Icahn Enterprises L.P. Reports First Quarter 2014 Financial Results

Icahn Enterprises L.P. Reports First Quarter 2014 Financial Results

  *Adjusted net income attributable to Icahn Enterprises of $92 million, or
    $0.77 per depositary unit
  *Net loss attributable to Icahn Enterprises of $29 million, or $0.24 per
    depositary unit
  *Adjusted EBITDA attributable to Icahn Enterprises of $356 million
  *Board approves quarterly distribution of $1.50 per depositary unit

NEW YORK, May 7, 2014 (GLOBE NEWSWIRE) -- Icahn Enterprises L.P. (Nasdaq:IEP)
is reporting Q1 2014 revenues were $5.0 billion and adjusted net income
attributable to Icahn Enterprises, after adding back the loss on
extinguishment of debt, was $92 million, or $0.77 per depositary unit. For Q1
2013, revenues were $5.4 billion and adjusted net income attributable to Icahn
Enterprises, after deducting the gain on extinguishment of debt, was $274
million, or $2.49 per depositary unit. For Q1 2014, net loss attributable to
Icahn Enterprises was $29 million, or $0.24 per depositary unit, as compared
to net income of $277 million, or $2.50 per depositary unit, for Q1 2013.
Adjusted EBITDA attributable to Icahn Enterprises was $356 million for Q1 2014
compared to $618 million for Q1 2013. Adjusted EBIT attributable to Icahn
Enterprises was $218 million for Q1 2014 compared to $507 million Q1 2013.

On May 5, 2014, the Board of Directors of the general partner of Icahn
Enterprises declared a quarterly distribution in the amount of $1.50 per
depositary unit. The quarterly distribution is payable in either cash or
additional depositary units, at the election of each depositary unit holder
and will be paid on or about June 30, 2014 to depositary unit holders of
record at the close of business on May 19, 2014.

Mr. Icahn stated, "We are fully wedded to the activist model across all of our
segments. This strategy has served us well over the last 14 years and we
expect to continue this trend long into the future. While the first quarter
produced somewhat modest results compared to the standards we hold out for
ourselves, we believe that the second quarter is off to a great start with
preliminary unaudited estimated adjusted net income^1 attributable to Icahn
Enterprises of over $200 million for April."

Icahn Enterprises L.P. (Nasdaq:IEP), a master limited partnership, is a
diversified holding company engaged in nine primary business segments:
Investment, Automotive, Energy, Metals, Railcar, Gaming, Food Packaging, Real
Estate and Home Fashion.

Caution Concerning Forward-Looking Statements

Results for any interim period are not necessarily indicative of results for
any full fiscal period. This release contains certain "forward-looking
statements" within the meaning of the Private Securities Litigation Reform Act
of 1995, many of which are beyond our ability to control or predict.
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
L.P. and its subsidiaries. Among these risks and uncertainties are risks
related to economic downturns, substantial competition and rising operating
costs; risks related to our investment activities, including the nature of the
investments made by the private funds in which we invest, losses in the
private funds and loss of key employees; risks related to our automotive
activities, including exposure to adverse conditions in the automotive
industry, and risks related to operations in foreign countries; risks related
to our energy business, including the volatility and availability of crude
oil, other feed stocks and refined products, unfavorable refining margin
(crack spread), interrupted access to pipelines, significant fluctuations in
nitrogen fertilizer demand in the agricultural industry and seasonality of
results; risk related to our gaming operations, including reductions in
discretionary spending due to a downturn in the local, regional or national
economy, intense competition in the gaming industry from present and emerging
internet online markets and extensive regulation; risks related to our railcar
activities, including reliance upon a small number of customers that represent
a large percentage of revenues and backlog, the health of and prospects for
the overall railcar industry and the cyclical nature of the railcar
manufacturing business; risks related to our food packaging activities,
including competition from better capitalized competitors, inability of its
suppliers to timely deliver raw materials, and the failure to effectively
respond to industry changes in casings technology; risks related to our scrap
metals activities, including potential environmental exposure; risks related
to our real estate activities, including the extent of any tenant bankruptcies
and insolvencies; risks related to our home fashion operations, including
changes in the availability and price of raw materials, and changes in
transportation costs and delivery times; and other risks and uncertainties
detailed from time to time in our filings with the Securities and Exchange
Commission. Past performance in our Investment segment is not necessarily
indicative of future performance. We undertake no obligation to publicly
update or review any forward-looking information, whether as a result of new
information, future developments or otherwise.

