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FTAI Infrastructure Inc. Reports Fourth Quarter and Full Year 2023 Results, Declares Dividend of $0.03 per Share of Common Stock

NEW YORK, Feb. 29, 2024 (GLOBE NEWSWIRE) -- FTAI Infrastructure Inc. (NASDAQ:FIP) (the “Company” or “FTAI Infrastructure”) today reported financial results for the fourth quarter and full year 2023. The Company’s 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 ResultsThree Months Ended December 31, 2023 Year Ended December 31, 2023
Net Loss Attributable to Stockholders$(48,193) $(183,736)
Basic Loss per Share of Common Stock$(0.47) $(1.78)
Diluted Loss per Share of Common Stock$(0.47) $(1.79)
Adjusted EBITDA (1)$33,294  $107,522 
Adjusted EBITDA - Four Core Segments (1)(2)$42,455  $140,938 

________________________

(1)   For definitions and reconciliations of non-GAAP measures, please refer to the exhibit to this press release.
(2)   Excludes Sustainability and Energy Transition and Corporate and Other segments.

Fourth Quarter 2023 Dividends

On February 29, 2024, the Company’s Board of Directors (the “Board”) declared a cash dividend on its common stock of $0.03 per share for the quarter ended December 31, 2023, payable on April 5, 2024 to the holders of record on March 27, 2024.

Business Highlights

  • Q4 core segment Adj. EBITDA(1)(2) of $42.4 million, and consolidated Adj EBITDA(1) of $33.3 million – both quarterly records.
  • Transtar generated Adj. EBITDA(1) of $23.6 million in Q4, a record, with increases in both carload volume and average rate per carload versus Q3.
  • Jefferson Terminal generated Adj. EBITDA(1) of $14.3 million in Q4, averaging an all-time high of 185,000 barrels per day of throughput at the terminal.

      (1)   For definitions and reconciliations of non-GAAP measures, please refer to the exhibit to this press release.
      (2)   Excludes Sustainability and Energy Transition and Corporate and Other segments.

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 Company’s website, www.fipinc.com, and the Company’s Annual Report on Form 10-K, when available on the Company’s website. Nothing on the Company’s website is included or incorporated by reference herein.

Conference Call

In addition, management will host a conference call on Friday, March 1, 2024 at 8:00 A.M. Eastern Time. The conference call may be accessed by registering via the following link https://register.vevent.com/register/BI105c7053805540c195b641e1b4b5e2e0. Once registered, participants will receive a dial-in and unique pin to access the call.

A simultaneous webcast of the conference call will be available to the public on a listen-only basis at www.fipinc.com. Please allow extra time prior to the call to visit the site and download the necessary software required to listen to the internet broadcast.

A replay of the conference call will be available after 11:30 A.M. on Friday, March 1, 2024 through 11:30 A.M. on Friday, March 8, 2024 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 Company’s 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 “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the Company’s most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, which are available on the Company’s 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)
 Three Months Ended December 31, Year Ended December 31,
  2023   2022   2023   2022 
Revenues       
Total revenues$81,440  $71,391  $320,472  $261,966 
        
Expenses       
Operating expenses 57,319   59,926   253,672   208,157 
General and administrative 3,445   2,755   12,833   10,891 
Acquisition and transaction expenses 2,586   982   4,140   16,844 
Management fees and incentive allocation to affiliate 3,163   3,079   12,467   12,964 
Depreciation and amortization 20,415   18,298   80,992   70,749 
Asset impairment       743    
Total expenses 86,928   85,040   364,847   319,605 
        
