Fortress Transportation and Infrastructure Investors LLC
(NYSE:FTAI) (the “Company”) today reported financial results for
the three months ended June 30, 2019. The Company’s consolidated
comparative financial statements and key performance measures are
attached as an exhibit to this press release.
Financial Overview
|
(in thousands,
except per share data) |
|
|
|
|
Selected Financial
Results |
|
Q2’19 |
|
|
Net Cash Provided by Operating Activities |
$ |
37,842 |
|
|
Net Income Attributable to Shareholders |
$ |
20,332 |
|
|
Basic and Diluted Earnings per Share |
$ |
0.24 |
|
|
|
|
|
Funds Available for Distribution (“FAD”) (1) |
$ |
86,894 |
|
|
Adjusted EBITDA(1) |
$ |
94,130 |
|
________________________________(1) For definitions and
reconciliations of Non-GAAP measures, please refer to the exhibit
to this press release.
For the second quarter of 2019, our total FAD
was $86.9 million. This amount includes $126.8 million from
aviation leasing
activities, offset by $(10.0) million and
$(29.9) million from infrastructure and corporate and other
activities, respectively.
Second Quarter 2019
Dividend
On August 1, 2019, the Company’s Board of
Directors declared a cash dividend on its common shares of $0.33
per share for the quarter ended June 30, 2019, payable on August
27, 2019 to the holders of record on August 16, 2019.
“We just completed our most profitable quarter
ever both in terms of net income and adjusted EBITDA. Aviation
continues to exceed our expectations and we are executing long-term
contracts at all four of our infrastructure companies at a pace we
have never experienced before,” said Joe Adams, the Company’s Chief
Executive Officer.
Additional Information
For additional information that management
believes to be useful for investors, please refer to the
presentation posted on the Investor Relations section of the
Company’s website, www.ftandi.com, and the Company’s Quarterly
Report on Form 10-Q, when available on the Company’s website.
Nothing on the Company’s website is included or incorporated by
reference herein.
Conference Call
The Company will host a conference call on
Friday, August 2, 2019 at 8:00 A.M. Eastern Time. The conference
call may be accessed by dialing 1-877-447-5636 (from within the
U.S.) or 1-615-247-0080 (from outside of the U.S.) ten minutes
prior to the scheduled start of the call; please reference “FTAI
Second Quarter Earnings Call.” A simultaneous webcast of the
conference call will be available to the public on a listen-only
basis at www.ftandi.com.
Following the call, a replay of the conference
call will be available after 12:00 P.M. on Friday, August 2, 2019
through midnight Friday, August 9, 2019 at 1-855-859-2056 (from
within the U.S.) or 1-404-537-3406 (from outside of the U.S.),
Passcode: 7549869.
About Fortress Transportation and
Infrastructure Investors LLC
Fortress Transportation and Infrastructure
Investors LLC owns and acquires high quality infrastructure and
equipment that is essential for the transportation of goods and
people globally. FTAI targets assets that, on a combined basis,
generate strong and stable cash flows with the potential for
earnings growth and asset appreciation. FTAI is externally managed
by an affiliate of Fortress Investment Group LLC, a leading,
diversified global investment firm.
Cautionary Note Regarding
Forward-Looking Statements
Certain statements in this press release may
constitute forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. These statements
are based on management's current expectations and beliefs and are
subject to a number of trends and uncertainties that could cause
actual results to differ materially from those described in the
forward-looking statements, many of which are beyond the Company’s
control. The Company can give no assurance that its expectations
will be attained and such differences may be material. Accordingly,
you should not place undue reliance on any forward-looking
statements contained in this press release. For a discussion of
some of the risks and important factors that could affect
such forward-looking statements, see the sections entitled “Risk
Factors” and “Management’s Discussion and Analysis of Financial
Condition and Results of Operations” in the Company’s Annual Report
on Form 10-K and Quarterly Reports on Form 10-Q, which are
available on the Company’s website (www.ftandi.com). In addition,
new risks and uncertainties emerge from time to time, and it is not
possible for the Company to predict or assess the impact of every
factor that may cause its actual results to differ from those
contained in any forward-looking statements. Such forward-looking
statements speak only as of the date of this press release. The
Company expressly disclaims any obligation to release publicly any
updates or revisions to any forward-looking statements contained
herein to reflect any change in the Company's expectations with
regard thereto or change in events, conditions or circumstances on
which any statement is based. This release shall not constitute an
offer to sell or the solicitation of an offer to buy any
securities.
