FTAI Reports First Quarter 2018 Results, Dividend of $0.33 per Common Share

FTAI Reports First Quarter 2018 Results, Dividend of $0.33 per Common Share

NEW YORK,  May  03,  2018  (GLOBE NEWSWIRE)  --  Fortress  Transportation  and 
Infrastructure  Investors  LLC  (NYSE:FTAI)  (the  “Company”)  today  reported 
financial results for  the three months  ended March 31,  2018. The  Company’s 
consolidated comparative financial statements and key performance measures are
attached as an exhibit to this press release.

Financial Overview

(in thousands, except per share data)                 
Selected Financial Results^(1)            Q1’18       
Net Cash Provided by Operating Activities $ 11,470      
Net Loss Attributable to Shareholders     $ (572   )    
Basic and Diluted Loss per Share          $ (0.01  )    
                                                      
Funds Available for Distribution (“FAD”)  $ 34,437      
Adjusted Net Income                       $ 2,728       
Adjusted Net Income per Share             $ 0.03        
Adjusted EBITDA                           $ 48,121      

________________________________
^(1) For definitions and reconciliations of Non-GAAP measures, please refer to
the exhibit to this press release.

For the first quarter of  2018, our total FAD  was $34.4 million. This  amount 
includes $62.0 million  from equipment leasing  activities, offset by  $(12.3) 
million and  $(15.3) million  from  infrastructure and  corporate  activities, 
respectively.

First Quarter 2018 Dividend

On May 3, 2018, the Company’s Board  of Directors declared a cash dividend  on 
its common shares of  $0.33 per share  for the quarter  ended March 31,  2018, 
payable on May 29, 2018 to the holders of record on May 17, 2018.

Additional Information

For  additional  information  that  management  believes  to  be  useful   for 
investors, please refer to the  presentation posted on the Investor  Relations 
section of the Company’s website, www.ftandi.com, and the Company’s  Quarterly 
Report on Form 10-Q, when available  on the Company’s website. Nothing on  the 
Company’s website is included or incorporated by reference herein.

Conference Call

The Company will host a  conference call on Friday, May  4, 2018 at 8:00  A.M. 
Eastern Time. The conference  call may be  accessed by dialing  1-877-447-5636 
(from within  the U.S.)  or  1-615-247-0080 (from  outside  of the  U.S.)  ten 
minutes prior to the scheduled start of the call; please reference “FTAI First
Quarter Earnings Call.” A simultaneous webcast of the conference call will  be 
available to the public on a listen-only basis at www.ftandi.com.

Following the call, a  replay of the conference  call will be available  after 
12:00 P.M. on Friday,  May 4, 2018  through midnight Friday,  May 11, 2018  at 
1-855-859-2056 (from within the U.S.)  or 1-404-537-3406 (from outside of  the 
U.S.), Passcode: 7889396.

About Fortress Transportation and Infrastructure Investors LLC

Fortress Transportation  and Infrastructure  Investors LLC  owns and  acquires 
high  quality  infrastructure  and  equipment   that  is  essential  for   the 
transportation of goods and  people globally. FTAI targets  assets that, on  a 
combined basis, generate strong and stable  cash flows with the potential  for 
earnings growth  and asset  appreciation.  FTAI is  externally managed  by  an 
affiliate of  Fortress Investment  Group LLC,  a leading,  diversified  global 
investment firm.

