Icahn Enterprises L.p. · NASDAQ:IEP
Icahn Enterprises L.p — Q3 2017 Earnings Presentation
27 slides from Icahn Enterprises L.p's earnings presentation, Nov 3, 2017
Slide 1: Icahn Enterprises L.P. Q3 2017 Earnings Presentation
Icahn Enterprises L.P. Q3 2017 Earnings Presentation November 3, 2017
Slide 2: Safe Harbor Statement
Safe Harbor Statement Forward-Looking Statements and Non-GAAP Financial Measures The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for forward- looking statements we make in this presentation, including statements regarding our future performance and plans for our busines
Slide 3: Q3 2017 Highlights and Recent Developments
Q3 2017 Highlights and Recent Developments Board declared $1.50 quarterly dividend payable in either cash or additional units Net income attributable to Icahn Enterprises for Q3 2017 was $597 million, compared to a net loss of $16 million for Q3 2016 In August 2017, our Real Estate segment sol
Slide 4: Consolidated Results
Consolidated Results Three Months Ended Nine Months Ended Consolidated Results September 30, September 30, ($ millions) 2017 2016 2017 2016 Select Income Statement Data: Revenues $5,680 $4,899 $17,011 $12,376 Expenses 4,783 4,646 14,507 13,951 Income (loss) before income tax expense 897 253 2,504 (1
Slide 5: Financial Performance
Financial Performance Net Income (Loss) Attributable to Icahn Enterprises Adjusted EBITDA Attributable to Icahn Enterprises $1,496 $597 $2,132 $567 $467 $693 ($16) ($922) (1) (2) (1) Q3 2017 Q3 2016 YTD 2017 YTD 2016 Three Months Ended September 30, Nine Months Ended September 30, Three Months Ended
Slide 6: Segment: Investment
Segment: Investment Company Description Highlights and Recent Developments IEP invests its proprietary capital through various Returns of 5.1% for Q3 2017 private investment funds (the “Funds”) managed IEP invested $1.0 billion in the Funds for the nine months ended September 30, by the Invest
Slide 7: Segment: Energy
Segment: Energy Company Description Highlights and Recent Developments CVR Energy, Inc. (NYSE:CVI) operates as a holding CVR Energy Q3 2017 Highlights company that owns majority interests in two ─ Announced Q3 2017 cash dividend of $0.50 per share separate operating subsidiaries: CVR Refining, L
Slide 8: Segment: Automotive
Segment: Automotive Company Description Highlights and Recent Developments We conduct our Automotive segment through our In January 2017, Icahn Enterprises completed the acquisition of all outstanding shares wholly owned subsidiaries Federal-Mogul LLC of Federal Mogul not already owned by Icahn
Slide 9: Segment: Railcar
Segment: Railcar Segment Description Highlights and Recent Developments American Railcar Industries, Inc. (NASDAQ:ARII) The initial sale of ARL to SMBC Rail closed on June 1, 2017 operates in three business segments: manufacturing operations, railcar services and leasing ─ Received approximately
Slide 10: Segment: Gaming
Segment: Gaming Company Description Highlights and Recent Developments We conduct our Gaming segment through our majority ownership in Tropicana and our wholly owned subsidiary, In August 2017, Tropicana repurchased shares of its common stock Trump Entertainment Resorts, Inc. aggregating $36 mil
Slide 11: Segment: Food Packaging
Segment: Food Packaging Company Description Highlights and Recent Developments Viskase Companies, Inc (OTCPK:VKSC) is a Net sales for the three months ended September 30, 2017 increased by $18 worldwide leader in the production and sale of million as compared to the corresponding prior year peri
Slide 12: Segment: Metals
Segment: Metals Company Description Highlights and Recent Developments PSC Metals, Inc. is one of the largest independent Net sales for the three months ended September 30, 2017 increased by $38 metal recycling companies in the U.S. million (53%) compared to the comparable prior year period prim
Slide 13: Segment: Real Estate
Segment: Real Estate Company Description Highlights and Recent Developments Consists of rental real estate, property development Business strategy is based on long-term investment outlook and operational expertise and club operations Rental real estate consists primarily of retail, office Rent
Slide 14: Segment: Mining