Other (expense) income       
Equity in losses of unconsolidated entities (17,534)  (19,417)  (24,707)  (67,399)
Gain (loss) on sale of assets, net 6,595   (1,469)  6,855   (1,603)
Loss on extinguishment of debt (16)     (2,036)   
Interest expense (26,172)  (21,133)  (99,603)  (53,239)
Other income (expense) 2,608   (1,025)  6,586   (3,169)
Total other expense (34,519)  (43,044)  (112,905)  (125,410)
Loss before income taxes (40,007)  (56,693)  (157,280)  (183,049)
(Benefit from) provision for income taxes (90)  (618)  2,470   4,468 
Net loss (39,917)  (56,075)  (159,750)  (187,517)
Less: Net loss attributable to non-controlling interests in consolidated subsidiaries (8,313)  (9,606)  (38,414)  (33,933)
Less: Dividends and accretion of redeemable preferred stock 16,589   14,394   62,400   23,657 
Net loss attributable to stockholders/Former Parent$(48,193) $(60,863) $(183,736) $(177,241)
        
Loss per share:       
Basic$(0.47) $(0.59) $(1.78) $(1.73)
Diluted$(0.47) $(0.59) $(1.79) $(1.73)
Weighted average shares outstanding:       
Basic 103,426,793   102,747,121   102,960,812   102,747,121 
Diluted 103,426,793   102,747,121   102,960,812   102,747,121 



FTAI INFRASTRUCTURE INC.
CONSOLIDATED BALANCE SHEETS (Unaudited)
(Dollar amounts in thousands, except share and per share data)
 December 31,
  2023   2022 
Assets   
Current assets:   
Cash and cash equivalents$29,367  $36,486 
Restricted cash 58,112   113,156 
Accounts receivable, net 55,990   60,807 
Other current assets 42,034   67,355 
Total current assets 185,503   277,804 
Leasing equipment, net 35,587   34,907 
Operating lease right-of-use assets, net 69,748   71,015 
Property, plant, and equipment, net 1,630,829   1,673,808 
Investments 72,701   73,589 
Intangible assets, net 52,621   60,195 
Goodwill 275,367   260,252 
Other assets 57,253   26,829 
Total assets$2,379,609  $2,478,399 
    
Liabilities   
Current liabilities:   
Accounts payable and accrued liabilities$130,796  $136,048 
Operating lease liabilities 7,218   7,045 
Other current liabilities 12,623   16,488 
Total current liabilities 150,637   159,581 
Debt, net 1,340,910   1,230,157 
Operating lease liabilities 62,441   63,147 
Other liabilities 87,530
   236,130 
Total liabilities 1,641,518   1,689,015 
    
Commitments and contingencies   
    
Redeemable preferred stock ($0.01 par value per share; 200,000,000 shares authorized; 300,000 shares issued and outstanding as of December 31, 2023 and December 31, 2022, respectively; redemption amount of $446.5 million and $448.2 million as of December 31, 2023 and December 31, 2022, respectively) 325,232   264,590 
    
Equity   
Common stock ($0.01 par value per share; 2,000,000,000 shares authorized; 100,589,572 and 99,445,074 shares issued and outstanding at December 31, 2023 and December 31, 2022, respectively) 1,006   994 
Additional paid in capital 843,971   911,599 
Accumulated deficit (182,173)  (60,837)
Accumulated other comprehensive loss (178,515)  (300,133)
Stockholders' equity 484,289
   551,623 
Non-controlling interests in equity of consolidated subsidiaries (71,430)  (26,829)
Total equity 412,859
   524,794 
Total liabilities, redeemable preferred stock and equity$2,379,609  $2,478,399 



FTAI INFRASTRUCTURE INC.
CONSOLIDATED AND COMBINED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
(Dollar amounts in thousands, unless otherwise noted)
  Year Ended December 31,
   2023   2022 
Cash flows from operating activities:    
Net loss $(159,750) $(187,517)
Equity in losses of unconsolidated entities  24,707   67,399 
(Gain) loss on sale of assets  (6,855)  1,603 
Loss on extinguishment of debt  2,036    
Equity-based compensation  9,199   4,146 
Depreciation and amortization  80,992   70,749 
Asset impairment  743    
Change in deferred income taxes  2,016   3,982 
Change in fair value of non-hedge derivatives  1,125   (1,125)
Amortization of deferred financing costs  6,769   4,393 
Bad debt expense  1,977   575 
Amortization of bond discount  4,853   1,903 
Change in:    
Accounts receivable  2,840   (3,303)
Other assets  25,183   (7,799)
Accounts payable and accrued liabilities  8,553   7,013 
Other liabilities  1,125   (4,709)
Net cash provided by (used in) operating activities  5,513   (42,690)
     
