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

NEW YORK, May 02, 2023 (GLOBE NEWSWIRE) -- FTAI Infrastructure Inc. (NASDAQ:FIP) (the “Company” or “FTAI Infrastructure”) today reported financial results for the first 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 ResultsQ1’23 
Net Loss Attributable to Stockholders$(40,589) 
Basic Loss per Share of Common Stock$(0.39) 
Diluted Loss per Share of Common Stock$(0.40) 
Adjusted EBITDA(1)$21,896  
Adjusted EBITDA - Four core segments (1)(2)                        $          30,122  

_______________________________

(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 2023 Dividends

On May 2, 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 March 31, 2023, payable on May 26, 2023 to the holders of record on May 15, 2023.

Business Highlights

  • Transtar’s first quarter 2023 Adjusted EBITDA was $17.2 million, up from $13.5 million for the fourth quarter of 2022, driven by growth in both carload volumes and average rate per carload
  • Jefferson Terminal commenced service under the previously announced Exxon marine contract
  • Repauno Adjusted EBITDA loss of $4.9 million for the first quarter primarily attributable to costs incurred to prepare for a new multi-year tolling contract which commenced on April 1, 2023
  • Long Ridge returned to normal operations in early January following fourth quarter 2022 power plant outage

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.

Conference Call

In addition, management will host a conference call on Wednesday, May 3, 2023 at 8:00 A.M. Eastern Time. The conference call may be accessed by registering via the following link: https://register.vevent.com/register/BI76e04d920aa34a3db8931a5a75020dc8. 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 3, 2023 through 11:30 A.M. on Wednesday, May 10, 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.

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 March 31,
   2023   2022 
Revenues    
Total revenues $76,494  $46,148 
     
Expenses    
Operating expenses  65,162   38,068 
General and administrative  3,201   2,430 
Acquisition and transaction expenses  269   4,236 
Management fees and incentive allocation to affiliate  2,982   4,161 
Depreciation and amortization  20,135   16,996 
Asset impairment  141    
Total expenses  91,890   65,891 
     
Other income (expense)    
Equity in earnings (losses) of unconsolidated entities  4,366   (22,043)
Loss on sale of assets, net  (124)   
Interest expense  (23,250)  (6,459)
Other income (expense)  221   (459)
Total other expense  (18,787)  (28,961)
Loss before income taxes  (34,183)  (48,704)
Provision for income taxes  1,729   1,584 
Net loss   (35,912)  (50,288)
Less: Net loss attributable to non-controlling interests in consolidated subsidiaries  (9,893)  (7,466)
Less: Dividends and accretion on redeemable preferred stock  14,570    
Net loss attributable to stockholders/Former Parent $        (40,589) $        (42,822)
     
Loss per share:    
Basic $        (0.39) $        (0.43)
Diluted $        (0.40) $        (0.43)
Weighted average shares outstanding:    
Basic  102,787,640   99,387,467 
Diluted  102,787,640   99,387,467 
         

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

  (Unaudited)  
  March 31, 2023 December 31, 2022
Assets    
Current assets:    
Cash and cash equivalents $39,963  $36,486 
Restricted cash  68,470   113,156 
Accounts receivable, net  71,798   60,807 
Other current assets  58,820   67,355 
Total current assets  239,051   277,804 
Leasing equipment, net  34,631   34,907 
Operating lease right-of-use assets, net  70,163   71,015 
Property, plant, and equipment, net  1,685,242   1,673,808 
Investments  72,320   73,589 
Intangible assets, net  58,309   60,195 
Goodwill  260,252   260,252 
Other assets  27,094   26,829 
Total assets $2,447,062  $2,478,399 
     
Liabilities    
Current liabilities:    
Accounts payable and accrued liabilities $132,654  $136,048 
Operating lease liabilities  7,124   7,045 
Other current liabilities  14,905   16,488 
Total current liabilities  154,683   159,581 
Debt, net  1,274,149   1,230,157 
Operating lease liabilities  62,644   63,147 
Other liabilities  156,001   236,130 
Total liabilities  1,647,477   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 March 31, 2023 and December 31, 2022; redemption amount of $448.2 million at March 31, 2023 and December 31, 2022)  279,160   264,590 
     
Equity    
Common stock ($0.01 par value per share; 2,000,000,000 shares authorized; 99,445,074 shares issued and outstanding as of March 31, 2023 and December 31, 2022)  994   994 
Additional paid in capital  892,992   911,599 
Accumulated deficit  (86,856)  (60,837)
Accumulated other comprehensive loss  (247,293)  (300,133)
Stockholders' equity  559,837   551,623 
Non-controlling interest in equity of consolidated subsidiaries  (39,412)  (26,829)
Total equity  520,425   524,794 
Total liabilities, redeemable preferred stock and equity $2,447,062  $2,478,399 
 

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

 Three Months Ended March 31,
  2023   2022 
Cash flows from operating activities:   
Net loss$(35,912) $(50,288)
Adjustments to reconcile net loss to net cash used in operating activities:   
Equity in (earnings) losses of unconsolidated entities (4,366)  22,043 
Loss on sale of assets, net 124    
Equity-based compensation 895   709 
Depreciation and amortization 20,135   16,996 
Asset impairment 141    
Change in deferred income taxes 1,547   1,512 
Change in fair value of non-hedge derivative 1,125   766 
Amortization of deferred financing costs 1,429   841 
Amortization of bond discount 1,045    
(Benefit from) provision for credit losses (165)  25 
Change in:   
Accounts receivable (10,825)  13,744 
Other assets 8,140   (2,315)
Accounts payable and accrued liabilities 1,812   (19,488)
Management fees payable to affiliate 4,888    
Other liabilities (2,157)  1,306 
Net cash used in operating activities (12,144)  (14,149)
    
