Print Page     Close Window     

Press Releases

FTAI Reports Third Quarter 2018 Results, Dividend of $0.33 per Common Share

NEW YORK, Nov. 01, 2018 (GLOBE NEWSWIRE) -- Fortress Transportation and Infrastructure Investors LLC (NYSE:FTAI) (the “Company”) today reported financial results for the three months ended September 30, 2018. 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(1) Q3’18
Net Cash Provided by Operating Activities $ 27,263
Net Income Attributable to Shareholders $ 4,578
Basic and Diluted Earnings per Share $ 0.05
   
Funds Available for Distribution (“FAD”) $ 44,715
Adjusted Net Income $ 6,505
Adjusted Net Income per Share $ 0.08
Adjusted EBITDA $ 58,771
     

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

For the third quarter of 2018, our total FAD was $44.7 million. This amount includes $71.6 million from equipment leasing activities, offset by $(8.9) million and $(18.0) million from infrastructure and corporate activities, respectively.

Joe Adams, CEO of FTAI, said, “We just completed an excellent quarter with strong net income and record adjusted EBITDA. In addition, we set a record for return on equity in our aviation business along with record adjusted EBITDA yield while expecting total new aviation investments in 2018 of over $500 million, another record.”(2)

Adams continued, “Strong macro factors are driving increased revenues and long term value creation in our infrastructure segment comprised of four North American port and rail terminals.  The dramatic growth in North American energy infrastructure continues to drive new business at our key strategic locations.”

Third Quarter 2018 Dividend

On November 1, 2018, the Company’s Board of Directors declared a cash dividend of $0.33 per common share for the quarter ended September 30, 2018, payable on November 27, 2018 to the holders of record on November 16, 2018.

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 2, 2018 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 2, 2018 through midnight Friday, November 9, 2018 at 1-855-859-2056 (from within the U.S.) or 1-404-537-3406 (from outside of the U.S.), Passcode: 6094136.

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 expected new aviation investments in 2018 and creation of long term value in our infrastructure segment. 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 Report 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.

________________________________

(2) Aviation “return on equity” and “adjusted EBITDA yield” are non-GAAP measures.  For definitions and reconciliations of these non-GAAP measures, please refer to the investor presentation for the period ended September 30, 2018, posted to our website.


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 dividend declared in November 2018 will be treated as a partnership distribution.  For tax withholding purposes, the per share distribution components are as follows:

Distribution Components  
Non-U.S. Long Term Capital Gain $
U.S. Portfolio Interest Income(1) $ 0.2650
U.S. Dividend Income(2) $
Income Not from U.S. Sources(3) $ 0.0650
Distribution Per Share
$ 0.3300
     

(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 of the Code.

(3) This income is not subject to withholding under §1441 or §1446 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 share and per share data)   Three Months Ended September 30,   Nine Months Ended September 30,
  2018   2017   2018   2017
Revenues                
Equipment leasing revenues   $ 70,890     $ 49,616     $ 186,004     $ 121,387  
Infrastructure revenues   30,265     10,746     55,974     34,842  
Total revenues   101,155     60,362     241,978     156,229  
                 
Expenses                
Operating expenses   41,667     23,688     96,839     66,025  
General and administrative   4,012     3,439     12,171     10,615  
Acquisition and transaction expenses   1,460     1,732     4,734     5,064  
Management fees and incentive allocation to affiliate   3,846     3,771     12,080     11,529  
Depreciation and amortization   34,422     24,784     96,853     62,382  
Interest expense   15,142     8,914     39,870     21,292  
Total expenses   100,549     66,328     262,547     176,907  
                 
Other income (expense)                
Equity in (losses) earnings of unconsolidated entities   (442 )   132     (598 )   (1,461 )
Gain on sale of equipment, net   262     2,709     5,253     6,726  
Loss on extinguishment of debt               (2,456 )
Interest income   111     215     361     582  
Other income   737     2,148     2,074     2,180  
Total other income   668     5,204     7,090     5,571  
                 
