Delaware
|
001-41370
|
87-4407005
|
(State or other jurisdiction of incorporation)
|
(Commission File Number) |
(I.R.S. Employer Identification No.)
|
☐
|
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|
☐ |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
|
☐ |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17
CFR 240.14d-2(b))
|
☐ |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17
CFR 240.13e-4(c))
|
Title of each class
|
Trading Symbol(s)
|
Name of each exchange on which registered
|
Common Stock, par value $0.01 per share
|
FIP |
The Nasdaq Global Select Market
|
Item 2.02.
|
Results of Operations and Financial Condition.
|
Item 9.01
|
Financial Statements and Exhibits.
|
(d)
|
Exhibits.
|
Exhibit
Number
|
Description
|
|
Press release, dated October 26, 2023, issued by FTAI Infrastructure Inc.
|
||
104
|
Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document
|
|
Dated: October 26, 2023
|
|
|
|
FTAI INFRASTRUCTURE INC.
|
|
|
|
/s/ Kenneth J. Nicholson
|
|
Kenneth J. Nicholson
|
|
Chief Executive Officer and President
|
(in thousands, except per share data)
|
||||
Selected Financial Results
|
Q3’23
|
|||
Net Loss Attributable to Stockholders
|
$
|
(56,101
|
)
|
|
Basic and Diluted Loss per Share of Common Stock
|
$
|
(0.55
|
)
|
|
Adjusted EBITDA(1)
|
$
|
24,655
|
||
Adjusted EBITDA - Four core segments (1)(2)
|
$
|
32,208
|
|
(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.
|
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
|||||||||||||||
2023
|
2022
|
2023
|
2022
|
|||||||||||||
Revenues
|
||||||||||||||||
Total revenues
|
$
|
80,706
|
$
|
78,559
|
$
|
239,032
|
$
|
190,575
|
||||||||
Expenses
|
||||||||||||||||
Operating expenses
|
68,416
|
60,934
|
196,353
|
148,231
|
||||||||||||
General and administrative
|
2,485
|
3,208
|
9,388
|
8,136
|
||||||||||||
Acquisition and transaction expenses
|
649
|
2,754
|
1,554
|
15,862
|
||||||||||||
Management fees and incentive allocation to affiliate
|
3,238
|
2,659
|
9,304
|
9,885
|
||||||||||||
Depreciation and amortization
|
20,150
|
18,136
|
60,577
|
52,451
|
||||||||||||
Asset impairment
|
—
|
—
|
743
|
—
|
||||||||||||
Total expenses
|
94,938
|
87,691
|
277,919
|
234,565
|
||||||||||||
Other income (expense)
|
||||||||||||||||
Equity in losses of unconsolidated entities
|
(9,914
|
)
|
(12,080
|
)
|
(7,173
|
)
|
(47,982
|
)
|
||||||||
(Loss) gain on sale of assets, net
|
(263
|
)
|
(134
|
)
|
260
|
(134
|
)
|
|||||||||
Loss on extinguishment of debt
|
(2,020
|
)
|
—
|
(2,020
|
)
|
—
|
||||||||||
Interest expense
|
(25,999
|
)
|
(19,161
|
)
|
(73,431
|
)
|
(32,106
|
)
|
||||||||
Other income (expense)
|
2,387
|
(1,132
|
)
|
3,978
|
(2,144
|
)
|
||||||||||
Total other expense
|
(35,809
|
)
|
(32,507
|
)
|
(78,386
|
)
|
(82,366
|
)
|
||||||||
Loss before income taxes
|
(50,041
|
)
|
(41,639
|
)
|
(117,273
|
)
|
(126,356
|
)
|
||||||||
Provision for income taxes
|
8
|
1,555
|
2,560
|
5,086
|
||||||||||||
Net loss
|
(50,049
|
)
|
(43,194
|
)
|
(119,833
|
)
|
(131,442
|
)
|
||||||||
