FTAI Infrastructure Inc. Reports Second Quarter 2024 Results, Declares Dividend of $0.03 per Share of Common Stock

About this update from Ftai Infrastructure Inc.

NEW YORK , Aug. 02, 2024 (GLOBE NEWSWIRE) -- FTAI Infrastructure Inc. (NASDAQ:FIP) (the “Company” or “FTAI Infrastructure”) today reported financial results for the second quarter 2024. 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 Q2’24 Net Loss Attributable to Stockholders $ (54,350 ) Basic and Diluted Loss per Share of Common Stock $ (0.52 ) Adjusted EBITDA (1) $ 34,256 Adjusted EBITDA - Four core segments (1)(2) $ 41,793 _______________________________(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 2024 Dividends On August 1, 2024 , 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, 2024 , payable on August 20, 2024 to the holders of record on August 12, 2024 . Business Highlights Second quarter Adjusted EBITDA from four core segments of $41.8 million , up 12% from first quarter(1)(2). Transtar generated revenue of $45.6 million as carloads remain steady and average rates per car hit record level; car repair facility fully operational for the quarter with strong momentum. Jefferson Terminal throughput and revenue represented record quarterly levels. Long Ridge revenue reflects May scheduled maintenance outage; recently announced results from power capacity auction to add substantial EBITDA for mid-2025 to mid-2026 period. (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. 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. Nothing on the Company’s website is included or incorporated by reference herein. Conference Call In addition, management will host a conference call on Friday, August 2, 2024 at 8:00 A.M. Eastern Time . The conference call may be accessed by registering via the following link https://register.vevent.com/register/BIf70c417adfcb4f7cb72082d89b0c516a . 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 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 Friday, August 2, 2024 through 11:30 A.M. on Friday, August 9, 2024 on https://ir.fipinc.com/news-events/events . 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, including, but not limited to, Transtar’s continued momentum, and Long Ridge’s potential ability to add substantial EBITDA for mid-2025 to mid-2026 period. 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. For further information, please contact: Alan Andreini Investor Relations FTAI Infrastructure Inc. (646) 734-9414 [email protected] Exhibit - Financial Statements FTAI INFRASTRUCTURE INC. 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 , 2024 2023 2024 2023 Revenues Total revenues $ 84,887 $ 81,832 $ 167,422 $ 158,326 Expenses Operating expenses 61,225 62,775 125,800 127,937 General and administrative 2,840 3,702 7,701 6,903 Acquisition and transaction expenses 921 636 1,847 905 Management fees and incentive allocation to affiliate 2,776 3,084 5,777 6,066 Depreciation and amortization 20,163 20,292 40,684 40,427 Asset impairment — 602 — 743 Total expenses 87,925 91,091 181,809 182,981 Other (expense) income Equity in (losses) earnings of unconsolidated entities (12,788 ) (1,625 ) (24,690 ) 2,741 (Loss) gain on sale of assets, net (150 ) 647 (163 ) 523 Loss on modification or extinguishment of debt (9,170 ) — (9,170 ) — Interest expense (29,690 ) (24,182 ) (57,283 ) (47,432 ) Other income 6,963 1,370 9,328 1,591 Total other expense (44,835 ) (23,790 ) (81,978 ) (42,577 ) Loss before income taxes (47,873 ) (33,049 ) (96,365 ) (67,232 ) Provision for income taxes 267 823 2,072 2,552 Net loss (48,140 ) (33,872 ) (98,437 ) (69,784 ) Less: Net loss attributable to non-controlling interests in consolidated subsidiaries (11,400 ) (10,276 ) (22,090 ) (20,169 ) Less: Dividends and accretion of redeemable preferred stock 17,610 15,257 34,585 29,827 Net loss attributable to stockholders $ (54,350 ) $ (38,853 ) $ (110,932 ) $ (79,442 ) Loss per share: Basic $ (0.52 ) $ (0.38 ) $ (1.06 ) $ (0.77 ) Diluted $ (0.52 ) $ (0.38 ) $ (1.06 ) $ (0.77 ) Weighted average