Fortress Transportation and Infrastructure Investors LLC (NYSE:FTAI) Q2 2020 Earnings Conference Call - Final Transcript

Jul 31, 2020 • 08:00 am ET


Fortress Transportation and Infrastructure Investors LLC (NYSE:FTAI) Q2 2020 Earnings Conference Call - Final Transcript


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Ladies and gentlemen, thank you for standing by. It is now my pleasure to introduce your, Mr. Alan Andreini. Your line is open.

Alan Andreini

Thank you, Sidney. I would like to welcome you to the Fortress Transportation and Infrastructure Second Quarter 2020 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 earnings 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 reports filed with the SEC.

Now, I would like to turn the call over to Joe.

Joseph P. Adams Jr.

Thank you, Alan. And welcome everybody to today's call for the second quarter 2020 results. To start, I'm pleased to announce our 21st dividend as a public company and our 36th consecutive dividend since inception. The dividend of $0.33 per share will be paid on August 31, based on shareholder record date of August 17.

Now, let's start with the numbers. The key metrics for us are adjusted EBITDA and FAD or funds available for distribution. Adjusted EBITDA for Q2 2020 was $66.5 million compared to Q1 2020 of $72 million and Q2 of 2019 of $92.7 million. On a normalized basis, excluding the gains or losses from the sales, Q2 2020 adjusted EBITDA was $65.7 million compared to $73.8 million in Q1 2020 and $70.1 million in Q2 of 2019. FAD was $47.3 million in Q2 2020 versus $96 million in Q1 of 2020 and $86.9 million in Q2 2019. On a normalized basis, excluding sale proceeds and non-recurring items, Q2 2020 FAD was $38.2 million compared to 50.1 million in Q1 of 2020 and $42.7 million in Q2 of 2019. During the second quarter, the $47.3 million FAD number was comprised of $82.1 million from our aviation leasing portfolio, negative $6.7m from our infrastructure businesses, and negative $28.1 million from corporate and other.

Now let's turn to aviation. Aviation had a pretty decent quarter given the circumstances. $77.5 million in Q2 EBITDA, after an estimated $20 million negative impact in Q2 from COVID-19 and further, more than half of the impact resulted from fewer hours and cycles flown, which means the hours in cycles are still available and have significant value.