- For the six months ended June 30,
2022, net income attributable to Icahn Enterprises was
$195 million, or $0.64 per depositary unit. For the six months
ended June 30, 2021, net income
attributable to Icahn Enterprises was $26
million, or $0.10 per
depositary unit. For the six months ended June 30, 2022, Adjusted EBITDA attributable to
Icahn Enterprises was $742 million
compared to $627 million for the six
months ended June 30, 2021
- Second quarter net loss attributable to IEP was $128 million with Adjusted EBITDA attributable to
IEP of $126 million. This represents
an improvement of $8 million of net
loss attributable to IEP and a decrease of $66 million of Adjusted EBITDA attributable to
IEP compared to Q2 2021
- Indicative Net Asset Value increased to $6.6 billion as of June
30, 2022, an increase of $1.5
billion compared to December 31,
2021. The change in indicative net asset value includes,
among other things, changes in the fair value of certain
subsidiaries which are not included in our GAAP earnings
- Board approves quarterly distribution of $2.00 per depositary unit (the 69th consecutive
quarterly distribution since 2005)
SUNNY
ISLES BEACH, Fla., Aug. 4, 2022
/PRNewswire/ -- Icahn Enterprises L.P. (Nasdaq:IEP) believes
activism is the best paradigm for investing. We are putting our
activist principles into effect at our majority-controlled
companies as well as the minority positions held in our investment
segment, and currently have representatives on fourteen public
company boards. Additionally, we believe strongly in hedging
our positions to mitigate risk, especially in markets that we are
living in today.
Icahn Enterprises L.P. is reporting revenues of $7.6 billion and net income attributable to Icahn
Enterprises of $195 million, or
$0.64 per depositary unit, for the
six months ended June 30, 2022. For
the six months ended June 30, 2021,
revenues were $6.4 billion and net
income attributable to Icahn Enterprises was $26 million, or $0.10 per depositary unit. Adjusted EBITDA
attributable to Icahn Enterprises was $742
million for the six months ended June
30, 2022, compared to $627
million for the six months ended June
30, 2021.
Second quarter 2022 revenues were $3.5
billion and net loss attributable to Icahn Enterprises was
$128 million, or a loss of
$0.41 per depositary unit. For the
three months ended June 30, 2021,
revenues were $3.0 billion and net
loss attributable to Icahn Enterprises was $136 million, or a loss of $0.53 per depositary unit. For the three months
ended June 30, 2022, Adjusted EBITDA
attributable to Icahn Enterprises was $126
million compared to $192
million for the three months ended June 30, 2021.
For the six months ended June 30,
2022, indicative net asset value increased by $1.5 billion to $6.6
billion. The change in indicative net asset value includes,
among other things, changes in the fair value of certain
subsidiaries which are not included in our GAAP earnings reported
above.
On August 3, 2022, the Board of
Directors of the general partner of Icahn Enterprises declared a
quarterly distribution in the amount of $2.00 per depositary unit, which will be paid on
or about September 28, 2022, to
depositary unitholders of record at the close of business on
August 19, 2022. Depositary
unitholders will have until September 16,
2022, to make a timely election to receive either cash or
additional depositary units. If a unitholder does not make a timely
election, it will automatically be deemed to have elected to
receive the distribution in additional depositary units. Depositary
unitholders who elect to receive (or who are deemed to have elected
to receive) additional depositary units will receive units valued
at the volume weighted average trading price of the units during
the five consecutive trading days ending September 23, 2022. Icahn Enterprises will make a
cash payment in lieu of issuing fractional depositary units to any
unitholders electing to receive (or who are deemed to have elected
to receive) depositary units.
Icahn Enterprises L.P., a master limited partnership, is a
diversified holding company owning subsidiaries currently engaged
in the following continuing operating businesses: Investment,
Energy, Automotive, Food Packaging, Real Estate, Home Fashion and
Pharma.
