ย | ย | ย | ย | ย | ||||||||
| Basic | ย | 102,730,033 | ย | ย | ย | 99,387,467 | ย | ย | ย | 102,730,033 | ย | ย | ย | 99,387,467 | ย |
| Diluted | ย | 102,730,033 | ย | ย | ย | 99,387,467 | ย | ย | ย | 102,730,033 | ย | ย | ย | 99,387,467 | ย |
FTAI INFRASTRUCTURE INC.
CONSOLIDATED AND COMBINED CONSOLIDATED BALANCE SHEETS (Unaudited)
(Dollar amounts in thousands, except share and per share data)
| ย | September 30, 2022 | ย | December 31, 2021 | ||||
| Assets | ย | ย | ย | ||||
| Current assets: | ย | ย | ย | ||||
| Cash and cash equivalents | $ | 69,465 | ย | ย | $ | 49,872 | ย |
| Restricted cash | ย | 127,166 | ย | ย | ย | 251,983 | ย |
| Accounts receivable, net | ย | 78,136 | ย | ย | ย | 50,301 | ย |
| Other current assets | ย | 77,769 | ย | ย | ย | 60,828 | ย |
| Total current assets | ย | 352,536 | ย | ย | ย | 412,984 | ย |
| Leasing equipment, net | ย | 35,183 | ย | ย | ย | 36,012 | ย |
| Operating lease right-of-use assets, net | ย | 70,567 | ย | ย | ย | 71,547 | ย |
| Property, plant, and equipment, net | ย | 1,641,373 | ย | ย | ย | 1,517,594 | ย |
| Investments | ย | 74,528 | ย | ย | ย | 54,408 | ย |
| Intangible assets, net | ย | 62,081 | ย | ย | ย | 67,737 | ย |
| Goodwill | ย | 263,106 | ย | ย | ย | 257,137 | ย |
| Other assets | ย | 26,094 | ย | ย | ย | 24,882 | ย |
| Total assets | $ | 2,525,468 | ย | ย | $ | 2,442,301 | ย |
| ย | ย | ย | ย | ||||
| Liabilities | ย | ย | ย | ||||
| Current liabilities: | ย | ย | ย | ||||
| Accounts payable and accrued liabilities | $ | 150,857 | ย | ย | $ | 115,634 | ย |
| Operating lease liabilities | ย | 7,221 | ย | ย | ย | 2,899 | ย |
| Other current liabilities | ย | 13,710 | ย | ย | ย | 10,934 | ย |
| Total current liabilities | ย | 171,788 | ย | ย | ย | 129,467 | ย |
| Debt, net | ย | 1,191,885 | ย | ย | ย | 718,624 | ย |
| Operating lease liabilities | ย | 62,410 | ย | ย | ย | 67,505 | ย |
| Other liabilities | ย | 291,579 | ย | ย | ย | 64,659 | ย |
| Total liabilities | ย | 1,717,662 | ย | ย | ย | 980,255 | ย |
| ย | ย | ย | ย | ||||
| Commitments and contingencies | ย | ย | ย | ||||
| ย | ย | ย | ย | ||||
| Redeemable preferred stock ($0.01 par value per share; 200,000,000 shares authorized; 300,000 shares issued and outstanding as of Septemberย 30, 2022; redemption amount of $450ย million at Septemberย 30, 2022) | ย | 251,955 | ย | ย | ย | โ | ย |
| ย | ย | ย | ย | ||||
| Equity | ย | ย | ย | ||||
| Net Former Parent investment | ย | โ | ย | ย | ย | 1,617,601 | ย |
| Common shares ($0.01 par value per share; 2,000,000,000 shares authorized; 99,387,467 shares issued and outstanding as of Septemberย 30, 2022) | ย | 994 | ย | ย | ย | โ | ย |
| Additional paid in capital | ย | 929,088 | ย | ย | ย | โ | ย |
| Accumulated deficit | ย | (14,368 | ) | ย | ย | โ | ย |
| Accumulated other comprehensive loss | ย | (342,125 | ) | ย | ย | (155,464 | ) |
| Stockholders' and Former Parent Company equity | ย | 573,589 | ย | ย | ย | 1,462,137 | ย |
| Non-controlling interest in equity of consolidated subsidiaries | ย | (17,738 | ) | ย | ย | (91 | ) |
| Total equity | ย | 555,851 | ย | ย | ย | 1,462,046 | ย |
| Total liabilities, redeemable preferred stock and equity | $ | 2,525,468 | ย | ย | ย | 2,442,301 | ย |
FTAI INFRASTRUCTURE INC.