Cautionary Note Regarding Forward-Looking Statements

Certain statements  in  this  press  release  may  constitute  forward-looking 
statements within the meaning of the Private Securities Litigation Reform  Act 
of 1995. These statements are  based on management's current expectations  and 
beliefs and are  subject to a  number of trends  and uncertainties that  could 
cause actual  results  to  differ  materially  from  those  described  in  the 
forward-looking statements, many  of which are  beyond the Company’s  control. 
The Company can give no assurance  that its expectations will be attained  and 
such differences  may be  material. Accordingly,  you should  not place  undue 
reliance on any  forward-looking statements contained  in this press  release. 
For a discussion of some of the risks and important factors that could  affect 
such forward-looking statements, see the sections entitled “Risk Factors”  and 
“Management’s Discussion and  Analysis of Financial  Condition and Results  of 
Operations” in the Company’s Annual Report on Form 10-K and Quarterly  Reports 
on Form 10-Q, which are  available on the Company’s website  (www.ftandi.com). 
In addition, new risks and uncertainties emerge  from time to time, and it  is 
not possible for the Company to predict  or assess the impact of every  factor 
that may  cause its  actual results  to  differ from  those contained  in  any 
forward-looking statements. Such forward-looking  statements speak only as  of 
the date of this press release. The Company expressly disclaims any obligation
to release publicly any updates or revisions to any forward-looking statements
contained herein  to reflect  any change  in the  Company's expectations  with 
regard thereto or change in events,  conditions or circumstances on which  any 
statement is based. This release shall not constitute an offer to sell or  the 
solicitation of an offer to buy any securities.

For further information, please contact:

Alan Andreini
Investor Relations
Fortress Transportation and Infrastructure Investors LLC
(212) 798-6128
aandreini@fortress.com

Withholding Information for Withholding Agents

This announcement is  intended to  be a qualified  notice as  provided in  the 
Internal Revenue Code (the  “Code”) and the  Regulations thereunder. For  U.S. 
federal income tax purposes, the dividend declared in May 2018 will be treated
as a partnership distribution.   For tax withholding  purposes, the per  share 
distribution components are as follows:

Distribution Components             
Non-U.S. Long Term Capital Gain    $ —       
U.S. Portfolio Interest Income^(1) $ 0.1270  
U.S. Dividend Income^(2)           $ —       
Income Not from U.S. Sources^(3)   $ 0.2030  
Distribution Per Share             $ 0.3300  

^(1) Eligible for  the U.S. portfolio  interest exemption for  any holder  not 
considered a 10-percent shareholder under §871(h)(3)(B) of the Code.

^(2) This income is subject to withholding under §1441 of the Code.

^(3) This income is  not subject to  withholding under §1441  or §1446 of  the 
Code.

For U.S.  shareholders: In  computing your  U.S. federal  taxable income,  you 
should not  rely on  this qualified  notice, but  should generally  take  into 
account your allocable share  of the Company’s taxable  income as reported  to 
you on your Schedule K-1.

Exhibit - Financial Statements

 
FORTRESS TRANSPORTATION AND INFRASTRUCTURE INVESTORS LLC
 
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
 
                                                  Three Months Ended March 31,
(Dollar amounts in thousands, except share and    2018            2017
per share data)
Revenues                                                           
Equipment leasing revenues                        $   55,784      $  31,388   
Infrastructure revenues                           13,060          13,285      
Total revenues                                    68,844          44,673      
                                                                   
Expenses                                                           
Operating expenses                                27,579          21,013      
General and administrative                        3,586           3,835       
Acquisition and transaction expenses              1,766           1,452       
Management fees and incentive allocation to       3,739           3,893       
affiliate
Depreciation and amortization                     29,587          17,377      
Interest expense                                  11,871          4,694       
Total expenses                                    78,128          52,264      
                                                                   
Other income (expense)                                             
Equity in earnings (losses) of unconsolidated     95              (1,266     )
entities
(Loss) gain on sale of equipment, net             (5          )   2,018       
Loss on extinguishment of debt                    —               (2,456     )
Interest income                                   176             283         
Other income                                      180             12          
Total other income (expense)                      446             (1,409     )
                                                                   
Loss before income taxes                          (8,838      )   (9,000     )
Provision for income taxes                        495             212         
Net loss                                          (9,333      )   (9,212     )
Less:  Net loss attributable to non-controlling   (8,761      )   (4,798     )
interests in consolidated subsidiaries
Net loss attributable to shareholders             $   (572    )   $  (4,414  )
                                                                   
Loss per share                                                     
Basic and Diluted                                 $   (0.01   )   $  (0.06   )
Weighted Average Shares Outstanding:                               
Basic                                             81,534,454      75,762,283  
Diluted                                           81,534,454      75,762,283  

