Earnings call transcript Q1 2023

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Operator

Good morning and welcome to the Icahn Enterprises L.P. Q1 2023 Earnings Call with Jesse Lynn, General Counsel; David Willetts, President and CEO; and Ted Papapostolou, Chief Financial Officer.

I would now like to hand the call over to Jesse Lynn, who will read their opening statement.

Jesse Lynn

Thank you, operator. The Private Securities Litigation Reform Act of 1995 provides a Safe Harbor for forward-looking statement we make in this presentation, including statements regarding our future performance and plans for our businesses and potential acquisitions.

not identified seeks, such of and estimates, and but be intends, expects, similar financial may about include believes, statements Enterprises plans, will, are performance statement of by future L.P. as words anticipates, meaning the Icahn Forward-looking expected to business limited or words and its subsidiaries.

our outcomes Securities factors materially of results, from of Exchange unknown and Actual that known economic and due discussed uncertainties, expectations competitive, the and COVID-XX and the other the risks, events, other filings our Commission, including may factors pandemic. differ duration and and severity, are in variety with to legal a magnitude including

statement, is no except as should realized. assurance no expectations our otherwise We required there by obligation will or assume update law. be forward-looking circumstances Accordingly, to change that any revise

this also be presentation measures financial financial the This A measures. certain in financial found such the measures includes reconciliation comparable non-GAAP of of most presentation. GAAP can directly to non-GAAP back

turn it I'll our Officer. over Executive Willetts, now to David Chief

David Willetts

Thank the Enterprises first you, quarter welcome to and conference call. Icahn earnings XXXX Good morning Jesse.

call, on QX be is results for then Papapostolou, Financial Officer. our today's Together, overview we'll and me Joining available questions. of Chief provide an Ted

the quarter, raised in short this Before we into After the and concerns need issue addresses mischaracterizations the results report a to report. address we'll get the released call, I of seller this week. last response which

IEP has and of success. of There are billion additional now. funds the a few I'd $X.X in for we're investment address high level on future to $X liquidity hand points cash well-positioned and billion like

reporting. in of integrity We in our have the confidence financials our presented full

comparable on of are book audited valuations. or of The historic remaining market our values primarily valued either securities mark-to-market or NAV basis EBITDA. GAAP XX% are valuations external XX% a using comprised

$X firm through billion of selling over the assessment return Since companies. dividend successful from sales We liquidity XXXX, to of companies. generate long-term ability of our to is on based has selling capital operations, investments, unitholders controlled Our over IEP's generated basis. policy cash and

improvement efforts companies Our operating have year. last been the over of intense subject the

the We've results the starting the management companies. not we're overall tangible and the companies. in performance teams with many pleased Although our complete, of augmented trajectory company's improvements and and we're to of of see upgraded

confidence We great in their have potential.

results, Plus for large XXXX prior bankruptcy, Onto first quarter the QX included for down year, Auto million. versus $XXX results non-cash our were up that charge one-time but

the March For and $XXX compared quarter million a of one, XXst, of we income to of EBITDA $XXX had adjusted and of million million XXXX. ended loss three net months million for EBITDA adjusted $XXX $XXX

one the declared a we're X.X%, For with crack XXXX. investment XXXX our an had $XX.XX markets. quarter XXXX, one funds negative quarter of CVI certain CVI flat with a XXXX versus volatility in volumes. quarter largely performance, per ended dividend due spreads to strong of quarter reflecting increase $X.XX in continued for return one seeing the share

Partners, also relatively flat ammonia quarter for CVR due prior decrease to UAM. and pricing compared largely in year one XXXX called to performed UAM,

is aggressively reduce continued process Services, back in supply of of over strong vendors XXXX. in and with year. are compared our team greatly model. working working quarter prior at Automotive the first For being chain, to and remained half The the our costs, we growth reduce simplify to forecast finalized Contracts X% revenue materials improvements

flat not which things, in at of compared other among are asset XXst, value to asset certain $X.X net XXXX. net billion quarter in the as Indicative December as end GAAP value earnings included indicative above. subsidiaries, our Our fair of report relatively remained changes value includes

additional units. $X in The distribution IEP Board declared payable a for quarterly cash

of to over segments. me Ted let all for our discussion that, detailed of With it turn

