Fortress Transportation and Infrastructure Investors LLC
(NYSE:FTAI) (the “Company” or “FTAI”) today reported financial
results for the first quarter 2021. 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 |
Q1’21 |
|
Net Cash Used in Operating Activities |
$ |
(48,932 |
) |
|
Net
Loss Attributable to Shareholders |
$ |
(34,540 |
) |
|
Basic
and Diluted Loss per Common Share |
$ |
(0.40 |
) |
|
|
|
|
Funds
Available for Distribution (“FAD”) (1) |
$ |
14,407 |
|
|
Adjusted EBITDA(1) |
$ |
47,154 |
|
|
_______________________________
(1) |
For definitions and reconciliations of non-GAAP measures, please
refer to the exhibit to this press release. |
For the first quarter of 2021, total FAD was
$14.4 million. This amount includes $60.6 million from our aviation
leasing portfolio, offset by $(3.8) million from our infrastructure
business and $(42.4) million from corporate and other.
First Quarter 2021
Dividends
On April 29, 2021, 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, 2021,
payable on May 25, 2021 to the holders of record on May 14,
2021.
Additionally, on April 29, 2021, the Board
declared cash dividends on its Fixed-to-Floating Rate Series A
Cumulative Perpetual Redeemable Preferred Shares (“Series A
Preferred Shares”), Fixed-to-Floating Rate Series B Cumulative
Perpetual Redeemable Preferred Shares (“Series B Preferred Shares”)
and Fixed Rate Reset Series C Cumulative Perpetual Redeemable
Preferred Shares (“Series C Preferred Shares”) of $0.51563,
$0.50000 and $0.45833 per share, respectively, for the quarter
ended March 31, 2021, payable on June 15, 2021 to the holders of
record on June 1, 2021.
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-K, 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, April 30, 2021 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 2021 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, April 30, 2021
through 11:30 A.M. Friday, May 7, 2021 at (855) 859-2056 (from
within the U.S.) or (404) 537-3406 (from outside of the U.S.),
Passcode: 8347267.
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, Series B Preferred
and Series C Preferred dividends declared in April 2021 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 |
|
Non-U.S. Long Term Capital Gain |
$ |
— |
|
U.S. Portfolio Interest
Income(1) |
$ |
0.03036 |
|
U.S. Dividend Income(2) |
$ |
— |
|
Income Not from U.S.
Sources(3) |
$ |
0.29964 |
|
U.S. Long Term Capital Gain
(4) |
$ |
— |
|
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 |
|
Series C Preferred Distribution Components |
|
Guaranteed Payments(5) |
$ |
0.45833 |
|
Distribution Per Share |
$ |
0.45833 |
|
(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 LLCCONSOLIDATED
STATEMENTS OF OPERATIONS (Unaudited)(Dollar amounts in
thousands, except per share data)
|
|
Three Months Ended March 31, |
|
|
2021 |
|
2020 |
Revenues |
|
|
|
|
Equipment leasing revenues |
|
$ |
56,607 |
|
|
|
$ |
86,449 |
|
|
Infrastructure revenues |
|
20,542 |
|
|
|
26,391 |
|
|
Total revenues |
|
77,149 |
|
|
|
112,840 |
|
|
Expenses |
|
|
|
|
Operating expenses |
