IEP - Earnings call transcript Q1 2024

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Operator

Good morning, and welcome to the Icahn Enterprises LP's First Quarter 2024 Earnings Conference Call with Andrew Teno, President and Chief Executive Officer; Ted Papapostolou, Chief Financial Officer; and Robert Flint, Chief Accounting Officer. I would now like to hand the call over to Robert Flint, who will read the opening statement.

Robert Flint

Thank you, operator. The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements that 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 LP and its subsidiaries. discussed outcomes variety materially risks, Commission, of other that and due our uncertainties including results with factors a filings and to known are economic, events, competitive, may and other from differ expectations and the legal Actual Securities our factors. Exchange in and unknown is no expectations Accordingly, that there will be our assurance realized. revise required We assume as should otherwise by circumstances statements no obligation any to change, forward-looking update law. or except

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

also changes now our not our attributable GAAP We otherwise asset things, in net the and Indicative earnings. All fair specified. unless included I'll in net certain over Chief asset Andrew amounts Executive are indicative it are discuss present income we value will value. which to other value Teno, includes, EBITDA Enterprises to among of turn Officer. Icahn net subsidiaries,

Andrew Teno

you, of we QX a for results, brief Rob. overview questions. then be available will provide and I Thank will

First XXXX. quarter $XX net of an QX over loss $XXX million improvement was of million,

EBITDA an $XX compared increase QX $XXX quarter million was XXXX. of First to adjusted million,

the ended Indicative net $X $XXX billion, up from at asset value the quarter approximately million quarter. prior

of be will can believe are it attractive. opportunities there see our benefited from the wider-than-usual We bases. space something lower to CVI and find terms controlled In has and if by swirling businesses, product RINs expense accretive refined offset disciplined refining we in

initiatives cash working division drive service key earnings flow. is auto The to several and on

sourcing product include inventory note reduction. particular of One and

real with estate, owned are we our strides plans. making our transformation Regarding solid automotive

and real service key to the team the greenfields, and through outparcel further added leasing, optimize estate the have optimizations store to auto development. personnel business We portfolio

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

the Holdings, a have our to impact offset were positive If increased of subtract investment exposure, would We and utility of through for shortage, to are refining Energy long value the demand. particular performance impact additional AI-related of quarter. increased generation the you returns One the X.X% Southwest need our in center our support and another been profitability contributor beneficiaries grid positions, growing which and which completed that the in Gas the for believe AEP, Centuri out our one Centuri to recently of data was IPO.

X% Our This headline energy when is of exposure net short the the of hedges. as energy X% of net excluding net XX% adjust compares long hedges. of for a year-end, to exposure exposure short you

recent you see, activist slightly focusing we As our and our can continue more net efforts. trend of on getting long

of distribution discussion that, $X With Board the detailed quarterly let to with is Ted our all consistent over segments. per for of approved Additionally, a last me unit, which a it turn quarter. depositary

Ted Papapostolou

Andrew. I by our Thank the the will on you, performance our strength of reviewing balance of begin comment segments and sheet.

attribution of the of Investment the to $X.X holding was quarter our a of funds short negative performance XX.X%, in XX.X%. had for The interest as had The positions while positions Turning performance fund positive a negative of Long quarter. X.X% and return attribution billion a end. other had company's segment. approximately

favorable expenses to quarter. throughput $XXX prior Energy EBITDA $XX.XX This in 'XX was primarily million million turning reduced and QX year segment. is segment's our compared was 'XX QX crack decrease revaluation. lower offset barrel And $XX.XX per margin part $XXX to RFS driven refining the by for now Energy in RIN QX by to spreads, 'XX. for compared

to XX% QX the ton quarter a gate ammonia CVI 'XX share. first $X.XX cash UAN when by quarter. and decreased for per year by of per dividend to compared per average XX% prior prices declared realized $XXX ton to $XXX decreased

by business. $XX during to car the as decreased Automotive our as to by QX deconsolidation turning Auto primarily driven 'XX, now quarter And million Net well year the Plus other compared revenues prior segment. reduced and for initiatives, through of sales service cutting count car maintain EBITDA $X able service which 'XX adjusted compared Automotive QX was margin to cost the improved to offset and QX Adjusted EBITDA million reduced count. 'XX. Automotive for

other And our to quarter, million to 'XX decreased net sales Real single-family sales segment. QX primarily turning Estate homes. prior million of EBITDA by reduced decreased $X year by and by $X driven and compared revenues adjusted the

million softening adjusted EBITDA quarter, to prior lower by demand. margin improvement year turning QX the segments. compared And mainly by quarter, volumes compared due EBITDA other by adjusted $X Fashion's operating $X to as Home for as due million increased 'XX decreased our Packaging's the prior year sales. offset driven Food by to lower to to

each advantage Pharma take our 'XX prior subsidiaries by of improved million opportunities. expenses. at and the the segment's QX as and for compared at holding adjusted We liquidity to turning to operating liquidity. of higher $X mainly due quarter, lower year to our company EBITDA And to attractive maintain sales operating

quarter end, and company the the our availability $X.X and had billion. and funds cash investments of As of in had subsidiaries revolver holding $X.X billion cash of

