EX-99.1 2 brhc20056410_ex99-1.htm EXHIBIT 99.1
Exhibit 99.1


PRESS RELEASE
 
FTAI Infrastructure Inc. Reports Second Quarter 2023 Results, Declares Dividend of $0.03 per Share of Common Stock
 

NEW YORK, July 25, 2023 (GLOBE NEWSWIRE) -- FTAI Infrastructure Inc. (NASDAQ:FIP) (the “Company” or “FTAI Infrastructure”) today reported financial results for the second quarter 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 Results
  
Q2’23
  
Net Loss Attributable to Stockholders
  
$
(38,853
)
Basic and Diluted Loss per Share of Common Stock
  
$
(0.38
)
Adjusted EBITDA(1)
  
$
27,677
  
Adjusted EBITDA - Four core segments (1)(2)
  
$
36,153
  
 


 (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
 
Second Quarter 2023 Dividends
 
On July 25, 2023, 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 June 30, 2023, payable on August 15, 2023 to the holders of record on August 8, 2023.
 
Business Highlights
 
•
Adjusted EBITDA of $36.2 million from our four core segments, up 20% vs Q1 of 2023
 
•
Transtar business unit generated $20.3 million of Adjusted EBITDA for the quarter
 
•
Executed 15-year contract with first customer at “Jefferson South” terminal for transloading of clean fuels
 
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.
 
1
Conference Call
 
In addition, management will host a conference call on Wednesday, July 26, 2023 at 8:00 A.M. Eastern Time. The conference call may be accessed by registering at
 
https://register.vevent.com/register/BI9b1bb57ad78c4240883aa2c3d4164ab8. 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 https://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, July 26, 2023 through 11:30 A.M. on Wednesday, August 2, 2023 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.
 
2
For further information, please contact:
 
Alan Andreini
Investor Relations
FTAI Infrastructure Inc.
(646) 734-9414
aandreini@fortress.com

3
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 June 30,
    
Six Months Ended June 30,
  
 
  
2023
    
2022
    
2023
    
2022
  
Revenues
                        
Total revenues
  
$
81,832
    
$
65,868
    
$
158,326
    
$
112,016
  
 
                                
Expenses
                                
Operating expenses
    
62,775
      
49,229
      
127,937
      
87,297
  
General and administrative
    
3,702
      
2,498
      
6,903
      
4,928
  
Acquisition and transaction expenses
    
636
      
8,872
      
905
      
13,108
  
Management fees and incentive allocation to affiliate
    
3,084
      
3,065
      
6,066
      
7,226
  
Depreciation and amortization
    
20,292
      
17,319
      
40,427
      
34,315
  
Asset impairment
    
602
      
—
      
743
      
—
  
Total expenses
    
91,091
      
80,983
      
182,981
      
146,874
  
 
                                
Other income (expense)
                                
Equity in (losses) earnings of unconsolidated entities
    
(1,625
)
    
(13,859
)
    
2,741
      
(35,902
)
Gain on sale of assets, net
    
647
      
—
      
523
      
—
  
Interest expense
    
(24,182
)
    
(6,486
)
    
(47,432
)
    
(12,945
)
Other income (expense)
    
1,370
      
(553
)
    
1,591
      
(1,012
)
Total other expense
    
(23,790
)
    
(20,898
)
    
(42,577
)
    
(49,859
)
Loss before income taxes
    
(33,049
)
    
(36,013
)
    
(67,232
)
    
(84,717
)
Provision for income taxes
    
823
      
1,947
      
2,552
      
3,531
  
Net loss
    
(33,872
)
    
(37,960
)
    
(69,784
)
    
(88,248
)
Less: Net loss attributable to non-controlling interests in consolidated subsidiaries
    
(10,276
)
    
(8,480
)
    
(20,169
)
    
(15,946
)
Less: Dividends and accretion on redeemable preferred stock
    
15,257
      
—
      
29,827
      
—
  
Net loss attributable to stockholders/Former Parent
  
$
(38,853
)
  
$
(29,480
)
  
$
(79,442
)
  
$
(72,302
)
 
                                
Loss per share:
                                
Basic
  
$
(0.38
)
  
$
(0.30
)
  
$
(0.77
)
  
$
(0.73
)
Diluted
  
$
(0.38
)
  
$
(0.30
)
  
$
(0.77
)
  
$
(0.73
)
Weighted average shares outstanding:
                                
Basic
    
102,793,800
      
99,387,467
      
102,790,737
      
99,387,467
  
Diluted
    
102,793,800
      
99,387,467
      
102,790,737
      
99,387,467
  

4
FTAI INFRASTRUCTURE INC.
CONSOLIDATED BALANCE SHEETS (Unaudited)
(Dollar amounts in thousands, except share and per share data)


