IEP - Earnings call transcript Q2 2024

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Operator

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

Second Quarter 2024 Earnings Call with Andrew Teno, President and CEO; 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 statements. Please go ahead.

Robert Flint

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

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

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

Andrew Teno

from significant few segment, the names went down Between CVI in up million quarter decline expectations. $XXX NAV a the Clearly, Investments our wasn't in prior to quarter. and a

our our As both before, strategy. and portfolio will investment volatile inherent our stated have returns be activist given we in the concentration

our longer continue the at the over believe Wynnewood was to impacted We a positions unfortunately outperform fire that impacted quarter's by will profitability. term. CVI

the decline. addition, all received good RIN CVI, more the levels news decline underperformed its basis litigation CVI of that We our small-cap detracted normalized CVI's regional and saw industry for the in Circuit. strategic to U.S. cracks potential further In some, like helped quarter, offset which will outstanding involving hedge refining not but discussed entire reduce refineries. this peers, recently, has to refinery CVI. small we regarding D.C. from the actions help More exemptions hope basket, obligation. Last

CVI have in is performance updates at investment Southwest a portfolio at and hurt Bausch, Illumina. hard no we was few work, by including point. The names, this While

refining our were in the Our IFF. in to by adding exposure We position our quarter exited best performers Conduent and hedges Centuri.

Regarding our the XX%. fund's short exposure net notional was exposure,

Excluding exposure our the end. long refining XX% X% long excluding to of compares at as refining QX, hedges, exposure This net of hedges. net was quarter

efforts. cost-cutting slightly EBITDA revenue by side, up was top as and were Automotive line the headwinds offset On

back We cost the the in expect improvement EBITDA year. sourcing drive and the half that cutting will initiatives of

continue our make in plan. We to transformation progress

yet XX to has have and rent pipeline currently up, commenced. are signed, leasing leases that but ramp Our we not continues

the On holding company $X.X the quarter $X.X at balance and sheet, we the funds. had cash of at at billion end, billion

and XXXX. May is our next our During in we maturity also XXXX the notes quarter, refinanced

hand quarter. I will investment our distribution now for belief Given it our the the cash are Ted in and we to maintaining discuss to over more the comfortable detail. financials position $X in portfolio,

Ted Papapostolou

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

realized Energy to while in the had now a short our QX of positions for a in and $XX.XX fire of and due by crack year XX.X%, interest was to 'XX a refining segment's $X.X X.X% throughputs 'XX compared was Investment $XX.XX refining return lower to spreads the at quarter. company's Wynnewood quarter margin the of This 'XX. refinery. QX margins reduced decrease holding prior primarily positive other related driven performance in The quarter. average to second throughput negative segment. gate QX of Long a XX% a the X.X%. a to of $XXX prices and $XX per to ton share. QX segment. had quarter. million performance positions attribution was $XXX funds Turning for per cash attribution CVI prior as by had per end. And billion year The funds to approximately in ammonia decreased per when dividend $X.XX EBITDA to Energy the XX% barrel compared UAN $XXX by for quarter was ton 'XX declared our decreased to compared decrease million negative

reduced reduced of compared or 'XX. a end revenues by is our other and sold QX inventory $X initiatives, Now to reduced almost of prior was the cutting have QX 'XX These offset consumer and maintenance. adjusted for EBITDA million improved acquired which EBITDA for automotive its QX through to improve Services by million as weaker limited to country primarily year clubs, quarter, on recently the sales decreased driven up the club of the are sales compared the as development, primarily single-family QX Automotive Estate's Packaging's quarter, country by not prior from 'XX compared driven peers. quarter, year our to to expecting adjusted car decreased now operating count. And home ramping prior EBITDA year by business. $X out Real all dissimilar in $X of At development, we're and 'XX net by segment. trends XXXX. Food to is decreased homes. XXXX beginning to of mix our while cost single-family the we Adjusted at by Automotive one our million our segments. compared QX turning sales able other margin and to 'XX spending are driven million industry repairs the $XX EBITDA

