Fortress Transportation and Infrastructure Investors LLC
(NYSE:FTAI) (the “Company” or “FTAI”) today reported financial
results for the fourth quarter and full year 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 |
Q4’21 |
Net Cash Used in Operating Activities |
$ |
(1,336 |
) |
Net Loss Attributable to
Shareholders |
$ |
(19,047 |
) |
Basic and Diluted Loss per
Common Share |
$ |
(0.19 |
) |
|
|
Funds Available for
Distribution (“FAD”) (1) |
$ |
120,087 |
|
Adjusted EBITDA(1) |
$ |
124,818 |
|
______________________________ |
(1) |
For definitions and reconciliations of non-GAAP measures, please
refer to the exhibit to this press release. |
|
|
For the fourth quarter of 2021, total FAD was
$120.1 million. This amount includes $161.2 million from our
aviation leasing portfolio and $11.0 million from our
infrastructure business, offset by $(52.1) million from corporate
and other. Fourth quarter EBITDA for aerospace services was
$20.3 million.
Fourth Quarter 2021
Dividends
On February 24, 2022, 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 December 31, 2021,
payable on March 23, 2022 to the holders of record on March 11,
2022.
Additionally, on February 24, 2022, 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 $0.51563 per share, respectively, for the quarter
ended December 31, 2021, payable on March 15, 2022 to the holders
of record on March 7, 2022.
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 Annual 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, February 25, 2022 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
Fourth 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.
A replay of the conference call will be
available after 11:30 A.M. on Friday, February 25, 2022 through
11:30 A.M. Friday, March 4, 2022 at (855) 859-2056 (from within the
U.S.) or (404) 537-3406 (from outside of the U.S.), Passcode:
9753259.
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 February 2022 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) |
$ |
0.00798 |
|
U.S. Dividend Income(2) |
$ |
— |
|
Income Not from U.S.
Sources(3) |
$ |
0.32202 |
|
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) |
$ |
0.51563 |
|
Distribution Per Share |
$ |
0.51563 |
|
(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 December 31 |
|
Year Ended December 31, |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
Revenues |
|
|
|
|
|
|
|
Equipment leasing revenues |
$ |
98,231 |
|
|
$ |
61,852 |
|
|
$ |
335,583 |
|
|
$ |
297,934 |
|
Infrastructure revenues |
|
47,545 |
|
|
|
13,786 |
|
|
|
120,219 |
|
|
|
68,562 |
|
Total revenues |
|
145,776 |
|
|
|
75,638 |
|
|
|
455,802 |
|
|
|
366,496 |
|
|
|
|
|
|
|
|
|
Expenses |
|
|
|
|
|
|
|
Operating expenses |
|
63,491 |
|
|
|
28,368 |
|
|
|
172,464 |
|
|
|
109,512 |
|
General and administrative |
|
5,080 |
|
|
|
4,867 |
|
|
|
17,409 |
|
|
|
18,159 |
|
Acquisition and transaction expenses |
|
8,769 |
|
|
|
571 |
|
|
|
21,941 |
|
|
|
9,868 |
|
Management fees and incentive allocation to affiliate |
|
4,374 |
|
|
|
4,406 |
|
|
|
16,322 |
|
|
|
18,519 |
|
Depreciation and amortization |
|
56,482 |
|
|
|
45,857 |
|
|
|
201,756 |
|
|
|
172,400 |
|
