Fortress Transportation and Infrastructure Investors LLC

Transcription

1 Frtress Transprtatin and Infrastructure Investrs LLC JP Mrgan Aviatin, Transprtatin, and Industrials Cnference March 5, 2019

2 Disclaimers IN GENERAL. This disclaimer applies t this dcument and the verbal r written cmments f any persn presenting it. This dcument, taken tgether with any such verbal r written cmments, is referred t herein as the Presentatin. FORWARD-LOOKING STATEMENTS. Certain statements in this Presentatin may cnstitute frward-lking statements within the meaning f the Private Securities Litigatin Refrm Act f 1995, f Frtress Transprtatin and Infrastructure Investrs LLC (referred t in this Presentatin as FTAI, the Cmpany, r we ), including withut limitatin, ability t achieve key investment bjectives, expansin and grwth pprtunities, pipeline activity and investment f existing cash, ability t successfully clse deals fr which we have letters f intent r LOIs, actual results as cmpared t annualized data, expectatins regarding additinal FAD and/r EBITDA frm investments, grwth f and ability t expand Jeffersn Terminal, CMQR, Repaun and Lng Ridge, whether equipment will be able t be leased including vessels within ur Offshre Energy segment, cmpletin f new infrastructure and cmmencement f new peratins within the Infrastructure business, bank brrwings and future debt and leverage capacity, financing activities and ther such matters. These statements are based n management s current expectatins, estimates and beliefs and are subject t a number f trends and uncertainties that culd cause actual results t differ materially frm thse described in the frward-lking statements, many f which are beynd ur cntrl. FTAI can give n assurance that its expectatins will be attained. Accrdingly, yu shuld nt place undue reliance n any frward-lking statements made in this Presentatin. Fr a discussin f sme f the risks and imprtant factrs that culd affect such frward-lking statements, see the sectins entitled Risk Factrs and Management s Discussin and Analysis f Financial Cnditin and Results f Operatins in the Cmpany s mst recent annual reprt n Frm 10-K and quarterly reprt n Frm 10-Q (when available) and ther filings with the U.S. Securities and Exchange Cmmissin, which are included n the Cmpany s website ( In additin, new risks and uncertainties emerge frm time t time, and it is nt pssible fr the Cmpany t predict r assess the impact f every factr that may cause its actual results t differ frm thse cntained in any frward-lking statements. Such frward-lking statements speak nly as f the date f this Presentatin. The Cmpany expressly disclaims any bligatin t release publicly any updates r revisins t any frward-lking statements cntained herein t reflect any change in the Cmpany's expectatins with regard theret r change in events, cnditins r circumstances n which any statement is based. PAST PERFORMANCE. Past perfrmance is nt a reliable indicatr f future results and shuld nt relied upn fr any reasn. Annualized data is presented fr illustrative purpses nly and shuld nt be cnsidered indicative f future perfrmance r actual results fr any perid. NO OFFER; NO RELIANCE. This Presentatin is fr infrmatinal purpses nly and des nt cnstitute an ffer t sell, r a slicitatin f an ffer t buy, any security and may nt be relied upn in cnnectin with the purchase r sale f any security. Any such ffer wuld nly be made by means f frmal dcuments, the terms f which wuld gvern in all respects. Yu shuld nt rely n this Presentatin as the basis upn which t make any investment decisin. NON-GAAP FINANCIAL INFORMATION. This Presentatin includes infrmatin based n financial measures that are nt recgnized under generally accepted accunting principles (GAAP), such as Adjusted Net Incme, Adjusted EBITDA, and FAD. Yu shuld use nn GAAP infrmatin in additin t, and nt as an alternative t, financial infrmatin prepared in accrdance with GAAP. See Recnciliatin and Glssary in the Appendix t this Presentatin fr recnciliatins t the mst cmparable GAAP measures and an explanatin f each f ur nn-gaap measures. Our nn-gaap measures may nt be identical r cmparable t measures with the same name presented by ther cmpanies. Recnciliatins f frward-lking nn- GAAP financial measures t their mst directly cmparable GAAP financial measures are nt included in this presentatin because the mst directly cmparable GAAP financial measures are nt available n a frward-lking basis withut unreasnable effrt. 1