Less: Net loss attributable to non-controlling interests in consolidated subsidiaries
|
(9,932
|
)
|
(8,381
|
)
|
(30,101
|
)
|
(24,327
|
)
|
||||||||
Less: Dividends and accretion on redeemable preferred stock
|
15,984
|
9,263
|
45,811
|
9,263
|
||||||||||||
Net loss attributable to stockholders/Former Parent
|
$
|
(56,101
|
)
|
$
|
(44,076
|
)
|
$
|
(135,543
|
)
|
$
|
(116,378
|
)
|
||||
|
||||||||||||||||
Loss per share:
|
||||||||||||||||
Basic
|
$
|
(0.55
|
)
|
$
|
(0.43
|
)
|
$
|
(1.32
|
)
|
$
|
(1.13
|
)
|
||||
Diluted
|
$
|
(0.55
|
)
|
$
|
(0.43
|
)
|
$
|
(1.32
|
)
|
$
|
(1.13
|
)
|
||||
Weighted average shares outstanding:
|
||||||||||||||||
Basic
|
102,820,651
|
102,730,033
|
102,800,818
|
102,730,033
|
||||||||||||
Diluted
|
102,820,651
|
102,730,033
|
102,800,818
|
102,730,033
|
(Unaudited)
|
||||||||
September 30, 2023
|
December 31, 2022
|
|||||||
Assets
|
||||||||
Current assets:
|
||||||||
Cash and cash equivalents
|
$
|
24,447
|
$
|
36,486
|
||||
Restricted cash
|
53,477
|
113,156
|
||||||
Accounts receivable, net
|
64,693
|
60,807
|
||||||
Other current assets
|
37,340
|
67,355
|
||||||
Total current assets
|
179,957
|
277,804
|
||||||
Leasing equipment, net
|
33,965
|
34,907
|
||||||
Operating lease right-of-use assets, net
|
68,462
|
71,015
|
||||||
Property, plant, and equipment, net
|
1,664,361
|
1,673,808
|
||||||
Investments
|
70,143
|
73,589
|
||||||
Intangible assets, net
|
54,517
|
60,195
|
||||||
Goodwill
|
275,367
|
260,252
|
||||||
Other assets
|
38,363
|
26,829
|
||||||
Total assets
|
$
|
2,385,135
|
$
|
2,478,399
|
||||
Liabilities
|
||||||||
Current liabilities:
|
||||||||
Accounts payable and accrued liabilities
|
$
|
135,820
|
$
|
136,048
|
||||
Current debt, net
|
—
|
—
|
||||||
Operating lease liabilities
|
6,931
|
7,045
|
||||||
Other current liabilities
|
19,658
|
16,488
|
||||||
Total current liabilities
|
162,409
|
159,581
|
||||||
Debt, net
|
1,318,481
|
1,230,157
|
||||||
Operating lease liabilities
|
61,302
|
63,147
|
||||||
Other liabilities
|
62,088
|
236,130
|
||||||
Total liabilities
|
1,604,280
|
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 September 30, 2023 and December 31, 2022; redemption amount of $448.2 million at September 30, 2023 and December 31, 2022)
|
310,401
|
264,590
|
||||||
Equity
|
||||||||
Common stock ($0.01 par value per share; 2,000,000,000 shares authorized; 99,490,386 and 99,445,074 shares issued and outstanding as of September 30, 2023 and December 31, 2022, respectively)
|
994
|
994
|
||||||
Additional paid in capital
|
862,675
|
911,599
|
||||||
Accumulated deficit
|
(150,569
|
)
|
(60,837
|
)
|
||||
Accumulated other comprehensive loss
|
(179,234
|
)
|
(300,133
|
)
|
||||
Stockholders' equity
|
533,866
|
551,623
|
||||||
Non-controlling interest in equity of consolidated subsidiaries
|
(63,412
|
)
|
(26,829
|
)
|
||||
Total equity
|
470,454
|
524,794
|
||||||
Total liabilities, redeemable preferred stock and equity
|
$
|
2,385,135
|
$
|
2,478,399
|
Nine Months Ended September 30,
|
||||||||
