IEP - Earnings call transcript Q3 2024

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

Operator

Good morning, and welcome to Icahn Enterprise LP Third Quarter 2024 Earnings Call with Andrew Tino, President and CEO and 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 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. 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. and legal competitive, economic, other factors. including is realized. there no assurance be will expectations our that Accordingly, no to required assume circumstances We obligation change, statements any except should forward-looking as otherwise by update law. or revise

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

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

Andrew Teno

in Thank were good and the the quarter of of $XXX everyone. returns and to the than The decreased more the investment from offset Energy, second impact quarter's unitholders. NAV in you, Rob, distribution Positive declines disappointing -- performance CVR XXXX. auto fund service million from morning, by

news. good the first, So

investment our The led name approximately were and hedges our quarter. for interest our generated by and care refining single health investments lungs, returns positive significant funds We generated the income. up from X%

predominantly losses Our were we big hedges, and avoided broad any market caused by our losses. single name

the to on good. Moving so not

and quarter the decisions. lower-than-expected during regards mid-cycle to to driven Services returned In suffered The cracks was it Automotive levels either as power investment management staffing compounded further revenue unfortunately levels, below division, quarter by mid-cycle our from continued by are CVR to down uncontrollable struggle. inventory Our to has outages. that external

a replaced already members performance. Boys and already Pep see at of have management to top better can several return We

multiyear in high Service Though we low a if will I single shouldn't believe be not no double EBITDA continue our it digits to shoots, the a will the digits that Auto be over today. period, reason see that time there margins versus its until hit division potential. is while green digits, single

of the with cash the quarter of and the at cash and cash an $X.X equivalents ended company We funds. billion additional $XXX at million holding

So they of we say, significant take as to opportunities Carl have war chest arise. advantage to as likes a

call billion. investment people cash many believe Since to will -- CVR continued in to refining subsequent and this soften, we additional and return received the or that us on CVR CVR is dividend. inception offer end, We likely which tender the XXXX know, this to of when, As dividends market belief quarter has that led know CVR our will the IEP generating unfortunately, flow. over to don't deposits significant later, buy sooner $X totaling the again to It and has cycle swing proposed announce shares. the led

portfolio CVR, for our hope tender our we be maintain per to release, unitholders in launched chest, recently Carl the we in our in in investment the in Given opportunities war reduced cash know that has the a quarterly $X.XX. $X additional distribution and market the and We from to unit depositary Board both to desire the future. today believe the take the will and and may as term unitholders but the to our by disappointed decision, mentioned some returns capital lead that increased press actions near

Now to turning Investment our segment.

due tremendous data -- service AEP, utility and gas to regulatory is to gap the electricity electricity growth we and center we outcomes AI-driven management both improving considerable of names, opportunity. that At value closing our see ROE its the in business demand upside We services business. peers creation ROE utility see its we growth SWX], new X from closing utility see see a with disclosed At significant separating gap, the and gas benefiting terms In potential. demand. top [ in

We with great we management far tremendous than and a are that a company peers significant Carl believe see and ingredients at from discount yield EBITDA. significant is should back great on flow growth a to with growing its value business digital has new buying at At IFF trades asset organic he for is a increasing respect revenue improving management. high-quality margins accomplished team buying cash actively Caesars. free what Reeg and has Caesars, business XX%. a at so IFF and a shares that Tom greater

pass BLCO. I will considerable Ted hedges, approximately And cover The refining Bausch, for long. at to net X% on to short. XX% I quarter our at fund -- the see both value net now ended our the and businesses. we it BHC Adjusting was fund controlled

Ted Papapostolou

I Andrew. in the negative million and unfavorable 'XX with $XXX by and Energy QX -- $XX year by driven primarily will million RFS segment of in you, in segment. prior per quarter's a margins. valuation was impact. spreads, was decrease by outstanding This to 'XX resulting barrel inventory lower QX for Refining was 'XX. our mark-to-market QX Energy The to unplanned performance outages, begin compared crack caused unfavorable Thank throughput external impact quarter. impacted power downtime and EBITDA in obligation compared the $X.XX $XX.XX the was decrease on margin volumes

