Ftai Infrastructure Inc. · NASDAQ:FIP
Ftai Infrastructure — Q2 2024 Earnings Presentation
37 slides from Ftai Infrastructure's earnings presentation, Aug 2, 2024
Slide 1: Supplemental Information Second Quarter 2024
Supplemental Information Second Quarter 2024
Slide 2: Disclaimers
Disclaimers IN GENERAL. This disclaimer applies to this document and the verbal or written comments of any person presenting it. This document, taken together with any such verbal or written comments, is referred to herein as the “Presentation.” The information contained on, or accessible through, a
Slide 3: Second Quarter Review
Second Quarter Review (Fra INFRASTRUCTURE
Slide 4: Consolidated Financial Results
Consolidated Financial Results 2Q net loss of $(54.4) million; 2Q core segment Adj. EBITDA (1) of $41.8 million, up 12% from 1Q Consolidated Adj. EBITDA(1) of $34.3 million, a new quarterly record ($ millions) 2Q’23 1Q’24 2Q’24 Net loss $(38.9) $(56.6) $(54.4) Adj. EBITDA $20.3 $21.7 $22.1 7.1 6
Slide 5: 2Q Core Segment Highlights
2Q Core Segment Highlights ($ millions) Adj. EBITDA(1) Highlights Continued strong carload volumes and record average rate per car (2) $22.1 New railcar repair facility at Union Railroad operated for first full quarter and ramping up to capacity(3) Record average throughput of 215k bpd and rec
Slide 6: Capital Structure
Capital Structure Capitalized with senior secured notes and preferred equity Jefferson asset-level debt low cost, non-recourse to FIP, non-callable in event of sale Capital Structure Company Structure ($ millions) June 30, 2024 Cash & Cash Equivalents $33.1 $600mm senior secured notes $300mm p
Slide 7: Core Segment Review
Core Segment Review (Fra INFRASTRUCTURE
Slide 8: Railroad
Railroad Net income of $15.8 million; Adj. EBITDA(1) of $22.1 million Railcar repair facility at Union Railroad operated for first full quarter and ramping up to capacity(2) Finalized agreement to lease track connecting to East Ohio Valley Railway; anticipate new third-party freight opportunit
Slide 9: Jefferson Terminal
Jefferson Terminal Net loss of $(14.2) million; Adj. EBITDA(1) of $12.3 million − Record throughput of 215k bpd and record revenue of $21.2 million Completed new financing with proceeds used to (i) refinance near-term maturities, (ii) redeem existing bonds at a discount and (iii) fund new constr
Slide 10: Repauno
Repauno Increasing scope of Phase 2 expansion in response to customer indications Plan to secure financing and commence Phase 2 construction in the third quarter of 2024(1) Financial Summary Update on Initiatives(1) ($ millions) ($ millions) 2Q’23 1Q’24 2Q’24 2Q’24 Adj. EBITDA(2) $(1.5) Opportun
Slide 11: Long Ridge
Long Ridge Net loss of $(5.2) million; Adj. EBITDA(1) of $8.8 million (power plant was offline in May for scheduled maintenance) Recent capacity auction results represent $32 million of incremental Adj. EBITDA, or $16 million for 50.1% stake, in 2025/26(2) Multiple new business opportunities a
Slide 12: Appendix
(Fra INFRASTRUCTURE
Slide 13: Appendix
Appendix: ▪ Statement of Operations by Segment ▪ Comparative Statements of Operations ▪ Condensed Balance Sheets by Segment ▪ Reconciliation of Non-GAAP measures 12
Slide 14: Statement of Operations by Segment (unaudited)
Statement of Operations by Segment (unaudited) Three Months Ended June 30, 2024 Ports and Terminals Sustainability Railroad Power and Gas and Energy Corporate and Total Jefferson Terminal Repauno Other Transition ($ thousands) Revenues Total revenues $ 45,638 $ 21,174 $ 3,862 $ — $ — $ 14,213 $ 84,8
Slide 15: Statement of Operations by Segment (unaudited)
