Ftai Infrastructure Inc. · NASDAQ:FIP
Ftai Infrastructure — Q1 2023 Earnings Presentation
34 slides from Ftai Infrastructure's earnings presentation, May 3, 2023
Slide 1: Supplemental Information First Quarter 2023
Union Railroad Company (Transtar) Long Ridge Energy & Power Repauno Port & Rail Terminal Jefferson Terminal Supplemental Information First Quarter 2023
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: First Quarter Review
First Quarter Review (Fra INFRASTRUCTURE
Slide 4: Consolidated Financial Results
First Quarter Review Consolidated Financial Results Generated $30.1 million of Adj. EBITDA(1), before corporate expenses, up from $9.5 million in Q4’22 On track to reach $200 million of annual run-rate Adj. EBITDA, before corporate expenses, by Q4’23(2) Financial Results ($s in millions) Q1’22 Q
Slide 5: Q1 Segment Highlights
First Quarter Review Q1 Segment Highlights Adj. EBITDA(1) Highlights ($ in millions) (2) Revenue and Adj. EBITDA up 15% and 27%, respectively, $17.2 from Q4’22 driven by increased carloads from U.S. Steel and growing third party business Exxon announced completion of its “BLADE” expansion at Bea
Slide 6: Capital Structure
First Quarter Review Capital Structure Capitalized with senior secured notes and preferred equity Jefferson asset-level debt low cost, non-recourse, non-callable in event of sale Capital Structure Company Structure March 31, ($s in millions) 2023 Cash & Cash Equivalents $40.0 $500mm senior sec
Slide 7: Segment Review
Segment Review (Fra INFRASTRUCTURE
Slide 8: Railroad
Segment Review Railroad(1) Generated revenue of $41.0 million and Adj. EBITDA(2) of $17.2 million, up from $35.8 million and $13.5 million, respectively, in Q4’22 Carloads increased 12% from Q4’22 as USS blast furnaces returned to operation in Gary and Mon Valley Focused on continuing to grow
Slide 9: Jefferson Terminal
Segment Review Jefferson Terminal Generated Adj. EBITDA(1) of $6.5 million, up from $4.5 million in Q4’22 Average daily throughput volume increased 59% from Q4’22 as the Exxon marine contract commenced Progressing toward a multi-year throughput contract at Jefferson South(2) Financial Summary
Slide 10: Repauno
Segment Review Repauno Adj. EBITDA(1) in Q1 includes costs associated with preparing the terminal for the multi-year butane throughput contract (14.5 kbpd) which commenced on April 1 Making progress on securing long-term contracts for Phase 2 buildout; expected to be finalized in coming months(2
Slide 11: Power and Gas
Segment Review Power and Gas Generated Adj. EBITDA(1) of $11.3 million, up from $(6.6) million in Q4’22 − Q4 results include impact of power plant outage; plant operated at 93% capacity in Q1 Average gas production during Q1 reached a record high of 81k MMBtu per day Expect to receive approval
Slide 12: Sustainability and Energy Transition
Segment Review Sustainability and Energy Transition(1) Aleon to commence commercial sales of spent catalyst in the second half of 2023 and demand is expected to be robust in the coming years As development ramps up, expect to utilize grants and tax-exempt municipal financing to fund investments
Slide 13: Appendix
Appendix (Fra INFRASTRUCTURE
Slide 14: Appendix contents
Appendix Appendix: ▪ Statement of Operations by Segment ▪ Comparative Statements of Operations ▪ Condensed Balance Sheets by Segment ▪ Reconciliation of Non-GAAP measures ▪ Glossary 13
Slide 15: Statement of Operations by Segment
Appendix Statement of Operations by Segment 14
Slide 16: Statement of Operations by Segment (unaudited) Q1 2023
Appendix Statement of Operations by Segment (unaudited) Three Months Ended March 31, 2023 Ports and Terminals Sustainability Railroad Power and Gas and Energy Corporate and Total Jefferson Repauno Other Terminal Transition ($s in thousands) Revenues Total revenues $ 41,005 $ 19,092 $ (1,453) $ — $ —
Slide 17: Statement of Operations by Segment (unaudited) Q1 2022
Appendix Statement of Operations by Segment (unaudited) Three Months Ended March 31, 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 $ 35,088 $ 13,046 $ (1,986) $ — $ —
Slide 18: Comparative Statements of Operations
Appendix Comparative Statements of Operations 17
