- IEP reports first quarter net income attributable to IEP of
$323 million and Adjusted EBITDA
attributable to IEP of $616 million.
This represents an improvement of $161 of net income attributable to IEP and
$181 of Adjusted EBITDA attributable
to IEP compared to Q1 2021.
- Indicative Net Asset Value increased by $1.1 billion as of March
31, 2022 compared to December 31,
2021. The change in indicative net asset value
includes, among other things, changes in the fair value of certain
subsidiaries which are not included in our GAAP earnings.
- Board approves quarterly distribution of $2.00 per depositary unit (the 68th consecutive
quarterly distribution since 2005)
SUNNY
ISLES BEACH, Fla., May 6, 2022
/PRNewswire/ -- Icahn Enterprises L.P. (Nasdaq:IEP) is
reporting first quarter 2022 revenues of $4.1 billion and net income attributable to Icahn
Enterprises of $323 million, or
$1.06 per depositary unit. For the
three months ended March 31, 2021,
revenues were $3.4 billion and net
income attributable to Icahn Enterprises was $162 million, or $0.65 per depositary unit. For the three months
ended March 31, 2022, Adjusted EBITDA
attributable to Icahn Enterprises was $616
million compared to $435
million for the three months ended March 31, 2021.
Indicative Net Asset Value increased by $1.1 billion as of March
31, 2022 compared to December 31,
2021. The change in indicative net asset value
includes, among other things, changes in the fair value of certain
subsidiaries which are not included in our GAAP earnings reported
above.
On May 4, 2022, the Board of
Directors of the general partner of Icahn Enterprises declared a
quarterly distribution in the amount of $2.00 per depositary unit, which will be paid on
or about June 29, 2022, to depositary
unitholders of record at the close of business on May 20, 2022. Depositary unitholders will have
until June 16, 2022, to make a timely
election to receive either cash or additional depositary units. If
a unitholder does not make a timely election, it will automatically
be deemed to have elected to receive the distribution in additional
depositary units. Depositary unitholders who elect to receive (or
who are deemed to have elected to receive) additional depositary
units will receive units valued at the volume weighted average
trading price of the units during the five consecutive
trading days ending June 24,
2022. Icahn Enterprises will make a cash payment in lieu of
issuing fractional depositary units to any unitholders electing to
receive (or who are deemed to have elected to receive) depositary
units.
Icahn Enterprises L.P., a master limited partnership, is a
diversified holding company owning subsidiaries currently engaged
in the following continuing operating businesses: Investment,
Energy, Automotive, Food Packaging, Real Estate, Home Fashion and
Pharma.
Caution Concerning Forward-Looking Statements
Results for any interim period are not necessarily indicative of
results for any full fiscal period. This release may contain
certain "forward-looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995, many of which are
beyond our ability to control or predict. Forward-looking
statements may be identified by words such as "expects,"
"anticipates," "intends," "plans," "believes," "seeks,"
"estimates," "will" or words of similar meaning and include, but
are not limited to, statements about the expected future business
and financial performance of Icahn Enterprises and its
subsidiaries. Actual events, results and outcomes may differ
materially from our expectations due to a variety of known and
unknown risks, uncertainties and other factors, including risks
related to economic downturns, substantial competition and rising
operating costs; risks related to the severity, magnitude and
duration of the COVID-19 pandemic and its impact on the global
economy, financial markets and industries in which our subsidiaries
operate; the impacts from the Russia/Ukraine conflict, including economic
volatility and the impacts of export controls and other economic
sanctions, risks related to our investment activities, including
the nature of the investments made by the private funds in which we
invest, declines in the fair value of our investments as a result
of the COVID-19 pandemic, losses in the private funds and loss of
key employees; risks related to our ability to continue to conduct
our activities in a manner so as to not be deemed an investment
company under the Investment Company Act of 1940, as amended; risks
related to our energy business, including the volatility and
availability of crude oil, other feed stocks and refined products,
declines in global demand for crude oil, refined products and
liquid transportation fuels as a result of the COVID-19 pandemic,
unfavorable refining margin (crack spread), interrupted access to
pipelines, significant fluctuations in nitrogen fertilizer demand
in the agricultural industry and seasonality of results; risks
related to our automotive activities and exposure to adverse
conditions in the automotive industry, including as a result of the
COVID-19 pandemic; risks related to our food packaging activities,
including competition from better capitalized competitors,
inability of our suppliers to timely deliver raw materials, and the
failure to effectively respond to industry changes in casings
technology; supply chain issues; inflation, including increased
costs of raw materials and shipping, including as a result of the
Russia/Ukraine conflict; labor shortages and
workforce availability; risks related to our real estate
activities, including the extent of any tenant bankruptcies and
insolvencies; risks related to our home fashion operations,
including changes in the availability and price of raw materials,
and changes in transportation costs and delivery times; and other
risks and uncertainties detailed from time to time in our filings
with the Securities and Exchange Commission. Additionally,
there may be other factors not presently known to us or which we
currently consider to be immaterial that may cause our actual
results to differ materially from the forward-looking statements.