Caution Concerning Forward-Looking Statements
Results for any interim period are not necessarily indicative of
results for any full fiscal period. This release may contain
certain "forward-looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995, many of which are
beyond our ability to control or predict. Forward-looking
statements may be identified by words such as "expects,"
"anticipates," "intends," "plans," "believes," "seeks,"
"estimates," "will" or words of similar meaning and include, but
are not limited to, statements about the expected future business
and financial performance of Icahn Enterprises and its
subsidiaries. Actual events, results and outcomes may differ
materially from our expectations due to a variety of known and
unknown risks, uncertainties and other factors, including risks
related to economic downturns, substantial competition and rising
operating costs; risks related to the severity, magnitude and
duration of the COVID-19 pandemic and its impact on the global
economy, financial markets and industries in which our subsidiaries
operate; the impacts from the Russia/Ukraine conflict, including economic
volatility and the impacts of export controls and other economic
sanctions,; risks related to our investment activities,
including the nature of the investments made by the private funds
in which we invest, declines in the fair value of our investments
as a result of the COVID-19 pandemic, losses in the private funds
and loss of key employees; risks related to our ability to continue
to conduct our activities in a manner so as to not be deemed an
investment company under the Investment Company Act of 1940, as
amended; risks related to our energy business, including the
volatility and availability of crude oil, other feed stocks and
refined products, declines in global demand for crude oil, refined
products and liquid transportation fuels as a result of the
COVID-19 pandemic, unfavorable refining margin (crack spread),
interrupted access to pipelines, significant fluctuations in
nitrogen fertilizer demand in the agricultural industry and
seasonality of results; risks related to our automotive activities
and exposure to adverse conditions in the automotive industry,
including as a result of the COVID-19 pandemic; risks related to
our food packaging activities, including competition from better
capitalized competitors, inability of our suppliers to timely
deliver raw materials, and the failure to effectively respond to
industry changes in casings technology; supply chain issues;
inflation, including increased costs of raw materials and shipping,
including as a result of the Russia/Ukraine conflict; labor shortages and
workforce availability; risks related to our real estate
activities, including the extent of any tenant bankruptcies and
insolvencies; risks related to our home fashion operations,
including changes in the availability and price of raw materials,
and changes in transportation costs and delivery times; and other
risks and uncertainties detailed from time to time in our filings
with the Securities and Exchange Commission. Additionally, there
may be other factors not presently known to us or which we
currently consider to be immaterial that may cause our actual
results to differ materially from the forward-looking statements.
Past performance in our Investment segment is not indicative of
future performance. We undertake no obligation to publicly update
or review any forward-looking information, whether as a result of
new information, future developments or otherwise.
CONDENSED
CONSOLIDATED STATEMENTS OF
OPERATIONS (UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
|
(in millions, except
per unit amounts)
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
3,796
|
|
$
|
2,612
|
|
$
|
6,764
|
|
$
|
4,830
|
Other revenues from
operations
|
|
|
197
|
|
|
164
|
|
|
365
|
|
|
316
|
Net (loss) gain from
investment activities
|
|
|
(442)
|
|
|
206
|
|
|
497
|
|
|
1,212
|
Interest and dividend
income
|
|
|
50
|
|
|
34
|
|
|
92
|
|
|
60
|
Other loss,
net
|
|
|
(98)
|
|
|
(28)
|
|
|
(122)
|
|
|
(46)
|
|
|
|
3,503
|
|
|
2,988
|
|
|
7,596
|
|
|
6,372
|
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods
sold
|
|
|
3,174
|
|
|
2,398
|
|
|
5,712
|
|
|
4,537
|
Other expenses from
operations
|
|
|
148
|
|
|
126
|
|
|
285
|
|
|
244
|
Selling, general and
administrative
|
|
|
315
|
|
|
304
|
|
|
616
|
|
|
620
|
Restructuring,
net
|
|
|
—
