Fortress Transportation and Infrastructure Investors LLC (NYSE:FTAI) Q4 2019 Earnings Conference Call - Final Transcript

Feb 28, 2020 • 08:00 am ET

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Fortress Transportation and Infrastructure Investors LLC (NYSE:FTAI) Q4 2019 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good morning. My name is Lisa, and I will be your conference operator today. At this time, I would like to welcome everyone to the Fourth Quarter and Year End Fortress Transportation Infrastructure Investors Conference Call. [Operator Instructions]

I would now like to turn the call over to Mr. Alan Andreini. Please go ahead, sir.

Executive
Alan Andreini

Thank you, operator. I would like to welcome you all to the Fortress Transportation and Infrastructure fourth quarter and year-end 2019 earnings call. Joining me here today are Joe Adams, our Chief Executive Officer and Scott Christopher, our Chief Financial Officer. We have posted an investor presentation and 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, including FAD. 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.

Executive
Joseph P. Adams

Thank you, Alan. To start the call, I'm pleased to announce our 19th dividend as a public company and our 34th consecutive dividend since inception. The dividend of $0.33 per share will be paid on March 24 based on a shareholder record date of March 13. The key metrics for us are adjusted EBITDA and FAD or Funds Available for Distribution. Adjusted EBITDA for Q4 2019 was $234 million compared to Q3 2019 of $112 million and Q4 of 2018 of $61.8 million. Note that these figures exclude adjusted EBITDA contribution from the CMQR rail assets as they were sold in Q4 of 2019 and are now classified as discontinued operations. If contribution from discontinued operations had been included, adjusted EBITDA for Q4 2019 would have been $314.7 million compared to $14.1 million in Q3 2019 and $63.1 million in Q4 of 2018.

FAD was $288.6 million in Q4 2019 versus $120.7 million in Q3 2019 and $57.7 million in Q4 of 2018. During the fourth quarter, the $288.6 million FAD number was comprised of $174.2 million from our aviation leasing portfolio, $167.2 million from our infrastructure business and negative $52.8 million from corporate and other. Infrastructure business FAD included $94.1 million from discontinued operations, resulting from the sale of CMQR rail assets during the quarter. Also, the FAD number includes $67.6 million of proceeds from the sale of aviation assets, $150 million of proceeds from the sale