CONSOLIDATED AND COMBINED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
(Dollar amounts in thousands, unless otherwise noted)
| ย | Nine Months Ended September 30, | ||||||
| ย | ย | 2022 | ย | ย | ย | 2021 | ย |
| Cash flows from operating activities: | ย | ย | ย | ||||
| Net loss | $ | (131,442 | ) | ย | $ | (80,999 | ) |
| Adjustments to reconcile net loss to net cash used in operating activities: | ย | ย | ย | ||||
| Equity in losses of unconsolidated entities | ย | 47,982 | ย | ย | ย | 8,810 | ย |
| Loss (gain) on sale of assets, net | ย | 134 | ย | ย | ย | (16 | ) |
| Equity-based compensation | ย | 3,042 | ย | ย | ย | 3,281 | ย |
| Depreciation and amortization | ย | 52,451 | ย | ย | ย | 38,900 | ย |
| Change in deferred income taxes | ย | 4,851 | ย | ย | ย | (2,920 | ) |
| Change in fair value of non-hedge derivative | ย | (1,058 | ) | ย | ย | (1,979 | ) |
| Amortization of deferred financing costs | ย | 2,950 | ย | ย | ย | 1,755 | ย |
| Provision for (benefit from) credit losses | ย | 418 | ย | ย | ย | (4 | ) |
| Other | ย | 899 | ย | ย | ย | โ | ย |
| Change in: | ย | ย | ย | ||||
| Accounts receivable | ย | (20,476 | ) | ย | ย | (62,265 | ) |
| Other assets | ย | (4,805 | ) | ย | ย | (25,237 | ) |
| Accounts payable and accrued liabilities | ย | 23,199 | ย | ย | ย | 46,510 | ย |
| Management fees payable to affiliate | ย | 2,381 | ย | ย | ย | โ | ย |
| Other liabilities | ย | (5,390 | ) | ย | ย | 4,368 | ย |
| Net cash used in operating activities | ย | (24,864 | ) | ย | ย | (69,796 | ) |
| ย | ย | ย | ย | ||||
| Cash flows from investing activities: | ย | ย | ย | ||||
| Investment in unconsolidated entities | ย | (4,481 | ) | ย | ย | (54,499 | ) |
| Investment in convertible promissory notes | ย | (20,000 | ) | ย | ย | โ | ย |
| Acquisition of business, net of cash acquired | ย | (3,819 | ) | ย | ย | (627,399 | ) |
| Acquisition of property, plant and equipment | ย | (172,226 | ) | ย | ย | (97,505 | ) |
| Proceeds from sale of property, plant and equipment | ย | 5,656 | ย | ย | ย | โ | ย |
| Net cash used in investing activities | ย | (194,870 | ) | ย | ย | (779,403 | ) |
| ย | ย | ย | ย | ||||
| Cash flows from financing activities: | ย | ย | ย | ||||
| Proceeds from debt | ย | 482,375 | ย | ย | ย | 451,100 | ย |
| Payment of deferred financing costs | ย | (25,630 | ) | ย | ย | (13,007 | ) |
| Proceeds from issuance of redeemable preferred stock | ย | 291,000 | ย | ย | ย | โ | ย |
| Redeemable preferred stock issuance costs | ย | (16,418 | ) | ย | ย | โ | ย |
| Distribution to Manager | ย | (79 | ) | ย | ย | โ | ย |
| Capital contribution from non-controlling interests | ย | 732 | ย | ย | ย | โ | ย |
| Net transfers (to) from Former Parent, net | ย | (617,322 | ) | ย | ย | 694,327 | ย |
| Settlement of equity-based compensation | ย | (148 | ) | ย | ย | โ | ย |
| Net cash provided by financing activities | ย | 114,510 | ย | ย | ย | 1,132,420 | ย |
| ย | ย | ย | ย | ||||
| Net (decrease) increase in cash and cash equivalents and restricted cash | ย | (105,224 | ) | ย | ย | 283,221 | ย |
