FTAI Infrastructure (FIP) - 2024 Q3 - Quarterly Report

Financial Performance - Total revenues for the three months ended September 30, 2024, increased to $83.3 million, up from$80.7 million in the same period of 2023, representing a change of $2.6 million [144]. - Lease income for the three months ended September 30, 2024, was$1.3 million, compared to $737,000 in 2023, an increase of$576,000 [144]. - Rail revenues rose to $44.3 million for the three months ended September 30, 2024, from$41.5 million in 2023, a growth of $2.8 million [144]. - Terminal services revenues increased to$22.8 million in Q3 2024, up from $20.4 million in Q3 2023, reflecting a rise of$2.5 million [144]. - Roadside services revenues decreased to $14.9 million in Q3 2024, down from$18.1 million in Q3 2023, a decline of $3.2 million [144]. - Net loss attributable to stockholders for the three months ended September 30, 2024, was$49.9 million, compared to a net loss of $56.1 million in 2023, an improvement of$6.1 million [144]. - Adjusted EBITDA for the three months ended September 30, 2024, was $36.9 million, an increase of$12.3 million compared to $24.7 million in the same period of 2023 [146]. - Total revenues increased by$11.7 million for the nine months ended September 30, 2024, primarily due to higher revenues in the Railroad segment ($11.3 million) and Jefferson Terminal segment ($6.7 million) [150]. - Net loss attributable to stockholders improved to $(49.97) million for the three months ended September 30, 2024, compared to$(56.10) million in the same period of 2023, a change of $6.13 million [146]. - Net loss attributable to stockholders was$40.3 million for the three months ended September 30, 2024, compared to $41.2 million for the same period in 2023, reflecting a decrease of$0.9 million (2.2%) [197]. Operating Expenses - Operating expenses for the three months ended September 30, 2024, were $62.8 million, a decrease from$68.4 million in the same period of 2023, down by $5.7 million [144]. - Total expenses decreased by$4.4 million for the three months ended September 30, 2024, primarily due to a $5.7 million decrease in operating expenses [151]. - Operating expenses decreased by$7.8 million for the nine months ended September 30, 2024, reflecting a decrease of $14.2 million in roadside services at FYX [151]. - Total expenses decreased by$5.1 million (19.7%) during the three months ended September 30, 2024, reflecting a decrease in operating expenses of $4.8 million (25.3$0.7 million (88.5%) [200]. - Operating expenses for the three months ended September 30, 2024, were $17.138 million, a decrease of$0.410 million (2.3%) compared to the previous year [170]. Cash Flow and Investments - Cash used for investments was $62.2 million during the nine months ended September 30, 2024, compared to$89.2 million in the same period of 2023 [204]. - Cash flows used in operating activities were $7.2 million for the nine months ended September 30, 2024, compared to$2.2 million in 2023 [204]. - Net cash used in operating activities increased by $5.0 million to$(7,223) thousand in the nine months ended September 30, 2024, compared to $(2,214) thousand in 2023 [206]. - Net cash used in investing activities decreased by$49.4 million to $(89,638) thousand, primarily due to a$25.4 million decrease in property, plant, and equipment acquisition [206]. - Net cash provided by financing activities increased by $84.5 million to$154,015 thousand, driven by a $287.6 million increase in proceeds from debt [206]. Debt and Interest Expense - Interest expense increased by$5.5 million for the three months ended September 30, 2024, primarily due to an increase in average outstanding debt of approximately $216.2 million [153]. - Interest expense for the three months ended September 30, 2024, was$13.107 million, an increase of $4.827 million (58.3$0.4 million in interest expense over the next 12 months [215]. - The company has dividend payments of $58.2 million due on redeemable preferred stock within the next twelve months [208]. Asset Management - Total consolidated assets as of September 30, 2024, were$2.4 billion, with redeemable preferred stock and equity amounting to $0.6 billion [138]. - The Jefferson Terminal reporting unit had a carrying amount of goodwill of$122.7 million as of December 31, 2023, with an estimated fair value exceeding its carrying value by more than 10% but less than 20% [209]. - The company continues to focus on acquiring diverse long-lived assets in critical infrastructure sectors, aiming for high margins and stable cash flows [138]. Other Income and Expenses - Total other expense increased by $39.4 million during the nine months ended September 30, 2024, primarily due to an increase in equity in losses of unconsolidated entities [153]. - Total other income increased by$2.5 million for the three months and $5.3 million for the nine months ended September 30, 2024, reflecting a decrease in interest expense and loss on extinguishment of debt [162]. - Total other expense increased by$0.5 million (6.1%) during the three months ended September 30, 2024, primarily due to a $4.8 million increase in interest expense related to additional borrowings [172]. - Total other expense increased by$10.1 million (29.0%) during the nine months ended September 30, 2024, primarily due to an $8.4 million loss on modification or extinguishment of debt [172]. Adjusted EBITDA - Adjusted EBITDA is utilized as a key performance measure, providing insights into operational performance and resource allocation decisions [142]. - Adjusted EBITDA increased by$12.3 million for the three months and $24.2 million for the nine months ended September 30, 2024 [154]. - Adjusted EBITDA for the three months ended September 30, 2024, was$21.080 million, an increase of $3.646 million compared to the prior year [158]. - Adjusted EBITDA for the three months ended September 30, 2024, increased by$3,135 thousand to $11,105 thousand, compared to$7,970 thousand in the same period of 2023 [184]. - Adjusted EBITDA for the nine months ended September 30, 2024, was $(5,316) thousand, a decrease of$(1,153) thousand compared to $(4,163) thousand in the same period of 2023 [192].