FTAI Infrastructure (FIP) - 2024 Q2 - Quarterly Report

Financial Performance - Total revenues for the three months ended June 30, 2024, were $84.887 million, an increase of$3.055 million compared to $81.832 million for the same period in 2023[138]. - Rail revenues increased by$3.110 million to $45.256 million for the three months ended June 30, 2024, compared to$42.146 million in 2023[138]. - Terminal services revenues rose by $3.366 million to$24.234 million for the three months ended June 30, 2024, compared to $20.868 million in 2023[138]. - Total revenues increased by$3.1 million for the three months ended June 30, 2024, driven by higher revenues in the Railroad segment ($3.1 million) and Jefferson Terminal segment ($4.1 million), despite a decrease in Corporate and Other segment revenues by $4.0 million[142]. - Total revenues increased by$4.1 million and $3.6 million for the three and six months ended June 30, 2024, respectively, driven by higher average crude oil throughput volumes[160]. - Net income attributable to stockholders for the three months ended June 30, 2024, was$15.788 million, an increase of $4.002 million (33.9$11.786 million in 2023[150]. - Net income for the six months ended June 30, 2024, was $30.224 million, an increase of$10.340 million (52.0%) compared to $19.884 million in 2023[150]. Expenses and Losses - Operating expenses decreased by$1.550 million to $61.225 million for the three months ended June 30, 2024, compared to$62.775 million in 2023[138]. - Total expenses decreased by $3.2 million for the three months ended June 30, 2024, primarily due to reductions in operating expenses, general and administrative expenses, and asset impairment[143]. - Total expenses increased by$0.5 million (1.8%) during the three months ended June 30, 2024, reflecting a total of $28.714 million[153]. - Total expenses increased by$2.1 million during the three months ended June 30, 2024, and by $5.3 million during the six months ended June 30, 2024[162]. - Net loss attributable to stockholders for the three months ended June 30, 2024, was$54.350 million, compared to a net loss of $38.853 million in 2023, reflecting an increase of$15.497 million[138]. - Net loss attributable to stockholders for the three months ended June 30, 2024, was $(54,350) thousand, an increase of$(15,497) thousand compared to $(38,853) thousand for the same period in 2023[139]. - Net loss increased by$14.3 million during the three months ended June 30, 2024, compared to the same period in 2023[146]. - Net loss attributable to stockholders was $14.152 million for the three months ended June 30, 2024, compared to a loss of$8.765 million in the same period of 2023[159]. - Net loss for the six months ended June 30, 2024, was $46.911 million, compared to a loss of$37.160 million in the same period of 2023[157]. Adjusted EBITDA - Adjusted EBITDA is utilized as the key performance measure, providing insights into operational performance and resource allocation decisions[137]. - Adjusted EBITDA (non-GAAP) increased by $6.6 million to$34,256 thousand for the three months ended June 30, 2024, compared to $27,677 thousand for the same period in 2023[147]. - Adjusted EBITDA increased by$1.8 million (8.9%) and $6.3 million (14.1$(1,502), an increase of $134 compared to$(1,636) for the same period in 2023[171]. - Adjusted EBITDA for the six months ended June 30, 2024, improved by $3.3 million to$(3,185) compared to $(6,497) for the same period in 2023[171]. - Adjusted EBITDA for the three months ended June 30, 2024, decreased by$1,557 thousand to $8,846 thousand, down from$10,403 thousand in the same period of 2023[179]. - Adjusted EBITDA for the six months ended June 30, 2024, decreased by $2,479 thousand to$19,238 thousand, down from $21,717 thousand in the same period of 2023[179]. Interest Expense - Interest expense increased by$5.5 million for the three months ended June 30, 2024, primarily due to an increase in average outstanding debt of approximately $168.7 million[144]. - Interest expense decreased significantly by$1.117 million (91.9%) during the three months ended June 30, 2024, compared to the previous year[150]. - Interest expense for the Power and Gas Segment was $0 for the three months ended June 30, 2024, compared to$(1) for the same period in 2023[172]. - Interest expense for the three months ended June 30, 2024, was $9,465 thousand, compared to$7,378 thousand in the same period of 2023[175]. - Interest expense increased to $11.190 million for the three months ended June 30, 2024, from$7.978 million in the prior year[159]. - Total other expense increased by $3.8 million during the three months ended June 30, 2024, primarily due to increased interest expense[192]. Cash Flow and Investments - Cash used for investments was$52.8 million during the six months ended June 30, 2024, compared to $95.5 million in the same period of 2023[195]. - Net cash used in operating activities increased by$4.5 million, reflecting an increase in net loss and changes in working capital[196]. - Cash flows from financing activities were $173.1 million for the six months ended June 30, 2024, compared to$59.1 million in 2023[196]. - Net cash provided by financing activities increased by $114.0 million, driven by an increase in proceeds from debt of$383.1 million, partially offset by debt repayments of $242.0 million[197]. Company Strategy and Future Outlook - The company continues to focus on acquiring long-lived assets in infrastructure sectors with high barriers to entry and stable cash flows[133]. - The company expects to pursue additional investment opportunities in attractive infrastructure businesses and assets[133]. - The company is evaluating several potential transactions and related financings to increase debt capacity at certain subsidiaries within the next 12 months[195]. - The company expects to meet future short-term liquidity requirements through cash on hand, unused borrowing capacity, or future financings[199]. - The company plans to manage exposure to interest rate movements through the use of interest rate derivatives[203]. Goodwill and Impairment - The carrying amount of goodwill as of December 31, 2023, was$122.7 million for Jefferson Terminal, $147.2 million for Railroad, and$5.4 million for Corporate and Other segments[200]. - The Jefferson Terminal reporting unit had an estimated fair value exceeding its carrying value by more than 10% but less than 20% as of October 1, 2023[201]. - The discount rate for the 2023 goodwill impairment analysis was 10.3%, with an assumed terminal growth rate of 2.5%[201].