Ftai Infrastructure Inc. · NASDAQ:FIP
Ftai Infrastructure — Q2 2023 Earnings Presentation
39 slides from Ftai Infrastructure's earnings presentation, Aug 2, 2023
Slide 1: Supplemental Information Second Quarter 2023
Repauno Port & Rail Terminal Jefferson Terminal Supplemental Information Second Quarter 2023 Union Railroad Company (Transtar) Long Ridge Energy & Power
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 Generated a record $36.2 million of Adj. EBITDA(1), before corporate expenses, up 20% from $30.1 million in the first quarter of 2023 Goal to reach run-rate of $200 million of annual Adj. EBITDA, before corporate expenses, with no additional capital required(2) Fin
Slide 5: Q2 Segment Highlights
Q2 Segment Highlights Adj. EBITDA(1) Highlights ($ in millions) (2) Generated record Adj. EBITDA(1), up 18% from Q1’23, driven $20.3 by both increased carloads and rates per car, and growing third party business Refined products throughput volume up 30% from Q1’23 Executed long-term throughput
Slide 6: Capital Structure
Capital Structure Capitalized with senior secured notes and preferred equity Jefferson asset-level debt low cost, non-recourse, non-callable in event of sale Capital Structure(1) Company Structure ($ in millions) June 30, 2023 Cash & Cash Equivalents $42.5 $500mm senior secured notes(1) $300mm
Slide 7: Segment Review
Segment Review (Fra INFRASTRUCTURE
Slide 8: Railroad
Railroad(1) Generated revenue of $42.5 million and Adj. EBITDA(2) of $20.3 million, up from $41.0 million and $17.2 million, respectively, in Q1’23 Carloads increased 4% from Q1’23 Focused on continuing to grow third-party business − Buildout of new car repair facility progressing and schedule
Slide 9: Jefferson Terminal
Jefferson Terminal Generated Adj. EBITDA(1) of $7.1 million, up from $6.5 million in Q1’23 Completed commissioning and commenced operations of second ship dock at main terminal Secured new business − Naptha transloading contract commencing immediately − New long-term throughput contract for cl
Slide 10: Repauno
Repauno Adj. EBITDA(1) loss narrowed in Q2 following commencement of multi-year throughput contract on April 1; expect Adj. EBITDA to turn positive during the second half of 2023(2) Making progress on securing long-term contracts for Phase 2 buildout; expected to be finalized in coming months(2)
Slide 11: Power and Gas
Power and Gas Generated Adj. EBITDA(1) of $10.4 million in Q2’23 Steady power revenue with capacity factor at 97% Strategically managing excess gas production in low price environment; well positioned to increase production when gas prices rebound(2) Expect to receive approval to uprate to 5
Slide 12: Sustainability and Energy Transition
Sustainability and Energy Transition(1) Construction of Aleon’s battery metals recycling facility commencing in Q3 Clean Planet Energy advancing four recycling facilities in key U.S. markets including one at Repauno and one at Jefferson Terminal Clean Planet Energy Refinery catalyst and lithium
Slide 13: Appendix
Appendix (Fra INFRASTRUCTURE
Slide 14: Appendix contents
Appendix: ▪ Statement of Operations by Segment ▪ Comparative Statements of Operations ▪ Condensed Balance Sheets by Segment ▪ Reconciliation of Non-GAAP measures ▪ Glossary 13
Slide 15: Statement of Operations by Segment
Statement of Operations by Segment 14
Slide 16: Statement of Operations by Segment - Three Months Ended June 30, 2023
Statement of Operations by Segment (unaudited) Three Months Ended June 30, 2023 Ports and Terminals Sustainability Railroad Power and Gas and Energy Corporate and Total Jefferson Repauno Other Terminal Transition ($s in thousands) Revenues Total revenues $ 42,546 $ 17,104 $ 3,947 $ — $ — $ 18,235 $
