IEP - Earnings call 3 2023 | Icahn Enterprises L.P.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning, and welcome to the Icahn Enterprises L.P.

Third Quarter 2023 Earnings Call with Jesse Lynn, General Counsel; David Willetts, President and CEO; and Rob Flint, Director of Accounting.

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

Jesse Lynn

Thank you, operator. 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. .

that not identified seeks, such and of due and as unknown are the no estimates, and uncertainties and may but from forward-looking Accordingly, be intends, will risks, expects, similar materially financial may We no should about expectations filings Commission, other factors be differ events, include, change, believes, statements there our a in known required results with Enterprises to plans, will any are assume discussed its performance statements of statements circumstances by of future expectations obligation L.P. as Securities including words otherwise variety and our anticipates, law. economic, other meaning is Exchange by update the Icahn Forward-looking and to that expected revise to, and business except subsidiaries. Actual limited our or realized. competitive, assurance outcomes words and legal factors. or

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

Enterprises net amounts other we present are will discuss fair EBITDA asset otherwise net also attributable includes, in specified. Indicative unless our Icahn among as included not indicative We of certain value net All things, and income asset the in which changes value. value subsidiaries, GAAP to earnings. are

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

David Willetts

you, Thank Jesse.

I'll third and end. questions be brief of which the is last last We're for our Ted is year improvement Rob over in Director performance, a Flint, and of at quarter. pleased me overview today. who Joining filling results, available the with shows then call Accounting, for quarter quarter X we'll today on provide

QX compared net increase over million, million, $XXX is million 'XX. 'XX. improvement loss million an which was which of was QX $XXX quarter's EBITDA $X to an of is Adjusted $XXX Third

Our solid by with year-over-year each of authorized cost operating well, posting has operating benefited strong is companies continued spreads, RINs them total a good on and CVI $X reduced a gains crack have dividend. performed basis. utilization,

Our performance year-over-year net EBITDA. Automotive strong on income and adjusted segment posted both

to previously a have and indicated, number the we of in As portfolio are quarter. continuing Carl restructure positions the has exited

This quarter, negative the return X.X%, a energy investment driven sector of funds by had primarily shorts.

is QX quarter. net asset $XXX per is billion, a million distribution $X.X is the last QX Board quarterly which approved and ended at 'XX versus with quarter up Indicative 'XX. value $X versus consistent down $XXX which The unit, depository million

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

Robert Flint

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

was the net the funds 'XX, an of part offset of from negative more an million year energy detail of which market shorts individual $X return performance by we EBITDA $XXX driven the $XXX the hedges. had by QX X.X% quarter, investment a quarter. was performance had to of million, and segments. The prior compared of For provide regarding our now for 'XX. $XXX broad in I QX primarily which negative million, increase QX will of sector million adjusted loss a improvement was

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

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

per RINs billion, when crack $XXX and throughput dividend was share as net share ton $XX.XX average quarter. prior primarily QX UAN margin the $XXX compared to million to the compared part of realized to a prior billion $XXX per year ammonia to compared by This lower XX% related $XX.XX in Adjusted was special to gate million 'XX, Energy 'XX lower $X.X QX per barrel decreased QX our $X.XX our to prices sales reported spreads year now favorable declared $X.XX to per year valuations, per prior year increase $XXX quarter. quarter. Energy EBITDA in inventory the by compared by for offset prior expense dividend. in ton to QX for And $X.X decreased segment. 'XX cash XX% was 'XX to and In compared CDI and refining segment due in QX quarter. 'XX. the

year other turning our 'XX from for QX million a $XXX prior a $XX improvement $XX was million million million, to the quarter. quarter, Now of quarter. segment. the revenues Automotive compared the Adjusted to as and Automotive net decrease prior EBITDA were $XXX year sales

offset revenues compared parts Plus Aftermarket down service deconsolidation QX by QX million in January 'XX, XX, reduced as XXXX. the the Automotive and pricing. locations unprofitable $X were primarily $XXX were million compared count, improved to Auto to revenues of closure on 'XX, by part by car of down driven driven

QX of to sales by occupancy for turning the million increased Club. million $X home sale investment for development resort an quarter, fees increased Adjusted quarter 'XX rates million, to driven $XX year Now at 'XX, and membership Country of at to EBITDA hotel was compared our other by $XX the and revenues QX by driven million sales. property compared increased $XX Real net and prior Estate segment. increased our our

prior was to compared operating turn by compared we'll net all million prior QX quarter. year Adjusted $XX $X 'XX, for and our to segments Now million EBITDA increased to for segments. other operating quarter. revenues the million for QX 'XX other year sales $X other