For further information, please
contact:
Alan AndreiniInvestor RelationsFortress
Transportation and Infrastructure Investors LLC(212)
798-6128aandreini@fortress.com
Withholding Information for Withholding
Agents
This announcement is intended to be a qualified
notice as provided in the Internal Revenue Code (the “Code”) and
the Regulations thereunder. For U.S. federal income tax purposes,
the dividend declared in August 2019 will be treated as a
partnership distribution. For tax withholding purposes, the
per share distribution components are as follows:
|
Distribution Components |
|
|
|
|
Non-U.S. Long Term Capital
Gain |
$ |
— |
|
|
U.S. Portfolio Interest
Income(1) |
$ |
0.0975 |
|
|
U.S. Dividend Income(2) |
$ |
— |
|
|
Income Not from U.S.
Sources(3) |
$ |
0.2325 |
|
|
Distribution Per Share |
$ |
0.3300 |
|
|
|
|
|
(1) |
Eligible for the U.S. portfolio interest exemption for any holder
not considered a 10-percent shareholder under §871(h)(3)(B) of the
Code. |
|
|
|
|
(2) |
This income is subject to
withholding under §1441 of the Code. |
|
|
|
|
(3) |
This income is not subject to
withholding under §1441 or §1446 of the Code. |
For U.S. shareholders: In
computing your U.S. federal taxable income, you should not rely on
this qualified notice, but should generally take into account your
allocable share of the Company’s taxable income as reported to you
on your Schedule K-1.
Exhibit - Financial
Statements
FORTRESS TRANSPORTATION AND
INFRASTRUCTURE INVESTORS LLC
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(Dollar amounts in thousands, unless otherwise
noted)
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
Revenues |
|
|
|
|
|
|
|
Equipment leasing revenues |
$ |
79,200 |
|
|
$ |
59,330 |
|
|
$ |
151,652 |
|
|
$ |
115,114 |
|
Infrastructure revenues |
79,805 |
|
|
12,649 |
|
|
131,980 |
|
|
25,709 |
|
Total revenues |
159,005 |
|
|
71,979 |
|
|
283,632 |
|
|
140,823 |
|
|
|
|
|
|
|
|
|
Expenses |
|
|
|
|
|
|
|
Operating expenses |
92,763 |
|
|
27,593 |
|
|
154,681 |
|
|
55,172 |
|
General and
administrative |
4,297 |
|
|
4,573 |
|
|
9,029 |
|
|
8,159 |
|
Acquisition and transaction
expenses |
2,308 |
|
|
1,508 |
|
|
3,782 |
|
|
3,274 |
|
Management fees and incentive
allocation to affiliate |
5,710 |
|
|
4,495 |
|
|
9,548 |
|
|
8,234 |
|
Depreciation and
amortization |
42,600 |
|
|
32,844 |
|
|
82,133 |
|
|
62,431 |
|
Interest expense |
25,472 |
|
|
12,857 |
|
|
46,775 |
|
|
24,728 |
|
Total expenses |
173,150 |
|
|
83,870 |
|
|
305,948 |
|
|
161,998 |
|
|
|
|
|
|
|
|
|
Other income
(expense) |
|
|
|
|
|
|
|
Equity in losses of
unconsolidated entities |
(169 |
) |
|
(251 |
) |
|
(553 |
) |
|
(156 |
) |
Gain on sale of equipment,
net |
22,630 |
|
|
4,996 |
|
|
24,355 |
|
|
4,991 |
|
Interest income |
240 |
|
|
74 |
|
|
331 |
|
|
250 |
|
Other income |
4,938 |
|
|
1,157 |
|
|
2,334 |
|
|
1,337 |
|
Total other income |
27,639 |
|
|
5,976 |
|
|
26,467 |
|
|
6,422 |
|
|
|
|
|
|
|
|
|
Income (loss) before
income taxes |
13,494 |
|
|
(5,915 |
) |
|
4,151 |
|
|
(14,753 |
) |
(Benefit from) provision for
income taxes |
(2,299 |
) |
|
534 |
|
|
(1,846 |
) |
|
1,029 |
|
Net income
(loss) |