Asset impairment |
|
7,415 |
|
|
|
19,587 |
|
|
|
10,463 |
|
|
|
33,978 |
|
Interest expense |
|
46,042 |
|
|
|
26,647 |
|
|
|
171,036 |
|
|
|
98,206 |
|
Total expenses |
|
191,653 |
|
|
|
130,303 |
|
|
|
611,391 |
|
|
|
460,642 |
|
|
|
|
|
|
|
|
|
Other income (expense) |
|
|
|
|
|
|
|
Equity in (losses) earnings of unconsolidated entities |
|
(2,874 |
) |
|
|
406 |
|
|
|
(12,734 |
) |
|
|
(5,039 |
) |
Gain (loss) on sale of assets, net |
|
31,548 |
|
|
|
1,857 |
|
|
|
49,031 |
|
|
|
(308 |
) |
Loss on extinguishment of debt |
|
— |
|
|
|
(6,943 |
) |
|
|
(3,254 |
) |
|
|
(11,667 |
) |
Interest income |
|
489 |
|
|
|
41 |
|
|
|
1,711 |
|
|
|
162 |
|
Other (expense) income |
|
(2,157 |
) |
|
|
38 |
|
|
|
(10,928 |
) |
|
|
70 |
|
Total other income (expense) |
|
27,006 |
|
|
|
(4,601 |
) |
|
|
23,826 |
|
|
|
(16,782 |
) |
Loss from continuing operations before income
taxes |
|
(18,871 |
) |
|
|
(59,266 |
) |
|
|
(131,763 |
) |
|
|
(110,928 |
) |
Provision for (benefit from) income taxes |
|
908 |
|
|
|
429 |
|
|
|
(1,057 |
) |
|
|
(5,905 |
) |
Net loss from continuing operations |
|
(19,779 |
) |
|
|
(59,695 |
) |
|
|
(130,706 |
) |
|
|
(105,023 |
) |
Net income from discontinued operations, net of income taxes |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,331 |
|
Net loss |
|
(19,779 |
) |
|
|
(59,695 |
) |
|
|
(130,706 |
) |
|
|
(103,692 |
) |
Less: Net loss attributable to non-controlling interests in
consolidated subsidiaries |
|
(7,523 |
) |
|
|
(3,798 |
) |
|
|
(26,472 |
) |
|
|
(16,522 |
) |
Less: Dividends on preferred shares |
|
6,791 |
|
|
|
4,626 |
|
|
|
24,758 |
|
|
|
17,869 |
|
Net loss attributable to shareholders |
$ |
(19,047 |
) |
|
$ |
(60,523 |
) |
|
$ |
(128,992 |
) |
|
$ |
(105,039 |
) |
|
|
|
|
|
|
|
|
(Loss) earnings per share: |
|
|
|
|
|
|
|
Basic |
|
|
|
|
|
|
|
Continuing operations |
$ |
(0.19 |
) |
|
$ |
(0.70 |
) |
|
$ |
(1.43 |
) |
|
$ |
(1.24 |
) |
Discontinued operations |
$ |
0.00 |
|
|
$ |
0.00 |
|
|
$ |
0.00 |
|
|
$ |
0.02 |
|
Diluted |
|
|
|
|
|
|
|
Continuing operations |
$ |
(0.19 |
) |
|
$ |
(0.70 |
) |
|
$ |
(1.43 |
) |
|
$ |
(1.24 |
) |
Discontinued operations |
$ |
0.00 |
|
|
$ |
0.00 |
|
|
$ |
0.00 |
|
|
$ |
0.02 |
|
Weighted average shares outstanding: |
|
|
|
|
|
|
|
Basic |
|
99,224,907 |
|
|
|
86,022,302 |
|
|
|
89,922,088 |
|
|
|
86,015,702 |
|
Diluted |
|
99,224,907 |
|
|
|
86,022,302 |
|
|
|
89,922,088 |
|
|
|
86,015,702 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FORTRESS TRANSPORTATION AND
INFRASTRUCTURE INVESTORS LLCCONSOLIDATED BALANCE
SHEETS (Unaudited)(Dollar amounts in thousands, except per
share data)
|
December 31, |
|
2021 |
|
2020 |
Assets |
|
|
|
Cash and cash equivalents |
$ |
188,078 |
|
|
$ |
121,703 |
|
Restricted cash |
|
251,983 |
|
|
|
39,715 |
|
Accounts receivable, net |
|
175,225 |
|
|
|
91,691 |
|
Leasing equipment, net |
|
1,891,649 |
|
|
|
1,635,259 |
|
Operating lease right-of-use assets, net |
|
75,344 |
|
|
|
62,355 |
|
Finance leases, net |
|
7,583 |
|
|
|
6,927 |
|
Property, plant, and equipment, net |
|
1,555,857 |
|
|
|
964,363 |
|
Investments |
|
77,325 |
|
|
|
146,515 |
|
Intangible assets, net |
|
98,699 |
|
|
