Financial Data and Key Metrics Changes - The company recorded adjusted EBITDA of $36.9 million in Q3 2024, an increase of 8% from Q2 2024 and up 50% year-over-year from Q3 2023 [7] - The total company annual EBITDA is projected to be approximately $220 million, with potential to exceed $300 million if new business opportunities are successfully converted into contracts [8][9] Business Line Data and Key Metrics Changes - Transtar: Achieved adjusted EBITDA of $21.1 million in Q3 2024, with stable carloads and rates. Revenue was $44.8 million, down from $45.6 million in Q2 2024 [10][19] - Jefferson: Generated $11.8 million in adjusted EBITDA, with revenue of $19.7 million, down from $21.2 million in Q2 2024. New contracts expected to contribute $20 million of annual EBITDA starting in 2025 [11][21] - Repauno: Executed its first long-term contract for Phase 2 transloading system, with potential annual EBITDA contribution of $60 million to $70 million once complete [12][23] - Long Ridge: Generated $11.1 million in EBITDA, reflecting a capacity factor of 99%. Anticipated increase in annual revenue and EBITDA by $32 million due to capacity auction results [13][25] Market Data and Key Metrics Changes - The company has a strong pipeline of new business opportunities, with a focus on maintaining organic EBITDA growth of 15% annually across its segments [10][20] - The construction of projects at Jefferson is on budget and on time, with expected revenue service commencing in 2025 [11] Company Strategy and Development Direction - The company is focused on pursuing accretive investments and acquisitions, particularly in the Transtar segment, to enhance growth and value creation [10][42] - Financing plans include issuing $300 million of low-cost tax-exempt debt for Repauno and refinancing existing debt at Long Ridge to reduce fixed charges and enhance cash flow [15][16][18] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth potential in the upcoming quarters, driven by new contracts and favorable market conditions [26] - The company is actively pursuing multiple new business opportunities, indicating a robust growth outlook for 2025 and beyond [8][26] Other Important Information - The Board has authorized a quarterly dividend of $0.03 per share, to be paid on November 19, 2024 [6] - Total debt as of September 30, 2024, was $1.5 billion, with significant portions allocated to specific business units [14] Q&A Session Summary Question: Expansion on Long Ridge financing and potential contract pricing - Management indicated that refinancing would be highly accretive, with potential incremental EBITDA of approximately $50 million annually from new swaps at higher market prices [30][32] Question: Update on U.S. Steel transaction and implications for Transtar - Management noted that approval for the Nippon transaction is expected in December, with potential positive implications for Transtar if approved [36][38] Question: Status of M&A opportunities for Transtar - Management confirmed ongoing negotiations for three potential acquisitions, with significant value creation expected from successful transactions [40][42] Question: Details on new contracts at Jefferson - Management provided specifics on two contracts expected to generate $20 million of annual EBITDA, both fully funded and on track for completion [44][45] Question: Role of GE in Long Ridge operations - Management clarified that no mechanical changes are needed for the turbine at Long Ridge, only a software update to increase power generation capacity [47]
FTAI Infrastructure (FIP) - 2024 Q3 - Earnings Call Transcript