15,793 |
|
|
(6,449 |
) |
|
5,997 |
|
|
(15,782 |
) |
Less: Net loss attributable to
non-controlling interests in consolidated subsidiaries |
(4,539 |
) |
|
(7,288 |
) |
|
(7,955 |
) |
|
(16,049 |
) |
Net income
attributable to shareholders |
$ |
20,332 |
|
|
$ |
839 |
|
|
$ |
13,952 |
|
|
$ |
267 |
|
|
|
|
|
|
|
|
|
Earnings per
share |
|
|
|
|
|
|
|
Basic |
$ |
0.24 |
|
|
$ |
0.01 |
|
|
$ |
0.16 |
|
|
$ |
— |
|
Diluted |
$ |
0.24 |
|
|
$ |
0.01 |
|
|
$ |
0.16 |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
Weighted Average
Shares Outstanding: |
|
|
|
|
|
|
|
Basic |
85,987,769 |
|
|
83,160,037 |
|
|
85,987,115 |
|
|
82,351,736 |
|
Diluted |
85,989,029 |
|
|
83,160,047 |
|
|
85,987,115 |
|
|
82,351,858 |
|
|
|
|
|
|
|
|
|
|
|
|
|
FORTRESS TRANSPORTATION AND
INFRASTRUCTURE INVESTORS LLC
CONSOLIDATED BALANCE SHEETS
(Dollar amounts in thousands, unless otherwise
noted)
|
(Unaudited) |
|
|
|
June 30, 2019 |
|
December 31, 2018 |
Assets |
|
|
|
Cash and cash equivalents |
$ |
115,559 |
|
|
$ |
99,601 |
|
Restricted cash |
58,817 |
|
|
21,236 |
|
Accounts receivable, net |
61,878 |
|
|
53,789 |
|
Leasing equipment, net |
1,509,848 |
|
|
1,432,210 |
|
Operating lease right-of-use
assets, net |
42,993 |
|
|
— |
|
Finance leases, net |
20,092 |
|
|
18,623 |
|
Property, plant, and
equipment, net |
855,013 |
|
|
708,853 |
|
Investments |
38,727 |
|
|
40,560 |
|
Intangible assets, net |
32,409 |
|
|
38,513 |
|
Goodwill |
116,584 |
|
|
116,584 |
|
Other assets |
236,589 |
|
|
108,809 |
|
Total assets |
$ |
3,088,509 |
|
|
$ |
2,638,778 |
|
|
|
|
|
Liabilities |
|
|
|
Accounts payable and accrued
liabilities |
$ |
117,280 |
|
|
$ |
112,188 |
|
Debt, net |
1,631,136 |
|
|
1,237,347 |
|
Maintenance deposits |
180,824 |
|
|
158,163 |
|
Security deposits |
41,103 |
|
|
38,539 |
|
Operating lease
liabilities |
43,459 |
|
|
— |
|
Other liabilities |
36,474 |
|
|
38,759 |
|
Total liabilities |
$ |
2,050,276 |
|
|
$ |
1,584,996 |
|
|
|
|
|
Commitments and
contingencies |
|
|
|
|
|
|
|
Equity |
|
|
|
Common shares ($0.01 par value
per share; 2,000,000,000 shares authorized; 84,846,083 and
84,050,889 shares issued and outstanding as of June 30, 2019 and
December 31, 2018, respectively) |
$ |
848 |
|
|
$ |
840 |
|
Additional paid in
capital |
972,836 |
|
|
1,029,376 |
|
Accumulated deficit |
(18,865 |
) |
|
(32,817 |
) |
Accumulated other
comprehensive income |
34,058 |
|
|
— |
|
Shareholders' equity |
988,877 |
|
|
997,399 |
|
Non-controlling interest in
equity of consolidated subsidiaries |
49,356 |
|
|
56,383 |
|
Total equity |
1,038,233 |
|
|
1,053,782 |
|
Total liabilities and
equity |
$ |
3,088,509 |
|
|
$ |
2,638,778 |
|
|
|
|
|
|
|
|
|
FORTRESS TRANSPORTATION AND
INFRASTRUCTURE INVESTORS LLC
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(Dollar amounts in thousands, unless otherwise
noted)
|
Six Months Ended June 30, |
|
2019 |
|
2018 |
Cash flows from
operating activities: |
|
|
|
Net income (loss) |
$ |
5,997 |
|
|
$ |
(15,782 |
) |
Adjustments to reconcile net
income (loss) to net cash provided by operating activities: |
|
|
|
Equity in losses of
unconsolidated entities |
553 |
|
|
156 |
|
