FTAI Infrastructure Inc. Reports First Quarter 2024 Results, Declares Dividend of $0.03 per Share of Common Stock

FTAI Infrastructure Inc. Reports First Quarter 2024 Results, Declares Dividend of $0.03 per Share of Common Stock

NEW YORK, May 07, 2024 (GLOBE NEWSWIRE) — FTAI Infrastructure Inc. (NASDAQ:FIP) (the “Company” or “FTAI Infrastructure”) today reported financial results for the first quarter 2024. 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 Results Q1’24
Net Loss Attributable to Stockholders $         (56,582 )
Basic and Diluted Loss per Share of Common Stock $         (0.54 )
Adjusted EBITDA (1) $         27,231  
Adjusted EBITDA – Four core segments (1)(2) $         37,168  
_______________________________
(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.


First Quarter 2024 Dividends

On May 7, 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 March 31, 2024, payable on May 29, 2024 to the holders of record on May 17, 2024.

Business Highlights

  • Transtar revenue of $46.3 million represented a new quarterly record, with momentum continuing into Q2.
  • Jefferson Terminal revenue of $18.6 million impacted by an accelerated customer turnaround in Q1; with the turnaround now complete, Jefferson Terminal volumes and revenue are running at record levels.
  • Long Ridge operated at 98% capacity factor; close to signing several long-term “behind the meter” contracts and seeing rapidly increasing demand in the AI data center space.

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 Quarterly Report on Form 10-Q, 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 Wednesday, May 8, 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/BIca642246d3df458aad5fd075de5e813a. 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 Wednesday, May 8, 2024 through 11:30 A.M. on Wednesday, May 15, 2024 on https://ir.fipinc.com/news-events/events.

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, including, but not limited to, Transtar’s continued momentum, and Long Ridge’s potential new “behind the meter” contracts. 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 STATEMENTS OF OPERATIONS (Unaudited)
(Dollar amounts in thousands, except share and per share data)
 
  Three Months Ended March 31,
    2024       2023  
Revenues      
Total revenues $         82,535     $         76,494  
       
Expenses      
Operating expenses           64,575               65,162  
General and administrative           4,861               3,201  
Acquisition and transaction expenses           926               269  
Management fees and incentive allocation to affiliate           3,001               2,982  
Depreciation and amortization           20,521               20,135  
Asset impairment                          141  
Total expenses           93,884               91,890  
       
Other (expense) income      
Equity in (losses) earnings of unconsolidated entities           (11,902 )             4,366  
Loss on sale of assets, net           (13 )             (124 )
Interest expense           (27,593 )             (23,250 )
Other income           2,365               221  
Total other expense           (37,143 )             (18,787 )
Loss before income taxes           (48,492 )             (34,183 )
Provision for income taxes           1,805               1,729  
Net loss           (50,297 )             (35,912 )
Less: Net loss attributable to non-controlling interests in consolidated subsidiaries           (10,690 )             (9,893 )
Less: Dividends and accretion of redeemable preferred stock           16,975               14,570  
Net loss attributable to stockholders $         (56,582 )   $         (40,589 )
       
Loss per share:      
Basic $         (0.54 )   $         (0.39 )
Diluted $         (0.54 )   $         (0.40 )
Weighted average shares outstanding:      
Basic           104,189,287               102,787,640  
Diluted           104,189,287               102,787,640  
 
FTAI INFRASTRUCTURE INC.
CONSOLIDATED BALANCE SHEETS (Unaudited)
(Dollar amounts in thousands, except share and per share data)
 
  (Unaudited)    
  March 31, 2024   December 31, 2023
Assets      
Current assets:      
Cash and cash equivalents $         22,968     $         29,367  
Restricted cash           41,328               58,112  
Accounts receivable, net           53,914               55,990  
Other current assets           46,321               42,034  
Total current assets           164,531               185,503  
Leasing equipment, net           35,652               35,587  
Operating lease right-of-use assets, net           68,921               69,748  
Property, plant, and equipment, net           1,610,731               1,630,829  
Investments           68,085               72,701  
Intangible assets, net           50,735               52,621  
Goodwill           275,367               275,367  
Other assets           70,659               57,253  
Total assets $         2,344,681     $         2,379,609  
       