Cash flows from investing activities:   
Investment in unconsolidated entities (2,126)  (1,637)
Acquisition of consolidated subsidiary (4,448)   
Acquisition of property, plant and equipment (39,861)  (51,728)
Investment in promissory notes and loans (20,500)   
Proceeds from sale of property, plant and equipment 93   2,092 
Net cash used in investing activities (66,842)  (51,273)
    
Cash flows from financing activities:   
Proceeds from debt 41,600   9,450 
Payment of deferred financing costs (649)  (277)
Cash dividends - common stock (3,084)   
Net transfers from Former Parent, net    34,270 
Settlement of equity-based compensation (90)   
Net cash provided by financing activities 37,777   43,443 
    
Net decrease in cash and cash equivalents and restricted cash (41,209)  (21,979)
Cash and cash equivalents and restricted cash, beginning of period 149,642   301,855 
Cash and cash equivalents and restricted cash, end of period$108,433  $279,876 

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 months ended March 31, 2023 and 2022:

 Three Months Ended March 31,
(in thousands) 2023   2022 
Net loss attributable to stockholders/Former Parent$(40,589) $(42,822)
Add: Provision for income taxes 1,729   1,584 
Add: Equity-based compensation expense 895   709 
Add: Acquisition and transaction expenses 269   4,236 
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   766 
Add: Asset impairment charges 141    
Add: Incentive allocations     
Add: Depreciation and amortization expense 20,135   16,996 
Add: Interest expense 23,250   6,459 
Add: Pro-rata share of Adjusted EBITDA from unconsolidated entities (1) 8,190   5,407 
Add: Dividends and accretion on redeemable preferred stock 14,570    
Add: Interest and other costs on pension and OPEB liabilities 480    
Add: Other non-recurring items (2) 1,288    
Less: Equity in losses of unconsolidated entities (4,366)  22,043 
Less: Non-controlling share of Adjusted EBITDA (3) (5,221)  (3,816)
Adjusted EBITDA (non-GAAP)$21,896  $11,562 

__________________________________________________

(1) Includes the following items for the three months ended March 31, 2023 and 2022: (i) net income (loss) of $4,318 and $(22,088), (ii) interest expense of $8,032 and $6,463, (iii) depreciation and amortization expense of $5,666 and $6,284, (iv) acquisition and transaction expenses of $20 and $3, (v) changes in fair value of non-hedge derivative instruments of $(9,847) and $14,615, (vi) equity-based compensation of $1 and $98 and (vii) asset impairment of $— and $32, respectively.
(2) Includes the following items for the three months ended March 31, 2023: subsidiary severance expense of $1,288.
(3) Includes the following items for the three months ended March 31, 2023 and 2022: (i) equity-based compensation of $110 and $127, (ii) provision for income taxes of $53 and $15, (iii) interest expense of $1,857 and $1,384, (iv) depreciation and amortization expense of $3,136 and $2,263, (v) changes in fair value of non-hedge derivative instruments of $61 and $27, (vi) other non-recurring items of $3 and $— and (vii) interest and other costs on pension and OPEB liabilities of $1 and $—, respectively.

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 March 31, 2023:

 Three Months Ended March 31, 2023
(in thousands)Railroad Jefferson
Terminal
 Repauno Power and
Gas
 Four Core
Segments
Net income (loss) attributable to stockholders$8,098  $(9,162) $(8,831) $8,542  $(1,353)
Add: Provision for income taxes 598   198   114      910 
Add: Equity-based compensation expense 325   444   126      895 
Add: Acquisition and transaction expenses 183         22   205 
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      1,125 
Add: Asset impairment charges 141            141 
Add: Incentive allocations              
Add: Depreciation and amortization expense 5,101   11,869   2,245      19,215 
Add: Interest expense 955   7,884   588   2   9,429 
Add: Pro-rata share of Adjusted EBITDA from unconsolidated entities (1)          10,509   10,509 
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) 1,288            1,288 
Less: Equity in earnings of unconsolidated entities          (7,761)  (7,761)
Less: Non-controlling share of Adjusted EBITDA (3) (18)  (4,715)  (228)     (4,961)
Adjusted EBITDA$17,151  $6,518  $(4,861) $11,314  $30,122 

________________________________________________________

(1) Power and Gas:
  Includes the following items for the three months ended March 31, 2023: (i) net income (loss) of $7,761, (ii) interest expense of $7,234, (iii) depreciation and amortization expense of $5,340, (iv) acquisition and transaction expenses of $20, (v) changes in fair value of non-hedge derivative instruments of $(9,847), and (vi) equity-based compensation of $1.
(2) Railroad:
  Includes the following items for the three months ended March 31, 2023: subsidiary severance expense of $1,288.
(3) Railroad:
  Includes the following items for the three months ended March 31, 2023: (i) equity-based compensation of $1, (ii) provision for income taxes of $1, (iii) depreciation and amortization expense of $10, (iv) interest expense of $2, (v) other non-recurring items of $3 and (vi) interest and other costs on pension and OPEB liabilities of $1.
  Jefferson:
  Includes the following items for the three months ended March 31, 2023: (i) equity-based compensation of $102, (ii) provision for income taxes of $46, (iii) interest expense of $1,823 and (iv) depreciation and amortization expense of $2,744.
  Repauno:
  Includes the following items for the three months ended March 31, 2023: (i) equity-based compensation of $7, (ii) interest expense of $32, (iii) depreciation and amortization expense of $122, (iv) provision for income taxes of $6, and (v) changes in fair value of non-hedge derivative instruments of $61.

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