Icahn Enterprises(US:IEP)2021-08-06 18:55Financial Data and Key Metrics Changes - For Q2 2021, the company reported a net loss attributable to Icahn Enterprises of $136 million or $0.53 per LP unit, compared to a net income of $299 million or $1.36 per LP unit in the prior year period [8][15] - Adjusted EBITDA attributable to Icahn Enterprises for Q2 2021 was $192 million, down from $696 million in Q2 2020 [9][15] - The indicative net asset value increased by $956 million to $4.5 billion as of June 30, 2021, compared to $3.55 billion as of December 31, 2020 [12] Business Segment Data and Key Metrics Changes - Investment segment net income attributable to Icahn Enterprises was $68 million for Q2 2021, with a positive return of 1.4%, down from 11.7% in the prior year [16] - Energy segment reported net sales of $1.8 billion for Q2 2021, compared to $675 million in the prior year, with adjusted EBITDA of $102 million, down from $109 million [18] - Automotive segment net sales and service revenues were $637 million for Q2 2021, an increase of $50 million from the prior year, with adjusted EBITDA of $25 million compared to a loss of $6 million [19] - Food Packaging segment net sales increased by 2% to $14 million in adjusted EBITDA for Q2 2021, compared to $13 million in Q2 2020 [20] - Metal segment net sales increased by $119 million, with adjusted EBITDA increasing by $15 million compared to the prior year [22] - Real Estate segment adjusted EBITDA was a loss of $2 million compared to earnings of $10 million in the prior year [23] - Pharma segment net operating revenues were $19 million with adjusted EBITDA of $5 million [25] Market Data and Key Metrics Changes - The company ended Q2 2021 with cash, cash equivalents, and investments totaling approximately $7.5 billion, with subsidiaries holding approximately $645 million in cash [26] Company Strategy and Development Direction - The company is focused on building asset value and maintaining liquidity to capitalize on opportunities within and outside existing operating segments [27] - Icahn Automotive Group is implementing a multiyear transformational plan to restructure operations and improve profitability [11] Management's Comments on Operating Environment and Future Outlook - Management noted a good rebound in portfolio companies to pre-pandemic levels, although supply chain lags and inflation pressures remain challenges [36] - The company is experiencing a typical lag between supplier price increases and the ability to pass those increases onto customers [42] Other Important Information - The board declared a $2 quarterly distribution payable in cash or additional units [12] - Carl Icahn has been consistently taking stock instead of cash for dividends, which increases his ownership in the company [51][53] Q&A Session Summary Question: Current investment backdrop and fund positioning - Management clarified that the $6.9 billion includes cash at the holding company level, while the investment in the funds remains at $4.7 billion [30][31] Question: Returns for the second quarter and short positions - Management indicated that short positions negatively impacted performance, but other expenses were minimal [32][34] Question: Business segments lagging pre-pandemic levels - Management noted that most segments are rebounding well, but supply chain issues persist [35][36] Question: Dividend funding and sustainability - Management confirmed that funding the dividend is not an issue due to ample cash reserves [47] Question: Impact of Carl Icahn's stock ownership on dividends - Management acknowledged that Carl Icahn's practice of taking stock instead of cash increases his ownership in the company [51][53] Question: Loss in real estate segment - Management explained that delays in repositioning a property due to COVID-19 affected the real estate segment's performance [71] Question: Crypto investments and reporting - Management stated that if significant investments in crypto occur, they would be identified separately in reporting [72]