2023
|
2022
|
|||||||
Cash flows from operating activities:
|
||||||||
Net loss
|
$
|
(119,833
|
)
|
$
|
(131,442
|
)
|
||
Adjustments to reconcile net loss to net cash used in operating activities:
|
||||||||
Equity in losses of unconsolidated entities
|
7,173
|
47,982
|
||||||
(Gain) loss on sale of assets, net
|
(260
|
)
|
134
|
|||||
Loss on extinguishment of debt
|
2,020
|
—
|
||||||
Equity-based compensation
|
5,814
|
3,042
|
||||||
Depreciation and amortization
|
60,577
|
52,451
|
||||||
Asset impairment
|
743
|
—
|
||||||
Change in deferred income taxes
|
2,148
|
4,851
|
||||||
Change in fair value of non-hedge derivative
|
1,125
|
(1,058
|
)
|
|||||
Amortization of deferred financing costs
|
4,910
|
2,950
|
||||||
Amortization of bond discount
|
3,472
|
—
|
||||||
Provision for credit losses
|
1,661
|
418
|
||||||
Other
|
—
|
899
|
||||||
Change in:
|
||||||||
Accounts receivable
|
(5,547
|
)
|
(20,476
|
)
|
||||
Other assets
|
17,387
|
(17,632
|
)
|
|||||
Accounts payable and accrued liabilities
|
4,204
|
23,199
|
||||||
Management fees payable to affiliate
|
10,926
|
2,381
|
||||||
Other liabilities
|
1,266
|
(5,390
|
)
|
|||||
Net cash used in operating activities
|
(2,214
|
)
|
(37,691
|
)
|
||||
Cash flows from investing activities:
|
||||||||
Investment in unconsolidated entities
|
(6,070
|
)
|
(4,481
|
)
|
||||
Investment in convertible promissory notes
|
(51,044
|
)
|
(20,000
|
)
|
||||
Acquisition of business, net of cash acquired
|
(4,448
|
)
|
(3,819
|
)
|
||||
Acquisition of property, plant and equipment
|
(78,712
|
)
|
(172,226
|
)
|
||||
Proceeds from sale of leasing equipment
|
116
|
—
|
||||||
Proceeds from sale of property, plant and equipment
|
1,148
|
5,656
|
||||||
Net cash used in investing activities
|
(139,010
|
)
|
(194,870
|
)
|
||||
Cash flows from financing activities:
|
||||||||
Proceeds from debt
|
162,100
|
482,375
|
||||||
Repayment of debt
|
(75,131
|
)
|
—
|
|||||
Payment of deferred financing costs
|
(6,472
|
)
|
(12,803
|
)
|
||||
Proceeds from issuance of redeemable preferred stock
|
—
|
291,000
|
||||||
Redeemable preferred stock issuance costs
|
—
|
(16,418
|
)
|
|||||
Cash dividends - common stock
|
(9,254
|
)
|
—
|
|||||
Capital contribution from non-controlling interests
|
—
|
732
|
||||||
Net transfers to Former Parent, net
|
—
|
(617,322
|
)
|
|||||
Settlement of equity-based compensation
|
(90
|
)
|
(148
|
)
|
||||
Distributions to non-controlling interests
|
(1,647
|
)
|
—
|
|||||
Distribution to Manager
|
—
|
(79
|
)
|
|||||
Net cash provided by financing activities
|
69,506
|
127,337
|
||||||
Net decrease in cash and cash equivalents and restricted cash
|
(71,718
|
)
|
(105,224
|
)
|
||||
Cash and cash equivalents and restricted cash, beginning of period
|
149,642
|
301,855
|
||||||
Cash and cash equivalents and restricted cash, end of period
|
$
|
77,924
|
$
|
196,631
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
|||||||||||||||||||||||
(in thousands)
|
2023
|
2022
|
Change
|
2023
|
2022
|
Change
|
