Market Overview

FTAI Reports Third Quarter 2019 Results, Dividend of $0.33 per Common Share

Share:

NEW YORK, Oct. 31, 2019 (GLOBE NEWSWIRE) -- Fortress Transportation and Infrastructure Investors LLC (NYSE:FTAI) (the "Company") today reported financial results for the three months ended September 30, 2019. The Company's consolidated 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 Q3'19    
Net Cash Provided by Operating Activities $ 34,601    
Net Income Attributable to Shareholders $ 25,671    
Basic and Diluted Earnings per Common Share $ 0.30    
       
Funds Available for Distribution ("FAD") (1) $ 120,741    
Adjusted EBITDA(1) $ 114,142    

________________________________
(1)  For definitions and reconciliations of Non-GAAP measures, please refer to the exhibit to this press release.

For the third quarter of 2019, our total FAD was $120.7 million. This amount includes $185.7 million from aviation leasing activities, offset by $(32.0) million and $(32.9) million from infrastructure and corporate and other activities, respectively.

"We just put up record numbers in both net income and adjusted EBITDA," said Joe Adams, FTAI's CEO.  "We see this momentum in profitability and cash flow continuing into 2020."

Third Quarter Cash Dividends

On October 31, 2019, 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 September 30, 2019, payable on November 26, 2019 to the holders of record on November 15, 2019.

On October 31, 2019, the Board also declared a cash dividend on its Fixed-to-Floating Rate Series A Cumulative Perpetual Redeemable Preferred Shares of $0.53281 per share for the quarter ended September 30, 2019, payable on December 16, 2019 to the holders of record on December 2, 2019.

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, November 1, 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 Third 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, November 1, 2019 through 10:00 A.M. Friday, November 8, 2019 at 1-855-859-2056 (from within the U.S.) or 1-404-537-3406 (from outside of the U.S.), Passcode: 3777558.

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, including, but not limited to, statements regarding the Company's continued profitability and cash flow momentum. 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 Andreini
Investor Relations
Fortress Transportation and Infrastructure Investors LLC
(212) 798-6128
aandreini@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 Series A preferred dividend declared in October 2019 will be treated as a partnership distribution and guaranteed payment, 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) $ 0.14500  
U.S. Dividend Income(2) $  
Income Not from U.S. Sources(3) $ 0.18500  
Distribution Per Share  $ 0.33000  


Series A Preferred Distribution Components  
Guaranteed Payments(4) $ 0.53281  
Distribution Per Share  $ 0.53281  

(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) 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, unless otherwise noted)

    Three Months Ended September 30,   Nine Months Ended September 30,
    2019   2018   2019   2018
Revenues                
Equipment leasing revenues   $ 87,259     $ 70,890     $ 238,911     $ 186,004    
Infrastructure revenues   74,962     30,265     206,942     55,974    
Total revenues   162,221     101,155     445,853     241,978    
                 
Expenses                
Operating expenses   89,368     41,667     244,049     96,839    
General and administrative   6,284     4,012     15,313     12,171    
Acquisition and transaction expenses   5,618     1,460     9,400     4,734    
Management fees and incentive allocation to affiliate   7,378     3,846     16,926     12,080    
Depreciation and amortization   43,744     34,422     125,877     96,853    
Interest expense   25,488     15,142     72,263     39,870    
Total expenses   177,880     100,549     483,828     262,547    
                 
Other income (expense)                
Equity in losses of unconsolidated entities   (974 )   (442 )   (1,527 )   (598 )  
Gain on sale of equipment, net   37,061     262     61,416     5,253    
Interest income   121     111     452     361    
Other income   1,131     737     3,465     2,074    
Total other income   37,339     668     63,806     7,090    
                 
Income (loss) before income taxes   21,680     1,274  
View Comments and Join the Discussion!