Past performance in our Investment segment is not indicative of
future performance. We undertake no obligation to publicly update
or review any forward-looking information, whether as a result of
new information, future developments or otherwise.
CONDENSED
CONSOLIDATED STATEMENTS OF
OPERATIONS (UNAUDITED)
|
|
|
|
Three Months Ended
March 31,
|
|
|
2022
|
|
2021
|
|
|
(in millions, except
per unit amounts)
|
Revenues:
|
|
|
|
|
|
|
Net
sales
|
|
$
|
2,968
|
|
$
|
2,218
|
Other
revenues from operations
|
|
|
159
|
|
|
152
|
Net gain
from investment activities
|
|
|
939
|
|
|
1,006
|
Interest
and dividend income
|
|
|
42
|
|
|
26
|
Other
loss, net
|
|
|
(24)
|
|
|
(18)
|
|
|
|
4,084
|
|
|
3,384
|
Expenses:
|
|
|
|
|
|
|
Cost of
goods sold
|
|
|
2,538
|
|
|
2,139
|
Other
expenses from operations
|
|
|
128
|
|
|
118
|
Selling,
general and administrative
|
|
|
301
|
|
|
316
|
Interest
expense
|
|
|
134
|
|
|
195
|
|
|
|
3,101
|
|
|
2,768
|
Income before income
tax expense
|
|
|
983
|
|
|
616
|
Income tax
expense
|
|
|
(98)
|
|
|
(17)
|
Net income
|
|
|
885
|
|
|
599
|
Less: net income
attributable to non-controlling interests
|
|
|
562
|
|
|
437
|
Net income attributable
to Icahn Enterprises
|
|
$
|
323
|
|
$
|
162
|
|
|
|
|
|
|
|
Net income attributable
to Icahn Enterprises allocated to:
|
|
|
|
|
|
|
Limited
partners
|
|
$
|
317
|
|
$
|
159
|
General
partner
|
|
|
6
|
|
|
3
|
|
|
$
|
323
|
|
$
|
162
|
|
|
|
|
|
|
|
Basic income per LP
unit
|
|
$
|
1.08
|
|
$
|
0.66
|
Basic weighted average
LP units outstanding
|
|
|
294
|
|
|
242
|
|
|
|
|
|
|
|
Diluted income per LP
unit
|
|
$
|
1.06
|
|
$
|
0.65
|
Diluted weighted
average LP units outstanding
|
|
|
299
|
|
|
245
|
Distributions declared
per LP unit
|
|
$
|
2.00
|
|
$
|
2.00
|
CONDENSED
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
|
|
|
|
March 31,
|
|
December 31,
|
|
|
2022
|
|
2021
|
|
|
(in
millions)
|
ASSETS
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
2,160
|
|
$
|
2,321
|
Cash held at
consolidated affiliated partnerships and restricted cash
|
|
|
3,801
|
|
|
2,115
|
Investments
|
|
|
7,397
|
|
|
9,151
|
Due from
brokers
|
|
|
5,658
|
|
|
5,530
|
Accounts receivable,
net
|
|
|
604
|
|
|
546
|
Inventories
|
|
|
1,720
|
|
|
1,478
|
Property, plant and
equipment, net
|
|
|
4,067
|
|
|
4,085
|
Derivative assets,
net
|
|
|
469
|
|
|
612
|
Goodwill
|
|
|
288
|
|
|
290
|
Intangible assets,
net
|
|
|
581
|
|
|
595
|
Other assets
|
|
|
1,084
|
|
|
1,023
|
Total
Assets
|
|
$
|
27,829
|
|
$
|
27,746
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
1,105
|
|
$
|
805
|
Accrued expenses and
other liabilities
|
|
|
2,519
|
|
|
1,778
|
Deferred tax
liabilities
|
|
|
447
|
|
|
390
|
Derivative liabilities,
net
|
|
|
729
|
|
|
787
|
Securities sold, not
yet purchased, at fair value
|
|
|
4,776
|
|
|
5,340
|
Due to
brokers
|
|
|
1,369
|
|
|
1,611
|
Debt
|
|
|
7,126
|
|
|
7,692
|
Total
liabilities
|
|
|
18,071
|
|
|
18,403
|
|
|
|
|
|
|
|
Equity:
|
|
|
|
|
|
|
Limited
partners
|
|
|
4,199
|
|
|
4,298
|
General
partner
|
|
|
(756)
|
|
|
(754)
|