shares outstanding: Basic 105,039,831 102,793,800 104,612,209 102,790,737 Diluted 105,039,831 102,793,800 104,612,209 102,790,737 FTAI INFRASTRUCTURE INC. CONSOLIDATED BALANCE SHEETS (Unaudited) (Dollar amounts in thousands, except share and per share data) (Unaudited) June 30 ,2024 December 31 ,2023 Assets Current assets: Cash and cash equivalents $ 33,101 $ 29,367 Restricted cash 153,364 58,112 Accounts receivable, net 52,221 55,990 Other current assets 50,557 42,034 Total current assets 289,243 185,503 Leasing equipment, net 36,114 35,587 Operating lease right-of-use assets, net 68,280 69,748 Property, plant, and equipment, net 1,605,786 1,630,829 Investments 63,472 72,701 Intangible assets, net 48,838 52,621 Goodwill 275,367 275,367 Other assets 65,308 57,253 Total assets $ 2,452,408 $ 2,379,609 Liabilities Current liabilities: Accounts payable and accrued liabilities $ 111,570 $ 130,796 Operating lease liabilities 7,222 7,218 Other current liabilities 18,828 12,623 Total current liabilities 137,620 150,637 Debt, net 1,554,124 1,340,910 Operating lease liabilities 61,070 62,441 Other liabilities 53,110 87,530 Total liabilities 1,805,924 1,641,518 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, 2024 and December 31, 2023 ; redemption amount of $446 .5 million at June 30, 2024 and December 31, 2023 ) 359,817 325,232 Equity Common stock ( $0.01 par value per share; 2,000,000,000 shares authorized; 101,704,885 and 100,589,572 shares issued and outstanding as of June 30, 2024 and December 31, 2023 , respectively) 1,016 1,006 Additional paid in capital 803,603 843,971 Accumulated deficit (258,520 ) (182,173 ) Accumulated other comprehensive loss (151,268 ) (178,515 ) Stockholders' equity 394,831 484,289 Non-controlling interest in equity of consolidated subsidiaries (108,164 ) (71,430 ) Total equity 286,667 412,859 Total liabilities, redeemable preferred stock and equity $ 2,452,408 $ 2,379,609 FTAI INFRASTRUCTURE INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (Dollar amounts in thousands, unless otherwise noted) Six Months Ended June 30 , 2024 2023 Cash flows from operating activities: Net loss $ (98,437 ) $ (69,784 ) Adjustments to reconcile net loss to net cash used in operating activities: Equity in losses (earnings) of unconsolidated entities 24,690 (2,741 ) Loss (gain) on sale of assets, net 163 (523 ) Loss on modification or extinguishment of debt 9,170 — Equity-based compensation 4,139 1,537 Depreciation and amortization 40,684 40,427 Asset impairment — 743 Change in deferred income taxes 1,493 2,110 Change in fair value of non-hedge derivative — 1,125 Amortization of deferred financing costs 4,570 3,098 Amortization of bond discount 2,898 2,144 Provision for (benefit from) credit losses 514 (74 ) Change in: Accounts receivable 3,255 4,506 Other assets (3,040 ) (4,724 ) Accounts payable and accrued liabilities (12,787 ) (6,202 ) Other liabilities 1,218 11,427 Net cash used in operating activities (21,470 ) (16,931 ) Cash flows from investing activities: Investment in unconsolidated entities (1,639 ) (3,315 ) Acquisition of consolidated subsidiary — (4,448 ) Acquisition of leasing equipment (1,204 ) — Acquisition of property, plant and equipment (27,420 ) (65,696 ) Investment in promissory notes and loans (17,500 ) (22,000 ) Investment in equity instruments (5,000 ) — Proceeds from sale of leasing equipment — 115 Proceeds from sale of property, plant and equipment 111 988 Net cash used in investing activities (52,652 ) (94,356 ) Cash flows from financing activities: Proceeds from debt, net 449,689 66,600 Repayment of debt (242,001 ) — Payment of financing costs (10,022 ) (1,192 ) Cash dividends - common stock (6,303 ) (6,170 ) Settlement of equity-based compensation (3,216 ) (90 ) Distributions to non-controlling interests (15,039 ) (20 ) Net cash provided by financing activities 173,108 59,128 Net decrease in cash and cash equivalents and restricted cash 98,986 (52,159 ) Cash and cash equivalents and restricted cash, beginning of period 87,479 149,642 Cash and cash equivalents