Income (loss) before income taxes   1,274     (762 )   (13,479 )   (15,107 )
Provision for income taxes   551     909     1,580     1,585  
Net income (loss)   723     (1,671 )   (15,059 )   (16,692 )
Less:  Net loss attributable to non-controlling interests in consolidated subsidiaries   (3,855 )   (4,669 )   (19,904 )   (13,816 )
Net income (loss) attributable to shareholders   $ 4,578     $ 2,998     $ 4,845     $ (2,876 )
                 
Earnings (loss) per share                
Basic   $ 0.05     $ 0.04     $ 0.06     $ (0.04 )
Diluted   $ 0.05     $ 0.04     $ 0.06     $ (0.04 )
                 
Weighted Average Shares Outstanding:                
Basic   84,708,071     75,770,529     83,178,546     75,765,144  
Diluted   84,709,656     75,770,665     83,179,181     75,765,144  
                         

FORTRESS TRANSPORTATION AND INFRASTRUCTURE INVESTORS LLC

CONSOLIDATED BALANCE SHEETS

    (Unaudited)    
    September 30,   December 31,
(Dollar amounts in thousands, except share and per share data)   2018   2017
Assets        
Cash and cash equivalents   $ 163,145     $ 59,400  
Restricted cash   22,355     33,406  
Accounts receivable, net   50,002     31,076  
Leasing equipment, net   1,284,057     1,074,130  
Finance leases, net   16,950     9,244  
Property, plant, and equipment, net   659,460     489,949  
Investments   42,183     42,538  
Intangible assets, net   35,653     40,043  
Goodwill   116,584     116,584  
Other assets   82,772     59,436  
Total assets   $ 2,473,161     $ 1,955,806  
         
Liabilities        
Accounts payable and accrued liabilities   $ 83,648     $ 68,226  
Debt, net   1,137,867     703,264  
Maintenance deposits   128,877     103,464  
Security deposits   33,921     27,257  
Other liabilities   26,528     18,520  
Total liabilities   $ 1,410,841     $ 920,731  
         
Commitments and contingencies        
         
Equity        
Common shares ($0.01 par value per share; 2,000,000,000 shares authorized; 82,787,466 and 75,771,738 shares issued and outstanding as of September 30, 2018 and December 31, 2017, respectively)   828     758  
Additional paid in capital   1,037,513     985,009  
Accumulated deficit   (33,854 )   (38,699 )
Accumulated other comprehensive income        
Shareholders' equity   1,004,487     947,068  
Non-controlling interest in equity of consolidated subsidiaries   57,833     88,007  
Total equity   1,062,320     1,035,075  
Total liabilities and equity   $ 2,473,161     $ 1,955,806  
                 

FORTRESS TRANSPORTATION AND INFRASTRUCTURE INVESTORS LLC

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

  Nine Months Ended September 30,
(Dollar amounts in thousands) 2018   2017
Cash flows from operating activities:      
Net loss $ (15,059 )   $ (16,692 )
Adjustments to reconcile net loss to net cash provided by operating activities:      
Equity in losses of unconsolidated entities 598     1,461  
Gain on sale of equipment, net (5,253 )   (6,726 )
Security deposits and maintenance claims included in earnings (4,325 )   (60 )
Loss on extinguishment of debt     2,456  
Equity-based compensation 669     695  
Depreciation and amortization 96,853     62,382  
Gain on settlement of liabilities     (1,093 )
Change in current and deferred income taxes 670     551  
Change in fair value of non-hedge derivative 567
  (1,036 )
Amortization of lease intangibles and incentives 17,629     5,193  
Amortization of deferred financing costs 4,164     3,120  
Bad debt expense 1,586     63  
Other 51     566  
Change in:      
Accounts receivable (19,024 )   (7,984 )
Other assets (10,891 )   10,595  
Accounts payable and accrued liabilities 15,198     862  
Management fees payable to affiliate (774 )   (554 )
Other liabilities 3,756     (1,356 )
Net cash provided by operating activities 86,415     52,443  
       