^1 After adding back the loss on extinguishment of debt at Federal-Mogul.


CONSOLIDATED STATEMENTS OF OPERATIONS
(In millions, except per unit amounts)

                                                           Three Months Ended
                                                            March 31,
                                                           2014      2013
Revenues:                                                   (Unaudited)
Net sales                                                   $ 4,666   $ 4,574
Other revenues from operations                              261       236
Net (loss) gain from investment activities                  (31)      578
Interest and dividend income                                59        26
Other income (loss), net                                    35        (45)
                                                           4,990     5,369
Expenses:                                                            
Cost of goods sold                                          4,142     3,893
Other expenses from operations                              129       122
Selling, general and administrative                         360       371
Restructuring                                               8         8
Impairment                                                  1         —
Interest expense                                            170       145
                                                           4,810     4,539
Income before income tax expense                            180       830
Income tax expense                                          (103)     (120)
Net income                                                  77        710
Less: net income attributable to non-controlling interests  (106)     (433)
Net (loss) income attributable to Icahn Enterprises         $ (29)    $ 277
                                                                    
Net (loss) income attributable to Icahn Enterprises                  
allocable to:
Limited partners                                            $ (28)    $ 271
General partner                                             (1)       6
                                                           $ (29)    $ 277
                                                                    
Basic (loss) income per depositary unit                     $ (0.24)  $ 2.56
Basic weightedaveragedepositaryunitsoutstanding         117       106
                                                                    
Diluted (loss) income per depositary unit                   $ (0.24)  $ 2.50
Diluted weightedaveragedepositaryunitsoutstanding       117       109
Cash distributions declared per depositary unit             $ 1.50    $ 1.00
                                                                    

                                      

CONSOLIDATED BALANCE SHEETS
(In millions, except unit amounts)

                                                     March 31,   December 31,
                                                     2014        2013
ASSETS                                                (Unaudited) 
Cash and cash equivalents                             $ 3,342     $ 3,262
Cash held at consolidated affiliated partnerships and 729         396
restricted cash
Investments                                           14,846      12,261
Accounts receivable, net                              1,927       1,750
Inventories, net                                      1,964       1,902
Property, plant and equipment, net                    8,170       8,077
Goodwill                                              2,082       2,074
Intangible assets, net                                1,099       1,113
Other assets                                          1,027       910
Total Assets                                          $ 35,186    $ 31,745
LIABILITIES AND EQUITY                                           
Accounts payable                                      $ 1,435     $ 1,353
Accrued expenses and other liabilities                2,489       2,196
Deferred tax liability                                1,463       1,394
Securities sold, not yet purchased, at fair value     898         884
Due to brokers                                        3,853       2,203
Post-employment benefit liability                     1,090       1,111
Debt                                                  11,067      9,295
Total liabilities                                     22,295      18,436
                                                                
Commitments and contingencies (Note 17)                          
                                                                
Equity:                                                          
Limited partners: Depositary units: 116,901,926 and
115,900,309 units issued and outstanding at March 31, 6,214       6,308
2014 and December 31, 2013, respectively
General partner                                       (218)       (216)
Equity attributable to Icahn Enterprises              5,996       6,092
Equity attributable to non-controlling interests      6,895       7,217
Total equity                                          12,891      13,309
Total Liabilities and Equity                          $ 35,186    $ 31,745
                                                                

