Icahn Enterprises L.P. (NASDAQ:IEP) Q1 2023 Earnings Conference Call May 10, 2023 10:00 AM ET Company Participants Jesse Lynn - General Counsel David Willetts - President and CEO Ted Papapostolou - CFO Conference Call Participants Operator Good morning and welcome to the Icahn Enterprises L.P. Q1 2023 Earnings Call with Jesse Lynn, General Counsel; David Willetts, President and CEO; and Ted Papapostolou, Chief Financial Officer. I would now like to hand the call over to Jesse Lynn, who will read their openi ...

Financial Performance - IEP's Q1 2023 net loss attributable was $270 million, compared to a net income of $323 million for Q1 2022[17] - IEP's Q1 2023 Adjusted EBITDA was $116 million, compared to $616 million for Q1 2022[17] - The Investment Funds had a negative return of 4.1% for Q1 2023[17] - The Energy segment had net income attributable to IEP of $132 million in Q1 2023, compared to $61 million in Q1 2022[17] - Automotive segment net sales and other revenues decreased by $106 million for Q1 2023 compared to Q1 2022, while Adjusted EBITDA improved by $23 million[40] Segment Results - The Energy segment's Adjusted EBITDA attributable to IEP increased by $87 million to $229 million for Q1 2023 compared to $142 million in the prior-year period[34] - Real Estate segment Q1 2023 Adjusted EBITDA decreased by $3 million compared to Q1 2022[56] - All Other segments' Adjusted EBITDA was $20 million in Q1 2023, compared to $16 million for Q1 2022[5] Assets and Liquidity - As of March 31, 2023, the fair value of IEP's investment in the Funds was approximately $4 billion[35] - Holding Company cash and cash equivalents were $1868 million[48] - As of March 31, 2023, the Funds had a net short notional exposure of 38%[29]