|
24,997 |
|
|
|
33,444 |
|
|
General and
administrative |
|
4,252 |
|
|
|
4,663 |
|
|
Acquisition and transaction
expenses |
|
1,643 |
|
|
|
3,194 |
|
|
Management fees and incentive
allocation to affiliate |
|
3,990 |
|
|
|
4,766 |
|
|
Depreciation and
amortization |
|
44,535 |
|
|
|
42,197 |
|
|
Asset impairment |
|
2,100 |
|
|
|
— |
|
|
Interest expense |
|
32,990 |
|
|
|
22,861 |
|
|
Total expenses |
|
114,507 |
|
|
|
111,125 |
|
|
Other income
(expense) |
|
|
|
|
Equity in earnings of
unconsolidated entities |
|
1,374 |
|
|
|
265 |
|
|
Gain (loss) on sale of assets,
net |
|
811 |
|
|
|
(1,819 |
) |
|
Loss on extinguishment of
debt |
|
— |
|
|
|
(4,724 |
) |
|
Interest income |
|
285 |
|
|
|
41 |
|
|
Other income |
|
181 |
|
|
|
33 |
|
|
Total other income
(expense) |
|
2,651 |
|
|
|
(6,204 |
) |
|
Loss from continuing
operations before income taxes |
|
(34,707 |
) |
|
|
(4,489 |
) |
|
Provision for (benefit from)
income taxes |
|
169 |
|
|
|
(98 |
) |
|
Net loss from continuing operations |
|
(34,876 |
) |
|
|
(4,391 |
) |
|
Net income from discontinued operations, net of income taxes |
|
— |
|
|
|
1,331 |
|
|
Net loss |
|
(34,876 |
) |
|
|
(3,060 |
) |
|
Less: Net loss attributable to
non-controlling interests in consolidated subsidiaries |
|
(4,961 |
) |
|
|
(4,736 |
) |
|
Less: Dividends on preferred
shares |
|
4,625 |
|
|
|
4,539 |
|
|
Net loss attributable
to shareholders |
|
$ |
(34,540 |
) |
|
|
$ |
(2,863 |
) |
|
|
|
|
|
|
(Loss) earnings per
share: |
|
|
|
|
Basic |
|
|
|
|
Continuing operations |
|
$ |
(0.40 |
) |
|
|
$ |
(0.05 |
) |
|
Discontinued operations |
|
$ |
— |
|
|
|
$ |
0.02 |
|
|
Diluted |
|
|
|
|
Continuing operations |
|
$ |
(0.40 |
) |
|
|
$ |
(0.05 |
) |
|
Discontinued operations |
|
$ |
— |
|
|
|
$ |
0.02 |
|
|
Weighted average
shares outstanding: |
|
|
|
|
Basic |
|
86,027,944 |
|
|
|
86,008,099 |
|
|
Diluted |
|
86,027,944 |
|
|
|
86,008,099 |
|
|
|
|
|
|
|
|
|
|
|
FORTRESS TRANSPORTATION AND
INFRASTRUCTURE INVESTORS LLCCONSOLIDATED BALANCE
SHEETS (Unaudited)(Dollar amounts in thousands, except per
share data)
|
|
(Unaudited) |
|
|
|
|
March 31, 2021 |
|
December 31, 2020 |
Assets |
|
|
|
|
Cash and cash equivalents |
|
$ |
160,252 |
|
|
|
$ |
121,703 |
|
|
Restricted cash |
|
33,224 |
|
|
|
39,715 |
|
|
Accounts receivable, net |
|
111,898 |
|
|
|
91,691 |
|
|
Leasing equipment, net |
|
1,684,816 |
|
|
|
1,635,259 |
|
|
Operating lease right-of-use
assets, net |
|
64,801 |
|
|
|
62,355 |
|
|
Finance leases, net |
|
13,966 |
|
|
|
6,927 |
|
|
Property, plant, and
equipment, net |
|
1,000,988 |
|
|
|
964,363 |
|
|
Investments |
|
161,767 |
|
|
|
146,515 |
|
|
Intangible assets, net |
|
16,809 |
|
|
|
18,786 |
|
|
Goodwill |
|
122,735 |
|
|
|
122,735 |
|
|
Other assets |
|
220,791 |
|
|
|
177,928 |
|
|
Total assets |
|
$ |
3,592,047 |
|
|
|
$ |
3,387,977 |
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
Accounts payable and accrued
liabilities |
|
$ |
101,155 |
|
|
|
$ |
113,185 |
|
|
Debt, net |
|
2,077,402 |
|
|
|
1,904,762 |
|
|
Maintenance deposits |
|
140,487 |
|
|
|
148,293 |
|
|
