Related party transactions

3 Months Ended

Mar. 31, 2023

Related Party Transactions [Abstract]

Related party transactions

22. Related party transactions

Management services

Messrs. Edens, chief executive officer and chairman of the Board of Directors, and Nardone, member of the Board of Directors, are currently employed by Fortress Investment Group LLC (“Fortress”). In the ordinary course of business, Fortress, through affiliated entities, charges the Company for administrative and general expenses incurred pursuant to its Administrative Services Agreement (“Administrative Agreement”). The charges under the Administrative Agreement that are attributable to the Company totaled $1,345 and $1,515 for the three months ended March 31, 2023 and 2022, respectively. Costs associated with the Administrative Agreement are included within Selling, general and administrative in the condensed consolidated statements of operations and comprehensive income. As of March 31, 2023 and December 31, 2022, $1,377 and $4,629 were due to Fortress, respectively.

In addition to administrative services, an affiliate of Fortress owns and leases an aircraft chartered by the Company for business purposes in the course of operations. The Company incurred, at aircraft operator rates, charter costs of $771 and $1,022 for the three months ended March 31, 2023 and 2022, respectively. As of March 31, 2023 and December 31, 2022, $771 and $416 was due to this affiliate, respectively.

Land lease

The Company has leased land from Florida East Coast Industries, LLC (“FECI”), which is controlled by funds managed by an affiliate of Fortress. The Company recognized expense related to the land lease of $103 and $103 during the three months ended March 31, 2023 and 2022, respectively, which was included within Operations and maintenance in the condensed consolidated statements of operations and comprehensive income. The Company has amounts due to FECI of $23 and $0 as of March 31, 2023 and December 31, 2022, respectively. As of March 31, 2023 and December 31, 2022, the Company has recorded a lease liability of $3,341 and $3,340, respectively, within Non-current lease liabilities on the condensed consolidated balance sheets.

DevTech investment

In August 2018, the Company entered into a consulting arrangement with DevTech Environment Limited (“DevTech”) to provide business development services to increase the customer base of the Company. DevTech also contributed cash consideration in exchange for a 10% interest in a consolidated subsidiary. The 10% interest was reflected as non-controlling interest in the Company’s condensed consolidated financial statements. The Company recognized approximately $105 and $98 in expense within Selling, general and administrative for the three months ended March 31, 2023 and 2022, respectively. As of March 31, 2023 and December 31, 2022, $105 and $80 were due to DevTech, respectively.

Fortress affiliated entities

The Company provides certain administrative services to related parties including Fortress affiliated entities. No costs are incurred for such administrative services by the Company as the Company is fully reimbursed for all costs incurred. The Company has subleased a portion of office space to affiliates of entities managed by Fortress, and for the three months ended March 31, 2023 and 2022, $192 and $195 of rent and office related expenses were incurred by these affiliates, respectively. As of March 31, 2023 and December 31, 2022, $892 and $700, respectively, were due from all Fortress affiliated entities.

Additionally, an entity formerly affiliated with Fortress and currently owned by Messrs. Edens and Nardone provides certain administrative services to the Company, as well as providing office space under a month-to-month non-exclusive license agreement. The Company incurred rent and administrative expenses of approximately $589 and $600 for the three months ended March 31, 2023 and 2022, respectively. As of March 31, 2023 and December 31, 2022, $3,043 and $2,455 were due to Fortress affiliated entities, respectively.