Slide 17: Statement of Operations by Segment - Three Months Ended June 30, 2022
Statement of Operations by Segment (unaudited) Three Months Ended June 30, 2022 Ports and Terminals Sustainability Railroad Power and Gas and Energy Corporate and Total Jefferson Repauno Other Terminal Transition ($s in thousands) Revenues Total revenues $ 39,613 $ 14,528 $ 1,640 $ — $ — $ 10,087 $
Slide 18: Statement of Operations by Segment - Six Months Ended June 30, 2023
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 Repauno Other Terminal Transition ($s in thousands) Revenues Total revenues $ 83,551 $ 36,196 $ 2,494 $ — $ — $ 36,085 $ 15
Slide 19: Statement of Operations by Segment - Six Months Ended June 30, 2022
Statement of Operations by Segment (unaudited) Six Months Ended June 30, 2022 Ports and Terminals Sustainability Railroad Power and Gas and Energy Corporate and Total Jefferson Repauno Other Terminal Transition ($s in thousands) Revenues Total revenues $ 74,701 $ 27,574 $ (346) $ — $ — $ 10,087 $ 11
Slide 20: Comparative Statements of Operations
Comparative Statements of Operations 19
Slide 21: Consolidated (unaudited)
Consolidated (unaudited) Three Months Ended ($s in thousands) 6/30/2022 9/30/2022 12/31/2022 3/31/2023 6/30/2023 Revenues Total revenues $ 65,868 $ 78,559 $ 71,391 $ 76,494 $ 81,832 Expenses Operating expenses 49,229 60,934 59,926 65,162 62,775 General and administrative 2,498 3,208 2,755 3,201 3,70
Slide 22: Railroad (unaudited)
Railroad (unaudited) Three Months Ended ($s in thousands) 6/30/2022 9/30/2022 12/31/2022 3/31/2023 6/30/2023 Revenues Lease income $ 553 $ 449 $ 453 $ 437 $ 400 Rail revenues 39,060 38,737 35,321 40,568 42,146 Total revenues 39,613 39,186 35,774 41,005 42,546 Expenses Operating expenses 20,868 22,00
Slide 23: Jefferson Terminal (unaudited)
Jefferson Terminal (unaudited) Three Months Ended ($s in thousands) 6/30/2022 9/30/2022 12/31/2022 3/31/2023 6/30/2023 Revenues Lease income $ 314 $ 309 $ 303 $ 306 $ 319 Terminal services revenues 14,214 16,868 15,235 18,786 16,785 Total revenues 14,528 17,177 15,538 19,092 17,104 Expenses Operatin
Slide 24: Repauno (unaudited)
Repauno (unaudited) Three Months Ended ($s in thousands) 6/30/2022 9/30/2022 12/31/2022 3/31/2023 6/30/2023 Revenues Rail revenues $ — $ — $ — $ — $ — Terminal services revenues 13 96 364 362 4,083 Other revenue 1,627 1,783 2,220 (1,815) (136) Total revenues 1,640 1,879 2,584 (1,453) 3,947 Expenses
Slide 25: Power and Gas (unaudited)
Power and Gas (unaudited) Three Months Ended ($s in thousands) 6/30/2022 9/30/2022 12/31/2022 3/31/2023 6/30/2023 Expenses Operating expenses $ 93 $ 298 $ 360 $ 424 $ 173 Acquisition and transaction expenses — 358 100 22 49 Total expenses 93 656 460 446 222 Other (expense) income Equity in (losses)
Slide 26: Sustainability and Energy Transition (unaudited)
Sustainability and Energy Transition (unaudited) Three Months Ended ($s in thousands) 6/30/2022 9/30/2022 12/31/2022 3/31/2023 6/30/2023 Expenses Operating expenses $ 10 $ — $ — $ 1 $ 28 Acquisition and transaction expenses 29 — 251 1 — Total expenses 39 — 251 2 28 Other (expense) income Equity in l
Slide 27: Corporate and Other (unaudited)
Corporate and Other (unaudited) Three Months Ended ($s in thousands) 6/30/2022 9/30/2022 12/31/2022 3/31/2023 6/30/2023 Revenues Roadside services revenues $ 10,087 $ 20,317 $ 17,495 $ 17,850 $ 18,235 Total revenues 10,087 20,317 17,495 17,850 18,235 Expenses Operating expenses 9,807 20,173 18,989 1