Cash flows from investing activities:      
Investment in notes receivable (912 )    
Investment in unconsolidated entities and available for sale securities (1,115 )   (24,903 )
Principal collections on finance leases 658     347  
Acquisition of leasing equipment (330,492 )   (267,451 )
Acquisition of property, plant and equipment (178,555 )   (86,455 )
Acquisition of lease intangibles (5,039 )   (1,583 )
Purchase deposits for acquisitions (17,350 )   (11,785 )
Proceeds from sale of leasing equipment 30,409     87,093  
Proceeds from sale of property, plant and equipment 78     51  
Return of purchase deposit for aircraft and aircraft engines 240      
Return of deposit on sale of engine (400 )    
Return of capital distributions from unconsolidated entities 872      
Net cash used in investing activities $ (501,606 )   $ (304,686 )
Cash flows from financing activities:      
Proceeds from debt $ 615,239     $ 417,191  
Repayment of debt (181,856 )   (22,623 )
Payment of deferred financing costs (2,686 )   (3,232 )
Receipt of security deposits 7,084     5,826  
Return of security deposits (1,520 )   (3,232 )
Receipt of maintenance deposits 41,808     18,784  
Release of maintenance deposits (11,518 )   (6,111 )
Proceeds from issuance of common shares, net of underwriter's discount 128,451      
Common shares issuance costs (789 )    
Purchase of non-controlling interest shares (3,705 )    
Cash dividends (82,623 )   (75,041 )
Net cash provided by financing activities $ 507,885     $ 331,562  
       
Net increase in cash and cash equivalents and restricted cash 92,694     79,319  
Cash and cash equivalents and restricted cash, beginning of period 92,806     133,496  
Cash and cash equivalents and restricted cash, end of period $ 185,500     $ 212,815  
               

Key Performance Measures

The Chief Operating Decision Maker (“CODM”) utilizes Adjusted Net Income and Adjusted EBITDA as performance measures.

Adjusted Net Income (Loss) is our key performance measure and provides the CODM with the information necessary to assess operational performance, as well as make resource and allocation decisions. Adjusted Net Income (Loss) is defined as net income (loss) attributable to shareholders, 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, and equity in earnings (losses) of unconsolidated entities, (b) to include the impact of cash income tax payments, and our pro-rata share of the Adjusted Net Income (Loss) from unconsolidated entities, and (c) to exclude the impact of the non-controlling share of Adjusted Net Income (Loss). We evaluate investment performance for each reportable segment primarily based on Adjusted Net Income (Loss). We believe that net income (loss) attributable to shareholders, as defined by GAAP, is the most comparable earnings measurement with which to reconcile Adjusted Net Income (Loss).

The following table presents our consolidated reconciliation of net income (loss) attributable to shareholders to Adjusted Net Income for the three and nine months ended September 30, 2018 and 2017:

  Three Months Ended
September 30,
  Nine Months Ended
September 30,
(Dollar amounts in thousands) 2018   2017   2018   2017
Net income (loss) attributable to shareholders $ 4,578     $ 2,998     $ 4,845     $ (2,876 )
Add: Provision for income taxes 551     909     1,580     1,585  
Add: Equity-based compensation expense 232     165     669     695  
Add: Acquisition and transaction expenses 1,460     1,732     4,734     5,064  
Add: Losses on the modification or extinguishment of debt and capital lease obligations             2,456  
Add: Changes in fair value of non-hedge derivative instruments 385     (1,036 )   567     (1,036 )
Add: Asset impairment charges              
Add: Pro-rata share of Adjusted Net Income (Loss) from unconsolidated entities (1) (437 )   86     (593 )   (1,599 )
Add: Incentive allocations (20 )       553      
Less: Cash payments for income taxes (445 )   (438 )   (910 )   (1,033 )
Less: Equity in losses (earnings) of unconsolidated entities 442     (132 )   598     1,461  
Less: Non-controlling share of Adjusted Net Income (Loss) (2) (241 )   (447 )   (241 )   (503 )
Adjusted Net Income $ 6,505     $ 3,837     $ 11,802     $ 4,214  
                               

______________________________________________________________________________________

(1) Includes our proportionate share of the unconsolidated entities’ net income adjusted for the excluded and included items detailed in the table above.