The million pricing XX% to Fashion $X compared EBITDA increased Pharma in prior due distribution prior management to costs. Packaging margin QX and segment's to 'XX million $X margin prior Food quarter gross million and adjusted due due compared EBITDA Home improvement. to mainly improved or primarily adjusted compared improved year to improved quarter, as 'XX initiatives. to QX by as costs for as adjusted primarily EBITDA lower year by year for by reductions $X quarter, material

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

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

asset summary, and capitalize call the you outside to you. Operator, maintaining Thank building value to please liquidity operating opportunities existing open to enable focus can within we on segments. In and us continue on for questions? our

Operator

comes Daniel of Fannon with question first Our the line Instructions] Jefferies. [Operator from

Daniel Fannon

to the about wanting talk fund. was I

we and performance, about exposure the quarter -- talked funds underperformed. the the short, You was down of the being start see market still the being the net short at still

I made you've think initially to you some the changes So portfolio. said

upon Just where curious be terms to you it as based of to getting think where you in you previously the would in in last will are quarter outlined what process strategy? change of

David Willetts

question. the for you Thank

the Here's quarter well, are I'd in of the quarter. in X say every the what drivers we've -- the maybe market taking the drivers funds There X beginning down the about been hedges for -- funds. last this The since broad year. funds

quarter, third broad second market hedges down. So first quarter quarter, have . come and

we been we have If held versus our position. a meet think number position we've been probably evaluating of rate. we've we've as the you've and it it appropriate seen, positions long is what that hurdle longer bar, exiting as exiting been Secondly, an the doesn't every scrutinizing

and So been our been we've have down longs up balances building skinning cash there.

commodities quarter, slightly take of names the Say you this both down the to funds, any specific they're are includes movement terms That at in CVI third look to volatility. single item negative positions the and a which or that so. manage intended when X% offset in

strategy. at take executed we've the we it So and when a look

going execute on we're when strategy. our our loans to versus fourth at want pretty good to generally as quarter. we'd the We go where the be. we to And continue to execute continue we into and a where we repositioning shorts look are in position We're

Daniel Fannon

on in or think being shorts And name? net more -- still about we of market, that exposure that that. should follow up just terms single shorts the Does as broad to

David Willetts

broad have hedges. the look market positions it, market for But broad a when take overall short have down. coming still We I at been

frankly, broad shorts, name outweigh our single market hedges. Our

been a last quarters. the in over has has few that that So crept change

Daniel Fannon

remind think fund the utilize about you And Understood. balance Can tell or position you sheet. us as next you liquidity you're the liquidity your market your when the maturity to And seeing opportunities shifting us to debt just your investment have to then in in what opportunistically or debt? your back here, today? for is buy versus

David Willetts

Sure.

September We bonds unsecured have coming of this year. billion $X.X due of in coming

particularly We Right the now, have of IEP bottom evaluating. cash at and $X.X as you see, can hand isn't on favorable. billion market we're

have we we So but we're what redeem options, to to options a where refinance. or have, in either we're position evaluating

next we months get that's quarters. and watching we're what the So as through

Daniel Fannon

the Understood. And the on just dollar then unit. distribution, per

of the you on liquidity support -- be you were at the if businesses? this is looking out, we of that and how were maintain Should a the should at the trying the be be just As where the if we paid can Board flows to the we incorporating and of understand from the basis? underlying think Just cash sheet? about balance off looking and sustainable management sustainability of coming dividend what see team to coming it

David Willetts

every quarter. of looks Board several all The in at more those factors

every forward. at So quarter. single each our performance, We of going liquidity on for hand, one economic those projections positions look

Operator

from the of Investors. line comes It Northeast with Mechem Chapin

Chapin Mechem

had question quarter Just for continued. a Viskase. Good you year-over-year on

bit great. And X a little sequential, just I'm it's the -- bit little curious on versus but a the first down So quarters year. of the that's like

think you just assume improved which the I margins, I'm of your you'd improvements gross said comments last sort were so And coming and call, mentioned there year-over-year. some is curious, on I that in still

you're I'm it's the if what's color that additional or guess line, from probably I or front? has pricing can just you sort as So of top seeing on if what progressed wondering provide year just volumes any

David Willetts

about. demands things right Several just revenue headwinds the think Sure, volumes are There The problem. are Obviously, Chapin. down. not case that's now. to

Folks proteins some that based casings. been of of a but see it's has You products destocking, or the pork also based use consumers choosing. that soften are what can market. cheaper wheat-based a are little Chicken doing bit our than the bit across on

and and QX. had embargoes put present cross-border in in line bit a we not Russia finally Ukraine, was QX which on challenged. place top casings, of sales Revenue the been any has