PART I. FINANCIAL INFORMATION [Financial Statements (Unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) Presents the unaudited condensed consolidated financial statements for the quarterly period ended March 31, 2023 [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets decreased to $26.27 billion and total equity fell to $8.50 billion as of March 31, 2023 Condensed Consolidated Balance Sheet Highlights (in millions) | Account | March 31, 2023 | December 31, 2022 | | :--- | :--- | :--- | | **Total Assets** | **$26,269** | **$27,914** | | Total Liabilities | $17,773 | $18,356 | | **Total Equity** | **$8,496** | **$9,558** | | Equity attributable to Icahn Enterprises | $3,091 | $3,900 | [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) The company reported a net loss of $270 million for Q1 2023, a reversal from a $323 million net income in Q1 2022 Q1 2023 vs Q1 2022 Performance (in millions, except per unit data) | Metric | Q1 2023 | Q1 2022 | | :--- | :--- | :--- | | Total Revenues | $2,641 | $4,093 | | Net (Loss) Gain from Investment Activities | $(443) | $939 | | Loss on Deconsolidation of Subsidiary | $226 | $-- | | **Net (Loss) Income Attributable to Icahn Enterprises** | **$(270)** | **$323** | | Diluted (Loss) Income per LP Unit | $(0.75) | $1.06 | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flow was $247 million in Q1 2023, a significant decrease from $1.92 billion in the prior-year period Cash Flow Summary (in millions) | Activity | Q1 2023 | Q1 2022 | | :--- | :--- | :--- | | Net Cash from Operating Activities | $247 | $1,920 | | Net Cash (Used in) Provided by Investing Activities | $(45) | $38 | | Net Cash Provided by (Used in) Financing Activities | $1 | $(435) | [Notes to Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Details key events including the Auto Plus bankruptcy, segment operations, debt, and a new regulatory inquiry - The company operates through seven continuing segments: **Investment, Energy, Automotive, Food Packaging, Real Estate, Home Fashion, and Pharma**[23](index=23&type=chunk) - The Auto Plus subsidiary's bankruptcy led to its deconsolidation and a **non-cash charge of $226 million**[30](index=30&type=chunk)[60](index=60&type=chunk)[61](index=61&type=chunk) - As of March 31, 2023, the company had **total debt of approximately $7.1 billion**, with $5.3 billion at the Holding Company level[115](index=115&type=chunk) - The U.S. Attorney's office for the Southern District of New York requested information related to corporate governance and other materials[153](index=153&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=55&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Discusses Q1 2023 results, segment performance, liquidity, and recent events including a new repurchase authorization [Results of Operations](index=55&type=section&id=Results%20of%20Operations) The Q1 2023 net loss was driven by the Investment segment's (4.1)% return and the Auto Plus deconsolidation Net Income (Loss) Attributable to Icahn Enterprises by Segment (in millions) | Segment | Q1 2023 | Q1 2022 | | :--- | :--- | :--- | | Investment | $(171) | $414 | | Holding Company | $(218) | $(126) | | Energy | $132 | $61 | | Automotive | $(13) | $(28) | | **Consolidated** | **$(270)** | **$323** | - The Investment Funds' return was **(4.1)% for Q1 2023**, driven by net losses in short positions of (6.2)%[173](index=173&type=chunk)[175](index=175&type=chunk) - The Automotive segment's net sales decreased by **$113 million (20%)** due to the deconsolidation of Auto Plus as of January 31, 2023[197](index=197&type=chunk) - A pre-tax loss on deconsolidation of the Auto Plus subsidiary of **$226 million** was recorded for the three months ended March 31, 2023[210](index=210&type=chunk) [Liquidity and Capital Resources](index=69&type=section&id=Liquidity%20and%20Capital%20Resources) The Holding Company had $1.9 billion in cash and $5.3 billion in debt, with a new $1 billion repurchase program authorized - The Holding Company had cash and cash equivalents of approximately **$1.9 billion** and total debt of approximately **$5.3 billion** as of March 31, 2023[215](index=215&type=chunk) - As of March 31, 2023, the Investment Funds had a **net short notional exposure of 38%**, with long exposure at 103% and short exposure at 141%[226](index=226&type=chunk) - On May 9, 2023, the Board approved a repurchase program authorizing the repurchase of up to **$500 million of senior notes and $500 million of depositary units**[224](index=224&type=chunk) - Subsequent to quarter-end, Mr. Icahn and his affiliates redeemed **$867 million** from the Investment segment[232](index=232&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=78&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk stems from its Investment segment, with significant exposure to security value fluctuations - The company's predominant market risk exposure is from its **Investment segment**[254](index=254&type=chunk) - Based on March 31, 2023 balances, a 10% adverse change in fair value would negatively impact securities owned by **~$652 million**, securities sold short by **~$565 million**, and derivatives by **~$1,058 million**[257](index=257&type=chunk) - The impact to IEP's net income from such a change would be less than the total change in fair value, as IEP holds an **approximate 46% interest** in the Investment Funds[257](index=257&type=chunk) [Controls and Procedures](index=80&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective with no material changes to internal controls - The CEO and CFO concluded that the company's disclosure controls and procedures were **effective** as of March 31, 2023[258](index=258&type=chunk) - **No material changes** to internal control over financial reporting occurred during the first quarter of 2023[259](index=259&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=81&type=section&id=Item%201.%20Legal%20Proceedings) The company is subject to ordinary course litigation with no material changes from the 2022 Annual Report - The company is involved in various lawsuits arising in the normal course of business, with details in Note 17 of the financial statements[262](index=262&type=chunk) [Risk Factors](index=81&type=section&id=Item%201A.%20Risk%20Factors) Highlights risks from Carl Icahn's controlling ownership, short-seller reports, and potential investment impairments - Carl Icahn's control (**approx. 84% ownership**) and his substantially pledged units pose a risk of forced sale from a potential margin call[264](index=264&type=chunk)[266](index=266&type=chunk) - The company is subject to short-selling strategies, with a recent report causing **significant price volatility**[270](index=270&type=chunk) - There is a risk of being **taxed as a corporation** if less than 90% of gross income is 'qualifying' income[272](index=272&type=chunk) - Investment risk is highlighted by the Auto Plus bankruptcy, which resulted in a **$226 million non-cash charge** and a write-down of the remaining equity to $0[275](index=275&type=chunk) [Other Information](index=85&type=section&id=Item%205.%20Other%20Information) Reports an increase in the base salary for the Chief Financial Officer, Ted Papapostolou - Effective May 9, 2023, the base salary of CFO Ted Papapostolou was increased from **$550,000 to $850,000** per year[276](index=276&type=chunk) [Exhibits](index=86&type=section&id=Item%206.%20Exhibits) Lists the exhibits filed with the Form 10-Q, including Sarbanes-Oxley certifications and XBRL data files