Security deposits |
|
35,117 |
|
|
|
37,064 |
|
|
Operating lease
liabilities |
|
64,231 |
|
|
|
62,001 |
|
|
Other liabilities |
|
30,003 |
|
|
|
23,351 |
|
|
Total liabilities |
|
$ |
2,448,395 |
|
|
|
$ |
2,288,656 |
|
|
|
|
|
|
|
Commitments and
contingencies |
|
|
|
|
|
|
|
|
|
Equity |
|
|
|
|
Common shares ($0.01 par value
per share; 2,000,000,000 shares authorized; 85,630,753 and
85,617,146 shares issued and outstanding as of March 31, 2021 and
December 31, 2020, respectively) |
|
$ |
856 |
|
|
|
$ |
856 |
|
|
Preferred shares ($0.01 par
value per share; 200,000,000 shares authorized; 13,320,000 and
9,120,000 shares issued and outstanding as of March 31, 2021 and
December 31, 2020, respectively) |
|
133 |
|
|
|
91 |
|
|
Additional paid in
capital |
|
1,198,386 |
|
|
|
1,130,106 |
|
|
Accumulated deficit |
|
(58,073 |
) |
|
|
(28,158 |
) |
|
Accumulated other
comprehensive loss |
|
(16,283 |
) |
|
|
(26,237 |
) |
|
Shareholders' equity |
|
1,125,019 |
|
|
|
1,076,658 |
|
|
Non-controlling interest in
equity of consolidated subsidiaries |
|
18,633 |
|
|
|
22,663 |
|
|
Total equity |
|
1,143,652 |
|
|
|
1,099,321 |
|
|
Total liabilities and
equity |
|
$ |
3,592,047 |
|
|
|
$ |
3,387,977 |
|
|
|
|
|
|
|
|
|
|
|
|
|
FORTRESS TRANSPORTATION AND
INFRASTRUCTURE INVESTORS LLCCONSOLIDATED
STATEMENTS OF CASH FLOWS (Unaudited)(Dollar amounts in
thousands, unless otherwise noted)
|
Three Months Ended March 31, |
|
2021 |
|
2020 |
Cash flows from
operating activities: |
|
|
|
Net loss |
$ |
(34,876 |
) |
|
|
$ |
(3,060 |
) |
|
Adjustments to reconcile net
loss to net cash used in operating activities: |
|
|
|
Equity in earnings of
unconsolidated entities |
(1,374 |
) |
|
|
(265 |
) |
|
Gain on sale of
subsidiaries |
— |
|
|
|
(1,331 |
) |
|
(Gain) loss on sale of assets,
net |
(811 |
) |
|
|
1,819 |
|
|
Security deposits and
maintenance claims included in earnings |
(2,836 |
) |
|
|
8,844 |
|
|
Loss on extinguishment of
debt |
— |
|
|
|
4,724 |
|
|
Equity-based compensation |
1,114 |
|
|
|
291 |
|
|
Depreciation and
amortization |
44,535 |
|
|
|
42,197 |
|
|
Asset impairment |
2,100 |
|
|
|
— |
|
|
Change in deferred income
taxes |
— |
|
|
|
3,822 |
|
|
Change in fair value of
non-hedge derivative |
(7,964 |
) |
|
|
181 |
|
|
Amortization of lease
intangibles and incentives |
8,108 |
|
|
|
6,867 |
|
|
Amortization of deferred
financing costs |
2,268 |
|
|
|
2,065 |
|
|
Bad debt expense |
(547 |
) |
|
|
632 |
|
|
Other |
(279 |
) |
|
|
363 |
|
|
Change in: |
|
|
|
Accounts receivable |
(19,786 |
) |
|
|
(10,780 |
) |
|
Other assets |
(17,953 |
) |
|
|
7,063 |
|
|
Accounts payable and accrued liabilities |
(19,707 |
) |
|
|
(46,316 |
) |
|
Management fees payable to affiliate |
(602 |
) |
|
|
(20,865 |
) |
|
Other liabilities |
(322 |
) |
|
|
(8,057 |
) |
|
Net cash used in
operating activities |
(48,932 |
) |
|
|
(11,806 |
) |
|
|
|
|
|
Cash flows from
investing activities: |
|
|
|
Investment in unconsolidated
entities |
(1,278 |
) |
|
|
(2,452 |
) |
|
Principal collections on
finance leases |
395 |
|
|
|
320 |
|
|
Acquisition of leasing
equipment |
