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.
 

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