Equity attributable to
Icahn Enterprises
|
|
|
3,443
|
|
|
3,544
|
Equity attributable to
non-controlling interests
|
|
|
6,315
|
|
|
5,799
|
Total equity
|
|
|
9,758
|
|
|
9,343
|
Total Liabilities
and Equity
|
|
$
|
27,829
|
|
$
|
27,746
|
Use of Non-GAAP Financial
Measures
The Company uses certain non-GAAP financial measures in
evaluating its performance. These include non-GAAP EBITDA and
Adjusted EBITDA. EBITDA represents earnings from continuing
operations before interest expense, income tax (benefit) expense
and depreciation and amortization. We define Adjusted EBITDA as
EBITDA excluding certain effects of impairment, restructuring
costs, certain pension plan expenses, gains/losses on disposition
of assets, gains/losses on extinguishment of debt and certain other
non-operational charges. We present EBITDA and Adjusted EBITDA on a
consolidated basis and on a basis attributable to Icahn Enterprises
net of the effects of non-controlling interests. We conduct
substantially all of our operations through subsidiaries. The
operating results of our subsidiaries may not be sufficient to make
distributions to us. In addition, our subsidiaries are not
obligated to make funds available to us for payment of our
indebtedness, payment of distributions on our depositary units or
otherwise, and distributions and intercompany transfers from our
subsidiaries to us may be restricted by applicable law or covenants
contained in debt agreements and other agreements to which these
subsidiaries currently may be subject or into which they may enter
into in the future. The terms of any borrowings of our subsidiaries
or other entities in which we own equity may restrict dividends,
distributions or loans to us.
We believe that providing EBITDA and Adjusted EBITDA to
investors has economic substance as these measures provide
important supplemental information of our performance to investors
and permits investors and management to evaluate the core operating
performance of our business without regard to interest, taxes and
depreciation and amortization and certain effects of impairment,
restructuring costs, certain pension plan expenses, gains/losses on
disposition of assets, gains/losses on extinguishment of debt and
certain other non-operational charges. Additionally, we believe
this information is frequently used by securities analysts,
investors and other interested parties in the evaluation of
companies that have issued debt. Management uses, and believes that
investors benefit from referring to, these non-GAAP financial
measures in assessing our operating results, as well as in
planning, forecasting and analyzing future periods. Adjusting
earnings for these charges allows investors to evaluate our
performance from period to period, as well as our peers, without
the effects of certain items that may vary depending on accounting
methods and the book value of assets. Additionally, EBITDA and
Adjusted EBITDA present meaningful measures of performance
exclusive of our capital structure and the method by which assets
were acquired and financed.
