ICAHN ENTERPRISES L.P. Icahn Enterprises L.P.
Q1 2024 Earnings Presentation
May 8, 2024
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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 businesses and potential acquisitions. 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 L.P. 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 that are discussed in our filings with the Securities and Exchange Commission, including economic, competitive, legal and other factors, including interest rate increases; the impacts from the Russia/Ukraine conflict and the conflict in the Middle East, including economic volatility and the impacts of export controls and other economic sanctions. Accordingly, there is no assurance that our expectations will be realized. We assume no obligation to update or revise any forward-looking statements should circumstances change, except as otherwise required by law. This presentation also includes certain non-GAAP financial measures. A reconciliation of such non-GAAP financial measures to the most directly comparable GAAP financial measures can be found in the back of this presentation.
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Q1 2024 Highlights and Recent Developments
FINANCIAL
RESULTS
L.P.
UNITHOLDERS
- Q1 2024 net loss attributable to IEP of $38 million, or a loss of $0.09 per depositary unit, compared to net loss attributable to IEP of $270 million, or a loss of $0.75 per depositary unit, for Q1 2023
- Q1 2024 Adjusted EBITDA attributable to IEP (1) was $134 million compared $95 million for Q1 2023
- Indicative net asset value (2) as of March 31, 2024, was approximately $5 billion, an increase of $194 million compared to December 31, 2023
- IEP declares first quarter distribution of $1.00 per depositary unit
1) | Refer to the Non-GAAP Reconciliations in the Appendix | 3 |
2) | The change in indicative net asset value includes, among other things, changes in the fair value of certain subsidiaries which are not included in our GAAP earnings |
Financial Performance
Net Income (Loss) Attributable to Icahn Enterprises
Three Months Ended | ||
March 31, | ||
($Millions) | 2024 | 2023 |
Segments: | ||
Energy | $49 | $132 |
Automotive | (9) | (13) |
Real Estate | (2) | - |
All Other (2) | 2 | - |
Subtotal | 40 | 119 |
Investment | (23) | (171) |
Holding Company | (55) | (218) |
Consolidated | ($38) | ($270) |
Adjusted EBITDA Attributable to Icahn Enterprises(1)
Three Months Ended | ||
March 31, | ||
($Millions) | 2024 | 2023 |
Segments: | ||
Energy | $118 | $229 |
Automotive | 23 | 21 |
Real Estate | 1 | 3 |
All Other (2) | 22 | 20 |
Subtotal | 164 | 273 |
Investment | (23) | (171) |
Holding Company | (7) | (7) |
Consolidated | $134 | $95 |
- Refer to the Non-GAAP Reconciliations in the Appendix
- All Other operating segments include Food Packaging, Home Fashion, and Pharma. Results for each of these separate segments can be found in our Form 10-Q filed with the SEC. Refer to the Non-GAAP Reconciliations in the Appendix for Adjusted EBITDA results for each of these separate segments
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Segment: Investment
Segment Description
- Our Investment segment is comprised of various private investment funds ("Investment Funds") in which we have general partner interests and through which we invest our proprietary capital.
- We and Mr. Icahn and his family members and affiliates are the only investors in the Investment Funds.
- Fair value of IEP's investment in the Funds was approximately $3.2 billion as of March 31, 2024
Summary Segment Financial Results
Three Months Ended | ||
Investment Segment | March 31, | |
($Millions) | 2024 | 2023 |
Selected Income Statement Data: | ||
Total revenue | $9 | ($299) |
Adjusted EBITDA(3) | (40) | (375) |
Net income (loss) | (40) | (375) |
Adjusted EBITDA attributable to IEP(3) | (23) | (171) |
Net income (loss) attributable to IEP | (23) | (171) |
Returns | -0.8% | -4.1% |
Highlights and Recent Developments
- As of March 31, 2024, the Funds had a net short notional exposure of 27%
- Returns of negative 0.8% for Q1 2024
Significant Holdings
As of March 31, 2024
Company | Mkt. Value ($mm)(1) | % Ownership(2) |
$839 | 15.40% | |
$511 | 1.13% | |
$368 | 9.50% | |
$322 | 1.47% | |
$302 | 1.38% |
(1) | Based on closing share price as of specified date | 5 |
(2) | Includes common stock and forward contracts as a percentage of common shares issued and outstanding | |
(3) | Refer to the Non-GAAP Reconciliation in the Appendix |
Segment: Energy
Segment Description
- CVR Energy, Inc. (NYSE: CVI) is a diversified holding company primarily engaged in the petroleum refining and nitrogen fertilizer manufacturing businesses through its interests in CVR Refining, LP and CVR Partners, LP (NYSE: UAN)
- CVR Refining is an independent petroleum refiner and marketer of high-value transportation fuels in the mid- continent of the United States
- CVR Partners is a manufacturer of ammonia and urea ammonium nitrate ("UAN") solution fertilizer products
Summary Segment Financial Results
Three Months Ended | ||
Energy Segment | March 31, | |
($Millions) | 2024 | 2023 |
Selected Income Statement Data: | ||
Net sales | $1,863 | $2,286 |
Adjusted EBITDA(2) | 203 | 401 |
Net income (loss) | 78 | 247 |
Adjusted EBITDA attributable to IEP(2) | 118 | 229 |
Net income (loss) attributable to IEP | 49 | 132 |
Capital Expenditures | $47 | $44 |
Highlights and Recent Developments
- CVR Energy Q1 2024 Highlights
- Adjusted EBITDA attributable to IEP decreased by $111 million to $118 million for Q1 2024 compared to $229 million in the prior-year quarter
- Declared a $0.50 per share quarterly cash dividend
