Fortress Transportation and Infrastructure Investors LLC
(NYSE:FTAI) (the “Company” or “FTAI”) today reported financial
results for the first quarter 2020. 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 |
Q1’20 |
|
|
Net Cash Used in Operating Activities |
$ |
(11,806 |
) |
|
|
Net Loss Attributable to Shareholders |
$ |
(2,863 |
) |
|
|
Basic and Diluted Loss per Common Share |
$ |
(0.03 |
) |
|
|
|
|
|
|
Funds Available for Distribution (“FAD”) (1) |
$ |
96,037 |
|
|
|
Adjusted EBITDA(1) |
$ |
71,995 |
|
|
|
_______________________________(1) For
definitions and reconciliations of non-GAAP measures, please refer
to the exhibit to this press release.
For the first quarter of 2020, total FAD was
$96.0 million. This amount includes $121.3 million from our
aviation leasing portfolio, and $1.7 million from our
infrastructure business, offset by $(27.0) million from corporate
and other.
First Quarter 2020
Dividends
On April 28, 2020, the Company’s Board of
Directors (the “Board”) declared a cash dividend on its common
shares of $0.33 per share for the quarter ended March 31, 2020,
payable on May 26, 2020 to the holders of record on May 15,
2020.
Additionally, on April 28, 2020, the Board
declared cash dividends on its Fixed-to-Floating Rate Series A
Cumulative Perpetual Redeemable Preferred Shares (“Series A
Preferred Shares”) and Fixed-to-Floating Rate Series B Cumulative
Perpetual Redeemable Preferred Shares (“Series B Preferred Shares”)
of $0.51563 and $0.50000 per share, respectively, for the quarter
ended March 31, 2020, payable on June 15, 2020 to the holders
of record on June 1, 2020.
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, May 1, 2020 at 8:00 A.M. Eastern Time. The conference call
may be accessed by dialing (877) 447-5636 (from within the U.S.) or
(615) 247-0080 (from outside of the U.S.) ten minutes prior to the
scheduled start of the call; please reference "FTAI First Quarter
2020 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, May 1, 2020
through midnight Friday, May 8, 2020 at (855) 859-2056 (from within
the U.S.) or (404) 537-3406 (from outside of the U.S.), Passcode:
1623849.
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
most recent 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 common dividend and the Series A Preferred and Series B
Preferred dividends declared in April 2020 will be treated as a
partnership distribution and guaranteed payments,
respectively. For U.S. tax withholding purposes, the per
share distribution components are as follows:
Common Distribution Components |
|
U.S. Portfolio Interest
Income(1) |
$ |
0.02500 |
|
U.S. Dividend Income(2) |
$ |
— |
|
Income Not from U.S.
Sources(3) |
$ |
0.13690 |
|
U.S. Long Term Capital Gain
(4) |
$ |
0.16810 |
|
Distribution Per Share |
$ |
0.33000 |
|
Series A Preferred Distribution Components |
|
Guaranteed Payments(5) |
$ |
0.51563 |
|
Distribution Per Share |
$ |
0.51563 |
|
Series B Preferred Distribution Components |
|
Guaranteed Payments(5) |
$ |
0.50000 |
|
Distribution Per Share |
$ |
0.50000 |
|
(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 or §1442 of the Code.
(3) This income is not subject to withholding
under §1441, §1442 or §1446 of the Code.
(4) U.S. Long Term Capital Gain attributable to
the sale of a U.S. Real Property Holding Corporation. As a result,
the gain will be treated as income that is effectively connected
with a U.S. trade or business and be subject to withholding.