capital similar energy productivity. Home will to the stable, be Although the enhance and modernize year to plants. volumes and the adjusted lower, prior margins. at opportunities in of year EBITDA decreased which mainly the is there mix Fashion's management compared prior by and some are business international labor to period, efficiency of $X at the greatly was as working continue efficiency our plants, lines to Materials plan to driven from the The improve less certain on attractive by business. quarter, were lower demand team million and

to U.S. in global year the million improved During prescription quarter, invested adjusted for due U.K. the grow hospitality business and QX 'XX $X of segment's we compared small quarter, mainly to strategic exclusivity EBITDA broaden the growth. acquisition our patent as by the a higher Vivus' footprint. Pharma in taken to domestic to to product which launches end of has at international margins. broadens Management mid-XXXX, cost-cutting eventually will X likely starting such Europe Qsymia 'XX other as respectively. generic and strategic versions, competitors initiatives product potential and erode competitors in markets These while the X planning launch actions will partnerships. to and prior

and maintain each Now our liquidity turning to of to liquidity. opportunities. of advantage subsidiaries our operating at at the holding attractive take We company

and can of existing us funds had the on on billion. In end, we $X.X liquidity questions? to please operating in building had revolver the opportunities cash continue summary, As asset cash you. billion, our Operator, open Thank availability the holding of $X.X our value and and of company call focus to investments and quarter outside enable segments. you capitalize and within to maintaining for subsidiaries up

Operator

with comes Fannon the Jefferies. Please and questions, line of stand by Dan it Instructions] [Operator from for our first

Daniel Fannon

quarter, wanted which I on but So fund to so volatile. follow obviously, kind for you of outlined, been not quite just week the so and last performance up the or the much has

backdrop the the more the and/or macro I As changes and you guess, some just you've additional you guess, with a thoughts while today any, the think versus context how hedges given fund might ago. we about the in that short of be I made, positioned transitioned different of

Andrew Teno

I strategy, hedged. value at very time. we have way run. And try believe markets in I'd utility, the improve believe gap. over is at it page, this significant a looking had longs volatile. They've going to the our say be you of Southwest a look is activist should right? long then Gas, think So on in that it would Centuri And position their stable. been have one we're a can have say ourselves you very listed bit for our our we the much the hiccup keep if some and business very and are the Earnings to and should X our book that quite holdings, we unlock them a as in ROE We've top they but good separation, bridge

growing, CEO ROE at fantastic this a and improve who bit AI is about much very got think look its to of It's results the say, look CEO. showing ]. is there's a new morning, were, value good you impact lot even you If operations, AEP, If got a Bausch, Caesars, is CapEx darn new there improvement at I'd flow a it's is that asset a in story. cash situation, at look complicated we just a obviously, company a business regulatory [ hit tailwind. a is declining, -- IFF has that this base but EBITDA an is we inflecting. a should is And inherent and free pretty of of DLCO if

have we names believe catalysts, longs, some you indexes. have we we in these right? of believe have will way the you broad our names, our more long-winded of saying, plenty utilities, AEP, So of outperform and over giant to those market a edge, hedge others, to Like believe rely kind longs on electric for of longs our time. In basket me easier

Daniel Fannon

are a has to Understood. Cost you understand question a trying Okay. just focus. in been And turnaround? where I'm auto the That's cutting the kind think on business. you helpful. of

a to of think the if coming kind know of just don't or few you of we leases business. where line. are stats just You the analogy terms want kind in -- that gave baseball on we But I evolution around of use

Andrew Teno

you estate peers, doing aren't the to look I I market we multiyears, look got X% a you've think, EBITDA we've there's that. have a are need of pieces work efforts, we bit. over any have there, we of that at then got I whether to on we cost-cutting -- So closer need on margins think that no signed our And the right? So around boxes commence, have reason it's that, XX%. then start us look to empty peers, clicking volumes moving to get industry at X.X%, to if favors. the and we're shouldn't leases the lot think and service to and bunch about has business, There's to you that talking And a fill. And we leases [indiscernible] time, where turn efforts, that at real or

to empty say need national I'd the to fill. would next that The we real can the meaningfully more on we my be a they'd way numbers. to of like we of then like on to one sudden, team to into And boxes we lease. need identify So that We if who then is, should And occupy. get be host be XX, to us, feel, started. XX estate large to flip explains located we me it could retailers that locations, to a work get across, all find able

that. it. think -- work better it hope we're show the get probably we've max quarters, over gets that reflect the for point to and I at least the better where maybe amount amount to results I with done So the pending the of And