and restricted cash, end of period $ 186,465 $ 97,483 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 stockholders, 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 and other costs on pension and other pension expense benefits (“OPEB”) liabilities, dividends and accretion of 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 to Adjusted EBITDA for the three and six months ended June 30, 2024 and 2023: Three Months Ended June 30 , Change Six Months Ended June 30 , Change (in thousands) 2024 2023 2024 2023 Net loss attributable to stockholders $ (54,350 ) $ (38,853 ) $ (15,497 ) $ (110,932 ) $ (79,442 ) $ (31,490 ) Add: Provision for income taxes 267 823 (556 ) 2,072 2,552 (480 ) Add: Equity-based compensation expense 1,799 642 1,157 4,139 1,537 2,602 Add: Acquisition and transaction expenses 921 636 285 1,847 905 942 Add: Losses on the modification or extinguishment of debt and capital lease obligations 9,170 — 9,170 9,170 — 9,170 Add: Changes in fair value of non-hedge derivative instruments — — — — 1,125 (1,125 ) Add: Asset impairment charges — 602 (602 ) — 743 (743 ) Add: Incentive allocations — — — — — — Add: Depreciation & amortization expense (1) 21,596 20,292 1,304 42,693 40,427 2,266 Add: Interest expense 29,690 24,182 5,508 57,283 47,432 9,851 Add: Pro-rata share of Adjusted EBITDA from unconsolidated entities (2) 3,208 6,886 (3,678 ) 9,465 15,076 (5,611 ) Add: Dividends and accretion of redeemable preferred stock 17,610 15,257 2,353 34,585 29,827 4,758 Add: Interest and other costs on pension and OPEB liabilities (138 ) 480 (618 ) 462 960 (498 ) Add: Other non-recurring items (3) — 51 (51 ) — 1,339 (1,339 ) Less: Equity in losses (earnings) of unconsolidated entities 12,788 1,625 11,163 24,690 (2,741 ) 27,431 Less: Non-controlling share of Adjusted EBITDA (4) (8,305 ) (4,946 ) (3,359 ) (13,987 ) (10,167 ) (3,820 ) Adjusted EBITDA (non-GAAP) $ 34,256 $ 27,677 $ 6,579 $ 61,487 $ 49,573 $ 11,914 _______________________________(1) Includes the following items for the three months ended June 30, 2024 and 2023: (i) depreciation and amortization expense of $20,163 and $20,292 and (ii) capitalized contract costs amortization of $1,433 and $—, respectively. Includes the following items for the six months ended June 30, 2024 and 2023: (i) depreciation and amortization expense of $40,684 and $40,427 and (ii) capitalized contract costs amortization of $2,009 and $—, respectively.(2) Includes the following items for the three months ended June 30, 2024 and 2023: (i) net loss of $(12,838) and $(1,660) , (ii) interest expense of $11,182 and $8,304 , (iii) depreciation and amortization expense of $8,050 and $7,967 , (iv) acquisition and transaction expenses of $31 and $237 , (v) changes in fair value of non-hedge derivative instruments of $(3,875) and $(7,963) , (vi) equity-based compensation of $1 and $1 , (vii) asset impairment of $163 and $—, (viii) equity method basis adjustments of $16 and $— and (ix) other non-recurring items of $478 and $—, respectively. Includes the following items for the six months ended June 30, 2024 and 2023: (i) net (loss) income of $(24,780) and $2,658 , (ii) interest expense of $22,075 and $16,336 , (iii) depreciation and amortization expense of $13,180 and $13,633 , (iv) acquisition and transaction expenses of $50 and $257 , (v) changes in fair value of non-hedge derivative instruments of $(1,822) and $(17,810) , (vi) equity-based compensation of $2 and $2 , (vii) asset impairment of $250 and $—, (viii) equity method basis adjustments of $32 and $— and (ix) other non-recurring items of $478 and $—, respectively.(3) Includes the following item for the three and six months ended June 30, 2023 : Railroad severance expense of $51 and $1,339 , respectively.