Liabilities      
Current liabilities:      
Accounts payable and accrued liabilities $         139,662     $         130,796  
Current debt, net           77,683               —  
Operating lease liabilities           7,242               7,218  
Other current liabilities           15,180               12,623  
Total current liabilities           239,767               150,637  
Debt, net           1,266,506               1,340,910  
Operating lease liabilities           61,599               62,441  
Other liabilities           114,068               87,530  
Total liabilities           1,681,940               1,641,518  
       
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 March 31, 2024 and December 31, 2023; redemption amount of $446.5 million at March 31, 2024 and December 31, 2023)           342,207               325,232  
       
Equity      
Common stock ($0.01 par value per share; 2,000,000,000 shares authorized; 101,693,823 and 100,589,572 shares issued and outstanding as of March 31, 2024 and December 31, 2023, respectively)           1,016               1,006  
Additional paid in capital           822,956               843,971  
Accumulated deficit           (221,780 )             (182,173 )
Accumulated other comprehensive loss           (199,643 )             (178,515 )
Stockholders’ equity           402,549               484,289  
Non-controlling interest in equity of consolidated subsidiaries           (82,015 )             (71,430 )
Total equity           320,534               412,859  
Total liabilities, redeemable preferred stock and equity $         2,344,681     $         2,379,609  
 
FTAI INFRASTRUCTURE INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
(Dollar amounts in thousands, unless otherwise noted)
 
  Three Months Ended March 31,
    2024       2023  
Cash flows from operating activities:      
Net loss $         (50,297 )   $         (35,912 )
Adjustments to reconcile net loss to net cash used in operating activities:      
Equity in losses (earnings) of unconsolidated entities           11,902               (4,366 )
Loss on sale of assets, net           13               124  
Equity-based compensation           2,340               895  
Depreciation and amortization           20,521               20,135  
Asset impairment                          141  
Change in deferred income taxes           1,337               1,547  
Change in fair value of non-hedge derivative                          1,125  
Amortization of deferred financing costs           1,929               1,429  
Amortization of bond discount           1,426               1,045  
Provision for (benefit from) credit losses           169               (165 )
Change in:      
Accounts receivable           1,907               (10,825 )
Other assets           (4,289 )             8,140  
Accounts payable and accrued liabilities           9,206               6,700  
Other liabilities           (47 )             (2,157 )
Net cash used in operating activities           (3,883 )             (12,144 )
       
Cash flows from investing activities:      
Investment in unconsolidated entities           (611 )             (2,126 )
Acquisition of consolidated subsidiary                          (4,448 )
Acquisition of leasing equipment           (396 )             —  
Acquisition of property, plant and equipment           (12,859 )             (39,861 )
Investment in promissory notes and loans                          (20,500 )
Investment in equity instruments           (5,000 )             —  
Proceeds from sale of property, plant and equipment           20               93  
Net cash used in investing activities           (18,846 )             (66,842 )
       
Cash flows from financing activities:      
Proceeds from debt                          41,600  
Payment of deferred financing costs           (265 )             (649 )
Cash dividends – common stock                          (3,084 )
Settlement of equity-based compensation           (189 )             (90 )
Net cash (used in) provided by financing activities           (454 )             37,777  
       
Net decrease in cash and cash equivalents and restricted cash           (23,183 )             (41,209 )
Cash and cash equivalents and restricted cash, beginning of period           87,479               149,642  
Cash and cash equivalents and restricted cash, end of period $         64,296     $         108,433  


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, 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 to Adjusted EBITDA for the three months ended March 31, 2024 and 2023:

  Three Months Ended March 31,
(in thousands)   2024       2023  
Net loss attributable to stockholders $         (56,582 )   $         (40,589 )
Add: Provision for income taxes           1,805               1,729  
Add: Equity-based compensation expense           2,340               895  
Add: Acquisition and transaction expenses           926               269  
Add: Losses on the modification or extinguishment of debt and capital lease obligations                          —  
Add: Changes in fair value of non-hedge derivative instruments                          1,125  
Add: Asset impairment charges                          141  
Add: Incentive allocations                          —  
Add: Depreciation & amortization expense (1)           21,097               20,135  
Add: Interest expense           27,593               23,250  
Add: Pro-rata share of Adjusted EBITDA from unconsolidated entities (2)           6,257               8,190  
Add: Dividends and accretion of redeemable preferred stock           16,975               14,570  
Add: Interest and other costs on pension and OPEB liabilities           600               480  
Add: Other non-recurring items (3)                          1,288  
Less: Equity in losses (earnings) of unconsolidated entities           11,902               (4,366 )
Less: Non-controlling share of Adjusted EBITDA (4)           (5,682 )             (5,221 )
Adjusted EBITDA (non-GAAP) $         27,231     $         21,896  
_______________________________
(1) Includes the following items for the three months ended March 31, 2024 and 2023: (i) depreciation and amortization expense of $20,521 and $20,135 and (ii) capitalized contract costs amortization of $576 and $—.
   