3 Grwth Incme FTAI Overview Owns and acquires high quality transprtatin equipment and infrastructure assets Diversified prtfli acrss the aviatin, energy, prt and rail sectrs Cmbine incme & grwth thrugh a mix f equipment & infrastructure Tw Primary Business Units Bk Equity Cntributin (3) Industry-leading aviatin leasing platfrm Equipment Leasing (1) $1,277mm bk equity Own and lease 212 aircraft and engines Q annualized Adj. EBITDA f ~$291mm (2) Significant cntracted cash flws Infrastructure 32.5% Infrastructure (4) Substantial asset value acrss gegraphies and asset types with significant scarcity value Jeffersn Terminal Aviatin Leasing 59.9% Nn- Aviatin Leasing 7.5% $614mm bk equity Central Maine & Quebec Railway Repaun Prt & Rail Terminal Lng Ridge Energy Terminal Aviatin Leasing Infrastructure Nn-Aviatin Leasing $1,132mm $614mm (4) $144mm (5) 1) Equipment Leasing business cnsists f Aviatin Leasing, Offshre Energy, and Shipping Cntainers segments. Bk equity is calculated as ttal equity less nn-cntrlling equity interest in equity f cnslidated subsidiaries as f December 31, ) Excludes gain n sale f assets; Annualized Adjusted EBITDA is a nn-gaap measure. Please see Disclaimers at the beginning f the Presentatin. Please refer t appendix slide Aviatin Annualized Adj. EBITDA and Net Incme Recnciliatin fr mre detail. 3) Excludes nn-cntrlling equity interest and Crprate. 4) Infrastructure business cnsists f Jeffersn Terminal, Prts & Terminals, and Railrad segments. Bk equity is calculated as ttal equity less nn-cntrlling equity interest in equity f cnslidated subsidiaries as f December 31, Includes cntributin frm certain subsidiaries classified as Unrestricted Subsidiaries under FTAI s revlver and indentures gverning its existing senir ntes. 5) Cnsists f cntributin frm certain subsidiaries classified as Unrestricted Subsidiaries under FTAI s revlver and indentures gverning its existing senir ntes. 2

4 Aviatin: A Differentiated Mdel Engines the Key! (1) Engines and Aircraft fr Dividend Cverage Engine leasing cre cmpetency Annualized Adjusted EBITDA Return n Equity (2) f 27.1% N debt n prtfli 70 passenger aircraft Aviatin Leasing 142 cmmercial jet engines Apprximately $150.0 millin f LOIs as f December 31, 2018 Team, capital structure, fcus = sustainable advantage becming a brand Sharehlders equity f $1.1 billin 1) As f December 31, ) Adjusted EBITDA is a nn-gaap measure. Annualized Adjusted EBITDA is Annualized Adjusted EBITDA Return n Equity excluding gain n sale f assets, fr Q Annualized data is presented fr illustrative purpses nly, and shuld nt be cnsidered indicative f future perfrmance r actual results fr any perid. Please refer t the Aviatin Leasing Histrical Returns and Recnciliatin f Nn GAAP Measures sectins, included in the Appendix f the Cmpany s Q Earnings Supplement psted n the Cmpany s website, fr a recnciliatin t the mst cmparable GAAP measure. 3