That softer predicted hoped. it the revenue climb, than and harder hill issue further -- So it we is the second gets. gets the is up you said, had

QX, very to QX, So we're QX. opportunities straightforward able in margin take

As harder. you it take those, gets

stretch You a to the to have little next get chunk. further bit

that factory That productivity, more doing, certainly certainly with are our are of regards to with things we equipment. said, modernization regards there to

QX, out QX, are to parsed to I the those in bit gains being a be That's be the and in slower the right? will we of realized than All they're be, works, successful. going just felt but of challenge think,

very appropriate I'd management. been underperforming good economically team been very, to continues in some of earns a say, with actually an they've on to what been sure succeed. working casings return case contract the add that spite headwind They've customer what and this its customers the very, both that margin is very, do focused value of very something contracts, job has revenue is aggressively making exit that parties them the on to where and giving of

a that they've So results QX. that continues power has Does that, and in good in lot it QX QX very as and of been the at help? to

Operator

the Andrew Berg with Post Advisory Group. It line comes of from

Andrew Berg

to the quarter, you in the out returns out if segment. the strip Going parse energy Can Investment to what back were shorts? were you the

David Willetts

can... I

Andrew Berg

that that on energy actually the position Was up being you in ex all of else? the short pretty quarter were and everything short the decline much

David Willetts

do come Andrew, What to is precise I cavalierly, figure. with up want don't a

right? haven't drill CVI, the a directionally, the adjusted up been call. because have would for that calculated related we Directionally, figure is right? the say But rather I'll what precise not had precisely this out to if I'd fund shorts you So energy give done

Andrew Berg

I enough. was obviously the something sort have the energy Good single-digit but in low not of up expecting in short. area, factored

where line negative Any of you quarter? willing are that change of because you would with would sentiment? energy been in don't with it's me then what the those comment otherwise. kind still say expressing strike And on short, expectations or to So want in the have to that as -- it's middle

David Willetts

With shorts? the energy

Andrew Berg

Yes.

David Willetts

in position, other or Right is Andrew, are X longs long area. our CVI, energy and have we now, frankly, X we the in

volatility so on we're we're to we're to don't bet particular trying our have income do not energy make to trying shorts. So the we a in swings is What manage trying long that down. our and to and short balance go That's point investment with energy It's earnings not our going is a It's positions. the saying energy energy to of exposure. trying the specific wild shorts.

Andrew Berg

basis the EBITDA is With is to an year-over-year? latter, aftermarket? the services commentary it's can that on Or EBITDA basis apples-to-apples And million million, the deconsolidation a the that automotive the adjusted of was what $X of stand-alone Okay. services? any just us $XX give reflection the respect if on automotive, reflecting of adjusted versus a you

David Willetts

I terms but have some be a use to a little careful. the this I'll due little We answer question. to casually,

contributed also operations. I'm I'd And looking piece, de up these earnings what So from -- segment subsegment minimis its has services is, the in for services, the significantly very services parts were today year-over-year. from very, if gone this residual has at of detail, the small majority business, the business parts say this from quarter the EBITDA

Plus, of was to on and Auto I contrast you amount services has, So very some year-over-year put money really board. woken try away up went very things. and X last it frankly, numbers EBITDA, to happened what a losing started good sizable when year on the which have

the you services revenue the So half is flat. however, the of is of was to is due half to revenue impact basically the improvement, away. going when EBITDA, it line, Auto at revenue, that Auto look it say the since roughly services going clearly away Plus I'd due Plus of

Andrew Berg

They're to X Okay. of And with balance have guys [ until somebody to Unlike callable the typical most ]. respect businesses, sheet. XX the companies respect the going ton to concerns current Obviously, year. prior a then June with not next debt question, on who sheet. about balance lastly, you have liquidity operating cover asked

current. breakage expectation that guys be the with deal should tend so that of the as maturities I expectation that? to refinancing And to would shouldn't And go be recall, same the will that, you cost, because closer wait to the here,

David Willetts

month is that we historical refinance, month unusual exactly window is markets to right pattern. right look by are it. -- now is think, I to this when just the if our refinance to The there underscore so I window determine That, at the right

what would I determine accurate. closely past to So we monitoring just say do. We're is every month

Operator

ladies And turn with comments. Willetts our to and for David and that, Q&A gentlemen, back will I conclude session it

David Willetts

everyone, forward when a results. joining to about care. Very all look the us to Well, good. you, X thank Everyone, talk for good have We speaking the QX we Take results. for quarter you afternoon.

Operator

all for participating. you And thank

now disconnect. may You

Icahn Enterprises (IEP) 3 Nov 232023 Q3 Earnings call transcript