Statement of Operations by Segment (unaudited) Three Months Ended June 30, 2023 Ports and Terminals Sustainability Railroad Power and Gas and Energy Corporate and Total Jefferson Terminal Repauno Other Transition ($ thousands) Revenues Total revenues $ 42,546 $ 17,104 $ 3,947 $ — $ — $ 18,235 $ 81,8
Slide 16: Statement of Operations by Segment (unaudited)
Statement of Operations by Segment (unaudited) Six Months Ended June 30, 2024 Ports and Terminals Sustainability Railroad Power and Gas and Energy Corporate and Total Jefferson Terminal Repauno Other Transition ($ thousands) Revenues Total revenues $ 91,950 $ 39,790 $ 7,941 $ — $ — $ 27,741 $ 167,42
Slide 17: Statement of Operations by Segment (unaudited)
Statement of Operations by Segment (unaudited) Six Months Ended June 30, 2023 Ports and Terminals Sustainability Railroad Power and Gas and Energy Corporate and Total Jefferson Terminal Repauno Other Transition ($ thousands) Revenues Total revenues $ 83,551 $ 36,196 $ 2,494 $ — $ — $ 36,085 $ 158,32
Slide 18: Appendix
Appendix: ▪ Statement of Operations by Segment ▪ Comparative Statements of Operations ▪ Condensed Balance Sheets by Segment ▪ Reconciliation of Non-GAAP measures 17
Slide 19: Consolidated (unaudited)
Consolidated (unaudited) Three Months Ended ($ thousands) 6/30/2023 9/30/2023 12/31/2023 3/31/2024 6/30/2024 Revenues Total revenues $ 81,832 $ 80,706 $ 81,440 $ 82,535 $ 84,887 Expenses Operating expenses 62,775 68,416 57,319 64,575 61,225 General and administrative 3,702 2,485 3,445 4,861 2,840 Ac
Slide 20: Railroad (unaudited)
Railroad (unaudited) Three Months Ended ($ thousands) 6/30/2023 9/30/2023 12/31/2023 3/31/2024 6/30/2024 Revenues Lease income $ 400 $ 394 $ 421 $ 411 $ 382 Rail revenues 42,146 41,470 43,609 45,901 45,256 Total revenues 42,546 41,864 44,030 46,312 45,638 Expenses Operating expenses 22,257 24,332 21
Slide 21: Jefferson Terminal (unaudited)
Jefferson Terminal (unaudited) Three Months Ended ($ thousands) 6/30/2023 9/30/2023 12/31/2023 3/31/2024 6/30/2024 Revenues Lease income $ 319 $ 343 $ 469 $ 797 $ 802 Terminal services revenues 16,785 16,267 18,871 17,819 20,372 Total revenues 17,104 16,610 19,340 18,616 21,174 Expenses Operating ex
Slide 22: Repauno (unaudited)
Repauno (unaudited) Three Months Ended ($ thousands) 6/30/2023 9/30/2023 12/31/2023 3/31/2024 6/30/2024 Revenues Terminal services revenues $ 4,083 $ 4,087 $ 4,109 $ 4,078 $ 3,862 Other revenue (136) — 1 1 — Total revenues 3,947 4,087 4,110 4,079 3,862 Expenses Operating expenses 5,776 6,179 5,319 6
Slide 23: Power and Gas (unaudited)
Power and Gas (unaudited) Three Months Ended ($ thousands) 6/30/2023 9/30/2023 12/31/2023 3/31/2024 6/30/2024 Expenses Operating expenses $ 173 $ 1,393 $ 736 $ 692 $ 330 Acquisition and transaction expenses 49 — 23 — 398 Total expenses 222 1,393 759 692 728 Other income (expense) Equity in earnings
Slide 24: Sustainability and Energy Transition (unaudited)
Sustainability and Energy Transition (unaudited) Three Months Ended ($ thousands) 6/30/2023 9/30/2023 12/31/2023 3/31/2024 6/30/2024 Expenses Operating expenses $ 28 $ — $ — $ — $ 7 Total expenses 28 — — — 7 Other (expense) income Equity in losses of unconsolidated entities (3,277) (2,867) (5,254) (
Slide 25: Corporate and Other (unaudited)
Corporate and Other (unaudited) Three Months Ended ($ thousands) 6/30/2023 9/30/2023 12/31/2023 3/31/2024 6/30/2024 Revenues Roadside services revenues $ 18,235 $ 18,145 $ 13,960 $ 13,528 $ 14,213 Total revenues 18,235 18,145 13,960 13,528 14,213 Expenses Operating expenses 18,551 18,964 13,503 13,7
Slide 26: Appendix
Appendix: ▪ Statement of Operations by Segment ▪ Comparative Statements of Operations ▪ Condensed Balance Sheets by Segment ▪ Reconciliation of Non-GAAP measures 25
Slide 27: Condensed Balance Sheets by Segment