5 CFM56-5B/7B Engine Market Overview and Opprtunity Largest engine market ever with ~22,000 engines (1) By 2020 aftermarket engines will surpass thse under Pwer By Hur ( PBH ) cntracts In 10 years ver 90% f current engines will exit their initial PBH cntracts Cst f CFM56-5B/7B engine shp visits expected t duble in 10 years FTAI has the ptential t generate meaningful EBITDA cntributin per shp visit (2) 5B/7B Engine Market (1) Average After Market Shp Visit Cst (1) Aftermarket PBH $ in thusands 25,000 20,000 22,418 22,408 22,353 22,038 21,111 19, LLPs (3) $1,814 $2,065 $2,350 $2,676 $3,047 $3,469 15,000 10,000 Airfils $2,646 $3,001 $3,404 $3,861 $4,379 $4,967 5, Labr $445 $467 $490 $514 $539 $565 PBH 11,209 10,355 8,528 6,275 3, After Market 11,209 12,053 13,825 15,763 17,436 18,662 Ttal $4,905 $5,533 $6,244 $7,051 $7,965 $9,001 After Market Overhauls (4) 2,242 2,411 2,765 3,153 3,487 3,732 1) Per 2017 MBA aviatin reprt. 2) Based n management s estimates. Actuals may vary. 3) Life Limited Parts. 4) Estimated annual after market verhauls; assumes 5 year mean time between remval ( MTBR ) f after market engines. 4

6 Existing Infrastructure Investments Assets with multiple grwth avenues Jeffersn Terminal Terminal in Beaumnt, Texas, ne f Nrth America s largest crude il refining regins Currently handles crude, ethanl and refined prducts destined fr Mexic Lcated near 6 majr refineries with 2.2 mm b/d capacity Strategically lcated t serve the Gulf cast with internatinal exprt capabilities Rare Class I rail cnnectivity (UP, BNSF, KC) Sle handler f liquid hydrcarbns in Beaumnt CMQR Shrt line railrad frm Mntreal t Maine Acquired ut f bankruptcy 480 miles f wned track ~25,000 annual carlads Imprving undermanaged assets Experienced management team driving rganic grwth Evaluating industrial develpment pprtunities alng the railrad 5

7 Additinal Infrastructure Opprtunities Assets under develpment Repaun Prt 1,630 acre deep-water seaprt and lgistics hub On the Delaware River near Philadelphia Active industrial market Liquid strage lgistics and warehuse facility Water Depth: 40 Rail cnnectivity t Cnrail Access t I-295 / I-95 Lng Ridge Energy Terminal 1,660 acre industrial prt and rail facility Heart f the Marcellus and Utica Currently dry bulk strage and lgistics facility Existing site infrastructure, cnnectivity, and access t lw-price gas Permitting 485 MW gas-fired pwer plant Ptential fr NGL lgistical facility and integratin with Repaun 6

8 Capital Structure & Financing Strategy Cnservative apprach t leverage Leverage f apprximately 54.0% (1) f ttal capital Ttal bk value attributable t FTAI sharehlders is apprximately $1.0 billin, r $11.86 per share (2) ($s in in millins) September December 31, 30, Cash & Cash Equivalents $99.6 Ttal Debt (3) $1,237.3 Sharehlders Equity $997.4 Nn-cntrlling Interest 56.4 Ttal Equity $1,053.8 Ttal Capitalizatin $2,291.1 Debt/Ttal Capital 54.0% 1) As f December 31, ) Bk value per share calculatin based n $997.4mm Sharehlders Equity divided by 84.1mm shares utstanding at December 31, ) Ttal debt is net f apprximately $14.5mm f deferred financing csts; grss debt utstanding was $1,251.9mm at December 31,

9 FTAI: Summary (1) 1. Aviatin: Grwing prtfli generating significant cntracted cash flw t cver dividend. 2. Infrastructure: Attractive, well lcated, Nrth American prt and railrad terminals with multiple pprtunities t grw ver many years. (2) Valuatin 2019 Dividend Yield Sensitivity 10.0% 7.5% 5.0% Implied Stck Price $13.20 $17.60 $26.40 % Change (3) -18% 10% 65% Bk Value Multiple Sensitivity 2.0x 1.5x 1.0x Implied Stck Price $23.73 $17.80 $11.87 % Change (3) 48% 11% -26% (1) As f February 28, Fr illustrative purpses nly. This presentatin des nt cnstitute a recmmendatin r ffer t purchase r sell shares f FTAI. Please see Disclaimers at the beginning f this presentatin. (2) See Disclaimers at the beginning f the Presentatin. (3) Cmpared against February 28, 2019 stck price f $