Delaware |
001-41370 |
87-4407005 |
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(State or other jurisdiction of
incorporation or organization)
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(Commission File Number) |
(I.R.S. Employer Identification Number) |
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act: | ||||||||
Title of each class |
Trading Symbol |
Name of each exchange on which registered |
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Common Stock, par value $0.01 per share | FIP | The Nasdaq Global Select Market |
Exhibit Number | Description | |||||||
Press release, dated February 29, 2024, issued by FTAI Infrastructure Inc. |
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104 |
Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document |
FTAI INFRASTRUCTURE INC. | ||
/s/ Kenneth J. Nicholson | ||
Kenneth J. Nicholson | ||
Chief Executive Officer and President |
(in thousands, except per share data) | |||||||||||
Selected Financial Results | Three Months Ended December 31, 2023 | Year Ended December 31, 2023 | |||||||||
Net Loss Attributable to Stockholders | $ | (48,193) | $ | (183,736) | |||||||
Basic Loss per Share of Common Stock |
$ | (0.47) | $ | (1.78) | |||||||
Diluted Loss per Share of Common Stock |
$ | (0.47) | $ | (1.79) | |||||||
Adjusted EBITDA (1) |
$ | 33,294 | $ | 107,522 | |||||||
Adjusted EBITDA - Four Core Segments (1)(2) |
$ | 42,455 | $ | 140,938 |
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Revenues | |||||||||||||||||||||||
Total revenues | $ | 81,440 | $ | 71,391 | $ | 320,472 | $ | 261,966 | |||||||||||||||
Expenses | |||||||||||||||||||||||
Operating expenses | 57,319 | 59,926 | 253,672 | 208,157 | |||||||||||||||||||
General and administrative | 3,445 | 2,755 | 12,833 | 10,891 | |||||||||||||||||||
Acquisition and transaction expenses | 2,586 | 982 | 4,140 | 16,844 | |||||||||||||||||||
Management fees and incentive allocation to affiliate | 3,163 | 3,079 | 12,467 | 12,964 | |||||||||||||||||||
Depreciation and amortization | 20,415 | 18,298 | 80,992 | 70,749 | |||||||||||||||||||
Asset impairment | — | — | 743 | — | |||||||||||||||||||
Total expenses | 86,928 | 85,040 | 364,847 | 319,605 | |||||||||||||||||||
Other (expense) income | |||||||||||||||||||||||
Equity in losses of unconsolidated entities | (17,534) | (19,417) | (24,707) | (67,399) | |||||||||||||||||||
Gain (loss) on sale of assets, net | 6,595 | (1,469) | 6,855 | (1,603) | |||||||||||||||||||
Loss on extinguishment of debt | (16) | — | (2,036) | — | |||||||||||||||||||
Interest expense | (26,172) | (21,133) | (99,603) | (53,239) | |||||||||||||||||||
Other income (expense) | 2,608 | (1,025) | 6,586 | (3,169) | |||||||||||||||||||
Total other expense | (34,519) | (43,044) | (112,905) | (125,410) | |||||||||||||||||||
Loss before income taxes | (40,007) | (56,693) | (157,280) | (183,049) | |||||||||||||||||||
(Benefit from) provision for income taxes |
(90) | (618) | 2,470 | 4,468 | |||||||||||||||||||
Net loss | (39,917) | (56,075) | (159,750) | (187,517) | |||||||||||||||||||
Less: Net loss attributable to non-controlling interests in consolidated subsidiaries | (8,313) | (9,606) | (38,414) | (33,933) | |||||||||||||||||||
Less: Dividends and accretion of redeemable preferred stock | 16,589 | 14,394 | 62,400 | 23,657 | |||||||||||||||||||
Net loss attributable to stockholders/Former Parent | $ | (48,193) | $ | (60,863) | $ | (183,736) | $ | (177,241) | |||||||||||||||
Loss per share: | |||||||||||||||||||||||
Basic | $ | (0.47) | $ | (0.59) | $ | (1.78) | $ | (1.73) | |||||||||||||||