||||||||||||||||||
Net loss attributable to stockholders/Former Parent
|
$
|
(56,101
|
)
|
$
|
(44,076
|
)
|
$
|
(12,025
|
)
|
$
|
(135,543
|
)
|
$
|
(116,378
|
)
|
$
|
(19,165
|
)
|
||||||
Add: Provision for income taxes
|
8
|
1,555
|
(1,547
|
)
|
2,560
|
5,086
|
(2,526
|
)
|
||||||||||||||||
Add: Equity-based compensation expense
|
4,277
|
1,377
|
2,900
|
5,814
|
3,042
|
2,772
|
||||||||||||||||||
Add: Acquisition and transaction expenses
|
649
|
2,754
|
(2,105
|
)
|
1,554
|
15,862
|
(14,308
|
)
|
||||||||||||||||
Add: Losses on the modification or extinguishment of debt and capital lease obligations
|
2,020
|
—
|
2,020
|
2,020
|
—
|
2,020
|
||||||||||||||||||
Add: Changes in fair value of non-hedge derivative instruments
|
—
|
(310
|
)
|
310
|
1,125
|
(1,058
|
)
|
2,183
|
||||||||||||||||
Add: Asset impairment charges
|
—
|
—
|
—
|
743
|
—
|
743
|
||||||||||||||||||
Add: Incentive allocations
|
—
|
—
|
—
|
—
|
—
|
—
|
||||||||||||||||||
Add: Depreciation & amortization expense
|
20,150
|
18,136
|
2,014
|
60,577
|
52,451
|
8,126
|
||||||||||||||||||
Add: Interest expense
|
25,999
|
19,161
|
6,838
|
73,431
|
32,106
|
41,325
|
||||||||||||||||||
Add: Pro-rata share of Adjusted EBITDA from unconsolidated entities (1)
|
5,554
|
9,770
|
(4,216
|
)
|
20,630
|
22,002
|
(1,372
|
)
|
||||||||||||||||
Add: Dividends and accretion on redeemable preferred stock
|
15,984
|
9,263
|
6,721
|
45,811
|
9,263
|
36,548
|
||||||||||||||||||
Add: Interest and other costs on pension and OPEB liabilities
|
480
|
896
|
(416
|
)
|
1,440
|
896
|
544
|
|||||||||||||||||
Add: Other non-recurring items (2)
|
1,131
|
—
|
1,131
|
2,470
|
—
|
2,470
|
||||||||||||||||||
Less: Equity in losses of unconsolidated entities
|
9,914
|
12,080
|
(2,166
|
)
|
7,173
|
47,982
|
(40,809
|
)
|
||||||||||||||||
Less: Non-controlling share of Adjusted EBITDA (3)
|
(5,410
|
)
|
(4,502
|
)
|
(908
|
)
|
(15,577
|
)
|
(12,034
|
)
|
(3,543
|
)
|
||||||||||||
Adjusted EBITDA (non-GAAP)
|
$
|
24,655
|
$
|
26,104
|
$
|
(1,449
|
)
|
$
|
74,228
|
$
|
59,220
|
$
|
15,008
|
(1)
|
Includes the following items for the three months ended September 30, 2023 and 2022: (i) net loss of $(9,941) and $(12,177), (ii) interest expense of $8,830
and $7,551, (iii) depreciation and amortization expense of $6,965 and $7,883, (iv) acquisition and transaction expenses of $50 and $(16), (v) changes in fair value of non-hedge derivative instruments of $(352) and $6,432, (vi)
equity-based compensation of $2 and $95 and (vii) asset impairment of $— and $2, respectively. Includes the following items for the nine months ended September 30, 2023 and 2022: (i) net loss of $(7,283) and $(48,184), (ii) interest
expense of $25,166 and $20,809, (iii) depreciation and amortization expense of $20,598 and $20,516, (iv) acquisition and transaction expenses of $307 and $375, (v) changes in fair value of non-hedge derivative instruments of $(18,162) and
$28,164, (vi) equity-based compensation of $4 and $288 and (vii) asset impairment of $— and $34, respectively.