(5) Brokers and nominees should treat this
income as subject to withholding under §1441 or §1442 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, except per share
data)
|
|
Three Months Ended March 31, |
|
|
2020 |
|
2019 |
Revenues |
|
|
|
|
Equipment leasing
revenues |
|
$ |
86,449 |
|
|
|
$ |
72,452 |
|
|
Infrastructure revenues |
|
26,391 |
|
|
|
42,442 |
|
|
Total revenues |
|
112,840 |
|
|
|
114,894 |
|
|
Expenses |
|
|
|
|
Operating expenses |
|
33,444 |
|
|
|
54,310 |
|
|
General and
administrative |
|
4,663 |
|
|
|
4,184 |
|
|
Acquisition and transaction
expenses |
|
3,194 |
|
|
|
1,474 |
|
|
Management fees and incentive
allocation to affiliate |
|
4,766 |
|
|
|
3,838 |
|
|
Depreciation and
amortization |
|
42,197 |
|
|
|
38,863 |
|
|
Interest expense |
|
22,861 |
|
|
|
20,734 |
|
|
Total expenses |
|
111,125 |
|
|
|
123,403 |
|
|
Other income
(expense) |
|
|
|
|
Equity in earnings (losses) of
unconsolidated entities |
|
265 |
|
|
|
(384 |
) |
|
(Loss) gain on sale of assets,
net |
|
(1,819 |
) |
|
|
1,718 |
|
|
Loss on extinguishment of
debt |
|
(4,724 |
) |
|
|
— |
|
|
Interest income |
|
41 |
|
|
|
91 |
|
|
Other income (expense) |
|
33 |
|
|
|
(2,603 |
) |
|
Total other expense |
|
(6,204 |
) |
|
|
(1,178 |
) |
|
Loss from continuing
operations before income taxes |
|
(4,489 |
) |
|
|
(9,687 |
) |
|
(Benefit from) provision for
income taxes |
|
(98 |
) |
|
|
267 |
|
|
Net loss from continuing operations |
|
(4,391 |
) |
|
|
(9,954 |
) |
|
Net income from discontinued operations, net of income taxes |
|
1,331 |
|
|
|
158 |
|
|
Net loss |
|
(3,060 |
) |
|
|
(9,796 |
) |
|
Less: Net loss attributable to
non-controlling interests in consolidated subsidiaries: |
|
|
|
|
Continuing operations |
|
(4,736 |
) |
|
|
(3,360 |
) |
|
Discontinued operations |
|
— |
|
|
|
(56 |
) |
|
Dividends on preferred
shares |
|
4,539 |
|
|
|
— |
|
|
Net loss attributable
to shareholders |
|
$ |
(2,863 |
) |
|
|
$ |
(6,380 |
) |
|
|
|
|
|
|
Earnings (loss) per
share: |
|
|
|
|
Basic |
|
|
|
|
Continuing operations |
|
$ |
(0.05 |
) |
|
|
$ |
(0.07 |
) |
|
Discontinued operations |
|
$ |
0.02 |
|
|
|
$ |
0.00 |
|
|
Diluted |
|
|
|
|
Continuing operations |
|
$ |
(0.05 |
) |
|
|
$ |
(0.07 |
) |
|
Discontinued operations |
|
$ |
0.02 |
|
|
|
$ |
0.00 |
|
|
Weighted average
shares outstanding: |
|
|
|
|
Basic |
|
86,008,099 |
|
|
|
85,986,453 |
|
|
Diluted |
|
86,008,099 |
|
|
|
85,986,453 |
|
|
FORTRESS TRANSPORTATION AND
INFRASTRUCTURE INVESTORS LLC
CONSOLIDATED BALANCE SHEETS
(Unaudited)(Dollar amounts in thousands, except per share
data)
|
|
(Unaudited) |
|
|
|
|
March 31, 2020 |
|
December 31, 2019 |
Assets |
|
|
|
|
Cash and cash equivalents |
|
$ |
45,120 |
|
|
$ |
226,512 |
|
Restricted cash |
|
78,268 |
|
|
16,005 |
|
Accounts receivable, net |
|
57,945 |
|
|
49,470 |
|
Leasing equipment, net |
|
1,680,646 |
|
|
1,707,059 |
|
Operating lease right-of-use
assets, net |
|
62,965 |
|
|
37,466 |
|
Finance leases, net |
|
7,995 |
|
|
8,315 |
|
Property, plant, and
equipment, net |
|
789,300 |
|
|
732,109 |
|
Investments |
|
194,352 |
|
|
180,550 |
|
Intangible assets, net |
|
25,115 |
|
|
27,692 |
|
Goodwill |
|
122,735 |
|
|
122,639 |
|
Other assets |
|
112,147 |
|
|
129,105 |
|
Total assets |
|
$ |
3,176,588 |
|
|
$ |
3,236,922 |
|
|
|
|
|
|
Liabilities |
|
|
|
|
Accounts payable and accrued
liabilities |
|
$ |