   
(Unaudited)
June 30, 2023
      
December 31, 2022
   
Assets
            
Current assets:
            
Cash and cash equivalents
  
$
42,523
    
$
36,486
  
Restricted cash
    
54,960
      
113,156
  
Accounts receivable, net
    
56,375
      
60,807
  
Other current assets
    
60,581
      
67,355
  
Total current assets
    
214,439
      
277,804
  
Leasing equipment, net
    
34,240
      
34,907
  
Operating lease right-of-use assets, net
    
69,560
      
71,015
  
Property, plant, and equipment, net
    
1,687,929
      
1,673,808
  
Investments
    
70,245
      
73,589
  
Intangible assets, net
    
56,414
      
60,195
  
Goodwill
    
260,252
      
260,252
  
Other assets
    
44,531
      
26,829
  
Total assets
  
$
2,437,610
    
$
2,478,399
  
 
                
Liabilities
                
Current liabilities:
                
Accounts payable and accrued liabilities
  
$
122,491
    
$
136,048
  
Current debt, net
    
24,037
      
—
  
Operating lease liabilities
    
7,070
      
7,045
  
Other current liabilities
    
28,463
      
16,488
  
Total current liabilities
    
182,061
      
159,581
  
Debt, net
    
1,276,641
      
1,230,157
  
Operating lease liabilities
    
62,207
      
63,147
  
Other liabilities
    
90,886
      
236,130
  
Total liabilities
    
1,611,795
      
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 June 30, 2023 and December 31, 2022; redemption amount of $448.2 million at June 30, 2023 and December 31, 2022)
    
294,417
      
264,590
  
 
                
Equity
                
Common stock ($0.01 par value per share; 2,000,000,000 shares authorized; 99,470,553 and 99,445,074 shares issued and outstanding as of June 30, 2023 and December 31, 2022, respectively)
    
994
      
994
  
Additional paid in capital
    
874,729
      
911,599
  
Accumulated deficit
    
(110,452
)
    
(60,837
)
Accumulated other comprehensive loss
    
(184,727
)
    
(300,133
)
Stockholders' equity
    
580,544
      
551,623
  
Non-controlling interest in equity of consolidated subsidiaries
    
(49,146
)
    
(26,829
)
Total equity
    
531,398
      
524,794
  
Total liabilities, redeemable preferred stock and equity
  
$
2,437,610
    
$
2,478,399
  

5
FTAI INFRASTRUCTURE INC.
CONSOLIDATED AND COMBINED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
(Dollar amounts in thousands, unless otherwise noted)

   
Six Months Ended June 30,
  
   
2023
    
2022
  
Cash flows from operating activities:
            
Net loss
  
$
(69,784
)
  
$
(88,248
)
Adjustments to reconcile net loss to net cash used in operating activities:
                
Equity in (earnings) losses of unconsolidated entities
    
(2,741
)
    
35,902
  
Gain on sale of assets, net
    
(523
)
    
—
  
Equity-based compensation
    
1,537
      
1,665
  
Depreciation and amortization
    
40,427
      
34,315
  
Asset impairment
    
743
      
—
  
Change in deferred income taxes
    
2,110
      
3,327
  
Change in fair value of non-hedge derivative
    
1,125
      
(748
)
Amortization of deferred financing costs
    
3,098
      
1,695
  
Amortization of bond discount
    
2,144
      
—
  
(Benefit from) provision for credit losses
    
(74
)
    
90
  
Change in:
                
Accounts receivable
    
4,506
      
(30,585
)
Other assets
    
(4,724
)
    
(21,583
)
Accounts payable and accrued liabilities
    
(16,370
)
    
12,939
  
Management fees payable to affiliate
    
10,168
      
—
  
Other liabilities
    
11,427
      
(4,159
)
Net cash used in operating activities
    
(16,931
)
    
(55,390
)
                 
Cash flows from investing activities:
                
Investment in unconsolidated entities
    
(3,315
)
    
(2,745
)
Investment in convertible promissory notes
    
—
      
(5,000
)
Acquisition of business, net of cash acquired
    
(4,448
)
    
(3,819
)
Acquisition of property, plant and equipment
    
(65,696
)
    
(113,916
)
Investment in promissory notes and loans
    
(22,000
)
    
—
  
Proceeds from sale of leasing equipment
    
115
      
—
  
Proceeds from sale of property, plant and equipment
    
988
      
4,304
  
Net cash used in investing activities
    
(94,356
)
    