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

by operational tire and QX segment. decreased quarter. due other to at reduced automotive spending challenges revenues Auto 'XX revenues certain to year maintenance. $XX million locations our on services by and net staffing insufficient repairs to decreased as sales million compared $XX prior levels and and Automotive inventory turning such Now consumer the

to actions by signs taken winding decreased the due the seen Aftermarket to improvement. swiftly by $XX million in the already of be expected which have this to of have change business, we parts end complete address management, a and revenues including year. down is challenges the of operational We

to the sale other QX accounted to close of NFL by planned $X segments. mainly is driven single-family adjusted compared on owns an 'XX stadium during prior due which which decreased for turning emerging in Estate's investment in The decrease reduced year the desirable the $XX QX district. million sales a property site segment Now our million. XX-acre Real to homes. quarter, is EBITDA East the remaining River Nashville, to Tennessee, The 'XX, located by

We we proceeds if land believe to are the the and this exploring far successful, book have sale exceed which of current value.

led Food product Packaging 'XX in EBITDA million as $X for and quarter. to reduction to year by prior a lower QX a adjusted however, decreased Volumes in increased, the net shift have sales. mix pricing compared

overall there we plan reduce capital execute to structure. opportunities plants, impact the until While a to at cost meaningful efficiency are a equipment improve and the expect do not we modernize

decreased part Home demand million driven e-com compared $X market. from a as U.S. hospitality the to business year offset in quarter, adjusted by international EBITDA mainly business, strong by our Fashions our and prior by lower

one EBITDA higher adjusted mainly QX Recently, prescription next quarter, to growth. the with improved therapies due significant management year has our phase, segment's Pharma returns. working cleared by 'XX $X meaningful which potential the for prior we're the a milestone to assess as developmental the million to of team compared and for

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

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

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

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

Operator

[Operator Dan Instructions]. Jefferies. question with And Fannon will first our come from

Daniel Fannon

the Just the liquidity want obviously, dividend about to talk to and CVR discussion.

the investments up liquidity for just with you as the kind new obviously manage how at the overall you well level, to of as are So maintaining versus running IP dividend about business. come the the flexibilities looking to level talked

just it and/or at as of you're looking the what think about kind optimal of So liquidity company. the . is run you to with leverage level

Andrew Teno

Dan.

we So significant liquidity. first say chest war have off, of I'd just a

at to of the IEP, call you If company. $X.X billion billion it, look at have, $X.X holding we cash

cash or We the have funds. million at hedge $XXX so of

so And to to liquidity we want investments. we make significant -- retain make want we wherever whether

cycle CVI over in think an -- we will We've when when $X can't then we will dividends. we just in some attractive look, something Unfortunately, significant it's like billion we tender and think today Now crack flow made the making go will about cash. promise at back but decisions cash that to the future. swing the the you help significant think we'll And time, think cash actually investment. happen, decision, point, we really we generated we

looking I'd cash of at also only out, always we point assets. at our the do $XXX million billion not the -- the have funds, we we're but $X.X company, of the holding have

call mentioned a little that's we said, his And in have, it, some so bit he comments, and Nashville. Ted acres in

it on was decision. our a retained segment we there a Metals, it, the And that press million. good have back, north there could today be a and an you have asset And people go right? sold been out It said exploring very for XXx call a we we're PSC for, something that, So think owned called the -- could sale We it of books business. $XX while land. like reports some

come. the cash, liquidity at that job have undervalued portfolio we that to that assets to between our have between our of the we'll we plenty look out, So in prove and think

Daniel Fannon

mentioned Good. business, auto the round of And you restructuring. on kind just another then of

something Or . you in the seeing and quarter, changes the So to through? come of we think can just about is third some quickly you did changes do -- actually the quarter, improvements? of subsequent happen some where actually that management talked that fourth and those how also that that see is

Andrew Teno

Yes.

significant quarter of happened now running seen we've the So individual changes a the around changes end. organization, already. right who's the and lot --

it went made seen So soon improve worse. And quarter, a you through the got in of the we've trends change, as the now. trends quarter, worse as kind the we as and

What be we what there not seeing growth. right? and times seeing revenue reversal, we seeing think -- see seeing We that, margin So be were I be, should are same-store quite we seeing a sales not we were but that's should declined. it's year-over-year, XX% we're significant Look, -- right? not should eventually improvement. minus is seeing We're

some high Now digits. we're seeing single

improvement. well say, business we there's is when bad a were that when day. it were are poorly right? an to good good some can the them sell -- "Hey, obviously, a idea going nothing them worked we to so inventory the when money across street run so it's they of being customers there more a seeing So an show our to make the ideas to in quarter, the take a ideas. just be of of on initiatives when idea were to your It's executed, customers. run do look, I'd were we some go And -- that just tires but it's can the RFP that They already to say, we're them and out sell week going cheaper up, purchase good to So didn't

and to execution, bad ideas, it's now good us up it turn and around. So to execute