Diluted | $ | (0.47) | $ | (0.59) | $ | (1.79) | $ | (1.73) | |||||||||||||||
Weighted average shares outstanding: | |||||||||||||||||||||||
Basic | 103,426,793 | 102,747,121 | 102,960,812 | 102,747,121 | |||||||||||||||||||
Diluted | 103,426,793 | 102,747,121 | 102,960,812 | 102,747,121 |
December 31, | |||||||||||
2023 | 2022 | ||||||||||
Assets | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 29,367 | $ | 36,486 | |||||||
Restricted cash | 58,112 | 113,156 | |||||||||
Accounts receivable, net | 55,990 | 60,807 | |||||||||
Other current assets | 42,034 | 67,355 | |||||||||
Total current assets | 185,503 | 277,804 | |||||||||
Leasing equipment, net | 35,587 | 34,907 | |||||||||
Operating lease right-of-use assets, net | 69,748 | 71,015 | |||||||||
Property, plant, and equipment, net | 1,630,829 | 1,673,808 | |||||||||
Investments | 72,701 | 73,589 | |||||||||
Intangible assets, net | 52,621 | 60,195 | |||||||||
Goodwill | 275,367 | 260,252 | |||||||||
Other assets | 57,253 | 26,829 | |||||||||
Total assets | $ | 2,379,609 | $ | 2,478,399 | |||||||
Liabilities | |||||||||||
Current liabilities: | |||||||||||
Accounts payable and accrued liabilities | $ | 130,796 | $ | 136,048 | |||||||
Operating lease liabilities | 7,218 | 7,045 | |||||||||
Other current liabilities | 12,623 | 16,488 | |||||||||
Total current liabilities | 150,637 | 159,581 | |||||||||
Debt, net | 1,340,910 | 1,230,157 | |||||||||
Operating lease liabilities | 62,441 | 63,147 | |||||||||
Other liabilities | 87,530 | 236,130 | |||||||||
Total liabilities | 1,641,518 | 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 December 31, 2023 and December 31, 2022, respectively; redemption amount of $446.5 million and $448.2 million as of December 31, 2023 and December 31, 2022, respectively) | 325,232 | 264,590 | |||||||||
Equity | |||||||||||
Common stock ($0.01 par value per share; 2,000,000,000 shares authorized; 100,589,572 and 99,445,074 shares issued and outstanding at December 31, 2023 and December 31, 2022, respectively) | 1,006 | 994 | |||||||||
Additional paid in capital | 843,971 | 911,599 | |||||||||
Accumulated deficit | (182,173) | (60,837) | |||||||||
Accumulated other comprehensive loss | (178,515) | (300,133) | |||||||||
Stockholders' equity | 484,289 | 551,623 | |||||||||
Non-controlling interests in equity of consolidated subsidiaries | (71,430) | (26,829) | |||||||||
Total equity | 412,859 | 524,794 | |||||||||
Total liabilities, redeemable preferred stock and equity | $ | 2,379,609 | $ | 2,478,399 |
Year Ended December 31, | ||||||||||||||
2023 | 2022 | |||||||||||||
Cash flows from operating activities: | ||||||||||||||
Net loss | $ | (159,750) | $ | (187,517) | ||||||||||
Equity in losses of unconsolidated entities | 24,707 | 67,399 | ||||||||||||
(Gain) loss on sale of assets | (6,855) | 1,603 | ||||||||||||
Loss on extinguishment of debt | 2,036 | — | ||||||||||||
Equity-based compensation | 9,199 | 4,146 | ||||||||||||
Depreciation and amortization | 80,992 | 70,749 | ||||||||||||
Asset impairment | 743 | — | ||||||||||||
Change in deferred income taxes | 2,016 | 3,982 | ||||||||||||
Change in fair value of non-hedge derivatives | 1,125 | (1,125) | ||||||||||||
Amortization of deferred financing costs | 6,769 | 4,393 | ||||||||||||
Bad debt expense | 1,977 | 575 | ||||||||||||
Amortization of bond discount | 4,853 | 1,903 | ||||||||||||
Change in: | ||||||||||||||
Accounts receivable | 2,840 | (3,303) | ||||||||||||
Other assets | 25,183 | (7,799) | ||||||||||||
Accounts payable and accrued liabilities | 8,553 | 7,013 | ||||||||||||
Other liabilities | 1,125 | (4,709) | ||||||||||||