Cash flows from investing activities:    
Investment in unconsolidated entities  (7,077)  (5,996)
Acquisition of business, net of cash acquired  (4,448)  (3,819)
Acquisition of leasing equipment  (1,724)   
Acquisition of property, plant and equipment  (99,022)  (217,141)
Investment in convertible promissory notes  (36,044)  (47,454)
Proceeds from sale of leasing equipment  105    
Proceeds from sale of property, plant and equipment  1,087   7,144 
Net cash used in investing activities  (147,123)  (267,266)
     
Cash flows from financing activities:    
Proceeds from debt  181,350   519,025 
Repayment of debt  (75,131)   
Payment of deferred financing costs  (8,834)  (13,605)
Proceeds from issuance of redeemable preferred stock     291,000 
Redeemable preferred stock issuance costs     (16,433)
Distributions to Manager     (78)
Capital contributions from non-controlling interests     731 
Distributions to non-controlling interests  (1,647)  (143)
Settlement of equity-based compensation  (2,161)  (593)
Net transfers to (from) Former Parent     (617,321)
Cash dividends - common stock  (12,372)  (3,082)
Cash dividends - redeemable preferred stock  (1,758)  (1,758)
Net cash provided by financing activities  79,447   157,743 
     
Net decrease in cash and cash equivalents and restricted cash  (62,163)  (152,213)
Cash and cash equivalents and restricted cash, beginning of period  149,642   301,855 
Cash and cash equivalents and restricted cash, end of period $87,479  $149,642 


Key Performance Measures

The Chief Operating Decision Maker (“CODM”) 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 stockholders 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 and other costs on pension and other pension expense benefits (“OPEB”) liabilities, dividends and accretion of redeemable preferred stock, and other non-recurring items, (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 stockholders and Former Parent to Adjusted EBITDA for the three and twelve months ended December 31, 2023 and 2022:

 Three Months Ended December 31, Year Ended December 31,
(in thousands) 2023   2022   2023   2022 
Net loss attributable to stockholders/Former Parent$(48,193) $(60,863) $(183,736) $(177,241)
Add: (Benefit from) provision for income taxes (90)  (618)  2,470   4,468 
Add: Equity-based compensation expense 3,385   1,104   9,199   4,146 
Add: Acquisition and transaction expenses 2,586   982   4,140   16,844 
Add: Losses on the modification or extinguishment of debt and capital lease obligations 16      2,036    
Add: Changes in fair value of non-hedge derivative instruments    (67)  1,125   (1,125)
Add: Asset impairment charges       743    
Add: Incentive allocations           
Add: Depreciation & amortization expense(1) 20,964   18,298   81,541   70,749 
Add: Interest expense 26,172   21,133   99,603   53,239 
Add: Pro-rata share of Adjusted EBITDA from unconsolidated entities(2) (421)  (8,063)  20,209   13,939 
Add: Dividends and accretion of redeemable preferred stock 16,589   14,394   62,400   23,657 
Add: Interest and other costs on pension and OPEB liabilities 690   336   2,130   1,232 
Add: Other non-recurring items(3)       2,470    
Less: Equity in losses of unconsolidated entities 17,534   19,417   24,707   67,399 
Less: Non-controlling share of Adjusted EBITDA(4) (5,938)  (4,245)  (21,515)  (16,279)
Adjusted EBITDA (Non-GAAP)$33,294  $1,808  $107,522  $61,028 

____________________

(1)  Includes the following items for the years ended December 31, 2023 and 2022: (i) depreciation and amortization expense of $80,992 and $70,749 and (ii) capitalized contract costs amortization of $549 and $—, respectively.

