FTAI Infrastructure (FIP) - 2024 Q1 - Quarterly Results

Press Release Summary FTAI Infrastructure's Q1 2024 results show a net loss, declared dividends, and strong operational performance across key segments like Transtar and Long Ridge Financial Overview For the first quarter of 2024, FTAI Infrastructure reported a net loss attributable to stockholders of $56.6 million, or ($0.54) per share, with Adjusted EBITDA at $27.2 million, and core segments contributing $37.2 million Q1 2024 Selected Financial Results | Selected Financial Results | Q1'24 (USD in thousands, except per share) | | :--- | :--- | | Net Loss Attributable to Stockholders | $(56,582) | | Basic and Diluted Loss per Share | $(0.54) | | Adjusted EBITDA | $27,231 | | Adjusted EBITDA - Four core segments | $37,168 | First Quarter 2024 Dividends The Board of Directors declared a cash dividend of $0.03 per share of common stock for the first quarter of 2024 - A cash dividend of $0.03 per share was declared for Q1 2024, payable on May 29, 2024, to shareholders of record on May 17, 2024[4] Business Highlights The company reported strong operational performance across its key segments, with Transtar achieving record quarterly revenue, Jefferson Terminal volumes at record levels post-turnaround, and Long Ridge experiencing high demand from the AI data center sector - Transtar achieved a new quarterly revenue record of $46.3 million, with strong momentum expected to continue into Q2[8] - Jefferson Terminal Q1 revenue was $18.6 million, impacted by a customer turnaround, but post-turnaround, volumes and revenue are at record levels[8] - Long Ridge operated at a high 98% capacity factor and is seeing rapidly increasing demand from the AI data center space, with several long-term contracts nearing completion[8] Exhibit - Financial Statements This section presents the company's consolidated financial statements, including statements of operations, balance sheets, and cash flows for the reported periods Consolidated Statements of Operations For Q1 2024, total revenues increased to $82.5 million from $76.5 million year-over-year, but the net loss attributable to stockholders widened to $56.6 million from $40.6 million in Q1 2023, driven by higher total expenses and a significant negative swing in equity earnings of unconsolidated entities Q1 2024 vs Q1 2023 Statement of Operations (USD in thousands) | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Total revenues | $82,535 | $76,494 | | Total expenses | $93,884 | $91,890 | | Loss before income taxes | $(48,492) | $(34,183) | | Net loss | $(50,297) | $(35,912) | | Net loss attributable to stockholders | $(56,582) | $(40,589) | | Diluted Loss per share | $(0.54) | $(0.40) | Consolidated Balance Sheets As of March 31, 2024, total assets stood at $2.34 billion, a slight decrease from $2.38 billion at the end of 2023, while total liabilities increased to $1.68 billion, contributing to a decrease in total stockholders' equity to $402.5 million from $484.3 million Balance Sheet Comparison (USD in thousands) | Metric | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Total current assets | $164,531 | $185,503 | | Total assets | $2,344,681 | $2,379,609 | | Total current liabilities | $239,767 | $150,637 | | Total liabilities | $1,681,940 | $1,641,518 | | Stockholders' equity | $402,549 | $484,289 | | Total equity | $320,534 | $412,859 | Consolidated Statements of Cash Flows In Q1 2024, net cash used in operating activities was $3.9 million, an improvement from $12.1 million used in Q1 2023, with cash used in investing activities decreasing significantly to $18.8 million from $66.8 million year-over-year, ending the period with a cash and restricted cash balance of $64.3 million Cash Flow Summary (USD in thousands) | Cash Flow Activity | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net cash used in operating activities | $(3,883) | $(12,144) | | Net cash used in investing activities | $(18,846) | $(66,842) | | Net cash (used in) provided by financing activities | $(454) | $37,777 | | Net decrease in cash | $(23,183) | $(41,209) | | Cash, end of period | $64,296 | $108,433 | Key Performance Measures (Non-GAAP) This section provides non-GAAP financial measures, including the reconciliation of net loss to Adjusted EBITDA and a breakdown of Adjusted EBITDA by core segment Reconciliation of Net Loss to Adjusted EBITDA The company's Adjusted EBITDA, a key non-GAAP performance measure, increased to $27.2 million in Q1 2024 from $21.9 million in Q1 2023, with the reconciliation from net loss attributable to stockholders including significant add-backs for depreciation & amortization ($21.1M), interest expense ($27.6M), and dividends on preferred stock ($17.0M) Adjusted EBITDA Reconciliation (USD in thousands) | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net loss attributable to stockholders | $(56,582) | $(40,589) | | Add: Depreciation & amortization expense | $21,097 | $20,135 | | Add: Interest expense | $27,593 | $23,250 | | Add: Pro-rata share of Adj. EBITDA from unconsolidated entities | $6,257 | $8,190 | | Add: Dividends and accretion of redeemable preferred stock | $16,975 | $14,570 | | Less: Equity in (losses) earnings of unconsolidated entities | $11,902 | $(4,366) | | Adjusted EBITDA (non-GAAP) | $27,231 | $21,896 | Segment Adjusted EBITDA For Q1 2024, the four core segments generated a combined Adjusted EBITDA of $37.2 million, with the Railroad segment as the primary contributor at $21.7 million, followed by Power and Gas at $10.4 million, Jefferson Terminal at $6.8 million, and Repauno at a negative ($1.7) million Q1 2024 Adjusted EBITDA by Core Segment (USD in thousands) | Segment | Adjusted EBITDA (USD in thousands) | | :--- | :--- | | Railroad | $21,658 | | Jefferson Terminal | $6,801 | | Repauno | $(1,683) | | Power and Gas | $10,392 | | Total Four Core Segments | $37,168 |