Use of Non-GAAP Financial Measures

EBITDA, Adjusted EBITDA, EBIT, Adjusted EBIT and Adjusted Net Income

The Company uses certain non-GAAP financial measures in evaluating its
performance. These include non-GAAP EBITDA, Adjusted EBITDA, EBIT, Adjusted
EBIT and Adjusted Net Income. EBITDA represents earnings before interest
expense, income tax (benefit) expense and depreciation and amortization. EBIT
represents earnings before interest expense and income tax (benefit) expense.
We define Adjusted EBITDA and Adjusted EBIT as EBITDA and EBIT, respectively,
excluding the effects of impairment, restructuring costs, certain pension plan
expenses, OPEB curtailment gains, purchase accounting inventory adjustments,
certain share-based compensation, discontinued operations, gains/losses on
extinguishment of debt, major scheduled turnaround expenses, FIFO adjustments
and unrealized gains/losses on energy segment derivatives and certain other
non-operational charges. We present EBITDA, Adjusted EBITDA, EBIT and Adjusted
EBIT on a consolidated basis and attributable to Icahn Enterprises net of the
effect of non-controlling interests. Adjusted Net Income is GAAP net income
adjusted for certain items that management believes can provide useful
supplemental information for investors in analyzing period to period
comparisons of the company's results. We conduct substantially all of our
operations through subsidiaries.The operating results of our subsidiaries may
not be sufficient to make distributions to us.In addition, our subsidiaries
are not obligated to make funds available to us for payment of our
indebtedness, payment of distributions on our depositary units or otherwise,
and distributions and intercompany transfers from our subsidiaries to us may
be restricted by applicable law or covenants contained in debt agreements and
other agreements to which these subsidiaries currently may be subject or into
which they may enter into in the future.The terms of any borrowings of our
subsidiaries or other entities in which we own equity may restrict dividends,
distributions or loans to us.

We believe that providing EBITDA, Adjusted EBITDA, EBIT and Adjusted EBIT to
investors has economic substance as these measures provide important
supplemental information of our performance to investors and permits investors
and management to evaluate the core operating performance of our business
without regard to interest, taxes and depreciation and amortization and the
effects of impairment, restructuring costs, certain pension plan expenses,
OPEB curtailment gains, purchase accounting inventory adjustments, certain
share-based compensation, discontinued operations, gains/losses on
extinguishment of debt, major scheduled turnaround expenses, FIFO adjustments
and unrealized gains/losses on energy segment derivatives and certain other
non-operational charges.We believe that providing Adjusted Net Income, which
excludes certain items that affect period over period comparisons, also adds
important supplemental information of our performance to investors.
Additionally, we believe this information is frequently used by securities
analysts, investors and other interested parties in the evaluation of
companies that have issued debt.Management uses, and believes that investors
benefit from referring to these non-GAAP financial measures in assessing our
operating results, as well as in planning, forecasting and analyzing future
periods.Adjusting earnings for these charges allows investors to evaluate our
performance from period to period, as well as our peers, without the effects
of certain items that may vary depending on accounting methods and the book
value of assets.Additionally, EBITDA, Adjusted EBITDA, EBIT, Adjusted EBIT
and Adjusted Net Income present meaningful measures of performance exclusive
of our capital structure and the method by which assets were acquired and
financed.

EBITDA, Adjusted EBITDA, EBIT, Adjusted EBIT and Adjusted Net Income have
limitations as analytical tools, and you should not consider them in
isolation, or as substitutes for analysis of our results as reported under
generally accepted accounting principles in the United States, or U.S.
GAAP.For example, EBITDA, Adjusted EBITDA, EBIT, Adjusted EBIT and Adjusted
Net Income:

  *do not reflect our cash expenditures, or future requirements for capital
    expenditures, or contractual commitments;
  *do not reflect changes in, or cash requirements for, our working capital
    needs; and
  *do not reflect the significant interest expense, or the cash requirements
    necessary to service interest or principal payments on our debt.

Although depreciation and amortization are non-cash charges, the assets being
depreciated or amortized often will have to be replaced in the future, and
EBITDA and Adjusted EBITDA do not reflect any cash requirements for such
replacements.Other companies in the industries in which we operate may
calculate EBITDA, Adjusted EBITDA, EBIT, Adjusted EBIT and Adjusted Net Income
differently than we do, limiting their usefulness as comparative measures.In
addition, EBITDA, Adjusted EBITDA, EBIT, Adjusted EBIT and Adjusted Net Income
do not reflect the impact of earnings or charges resulting from matters we
consider not to be indicative of our ongoing operations.