Segment: Mining Company Description Highlights and Recent Developments Ferrous Resources has certain rights to iron ore Mining segment has been concentrating on sales in Brazil, where the best mineral resources in Brazil and develops mining margins are being captured operations and related infra
Slide 15: Segment: Home Fashion
Segment: Home Fashion Company Description Highlights and Recent Developments WestPoint Home LLC is engaged in Q3 2017 net sales were $46 million, down $2 million from Q3 2016 manufacturing, sourcing, marketing, distributing and selling home fashion consumer products Adjusted EBITDA was a loss
Slide 16: Financial Performance
Financial Performance 16
Slide 17: Liquidity Serves as a Competitive Advantage
Liquidity Serves as a Competitive Advantage ($Millions) The Company and its subsidiaries maintain ample liquidity to take advantage of attractive opportunities for their respective businesses Liquidity As of 9/30/2017 Liquid Assets: Hold Co. Cash & Cash Equivalents $484 IEP Interest in Investment
Slide 18: IEP Summary Financial Information
IEP Summary Financial Information Significant Valuation demonstrated by market value of IEP’s public subsidiaries and Holding Company interest in Funds and book value or market comparables of other assets As of ($ Millions) Dec 31 March 31 June 30 Sept 30 2016 2017 2017 2017 Market-valued Subsidia
Slide 19: Appendix: Adjusted EBITDA
Appendix Adjusted EBITDA 19
Slide 20: Non-GAAP Financial Measures
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 before interest expense, income tax (benefit) expense and depreciation and amortization. We define Adjusted EB
Slide 21: Adjusted EBITDA Reconciliation by Segment – Three Months Ended September 30, 2017
Adjusted EBITDA Reconciliation by Segment – Three Months Ended September 30, 2017 ($Millions) Food Real Home Holding Investment Automotive Energy Metals Railcar Gaming Mining Packaging Estate Fashion Company Consolidated Adjusted EBITDA: Net income (loss) $359 ($7) $16 $1 $15 $80 ($2) $6 $463 ($4) (
Slide 22: Adjusted EBITDA Reconciliation by Segment – Three Months Ended September 30, 2016
Adjusted EBITDA Reconciliation by Segment – Three Months Ended September 30, 2016 ($Millions) Food Real Home Holding Investment Automotive Energy Metals Railcar Gaming Mining Packaging Estate Fashion Company Consolidated Adjusted EBITDA: Net income (loss) $362 $33 ($8) ($6) $21 ($83) ($3) $2 $4 ($4)
Slide 23: Adjusted EBITDA Reconciliation by Segment – Nine Months Ended September 30, 2017
Adjusted EBITDA Reconciliation by Segment – Nine Months Ended September 30, 2017 ($Millions) Food Real Home Holding Investment Automotive Energy Metals Railcar Gaming Mining Packaging Estate Fashion Company Consolidated Adjusted EBITDA: Net income (loss) $440 $569 $15 $4 $1,074 $90 $10 $8 $469 ($11)
Slide 24: Adjusted EBITDA Reconciliation by Segment – Nine Months Ended September 30, 2016
Adjusted EBITDA Reconciliation by Segment – Nine Months Ended September 30, 2016 ($Millions) Food Real Home Holding Investment Automotive Energy Metals Railcar Gaming Mining Packaging Estate Fashion Company Consolidated Adjusted EBITDA: Net (loss) income ($972) $103 ($588) ($13) $123 ($69) ($21) $8
Slide 25: Federal-Mogul Operational EBITDA
Federal-Mogul Operational EBITDA ($Millions) Three Months Ended September 30 2017 2016 Total Operational EBITDA ..................................................................................... 173 173 Items required to reconcile Operational EBITDA to EBITDA: Restructuring charges and asset impa
Slide 26: Tropicana Entertainment Inc. Operational EBITDA
Tropicana Entertainment Inc. Operational EBITDA ($Millions) Tropicana Operational EBITDA and the reconciliation to net income are as follows: Three months ended Three months ended September 30, 2017 September 30, 2016 Net income $ 45 $ 20 Interest expense, net 3 4 Income tax (benefit) expense 25 13
Slide 27: Trump Entertainment Resort, Inc. Operational EBITDA
Trump Entertainment Resort, Inc. Operational EBITDA ($Millions) Trump Entertainment Resort, Inc. Operational EBITDA and the reconciliation to net income are as follows: Three months ended Three months ended September 30, 2017 September 30, 2016 Net income $ 34 $ (105) Interest expense, net 2 2 Depre