Includes the following items for the three months ended December 31, 2023 and 2022: (i) depreciation and amortization expense of $20,415 and $18,298 and (ii) capitalized contract costs amortization of $549 and $—, respectively.

(2)  Includes the following items for the years ended December 31, 2023 and 2022: (i) net loss of $(23,752) and $(67,658), (ii) interest expense of $34,686 and $28,702, (iii) depreciation and amortization expense of $27,685 and $28,399, (iv) acquisition and transaction expense of $445 and $616, (v) changes in fair value of non-hedge derivative instruments of $(18,904) and $21,218, (vi) asset impairment of $1,135 and $2,280, (vii) equity-based compensation of $5 and $382 and (viii) equity method basis adjustments of $(1,091) and $—, respectively.

Includes the following items for the three months ended December 31, 2023 and 2022: (i) net loss of $(16,469) and $(19,474), (ii) interest expense of $9,520 and $7,893, (iii) depreciation and amortization expense of $7,087 and $7,883, (iv) acquisition and transaction expense of $138 and $241, (v) changes in fair value of non-hedge derivative instruments of $(742) and $(6,946), (vi) asset impairment of $1,135 and $2,246, (vii) equity-based compensation of $1 and $94 and (viii) equity method basis adjustments of $(1,091) and $—, respectively.

(3)  Includes the following items for the year ended December 31, 2023: certain non-cash expenses related to cancellation of restricted shares and Railroad severance expense of $2,470.

(4)  Includes the following items for the years ended December 31, 2023 and 2022: (i) equity-based compensation of $1,412 and $470, (ii) provision for income taxes of $578 and $670, (iii) interest expense of $7,391 and $5,491, (iv) depreciation and amortization expense of $11,752 and $9,699, (v) changes in fair value of non-hedge derivative instruments of $63 and $(53), (vi) acquisition and transaction expenses of $307 and $1, (vii) interest and other costs on pension and OPEB liabilities of $6 and $1, (viii) asset impairment of $2 and $—, and (ix) other recurring items of $4 and $—, respectively.

Includes the following items for the three months ended December 31, 2023 and 2022: (i) equity-based compensation of $508 and $118, (ii) provision for income taxes of $509 and $176, (iii) interest expense of $1,833 and $1,462, (iv) depreciation and amortization expense of $2,802 and $2,608, (v) changes in fair value of non-hedge derivative instruments of $2 and $(3), (vi) acquisition and transaction expenses of $280 and $(116), (vii) interest and other costs on pension and OPEB liabilities of $3 and $—, and (viii) other recurring items of $1 and $—, respectively.

The following tables sets forth a reconciliation of net income (loss) attributable to stockholders to Adjusted EBITDA for our four core segments for the three months and year ended December 31, 2023:

 Three Months Ended December 31, 2023
(in thousands)Railroad Jefferson Terminal Repauno Power and Gas Four Core Segments
Net income (loss) attributable to stockholders$19,495  $(6,776) $(4,202) $(10,549) $(2,032)
Add: (Benefit from) provision for income taxes (2,403)  2,244   239      80 
Add: Equity-based compensation expense 648   2,186   461      3,295 
Add: Acquisition and transaction expenses 184   1,254      23   1,461 
Add: Losses on the modification or extinguishment of debt and capital lease obligations              
Add: Changes in fair value of non-hedge derivative instruments              
Add: Asset impairment charges              
Add: Incentive allocations              
Add: Depreciation & amortization expense(1) 5,002   12,809   2,420      20,231 
Add: Interest expense 32   8,301   712      9,045 
Add: Pro-rata share of Adjusted EBITDA from unconsolidated entities(2)          3,331   3,331 
Add: Dividends and accretion of redeemable preferred stock              
Add: Interest and other costs on pension and OPEB liabilities 690            690 
Add: Other non-recurring items(3)              
Less: Equity in losses of unconsolidated entities          12,292   12,292 
Less: Non-controlling share of Adjusted EBITDA(4) (16)  (5,687)  (235)     (5,938)
Adjusted EBITDA (Non-GAAP)$23,632  $14,331  $(605) $5,097  $42,455 