EBITDA, Adjusted EBITDA, EBIT, Adjusted EBIT and Adjusted Net Income are not
measurements of our financial performance under U.S. GAAP and should not be
considered as alternatives to net income or any other performance measures
derived in accordance with U.S. GAAP or as alternatives to cash flow from
operating activities as a measure of our liquidity.Given these limitations,
we rely primarily on our U.S. GAAP results and use EBITDA, Adjusted EBITDA,
EBIT, Adjusted EBIT and Adjusted Net Income only as a supplemental measure of
our financial performance.

Use of Indicative Net Asset Value Data

The Company uses indicative net asset value as an additional method for
considering the value of the Company's assets, and we believe that this
information can be helpful to investors.Please note, however, that the
indicative net asset value does not represent the market price at which the
units trade.Accordingly, data regarding indicative net asset value is of
limited use and should not be considered in isolation.

The Company's depositary units are not redeemable, which means that investors
have no right or ability to obtain from the Company the indicative net asset
value of units that they own.Units may be bought and sold on The NASDAQ
Global Select Market at prevailing market prices.Those prices may be higher
or lower than the indicative net asset value of the units as calculated by
management.

See below for more information on how we calculate the Company's indicative
net asset value.


($ in millions)                                    March 31, December 31,
                                                  2014      2013
Market-valued Subsidiaries:                        (unaudited)
Holding Company interest in Funds (1)              $ 4,702   $ 3,696
CVR Energy (2)                                     3,008     3,092
CVR Refining - direct holding (2)                  140       136
Federal-Mogul (2)                                  2,266     2,383
American Railcar Industries (2)                    831       543
Total market-valued subsidiaries                   $ 10,947  $ 9,850
                                                           
Other Subsidiaries:                                         
Tropicana (3)                                      $ 467     $ 444
Viskase (3)                                        252       290
Real Estate Holdings (4)                           719       711
PSC Metals (4)                                     261       273
WestPoint Home (4)                                 190       191
AEP Leasing / ARL (5)                              810       754
Total - other subsidiaries                         $ 2,699   $ 2,663
Add:Holding Company cash and cash equivalents (6) 995       782
Less:Holding Company debt (6)                     (5,485)   (4,016)
Add:Other Holding Company net assets (7)          (214)     (147)
Indicative Net Asset Value                         $ 8,942   $ 9,132
                                                           

Indicative net asset value does not purport to reflect a valuation of IEP.The
calculated Indicative net asset value does not include any value for our
Investment Segment other than the fair market value of our investment in the
Investment Funds.A valuation is a subjective exercise and Indicative net
asset value does not necessarily consider all elements or consider in the
adequate proportion the elements that could affect the valuation of
IEP.Investors may reasonably differ on what such elements are and their
impact on IEP.No representation or assurance, express or implied is made as
to the accuracy and correctness of indicative net asset value as of these
dates or with respect to any future indicative or prospective results which
may vary.

(1) Fair market value of Holding Company's interest in the Funds and
Investment segment cash as of each respective date.

(2)Based on closing share price on each date and the number of shares owned
by the Holding Company as of each respective date.

(3)Amounts based on market comparables due to lack of material trading
volume.Tropicana valued at 8.0x Adjusted EBITDA for the twelve months ended
March 31, 2014 and December 31, 2013. Viskase valued at 9.0x Adjusted EBITDA
for the twelve months ended March 31, 2014 and 9.5x for the twelve months
ended December 31, 2013.

(4)Represents equity attributable to us as of each respective date.

(5)Assumes the present value of cash flows from leased railcars plus working
capital at each respective date.

(6)Holding Company's balance as of each respective date.

(7) Represents Holding Company net assets as of each respective date.