|
18,786 |
|
Goodwill |
|
257,137 |
|
|
|
122,735 |
|
Other assets |
|
284,974 |
|
|
|
177,928 |
|
Total assets |
$ |
4,863,854 |
|
|
$ |
3,387,977 |
|
|
|
|
|
Liabilities |
|
|
|
Accounts payable and accrued liabilities |
$ |
202,669 |
|
|
$ |
113,185 |
|
Debt, net |
|
3,220,211 |
|
|
|
1,904,762 |
|
Maintenance deposits |
|
106,836 |
|
|
|
148,293 |
|
Security deposits |
|
40,149 |
|
|
|
37,064 |
|
Operating lease liabilities |
|
73,594 |
|
|
|
62,001 |
|
Other liabilities |
|
96,295 |
|
|
|
23,351 |
|
Total liabilities |
$ |
3,739,754 |
|
|
$ |
2,288,656 |
|
|
|
|
|
Commitments and contingencies |
|
|
|
|
|
|
|
Equity |
|
|
|
Common shares ($0.01 par value per share; 2,000,000,000 shares
authorized; 99,180,385 and 85,617,146 shares issued and outstanding
as of December 31, 2021 and 2020, respectively) |
$ |
992 |
|
|
$ |
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 December 31, 2021 and 2020, respectively) |
|
133 |
|
|
|
91 |
|
Additional paid in capital |
|
1,411,940 |
|
|
|
1,130,106 |
|
Accumulated deficit |
|
(132,392 |
) |
|
|
(28,158 |
) |
Accumulated other comprehensive loss |
|
(156,381 |
) |
|
|
(26,237 |
) |
Shareholders' equity |
|
1,124,292 |
|
|
|
1,076,658 |
|
Non-controlling interest in equity of consolidated
subsidiaries |
|
(192 |
) |
|
|
22,663 |
|
Total equity |
$ |
1,124,100 |
|
|
$ |
1,099,321 |
|
Total liabilities and equity |
$ |
4,863,854 |
|
|
$ |
3,387,977 |
|
|
FORTRESS TRANSPORTATION AND
INFRASTRUCTURE INVESTORS LLCCONSOLIDATED
STATEMENTS OF CASH FLOWS (Unaudited)(Dollar amounts in
thousands, unless otherwise noted)
|
Year Ended December 31, |
|
2021 |
|
2020 |
Cash flows from operating activities: |
|
|
|
Net loss |
$ |
(130,706 |
) |
|
$ |
(103,692 |
) |
Adjustments to reconcile net loss to cash (used in) provided by
operating activities: |
|
|
|
Equity in losses of unconsolidated entities |
|
12,734 |
|
|
|
5,039 |
|
Gain on sale of subsidiaries |
|
— |
|
|
|
(1,331 |
) |
(Gain) loss on sale of assets, net |
|
(49,031 |
) |
|
|
308 |
|
Security deposits and maintenance claims included in earnings |
|
(39,067 |
) |
|
|
(6,362 |
) |
Loss on extinguishment of debt |
|
3,254 |
|
|
|
11,667 |
|
Equity-based compensation |
|
4,038 |
|
|
|
2,325 |
|
Depreciation and amortization |
|
201,756 |
|
|
|
172,400 |
|
Asset impairment |
|
10,463 |
|
|
|
33,978 |
|
Change in deferred income taxes |
|
(2,057 |
) |
|
|
(5,851 |
) |
Change in fair value of non-hedge derivatives |
|
(2,220 |
) |
|
|
181 |
|
Amortization of lease intangibles and incentives |
|
27,978 |
|
|
|
30,346 |
|
Amortization of deferred financing costs |
|
21,723 |
|
|
|
7,315 |
|
Bad debt expense |
|
12,953 |
|
|
|
3,595 |
|
Other |
|
(440 |
) |
|
|
1,502 |
|
Change in: |
|
|
|
Accounts receivable |
|
(88,872 |
) |
|
|
(59,734 |
) |
Other assets |
|
(30,789 |
) |
|
|
3,660 |
|
Accounts payable and accrued liabilities |
|
25,079 |
|
|
|
(5,258 |
) |
Management fees payable to affiliate |
|
1,042 |
|
|
|
(20,622 |
) |
Other liabilities |
|
118 |
|
|
|
(6,360 |
) |
Net cash (used in) provided by operating
activities |
|
(22,044 |
) |
|
|
63,106 |
|
|
|
|
|
Cash flows from investing activities: |
|
|
|
