Icahn Enterprises L.P. Q1 2017 Earnings Presentation May 9, 2017
Safe Harbor Statement Forward-Looking Statements and Non-GAAP Financial Measures The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for forward- looking statements we make in this presentation, including statements regarding our future performance and plans for our businesses and potential acquisitions. These forward- looking statements involve risks and uncertainties that are discussed in our filings with the Securities and Exchange Commission, including economic, competitive, legal and other factors. Accordingly, there is no assurance that our expectations will be realized. We assume no obligation to update or revise any forward-looking statements should circumstances change, except as otherwise required by law. This presentation also includes certain non-GAAP financial measures. A reconciliation of such non-GAAP financial measures to the most directly comparable GAAP financial measures can be found in the back of this presentation. 2
Q1 2017 Highlights and Recent Developments Board declared $1.50 quarterly dividend payable in either cash or additional units Net loss attributable to Icahn Enterprises for Q1 2017 was $18 million, compared to a net loss of $837 million for Q1 2016 On December 19, 2016, IEP entered into a definitive agreement to sell ARL to SMBC Rail Services LLC for cash based on a total enterprise value of $3.364 billion (subject to certain adjustments) Initial closing on approximately 29,000 railcars for $2.778 billion expected to close in Q2 2017 For a period of three years thereafter, upon satisfaction of certain conditions, IEP will have an option to sell, and SMBC Rail will have an option to buy, approximately 4,800 additional railcars for approximately $586 million at the time of the initial closing In January 2017, Icahn Enterprises completed the acquisition of all outstanding shares of Federal Mogul not already owned by Icahn Enterprises During Q1, Icahn Enterprises issued approximately $1.2 billion of new senior unsecured notes to refinance its 2017 senior notes that were due to mature in Q1 2017 and completed a $600 million rights offering At the end of Q1, we sold the shuttered Taj Mahal in Atlantic City 3
Consolidated Results Three Months Ended Consolidated Results March 31, ($ millions) 2017 2016 Select Income Statement Data: Revenues $4,677 $3,127 Expenses 4,811 4,720 Loss before income tax expense (134) (1,593) Income tax expense (26) (16) Net loss (160) (1,609) Less: net loss attributable to non controlling interests 142 772 Net loss attributable to Icahn Enterprises ($18) ($837) 4
Financial Performance Net Loss Attributable to Icahn Enterprises Adjusted EBITDA Attributable to Icahn Enterprises $412 ($18) ($70) ($837) Q1 2017 Q1 2016 Three Months Ended March 31, Three Months Ended March 31, ($ in millions) 2017 2016 ($ in millions) 2017 2016 Net (loss) income attributable to Icahn Enterprises Adjusted EBITDA attributable to Icahn Enterprises Investment ($23) ($450) Investment ($9) ($417) Automotive 27 21 Automotive 220 181 Energy 17 (353) Energy 71 32 Metals 2 (6) Metals 7 (6) Railcar 48 36 Railcar 88 97 Gaming (11) 3 Gaming 14 22 Mining 5 (10) Mining 9 (5) Food Packaging 1 3 Food Packaging 8 8 Real Estate 2 4 Real Estate 9 9 Home Fashion (3) - Home Fashion (1) 2 Holding Company (83) (85) Holding Company (4) 7 Adjusted EBITDA attributable to Icahn Net loss attributable to Icahn Enterprises Enterprises ($18) ($837) $412 ($70) 5