($ in millions)                          Three Months Ended March 31,
                                         2014          2013
Consolidated Adjusted EBITDA:             (Unaudited)
Net income                                $ 77          $ 710
Interest expense, net                     166           142
Income tax expense                        103           120
Depreciation and amortization             187           170
Consolidated EBITDA                       $ 533         $ 1,142
Impairment of assets                      1             —
Restructuring costs                       8             8
Non-Service cost US based pensions        (2)           2
FIFO impact (favorable)                   (22)          (5)
Unrealized (gain) on certain derivatives  (88)          (32)
Certain share-based compensation expense  7             11
Net loss on divestitures                  —             47
Net loss (gain) on extinguishment of debt 126           (5)
Other                                     (40)          1
Consolidated Adjusted EBITDA              $ 523         $ 1,169
                                                      
IEP Adjusted EBITDA:                                   
Net (loss) income attributable to IEP     $(29)        $ 277
Interest expense, net                     133           120
Income tax expense                        83            93
Depreciation and amortization             138           111
EBITDA attributable to IEP                $ 325         $ 601
Impairment of assets                      1             —
Restructuring costs                       6             6
Non-Service cost US based pensions        (2)           2
FIFO impact (favorable)                   (14)          (5)
Unrealized (gain) on certain derivatives  (55)          (27)
Certain share-based compensation expense  4             7
Net loss on divestitures                  —             36
Net loss (gain) on extinguishment of debt 121           (3)
Other                                     (30)          1
Adjusted EBITDA attributable to IEP       $ 356         $ 618
                                                      

                                         
($ in millions)                           Three Months Ended March 31,
                                         2014           2013
Consolidated Adjusted EBIT:               (Unaudited)
Net income                                $ 77           $ 710
Interest expense, net                     166            142
Income tax expense                        103            120
Consolidated EBIT                         $ 346          $ 972
Impairment of assets                      1              —
Restructuring costs                       8              8
Non-Service cost US based pensions        (2)            2
FIFO impact (favorable)                   (22)           (5)
Unrealized (gain) on certain derivatives  (88)           (32)
Certain share-based compensation expense  7              11
Net loss on divestitures                  —              47
Net loss (gain) on extinguishment of debt 126            (5)
Other                                     (40)           1
Consolidated Adjusted EBIT                $ 336          $ 999
                                                       
IEP Adjusted EBIT:                                      
Net (loss) income attributable to IEP     $ (29)         $ 277
Interest expense, net                     133            120
Income tax expense                        83             93
EBIT attributable to IEP                  $ 187          $ 490
Impairment of assets                      1              —
Restructuring costs                       6              6
Non-Service cost US based pensions        (2)            2
FIFO impact (favorable)                   (14)           (5)
Unrealized (gain) on certain derivatives  (55)           (27)
Certain share-based compensation expense  4              7
Net loss on divestitures                  —              36
Net loss (gain) on extinguishment of debt 121            (3)
Other                                     (30)           1
Adjusted EBIT attributable to IEP         $ 218          $ 507
                                                       

The following is a reconciliation of net (loss) income attributable to Icahn
Enterprises and diluted (loss) income per depositary unit, presented and
reported in accordance to U.S. generally accepted accounting principles, to
adjusted net income attributable to Icahn Enterprises and adjusted diluted
income per depositary unit, adjusted for gains or losses on extinguishment of
debt attributable to Icahn Enterprises:


($ in millions, except per unit amounts)          Three Months Ended March 31,
                                                 2014            2013
                                                 (Unaudited)
Adjusted Diluted Income per depositary Unit:                     
Net (loss) income attributable to Icahn           $ (29)          $ 277
Enterprises
Loss (gain) on extinguishment of debt             121             (3)
attributable to Icahn Enterprises
Adjusted net income attributable to Icahn         92              274
Enterprises
                                                                
Diluted (loss) income per depositary unit         $ (0.24)        $ 2.50
Add back: Loss (gain) on extinguishment of debt   1.01            (0.01)
Adjusted diluted income per depositary unit       $ 0.77          $ 2.49

CONTACT: Investor Contacts:
         SungHwan Cho, Chief Financial Officer
         Peter Reck, Chief Accounting Officer
         (212) 702-4300
 
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