Loading...
Docoh

Fortress Transportation and Infrastructure Investors (FTAI)

Fortress Transportation and Infrastructure Investors LLC owns and acquires high quality infrastructure and equipment that is essential for the transportation of goods and people globally. FTAI targets assets that, on a combined basis, generate strong and stable cash flows with the potential for earnings growth and asset appreciation. FTAI is externally managed by an affiliate of Fortress Investment Group LLC, a leading, diversified global investment firm.

Company profile

Ticker
FTAI, FTAIP, FTAIN, FTAIO
Exchange
Website
CEO
Joseph Adams
Employees
Location
Fiscal year end
Former names
Fortress Transportation & Infrastructure Investors Ltd.
SEC CIK
Subsidiaries
AirOpCo 1ASL Bermuda Ltd. • AirOpCo 1ET Bermuda Ltd. • AirOpCo 1JT Bermuda Ltd. • AirOpCo 2 UZ Ireland • AirOpCo I SD Ireland • AirOpCo II KO Ireland • AirOpCo II ME Ireland • ARM Investment LLC • Birmingham Southern Railroad Company • CFC Investment LLC ...

FTAI stock data

Analyst ratings and price targets

Last 3 months

Calendar

28 Jul 22
28 Sep 22
31 Dec 22
Quarter (USD) Jun 22 Mar 22 Dec 21 Sep 21
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Annual (USD) Dec 21 Dec 20 Dec 19 Dec 18
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Cash burn rate (est.) Burn method: Change in cash Burn method: Operating income Burn method: FCF (opex + capex)
Last Q Avg 4Q Last Q Avg 4Q Last Q Avg 4Q
Cash on hand (at last report) 296.81M 296.81M 296.81M 296.81M 296.81M 296.81M
Cash burn (monthly) 20.95M (no burn) (no burn) 22.65M 16.83M 557.42K
Cash used (since last report) 61.9M n/a n/a 66.92M 49.72M 1.65M
Cash remaining 234.9M n/a n/a 229.89M 247.08M 295.16M
Runway (months of cash) 11.2 n/a n/a 10.1 14.7 529.5

Beta Read what these cash burn values mean

Date Owner Security Transaction Code Indirect 10b5-1 $Price #Shares $Value #Remaining
27 May 22 Tuchman Martin Common Shares Grant Acquire A No No 0 3,750 0 459,291
27 May 22 Goodwin Paul R Common Shares Grant Acquire A Yes No 0 4,000 0 108,296
27 May 22 Robinson Ray M Common Shares Grant Acquire A No No 0 3,750 0 46,697
17 Mar 22 Kenneth J. Nicholson Stock Option Common Stock, par value $0.01 per share Grant Acquire A No No 25.5 12,838 327.37K 12,838
17 Mar 22 Kenneth J. Nicholson Stock Option Common Stock, par value $0.01 per share Grant Acquire A No No 25.5 120,000 3.06M 120,000
17 Mar 22 Kenneth J. Nicholson Stock Option Common Stock, par value $0.01 per share Grant Acquire A No No 29.5 35,593 1.05M 35,593
9.5% owned by funds/institutions
13F holders Current Prev Q Change
Total holders 131 138 -5.1%
Opened positions 15 10 +50.0%
Closed positions 22 30 -26.7%
Increased positions 42 43 -2.3%
Reduced positions 33 41 -19.5%
13F shares Current Prev Q Change
Total value 1.45B 1.92B -24.1%
Total shares 75.2M 74.45M +1.0%
Total puts 354K 577.1K -38.7%
Total calls 1.77M 5.36M -67.0%
Total put/call ratio 0.2 0.1 +85.9%
Largest owners Shares Value Change
Washington State Investment Board 11.79M $227.94M 0.0%
MS Morgan Stanley 6.71M $129.75M -1.8%
BAC Bank Of America 4.87M $94.2M +3.4%
GS Goldman Sachs 4.64M $89.71M -4.0%
Arctis Global 3.95M $76.39M +101.5%
Great Mountain Partners 3.78M $73.05M NEW
Natixis 3.37M $65.2M +2.1%
Hood River Capital Management 3.02M $58.34M -6.7%
Caspian Capital 2.9M $56.13M +0.5%
BMO Bank of Montreal 2.12M $40.07M +0.0%
Largest transactions Shares Bought/sold Change
Great Mountain Partners 3.78M +3.78M NEW
State Of Michigan Retirement System 0 -3.78M EXIT
Arctis Global 3.95M +1.99M +101.5%
BCS Barclays 0 -1.54M EXIT
HRT Financial 1.03M +1.01M +3718.3%
Royce & Associates 737.98K +737.98K NEW
WFC Wells Fargo & Co. 86.59K -694.12K -88.9%
Cooper Creek Partners Management 1.56M +601.69K +62.6%
DOW Dow Chemical 0 -530.09K EXIT
Philadelphia Financial Management of San Francisco 0 -485.61K EXIT