|
|
|
5
|
|
|
—
|
|
|
5
|
Interest
expense
|
|
|
151
|
|
|
158
|
|
|
285
|
|
|
353
|
|
|
|
3,788
|
|
|
2,991
|
|
|
6,898
|
|
|
5,759
|
(Loss) income before
income tax expense
|
|
|
(285)
|
|
|
(3)
|
|
|
698
|
|
|
613
|
Income tax
expense
|
|
|
(2)
|
|
|
(59)
|
|
|
(100)
|
|
|
(76)
|
Net (loss)
income
|
|
|
(287)
|
|
|
(62)
|
|
|
598
|
|
|
537
|
Less: net (loss) income
attributable to non-controlling interests
|
|
|
(159)
|
|
|
74
|
|
|
403
|
|
|
511
|
Net (loss) income
attributable to Icahn Enterprises
|
|
$
|
(128)
|
|
$
|
(136)
|
|
$
|
195
|
|
$
|
26
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income
attributable to Icahn Enterprises allocated to:
|
|
|
|
|
|
|
|
|
|
|
|
|
Limited
partners
|
|
$
|
(125)
|
|
$
|
(134)
|
|
$
|
191
|
|
$
|
25
|
General
partner
|
|
|
(3)
|
|
|
(2)
|
|
|
4
|
|
|
1
|
|
|
$
|
(128)
|
|
$
|
(136)
|
|
$
|
195
|
|
$
|
26
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic (loss) income per
LP unit
|
|
$
|
(0.41)
|
|
$
|
(0.53)
|
|
$
|
0.64
|
|
$
|
0.10
|
Basic weighted average
LP units outstanding
|
|
|
306
|
|
|
251
|
|
|
300
|
|
|
247
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted (loss) income
per LP unit
|
|
$
|
(0.41)
|
|
$
|
(0.53)
|
|
$
|
0.64
|
|
$
|
0.10
|
Diluted weighted
average LP units outstanding
|
|
|
306
|
|
|
251
|
|
|
300
|
|
|
247
|
Distributions declared
per LP unit
|
|
$
|
2.00
|
|
$
|
2.00
|
|
$
|
4.00
|
|
$
|
4.00
|
CONDENSED
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
|
|
|
|
|
|
|
|
|
|
June 30,
|
|
December 31,
|
|
|
2022
|
|
2021
|
|
|
(in
millions)
|
ASSETS
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
2,453
|
|
$
|
2,321
|
Cash held at
consolidated affiliated partnerships and restricted cash
|
|
|
4,216
|
|
|
2,115
|
Investments
|
|
|
5,812
|
|
|
9,151
|
Due from
brokers
|
|
|
5,080
|
|
|
5,530
|
Accounts receivable,
net
|
|
|
728
|
|
|
546
|
Inventories,
net
|
|
|
1,787
|
|
|
1,478
|
Property, plant and
equipment, net
|
|
|
4,043
|
|
|
4,085
|
Derivative assets,
net
|
|
|
900
|
|
|
612
|
Goodwill
|
|
|
288
|
|
|
290
|
Intangible assets,
net
|
|
|
563
|
|
|
595
|
Other assets
|
|
|
1,025
|
|
|
1,023
|
Total
Assets
|
|
$
|
26,895
|
|
$
|
27,746
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
1,151
|
|
$
|
805
|
Accrued expenses and
other liabilities
|
|
|
2,060
|
|
|
1,778
|
Deferred tax
liabilities
|
|
|
374
|
|
|
390
|
Derivative liabilities,
net
|
|
|
822
|
|
|
787
|
Securities sold, not
yet purchased, at fair value
|
|
|
4,062
|
|
|
5,340
|
Due to
brokers
|
|
|
1,134
|
|
|
1,611
|
Debt
|
|
|
7,134
|
|
|
7,692
|
Total
liabilities
|
|
|
16,737
|
|
|
18,403
|
|
|
|
|
|
|
|
Equity:
|
|
|
|
|
|
|
Limited
partners
|
|
|
4,773
|
|
|
4,298
|
General
partner
|
|
|
(746)
|
|
|
(754)
|
Equity attributable to
Icahn Enterprises
|
|
|
4,027
|
|
|
3,544
|
Equity attributable to
non-controlling interests
|
|
|
6,131
|
|
|
5,799
|
Total equity
|
|
|
10,158
|
|
|
9,343
|
Total Liabilities
and Equity
|
|
$
|
26,895
|
|
$
|
27,746
|
Use of Non-GAAP Financial Measures
The Company uses certain non-GAAP financial measures in
evaluating its performance. These include non-GAAP EBITDA and
Adjusted EBITDA. EBITDA represents earnings from continuing
operations before interest expense, income tax (benefit) expense
and depreciation and amortization. We define Adjusted EBITDA as
EBITDA excluding certain effects of impairment, restructuring
costs, certain pension plan expenses, gains/losses on disposition
of assets, gains/losses on extinguishment of debt and certain other
non-operational charges. We present EBITDA and Adjusted EBITDA on a
consolidated basis and on a basis attributable to Icahn Enterprises
net of the effects of non-controlling interests. We conduct
substantially all of our operations through subsidiaries. The
operating results of our subsidiaries may not be sufficient to make
distributions to us. In addition, our subsidiaries are not
obligated to make funds available to us for payment of our
indebtedness, payment of distributions on our depositary units or
otherwise, and distributions and intercompany transfers from our
subsidiaries to us may be restricted by applicable law or covenants
contained in debt agreements and other agreements to which these
subsidiaries currently may be subject or into which they may enter
into in the future. The terms of any borrowings of our subsidiaries
or other entities in which we own equity may restrict dividends,
distributions or loans to us.