Gain on sale of equipment,
net |
(24,355 |
) |
|
(4,991 |
) |
Security deposits and
maintenance claims included in earnings |
(2,869 |
) |
|
(4,325 |
) |
Equity-based compensation |
928 |
|
|
437 |
|
Depreciation and
amortization |
82,133 |
|
|
62,431 |
|
Change in current and deferred
income taxes |
(2,655 |
) |
|
564 |
|
Change in fair value of
non-hedge derivative |
(250 |
) |
|
(182 |
) |
Amortization of lease
intangibles and incentives |
17,288 |
|
|
12,943 |
|
Amortization of deferred
financing costs |
4,043 |
|
|
2,483 |
|
Bad debt expense |
3,062 |
|
|
1,521 |
|
Other |
547 |
|
|
21 |
|
Change in: |
|
|
|
Accounts receivable |
(14,675 |
) |
|
(10,064 |
) |
Other assets |
(13,105 |
) |
|
(10,318 |
) |
Accounts payable and accrued liabilities |
8,661 |
|
|
22,091 |
|
Management fees payable to affiliate |
871 |
|
|
(668 |
) |
Other liabilities |
(8,062 |
) |
|
2,835 |
|
Net cash provided by
operating activities |
58,112 |
|
|
59,152 |
|
|
|
|
|
Cash flows from
investing activities: |
|
|
|
Investment in notes
receivable |
— |
|
|
(912 |
) |
Investment in unconsolidated
entities and available for sale securities |
— |
|
|
(1,115 |
) |
Principal collections on
finance leases |
2,996 |
|
|
539 |
|
Acquisition of leasing
equipment |
(209,171 |
) |
|
(205,819 |
) |
Acquisition of property, plant
and equipment |
(159,252 |
) |
|
(124,039 |
) |
Acquisition of lease
intangibles |
623 |
|
|
(2,225 |
) |
Purchase deposits for
acquisitions |
(33,637 |
) |
|
(17,890 |
) |
Proceeds from sale of leasing
equipment |
71,497 |
|
|
26,499 |
|
Proceeds from sale of
property, plant and equipment |
7 |
|
|
31 |
|
Return of capital
distributions from unconsolidated entities |
1,280 |
|
|
— |
|
Return of purchase deposit for
aircraft and aircraft engines |
— |
|
|
240 |
|
Return of deposit on sale of
engine |
— |
|
|
(400 |
) |
Net cash used in
investing activities |
$ |
(325,657 |
) |
|
$ |
(325,091 |
) |
|
|
|
|
Cash flows from
financing activities: |
|
|
|
Proceeds from debt |
$ |
529,477 |
|
|
$ |
204,350 |
|
Repayment of debt |
(128,835 |
) |
|
(45,874 |
) |
Payment of deferred financing
costs |
(32,443 |
) |
|
(1,819 |
) |
Receipt of security
deposits |
3,475 |
|
|
3,748 |
|
Return of security
deposits |
(233 |
) |
|
(805 |
) |
Receipt of maintenance
deposits |
28,903 |
|
|
22,355 |
|
Release of maintenance
deposits |
(22,493 |
) |
|
(4,276 |
) |
Proceeds from issuance of
common shares, net of underwriter's discount |
— |
|
|
128,450 |
|
Common shares issuance
costs |
— |
|
|
(789 |
) |
Purchase of non-controlling
interest |
— |
|
|
(3,700 |
) |
Cash dividends |
(56,767 |
) |
|
(54,662 |
) |
Net cash provided by
financing activities |
$ |
321,084 |
|
|
$ |
246,978 |
|
|
|
|
|
Net increase
(decrease) in cash and cash equivalents and restricted
cash |
53,539 |
|
|
(18,961 |
) |
Cash and cash equivalents and
restricted cash, beginning of period |
120,837 |
|
|
92,806 |
|
Cash and cash
equivalents and restricted cash, end of period |
$ |
174,376 |
|
|
$ |
73,845 |
|
|
|
|
|
|
|
|
|
Key Performance Measures
The Chief Operating Decision Maker (“CODM”)
utilizes Adjusted EBITDA as our key performance measure.