(2) Includes the following items for the three months ended March 31, 2024 and 2023: (i) net (loss) income of $(11,942) and $4,318, (ii) interest expense of $10,893 and $8,032, (iii) depreciation and amortization expense of $5,130 and $5,666, (iv) acquisition and transaction expenses of $19 and $20, (v) changes in fair value of non-hedge derivative instruments of $2,053 and $(9,847), (vi) equity-based compensation of $1 and $1, (vii) asset impairment of $87 and $— and (viii) equity method basis adjustments of $16 and $—, respectively.
   
(3) Includes the following item for the three months ended March 31, 2023: Railroad severance expense of $1,288.
   
(4) Includes the following items for the three months ended March 31, 2024 and 2023: (i) equity-based compensation of $431 and $110, (ii) (benefit from) provision for income taxes of $(134) and $53, (iii) interest expense of $2,189 and $1,857, (iv) depreciation and amortization expense of $3,194 and $3,136, (v) changes in fair value of non-hedge derivative instruments of $— and $61, (vi) interest and other costs on pension and OPEB liabilities of $2 and $1 and (vii) other non-recurring items of $— and $3, 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 ended March 31, 2024:

  Three Months Ended March 31, 2024
(in thousands) Railroad   Jefferson Terminal   Repauno   Power and Gas   Four Core Segments
Net income (loss) attributable to stockholders $         14,436     $         (11,120 )   $         (4,260 )   $         (5,427 )   $         (6,371 )
Add: Provision for (benefit from) income taxes           1,092               (554 )             (136 )                            402  
Add: Equity-based compensation expense           290               1,759               291                              2,340  
Add: Acquisition and transaction expenses           184               2                                             186  
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)           5,012               12,906               2,444                              20,362  
Add: Interest expense           69               9,297               146                              9,512  
Add: Pro-rata share of Adjusted EBITDA from unconsolidated entities (2)                                                        8,782               8,782  
Add: Dividends and accretion of redeemable preferred stock                                                                         
Add: Interest and other costs on pension and OPEB liabilities           600                                                            600  
Add: Other non-recurring items                                                                         
Less: Equity in losses of unconsolidated entities                                                        7,037               7,037  
Less: Non-controlling share of Adjusted EBITDA (3)           (25 )             (5,489 )             (168 )                            (5,682 )
Adjusted EBITDA (non-GAAP) $         21,658     $         6,801     $         (1,683 )   $         10,392     $         37,168  
_______________________________
(1) Jefferson Terminal
   
  Includes the following items for the three months ended March 31, 2024: (i) depreciation and amortization expense of $12,330 and (ii) capitalized contract costs amortization of $576, respectively.
   
(2) Power and Gas
   
  Includes the following items for the three months ended March 31, 2024: (i) net loss of $(7,053), (ii) interest expense of $9,210, (iii) depreciation and amortization expense of $4,449, (iv) acquisition and transaction expenses of $19, (v) changes in fair value of non-hedge derivative instruments of $2,053, (vi) equity-based compensation of $1, (vii) asset impairment of $87 and (viii) equity method basis adjustments of $16.
   
(3) Railroad
   
  Includes the following items for the three months ended March 31, 2024: (i) equity-based compensation of $1, (ii) provision for income taxes of $4, (iii) depreciation and amortization expense of $18 and (iv) interest and other costs on pension and OPEB liabilities of $2.
   
  Jefferson Terminal
   
  Includes the following items for the three months ended March 31, 2024: (i) equity-based compensation of $412, (ii) benefit from income taxes of $(130), (iii) interest expense of $2,180 and (iv) depreciation and amortization expense of $3,027.
   
  Repauno
   
  Includes the following items for the three months ended March 31, 2024: (i) equity-based compensation of $18, (ii) benefit from income taxes of $(8), (iii) interest expense of $9 and (iv) depreciation and amortization expense of $149.
   

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