(114,781 |
) |
|
|
(57,570 |
) |
|
Acquisition of property, plant
and equipment |
(39,302 |
) |
|
|
(60,402 |
) |
|
Acquisition of lease
intangibles |
(386 |
) |
|
|
1,161 |
|
|
Purchase deposits for
acquisitions |
(9,250 |
) |
|
|
(3,100 |
) |
|
Proceeds from sale of leasing
equipment |
4,574 |
|
|
|
28,568 |
|
|
Return of purchase deposit for
aircraft and aircraft engines |
4,600 |
|
|
|
— |
|
|
Return of deposit on sale of
engine |
1,010 |
|
|
|
2,350 |
|
|
Net cash used in
investing activities |
$ |
(154,418 |
) |
|
|
$ |
(91,125 |
) |
|
|
|
|
|
|
|
|
|
|
|
FORTRESS TRANSPORTATION AND
INFRASTRUCTURE INVESTORS LLCCONSOLIDATED
STATEMENTS OF CASH FLOWS (Unaudited)(Dollar amounts in
thousands, unless otherwise noted)
|
Three Months Ended March 31, |
|
2021 |
|
2020 |
Cash flows from
financing activities: |
|
|
|
Proceeds from debt |
$ |
171,600 |
|
|
|
$ |
303,980 |
|
|
Repayment of debt |
— |
|
|
|
(275,991 |
) |
|
Payment of deferred financing
costs |
(563 |
) |
|
|
(11,767 |
) |
|
Receipt of security
deposits |
70 |
|
|
|
130 |
|
|
Return of security
deposits |
(975 |
) |
|
|
(3,815 |
) |
|
Receipt of maintenance
deposits |
8,770 |
|
|
|
13,626 |
|
|
Release of maintenance
deposits |
(11,483 |
) |
|
|
(9,185 |
) |
|
Proceeds from issuance of
preferred shares, net of underwriter's discount and issuance
costs |
101,180 |
|
|
|
(246 |
) |
|
Settlement of equity-based
compensation |
(183 |
) |
|
|
— |
|
|
Cash dividends - common
shares |
(28,383 |
) |
|
|
(28,391 |
) |
|
Cash dividends - preferred
shares |
(4,625 |
) |
|
|
(4,539 |
) |
|
Net cash provided by
(used in) financing activities |
$ |
235,408 |
|
|
|
$ |
(16,198 |
) |
|
|
|
|
|
Net increase
(decrease) in cash and cash equivalents and restricted
cash |
32,058 |
|
|
|
(119,129 |
) |
|
Cash and cash equivalents and
restricted cash, beginning of period |
161,418 |
|
|
|
242,517 |
|
|
Cash and cash
equivalents and restricted cash, end of period |
$ |
193,476 |
|
|
|
$ |
123,388 |
|
|
|
|
|
|
|
|
|
|
|
|
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 (losses) attributable to shareholders from continuing
operations, 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 loss attributable to shareholders from continuing operations
to Adjusted EBITDA for the three months ended March 31, 2021
and 2020:
|
Three Months Ended March
31, |
(in thousands) |
2021 |
|
2020 |
Net loss attributable to shareholders from continuing
operations |
$ |
(34,540 |
) |
|
|
$ |
(4,194 |
) |
|
Add: Provision for (benefit
from) income taxes |
169 |
|
|
|
(98 |
) |
|
Add: Equity-based compensation
expense |
1,114 |
|
|
|
291 |
|
|
Add: Acquisition and
transaction expenses |
1,643 |
|
|
|
3,194 |
|
|
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 |
(7,964 |
) |
|
|
181 |
|
|
Add: Asset impairment
charges |
2,100 |
|
|
|
— |
|
|
Add: Incentive
allocations |
— |
|
|
|
— |
|
|
Add: Depreciation and
amortization expense (1) |
52,643 |
|
|
|
49,064 |
|
|
Add: Interest expense |
32,990 |
|
|
|
22,861 |
|
|
Add: Pro-rata share of
Adjusted EBITDA from unconsolidated entities (2) |
2,402 |
|
|
|