EBITDA and Adjusted EBITDA have limitations as analytical tools,
and you should not consider them in isolation, or as substitutes
for analysis of our results as reported under generally accepted
accounting principles in the United
States, or U.S. GAAP. For example, EBITDA and Adjusted
EBITDA:
- do not reflect our cash expenditures, or future requirements
for capital expenditures, or contractual commitments;
- do not reflect changes in, or cash requirements for, our
working capital needs; and
- do not reflect the significant interest expense, or the cash
requirements necessary to service interest or principal payments on
our debt.
Although depreciation and amortization are non-cash charges, the
assets being depreciated or amortized often will have to be
replaced in the future, and EBITDA and Adjusted EBITDA do not
reflect any cash requirements for such replacements. Other
companies in the industries in which we operate may calculate
EBITDA and Adjusted EBITDA differently than we do, limiting
their usefulness as comparative measures. In addition, EBITDA and
Adjusted EBITDA do not reflect the impact of earnings or
charges resulting from matters we consider not to be indicative of
our ongoing operations.
EBITDA and Adjusted EBITDA are not measurements of our financial
performance under U.S. GAAP and should not be considered as
alternatives to net income or any other performance measures
derived in accordance with U.S. GAAP or as alternatives to cash
flow from operating activities as a measure of our liquidity. Given
these limitations, we rely primarily on our U.S. GAAP results and
use EBITDA and Adjusted EBITDA only as a supplemental measure of
our financial performance.
Use of Indicative Net Asset Value
Data
The Company uses indicative net asset value as an additional
method for considering the value of the Company's assets, and we
believe that this information can be helpful to investors. Please
note, however, that the indicative net asset value does not
represent the market price at which the depositary units trade.
Accordingly, data regarding indicative net asset value is of
limited use and should not be considered in isolation.
The Company's depositary units are not redeemable, which means
that investors have no right or ability to obtain from the Company
the indicative net asset value of units that they own. Units may be
bought and sold on The Nasdaq Global Select Market at prevailing
market prices. Those prices may be higher or lower than the
indicative net asset value of the depositary units as calculated by
management.
See below for more information on how we calculate the Company's
indicative net asset value.
|
|
|
|
|
March 31,
|
|
December
31,
|
|
2022
|
|
2021
|
|
(in
millions)(unaudited)
|
Market-valued
Subsidiaries and Investments:
|
|
|
|
Holding
Company interest in Investment Funds(1)
|
$ 4,684
|
|
$ 4,271
|
CVR
Energy(2)
|
1,818
|
|
1,197
|
Delek(2)
|
28
|
|
105
|
Total market-valued
subsidiaries and investments
|
$
6,530
|
|
$
5,573
|
|
|
|
|
Other
Subsidiaries:
|
|
|
|
Viskase(3)
|
$ 230
|
|
$ 230
|
Real
Estate Holdings(1)
|
462
|
|
472
|
WestPoint
Home(1)
|
138
|
|
132
|
Vivus(1)
|
254
|
|
259
|
|
|
|
|
Automotive
Services(4)
|
937
|
|
952
|
Automotive
Parts(1)
|
493
|
|
422
|
Automotive
Owned Real Estate Assets(5)
|
1,187
|
|
1,187
|
Icahn
Automotive Group
|
2,617
|
|
2,561
|
|
|
|
|
Total other
subsidiaries
|
$
3,701
|
|
$
3,654
|
Add: Other
Holding Company net assets(6)
|
(58)
|
|
(3)
|
Indicative Gross
Asset Value
|
$
10,173
|
|
$
9,224
|
Add:
Holding Company cash and cash equivalents(7)
|
1,369
|
|
1,707
|
Less:
Holding Company debt(7)
|
(5,311)
|
|
(5,810)
|
Indicative Net Asset
Value
|
$
6,231
|
|
$
5,121
|
|
|
|
Indicative net asset
value does not purport to reflect a valuation of IEP. The
calculated Indicative net asset value does not include any value
for our Investment Segment other than the fair market value of our
investment in the Investment Funds. A valuation is a subjective
exercise and Indicative net asset value does not necessarily
consider all elements or consider in the adequate proportion the
elements that could affect the valuation of IEP. Investors may
reasonably differ on what such elements are and their impact on
IEP. No representation or assurance, express or implied, is made as
to the accuracy and correctness of Indicative net asset value as of
these dates or with respect to any future indicative or prospective
results which may vary.