| Cash and cash equivalents and restricted cash, beginning of period | ย | 301,855 | ย | ย | ย | 55,421 | ย |
| Cash and cash equivalents and restricted cash, end of period | $ | 196,631 | ย | ย | $ | 338,642 | ย |
Key Performance Measures
The Chief Operating Decision Maker (โCODMโ) utilizes Adjusted EBITDA as our key performance measure.
Adjusted EBITDA provides the CODM with the information necessary to assess operational performance, as well as make resource and allocation decisions. Adjusted EBITDA is defined as net income (loss) attributable to shareholders and Former Parent, adjusted (a) to exclude the impact of provision for (benefit from) income taxes, equity-based compensation expense, acquisition and transaction expenses, losses on the modification or extinguishment of debt and capital lease obligations, changes in fair value of non-hedge derivative instruments, asset impairment charges, incentive allocations, depreciation and amortization expense, interest expense, interest costs on pension and other pension expense benefits (โOPEBโ) liabilities, and dividends and accretion expense related to redeemable preferred stock, (b) to include the impact of our pro-rata share of Adjusted EBITDA from unconsolidated entities, and (c) to exclude the impact of equity in earnings (losses) of unconsolidated entities and the non-controlling share of Adjusted EBITDA.
The following table sets forth a reconciliation of net loss attributable to shareholders and former parent to Adjusted EBITDA for the three and nine months ended September 30, 2022 and 2021:
| ย | Three Months Ended September 30, | ย | ย | Nine Months Ended September 30, | ย | ||||||||||||
| (in thousands) | ย | 2022 | ย | ย | ย | 2021 | ย | ย | ย | ย | 2022 | ย | ย | ย | 2021 | ย | ย |
| Net loss attributable to shareholders and Former Parent | $ | (44,076 | ) | ย | $ | (27,286 | ) | ย | ย | $ | (116,378 | ) | ย | $ | (62,050 | ) | ย |
| Add: Provision for (benefit from) income taxes | ย | 1,555 | ย | ย | ย | (1,634 | ) | ย | ย | ย | 5,086 | ย | ย | ย | (2,755 | ) | ย |
| Add: Equity-based compensation expense | ย | 1,377 | ย | ย | ย | 728 | ย | ย | ย | ย | 3,042 | ย | ย | ย | 3,281 | ย | ย |
| Add: Acquisition and transaction expenses | ย | 2,754 | ย | ย | ย | 5,342 | ย | ย | ย | ย | 15,862 | ย | ย | ย | 8,860 | ย | ย |
| Add: Losses on the modification or extinguishment of debt and capital lease obligations | ย | โ | ย | ย | ย | โ | ย | ย | ย | ย | โ | ย | ย | ย | โ | ย | ย |
| Add: Changes in fair value of non-hedge derivative instruments | ย | (310 | ) | ย | ย | 4,594 | ย | ย | ย | ย | (1,058 | ) | ย | ย | (1,979 | ) | ย |
| Add: Asset impairment charges | ย | โ | ย | ย | ย | โ | ย | ย | ย | ย | โ | ย | ย | ย | โ | ย | ย |
| Add: Incentive allocations | ย | โ | ย | ย | ย | โ | ย | ย | ย | ย | โ | ย | ย | ย | โ | ย | ย |
| Add: Depreciation and amortization expense | ย | 18,136 | ย | ย | ย | 17,131 | ย | ย | ย | ย | 52,451 | ย | ย | ย | 38,900 | ย | ย |