Net cash provided by (used in) operating activities | 5,513 | (42,690) | ||||||||||||
Cash flows from investing activities: | ||||||||||||||
Investment in unconsolidated entities | (7,077) | (5,996) | ||||||||||||
Acquisition of business, net of cash acquired | (4,448) | (3,819) | ||||||||||||
Acquisition of leasing equipment | (1,724) | — | ||||||||||||
Acquisition of property, plant and equipment | (99,022) | (217,141) | ||||||||||||
Investment in convertible promissory notes | (36,044) | (47,454) | ||||||||||||
Proceeds from sale of leasing equipment | 105 | — | ||||||||||||
Proceeds from sale of property, plant and equipment | 1,087 | 7,144 | ||||||||||||
Net cash used in investing activities | (147,123) | (267,266) | ||||||||||||
Cash flows from financing activities: | ||||||||||||||
Proceeds from debt | 181,350 | 519,025 | ||||||||||||
Repayment of debt | (75,131) | — | ||||||||||||
Payment of deferred financing costs | (8,834) | (13,605) | ||||||||||||
Proceeds from issuance of redeemable preferred stock | — | 291,000 | ||||||||||||
Redeemable preferred stock issuance costs | — | (16,433) | ||||||||||||
Distributions to Manager | — | (78) | ||||||||||||
Capital contributions from non-controlling interests | — | 731 | ||||||||||||
Distributions to non-controlling interests | (1,647) | (143) | ||||||||||||
Settlement of equity-based compensation | (2,161) | (593) | ||||||||||||
Net transfers to (from) Former Parent | — | (617,321) | ||||||||||||
Cash dividends - common stock | (12,372) | (3,082) | ||||||||||||
Cash dividends - redeemable preferred stock | (1,758) | (1,758) | ||||||||||||
Net cash provided by financing activities | 79,447 | 157,743 | ||||||||||||
Net decrease in cash and cash equivalents and restricted cash |
(62,163) | (152,213) | ||||||||||||
Cash and cash equivalents and restricted cash, beginning of period | 149,642 | 301,855 | ||||||||||||
Cash and cash equivalents and restricted cash, end of period | $ | 87,479 | $ | 149,642 |
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||
(in thousands) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
Net loss attributable to stockholders/Former Parent | $ | (48,193) | $ | (60,863) | $ | (183,736) | $ | (177,241) | |||||||||||||||
Add: (Benefit from) provision for income taxes |
(90) | (618) | 2,470 | 4,468 | |||||||||||||||||||
Add: Equity-based compensation expense | 3,385 | 1,104 | 9,199 | 4,146 | |||||||||||||||||||
Add: Acquisition and transaction expenses | 2,586 | 982 | 4,140 | 16,844 | |||||||||||||||||||
Add: Losses on the modification or extinguishment of debt and capital lease obligations | 16 | — | 2,036 | — | |||||||||||||||||||
Add: Changes in fair value of non-hedge derivative instruments | — | (67) | 1,125 | (1,125) | |||||||||||||||||||
Add: Asset impairment charges | — | — | 743 | — | |||||||||||||||||||
Add: Incentive allocations | — | — | — | — | |||||||||||||||||||
Add: Depreciation & amortization expense(1) |
20,964 | 18,298 | 81,541 | 70,749 | |||||||||||||||||||
Add: Interest expense | 26,172 | 21,133 | 99,603 | 53,239 | |||||||||||||||||||
Add: Pro-rata share of Adjusted EBITDA from unconsolidated entities(2) |
(421) | (8,063) | 20,209 | 13,939 | |||||||||||||||||||
Add: Dividends and accretion of redeemable preferred stock | 16,589 | 14,394 | 62,400 | 23,657 | |||||||||||||||||||
Add: Interest and other costs on pension and OPEB liabilities | 690 | 336 | 2,130 | 1,232 | |||||||||||||||||||
Add: Other non-recurring items(3) |
— | — | 2,470 | — | |||||||||||||||||||
Less: Equity in losses of unconsolidated entities | 17,534 | 19,417 | 24,707 | 67,399 | |||||||||||||||||||
