Icahn Enterprises(US:IEP)2021-02-26 20:56Financial Data and Key Metrics Changes - For Q4 2020, net income attributable to Icahn Enterprises was $146 million or $0.61 per LP unit, compared to a net loss of $157 million or $0.74 per LP unit in the prior year period [6][15] - Adjusted EBITDA attributable to Icahn Enterprises for Q4 2020 was $420 million, compared to $111 million in Q4 2019 [6][15] - The investment funds had a positive return of 5.6% in Q4 2020, compared to a positive return of 0.2% for Q4 2019 [7][16] Business Segment Data and Key Metrics Changes - The energy segment reported net sales of $1.1 billion in Q4 2020, down from $1.6 billion in the prior year period, with adjusted EBITDA of $1 million compared to $142 million [18] - The automotive segment had net sales and service revenues of $596 million for Q4 2020, down $107 million from the prior year period, with adjusted EBITDA showing a loss of $3 million compared to a loss of $31 million in the prior year [21][22] - The food packaging segment saw net sales increase by $8 million or 8%, with adjusted EBITDA rising to $14 million from $8 million in the prior year [23] - The metal segment experienced a $40 million increase in net sales and a $16 million increase in adjusted EBITDA compared to the prior year [24] - The real estate segment's net operating revenues increased by $12 million, with adjusted EBITDA rising by $2 million compared to the prior year [25] - The home fashion segment's net sales decreased by $5 million, with adjusted EBITDA showing a loss of $2 million compared to a loss of $1 million in the prior year [26] - The pharma segment reported adjusted EBITDA of $1 million following the acquisition of VIVUS [27] Market Data and Key Metrics Changes - The energy segment's refining margin per throughput barrel was $1.32 in Q4 2020, down from $12.47 during the same period in 2019, impacted by narrow crack spreads and increased costs [19] Company Strategy and Development Direction - The company is focused on building asset value and maintaining ample liquidity to capitalize on opportunities within and outside existing operating segments [28][29] - Icahn Automotive Group is implementing a multi-year transformational plan to restructure operations and improve profitability [9][22] - The company is exploring growth opportunities in the pharma sector following the acquisition of VIVUS, with a focus on existing commercial drugs and pipeline candidates [11][34] Management's Comments on Operating Environment and Future Outlook - Management highlighted the impact of the COVID-19 pandemic on various segments, particularly in automotive and energy, while expressing optimism about new investment opportunities in the market [9][12][33] - The company maintains a strong liquidity position, with cash and investments totaling over $6.6 billion at the end of Q4 2020 [28] Other Important Information - The company issued $750 million of senior unsecured notes in January 2021 and repaid $750 million of existing notes, reducing annual interest expense and extending debt maturity [12] Q&A Session Summary Question: Follow-up on new investments and opportunities - Management indicated that new investments have been active at the fund level, focusing on undervalued positions with potential for activism [33] Question: Inquiry about the pharma segment and VIVUS acquisition - Management stated that while they are focused on current operations, they are open to expanding the pharma segment if value-creating opportunities arise [34] Question: Clarification on EBITDA attribution for the food packaging segment - Management explained that the ownership percentage affected the EBITDA attribution, as the equity offering occurred in Q4 [40][41]