(2) Includes the following items for the three months ended September 30, 2018 and 2017: (i) equity-based compensation of $19 and $43, (ii) provision for income tax of $2 and $(1), and (iii) changes in fair value of non-hedge derivative instruments of $221 and $404 less (iv) cash tax payments of $1 and $(1), respectively. Includes the following items for the nine months ended September 30, 2018 and 2017: (i) equity-based compensation of $96 and $118, (ii) provision for income tax of $10 and $12, and (iii) changes in fair value of non-hedge derivative instruments of $149 and $404, less (iv) cash tax payments of $14 and $31, respectively.

We view Adjusted EBITDA as a secondary measurement to Adjusted Net Income (Loss), which we believe serves as a useful supplement to investors, analysts and management to measure economic performance of deployed revenue generating assets between periods on a consistent basis, and which we believe measures our financial performance and helps identify operational factors that management can impact in the short-term, namely our cost structure and expenses. Adjusted EBITDA may not be comparable to similarly titled measures of other companies because other entities may not calculate Adjusted EBITDA in the same manner.

Adjusted EBITDA is defined as net income (loss) attributable to shareholders, 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 income (loss) attributable to shareholders to Adjusted EBITDA for the three and nine months ended September 30, 2018 and 2017:

  Three Months Ended
September 30,
  Nine Months Ended
September 30,
(Dollar amounts in thousands) 2018   2017   2018   2017
Net income (loss) attributable to shareholders $ 4,578     $ 2,998     $ 4,845     $ (2,876 )
Add: Provision for income taxes 551     909     1,580     1,585  
Add: Equity-based compensation expense 232     165     669     695  
Add: Acquisition and transaction expenses 1,460     1,732     4,734     5,064  
Add: Losses on the modification or extinguishment of debt and capital lease obligations             2,456  
Add: Changes in fair value of non-hedge derivative instruments 385     (1,036 )   567     (1,036 )
Add: Asset impairment charges              
Add: Incentive allocations (20 )       553      
Add: Depreciation and amortization expense (3) 39,162     26,686     114,482     67,575  
Add: Interest expense 15,142     8,914     39,870     21,292  
Add: Pro-rata share of Adjusted EBITDA from unconsolidated entities (4) 402     282     385     (209 )
Less: Equity in losses (earnings) of unconsolidated entities 442     (132 )   598     1,461  
Less: Non-controlling share of Adjusted EBITDA (5) (3,563 )   (2,753 )   (9,175 )   (7,272 )
Adjusted EBITDA (non-GAAP) $ 58,771     $ 37,765     $ 159,108     $ 88,735  
                               

________________________________________________________

(3) Includes the following items for the three months ended September 30, 2018 and 2017: (i) $34,422 and $24,784 of depreciation and amortization expense, (ii) $1,911 and $1,147 of lease intangible amortization, and (iii) $2,829 and $755 of amortization for lease incentives, respectively. Includes the following items for the nine months ended September 30, 2018 and 2017: (i) $96,853 and $62,382 of depreciation and amortization expense, (ii) $5,913 and $3,494 of lease intangible amortization, and (iii) $11,716 and $1,699 of amortization for lease incentives, respectively.

(4) Includes the following items for the three months ended September 30, 2018 and 2017: (i) net (loss) income of $(483) and $86, (ii) interest expense of $97 and $176, and (iii) depreciation and amortization expense of $788 and $20, respectively. Includes the following items for the nine months ended September 30, 2018 and 2017: (i) net loss of $(734) and $(1,599), (ii) interest expense of $303 and $650, and (iii) depreciation and amortization expense of $816 and $740, respectively.