(121,176
)
                 
Cash flows from financing activities:
                
Proceeds from debt
    
66,600
      
9,450
  
Payment of deferred financing costs
    
(1,192
)
    
(277
)
Cash dividends - common stock
    
(6,170
)
    
—
  
Capital contribution from non-controlling interests
    
—
      
562
  
Net transfers from Former Parent, net
    
—
      
111,396
  
Settlement of equity-based compensation
    
(90
)
    
—
  
Distributions to non-controlling interests
    
(20
)
    
—
  
Net cash provided by financing activities
    
59,128
      
121,131
  
                 
Net decrease in cash and cash equivalents and restricted cash
    
(52,159
)
    
(55,435
)
Cash and cash equivalents and restricted cash, beginning of period
    
149,642
      
301,855
  
Cash and cash equivalents and restricted cash, end of period
  
$
97,483
    
$
246,420
  

6
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 shareholders or 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 (“OPEB”) liabilities, dividends and accretion expense related to 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 or Former Parent to Adjusted EBITDA for the three and six months ended June 30, 2023 and 2022:
 
   
Three Months Ended
June 30,
    
   
Six Months Ended
June 30,
    
 
(in thousands)
  
2023
    
2022
    
Change
    
2023
    
2022
    
Change
  
Net loss attributable to stockholders/Former Parent
  
$
(38,853
)
  
$
(29,480
)
  
$
(9,373
)
  
$
(79,442
)
  
$
(72,302
)
  
$
(7,140
)
Add: Provision for income taxes
    
823
      
1,947
      
(1,124
)
    
2,552
      
3,531
      
(979
)
Add: Equity-based compensation expense
    
642
      
956
      
(314
)
    
1,537
      
1,665
      
(128
)
Add: Acquisition and transaction expenses
    
636
      
8,872
      
(8,236
)
    
905
      
13,108
      
(12,203
)
Add: Losses on the modification or extinguishment of debt and capital lease obligations
    
—
      
—
      
—
      
—
      
—
      
—
  
Add: Changes in fair value of non-hedge derivative instruments
    
—
      
(1,514
)
    
1,514
      
1,125
      
(748
)
    
1,873
  
Add: Asset impairment charges
    
602
      
—
      
602
      
743
      
—
      
743
  
Add: Incentive allocations
    
—
      
—
      
—
      
—
      
—
      
—
  
Add: Depreciation & amortization expense
    
20,292
      
17,319
      
2,973
      
40,427
      
34,315
      
6,112
  
Add: Interest expense
    
24,182
      
6,486
      
17,696
      
47,432
      
12,945
      
34,487
  
Add: Pro-rata share of Adjusted EBITDA from unconsolidated entities (1)
    
6,886
      
6,825
      
61
      
15,076
      
12,232
      
2,844
  
Add: Dividends and accretion on redeemable preferred stock
    
15,257
      
—
      
15,257
      
29,827
      
—
      
29,827
  
Add: Interest and other costs on pension and OPEB liabilities
    
480
      
—
      
480
      
960
      
—
      
960
  
Add: Other non-recurring items (2)
    
51
      
—
      
51
      
1,339
      
—
      
1,339
  
Less: Equity in losses (earnings) of unconsolidated entities
    
1,625
      
13,859
      
(12,234
)
    
(2,741
)
    
35,902
      
(38,643
)
Less: Non-controlling share of Adjusted EBITDA (3)
    
(4,946
)
    
(3,716
)
    
(1,230
)
    
(10,167
)
    
(7,532
)
    
(2,635
)
Adjusted EBITDA (non-GAAP)
  
$
27,677
    
$
21,554
    
$
6,123
    
$
49,573
    
$
33,116
    
$
16,457
  


(1)
Includes the following items for the three months ended June 30, 2023 and 2022: (i) net loss of $(1,660) and $(13,919), (ii) interest expense of $8,304 and $6,795, (iii) depreciation and amortization expense of $7,967 and $6,349, (iv) acquisition and transaction expenses of $237 and $387, (v) changes in fair value of non-hedge derivative instruments of $(7,963) and $7,118 and (vi) equity-based compensation of $1 and $95, respectively. Includes the following items for the six months ended June 30, 2023 and 2022: (i) net income (loss) of $2,658 and $(36,007), (ii) interest expense of $16,336 and $13,258, (iii) depreciation and amortization expense of $13,633 and $12,633, (iv) acquisition and transaction expenses of $257 and $391, (v) changes in fair value of non-hedge derivative instruments of $(17,810) and $21,732, (vi) equity-based compensation of $2 and $193 and (vii) asset impairment of $— and $32, respectively.
 