Ted Papapostolou

of our segments Thank and consolidated then of operating the the highlight sheet. our and results our reviewing balance performance strength by I you, David. comment will begin on

EBITDA QX regarding loss we more segments. $XXX had million QX to net and $XXX of our net income XXXX, adjusted of adjusted the of $XXX performance million individual million provide compared I $XXX For detail will and million of of EBITDA a for XXXX.

had the quarter, return for negative from which short by performance of by three sector in primarily The investment part was offset funds healthcare X.X% investments. positive a our driven positions,

of For investment the while the had X.X%. XX% X.X% attribution other a of funds QX compared end positions notional quarter, XX% X.X% to and a year of net performance negative short end. long had net respectively, attribution at exposure The and a positions of performance short positive short exposure notional of at

$X approximately funds was end. quarter Our in investment billion as of the

year reported to XXXX, In in for now million billion of prior compared $XXX million to was billion $XXX $X.X XXXX. the XXXX segment. to quarter. our QX net QX QX Adjusted And for segment Energy our compared EBITDA sales $X.X Energy

cost negative $XX.XX QX XXXX related margin year barrel crack The $XX.XX quarter. prior throughput the in with million refining the was of $XX to a compared continue widening our impact refining rents of increase per in business was have spreads. primarily to due to This expense on quarter.

UAN to gate $XXX by realized $XXX ton compared when year per prices ton quarter. and X% to average for decreased XX% the to XXXX by decreased per QX prior ammonia

Service $XX million. The our QX the contributed of the of improvement to XXXX And contributed now segment. Plus was XXXX. deconsolidation million to $XX a $XX as adjusted Automotive EBITDA business million Auto while $X QX improvement, million, compared

QX segment million the due in deconsolidation primarily sales other quarter. net $XXX decrease is decrease Auto year XXXX were The of a from for Plus. of prior to revenue revenues $XXX and Auto million, the

down $XXX Automotive Service million and $XX revenues were revenues up Part Automotive were million.

removed Plus's in was recorded Auto million, $XXX segment. which was non-cash resulted charge bankruptcy. company within quarter, the holding the value the a During due This carrying to

Real in The and business for Now, was other by compared flat increase to primarily of quarter. to year-over-year. revenues XXXX. million to compared which $X $X lots segment. was revenues QX finished XXXX sales prior in decrease was XXXX. Estate the an million during net offset The by part million EBITDA Adjusted QX to $X decreased our business was QX development Resort year the leasing the XXXX, attributable sale within during XXXX

will non-payment had value tenant a facts The estimated a rise second net termination, and circumstances, assess potential quarter. terminated of be the for for Subsequent impairment We with during we $XXX property was quarter $XX and other Any value. book high impact lease time. event that land million, of the at to with impairment the a consider along triggering end, of cannot which at a commercial we this million property. potential

Other for EBITDA were improved to prior the turning other case and QX sales other revenues all quarter. XXXX job or This compared as improved has to by XXXX to cost. flat compared prior the adjusted and as quarter. a to great The Now, relatively million segments compared QX periods XX% our net company done operating managing segments. for team year $X prior the year manufacturing efficiencies

quarter. negatively to Home as prior to Fashion's retail adjusted year by $X They EBITDA continue in be compared the business million the and particularly impacted decreased by ecommerce.

The Pharma territories. segment's $X of team to XXXX quarter. The is year adjusted by in Qsymia as focused prior EBITDA QX management various improved million the on for compared the expansion

the the with company liquidity totaling and subsidiaries attractive Now, of We to the of in cash, at we quarter equivalents, cash take our to revolver investment and the each $X.X at approximately availability funds, opportunities. our our advantage maintain billion. operating ended holding liquidity, ample

to $XXX undrawn Our of take subsidiaries credit have attractive them opportunities. of approximately to million enable and advantage of $XXX facilities cash million

value operating building focus to on liquidity to and capitalize existing outside continue we us on opportunities summary, maintaining to In asset and within enable our segments.

Thank up can the you. you please Operator, open questions? call for

David Willetts

seller on all It care. to report. encourage be Take quarterly you are forward talking you thank issued call. for to your you o'clock no next look We response questions. We report Do the time. there approximately Apparently, the to in XX we're today. short around issuing the to for look should

Operator

And now disconnect. thank may participation and your for you you

Icahn Enterprises (IEP) 10 May 232023 Q1 Earnings call transcript