Financial Performance - Total revenues for the three months ended March 31, 2025, increased by $13.6 million to $96.2 million compared to $82.5 million in the same period of 2024 [234]. - Adjusted EBITDA for the three months ended March 31, 2025, was $155.2 million, a significant increase of $128 million from $27.2 million in 2024 [235]. - Net income attributable to stockholders for the three months ended March 31, 2025, was $109.7 million, compared to a net loss of $56.6 million in 2024, representing a change of $166.3 million [234]. - Net income increased by $170.5 million for the three months ended March 31, 2025, compared to the previous year [242]. - Adjusted EBITDA decreased by $1.7 million during the same period, totaling $19.9 million [251]. - Total revenues decreased by $3.7 million, primarily due to a decrease in carloads and rates per car [248]. - Total expenses decreased by $1.9 million, reflecting a decrease in operating expenses mainly due to reduced carloads [249]. - Other income increased by $0.8 million, primarily from favorable adjustments in pension and OPEB benefits [250]. Segment Performance - Power revenues rose by $15.8 million due to the acquisition of Long Ridge Energy & Power LLC in February 2025 [237]. - In the Railroad segment, total revenues were $42.6 million, down from $46.3 million, with a net income of $13.7 million [246]. - In the Jefferson Terminal segment, total revenues increased by $0.8 million to $19.4 million, with a net loss attributable to stockholders of $15.1 million [253]. - Power segment revenues increased by $17.3 million to $17.294 million, mainly due to a $15.8 million rise in power revenues and a $1.2 million increase in gas revenues from the acquisition of Long Ridge [270]. - The power segment reported a net income attributable to stockholders of $170.044 million, a significant increase from a loss of $5.427 million in the previous year [269]. - Net loss attributable to stockholders for the Repauno segment was $6.793 million, compared to a loss of $4.260 million in the prior year [261]. Expenses and Costs - Operating expenses increased by $2.5 million, primarily due to higher costs associated with the acquisition of Long Ridge Energy & Power LLC [239]. - Acquisition and transaction expenses surged by $2.6 million, mainly due to legal fees related to the Long Ridge acquisition [239]. - Depreciation and amortization expenses increased by $4.5 million, attributed to additional assets from the Long Ridge acquisition [240]. - Asset impairment charges rose by $1.4 million, primarily due to the write-off of the remaining GM-FTAI note receivable in the Sustainability and Energy Transition segment [240]. - Interest expense increased by $7.3 million due to additional borrowings issued in June 2024 [256]. - Total expenses increased by $0.9 million to $9.478 million, driven by higher operating expenses, acquisition costs, and depreciation [263]. - Total expenses in the power segment rose by $12.8 million to $13.470 million, influenced by increased operating, acquisition, and depreciation expenses [271]. Cash Flow and Investments - Net cash used in operating activities increased by $81.8 million to $(85.651) million for the three months ended March 31, 2025 [290]. - Net cash provided by investing activities increased by $183.1 million, primarily due to an increase in the acquisition of business by $226.6 million [291]. - Net cash used in financing activities increased by $2.1 million, primarily due to increased payments of cash dividends on preferred and common stock [292]. - Cash used for investments was $164.2 million in Q1 2025, up from $18.9 million in Q1 2024, indicating a significant increase in investment activity [294]. - Cash flows used in operating activities were $85.7 million in Q1 2025, compared to $3.9 million in Q1 2024, reflecting a substantial rise in operational expenditures [294]. Debt and Obligations - As of March 31, 2025, the company had outstanding principal debt obligations of $2.8 billion and interest payment obligations of $1.2 billion, with $94.6 million in principal and $189.5 million in interest due within the next twelve months [295]. - The company acquired Long Ridge Energy & Power LLC, resulting in additional borrowings totaling $1.165 billion during Q1 2025, including a $600 million Senior Secured Note due 2032 [294]. - Operating and finance lease obligations amounted to $171.8 million as of March 31, 2025, with $8.8 million due within the next twelve months [297]. - Dividend payments of $90.1 million on redeemable preferred stock are due within the next twelve months, with options for paid-in-kind dividends [298]. - A hypothetical 100-basis point increase in variable interest rates could result in an increase of approximately $4.7 million in interest expense over the next 12 months [315]. Future Outlook - The company expects to meet future short-term liquidity requirements through cash on hand and operational cash flow, indicating a stable financial position [300]. - The Jefferson Terminal reporting unit had an estimated fair value exceeding its carrying value by more than 10% as of October 1, 2024, indicating a positive outlook for future performance [306].
FTAI Infrastructure (FIP) - 2025 Q1 - Quarterly Report