Ftai Infrastructure Inc. · NASDAQ:FIP
Ftai Infrastructure — Q3 2023 Earnings Presentation
39 slides from Ftai Infrastructure's earnings presentation, Oct 27, 2023
Slide 1: Supplemental Information Third Quarter 2023
Repauno Port & Rail Terminal Jefferson Terminal Supplemental Information Third 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: Third Quarter Review
Third Quarter Review (Fra INFRASTRUCTURE
Slide 4: Consolidated Financial Results
Consolidated Financial Results Generated $32.2 million of Adj. EBITDA(1) before corporate expenses in Q3 Executed multiple contracts in recent months which are expected to generate $20+ million of annual run- rate Adj. EBITDA(1) upon achieving anticipated volumes(2,3) We believe recent activit
Slide 5: Q3 Segment Highlights
Q3 Segment Highlights Adj. EBITDA(1) Highlights ($ in millions) Q3 impacted by UAW strike (carload mix) and higher operating expenses associated with fuel and rail equipment, (2) both of which are expected to normalize in Q4 $17.4 New third party business opportunities (railcar repair, transload
Slide 6: Capital Structure
Capital Structure Capitalized with senior secured notes and preferred equity Jefferson asset-level debt low cost, non-recourse, non-callable in event of sale Capital Structure Company Structure September 30, ($ in millions) 2023 Cash & Cash Equivalents $24.4 $600mm senior secured notes $300mm
Slide 7: Segment Review
Segment Review (Fra INFRASTRUCTURE
Slide 8: Railroad
Railroad(1) Generated revenue of $41.9 million and Adj. EBITDA(2) of $17.4 million − Q3 impacted by UAW strike (carload mix) and higher operating expenses associated with fuel and rail equipment, both of which are expected to normalize in Q4 Focused on continuing to grow third-party business − R
Slide 9: Jefferson Terminal
Jefferson Terminal Generated Adj. EBITDA(1) of $7.8 million, up from $7.1 million in Q2’23 Secured new business − Executed multiple contracts in recent months which are expected to generate $20+ million of annual run-rate Adj. EBITDA upon achieving anticipated volumes(2,3); a portion of these co
Slide 10: Repauno
Repauno Adj. EBITDA(1) loss continued to narrow in Q3; focusing on costs and additional Phase 1 contracts Currently moving record volumes of LPG(2) through the terminal Continue to make progress on securing long-term contracts for Phase 2 buildout; anchor contract expected to be signed in Q4(3
Slide 11: Power and Gas
Power and Gas Generated Adj. EBITDA(1) of $8.0 million in Q3’23 − The power plant operated efficiently with a capacity factor of 98% − Q3 impacted by reduced gas production during historically low-price environment Financing to develop West Virginia gas wells expected to be finalized in Q4; well
Slide 12: Sustainability and Energy Transition
Sustainability and Energy Transition(1) Aleon to commence commercial sales of recycled metals in Q4 Clean Planet Energy advancing four recycling facilities in key U.S. markets including one at Repauno and one at Jefferson Terminal Clean Planet Energy Refinery catalyst and lithium Waste plastic r
Slide 13: Appendix
Appendix (Fra INFRASTRUCTURE
Slide 14: Appendix contents
Appendix: ▪ Statement of Operations by Segment ▪ Comparative Statements of Operations ▪ Condensed Balance Sheets by Segment ▪ Reconciliation of Non-GAAP Measures ▪ Glossary 13
Slide 15: Statement of Operations by Segment
Statement of Operations by Segment 14
Slide 16: Statement of Operations by Segment (unaudited)
Statement of Operations by Segment (unaudited) Three Months Ended September 30, 2023 Ports and Terminals Sustainability Railroad Power and Gas and Energy Corporate and Total Jefferson Repauno Other Terminal Transition ($s in thousands) Revenues Total revenues $ 41,864 $ 16,610 $ 4,087 $ — $ — $ 18,1
Slide 17: Statement of Operations by Segment (unaudited)
Statement of Operations by Segment (unaudited) Three Months Ended September 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 $ 39,186 $ 17,177 $ 1,879 $ — $ — $ 20,3
Slide 18: Statement of Operations by Segment (unaudited)
Statement of Operations by Segment (unaudited) Nine Months Ended September 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 $ 125,415 $ 52,806 $ 6,581 $ — $ — $ 54,2
Slide 19: Statement of Operations by Segment (unaudited)
Statement of Operations by Segment (unaudited) Nine Months Ended September 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 $ 113,887 $ 44,751 $ 1,533 $ — $ — $ 30,4
Slide 20: Comparative Statements of Operations
Comparative Statements of Operations 19
Slide 21: Consolidated (unaudited)