Investment in unconsolidated entities |
|
(54,655 |
) |
|
|
(4,690 |
) |
Principal collections on finance leases |
|
7,387 |
|
|
|
13,823 |
|
Acquisition of business, net of cash acquired |
|
(627,090 |
) |
|
|
— |
|
Acquisition of leasing equipment |
|
(572,624 |
) |
|
|
(321,606 |
) |
Acquisition of property, plant and equipment |
|
(157,332 |
) |
|
|
(264,829 |
) |
Acquisition of lease intangibles |
|
(24,017 |
) |
|
|
1,997 |
|
Investment in convertible promissory notes |
|
(10,000 |
) |
|
|
— |
|
Purchase deposit for aircraft and aircraft engines |
|
(13,658 |
) |
|
|
(8,343 |
) |
Proceeds from sale of leasing equipment |
|
158,927 |
|
|
|
72,175 |
|
Proceeds from sale of property, plant and equipment |
|
4,494 |
|
|
|
— |
|
Receipt of deposits for sale of aircraft and engine |
|
600 |
|
|
|
— |
|
Return of purchase deposits |
|
1,010 |
|
|
|
2,350 |
|
|
|
|
|
|
|
|
|
Net cash used in investing activities |
$ |
(1,286,958 |
) |
|
$ |
(509,123 |
) |
|
|
|
|
FORTRESS TRANSPORTATION AND
INFRASTRUCTURE INVESTORS LLCCONSOLIDATED
STATEMENTS OF CASH FLOWS (Unaudited)(Dollar amounts in
thousands, unless otherwise noted)
|
Year Ended December 31, |
|
2021 |
|
2020 |
Cash flows from financing activities: |
|
|
|
Proceeds from debt |
$ |
2,894,127 |
|
|
$ |
1,340,981 |
|
Repayment of debt |
|
(1,553,231 |
) |
|
|
(852,197 |
) |
Payment of deferred financing costs |
|
(52,739 |
) |
|
|
(28,243 |
) |
Receipt of security deposits |
|
8,770 |
|
|
|
3,242 |
|
Return of security deposits |
|
(1,201 |
) |
|
|
(4,655 |
) |
Receipt of maintenance deposits |
|
31,507 |
|
|
|
33,369 |
|
Release of maintenance deposits |
|
(20,724 |
) |
|
|
(15,712 |
) |
Proceeds from issuance of common shares, net of underwriter's
discount |
|
323,124 |
|
|
|
— |
|
Proceeds from issuance of preferred shares, net of underwriter's
discount and issuance costs |
|
101,200 |
|
|
|
19,694 |
|
Settlement of equity-based compensation |
|
(421 |
) |
|
|
(120 |
) |
Cash dividends - common shares |
|
(118,009 |
) |
|
|
(113,572 |
) |
Cash dividends - preferred shares |
|
(24,758 |
) |
|
|
(17,869 |
) |
Net cash provided by financing activities |
|
1,587,645 |
|
|
|
364,918 |
|
|
|
|
|
Net increase (decrease) in cash and cash equivalents and
restricted cash |
|
278,643 |
|
|
|
(81,099 |
) |
Cash and cash equivalents and restricted cash, beginning of
period |
|
161,418 |
|
|
|
242,517 |
|
Cash and cash equivalents and restricted cash, end of
period |
$ |
440,061 |
|
|
$ |
161,418 |
|
|
|
|
|
Supplemental disclosure of cash flow
information: |
|
|
|
Cash paid for interest, net of capitalized interest |
$ |
142,200 |
|
|
$ |
71,637 |
|
Cash paid for taxes |
|
402 |
|
|
|
— |
|
|
|
|
|
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 (loss) 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 and years ended December
31, 2021 and 2020:
|
Three Months Ended December 31 |
|
Year Ended December 31, |
(in thousands) |
2021 |
|
2020 |
|
2021 |
|
2020 |
Net loss attributable to shareholders from continuing
operations |
$ |
(19,047 |
) |
|
$ |
(60,523 |
) |
|
$ |
(128,992 |
) |
|
$ |
(106,370 |
) |
Add: Provision for (benefit from) income taxes |
|
908 |
|
|
|
429 |
|
|
|