Daniel Fannon

positions both a its portfolio the Understood. as fund on And the and as investment then today question White as at mix hedges. has what long construct just highlighted well you as you and as net the transpired overall the the House given how past change Any changes the you're given look in of to or thinking this week. the about exposure the well kind

Andrew Teno

terms be able the be to say and off changes I'd table in M&A table. the nice the but too hedge of off that maybe not book, right? were a won't So use to bit many things more, rely the tool it is

CEOs article money. I there to for replacing options right, hopefully, change think as where business moving I tool activists and not And administration, away M&A. ways this will think was ago, us push more make were the highlighting that to an from the it give in journal, improve I more primary the to too they was were long and think

think, nice least will the businesses bunch It's administration be than I more CVI, towards think favorable at and look Trump a you of also if have, I to or the much refining at prior. our

Daniel Fannon

just then one, and And dividend it. on just the the outlook. last Got

versus that As knowing is others you around Like today change think dividend and CVR of think the the forward is -- also sustainability the coming about dividend what terms is here content go contemplating you the business what's CVI the liquidity back? at proposals as the current and coming can't the in off and of we with like about overall? when predict of

Andrew Teno

of something same the evaluate Yes. discussing, all the to been story important is the which part it's every our Clearly, an we've it's quarter. we but evaluate past, Look, I in back been think time. we it comes it thing

assets then we the if think and I continue our own can attractive, they're and right probably important are to are we -- that that we to to things knitting. can do stick unlock undervalued, our we that,

Operator

from Berg comes Group. Advisory question Post And next our with Andrew

Andrew Berg

real Automotive if were Or changes? spot? And which in other so, to done? Was If there just CEO we go quickly. back changes the it a management change were

Andrew Teno

Yes.

say, CEO CFO few would for have having to more were that think to that some changes the is just improve mid-level basics management were -- than back people made were were changed. people management and The business. that say made. doing level other rather I There changes actual as work, I changes do, there getting I'd have the senior or core to the a well. more were others the the to

Andrew Berg

Okay. guys When How that think you're much the be at invested get mentioned modernize there to with? the you CapEx Food, had needs a be level for looking to it need facility. you to CapEx happy to you do would there

Ted Papapostolou

spit number. to a out It's too early

increase need to to cost the line. is working capital management of on P&L is plan, bottom we So but that the bring out it apparent a

the that next see and on call quarters. an I past So gritty they've time working of to nitty an been the how X the into to outlay, frame of am get on expecting more update details. for the the much have

Andrew Teno

amount. at look stages. of from of a an level, immaterial it We as the And options kind IEP it's variety

Andrew Berg

that it then from cash that it given or be of have at sounds guys? could just be any needs subsidiary require downstreaming last comment, Okay. and they that any would And you was, financed notable. wouldn't investment equity something level It wouldn't be like would handle

Andrew Teno

is certain a we're case size. this size, think I certain a

just for and structure so we the best evaluate business. And capital figure decision out each each

Ted Papapostolou

can we out speed it or impact think I And on whether would a that, it up. stretch Yes. big have timing

getting going I be it's answer able the not would question plan big be appropriately, a to So think we'd outlay for the be but -- to IEP.

Andrew Berg

Okay.

hedge shown is the can the you suggests Just performance then investment wanted the had out the Slide me holdings help that. was a you XX nicely to that distributions on reconcile ex there that's up confirm And you of and little was on. But that. up funds the noted which in came down that bit, value

the want and probably the understanding think sure But just the was number I'm I $XXX around I million. make to movements there. math

Andrew Teno

Yes.

was a quarter. the during there So distribution

for company And big investment so you that a the movement in into from it IP goes the use cash -- And we'd and use bucket, as funds cash. then see a it the we holding did we into quarter.

the during there, So repurchases that'd be you'd bigger X cash quarter. uses see were of probably bond of some that the

Andrew Berg

trying were repurchases you was to the And Okay. in the that bonds that for -- open Or a I'm maturity? buying just recall, market?