FORTRESS TRANSPORTATION AND INFRASTRUCTURE INVESTORS LLC 
 
CONSOLIDATED BALANCE SHEETS
 
                                                 (Unaudited)      
                                                 March 31,       December 31,
(Dollar amounts in thousands, except share and   2018            2017
per share data)
Assets                                                            
Cash and cash equivalents                        $ 80,916        $ 59,400     
Restricted cash                                  25,823          33,406       
Accounts receivable, net                         36,847          31,076       
Leasing equipment, net                           1,128,493       1,074,130    
Finance leases, net                              9,115           9,244        
Property, plant, and equipment, net              512,052         489,949      
Investments                                      43,702          42,538       
Intangible assets, net                           37,978          40,043       
Goodwill                                         116,584         116,584      
Other assets                                     56,316          59,436       
Total assets                                     $ 2,047,826     $ 1,955,806  
                                                                  
Liabilities                                                       
Accounts payable and accrued liabilities         $ 56,031        $ 68,226     
Debt, net                                        710,638         703,264      
Maintenance deposits                             107,444         103,464      
Security deposits                                28,921          27,257       
Other liabilities                                18,298          18,520       
Total liabilities                                921,332         920,731      
                                                                  
Equity                                                            
Common shares ($0.01 par value per share;
2,000,000,000 shares authorized; 82,779,232
and 75,771,738 shares issued and outstanding     828             758          
as of March 31, 2018 and December 31, 2017,
respectively)
Additional paid in capital                       1,085,492       985,009      
Accumulated deficit                              (39,271     )   (38,699     )
Accumulated other comprehensive income           —               —            
Shareholders' equity                             1,047,049       947,068      
Non-controlling interest in equity of            79,445          88,007       
consolidated subsidiaries
Total equity                                     1,126,494       1,035,075    
Total liabilities and equity                     $ 2,047,826     $ 1,955,806  
                                                                              

FORTRESS TRANSPORTATION AND INFRASTRUCTURE INVESTORS LLC 
 
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) 
 
(Dollar amounts in thousands, unless otherwise noted)
 
                                                  Three Months Ended March 31,
                                                  2018             2017
 Cash flows from operating activities:                              
 Net loss                                         $  (9,333    )   $ (9,212  )
 Adjustments to reconcile net loss to net cash                      
provided by operating activities:
Equity in (earnings) losses of unconsolidated     (95          )   1,266      
entities
Loss (gain) on sale of equipment, net             5                (2,018    )
Security deposits and maintenance claims included (383         )   —          
in earnings
Loss on extinguishment of debt                    —                2,456      
Equity-based compensation                         208              87         
Depreciation and amortization                     29,587           17,377     
Change in current and deferred income taxes       504              209        
Change in fair value of non-hedge derivative      (624         )   —          
Amortization of lease intangibles and incentives  7,226            1,949      
Amortization of deferred financing costs          1,151            1,133      
Bad debt expense                                  1,441            31         
Other                                             9                37         
Change in:                                                          
 Accounts receivable                              (7,387       )   (1,626    )
 Other assets                                     1,176            11,227     
 Accounts payable and accrued liabilities         (9,768       )   (4,992    )
 Management fees payable to affiliate             (1,300       )   (347      )
 Other liabilities                                (947         )   103        
 Net cash provided by operating activities        11,470           17,680     
                                                                    
 Cash flows from investing activities:                              
Investment in notes receivable                    (912         )   —          
Investment in unconsolidated entities and         (1,115       )   (14,654   )
available for sale securities
Principal collections on finance leases           129              110        
Acquisition of leasing equipment                  (86,043      )   (67,695   )
Acquisition of property plant and equipment       (23,641      )   (14,796   )
Acquisition of lease intangibles                  (1,029       )   —          
Purchase deposits for acquisitions                (6,886       )   (1,120    )
Proceeds from sale of leasing equipment           6,136            9,834      
Proceeds from sale of property, plant and         38               52         
equipment
Proceeds from deposit on sale of leasing          240              60         
equipment
Return of deposit on sale of engine               (400         )   —          
 Net cash used in investing activities            $  (113,483  )   $ (88,209 )
                                                                    