(1,057 |
) |
|
|
(5,905 |
) |
Add: Equity-based compensation expense |
|
757 |
|
|
|
1,002 |
|
|
|
4,038 |
|
|
|
2,325 |
|
Add: Acquisition and transaction expenses |
|
8,769 |
|
|
|
571 |
|
|
|
21,941 |
|
|
|
9,868 |
|
Add: Losses on the modification or extinguishment of debt and
capital lease obligations |
|
— |
|
|
|
6,943 |
|
|
|
3,254 |
|
|
|
11,667 |
|
Add: Changes in fair value of non-hedge derivative instruments |
|
(241 |
) |
|
|
— |
|
|
|
(2,220 |
) |
|
|
181 |
|
Add: Asset impairment charges |
|
7,415 |
|
|
|
19,587 |
|
|
|
10,463 |
|
|
|
33,978 |
|
Add: Incentive allocations |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Add: Depreciation & amortization expense (1) |
|
63,112 |
|
|
|
52,809 |
|
|
|
229,734 |
|
|
|
202,746 |
|
Add: Interest expense |
|
46,042 |
|
|
|
26,647 |
|
|
|
171,036 |
|
|
|
98,206 |
|
Add: Pro-rata share of Adjusted EBITDA from unconsolidated entities
(2) |
|
18,031 |
|
|
|
1,375 |
|
|
|
27,892 |
|
|
|
1,208 |
|
Less: Equity in losses (earnings) of unconsolidated entities |
|
2,874 |
|
|
|
(406 |
) |
|
|
12,734 |
|
|
|
5,039 |
|
Less: Non-controlling share of Adjusted EBITDA (3) |
|
(3,802 |
) |
|
|
(2,231 |
) |
|
|
(12,508 |
) |
|
|
(9,637 |
) |
Adjusted EBITDA (non-GAAP) |
$ |
124,818 |
|
|
$ |
46,203 |
|
|
$ |
336,315 |
|
|
$ |
243,306 |
|
______________________________ |
(1) |
Includes the following items for the three months ended December
31, 2021 and 2020: (i) depreciation and amortization expense of
$56,482 and $45,857, (ii) lease intangible amortization of $1,777
and $731 and (iii) amortization for lease incentives of $4,853 and
$6,221, respectively. |
|
Includes the following items for the years ended December 31, 2021
and 2020: (i) depreciation and amortization expense of $201,756 and
$172,400, (ii) lease intangible amortization of $4,993 and $3,747
and (iii) amortization for lease incentives of $22,985 and $26,599,
respectively. |
(2) |
Includes the following items for the three months ended December
31, 2021 and 2020: (i) net (loss) income of $(2,906) and $158,
(ii) interest expense of $4,785 and $290,
(iii) depreciation and amortization expense of $5,822 and
$1,716, (iv) acquisition and transaction expense of $104 and $48,
(v) changes in fair value of non-hedge derivative instruments of
$7,325 and $(837), (vi) asset impairment of $2,122 and $0 and (vii)
equity-based compensation of $779 and $0, respectively. |
|
Includes the following items for the years ended December 31, 2021
and 2020: (i) net loss of $(13,242) and $(5,435),
(ii) interest expense of $5,612 and $1,138,
(iii) depreciation and amortization expense of $12,643 and
$5,513, (iv) acquisition and transaction expense of $104 and $581,
(v) changes in fair value of non-hedge derivative instruments of
$19,850 and $(589), (vi) asset impairment of $2,146 and $0 and
(vii) equity-based compensation of $779 and $0, respectively. |
(3) |
Includes the following items for the three months ended December
31, 2021 and 2020: (i) equity-based compensation of $131 and $178,
(ii) provision for income taxes of $16 and $15, (iii) interest
expense of $1,430 and $472, (iv) depreciation and amortization