Consolidated (unaudited) Three Months Ended ($s in thousands) 9/30/2022 12/31/2022 3/31/2023 6/30/2023 9/30/2023 Revenues Total revenues $ 78,559 $ 71,391 $ 76,494 $ 81,832 $ 80,706 Expenses Operating expenses 60,934 59,926 65,162 62,775 68,416 General and administrative 3,208 2,755 3,201 3,702 2,48
Slide 22: Railroad (unaudited)
Railroad (unaudited) Three Months Ended ($s in thousands) 9/30/2022 12/31/2022 3/31/2023 6/30/2023 9/30/2023 Revenues Lease income $ 449 $ 453 $ 437 $ 400 $ 394 Rail revenues 38,737 35,321 40,568 42,146 41,470 Total revenues 39,186 35,774 41,005 42,546 41,864 Expenses Operating expenses 22,003 20,93
Slide 23: Jefferson Terminal (unaudited)
Jefferson Terminal (unaudited) Three Months Ended ($s in thousands) 9/30/2022 12/31/2022 3/31/2023 6/30/2023 9/30/2023 Revenues Lease income $ 309 $ 303 $ 306 $ 319 $ 343 Terminal services revenues 16,868 15,235 18,786 16,785 16,267 Total revenues 17,177 15,538 19,092 17,104 16,610 Expenses Operatin
Slide 24: Repauno (unaudited)
Repauno (unaudited) Three Months Ended ($s in thousands) 9/30/2022 12/31/2022 3/31/2023 6/30/2023 9/30/2023 Revenues Rail revenues $ — $ — $ — $ — $ — Terminal services revenues 96 364 362 4,083 4,087 Other revenue 1,783 2,220 (1,815) (136) — Total revenues 1,879 2,584 (1,453) 3,947 4,087 Expenses O
Slide 25: Power and Gas (unaudited)
Power and Gas (unaudited) Three Months Ended ($s in thousands) 9/30/2022 12/31/2022 3/31/2023 6/30/2023 9/30/2023 Expenses Operating expenses $ 298 $ 360 $ 424 $ 173 $ 1,393 Acquisition and transaction expenses 358 100 22 49 — Total expenses 656 460 446 222 1,393 Other (expense) income Equity in (lo
Slide 26: Sustainability and Energy Transition (unaudited)
Sustainability and Energy Transition (unaudited) Three Months Ended ($s in thousands) 9/30/2022 12/31/2022 3/31/2023 6/30/2023 9/30/2023 Expenses Operating expenses $ — $ — $ 1 $ 28 $ — Acquisition and transaction expenses — 251 1 — — Total expenses — 251 2 28 — Other (expense) income Equity in loss
Slide 27: Corporate and Other (unaudited)
Corporate and Other (unaudited) Three Months Ended ($s in thousands) 9/30/2022 12/31/2022 3/31/2023 6/30/2023 9/30/2023 Revenues Roadside services revenues $ 20,317 $ 17,495 $ 17,850 $ 18,235 $ 18,145 Total revenues 20,317 17,495 17,850 18,235 18,145 Expenses Operating expenses 20,173 18,989 18,148
Slide 28: Consolidated Balance Sheets by Segment
Consolidated Balance Sheets by Segment 27
Slide 29: Condensed Balance Sheets by Segment
Condensed Balance Sheets by Segment September 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) $ 478,679 $ 1,100,995 $ 324,769 $ 12,328 $ — $ 7,67
Slide 30: Condensed Balance Sheets by Segment
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 (unaudited)
Adjusted EBITDA Reconciliation by Segment (unaudited)(1) Three Months Ended September 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 $ 10,620 $ (12,017) $ (4,94
Slide 33: Adjusted EBITDA Reconciliation by Segment (unaudited)
Adjusted EBITDA Reconciliation by Segment (unaudited)(1) Three Months Ended September 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 stockholders and Former Parent $ 12,049
Slide 34: Adjusted EBITDA Reconciliation by Segment (unaudited)
Adjusted EBITDA Reconciliation by Segment (unaudited)(1) Nine Months Ended September 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 $ 30,504 $ (29,944) $ (18,28
Slide 35: Adjusted EBITDA Reconciliation by Segment (unaudited)
Adjusted EBITDA Reconciliation by Segment (unaudited)(1) Nine Months Ended September 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 stockholders and Former Parent $ 30,597 $
Slide 36: Notes to Non-GAAP reconciliations - Adjusted EBITDA
Notes to Non-GAAP reconciliations - Adjusted EBITDA ($s in thousands) (1) Refer to FIP's Q2'23 Earnings Supplement, Q1’23 Earnings Supplement and Q4’22 Earnings Supplement for Adjusted EBITDA reconciliation by segment for the three months ended June 30, 2023, March 31, 2023 and December 31, 2022, re
Slide 37: Notes to Non-GAAP reconciliations - Adjusted EBITDA (continued)
Notes to Non-GAAP reconciliations - Adjusted EBITDA (continued) ($s in thousands) (3) Total Includes the following items for the three months ended September 30, 2023: certain non-cash expenses related to cancellation of restricted stock units of $1,131. Includes the following items for the nine mon
Slide 38: Notes to Non-GAAP reconciliations - Adjusted EBITDA (continued)
Notes to Non-GAAP reconciliations - Adjusted EBITDA (continued) ($s in thousands) (4) Jefferson Terminal Includes the following items for the three months ended September 30, 2023 and 2022: (i) equity-based compensation of $658 and $94, (ii) provision for income taxes of $(30) and $462, (iii) intere
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