Operator

Our next Group. question Berg from of Advisory with the comes line Andrew Post

Andrew Berg

money pretty a the at holding you is hundred the entity And question in couple million. that fund in and the Or $XXX particular company there? million, guys what liquidity the the swings to I was down fund just But that of hedge respect going the robust. of significant on other Just know a mass, movement the any the fund have for? day. hedge was across movements with was cash can moved quick in into equities Obviously,

Andrew Teno

where X quarter we the we the don't an the first so holding and just a of pay were odd of pay quarter. them big out timing in out to company in the distributions the thing of the distribution It's payment second. cash in kind movement X Andrew, to

Operator

Bruce of One our Investment line with Management. moment it next the Northeast for question, and from comes Monrad

Bruce Monrad

help to it's have the right? heard Packaging. say the you question, in that? I reference a you flat. I me but Food I were mostly demand, Is units if slides that on see I thought on And that Can softening okay,

Andrew Teno

margins down. is the Yes, kilometer flat, but are the

line a I quarterly give million mentioned, we the volume there softened one about of there of is very on context which was this the and a last of Russian the business, you've a year I story sanctions, that that's bit. repeat margin, can't sales drop good comparative there, at with So the The is seen year-over-year basis, that because was top million up replaced $X that year. business pricing a much And quarter. you that not could and EBITDA more same of the lower that's The that that's reasons it's -- that's drop. around $X that main that at the was And probably fiber margin.

Bruce Monrad

Those sales, at speak? is this like -- of is who supplying around, is sort shift that oil Russia to moment, this so so

Andrew Teno

Yes. fulfillment. like the it used they're getting sure EU where past. I'm not coming that from in It's the not to

Bruce Monrad

Okay. question, And a big picture I could. if

for of the -- America K, sort And geography your room would think with your which from So consolidation? benefit in thinking greatest that? my delineates XX-K, is Packaging, North if is, strategically that margins I'm that you maybe improvement. the that, any the would do Food Or comments question think I on one from

Andrew Teno

that, Yes. and we it could improvements, waste modernize just the is plan begin capital but America capital a stage early And historical one planning thing the And is capital depending any at there or the plants, and many next there. require the we're of is of potentially One be some could intensive. come and the combination form I many still reduce tackle mentioned to potentially on it say would levels. in where We're been half there a to would in way it North factors, battling year. previous one that probably But this in to not process that, be. there. opportunities across the and which in start there'll could the get very to to the waste back level in have working at be equipment, to But of is of facing more trying but infusion to still outline management on and thereof. high issue And that debt is it U.S. It's we're second -- waste implement on calls our

Operator

Teno no I Andrew I call back questions turn to further in for queue, the remarks. will As see final the

Andrew Teno

Thank you very much.

strategy. joining. And that with are So our to like reminder thanks, just for everyone, I'd intensely we at here leave Icahn, a focused on activism

this have will not our simply we a Bye. and fruit lumpy and contest. on efforts as shareholders. businesses, bear we speak will proxy work are both our be for unique including and Icahn to the frequently entire our at tool the We'll we control history Board businesses, activist join tender to to and track for figure the allows times, do key shareholder to continue a willingness at which returns record, value. ability possess. Though soon. Investment Furthermore, advantages, our they all most name segment invited believe liquidity, focus sheet and to us have long given cooperatively to We our the changes wage brand drive It is that and with them balance dissatisfying

Operator

all in thank conference. participating you for today's And

disconnect. now may You

Icahn Enterprises (IEP) 7 Aug 242024 Q2 Earnings call transcript