We believe that providing EBITDA and Adjusted EBITDA to
investors has economic substance as these measures provide
important supplemental information of our performance to investors
and permits investors and management to evaluate the core operating
performance of our business without regard to interest, taxes and
depreciation and amortization and certain effects of impairment,
restructuring costs, certain pension plan expenses, gains/losses on
disposition of assets, gains/losses on extinguishment of debt and
certain other non-operational charges. Additionally, we believe
this information is frequently used by securities analysts,
investors and other interested parties in the evaluation of
companies that have issued debt. Management uses, and believes that
investors benefit from referring to, these non-GAAP financial
measures in assessing our operating results, as well as in
planning, forecasting and analyzing future periods. Adjusting
earnings for these charges allows investors to evaluate our
performance from period to period, as well as our peers, without
the effects of certain items that may vary depending on accounting
methods and the book value of assets. Additionally, EBITDA and
Adjusted EBITDA present meaningful measures of performance
exclusive of our capital structure and the method by which assets
were acquired and financed.
EBITDA and Adjusted EBITDA have limitations as analytical tools,
and you should not consider them in isolation, or as substitutes
for analysis of our results as reported under generally accepted
accounting principles in the United
States, or U.S. GAAP. For example, EBITDA and Adjusted
EBITDA:
- do not reflect our cash expenditures, or future requirements
for capital expenditures, or contractual commitments;
- do not reflect changes in, or cash requirements for, our
working capital needs; and
- do not reflect the significant interest expense, or the cash
requirements necessary to service interest or principal payments on
our debt.
Although depreciation and amortization are non-cash charges, the
assets being depreciated or amortized often will have to be
replaced in the future, and EBITDA and Adjusted EBITDA do not
reflect any cash requirements for such replacements. Other
companies in the industries in which we operate may calculate
EBITDA and Adjusted EBITDA differently than we do, limiting
their usefulness as comparative measures. In addition, EBITDA and
Adjusted EBITDA do not reflect the impact of earnings or
charges resulting from matters we consider not to be indicative of
our ongoing operations.
EBITDA and Adjusted EBITDA are not measurements of our financial
performance under U.S. GAAP and should not be considered as
alternatives to net income or any other performance measures
derived in accordance with U.S. GAAP or as alternatives to cash
flow from operating activities as a measure of our liquidity. Given
these limitations, we rely primarily on our U.S. GAAP results and
use EBITDA and Adjusted EBITDA only as a supplemental measure of
our financial performance.
Use of Indicative Net Asset Value Data
The Company uses indicative net asset value as an additional
method for considering the value of the Company's assets, and we
believe that this information can be helpful to investors. Please
note, however, that the indicative net asset value does not
represent the market price at which the depositary units trade.
Accordingly, data regarding indicative net asset value is of
limited use and should not be considered in isolation.
The Company's depositary units are not redeemable, which means
that investors have no right or ability to obtain from the Company
the indicative net asset value of units that they own. Units may be
bought and sold on The Nasdaq Global Select Market at prevailing
market prices. Those prices may be higher or lower than the
indicative net asset value of the depositary units as calculated by
management.
See below for more information on how we calculate the Company's
indicative net asset value.
|
June 30,
|
|
December
31,
|
|
2022
|
|
2021
|
|
(in
millions)(unaudited)
|
Market-valued
Subsidiaries and Investments:
|
|
|
|
Holding
Company interest in Investment Funds(1)
|
$ 4,469
|
|
$ 4,271
|
CVR
Energy(2)
|
2,385
|
|
1,197
|
Delek(2)
|
-
|
|
105
|
Total market-valued
subsidiaries and investments
|
$
6,854
|
|
$
5,573
|
|
|
|
|
Other
Subsidiaries:
|
|
|
|
Viskase(3)
|
$ 210
|
|
$ 230
|
Real
Estate Holdings(1)
|
459
|
|
472
|
WestPoint
Home(1)
|
137
|
|
132
|
Vivus(1)
|
251
|
|
259
|
|
|
|
|
Automotive
Services(4)
|
851
|
|
952
|
Automotive
Parts(1)
|
479
|
|
422
|
Automotive
Owned Real Estate Assets(5)
|
1,187
|
|
1,187
|
Icahn
Automotive Group
|
2,517
|
|
2,561
|
|
|
|
|
Total other
subsidiaries
|
$
3,574
|
|
$
3,654
|
Add: Other
Holding Company net assets(6)
|
15
|
|
(3)
|
Indicative Gross
Asset Value
|
$
10,443
|
|
$
9,224
|
Add:
Holding Company cash and cash equivalents(7)
|
1,446
|
|
1,707
|
Less:
Holding Company debt(7)
|
(5,310)
|
|
(5,810)
|
Indicative Net Asset
Value
|
$
6,579
|
|
$
5,121
|
|
Indicative net asset
value does not purport to reflect a valuation of IEP. The
calculated Indicative net asset value does not include any value
for our Investment Segment other than the fair market value of our
investment in the Investment Funds and other net assets
attributable to IEP. A valuation is a subjective exercise and
Indicative net asset value does not necessarily consider all
elements or consider in the adequate proportion the elements that
could affect the valuation of IEP. Investors may reasonably differ
on what such elements are and their impact on IEP. No
representation or assurance, express or implied, is made as to the
accuracy and correctness of Indicative net asset value as of these
dates or with respect to any future indicative or prospective
results which may vary.