Slide 28: Condensed Balance Sheets by Segment
Condensed Balance Sheets by Segment 27
Slide 29: Condensed Balance Sheets by Segment - June 30, 2023
Condensed Balance Sheets by Segment June 30, 2023 Ports and Terminals Sustainability Corporate and Railroad Power and Gas and Energy Other Total ($s in thousands) Jefferson Terminal Repauno Transition Gross Property, Plant and Equipment (PP&E) $ 491,568 $ 1,097,940 $ 322,054 $ 11,242 $ — $ 7,250 $ 1
Slide 30: Condensed Balance Sheets by Segment - December 31, 2022
Condensed Balance Sheets by Segment December 31, 2022 Ports and Terminals Sustainability Corporate and Railroad Power and Gas and Energy Other Total ($s in thousands) Jefferson Terminal Repauno Transition Gross Property, Plant and Equipment (PP&E) $ 490,304 $ 1,063,755 $ 311,420 $ 8,142 $ — $ 6,234
Slide 31: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures 30
Slide 32: Adjusted EBITDA Reconciliation by Segment - Three Months Ended June 30, 2023
Adjusted EBITDA Reconciliation by Segment (unaudited) Three Months Ended June 30, 2023 Jefferson Power and Sustainability Corporate Railroad Terminal Repauno Gas and Energy and Other Total ($s in thousands) Transition Net income (loss) attributable to stockholders $ 11,786 $ (8,765) $ (4,510) $ 3,05
Slide 33: Adjusted EBITDA Reconciliation by Segment - Three Months Ended June 30, 2022
Adjusted EBITDA Reconciliation by Segment (unaudited) Three Months Ended June 30, 2022 Jefferson Power and Sustainability Corporate Railroad Terminal Repauno Gas and Energy and Other Total ($s in thousands) Transition Net income (loss) attributable to Former Parent $ 11,592 $ (8,823) $ (4,947) $ (13
Slide 34: Adjusted EBITDA Reconciliation by Segment - Six Months Ended June 30, 2023
Adjusted EBITDA Reconciliation by Segment (unaudited) Six Months Ended June 30, 2023 Jefferson Power and Sustainability Corporate Railroad Terminal Repauno Gas and Energy and Other Total ($s in thousands) Transition Net income (loss) attributable to stockholders $ 19,884 $ (17,927) $ (13,341) $ 11,6
Slide 35: Adjusted EBITDA Reconciliation by Segment - Six Months Ended June 30, 2022
Adjusted EBITDA Reconciliation by Segment (unaudited) Six Months Ended June 30, 2022 Jefferson Power and Sustainability Corporate Railroad Terminal Repauno Gas and Energy and Other Total ($s in thousands) Transition Net income (loss) attributable to Former Parent $ 18,548 $ (17,742) $ (13,067) $ (34
Slide 36: Notes to Non-GAAP reconciliations - Adjusted EBITDA
Notes to Non-GAAP reconciliations - Adjusted EBITDA ($s in thousands) (1) Refer to FIP's Q1'23 Earnings Supplement, Q4’22 Earnings Supplement and Q3’22 Earnings Supplement for Adjusted EBITDA reconciliation by segment for the three months ended March 31, 2023, December 31, 2022 and September 30, 202
Slide 37: Notes to Non-GAAP reconciliations - Adjusted EBITDA (continued)
Notes to Non-GAAP reconciliations - Adjusted EBITDA (continued) ($s in thousands) (3) Total Includes the following items for the three and six months ended June 30, 2023: subsidiary severance expense of $51 and $1,339, respectively. Railroad Includes the following items for the three and six months
Slide 38: Notes to Non-GAAP reconciliations - Adjusted EBITDA (continued)
Notes to Non-GAAP reconciliations - Adjusted EBITDA (continued) ($s in thousands) (4) Repauno Includes the following items for the three months ended June 30, 2023 and 2022: (i) equity-based compensation of $5 and $9, (ii) interest expense of $33 and $20, (iii) depreciation and amortization expense
Slide 39: 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