Segment: Investment Highlights and Recent Developments Company Description IEP invests its proprietary capital through various Returns of (2.7%) for Q1 2017 private investment funds (the “Funds”) managed From inception in November 2004, the Funds' gross return is approximately by the Investment segment 110.2%, representing an annualized rate of return of approximately 6.2% through March 31, 2017 Fair value of IEP’s interest in the Funds was approximately $1.8 billion as of March 31, 2017 Significant Holdings As of March 31, 2017 (1) Mkt. Value % ($mm) (2) Ownership (3) Company Summary Segment Financial Results $2,850 4.7% Three Months Ended $1,545 13.7% Investment Segment March 31, ($ millions) 2017 2016 $1,358 2.6% Select Income Statement Data: Total revenues ($143) ($908) Adjusted EBITDA (145) (896) $1,330 24.6% Net loss (192) (983) $1,219 6.3% Adjusted EBITDA attrib. to IEP ($9) ($417) Net loss attrib. to IEP (23) (450) (1) Aggregate ownership held directly by the Funds, as well as Carl Icahn and his affiliates. Based on most recent 13F Returns (2.7)% (12.8)% Holdings Reports, 13D flings or other public filings. (2) Based on closing share price as of specified date. (3) Total shares owned as a percentage of common shares issued and outstanding. 6
Segment: Energy Company Description Highlights and Recent Developments CVR Energy, Inc. (NYSE:CVI) operates as a holding CVR Energy Q1 2017 Highlights company that owns majority interests in two ─ Announced Q1 2017 cash dividend of $0.50 per share separate operating subsidiaries: CVR Refining, LP (NYSE:CVRR) and CVR Partners, LP (NYSE:UAN) CVR Refining Q1 2017 Results ─ CVR Refining is an independent petroleum refiner and marketer of high-value transportation fuels in ─ Posted a strong operational performance with a quarterly record for the mid-continent of the United States combined crude oil throughput of 214K barrels per day ─ CVR Partners is a manufacturer of ammonia and ─ Adjusted EBITDA of $115 million compared to $35 million in Q1 2016 (1) urea ammonium nitrate solution fertilizer products ─ No Q1 2017 distribution was declared CVR Partners Q1 2017 Results Summary Segment Financial Results ─ Adjusted EBITDA of $21 million compared to $28 million in Q1 2016 (2) ─ Consolidated average realized plant gate prices for UAN was $160 per ton, Three Months Ended compared to $209 per ton for the Coffeyville facility, for the same period in Energy Segment March 31, 2016 ($ millions) 2017 2016 ─ Announced Q1 2017 cash dividend of $0.02 per share Select Income Statement Data: Net Sales $1,507 $906 Adjusted EBITDA 133 61 Net income (loss) 28 (614) Adjusted EBITDA attrib. to IEP $71 $32 Net income (loss) attrib. to IEP 17 (353) Capital Expenditures $24 $48 7 (1) Refer to CVRR 8-K filed 4/27/17 for the Adjusted EBITDA reconciliations. (2) Refer to UAN 8-K filed 4/27/17 for the Adjusted EBITDA reconciliations.
Segment: Automotive Company Description Highlights and Recent Developments We conduct our Automotive segment through our In January 2017, Icahn Enterprises completed the acquisition of all outstanding shares wholly owned subsidiaries Federal-Mogul LLC of Federal Mogul not already owned by Icahn Enterprises for a total consideration of ("Federal-Mogul") and Icahn Automotive Group LLC approximately $305 million ("Icahn Automotive"), which is the parent company of IEH Auto Parts Holding LLC and The Pep Boys - Manny, Moe and Jack Federal-Mogul is engaged in the manufacture and distribution of automotive parts Icahn Automotive is engaged in the distribution of automotive parts in the aftermarket as well as providing Federal-Mogul automotive services to its customers Q1 2017 net sales were $2.0 billion compared to $1.9 billion in Q1 2016 Higher OE sale, as well as incremental sales from the Interfil and Beck Arnley acquisitions were offset by lower aftermarket sales in North America Operational EBITDA was $217 million compared to $193 million in Q1 2016 Summary Segment Financial Results Issued an aggregate principal amount of € 715 million of notes to repay existing debt Three Months Ended Automotive Segment (1) March 31, ($ millions) 2017 2016 Select Income Statement Data: Icahn Automotive Net Sales $2,477 $2,321 Q1 2017 operating revenue of approximately $637 million Adjusted EBITDA 223 218 Net income 30 28 Completed an acquisition of a 134 location chain in January 2017 Adjusted EBITDA attrib. to IEP $220 $181 Net income attrib. to IEP 27 21 Capital Expenditures $111 $99 (1) Results include Pep Boys effective February 3, 2016 8
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