Condensed Balance Sheets by Segment June 30, 2024 Ports and Terminals Sustainability and Corporate and Railroad Power and Gas Energy Transition Other Total ($ thousands) Jefferson Terminal Repauno Gross Property, Plant and Equipment (PP&E) $ 495,803 $ 1,082,362 $ 331,360 $ — $ — $ 11,780 $ 1,921,305
Slide 28: Condensed Balance Sheets by Segment
Condensed Balance Sheets by Segment December 31, 2023 Ports and Terminals Sustainability and Corporate and Railroad Power and Gas Energy Transition Other Total ($ thousands) Jefferson Terminal Repauno Gross Property, Plant and Equipment (PP&E) $ 487,654 $ 1,084,822 $ 326,665 $ — $ — $ 7,995 $ 1,907,
Slide 29: Appendix
Appendix: ▪ Statement of Operations by Segment ▪ Comparative Statements of Operations ▪ Condensed Balance Sheets by Segment ▪ Reconciliation of Non-GAAP measures 28
Slide 30: Adjusted EBITDA Reconciliation by Segment (unaudited)
Adjusted EBITDA Reconciliation by Segment (unaudited) Three Months Ended June 30, 2024 Jefferson Sustainability Corporate and Railroad Terminal Repauno Power and Gas and Energy Other Total ($ thousands) Transition Net income (loss) attributable to stockholders $ 15,788 $ (14,152) $ (4,160) $ (5,173)
Slide 31: Adjusted EBITDA Reconciliation by Segment (unaudited)
Adjusted EBITDA Reconciliation by Segment (unaudited) Three Months Ended June 30, 2023 Jefferson Sustainability Corporate and Railroad Terminal Repauno Power and Gas and Energy Other Total ($ thousands) Transition Net income (loss) attributable to stockholders $ 11,786 $ (8,765) $ (4,510) $ 3,059 $
Slide 32: Adjusted EBITDA Reconciliation by Segment (unaudited)
Adjusted EBITDA Reconciliation by Segment (unaudited) Six Months Ended June 30, 2024 Jefferson Sustainability Corporate and Railroad Terminal Repauno Power and Gas and Energy Other Total ($ thousands) Transition Net income (loss) attributable to stockholders $ 30,224 $ (25,272) $ (8,420) $ (10,600)
Slide 33: Adjusted EBITDA Reconciliation by Segment (unaudited)
Adjusted EBITDA Reconciliation by Segment (unaudited) Six Months Ended June 30, 2023 Jefferson Sustainability Corporate and Railroad Terminal Repauno Power and Gas and Energy Other Total ($ thousands) Transition Net income (loss) attributable to stockholders $ 19,884 $ (17,927) $ (13,341) $ 11,601 $
Slide 34: Notes to Non-GAAP reconciliations - Adjusted EBITDA
Notes to Non-GAAP reconciliations - Adjusted EBITDA ($ thousands) (1) Refer to FIP's Q1'24 Earnings Supplement, Q4’23 Earnings Supplement and Q3’23 Earnings Supplement for Adjusted EBITDA reconciliation by segment for the three months ended March 31, 2024, December 31, 2023 and September 30, 2023, r
Slide 35: Notes to Non-GAAP reconciliations - Adjusted EBITDA (continued)
Notes to Non-GAAP reconciliations - Adjusted EBITDA (continued) ($ thousands) (3) Sustainability Includes the following items for the three months ended June 30, 2024 and 2023: (i) net loss of $(5,463) and $(3,280), (ii) interest expense of $1,705 and $914 and (iii) depreciation and amortization exp
Slide 36: Notes to Non-GAAP reconciliations - Adjusted EBITDA (continued)
Notes to Non-GAAP reconciliations - Adjusted EBITDA (continued) ($ thousands) (5) Jefferson Terminal Includes the following items for the three months ended June 30, 2024 and 2023: (i) equity-based compensation of $259 and $71, (ii) (benefit from) provision for income taxes of $(143) and $35, (iii)
Slide 37: Glossary
Glossary Adjusted EBITDA The Chief Operating Decision Maker (“CODM”) utilizes Adjusted EBITDA as the key performance measure. This performance measure provides the CODM with the information necessary to assess operational performance, as well as make resource and allocation decisions. Adjusted EBITD