Adjusted EBITDA provides the CODM with the
information necessary to assess operational performance, as well as
make resource and allocation decisions. Adjusted EBITDA is defined
as net income attributable to shareholders, adjusted (a) to exclude
the impact of provision for income taxes, equity-based compensation
expense, acquisition and transaction expenses, losses on the
modification or extinguishment of debt and capital lease
obligations, changes in fair value of non-hedge derivative
instruments, asset impairment charges, incentive allocations,
depreciation and amortization expense, and interest expense, (b) to
include the impact of our pro-rata share of Adjusted EBITDA from
unconsolidated entities, and (c) to exclude the impact of equity in
earnings (losses) of unconsolidated entities and the
non-controlling share of Adjusted EBITDA.
The following table sets forth a reconciliation
of net income attributable to shareholders to Adjusted EBITDA for
the three and six months ended June 30, 2019 and 2018:
|
Three Months Ended June 30, |
|
Change |
|
Six Months Ended June 30, |
|
Change |
(in thousands) |
2019 |
|
2018 |
|
|
2019 |
|
2018 |
|
Net income attributable to shareholders |
$ |
20,332 |
|
|
$ |
839 |
|
|
$ |
19,493 |
|
|
$ |
13,952 |
|
|
$ |
267 |
|
|
$ |
13,685 |
|
Add: (Benefit from) provision
for income taxes |
(2,299 |
) |
|
534 |
|
|
(2,833 |
) |
|
(1,846 |
) |
|
1,029 |
|
|
(2,875 |
) |
Add: Equity-based compensation
expense |
700 |
|
|
229 |
|
|
471 |
|
|
928 |
|
|
437 |
|
|
491 |
|
Add: Acquisition and
transaction expenses |
2,308 |
|
|
1,508 |
|
|
800 |
|
|
3,782 |
|
|
3,274 |
|
|
508 |
|
Add: Losses on the
modification or extinguishment of debt and capital lease
obligations |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Add: Changes in fair value of
non-hedge derivative instruments |
(3,470 |
) |
|
(441 |
) |
|
(3,029 |
) |
|
(250 |
) |
|
182 |
|
|
(432 |
) |
Add: Asset impairment
charges |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Add: Incentive
allocations |
2,211 |
|
|
573 |
|
|
1,638 |
|
|
2,373 |
|
|
573 |
|
|
1,800 |
|
Add: Depreciation and
amortization expense (1) |
51,554 |
|
|
38,506 |
|
|
13,048 |
|
|
99,421 |
|
|
75,320 |
|
|
24,101 |
|
Add: Interest expense |
25,472 |
|
|
12,857 |
|
|
12,615 |
|
|
46,775 |
|
|
24,728 |
|
|
22,047 |
|
Add: Pro-rata share of
Adjusted EBITDA from unconsolidated entities (2) |
24 |
|
|
(192 |
) |
|
216 |
|
|
(94 |
) |
|
(17 |
) |
|
(77 |
) |
Less: Equity in losses of
unconsolidated entities |
169 |
|
|
251 |
|
|
(82 |
) |
|
553 |
|
|
156 |
|
|
397 |
|
Less: Non-controlling share of
Adjusted EBITDA (3) |
(2,871 |
) |
|
(2,447 |
) |
|
(424 |
) |
|
(5,174 |
) |
|
(5,612 |
) |
|
438 |
|
Adjusted EBITDA
(non-GAAP) |
$ |
94,130 |
|
|
$ |
52,217 |
|
|
$ |
41,913 |
|
|
$ |
160,420 |
|
|
$ |
100,337 |
|
|
$ |
60,083 |
|
________________________________________________________
(1) |
Includes the following items for the three months ended
June 30, 2019 and 2018: (i) depreciation and amortization
expense of $42,600 and $32,844, (ii) lease intangible amortization
of $2,202 and $2,010 and (iii) amortization for lease incentives of
$6,752 and $3,652, respectively. Includes the following items for
the six months ended June 30, 2019 and 2018: (i) depreciation
and amortization expense of $82,133 and $62,431, (ii) lease
intangible amortization of $4,664 and $4,002 and (iii) amortization
for lease incentives of $12,624 and $8,887, respectively. |
|
|
(2) |
Includes the following items for the three months ended June 30,
2019 and 2018: (i) net loss of $(276) and $(299),
(ii) interest expense of $34 and $94 and
(iii) depreciation and amortization expense of $266 and $13,