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

Operator

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

Daniel Fannon

up follow wanted comments I to on CVI. your around Andrew,

they've about that looking you looking or options. know think strategic -- for call, their something exploring the strategic said -- something around talked I about on I accretion.

expand I hoping the you why bit could upon maybe maybe rationale So the and of that behind now? kind was and a timing

Andrew Teno

general, in of long-term also terms in investors. so we're Dan, and We're dealmakers. over -- CVI

basically like that at itself. we so to presents anything look And

We ago looked put we've and mentioning we wide couple felt comfortable mainly at today, years, of because the over it variety the UAN. so a that of a CVI X-K both And out from things. weeks

refining find to then execute at asset it. would And we we our are interesting, very so business. our operators. expect think -- we they're base, CVI us are running team can low-cost on And very when think you we the look at if good We good something

Daniel Fannon

would versus the deployment or exiting So of from -- would businesses? context of that sorry, -- your through be strategic that any to capital the more adding M&A existing

Andrew Teno

just at look is opportunities, all I'd whatever we available. say

Daniel Fannon

then about And the path then sales here at in Understood. out, it moving of And like cutting the outlook the for or thinking more Is that to cost from to laid or we quarters? this should rationalization immediately for of the is focus. couple start plan we -- to If and you XXXX? kind the look in sales there? seems Or next you've recovery are and forward game still -- road improve much cost Auto just playbook map the very is really segment.

Andrew Teno

Yes.

-- we if opportunity auto general think that's a in in you I space, the for demand not we at to I'd all So just phenomenon, short-term fronts. look spectacular, hope. business, of the were when but have our market is this on But opportunities long-term service think we at kind and in we look say

I think [ the of a been we think the and Dave as CEO opportunities months, ] now kind there permanent few are has for really endless.

level about about drive our there if are We when service strategic in there the stores. on the products. a to there We opportunities higher are there gross how think margins to we're stores. We pricing, to opportunities greenfield opportunities opportunities improve relocating then we We are expand program. are the in to think have think more talk we're product done for help could we more think right? in buying, the different -- really past, how job about company all look probably so think we If of better at we're an categories, we're We the product strategic example. if sourcing,

And are so really all opportunities I think the above. the of

Daniel Fannon

backdrop more still that the opportunity than I guess in year maybe kind the what this investment then ago? areas longer. as and opposite for of this there higher environment, at environment a That's seeing opportunity that think you of not valuations just the And Or you're you're it seen level, previously. quite high given macro higher seeing maybe style you're Great. incremental where Are helpful. economic you've you a terms a in from and and/or were strong perspective activist seeing in rates, the the is about is

Just get versus in a sense opportunity set? ago maybe of trying a investment that to today year

Andrew Teno

Yes.

at are much been gems prices can getting always pretty Companies always So years, Hidden falling. Icahn I unlocked. be always that activism. an Stock are always say X I've could there's for trouble. in for opportunity and

going And looking usually we so in guess at going we I'm XX any the least opportunity. And to keep think different right given where names -- but through quarter, we to find something. we're is don't there act,

we quarter, then, disclosed. X eventually is public. or may last found became nothing I investments since have made We not publicly more that which not names, but think may

Daniel Fannon

going a that what more fund that just of state the think do lastly, just hedging and Understood. to But not a the you hedges you've as generally, where long Is of next be? progress you change this envision made. trying obviously, the think -- to do. what predict the portfolio as exposure, do kind over philosophy, the investment the when in want I and of And in incremental there's you Or to the context appreciate disclosures couple then the are you you about quarters? you're steady around the

Andrew Teno

Yes.

want don't to is I where going. the we really bet think So on market

our do pretty we've taking There large-scale from in to what we any away are stay want been changes as exposure. I short of clear, to think going probably down not to that. we're terms

appropriately off hedged. and think take down it's Carl it that And hedge think feel always levels. we go we hard could I little be based appropriate I about how like to how feel bit, our but investments, these would to at on a

I material all we but the So don't it's any evaluate something really time, foresee changes.

Operator

no over Teno the time. hand showing back to I'd further questions currently remarks. to for this Andrew I'm closing like at conference

Andrew Teno

you. Thank

that leave here our focused a Icahn I'd today activism we with So intensely strategy. to on are reminder Enterprises, like at

be will changes the this record, We to boards contests. with and and cooperatively willingness Icahn proxy us name work our drive It long wage and have shareholder to frequently allows is key advantages, join to which unique including history fellow make directors invited that value. to a the brand track

permanent to continue to will bear businesses, structure, businesses. The we Though fruit ability they all as our at speak soon. our controlled we not unitholders. We'll tool Bye. segment for do times, possess. efforts given most our activist liquidity focus balance sheet, at believe our tender and Investment and and both of everyone have can Furthermore, dissatisfying the returns be capital we entire for simply lumpy to on

Operator

conference Thank your participation. This concludes today's for you call.

have day. You may now Everyone, disconnect. wonderful a

Icahn Enterprises (IEP) 8 May 242024 Q1 Earnings call transcript