(4) Includes the following items for the three months ended June 30, 2024 and 2023: (i) equity-based compensation of $268 and $76 , (ii) (benefit from) provision for income taxes of $(142) and $35 , (iii) interest expense of $2,639 and $1,880 , (iv) depreciation and amortization expense of $3,387 and $2,944 , (v) acquisition and transaction expense of $3 and $8 , (vi) interest and other costs on pension and OPEB liabilities of $— and $1 , (vii) asset impairment of $— and $2 and (viii) loss on modification or extinguishment of debt of $2,150 and $—, respectively. Includes the following items for the six months ended June 30, 2024 and 2023: (i) equity-based compensation of $699 and $186 , (ii) (benefit from) provision for income taxes of $(276) and $88 , (iii) interest expense of $4,828 and $3,737 , (iv) depreciation and amortization expense of $6,581 and $6,080 , (v) changes in fair value of non-hedge derivative instruments of $— and $61 , (vi) acquisition and transaction expense of $3 and $8 , (vii) interest and other costs on pension and OPEB liabilities of $2 and $2 , (viii) asset impairment of $— and $2 , (ix) loss on modification or extinguishment of debt of $2,150 and $— and (x) other non-recurring items of $— and $3 , respectively. The following tables 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, 2024 : Three Months Ended June 30, 2024 (in thousands) Railroad Jefferson Terminal Repauno Power and Gas Four Core Segments Net income (loss) attributable to stockholders $ 15,788 $ (14,152 ) $ (4,160 ) $ (5,173 ) $ (7,697 ) Add: Provision for (benefit from) income taxes 1,092 (612 ) (25 ) — 455 Add: Equity-based compensation expense 290 1,101 134 — 1,525 Add: Acquisition and transaction expenses 153 8 — 398 559 Add: Losses on the modification or extinguishment of debt and capital lease obligations — 9,170 — — 9,170 Add: Changes in fair value of non-hedge derivative instruments — — — — — Add: Asset impairment charges — — — — — Add: Incentive allocations — — — — — Add: Depreciation & amortization expense (1) 4,860 13,733 2,480 — 21,073 Add: Interest expense 98 11,190 242 — 11,530 Add: Pro-rata share of Adjusted EBITDA from unconsolidated entities (2) — — — 6,285 6,285 Add: Dividends and accretion of redeemable preferred stock — — — — — Add: Interest and other costs on pension and OPEB liabilities (138 ) — — — (138 ) Add: Other non-recurring items — — — — — Less: Equity in losses of unconsolidated entities — — — 7,336 7,336 Less: Non-controlling share of Adjusted EBITDA (3) (22 ) (8,110 ) (173 ) — (8,305 ) Adjusted EBITDA (non-GAAP) $ 22,121 $ 12,328 $ (1,502 ) $ 8,846 $ 41,793 _______________________________(1) Jefferson Terminal Includes the following items for the three months ended June 30, 2024 : (i) depreciation and amortization expense of $12,300 and (ii) capitalized contract costs amortization of $1,433 . (2) Power and Gas Includes the following items for the three months ended June 30, 2024 : (i) net loss of $(7,353) , (ii) interest expense of $9,465 , (iii) depreciation and amortization expense of $7,359 , (iv) acquisition and transaction expenses of $31 , (v) changes in fair value of non-hedge derivative instruments of $(3,875) , (vi) equity-based compensation of $1 , (vii) asset impairment of $163 , (viii) equity method basis adjustments of $16 and (ix) other non-recurring items of $478 . (3) Railroad Includes the following items for the three months ended June 30, 2024 : (i) equity-based compensation of $1 , (ii) provision for income taxes of $3 , (iii) interest expense of $1 , (iv) depreciation and amortization expense of $16 and (v) acquisition and transaction expense of $1 . Jefferson Terminal Includes the following items for the three months ended June 30, 2024 : (i) equity-based compensation of $259 , (ii) benefit from income taxes of $(143) , (iii) interest expense of $2,623 , (iv) depreciation and amortization expense of $3,219 , (v) acquisition and transaction expense of $2 and (vi) loss on modification or extinguishment of debt of $2,150 . Repauno Includes the following items for the three months ended June 30, 2024 : (i) equity-based compensation of $8 , (ii) benefit from income taxes of $(2) , (iii) interest expense of $15 and (iv) depreciation and amortization expense of $152 . Source: FTAI Infrastructure

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