respectively. Includes the following items for the six months ended
June 30, 2019 and 2018: (i) net loss of $(696) and $(251),
(ii) interest expense of $70 and $206 and
(iii) depreciation and amortization expense of $532 and $28,
respectively. |
|
|
(3) |
Includes the following items for the three months ended June 30,
2019 and 2018: (i) equity based compensation of $110 and $25, (ii)
provision for income taxes of $10 and $3, (iii) interest expense of
$1,109 and $1,032, (iv) depreciation and amortization expense of
$1,345 and $1,200, and (v) changes in fair value of non-hedge
derivative instruments of $297 and $187, respectively. Includes the
following items for the six months ended June 30, 2019 and 2018:
(i) equity based compensation of $135 and $62, (ii) provision for
income taxes of $46 and $7, (iii) interest expense of $2,008 and
$2,324, (iv) depreciation and amortization expense of $2,509 and
$3,276 and (v) changes in fair value of non-hedge derivative
instruments of $476 and $(57), respectively. |
We use Funds Available for Distribution (“FAD”)
in evaluating our ability to meet our stated dividend policy. FAD
is not a financial measure in accordance with GAAP. The GAAP
measure most directly comparable to FAD is net cash provided by
operating activities. We believe FAD is a useful metric for
investors and analysts for similar purposes.
We define FAD as: net cash provided by operating
activities plus principal collections on finance leases, proceeds
from sale of assets, and return of capital distributions from
unconsolidated entities, less required payments on debt obligations
and capital distributions to non-controlling interest, and excludes
changes in working capital.
The following table sets forth a reconciliation
of Net Cash Provided by Operating Activities to FAD for the six
months ended June 30, 2019 and 2018:
|
Six Months Ended June 30, |
(in thousands) |
2019 |
|
2018 |
Net Cash Provided by Operating Activities |
$ |
58,112 |
|
|
$ |
59,152 |
|
Add: Principal Collections on
Finance Leases |
2,996 |
|
|
539 |
|
Add: Proceeds from Sale of
Assets |
71,504 |
|
|
26,530 |
|
Add: Return of Capital
Distributions from Unconsolidated Entities |
1,280 |
|
|
— |
|
Less: Required Payments on
Debt Obligations (1) |
(3,125 |
) |
|
(3,124 |
) |
Less: Capital Distributions to
Non-Controlling Interest |
— |
|
|
— |
|
Exclude: Changes in Working
Capital |
26,310 |
|
|
(3,876 |
) |
Funds Available for
Distribution (FAD) |
$ |
157,077 |
|
|
$ |
79,221 |
|
________________________________________________________
(1) |
Required payments on debt obligations for the six months ended
June 30, 2019 exclude repayments of $115,000 for the Revolving
Credit Facility and $10,710 for the CMQR Credit Agreement, and for
the six months ended June 30, 2018 exclude repayments of
$25,000 for the Revolving Credit Facility and $17,750 for the CMQR
Credit Agreement, all of which were voluntary refinancings as
repayments of these amounts were not required at such time. |
The following tables set forth a reconciliation
of FAD to Net Cash provided by Operating Activities for the three
and six months ended June 30, 2019:
|
Three Months Ended June 30, 2019 |
(in thousands) |
Aviation Leasing |
|
Infrastructure |
|
Corporate and Other |
|
Total |
Funds
Available for Distribution (FAD) |
$ |
126,817 |
|
$ |
(9,994 |
) |
|
$ |
(29,929 |
) |
|
$ |
86,894 |
|
Less: Principal Collections on Finance Leases |
|
|
|
|
|
|
(1,707 |
) |
Less: Proceeds from Sale of Assets |
|
|
|
|
|
|
(44,205 |
) |
Less: Return of Capital Distributions from Unconsolidated
Entities |
|
|
|
|
|
|
(882 |
) |
Add: Required Payments on Debt Obligations (1) |
|
|
|
|
|
|
1,563 |
|
Add: Capital Distributions to Non-Controlling Interest |
|
|
|
|
|
