Fortress Transportation and Infrastructure Investors LLC (FTAI) Q1 2021 Earnings

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Fortress Transportation and Infrastructure Investors LLC (NYSE:FTAI)
Q1 2021 Earnings Call
Apr 30, 2021, 8:00 a.m. ET

Contents:

  • Prepared Remarks
  • Questions and Answers
  • Call Participants

Prepared Remarks:

Operator

Good day and thank you for standing by and welcome to the Q1 2021 Fortress Transportation and Infrastructure Investors LLC Earnings Conference Call. [Operator Instruction] I would now like to turn the conference over to your host, Mr. Alan Andreini. Please go ahead, sir.

Alan AndreiniHead of Investor Relations

Thank you, Patricia. I would like to welcome you to the Fortress Transportation and Infrastructure First Quarter 2021 Earnings Call. Joining me here today are Joe Adams, our Chief Executive Officer; Scott Christopher, our Chief Financial Officer; and Bo Woolley [Phonetic], the CEO of our Long Ridge Energy Terminal. We have posted an investor presentation in our press release on our website, which we encourage you to download, if you have not already done so. Also, please note that this call is open to the public in listen-only mode and is being webcast. In addition, we will be discussing some non-GAAP financial measures during the call today. The reconciliation of those measures to the most directly comparable GAAP measures can be found in the earning supplement. Before I turn the call over to Joe, I would like to point out that certain statements made today will be forward-looking statements including regarding future earnings. These statements by their nature are uncertain and may differ materially from actual results. We encourage you to review the disclaimers in our press release and investor presentation regarding non-GAAP financial measures and forward-looking statements and to review the risk factors contained in our quarterly report filed with the SEC. Now I would like to turn the call over to Joe.

Joseph P. AdamChairman of the Board and Chief Executive Officer

Thanks, Alan. To start, I’m pleased to announce our 24th dividend as a public company, and our 39th consecutive dividend since inception. The dividend of $0.33 per share will be paid on May 25 based on a shareholder record date of May 14. Now let’s turn to the numbers. The key metrics for us are adjusted EBITDA and FAD or funds available for distribution. Adjusted EBITDA for Q1 2021 was $47.2 million compared to Q4 2020 of $46.2 million and Q1 2020 of $72 million. FAD was $14.4 million in Q1 2021 versus $54.2 million in Q4 2020 and $96 million in Q1 2020. On a normalized basis excluding sales proceeds and non-recurring items, Q1 2021 FAD was $9.8 million compared to $35.7 million in Q4 2020 and $67.4 million in Q1 2020. During the first quarter, the $14.1 million FAD number was comprised of $60.6 million from our aviation leasing portfolio, negative $3.8 million from our infrastructure businesses and negative $42.4 million from corporate and other.

Now, turning first to aviation, Q1 EBITDA for aviation of $61 million was a slight improvement from Q4 as we expected, but also as we expected, we are seeing a meaningful uptick in activity in April and expect Q2 Aviation EBITDA to exceed $80 million. As an example, we have signed 20 new leases for CFM56 engines of which eight have already been delivered in the last few weeks. 75% of our fleet is 737 NG and A320 CO aircraft and engines, which are flown mostly in domestic shorter haul markets, which are poised for strong rebound by Q3 of this year with many airlines planning flight schedules that are equal to or greater than Q3 of 2019, and and 20% of our fleet is operating in the cargo markets, which continued to experience record high demand. Thus, our fleet is extremely well positioned for the recovery.

Our PMA initiative is progressing well with the second part expected to be formally submitted to the FAA in July or August having had some minor tweaks to the final parts, which are now complete. But the big…



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