82,928 |
|
|
$ |
144,855 |
|
Debt, net |
|
1,445,735 |
|
|
1,420,928 |
|
Maintenance deposits |
|
198,694 |
|
|
208,944 |
|
Security deposits |
|
42,182 |
|
|
45,252 |
|
Operating lease
liabilities |
|
62,524 |
|
|
36,968 |
|
Other liabilities |
|
32,701 |
|
|
41,118 |
|
Total liabilities |
|
$ |
1,864,764 |
|
|
$ |
1,898,065 |
|
|
|
|
|
|
Commitments and
contingencies |
|
|
|
|
|
|
|
|
|
Equity |
|
|
|
|
Common shares ($0.01 par value
per share; 2,000,000,000 shares authorized; 85,114,636 and
84,917,448 shares issued and outstanding as of March 31, 2020 and
December 31, 2019, respectively) |
|
$ |
851 |
|
|
$ |
849 |
|
Preferred shares ($0.01 par
value per share; 200,000,000 shares authorized; 8,050,000 and
8,050,000 shares issued and outstanding as of March 31, 2020 and
December 31, 2019, respectively) |
|
81 |
|
|
81 |
|
Additional paid in
capital |
|
1,110,028 |
|
|
1,110,122 |
|
Retained earnings |
|
159,199 |
|
|
190,453 |
|
Accumulated other
comprehensive income |
|
9,130 |
|
|
372 |
|
Shareholders' equity |
|
1,279,289 |
|
|
1,301,877 |
|
Non-controlling interest in
equity of consolidated subsidiaries |
|
32,535 |
|
|
36,980 |
|
Total equity |
|
1,311,824 |
|
|
1,338,857 |
|
Total liabilities and
equity |
|
$ |
3,176,588 |
|
|
$ |
3,236,922 |
|
FORTRESS TRANSPORTATION AND
INFRASTRUCTURE INVESTORS LLC
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)(Dollar amounts in thousands, unless otherwise
noted)
|
Three Months Ended March 31, |
|
2020 |
|
2019 |
Cash flows from
operating activities: |
|
|
|
Net loss |
$ |
(3,060 |
) |
|
|
$ |
(9,796 |
) |
|
Adjustments to reconcile net
income (loss) to net cash provided by operating activities: |
|
|
|
Equity in (earnings) losses of
unconsolidated entities |
(265 |
) |
|
|
384 |
|
|
Gain on sale of
subsidiaries |
(1,331 |
) |
|
|
— |
|
|
Loss (gain) on sale of assets,
net |
1,819 |
|
|
|
(1,725 |
) |
|
Security deposits and
maintenance claims included in earnings |
8,844 |
|
|
|
(2,953 |
) |
|
Loss on extinguishment of
debt |
4,724 |
|
|
|
— |
|
|
Equity-based compensation |
291 |
|
|
|
228 |
|
|
Depreciation and
amortization |
42,197 |
|
|
|
39,533 |
|
|
Change in current and deferred
income taxes |
3,822 |
|
|
|
338 |
|
|
Change in fair value of
non-hedge derivative |
181 |
|
|
|
3,220 |
|
|
Amortization of lease
intangibles and incentives |
6,868 |
|
|
|
8,334 |
|
|
Amortization of deferred
financing costs |
2,065 |
|
|
|
2,025 |
|
|
Bad debt expense |
632 |
|
|
|
2,950 |
|
|
Other |
362 |
|
|
|
221 |
|
|
Change in: |
|
|
|
Accounts receivable |
(10,780 |
) |
|
|
(1,127 |
) |
|
Other assets |
7,063 |
|
|
|
(5,295 |
) |
|
Accounts payable and accrued liabilities |
(46,316 |
) |
|
|
(14,348 |
) |
|
Management fees payable to affiliate |
(20,865 |
) |
|
|
(1,158 |
) |
|
Other liabilities |
(8,057 |
) |
|
|
(561 |
) |
|
Net cash (used in)
provided by operating activities |
(11,806 |
) |
|
|
20,270 |
|
|
|
|
|
|
Cash flows from
investing activities: |
|
|
|
Investment in unconsolidated
entities |
(2,452 |
) |
|
|
— |
|
|
Principal collections on
finance leases |
320 |
|
|
|
1,289 |
|
|
Acquisition of leasing
equipment |
(57,570 |
) |
|
|
(108,919 |
) |
|
Acquisition of property, plant
and equipment |
(60,402 |
) |
|
|
(81,241 |
) |
|
Acquisition of lease
intangibles |
1,161 |
|
|
|
(589 |
) |
|
Purchase deposits for
acquisitions |
(3,100 |
) |
|
|
(4,625 |