|
— |
|
Include: Changes in Working Capital |
|
|
|
|
|
|
(3,821 |
) |
Net Cash provided by Operating Activities |
|
|
|
|
|
|
$ |
37,842 |
|
(1) |
Required payments on debt obligations for the three months ended
June 30, 2019 exclude repayments of $75,000 for the Revolving
Credit Facility and $5,050 for the CMQR Credit Agreement, both of
which were voluntary refinancings as repayments of these amounts
were not required at such time. |
|
Six Months Ended June 30, 2019 |
(in thousands) |
Aviation Leasing |
|
Infrastructure |
|
Corporate and Other |
|
Total |
Funds
Available for Distribution (FAD) |
$ |
227,958 |
|
$ |
(14,179 |
) |
|
$ |
(56,702 |
) |
|
$ |
157,077 |
|
Less: Principal Collections on Finance Leases |
|
|
|
|
|
|
(2,996 |
) |
Less: Proceeds from Sale of Assets |
|
|
|
|
|
|
(71,504 |
) |
Less: Return of Capital Distributions from Unconsolidated
Entities |
|
|
|
|
|
|
(1,280 |
) |
Add: Required Payments on Debt Obligations (2) |
|
|
|
|
|
|
3,125 |
|
Add: Capital Distributions to Non-Controlling Interest |
|
|
|
|
|
|
— |
|
Include: Changes in Working Capital |
|
|
|
|
|
|
(26,310 |
) |
Net Cash provided by Operating Activities |
|
|
|
|
|
|
$ |
58,112 |
|
(2) |
Required payments on debt obligations for the six months ended June
30, 2019 exclude repayments of $115,000 for the Revolving Credit
Facility and $10,710 for the CMQR Credit Agreement, both of which
were voluntary refinancings as repayments of these amounts were not
required at such time. |
FAD is subject to a number of limitations and
assumptions and there can be no assurance that the Company will
generate FAD sufficient to meet its intended dividends. FAD has
material limitations as a liquidity measure of the Company because
such measure excludes items that are required elements of the
Company’s net cash provided by operating activities as described
below. FAD should not be considered in isolation nor as a
substitute for analysis of the Company’s results of operations
under GAAP, and it is not the only metric that should be considered
in evaluating the Company’s ability to meet its stated dividend
policy. Specifically:
- FAD does not include equity capital called from the Company’s
existing limited partners, proceeds from any debt issuance or
future equity offering, historical cash and cash equivalents and
expected investments in the Company’s operations.
- FAD does not give pro forma effect to prior acquisitions,
certain of which cannot be quantified.
- While FAD reflects the cash inflows from sale of certain
assets, FAD does not reflect the cash outflows to acquire assets as
the Company relies on alternative sources of liquidity to fund such
purchases.
- FAD does not reflect expenditures related to capital
expenditures, acquisitions and other investments as the Company has
multiple sources of liquidity and intends to fund these
expenditures with future incurrences of indebtedness, additional
capital contributions and/or future issuances of equity.
- FAD does not reflect any maintenance capital expenditures
necessary to maintain the same level of cash generation from our
capital investments.
- FAD does not reflect changes in working capital balances as
management believes that changes in working capital are primarily
driven by short term timing differences, which are not meaningful
to the Company’s distribution decisions.
- Management has significant discretion to make distributions,
and the Company is not bound by any contractual provision that
requires it to use cash for distributions.
If such factors were included in FAD, there can
be no assurance that the results would be consistent with the
Company’s presentation of FAD.
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