Financial Highlights - Net sales increased by $567 million (27%) to $27 billion in CVR Energy Q4 2022[1] - Adjusted EBITDA attributable to IEP increased by $128 million to $168 million for Q4 2022 compared to $40 million in the prior-year period[1] - Full year 2022 Adjusted EBITDA attributable to IEP was $758 million compared to $273 million for 2021[81] - The fair value of IEP's investment in the Funds was approximately $42 billion as of December 31, 2022[78] Segment Performance - Petroleum refining margin for 4Q 2022 was $1714 per throughput barrel, compared to $713 during Q4 2021[1] - Nitrogen Fertilizer Q4 2022 EBITDA was $122 million compared to $93 million in Q4 2021[2] - Automotive segment net sales and other revenues increased by $22 million and Adjusted EBITDA improved $54 million for Q4 2022 compared to Q4 2021[6] - Real Estate segment Q4 2022 Adjusted EBITDA improved $6 million compared to Q4 2021[11] - All Other segments Q4 2022 Adjusted EBITDA attributable to IEP was $6 million compared to $12 million for Q4 2021[14] Subsidiary Revolver Availability - Energy: $287 million[19] - Food Packaging: $17 million[19] - Home Fashion: $1 million[19]

Icahn Enterprises L.P. (NASDAQ:IEP) Q4 2022 Earnings Conference Call February 24, 2023 10:00 AM ET Company Participants Rob Flint - Director of Accounting David Willetts - President & CEO Ted Papapostolou - CFO Conference Call Participants Daniel Fannon - Jefferies Andrew Berg - Post Advisory Group Bruce Monrad - Northeast Investor Group Operator Good morning and welcome to the Icahn Enterprises L.P.'s Q4 2022 Earnings Call with Rob Flint, Director of accounting; David Willetts, President and CEO and Ted P ...

Financial Performance - Icahn Enterprises reported net sales of $13,378 million for the year ended December 31, 2022, an increase of 30.2% from $10,304 million in 2021[377]. - The company experienced a net loss attributable to Icahn Enterprises of $183 million in 2022, compared to a net loss of $218 million in 2021, reflecting a 16.1% improvement[377]. - Total assets increased to $27,914 million as of December 31, 2022, up from $27,746 million in 2021, representing a growth of 0.6%[376]. - Total liabilities decreased slightly to $18,356 million in 2022 from $18,403 million in 2021, indicating a reduction of 0.3%[376]. - The company reported comprehensive loss attributable to Icahn Enterprises of $179 million in 2022, compared to a loss of $213 million in 2021, showing a 16% improvement[379]. - As of December 31, 2022, Icahn Enterprises reported a net loss of $25 million, a significant improvement from a net loss of $500 million in 2021 and $2,468 million in 2020[383]. - Cash and cash equivalents increased to $2,337 million in 2022 from $2,321 million in 2021, a growth of 0.7%[376]. - The company’s equity attributable to Icahn Enterprises rose to $3,900 million in 2022, up from $3,544 million in 2021, reflecting a 10.1% increase[376]. Revenue Recognition - The company recognizes revenue from the sale of nitrogen fertilizer products upon delivery and acceptance by the customer[460]. - The Automotive segment recognizes revenues from franchise royalties based on a percentage of franchise sales, generally received over time[467]. - The Pharma segment recognizes product revenue net of estimated returns and consideration paid to customers, wholesalers, and pharmacies[471]. - The Food Packaging segment recognizes revenue at the time products are shipped to the customer, net of discounts and allowances[469]. Investment Activities - The company holds approximately 46% investment in the Investment Funds, which mitigates the impact of fair value changes on its net gain or loss from investment activities[356]. - The total carrying value of investments held by the Investment segment was $6,719 million as of December 31, 2022, compared to $8,952 million in 2021[492]. - The unrealized losses for the Investment segment related to securities still held were $(1,544) million for 2022, $1,153 million for 2021, and $65 million for 2020[493]. - The Investment segment recognized a net loss of $(322) million attributable to investee shareholders for Xerox in 2022, with net sales from operations amounting to $7,107 million[501]. - The company obtained significant influence over Xerox Holding Corporation in the first quarter of 2022, with a fair value investment of $500 million[496]. Debt and Interest Rate Exposure - As of December 31, 2022, the carrying value of the company's long-term debt was approximately $7.1 billion, with an estimated fair value of $6.6 billion[410]. - The company has additional borrowing availability of $305 million subject to variable interest rates, increasing its exposure to interest rate fluctuations[361]. - The company estimates that a 10% adverse change in the fair value of its investments would decrease the fair values of securities owned, sold, and derivatives by approximately $672 million, $650 million, and $968 million, respectively, as of December 31, 2022[356]. Segment Performance - The Energy segment, primarily through CVR Energy, is engaged in petroleum refining and nitrogen fertilizer manufacturing, with CVR Energy owning approximately 71% of its common stock as of December 31, 2022[388]. - The Automotive segment operates through Icahn Automotive Group LLC, focusing on the retail and wholesale distribution of automotive parts and services[389]. - The Pharma segment, through Vivus LLC, includes two approved therapies and one product candidate in active clinical development[394]. Inventory and Cost Management - The cost of goods sold rose to $11,689 million in 2022, up from $9,485 million in 2021, marking a 23.2% increase[377]. - Total inventories increased from $1,478 million in 2021 to $1,531 million in 2022, with raw materials rising from $291 million to $335 million[531]. - The Automotive segment recorded inventory using the last-in, first-out method valued at $246 million as of December 31, 2022, down from $264 million in 2021[431]. Risk Factors - The company faces risks related to economic downturns, competition, and rising operating costs, which could materially affect its financial condition[8]. - The company is subject to risks associated with its investment activities, including potential declines in the fair value of investments due to market conditions[10]. - The company has significant exposure to commodity price risk, particularly in its Energy segment, which relies on a positive spread between raw material costs and finished product values[357]. Cash Flow and Capital Expenditures - The cash flows from operating activities for 2022 were $1,055 million, compared to $321 million in 2021 and a cash outflow of $416 million in 2020[383]. - Capital expenditures for 2022 amounted to $338 million, up from $305 million in 2021[383]. Tax and Regulatory Considerations - The company may be negatively impacted by changes in tax laws and the potential for becoming taxable as a corporation if not treated as a partnership for U.S. federal income tax purposes[12]. Asset Management - The company recorded out-of-period adjustments of $51 million of income related to inventory write-downs at the Automotive Segment in Q4 2022[408]. - Goodwill is reviewed for impairment annually, with an impairment existing when a reporting unit's carrying value exceeds its fair value[435]. - The company utilizes a portfolio approach for accounting right-of-use assets and lease liabilities, reflecting options to extend or terminate leases when reasonably certain[454].