Financial report summary

?
Risks
  • The proposed plan to spin-off our infrastructure business into a separate, publicly traded company may not be completed on the currently contemplated timeline or terms, or at all, and may not achieve the intended benefits.
  • A pandemic, including COVID-19, could have an adverse impact on our business, financial condition, and results of operations.
  • Uncertainty relating to macroeconomic conditions may reduce the demand for our assets, result in non-performance of contracts by our lessees or charterers, limit our ability to obtain additional capital to finance new investments, or have other unforeseen negative effects.
  • The industries in which we operate have experienced periods of oversupply during which lease rates and asset values have declined, particularly during the most recent economic downturn, and any future oversupply could materially adversely affect our results of operations and cash flows.
  • There can be no assurance that any target returns will be achieved.
  • Contractual defaults may adversely affect our business, prospects, financial condition, results of operations and cash flows by decreasing revenues and increasing storage, positioning, collection, recovery and lost equipment expenses.
  • If we acquire a high concentration of a particular type of asset, or concentrate our investments in a particular sector, our business, prospects, financial condition, results of operations and cash flows could be adversely affected by changes in market demand or problems specific to that asset or sector.
  • We operate in highly competitive markets.
  • Certain liens may arise on our assets.
  • The values of our assets may fluctuate due to various factors.
  • We may not generate a sufficient amount of cash or generate sufficient free cash flow to fund our operations or repay our indebtedness.
  • We may acquire operating businesses, including businesses whose operations are not fully matured and stabilized. These businesses may be subject to significant operating and development risks, including increased competition, cost overruns and delays, and difficulties in obtaining approvals or financing. These factors could materially affect our business, financial condition, liquidity and results of operations.
  • Our use of joint ventures or partnerships, and our Manager’s outsourcing of certain functions, may present unforeseen obstacles or costs.
  • We are subject to the risks and costs of obsolescence of our assets.
  • The North American rail sector is a highly regulated industry and increased costs of compliance with, or liability for violation of, existing or future laws, regulations and other requirements could significantly increase our operational costs of doing business, thereby adversely affecting our profitability.
  • We could be negatively impacted by environmental, social, and governance (ESG) and sustainability-related matters.
  • We transport hazardous materials.
  • Our business could be adversely affected if service on the railroads is interrupted or if more stringent regulations are adopted regarding railcar design or the transportation of crude oil by rail.
  • Because we depend on Class I railroads for a significant portion of our operations in North America, our results of operations, financial condition and liquidity may be adversely affected if our relationships with these carriers deteriorate.
  • We may be affected by fluctuating prices for fuel and energy.
  • Transtar faces competition from other railroads and other transportation providers.
  • Our assets are exposed to unplanned interruptions caused by events outside of our control which may disrupt our business and cause damage or losses that may not be adequately covered by insurance.
  • Our assets generally require routine maintenance, and we may be exposed to unforeseen maintenance costs.
  • Some of our customers operate in highly regulated industries and changes in laws or regulations, including laws with respect to international trade, may adversely affect our ability to lease, charter or sell our assets.
  • Certain of our assets are subject to purchase options held by the charterer or lessee of the asset which, if exercised, could reduce the size of our asset base and our future revenues.
  • The profitability of our offshore energy assets may be impacted by the profitability of the offshore oil and gas industry generally, which is significantly affected by, among other things, volatile oil and gas prices.
  • We may not be able to renew or obtain new or favorable charters or leases, which could adversely affect our business, prospects, financial condition, results of operations and cash flows.
  • Litigation to enforce our contracts and recover our assets has inherent uncertainties that are increased by the location of our assets in jurisdictions that have less developed legal systems.
  • Our international operations involve additional risks, which could adversely affect our business, prospects, financial condition, results of operations and cash flows.
  • We may make acquisitions in emerging markets throughout the world, and investments in emerging markets are subject to greater risks than developed markets and could adversely affect our business, prospects, financial condition, results of operations and cash flows.
  • We are actively evaluating potential acquisitions of assets and operating companies in other transportation and infrastructure sectors which could result in additional risks and uncertainties for our business and unexpected regulatory compliance costs.