) |
|
Proceeds from sale of leasing
equipment |
28,568 |
|
|
|
27,292 |
|
|
Proceeds from sale of
property, plant and equipment |
— |
|
|
|
7 |
|
|
Return of capital
distributions from unconsolidated entities |
— |
|
|
|
398 |
|
|
Return of deposit on sale of
engine |
2,350 |
|
|
|
— |
|
|
Net cash used in
investing activities |
|
(91,125 |
) |
|
|
|
(166,388 |
) |
|
|
|
|
|
|
|
|
|
Cash flows
from financing activities: |
|
|
|
Proceeds from
debt |
|
303,980 |
|
|
|
|
352,680 |
|
|
Repayment of
debt |
(275,991 |
) |
|
|
(47,222 |
) |
|
Payment of
deferred financing costs |
(11,767 |
) |
|
|
(28,611 |
) |
|
Receipt of
security deposits |
130 |
|
|
|
1,935 |
|
|
Return of security
deposits |
(3,815 |
) |
|
|
(233 |
) |
|
Receipt of
maintenance deposits |
13,626 |
|
|
|
13,495 |
|
|
Release of
maintenance deposits |
(9,185 |
) |
|
|
(9,807 |
) |
|
Issuance costs of
preferred shares |
(246 |
) |
|
|
— |
|
|
Cash dividends -
common shares |
(28,391 |
) |
|
|
(28,383 |
) |
|
Cash dividends -
preferred shares |
(4,539 |
) |
|
|
— |
|
|
Net cash
(used in) provided by financing activities |
|
(16,198 |
) |
|
|
|
253,854 |
|
|
|
|
|
|
Net
(decrease) increase in cash and cash equivalents and restricted
cash |
(119,129 |
) |
|
|
107,736 |
|
|
Cash and cash
equivalents and restricted cash, beginning of period |
242,517 |
|
|
|
120,837 |
|
|
Cash and
cash equivalents and restricted cash, end of period |
$ |
123,388 |
|
|
|
$ |
228,573 |
|
|
Key Performance Measures
The Chief Operating Decision Maker (“CODM”)
utilizes Adjusted EBITDA as the 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 (loss) attributable to shareholders from continuing
operations, adjusted (a) to exclude the impact of (benefit from)
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 from continuing
operations to Adjusted EBITDA for the three months ended
March 31, 2020 and 2019:
|
Three Months Ended March 31, |
(in thousands) |
2020 |
|
2019 |
Net loss attributable
to shareholders from continuing operations |
$ |
(4,194 |
) |
|
|
$ |
(6,594 |
) |
|
Add: (Benefit from) provision
for income taxes |
(98 |
) |
|
|
267 |
|
|
Add: Equity-based compensation
expense |
291 |
|
|
|
182 |
|
|
Add: Acquisition and
transaction expenses |
3,194 |
|
|
|
1,474 |
|
|
Add: Losses on the
modification or extinguishment of debt and capital lease
obligations |
4,724 |
|
|
|
— |
|
|
Add: Changes in fair value of
non-hedge derivative instruments |
181 |
|
|
|
3,220 |
|
|
Add: Asset impairment
charges |
— |
|
|
|
— |
|
|
Add: Incentive
allocations |
— |
|
|
|
162 |
|
|
Add: Depreciation and
amortization expense (1) |
49,064 |
|
|
|
47,197 |
|
|
Add: Interest expense |
22,861 |
|
|
|
20,734 |
|
|
Add: Pro-rata share of
Adjusted EBITDA from unconsolidated entities (2) |
(413 |
) |
|
|
(118 |
) |
|
Less: Equity in (earnings)
losses of unconsolidated entities |
(265 |
) |
|
|
384 |
|
|
Less: Non-controlling share of
Adjusted EBITDA (3) |
(3,350 |
) |
|
|
(2,153 |
) |
|
Adjusted EBITDA
(non-GAAP) |
$ |
71,995 |
|
|
|
$ |
64,755 |
|
|
________________________________________________________
(1) Includes the following items for the three
months ended March 31, 2020 and 2019: (i) depreciation and
amortization expense of $42,197 and $38,863, (ii) lease intangible
amortization of $1,132 and $2,462 and (iii) amortization for lease
incentives of $5,735 and $5,872, respectively.