(413 |
) |
|
Less: Equity in earnings of
unconsolidated entities |
(1,374 |
) |
|
|
(265 |
) |
|
Less: Non-controlling share of
Adjusted EBITDA (3) |
(2,029 |
) |
|
|
(3,350 |
) |
|
Adjusted EBITDA
(non-GAAP) |
$ |
47,154 |
|
|
|
$ |
71,995 |
|
|
________________________________________________________
(1) |
Includes the following items for the three months ended
March 31, 2021 and 2020: (i) depreciation and amortization
expense of $44,535 and $42,197, (ii) lease intangible amortization
of $752 and $1,132 and (iii) amortization for lease incentives of
$7,356 and $5,735, respectively. |
|
|
(2) |
Includes the following items for the three months ended March 31,
2021 and 2020: (i) net income of $1,180 and $223,
(ii) interest expense of $187 and $35, (iii) depreciation
and amortization expense of $1,912 and $962, (iv) acquisition and
transaction expenses of $0 and $81 and (v) changes in fair value of
non-hedge derivatives of $(877) and $(1,714), respectively. |
|
|
(3) |
Includes the following items for the three months ended March 31,
2021 and 2020: (i) equity-based compensation of $198 and $47, (ii)
provision for income taxes of $13 and $28, (iii) interest expense
of $281 and $720, (iv) depreciation and amortization expense of
$1,811 and $1,524, (v) changes in fair value of non-hedge
derivative instruments of $(274) and $38 and (vi) loss on
extinguishment of debt of $0 and $993 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 Operating Activities to FAD for the three
months ended March 31, 2021 and 2020:
|
Three Months Ended March 31, |
(in thousands) |
2021 |
|
2020 |
Net Cash Used in Operating Activities |
$ |
(48,932 |
) |
|
|
$ |
(11,806 |
) |
|
Add: Principal Collections on
Finance Leases |
395 |
|
|
|
320 |
|
|
Add: Proceeds from Sale of
Assets |
4,574 |
|
|
|
28,568 |
|
|
Add: Return of Capital
Distributions from Unconsolidated Entities |
— |
|
|
|
— |
|
|
Less: Required Payments on
Debt Obligations (1) |
— |
|
|
|
— |
|
|
Less: Capital Distributions to
Non-Controlling Interest |
— |
|
|
|
— |
|
|
Exclude: Changes in Working
Capital |
58,370 |
|
|
|
78,955 |
|
|
Funds Available for
Distribution (FAD) |
$ |
14,407 |
|
|
|
$ |
96,037 |
|
|
________________________________________________________
(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. |
|
|
The following tables set forth a reconciliation
of Net Cash Used in Operating Activities to FAD for the three
months ended March 31, 2021:
|
Three Months Ended March 31, 2021 |
(in thousands) |
Equipment Leasing |
|
Infrastructure |
|
Corporate and Other |
|
Total |
Funds Available for Distribution (FAD) |
$ |
60,653 |
|
|
$ |
(3,841 |
) |
|
|
$ |
(42,405 |
) |
|
$ |
14,407 |
|
|
Less: Principal Collections on Finance Leases |
|
|
|
|
|
|
(395 |
) |
|
Less: Proceeds from Sale of Assets |
|
|
|
|
|
|
(4,574 |
) |
|
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 |
|
|
|
|
|
|
(58,370 |
) |
|
Net Cash Used in Operating Activities |
|
|
|
|
|
|
$ |
(48,932 |
) |
|
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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