Slide 19: Consolidated (unaudited)
Appendix Consolidated (unaudited) Three Months Ended ($s in thousands) 3/31/2022 6/30/2022 9/30/2022 12/31/2022 3/31/2023 Revenues Total revenues $ 46,148 $ 65,868 $ 78,559 $ 71,391 $ 76,494 Expenses Operating expenses 38,068 49,229 60,934 59,926 65,162 General and administrative 2,430 2,498 3,208 2
Slide 20: Railroad (unaudited)
Appendix Railroad (unaudited) Three Months Ended ($s in thousands) 3/31/2022 6/30/2022 9/30/2022 12/31/2022 3/31/2023 Revenues Lease income $ 488 $ 553 $ 449 $ 453 $ 437 Rail revenues 34,600 39,060 38,737 35,321 40,568 Total revenues 35,088 39,613 39,186 35,774 41,005 Expenses Operating expenses 21,
Slide 21: Jefferson Terminal (unaudited)
Appendix Jefferson Terminal (unaudited) Three Months Ended ($s in thousands) 3/31/2022 6/30/2022 9/30/2022 12/31/2022 3/31/2023 Revenues Lease income $ 352 $ 314 $ 309 $ 303 $ 306 Terminal services revenues 12,694 14,214 16,868 15,235 18,786 Total revenues 13,046 14,528 17,177 15,538 19,092 Expenses
Slide 22: Repauno (unaudited)
Appendix Repauno (unaudited) Three Months Ended ($s in thousands) 3/31/2022 6/30/2022 9/30/2022 12/31/2022 3/31/2023 Revenues Rail revenues $ 86 $ — $ — $ — $ — Terminal services revenues 90 13 96 364 362 Other revenue (2,162) 1,627 1,783 2,220 (1,815) Total revenues (1,986) 1,640 1,879 2,584 (1,453
Slide 23: Power and Gas (unaudited)
Appendix Power and Gas (unaudited) Three Months Ended ($s in thousands) 3/31/2022 6/30/2022 9/30/2022 12/31/2022 3/31/2023 Expenses Operating expenses $ 75 $ 93 $ 298 $ 360 $ 424 Acquisition and transaction expenses — — 358 100 22 Total expenses 75 93 656 460 446 Other (expense) income Equity in los
Slide 24: Sustainability and Energy Transition (unaudited)
Appendix Sustainability and Energy Transition (unaudited) Three Months Ended ($s in thousands) 3/31/2022 6/30/2022 9/30/2022 12/31/2022 3/31/2023 Expenses Operating expenses $ — $ 10 $ — $ — $ 1 Acquisition and transaction expenses — 29 — 251 1 Total expenses — 39 — 251 2 Other (expense) income Equi
Slide 25: Corporate and Other (unaudited)
Appendix Corporate and Other (unaudited) Three Months Ended ($s in thousands) 3/31/2022 6/30/2022 9/30/2022 12/31/2022 3/31/2023 Revenues Roadside services revenues $ — $ 10,087 $ 20,317 $ 17,495 $ 17,850 Total revenues — 10,087 20,317 17,495 17,850 Expenses Operating expenses — 9,807 20,173 18,989
Slide 26: Condensed Balance Sheets by Segment
Appendix Condensed Balance Sheets by Segment 25
Slide 27: Condensed Balance Sheets by Segment, March 31, 2023
Appendix Condensed Balance Sheets by Segment March 31, 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) $ 491,026 $ 1,084,744 $ 317,192 $ 9,513 $ — $
Slide 28: Condensed Balance Sheets by Segment, December 31, 2022
Appendix 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 $ —
Slide 29: Reconciliation of Non-GAAP Measures
Appendix Reconciliation of Non-GAAP Measures 28
Slide 30: Adjusted EBITDA Reconciliation by Segment, Q1 2023
Appendix Adjusted EBITDA Reconciliation by Segment (unaudited)(1) Three Months Ended March 31, 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 $ 8,098 $ (9,162) $ (8
Slide 31: Adjusted EBITDA Reconciliation by Segment, Q1 2022
Appendix Adjusted EBITDA Reconciliation by Segment (unaudited)(1) Three Months Ended March 31, 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 $ 6,956 $ (8,919) $ (
Slide 32: Notes to Non-GAAP reconciliations - Adjusted EBITDA
Appendix Notes to Non-GAAP reconciliations - Adjusted EBITDA ($s in thousands) (1) Refer to FIP’s Q4’22 Earnings Supplement and Q3’22 Earnings Supplement for Adjusted EBITDA reconciliation by segment for the three months ended December 31, 2022 and September 30, 2022, respectively. (2) Total Include
Slide 33: Notes to Non-GAAP reconciliations - Adjusted EBITDA (continued)
Appendix Notes to Non-GAAP reconciliations - Adjusted EBITDA (continued) ($s in thousands) (4) Total Includes the following items for the three months ended March 31, 2023 and 2022: (i) equity-based compensation of $110 and $127, (ii) provision for income taxes of $53 and $15, (iii) interest expense
Slide 34: Glossary
Appendix 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. Adjus