 Year Ended December 31, 2023
(in thousands)Railroad Jefferson Terminal Repauno Power and Gas Four Core Segments
Net income (loss) attributable to stockholders$49,999  $(36,720) $(22,489) $(5,249) $(14,459)
Add: (Benefit from) provision for income taxes (561)  2,468   496      2,403 
Add: Equity-based compensation expense 1,394   5,865   1,770      9,029 
Add: Acquisition and transaction expenses 737   1,370      94   2,201 
Add: Losses on the modification or extinguishment of debt and capital lease obligations 937            937 
Add: Changes in fair value of non-hedge derivative instruments       1,125      1,125 
Add: Asset impairment charges 743            743 
Add: Incentive allocations              
Add: Depreciation & amortization expense(1) 19,590   49,465   9,336      78,391 
Add: Interest expense 2,284   32,443   2,557   3   37,287 
Add: Pro-rata share of Adjusted EBITDA from unconsolidated entities(2)          29,987   29,987 
Add: Dividends and accretion of redeemable preferred stock              
Add: Interest and other costs on pension and OPEB liabilities 2,130            2,130 
Add: Other non-recurring items(3) 1,339   1,131         2,470 
Less: Equity in losses of unconsolidated entities          9,949   9,949 
Less: Non-controlling share of Adjusted EBITDA(4) (71)  (20,328)  (856)     (21,255)
Adjusted EBITDA (Non-GAAP)$78,521  $35,694  $(8,061) $34,784  $140,938 

____________________

(1)   Jefferson Terminal
Includes the following items for the three months and year ended December 31, 2023: (i) depreciation and amortization expense of $12,260 and $48,916 and (ii) capitalized contract costs amortization of $549 and $549, respectively.

(2)   Power and Gas
Includes the following items for the three months and year ended December 31, 2023: (i) net loss of $(11,201) and $(8,858), (ii) interest expense of $8,565 and $31,109, (iii) depreciation and amortization expense of $6,526 and $26,146, (iv) acquisition and transaction expense of $138 and $445, (v) changes in fair value of non-hedge derivative instruments of $(742) and $(18,904), (vi) asset impairment of $1,135 and $1,135, (vii) equity-based compensation of $1 and $5 and (viii) equity method basis adjustments of $(1,091) and $(1,091), respectively.

(3)   Railroad
Includes the following items for the year ended December 31, 2023: Railroad severance expense of $1,339.

Jefferson Terminal
Includes the following items for the year ended December 31, 2023: certain non-cash expenses related to cancellation of restricted shares of $1,131.

(4)   Railroad
Includes the following items for the three months and year ended December 31, 2023: (i) equity-based compensation of $2 and $4, (ii) benefit from income taxes of $(5) and $(1), (iii) interest expense of $1 and $6, (iv) depreciation and amortization expense of $14 and $49, (v) acquisition and transaction expenses of $— and $1, (vi) interest and other costs on pension and OPEB liabilities of $3 and $6, (vii) asset impairment of $— and $2 and (viii) other recurring items of $1 and $4, respectively.

Jefferson Terminal
Includes the following items for the three months and year ended December 31, 2023: (i) equity-based compensation of $478 and $1,309, (ii) provision for income taxes of $500 and $551, (iii) interest expense of $1,789 and $7,242, (iv) depreciation and amortization expense of $2,640 and $10,920 and (v) acquisition and transaction expense of $280 and $306, respectively.

Repauno
Includes the following items for the three months and year ended December 31, 2023: (i) equity-based compensation of $28 and $99, (ii) provision for income taxes of $14 and $28, (iii) interest expense of $43 and $143, (iv) depreciation and amortization expense of $148 and $523 and (v) changes in fair value of non-hedge derivative instruments of $2 and $63, respectively.

 


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