|
|
|
(1)
|
Represents GAAP equity
attributable to us as of each respective date.
|
(2)
|
Based on closing share
price on each date (or if such date was not a trading day, the
immediately preceding trading day) and the number of shares owned
by the Holding Company as of each respective date.
|
(3)
|
Amounts based on market
comparables due to lack of material trading volume, valued at 9.0x
Adjusted EBITDA for the twelve months ended March 31, 2022 and
December 31, 2021.
|
(4)
|
Amounts based on market
comparables due to lack of material trading volume, valued at 14.0x
Adjusted EBITDA for the twelve months ended March 31, 2022 and
December 31, 2021.
|
(5)
|
Management performed a
valuation on the owned real-estate with the assistance of
third-party consultants to estimate fair-market-value. This
analysis utilized property-level market rents, location level
profitability, and utilized prevailing cap rates ranging from 5.5%
to 6.5%. The valuation assumed that triple net leases are in place
for all the locations at rents estimated by management based on
market conditions. There is no assurance we would be able to sell
the assets on the timeline or at the prices and lease terms we
estimate. Different judgments or assumptions would result in
different estimates of the value of the real estate assets.
Moreover, although we evaluate and provide our Indicative Net Asset
Value on a quarterly basis, the estimated values may fluctuate in
the interim, so that any actual transaction could result in a
higher or lower valuation.
|
(6)
|
Holding Company's
balance as of each respective date, excluding non-cash deferred tax
assets or liabilities. For March 31, 2022, the distribution payable
was adjusted to $49 million, which represents the actual
distribution paid subsequent to March 31, 2022.
|
(7)
|
Holding Company's
balance as of each respective date.
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
2022
|
|
2021
|
|
(in
millions)(unaudited)
|
Adjusted
EBITDA
|
|
|
|
Net
income
|
$ 885
|
|
$ 599
|
Interest
expense, net
|
132
|
|
194
|
Income tax
expense
|
98
|
|
17
|
Depreciation and amortization
|
122
|
|
127
|
EBITDA before
non-controlling interests
|
1,237
|
|
937
|
(Gain)
loss on disposition of assets, net
|
(2)
|
|
-
|
Transformation losses
|
14
|
|
24
|
Other
|
3
|
|
(9)
|
Adjusted EBITDA
before non-controlling interests
|
$ 1,252
|
|
$ 952
|
|
|
|
|
Adjusted EBITDA
attributable to IEP
|
|
|
|
Net
income
|
$ 323
|
|
$ 162
|
Interest
expense, net
|
103
|
|
136
|
Income tax
expense
|
90
|
|
30
|
Depreciation and amortization
|
85
|
|
93
|
EBITDA attributable
to IEP
|
601
|
|
421
|
(Gain)
loss on disposition of assets, net
|
(2)
|
|
-
|
Transformation losses
|
14
|
|
24
|
Other
|
3
|
|
(10)
|
Adjusted EBITDA
attributable to IEP
|
$ 616
|
|
$ 435
|
Investor Contact:
Ted
Papapostolou, Chief Financial Officer
(305) 422-4100
View original
content:https://www.prnewswire.com/news-releases/icahn-enterprises-lp-reports-first-quarter-2022-financial-results-301541504.html
SOURCE Icahn Enterprises L.P.