 Cash flows from financing activities:                              
Proceeds from debt                                18,600           235,411    
Repayment of debt                                 (12,612      )   (1,562    )
Payment of deferred financing costs               (71          )   (366      )
Receipt of security deposits                      1,864            1,425      
Return of security deposits                       (700         )   (32       )
Receipt of maintenance deposits                   9,720            4,424      
Release of maintenance deposits                   (1,840       )   —          
Proceeds from issuance of common shares, net of   128,450          —          
underwriter's discount
Common shares issuance costs                      (132         )   —          
Cash dividends                                    (27,333      )   (25,013   )
 Net cash provided by financing activities        $  115,946       $ 214,287  
                                                                    
 Net increase in cash and cash equivalents and    $  13,933        $ 143,758  
restricted cash
 Cash and cash equivalents and restricted cash,   92,806           133,496    
beginning of period
 Cash and cash equivalents and restricted cash,   $  106,739       $ 277,254  
end of period

Key Performance Measures

The Chief Operating Decision Maker  (“CODM”) utilizes Adjusted Net Income  and 
Adjusted EBITDA as performance measures.

Adjusted Net Income  (Loss) is our  key performance measure  and provides  the 
CODM with the information necessary to assess operational performance, as well
as make  resource and  allocation  decisions. Adjusted  Net Income  (Loss)  is 
defined as net  income (loss)  attributable to shareholders,  adjusted (a)  to 
exclude the impact  of provision for  income taxes, equity-based  compensation 
expense, acquisition and transaction expenses,  losses on the modification  or 
extinguishment of debt and capital lease obligations, changes in fair value of
non-hedge  derivative   instruments,  asset   impairment  charges,   incentive 
allocations, and equity in earnings of unconsolidated entities, (b) to include
the impact of cash income tax payments, and our pro-rata share of the Adjusted
Net Income (Loss) from unconsolidated entities, and (c) to exclude the  impact 
of the  non-controlling  share of  Adjusted  Net Income  (Loss).  We  evaluate 
investment performance for each reportable segment primarily based on Adjusted
Net  Income  (Loss).  We  believe  that  net  income  (loss)  attributable  to 
shareholders, as defined by GAAP, is the most comparable earnings  measurement 
with which to reconcile Adjusted Net Income (Loss).

The following  table  presents our  consolidated  reconciliation of  net  loss 
attributable to  shareholders to  Adjusted  Net Income  (Loss) for  the  three 
months ended March 31, 2018 and March 31, 2017:

                                                        Three Months Ended
                                                        March 31,
(in thousands)                                          2018        2017
Net loss attributable to shareholders                   $ (572  )   $ (4,414 )
Add: Provision for income taxes                         495         212       
Add: Equity-based compensation expense                  208         87        
Add: Acquisition and transaction expenses               1,766       1,452     
Add: Losses on the modification or extinguishment of    —           2,456     
debt and capital lease obligations
Add: Changes in fair value of non-hedge derivative      624         —         
instruments
Add: Asset impairment charges                           —           —         
Add: Pro-rata share of Adjusted Net Income (Loss) from  95          (1,266   )
unconsolidated entities ^(1)
Add: Incentive allocations                              —           —         
Less: Cash payments for income taxes                    9           (3       )
Less: Equity in (earnings) losses of unconsolidated     (95     )   1,266     
entities
Less: Non-controlling share of Adjusted Net Loss        198         (39      )
(Income) ^(2)
Adjusted Net Income (Loss) (non-GAAP)                   $ 2,728     $ (249   )
                                                                              

^______________________________________________________________________________________

^(1) Pro-rata share of Adjusted Net Income (Loss) from unconsolidated entities
includes the Company’s proportionate share of the unconsolidated entities’ net
income adjusted for  the excluded  and included  items detailed  in the  table 
above.

^(2) Non-controlling share of Adjusted Net  (Loss) Income is comprised of  the 
following for the three months ended March 31, 2018 and 2017: (i) equity-based
compensation of $37 and $25, (ii) provision for income tax of $4 and $15,  and 
(iii) changes in fair value of non-hedge derivative instruments of $(244)  and 
$0, less (iv) cash tax payments of $(5) and $1, respectively.