|
|
|
(1)
|
Represents GAAP equity
attributable to us as of each respective date.
|
(2)
|
Based on closing share
price on each date (or if such date was not a trading day, the
immediately preceding trading day) and the number of shares owned
by the Holding Company as of each respective date.
|
(3)
|
Amounts based on market
comparables due to lack of material trading volume, valued at 9.0x
Adjusted EBITDA for the twelve months ended June 30, 2022 and
December 31, 2021.
|
(4)
|
Amounts based on market
comparables due to lack of material trading volume, valued at 14.0x
Adjusted EBITDA for the twelve months ended June 30, 2022 and
December 31, 2021.
|
(5)
|
Management performed a
valuation on the owned real-estate with the assistance of
third-party consultants to estimate fair-market-value. This
analysis utilized property-level market rents, location level
profitability, and utilized prevailing cap rates ranging from 5.5%
to 6.5%. The valuation assumed that triple net leases are in place
for all the locations at rents estimated by management based on
market conditions. There is no assurance we would be able to sell
the assets on the timeline or at the prices and lease terms we
estimate. Different judgments or assumptions would result in
different estimates of the value of the real estate assets.
Moreover, although we evaluate and provide our Indicative Net Asset
Value on a quarterly basis, the estimated values may fluctuate in
the interim, so that any actual transaction could result in a
higher or lower valuation.
|
(6)
|
Holding Company's
balance as of each respective date, excluding non-cash deferred tax
assets or liabilities.
|
(7)
|
Holding Company's
balance as of each respective date.
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
(in
millions)(unaudited)
|
Adjusted
EBITDA
|
|
|
|
|
|
|
|
Net (loss)
income
|
($287)
|
|
($62)
|
|
$ 598
|
|
$ 537
|
Interest
expense, net
|
149
|
|
157
|
|
281
|
|
351
|
Income tax
expense
|
2
|
|
59
|
|
100
|
|
76
|
Depreciation and amortization
|
127
|
|
132
|
|
249
|
|
259
|
EBITDA before
non-controlling interests
|
(9)
|
|
286
|
|
1,228
|
|
1,223
|
(Gain)
loss on disposition of assets, net
|
-
|
|
1
|
|
(2)
|
|
1
|
Transformation losses
|
13
|
|
48
|
|
29
|
|
72
|
Net loss
on extinguishment of debt
|
-
|
|
7
|
|
1
|
|
5
|
Other
|
84
|
|
3
|
|
84
|
|
(4)
|
Adjusted EBITDA
before non-controlling interests
|
$ 88
|
|
$ 345
|
|
$ 1,340
|
|
$ 1,297
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
attributable to IEP
|
|
|
|
|
|
|
|
Net (loss)
income
|
($128)
|
|
($136)
|
|
$ 195
|
|
$ 26
|
Interest
expense, net
|
110
|
|
115
|
|
213
|
|
251
|
Income tax
(benefit) expense
|
(15)
|
|
63
|
|
75
|
|
94
|
Depreciation and amortization
|
86
|
|
93
|
|
171
|
|
185
|
EBITDA attributable
to IEP
|
53
|
|
135
|
|
654
|
|
556
|
(Gain)
loss on disposition of assets, net
|
-
|
|
1
|
|
(2)
|
|
1
|
Transformation losses
|
13
|
|
48
|
|
29
|
|
72
|
Net loss
on extinguishment of debt
|
-
|
|
5
|
|
1
|
|
3
|
Other
|
60
|
|
3
|
|
60
|
|
(5)
|
Adjusted EBITDA
attributable to IEP
|
$ 126
|
|
$ 192
|
|
$ 742
|
|
$ 627
|
Investor Contact:
Ted
Papapostolou, Chief Financial Officer
(305) 422-4100
View original
content:https://www.prnewswire.com/news-releases/icahn-enterprises-lp-reports-second-quarter-2022-financial-results-301600489.html
SOURCE Icahn Enterprises L.P.