Andrew Teno

open repurchases There were some in the market.

at So if you that unsecured see you look down. on ticked that bottom, Row, where debt it you the look could balance,

Andrew Berg

entirely the the help the company's or stock in back is forward? switch reduction predominantly you've Great. lastly, the Okay. take to dividend, cash going to fund given use taking taking CVR some it in versus respect but given to the the historically, cash then and recent Carl in capital of in had elected stock, And desire that investment, been to it he past, more think with going I to to

Andrew Teno

Yes.

the shareholders So for He have. Carl. decision same all that has other decision that's the a

Andrew Berg

hasn't to way that. Okay. he want say? on things either doesn't And or communicated

Andrew Teno

That's not.

Operator

question from our with Northeast comes And Investors Trust. Bruce Monrad next

Bruce Monrad

Question could. on food I packaging, if

at of that So the case, be guys said for was this in in for the meeting EBITDA you budget said May, management than or profitability XXXX that higher 'XX. to annual

And you that suddenly help my know have changed so you I on what question is -- me didn't follow-up. learned so then you And you Can here? What what did a subsequent. that?

Ted Papapostolou

Yes.

of which But price. margin I up selling was let what then volume there's period. give touch at me on to the to prior a compared we're context lower this was Just and price, is, quarter more happened the as product mix year mentioned,

supply the brought is for stabilized. industry As I in it done the I has chain that's normalized. the what And were to call, what things more competitiveness when back price call mentioned levels previous pre-pandemic

and tackling waste to So that the And initiatives so. to management in that layer and historical upside higher waste the that affects compared bottom all have there has we some as periods, is the in do line.

the of to out improve costs we and mentioned to the a question, like P&L. plan beyond further the in capital biggest I impact would previous see take But be XXXX

Bruce Monrad

that surprise? I a I'm sort would that but in-house? back what's Why do -- they something correct. that able we so is so I default What's of itself capital sprung ago the destocking to said why he demand should that and on normalized. the quarters. straightened intractable? [indiscernible] it call. . sort by hasn't Willis out little XX this surprised be know is to a is of been done, of so Dave Well, saying Dave, X mean proving to out Or going why now. -- be need the with that Why to , and Viscofan to ago, there? this talking has remember XX on X Is a patting months on Why months nowhere I It's changed this and here? plan? be fixed XX

Ted Papapostolou

The many the to waste of is old elements but them machinery. one it, has

-- of a we And so, even adjust these out, but of go to maintenance, it's the unexpectedly, So doing is to things lot planned which age maintenance, lot more planned they a and causing costing them. the we're seeing probably with waste. have and that maintain more down we're as

be to that and it. So equipment been that alleviate the plan management modernize to has many part aspect this of would capital elements the waste But of firefighting. would that there's

Bruce Monrad

what to management we you regard they when summer with were to the -- regard what about, May higher? guided didn't know again, the about didn't that epiphany -- in waste that that in this, know was with And occurred didn't

Ted Papapostolou

to better a mix pricing They just and and budgeting mix say, that the I really It's would competitiveness, come didn't for were fruition. the business. of

Bruce Monrad

that Europe, that you The would that is issue? is Is . the Or mostly And say? mix change Okay. in U.S.?

Ted Papapostolou

Europe. region, . every throughout mostly in It's

Bruce Monrad

Okay.

-- U.S., to right. I at Dean look got if for suffering it was was 'XX I've greater profitability the I mix went So your if the if for region XX-K the if back really that

is they competitors? there -- Are I North having So I'm have the I Are America mean getting structural plants? new they don't suffering. what mean issue your resolved? thinking are [indiscernible] that's not they shiny

Ted Papapostolou

could Sorry call detail to time. at this cut you case more up set on a through off, future to go a we

Bruce Monrad

Okay. the more, you say, is And X consolidation? which do that you Can ask think from I let go. I'll just industry benefit would to just

Ted Papapostolou

that in nothing hurt, opportunities portfolio, our put makes we we and throughout Yes, sense. there's that now look see but right at

Operator

no I Tino like this remarks. to turn to closing back show time. would the further at I call now questions Andrew for

Daniel Fannon

Thank for you, call. this morning's joining everyone,

Just leave to we cash you markets. it's and have go chest active you. of war attractive with We have think in we it. an out of that activism some of which our job think value take is we final underappreciated liquidity portfolio. It's comments, kind prove today's advantage a and ahead to and and environment an for to

you. Thank soon. speak Bye. we'll So

Operator

This Thank participating. concludes conference today's call. for you

may You now disconnect.

Icahn Enterprises (IEP) 8 Nov 242024 Q3 Earnings call transcript