Business Context and Reporting Period
This Form 8-K filing by Fortress Transportation and Infrastructure Investors LLC (FTAI) reports estimated preliminary financial results for the quarter and six months ended June 30, 2020. The report was filed on July 21, 2020. The figures provided are estimates subject to adjustment upon completion of closing procedures and have not been audited or reviewed by Ernst & Young LLP.
Key Financial Metrics
The following table summarizes the estimated preliminary financial results (in thousands) for the periods ended June 30, 2020:
| Metric | Three Months Ended June 30, 2020 (Low) | Three Months Ended June 30, 2020 (High) | Six Months Ended June 30, 2020 (Low) | Six Months Ended June 30, 2020 (High) |
|---|---|---|---|---|
| Total Revenues | $92,159 | $96,459 | $204,999 | $209,299 |
| Net Loss Attributable to Shareholders (Continuing Ops) | $(17,845) | $(13,545) | $(22,039) | $(17,739) |
| Adjusted EBITDA (Non-GAAP) | $64,322 | $68,622 | $136,317 | $140,617 |
Key components impacting the reconciliation from Net Loss to Adjusted EBITDA include significant depreciation and amortization expenses ($48.3M for the quarter; $97.4M for six months) and asset impairment charges ($10.5M for both periods). Interest expense was estimated at $21.8M for the quarter and $44.7M for the six-month period.
Material Changes and Unusual Items
The filing does not provide specific comparative data for the prior year periods to calculate percentage changes. However, the following unusual or significant items were identified in the reconciliation:
- Asset Impairment Charges: $10.5 million recorded for both the quarter and six months ended June 30, 2020.
- Losses on Debt Modification/Extinguishment: $4.7 million recorded for the six-month period (none for the quarter).
- Acquisition and Transaction Expenses: $3.7 million for the quarter and $6.9 million for the six months.
- Unconsolidated Entities: The company recorded equity in losses of unconsolidated entities totaling $3.2 million for the quarter and $2.9 million for the six months.
Guidance, Outlook, and Risks
The filing contains no specific forward-looking guidance or outlook beyond the preliminary estimates for the current period. Management emphasizes that these estimates are inherently uncertain and may vary materially from final results. The report includes standard cautionary language regarding forward-looking statements, noting that actual results may differ due to risks outlined in the Company's 2019 Form 10-K and Q1 2020 Form 10-Q. No specific liquidity or debt covenant breaches were disclosed in this text.
Investor Verification Checklist
- Verify the final audited financial results in the upcoming Form 10-Q to confirm if the preliminary estimates hold.
- Review the specific nature and drivers of the $10.5 million asset impairment charges.
- Assess the impact of the $4.7 million loss on debt modification/extinguishment on future interest obligations.
- Confirm the status of closing procedures and any subsequent adjustments to the reported ranges.
- Examine the detailed risk factors in the 2019 10-K and Q1 2020 10-Q referenced in the filing for context on operational risks.