| Add: Interest expense | ย | 19,161 | ย | ย | ย | 4,384 | ย | ย | ย | ย | 32,106 | ย | ย | ย | 9,396 | ย | ย |
| Add: Pro-rata share of Adjusted EBITDA from unconsolidated entities (1) | ย | 9,770 | ย | ย | ย | 7,782 | ย | ย | ย | ย | 22,002 | ย | ย | ย | 10,767 | ย | ย |
| Add: Dividends and accretion expense on redeemable preferred stock | ย | 9,263 | ย | ย | ย | โ | ย | ย | ย | ย | 9,263 | ย | ย | ย | โ | ย | ย |
| Add: Interest costs on pension and OPEB liabilities | ย | 896 | ย | ย | ย | โ | ย | ย | ย | ย | 896 | ย | ย | ย | โ | ย | ย |
| Less: Equity in losses of unconsolidated entities | ย | 12,080 | ย | ย | ย | 1,545 | ย | ย | ย | ย | 47,982 | ย | ย | ย | 8,810 | ย | ย |
| Less: Non-controlling share of Adjusted EBITDA (2) | ย | (4,502 | ) | ย | ย | (3,420 | ) | ย | ย | ย | (12,034 | ) | ย | ย | (8,706 | ) | ย |
| Adjusted EBITDA (non-GAAP) | $ | 26,104 | ย | ย | $ | 9,166 | ย | ย | ย | $ | 59,220 | ย | ย | $ | 4,524 | ย | ย |
__________________________________________________
| (1) | Includes the following items for the three months ended September 30, 2022 and 2021: (i) net loss of $(12,177) and $(3,794), (ii) interest expense of $7,551 and $300, (iii) depreciation and amortization expense of $7,883 and $2,953, (iv) acquisition and transaction expenses of $(16) and $โ, (v) changes in fair value of non-hedge derivative instruments of $6,432 and $8,323, (vi) equity-based compensation of $95 and $โ and (vii) asset impairment of $2 and $โ, respectively. Includes the following items for the nine months ended September 30, 2022 and 2021: (i) net loss of $(48,184) and $(9,286), (ii) interest expense of $20,809 and $827, (iii) depreciation and amortization expense of $20,516 and $6,678, (iv) acquisition and transaction expenses of $375 and $โ, (v) changes in fair value of non-hedge derivative instruments of $28,164 and $12,524, (vi) asset impairment of $34 and $24 and (vii) equity-based compensation of $288 and $โ, respectively. |
| (2) | Includes the following items for the three months ended September 30, 2022 and 2021: (i) equity-based compensation of $102 and $130, (ii) provision for income taxes of $464 and $11, (iii) interest expense of $1,326 and $926, (iv) depreciation and amortization expense of $2,507 and $2,195 (v) changes in fair value of non-hedge derivative instruments of $(15) and $158, (vi) acquisition and transaction expenses of $117 and $โ and (vii) interest costs on pension and OPEB liabilities of $1 and $โ, respectively. Includes the following items for the nine months ended September 30, 2022 and 2021: (i) equity based compensation of $352 and $620, (ii) provision for income taxes of $494 and $37, (iii) interest expense of $4,029 and $1,939, (iv) depreciation and amortization expense of $7,091 and $6,178 (v) changes in fair value of non-hedge derivative instruments of $(50) and $(68), (vi) acquisition and transaction expenses of $117 and $โ, and (vii) interest costs on pension and OPEB liabilities of $1 and $โ, respectively. |
ย