|
(2)
|
Includes the following items for the three months ended September 30, 2023: certain non-cash expenses related to cancellation of RSUs of $1,131. Includes the
following items for the nine months ended September 30, 2023: certain non-cash expenses related to cancellation of RSUs and Railroad severance expense of $2,470.
|
(3)
|
Includes the following items for the three months ended September 30, 2023 and 2022: (i) equity-based compensation of $718 and $102, (ii) (benefit from)
provision for income taxes of $(19) and $464, (iii) interest expense of $1,821 and $1,326, (iv) depreciation and amortization expense of $2,870 and $2,507, (v) changes in fair value of non-hedge derivative instruments of $— and $(15),
(vi) acquisition and transaction expense of $19 and $117 and (vii) interest and other costs on pension and OPEB liabilities of $1 and $1, respectively. Includes the following items for the nine months ended September 30, 2023 and 2022:
(i) equity-based compensation of $904 and $352, (ii) provision for income taxes of $69 and $494, (iii) interest expense of $5,558 and $4,029, (iv) depreciation and amortization expense of $8,950 and $7,091, (v) changes in fair value of
non-hedge derivative instruments of $61 and $(50), (vi) other non-recurring items of $3 and $—, (vii) acquisition and transaction expense of $27 and $117, (viii) interest and other costs on pension and OPEB liabilities of $3 and $1 and
(ix) asset impairment of $2 and $—, respectively.
|
Three Months Ended September 30, 2023
|
||||||||||||||||||||
(in thousands)
|
Railroad
|
Jefferson
Terminal
|
Repauno
|
Power and
Gas
|
Four Core
Segments
|
|||||||||||||||
Net income (loss) attributable to stockholders/Former Parent
|
$
|
10,620
|
$
|
(12,017
|
)
|
$
|
(4,946
|
)
|
$
|
(6,301
|
)
|
$
|
(12,644
|
)
|
||||||
Add: Provision for (benefit from) income taxes
|
524
|
(126
|
)
|
103
|
—
|
501
|
||||||||||||||
Add: Equity-based compensation expense
|
262
|
2,932
|
1,083
|
—
|
4,277
|
|||||||||||||||
Add: Acquisition and transaction expenses
|
186
|
80
|
—
|
—
|
266
|
|||||||||||||||
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
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||
Add: Asset impairment charges
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||
Add: Incentive allocations
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||
Add: Depreciation and amortization expense
|
4,362
|
12,643
|
2,390
|
—
|
19,395
|
|||||||||||||||
Add: Interest expense
|
82
|
8,280
|
642
|
—
|
9,004
|
|||||||||||||||
Add: Pro-rata share of Adjusted EBITDA from unconsolidated entities (1)
|
—
|
—
|
—
|
7,214
|
7,214
|
|||||||||||||||
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)
|
—
|
1,131
|
—
|
—
|
1,131
|
|||||||||||||||
Less: Equity in earnings of unconsolidated entities
|
—
|
—
|
—
|
7,057
|
7,057
|
|||||||||||||||
Less: Non-controlling share of Adjusted EBITDA (3)
|
(19
|
)
|
(5,160
|
)
|
(231
|
)
|
—
|
(5,410
|
)
|
|||||||||||
Adjusted EBITDA
|
$
|
17,434
|
$
|
7,763
|
$
|
(959
|
)
|
$
|
7,970
|
$
|
32,208
|
(1)
|
Power and Gas:
|
(2)
|
Jefferson Terminal:
|
(3)
|
Railroad:
|