(5) Includes the following items for the three months ended September 30, 2018 and 2017: (i) equity based compensation of $19 and $43, (ii) provision for income taxes of $2 and $(1), (iii) interest expense of $1,512 and $485, (iv) depreciation and amortization expense of $1,809 and $1,822, and (v) changes in fair value of non-hedge derivative instruments of $221 and $404, respectively. Includes the following items for the nine months ended September 30, 2018 and 2017: (i) equity based compensation of $96 and $118, (ii) provision for income taxes of $10 and $12, (iii) interest expense of $3,823 and $1,489, (iv) depreciation and amortization expense of $5,097 and $5,249, and (v) changes in fair value of non-hedge derivative instruments of $149 and $404, respectively.

We use Funds Available for Distribution (“FAD”) in evaluating our ability to meet our 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. We believe FAD is a useful metric for investors and analysts for similar purposes.

We define 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 FAD to Cash from Operating Activities for the nine months ended September 30, 2018 and 2017:

  Nine Months Ended September 30,
(Dollar amounts in thousands) 2018   2017
Net Cash Provided by Operating Activities $ 86,415     $ 52,443  
Add: Principal Collections on Finance Leases 658     347  
Add: Proceeds from sale of assets 30,487     87,144  
Add: Return of Capital Distributions from Unconsolidated Entities 872      
Less: Required Payments on Debt Obligations (1) (6,231 )   (8,368 )
Less: Capital Distributions to Non-Controlling Interest      
Exclude: Changes in Working Capital 11,735     (1,563 )
Funds Available for Distribution (FAD) $ 123,936     $ 130,003  
               

_____________________________________________________

(1) Required payments on debt obligations for the nine months ended September 30, 2018 exclude $25,625 repayment of the Central Maine Québec Railway (“CMQR”) Credit Agreement and $150,000 repayment of the Revolving Credit Facilities, and for the nine months ended September 30, 2017 exclude $100,000 repayment of the Term Loan and $14,255 repayment of the CMQR loan, both of which were voluntary refinancings as repayments of these amounts were not required at such time.

The following tables set forth a reconciliation of FAD to Cash from Operating Activities for the three and nine months ended September 30, 2018:

  Three Months Ended September 30, 2018
(Dollar amounts in thousands) Equipment Leasing   Infrastructure   Corporate   Total
Funds Available for Distribution (FAD) $ 71,609     $ (8,871 )   $ (18,023 )   $ 44,715  
Less: Principal Collections on Finance Leases             (119 )
Less: Proceeds from sale of assets             (3,957
Less: Return of Capital Distributions from Unconsolidated Entities             (872 )
Add: Required Payments on Debt Obligations (1)             3,107  
Add: Capital Distributions to Non-Controlling Interest              
Include: Changes in Working Capital             (15,611 )
Net Cash provided by Operating Activities             $ 27,263  
                   

_____________________________________________________

(1) Required payments on debt obligations for the three months ended September 30, 2018 exclude $7,875 repayment of the CMQR loan and $125,000 repayment of the Revolving Credit Facilities, both of which were voluntary refinancings as repayments of these amounts were not required at such time.

  Nine Months Ended September 30, 2018
(Dollar amounts in thousands) Equipment Leasing   Infrastructure   Corporate   Total
Funds Available for Distribution (FAD) $ 206,853     $ (32,408 )   $ (50,509 )   $ 123,936  
Less: Principal Collections on Finance Leases             (658 )
Less: Proceeds from sale of assets             (30,487
Less: Return of Capital Distributions from Unconsolidated Entities             (872 )
Add: Required Payments on Debt Obligations (2)             6,231  
Add: Capital Distributions to Non-Controlling Interest              
Include: Changes in Working Capital             (11,735 )
Net Cash provided by Operating Activities             $ 86,415  
                   

_____________________________________________________

(2) Required payments on debt obligations for the nine months ended September 30, 2018 exclude $25,625 repayment of the CMQR loan and $150,000 repayment of the Revolving Credit Facilities, both of which were voluntary refinancings as repayments of these amounts were not required at such time.

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 logo

Fortress Transportation and Infrastructure Investors LLC


Copyright © 2015 Fortress Transportation and Infrastructure Investors Ltd.,