  • The agreements governing our indebtedness place restrictions on us and our subsidiaries, reducing operational flexibility and creating default risks.
  • Terrorist attacks or other hostilities could negatively impact our operations and our profitability and may expose us to liability and reputational damage.
  • Our leases and charters require payments in U.S. dollars, but many of our customers operate in other currencies; if foreign currencies devalue against the U.S. dollar, our lessees or charterers may be unable to meet their payment obligations to us in a timely manner.
  • Our inability to obtain sufficient capital would constrain our ability to grow our portfolio and to increase our revenues.
  • The effects of various environmental regulations may negatively affect the industries in which we operate which could have a material adverse effect on our financial condition, results of operations and cash flows.
  • Our Repauno site and Long Ridge property are subject to environmental laws and regulations that may expose us to significant costs and liabilities.
  • The discontinuation of the LIBOR benchmark interest rate may have an impact on our business.
  • A cyberattack that bypasses our information technology (“IT”), security systems or the IT security systems of our third-party providers, causing an IT security breach, may lead to a disruption of our IT systems and the loss of business information which may hinder our ability to conduct our business effectively and may result in lost revenues and additional costs.
  • If we are deemed an “investment company” under the Investment Company Act, it could have a material adverse effect on our business, prospects, financial condition, results of operations and cash flows.
  • Our acquisition of Transtar, LLC (“Transtar”) may not achieve its intended results and we may be unable to successfully integrate the operations of Transtar.
  • We have material customer concentration with respect to the Transtar business, with a limited number of customers accounting for a material portion of our revenues.
  • We are dependent on our Manager and other key personnel at Fortress and may not find suitable replacements if our Manager terminates the Management Agreement or if other key personnel depart.
  • There are conflicts of interest in our relationship with our Manager.
  • Our directors have approved a broad asset acquisition strategy for our Manager and will not approve each acquisition we make at the direction of our Manager. In addition, we may change our strategy without a shareholder vote, which may result in our acquiring assets that are different, riskier or less profitable than our current assets.
  • Our Manager will not be liable to us for any acts or omissions performed in accordance with the Management Agreement, including with respect to the performance of our assets.
  • Our Manager’s due diligence of potential asset acquisitions or other transactions may not identify all pertinent risks, which could materially affect our business, financial condition, liquidity and results of operations.
  • Shareholders may be subject to U.S. federal income tax on their share of our taxable income, regardless of whether they receive any cash distributions from us.
  • We may hold or acquire certain investments through entities classified as CFCs or PFICs for U.S. federal income tax purposes.
  • Certain tax consequences of the ownership of our preferred shares, including treatment of distributions as guaranteed payments for the use of capital, are uncertain.
  • Shareholders that are not U.S. persons could be subject to U.S. federal income tax, including a 10% withholding tax, on the disposition of our shares.
  • Tax gain or loss on a sale or other disposition of our common shares could be more or less than expected.
  • Our ability to make distributions depends on our receiving sufficient cash distributions from our subsidiaries, and we cannot assure our shareholders that we will be able to make cash distributions to them in amounts that are sufficient to fund their tax liabilities.
  • If we are treated as a corporation for U.S. federal income tax purposes, the value of the shares could be adversely affected.
  • Shareholders that are not U.S. persons should also anticipate being required to file U.S. tax returns and may be required to pay U.S. tax solely on account of owning our shares.
  • Non-U.S. persons that hold (or are deemed to hold) more than 5% of any class of our shares (or held, or were deemed to hold, more than 5% of any class of our shares) may be subject to U.S. federal income tax upon the disposition of some or all their shares.
  • Tax-exempt shareholders may face certain adverse U.S. tax consequences from owning our shares.
  • If substantially all of the U.S. source rental income derived from aircraft or ships used to transport passengers or cargo in international traffic (“U.S. source international transport rental income”) of any of our non-U.S. corporate subsidiaries is attributable to activities of personnel based in the United States, such subsidiary could be subject to U.S. federal income tax on a net income basis at regular tax rates, rather than at a rate of 4% on gross income, which would adversely affect our business and result in decreased funds available for distribution to our shareholders.