(2) Includes the following items for the three
months ended March 31, 2020 and 2019: (i) net income (loss) of
$223 and $(420), (ii) interest expense of $35 and $36,
(iii) depreciation and amortization expense of $962 and $266,
(iv) acquisition and transaction expenses of $81 and $0 and (v)
changes in fair value of non-hedge derivatives of $(1,714) and $0,
respectively.
(3) Includes the following items for the three
months ended March 31, 2020 and 2019: (i) equity based compensation
of $47 and $21, (ii) provision for income taxes of $28 and $18,
(iii) interest expense of $720 and $845, (iv) depreciation and
amortization expense of $1,524 and $1,090, (v) changes in fair
value of non-hedge derivative instruments of $38 and $179 and (vi)
loss on extinguishment of debt of $993 and $0, respectively.
The Company uses Funds Available for
Distribution (“FAD”) in evaluating its ability to meet its 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. The Company believes FAD is a
useful metric for investors and analysts for similar purposes.
The Company defines 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 excluding changes in working capital.
The following table sets forth a reconciliation
of Net Cash (Used In) Provided by Operating Activities to FAD for
the three months ended March 31, 2020 and 2019:
|
Three Months Ended March 31, |
(in thousands) |
2020 |
|
2019 |
Net Cash (Used in)
Provided by Operating Activities |
$ |
(11,806 |
) |
|
|
$ |
20,270 |
|
|
Add: Principal Collections on
Finance Leases |
320 |
|
|
|
1,289 |
|
|
Add: Proceeds from Sale of
Assets |
28,568 |
|
|
|
27,299 |
|
|
Add: Return of Capital
Distributions from Unconsolidated Entities |
— |
|
|
|
398 |
|
|
Less: Required Payments on
Debt Obligations (1) |
— |
|
|
|
(1,562 |
) |
|
Less: Capital Distributions to
Non-Controlling Interest |
— |
|
|
|
— |
|
|
Exclude: Changes in Working
Capital |
78,955 |
|
|
|
22,489 |
|
|
Funds Available for
Distribution (FAD) |
$ |
96,037 |
|
|
|
$ |
70,183 |
|
|
________________________________________________________
(1) Required payments on debt obligations for
the three months ended March 31, 2020 exclude repayments of
$144,200 for the Series 2016 Bonds, $50,262 for the Jefferson
Revolver, $45,520 for the Series 2012 Bonds and $36,009 for the
FTAI Pride Credit Agreement and for the three months ended
March 31, 2019 exclude repayments of $40,000 for the Revolving
Credit Facility and $5,660 for the CMQR Credit Agreement.
The following tables set forth a reconciliation
of Net Cash (Used in) Provided by Operating Activities to FAD for
the three months ended March 31, 2020:
|
Three Months
Ended March 31, 2020 |
(in thousands) |
Equipment Leasing |
|
Infrastructure |
|
Corporate and Other |
|
Total |
Funds Available for Distribution (FAD) |
$ |
121,254 |
|
|
$ |
1,703 |
|
|
$ |
(26,920 |
) |
|
$ |
96,037 |
|
|
Less: Principal Collections on Finance Leases |
|
|
|
|
|
|
(320 |
|
) |
Less: Proceeds from Sale of Assets |
|
|
|
|
|
|
(28,568 |
|
) |
Less: Return of Capital Distributions from Unconsolidated
Entities |
|
|
|
|
|
|
— |
|
|
Add: Required Payments on Debt Obligations |
|
|
|
|
|
|
— |
|
|
Add: Capital Distributions to Non-Controlling Interest |
|
|
|
|
|
|
— |
|
|
Include: Changes in Working Capital |
|
|
|
|
|
|
(78,955 |
) |
|
Net Cash Used in Operating Activities |
|
|
|
|
|
|
$ |
(11,806 |
) |
|
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.
Fortress Transportation ... (NYSE:FTAI)
Historical Stock Chart
From Mar 2024 to Apr 2024
Fortress Transportation ... (NYSE:FTAI)
Historical Stock Chart
From Apr 2023 to Apr 2024