Icahn Enterprises L.P. Q3 2022 Earnings Presentation November 4, 2022 1 Safe Harbor Statement Forward-Looking Statements and Non-GAAP Financial Measures The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for forward-looking statements we make in this presentation, including statements regarding our future performance and plans for our businesses and potential acquisitions. Forward-looking statements may be identified by words such as "expects," "anticipates," "intends," "plans," " ...

Icahn Enterprises L.P. (NASDAQ:IEP) Q3 2022 Earnings Conference Call November 4, 2022 10:00 AM ET Company Participants Rob Flint - Director of Accounting David Willetts - President & Chief Executive Officer Ted Papapostolou - Chief Financial Officer Conference Call Participants Daniel Fannon - Jefferies Bruce Monrad - Northeast Investors Operator Good morning and welcome to the Icahn Enterprises L.P. Third Quarter 2022 Earnings Conference Call with Rob Flint, Director of Accounting; David Willetts, Presiden ...

Icahn Enterprises L.P. Q2 2022 Earnings Presentation August 5, 2022 1 Safe Harbor Statement Forward-Looking Statements and Non-GAAP Financial Measures The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for forward-looking statements we make in this presentation, including statements regarding our future performance and plans for our businesses and potential acquisitions. Forward-looking statements may be identified by words such as "expects," "anticipates," "intends," "plans," "be ...

Icahn Enterprises LP (NASDAQ:IEP) Q2 2022 Earnings Conference Call August 5, 2022 10:00 AM ET Company Participants Jesse Lynn - General Counsel David Willetts - President, CEO & Director Ted Papapostolou - CFO, Director & Secretary Conference Call Participants Chapin Mechem - Northeast Investors Trust Daniel Fannon - Jefferies Operator Good morning, and welcome to the Icahn Enterprises L.P. Q2 2022 Earnings Call with Jesse Lynn, General Counsel; David Willetts, President and CEO; and Ted Papapostolou, Chief ...