  • The ability of our corporate subsidiaries to utilize net operating losses (“NOLs”) to offset their future taxable income may become limited.
  • Our subsidiaries may become subject to unanticipated tax liabilities that may have a material adverse effect on our results of operations.
  • Our structure involves complex provisions of U.S. federal income tax law for which no clear precedent or authority may be available. Our structure also is subject to potential legislative, judicial or administrative change and differing interpretations, possibly on a retroactive basis.
  • We could incur a significant tax liability if the IRS successfully asserts that the “anti-stapling” rules apply to our investments in our non-U.S. and U.S. subsidiaries, which would adversely affect our business and result in decreased funds available for distribution to our shareholders.
  • Because we cannot match transferors and transferees of our shares, we have therefore adopted certain income tax accounting positions that may not conform with all aspects of applicable tax requirements. The IRS may challenge this treatment, which could adversely affect the value of our shares.
  • Rules regarding U.S. federal income tax liability arising from IRS audits could adversely affect our shareholders.
  • The market price and trading volume of our common and preferred shares may be volatile, which could result in rapid and substantial losses for our shareholders.
  • An increase in market interest rates may have an adverse effect on the market price of our shares.
  • We are required by Section 404 of the Sarbanes-Oxley Act to evaluate the effectiveness of our internal controls, and the outcome of that effort may adversely affect our results of operations, financial condition and liquidity. Because we are no longer an emerging growth company, we are subject to heightened disclosure obligations, which may impact our share price.
  • Your percentage ownership in us may be diluted in the future.
  • Sales or issuances of our common shares could adversely affect the market price of our common shares.
  • The incurrence or issuance of debt, which ranks senior to our common shares upon our liquidation, and future issuances of equity or equity-related securities, which would dilute the holdings of our existing common shareholders and may be senior to our common shares for the purposes of making distributions, periodically or upon liquidation, may negatively affect the market price of our common shares.
  • Our determination of how much leverage to use to finance our acquisitions may adversely affect our return on our assets and may reduce funds available for distribution.
  • While we currently intend to pay regular quarterly dividends to our shareholders, we may change our dividend policy at any time.
  • Anti-takeover provisions in our operating agreement and Delaware law could delay or prevent a change in control.
  • There are certain provisions in our operating agreement regarding exculpation and indemnification of our officers and directors that differ from the Delaware General Corporation Law (the “DGCL”) in a manner that may be less protective of the interests of our shareholders.
  • If securities or industry analysts do not publish research or reports about our business, or if they downgrade their recommendations regarding our common shares, our share price and trading volume could decline.
Management Discussion
  • The chief operating decision maker (“CODM”) utilizes Adjusted EBITDA as the key performance measure. Adjusted EBITDA is not a financial measure in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”). This performance measure provides the CODM with the information necessary to assess operational performance, as well as make resource and allocation decisions. We believe Adjusted EBITDA is a useful metric for investors and analysts for similar purposes of assessing our operational performance.
  • Adjusted EBITDA is defined as net income (loss) attributable to shareholders, adjusted (a) to exclude the impact of provision for (benefit from) income taxes, equity-based compensation expense, acquisition and transaction expenses, losses on the modification or extinguishment of debt and capital lease obligations, changes in fair value of non-hedge derivative instruments, asset impairment charges, incentive allocations, depreciation and amortization expense, and interest expense, (b) to include the impact of our pro-rata share of Adjusted EBITDA from unconsolidated entities, and (c) to exclude the impact of equity in earnings (losses) of unconsolidated entities and the non-controlling share of Adjusted EBITDA.
  • (1) Includes the following items for the three months ended June 30, 2022 and 2021: (i) depreciation and amortization expense of $56,622 and $47,371, (ii) lease intangible amortization of $3,310 and $1,198 and (iii) amortization for lease incentives of $8,495 and $5,599, respectively. Includes the following items for the six months ended June 30, 2022 and 2021: (i) depreciation and amortization expense of $114,923 and $91,906, (ii) lease intangible amortization of $6,968 and $1,950 and (iii) amortization for lease incentives of $16,850 and $12,955, respectively.

Content analysis

?
Positive
Negative
Uncertain
Constraining
Legalese
Litigous
Readability
H.S. junior Avg
New words: Cayman, crane, delegated, disinterested, gave, seventeen, subscription, Warrant
Removed: document, enforceable, forgo, par