(2)
Includes the following items for the three and six months ended June 30, 2023: subsidiary severance expense of $51 and $1,339, respectively.
 
(3)
Includes the following items for the three months ended June 30, 2023 and 2022: (i) equity-based compensation of $76 and $124, (ii) provision for income taxes of $35 and $14, (iii) interest expense of $1,880 and $1,319, (iv) depreciation and amortization expense of $2,944 and $2,321, (v) changes in fair value of non-hedge derivative instruments of $— and $(62), (vi) acquisition and transaction expense of $8 and $—, (vii) interest and other costs on pension and OPEB liabilities of $1 and $— and (viii) asset impairment of $2 and $—, respectively. Includes the following items for the six months ended June 30, 2023 and 2022: (i) equity-based compensation of $186 and $250, (ii) provision for income taxes of $88 and $30, (iii) interest expense of $3,737 and $2,703, (iv) depreciation and amortization expense of $6,080 and $4,585, (v) changes in fair value of non-hedge derivative instruments of $61 and $(36), (vi) other non-recurring items of $3 and $—, (vii) acquisition and transaction expense of $8 and $—, (viii) interest and other costs on pension and OPEB liabilities of $2 and $— and (ix) asset impairment of $2 and $—, respectively.
 
7
The following table sets forth a reconciliation of net income (loss) attributable to stockholders to Adjusted EBITDA for our four core segments for the three months ended June 30, 2023:

   
Three Months Ended June 30, 2023
  
(in thousands)
  
Railroad
    
Jefferson Terminal
    
Repauno
    
Power and
Gas
    
Four Core Segments
  
Net income (loss) attributable to stockholders/Former Parent
  
$
11,786
    
$
(8,765
)
  
$
(4,510
)
  
$
3,059
    
$
1,570
  
Add: Provision for income taxes
    
720
      
152
      
40
      
—
      
912
  
Add: Equity-based compensation expense
    
159
      
303
      
100
      
—
      
562
  
Add: Acquisition and transaction expenses
    
184
      
36
      
—
      
49
      
269
  
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
    
602
      
—
      
—
      
—
      
602
  
Add: Incentive allocations
    
—
      
—
      
—
      
—
      
—
  
Add: Depreciation and amortization expense
    
5,125
      
12,144
      
2,281
      
—
      
19,550
  
Add: Interest expense
    
1,215
      
7,978
      
615
      
1
      
9,809
  
Add: Pro-rata share of Adjusted EBITDA from unconsolidated entities (1)
    
—
      
—
      
—
      
8,933
      
8,933
  
Add: Dividends and accretion on redeemable preferred stock
    
—
      
—
      
—
      
—
      
—
  
Add: Interest and other costs on pension and OPEB liabilities
    
480
      
—
      
—
      
—
      
480
  
Add: Other non-recurring items (2)
    
51
      
—
      
—
      
—
      
51
  
Less: Equity in earnings of unconsolidated entities
    
—
      
—
      
—
      
(1,639
)
    
(1,639
)
Less: Non-controlling share of Adjusted EBITDA (3)
    
(18
)
    
(4,766
)
    
(162
)
    
—
      
(4,946
)
Adjusted EBITDA
  
$
20,304
    
$
7,082
    
$
(1,636
)
  
$
10,403
    
$
36,153
  
 

(1)
Power and Gas:
 
Includes the following items for the three months ended June 30, 2023: (i) net income of $1,639, (ii) interest expense of $7,378, (iii) depreciation and amortization expense of $7,641, (iv) acquisition and transaction expenses of $237, (v) changes in fair value of non-hedge derivative instruments of $(7,963), and (vi) equity-based compensation of $1.
 
(2)
Railroad:
 
Includes the following items for the three months ended June 30, 2023: Transtar severance expense of $51.
 
(3)
Railroad:
 
Includes the following items for the three months ended June 30, 2023: (i) depreciation and amortization expense of $12, (ii) interest expense of $3, (iii) interest and other costs on pension and OPEB liabilities of $1 and (iv) asset impairment of $2.
 
Jefferson Terminal:
 
Includes the following items for the three months ended June 30, 2023: (i) equity-based compensation of $71, (ii) provision for income taxes of $35, (iii) interest expense of $1,844, (iv) depreciation and amortization expense of $2,808 and (v) acquisition and transaction expense of $8.
 
Repauno:
 
Includes the following items for the three months ended June 30, 2023: (i) equity-based compensation of $5, (ii) interest expense of $33 and (iii) depreciation and amortization expense of $124.
 

8