expense of $2,234 and $1,566 and (v) changes in fair value of
non-hedge derivative instruments of $(9) and $0, respectively. |
|
Includes the following items for the years ended December 31, 2021
and 2020: (i) equity-based compensation of $751 and $374, (ii)
provision for income taxes of $52 and $59, (iii) interest expense
of $3,370 and $2,025, (iv) depreciation and amortization expense of
$8,411 and $6,149, (v) changes in fair value of non-hedge
derivative instruments of $(76) and $38 and (vi) loss on
extinguishment of debt of $0 and $992, 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 years ended December 31, 2021 and 2020:
|
Year Ended December 31, |
(in thousands) |
2021 |
|
2020 |
Net Cash (Used in) Provided by Operating
Activities |
$ |
(22,044 |
) |
|
$ |
63,106 |
|
Add: Principal Collections on
Finance Leases |
7,387 |
|
|
13,823 |
|
Add: Proceeds from Sale of
Assets |
163,421 |
|
|
72,175 |
|
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 |
93,422 |
|
|
88,314 |
|
Funds Available for
Distribution (FAD) |
$ |
242,186 |
|
|
$ |
237,418 |
|
______________________________ |
(1) |
Required payments on debt obligations for the year ended
December 31, 2021 exclude repayments of $650,000 for the
Bridge Loan Agreement, $500,527 for the Revolving Credit Facility
and $402,704 for the Senior Notes due 2022, and for the year ended
December 31, 2020 exclude repayments of $306,206 for the
Senior Notes due 2022, $270,000 for the Revolving Credit Facility,
$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, all of which were voluntary
refinancings as repayments of these amounts were not required at
such time. |
|
|
The following table sets forth a reconciliation
of FAD to Net Cash Used in Operating Activities for the three
months ended December 31, 2021:
|
Three Months Ended December 31, 2021 |
(in thousands) |
Equipment Leasing |
|
Infrastructure |
|
Corporate and Other |
|
Total |
Funds Available for Distribution (FAD) |
$ |
161,247 |
|
|
$ |
11,033 |
|
|
$ |
(52,193 |
) |
|
$ |
120,087 |
|
Less: Principal Collections on Finance Leases |
|
|
|
|
|
|
(5,680 |
) |
Less: Proceeds from Sale of Assets |
|
|
|
|
|
|
(84,958 |
) |
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 |
|
|
|
|
|
|
(30,785 |
) |
Net Cash Used in Operating Activities |
|
|
|
|
|
|
$ |
(1,336 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following table sets forth a reconciliation
of FAD to Net Cash Used in Operating Activities for the year ended
December 31, 2021:
|
Year Ended December 31, 2021 |
(in thousands) |
Equipment Leasing |
|
Infrastructure |
|
Corporate and Other |
|
Total |
Funds Available for Distribution (FAD) |
$ |
428,536 |
|
|
$ |
4,474 |
|
|
$ |
(190,824 |
) |
|
$ |
242,186 |
|
Less: Principal Collections on Finance Leases |
|
|
|
|
|
|
(7,387 |
) |
Less: Proceeds from Sale of Assets |
|
|
|
|
|
|
(163,421 |
) |
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 |
|
|
|
|
|
|
(93,422 |
) |
Net Cash Used in Operating Activities |
|
|
|
|
|
|
$ |
(22,044 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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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