Less: Non-controlling share of Adjusted EBITDA(4) |
(5,938) | (4,245) | (21,515) | (16,279) | |||||||||||||||||||
Adjusted EBITDA (Non-GAAP) | $ | 33,294 | $ | 1,808 | $ | 107,522 | $ | 61,028 |
Three Months Ended December 31, 2023 | |||||||||||||||||||||||||||||
(in thousands) | Railroad | Jefferson Terminal | Repauno | Power and Gas | Four Core Segments | ||||||||||||||||||||||||
Net income (loss) attributable to stockholders | $ | 19,495 | $ | (6,776) | $ | (4,202) | $ | (10,549) | $ | (2,032) | |||||||||||||||||||
Add: (Benefit from) provision for income taxes | (2,403) | 2,244 | 239 | — | 80 | ||||||||||||||||||||||||
Add: Equity-based compensation expense | 648 | 2,186 | 461 | — | 3,295 | ||||||||||||||||||||||||
Add: Acquisition and transaction expenses | 184 | 1,254 | — | 23 | 1,461 | ||||||||||||||||||||||||
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) |
5,002 | 12,809 | 2,420 | — | 20,231 | ||||||||||||||||||||||||
Add: Interest expense | 32 | 8,301 | 712 | — | 9,045 | ||||||||||||||||||||||||
Add: Pro-rata share of Adjusted EBITDA from unconsolidated entities(2) |
— | — | — | 3,331 | 3,331 | ||||||||||||||||||||||||
Add: Dividends and accretion of redeemable preferred stock | — | — | — | — | — | ||||||||||||||||||||||||
Add: Interest and other costs on pension and OPEB liabilities | 690 | — | — | — | 690 | ||||||||||||||||||||||||
Add: Other non-recurring items(3) |
— | — | — | — | — | ||||||||||||||||||||||||
Less: Equity in losses of unconsolidated entities | — | — | — | 12,292 | 12,292 | ||||||||||||||||||||||||
Less: Non-controlling share of Adjusted EBITDA(4) |
(16) | (5,687) | (235) | — | (5,938) | ||||||||||||||||||||||||
Adjusted EBITDA (Non-GAAP) | $ | 23,632 | $ | 14,331 | $ | (605) | $ | 5,097 | $ | 42,455 |
Year Ended December 31, 2023 | |||||||||||||||||||||||||||||
(in thousands) | Railroad | Jefferson Terminal | Repauno | Power and Gas | Four Core Segments | ||||||||||||||||||||||||
Net income (loss) attributable to stockholders | $ | 49,999 | $ | (36,720) | $ | (22,489) | $ | (5,249) | $ | (14,459) | |||||||||||||||||||
Add: (Benefit from) provision for income taxes | (561) | 2,468 | 496 | — | 2,403 | ||||||||||||||||||||||||
Add: Equity-based compensation expense | 1,394 | 5,865 | 1,770 | — | 9,029 | ||||||||||||||||||||||||
Add: Acquisition and transaction expenses | 737 | 1,370 | — | 94 | 2,201 | ||||||||||||||||||||||||
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 | — | — | 1,125 | — | 1,125 | ||||||||||||||||||||||||
Add: Asset impairment charges | 743 | — | — | — | 743 | ||||||||||||||||||||||||
Add: Incentive allocations | — | — | — | — | — | ||||||||||||||||||||||||
Add: Depreciation & amortization expense(1) |
19,590 | 49,465 | 9,336 | — | 78,391 | ||||||||||||||||||||||||
Add: Interest expense | 2,284 | 32,443 | 2,557 | 3 | 37,287 | ||||||||||||||||||||||||
Add: Pro-rata share of Adjusted EBITDA from unconsolidated entities(2) |
— | — | — | 29,987 | 29,987 | ||||||||||||||||||||||||
Add: Dividends and accretion of redeemable preferred stock | — | — | — | — | — | ||||||||||||||||||||||||
Add: Interest and other costs on pension and OPEB liabilities | 2,130 | — | — | — | 2,130 | ||||||||||||||||||||||||
Add: Other non-recurring items(3) |
1,339 | 1,131 | — | — | 2,470 | ||||||||||||||||||||||||
Less: Equity in losses of unconsolidated entities | — | — | — | 9,949 | 9,949 | ||||||||||||||||||||||||
Less: Non-controlling share of Adjusted EBITDA(4) |
(71) | (20,328) | (856) | — | (21,255) | ||||||||||||||||||||||||
Adjusted EBITDA (Non-GAAP) | $ | 78,521 | $ | 35,694 | $ | (8,061) | $ | 34,784 | $ | 140,938 |