- Petroleum Q1 2024 Results
- Processed approximately 196,000 barrels per day of total throughput in the quarter
- Refining margin for Q1 2024 was $16.29 per throughput barrel, compared to $23.24 during Q1 2023
- Nitrogen Fertilizer Q1 2024 Results
- EBITDA of $40 million compared to $124 million in Q1 2023(1)
- Q1 2024 average realized gate prices for UAN decreased by 42% percent to $267 per ton and ammonia decreased by 41% percent to $528 per ton when compared to the prior year quarter
(1) | Refer to the Petroleum and Nitrogen Fertilizer EBITDA reconciliations in the Non-GAAP Reconciliations Appendix | 6 |
(2) | Refer to the Non-GAAP Reconciliations in the Appendix | |
Segment: Automotive
Segment Description
- We conduct our Automotive segment through our wholly owned subsidiaries, Icahn Automotive Group LLC ("Icahn Automotive") and our wholly owned subsidiary, AEP PLC LLC ("AEP PLC")
- The Automotive segment is engaged in providing a full range of automotive repair and maintenance services, along with the sale of any installed parts or materials related to automotive services ("Automotive Services") to its customers, as well as sales of automotive aftermarket parts and retailed merchandise ("Aftermarket Parts"). In addition to their primary business, the Automotive segment leases available and excess real estate in certain locations under long-term operating leases
Summary Segment Financial Results
Three Months Ended | ||
Automotive Segment | March 31, | |
($Millions) | 2024 | 2023 |
Selected Income Statement Data: | ||
Net sales and other revenue from | $384 | $457 |
operations | ||
Adjusted EBITDA(1) | 23 | 21 |
Net income (loss) | (9) | (13) |
Capital Expenditures | $16 | $10 |
Highlights and Recent Developments
- Net sales and other revenues decreased by $73 million primarily driven by the deconsolidation of Auto Plus of $53 million and reduced car count for the Automotive Services business.
- Adjusted EBITDA improved $2 million for Q1 2024 compared to Q1 2023 primarily due to the deconsolidation of Auto Plus which was negative $1 million in the prior year quarter
- Automotive Services was able to maintain Adjusted EBITDA through margin initiatives which offset reduced car count
(1) Refer to the Non-GAAP Reconciliations in the Appendix | 7 |
Segment: Real Estate
Segment Description
- Our Real Estate segment consists of investment properties which includes land, retail, office and industrial properties leased to corporate tenants, the development and sale of single-family homes, and the operations of resorts and country clubs
Summary Segment Financial Results
Three Months Ended | ||
Real Estate Segment | March 31, | |
($Millions) | 2024 | 2023 |
Selected Income Statement Data: | ||
Net sales and other revenue from | $18 | $23 |
operations | ||
Adjusted EBITDA(1) | 1 | 3 |
Net income (loss) | (2) | - |
Capital Expenditures | $2 | $2 |
Highlights and Recent Developments
- Q1 2024 Net sales and other revenue from operations decreased by $5 million compared to Q1 2023 driven by reduced sales of single-family homes
- Q1 2024 Adjusted EBITDA for the real estate segment decreased $2 million compared to Q1 2023 driven by reduced sales of single-family homes
(1) Refer to the Non-GAAP Reconciliations in the Appendix | 8 |
All Other Operating Segments
All Other Segments Description
- Food Packaging: We conduct our Food Packaging segment through our majority owned subsidiary, Viskase Companies, Inc. (OTCPK:VKSC), a worldwide leader in the production and sale of cellulosic, fibrous and plastic casings for the processed meat and poultry industry
- Home Fashion: We conduct our Home Fashion segment through our wholly owned subsidiary, WestPoint Home LLC. WestPoint Home LLC is engaged in manufacturing, sourcing, marketing, distributing and selling home fashion consumer products.
- Pharma: We conduct our Pharma segment through our wholly owned subsidiary, Vivus LLC. Vivus is a specialty pharmaceutical company with two approved therapies, two product candidates in active clinical development, and two product candidates in early- stage development.
Summary All Other Segments Financial Results
Three Months Ended | ||
All Other Operating Segments (1) | March 31, | |
($Millions) | 2024 | 2023 |
Selected Income Statement Data: | ||
Net sales and other revenue from | $162 | $179 |
operations | ||
Adjusted EBITDA(2) | 23 | 23 |
Net income (loss) | 2 | 1 |
Adjusted EBITDA attributable to IEP (2) | 22 | 20 |
Net income (loss) attributable to IEP | 2 | - |
Capital Expenditures | $3 | $2 |
Highlights and Recent Developments
- Q1 2024 Adjusted EBITDA attributable to IEP for all other segments was $22 million compared to $20 million for Q1 2023
- Food Packaging Results
- Food Packaging Q1 2024 Adjusted EBITDA attributable to IEP decreased by $4 million compared to prior year quarter primarily due to softening demand
- Home Fashion Results
- Home Fashion Q1 2024 Adjusted EBITDA increased by $1 million compared to Q1 2023 primarily driven by margin improvement offset by lower sales
- Pharma Results
- Pharma Adjusted Q1 2024 Adjusted EBITDA increased by $5 million compared to Q1 2023 due to higher volumes and lower operating expenses
(1) | All Other operating segments include Food Packaging, Home Fashion, and Pharma. Results for each of these separate segments can be found in our Form 10-Q | 9 |
filed with the SEC | ||
(2) | Refer to the Non-GAAP Reconciliations in the Appendix |
Financial Performance
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Disclaimer
Icahn Enterprises LP published this content on 08 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 08 May 2024 13:38:07 UTC.