We view Adjusted  EBITDA as  a secondary  measurement to  Adjusted Net  Income 
(Loss), which we believe serves as a useful supplement to investors,  analysts 
and management to measure economic performance of deployed revenue  generating 
assets between periods on  a consistent basis, and  which we believe  measures 
our  financial  performance  and  helps  identify  operational  factors   that 
management can  impact  in  the  short-term, namely  our  cost  structure  and 
expenses. Adjusted EBITDA may not  be comparable to similarly titled  measures 
of other companies because other entities may not calculate Adjusted EBITDA in
the same manner.

Adjusted EBITDA is defined as net income (loss) attributable to  shareholders, 
adjusted (a) to exclude the impact of provision for income taxes, equity-based
compensation expense,  acquisition and  transaction  expenses, losses  on  the 
modification or extinguishment of debt and capital lease obligations,  changes 
in fair value of non-hedge  derivative instruments, asset impairment  charges, 
incentive allocations,  depreciation and  amortization expense,  and  interest 
expense, (b) to include  the impact of our  pro-rata share of Adjusted  EBITDA 
from unconsolidated  entities, and  (c) to  exclude the  impact of  equity  in 
earnings of unconsolidated entities and the non-controlling share of  Adjusted 
EBITDA.

The following table sets  forth a reconciliation of  net loss attributable  to 
shareholders to Adjusted EBITDA for the three months ended March 31, 2018  and 
March 31, 2017:

                                                       Three Months Ended
                                                       March 31,
(in thousands)                                         2018         2017
Net loss attributable to shareholders                  $ (572   )   $ (4,414 )
Add: Provision for income taxes                        495          212       
Add: Equity-based compensation expense                 208          87        
Add: Acquisition and transaction expenses              1,766        1,452     
Add: Losses on the modification or extinguishment of   —            2,456     
debt and capital lease obligations
Add: Changes in fair value of non-hedge derivative     624          —         
instruments
Add: Asset impairment charges                          —            —         
Add: Incentive allocations                             —            —         
Add: Depreciation & amortization expense ^(3)          36,814       19,306    
Add: Interest expense                                  11,871       4,694     
Add: Pro-rata share of Adjusted EBITDA from            175          (680     )
unconsolidated entities ^(4)
Less: Equity in (earnings) losses of unconsolidated    (95      )   1,266     
entities
Less: Non-controlling share of Adjusted EBITDA ^(5)    (3,165   )   (2,242   )
Adjusted EBITDA (non-GAAP)                             $ 48,121     $ 22,137  
                                                                              

________________________________________________________

^(3) Depreciation and  amortization expense includes  the following items  for 
the three  months  ended  March  31,  2018  and  2017:  (i)  depreciation  and 
amortization  expense   of  $29,587   and  $17,377,   (ii)  lease   intangible 
amortization of $1,992 and $1,283, and (iii) amortization for lease incentives
of $5,235 and $646, respectively.

^(4) Pro-rata share of Adjusted  EBITDA from unconsolidated entities  includes 
the following  items for  the three  months  ended March  31, 2018  and  2017: 
(i) net income (loss) of $48 and  $(1,309), (ii) interest expense of $112  and 
$251, and  (iii) depreciation  and  amortization  expense  of  $15  and  $378, 
respectively.

^(5) Non-controlling share of  Adjusted EBITDA is  comprised of the  following 
items for the three  months ended March  31, 2018 and  2017: (i) equity  based 
compensation of $37 and $24,  (ii) provision for income  taxes of $4 and  $15, 
(iii) interest expense of $1,292 and $529, (iv) depreciation and  amortization 
expense of  $2,076 and  $1,674, and  (v) changes  in fair  value of  non-hedge 
derivative instruments of $(244) and $0, respectively.

We use Funds Available for Distribution  (“FAD”) in evaluating our ability  to 
meet our stated dividend policy. FAD is not a financial measure in  accordance 
with GAAP.  The GAAP  measure most  directly  comparable to  FAD is  net  cash 
provided by  operating activities.  We  believe FAD  is  a useful  metric  for 
investors and analysts for similar purposes.

We define FAD  as: net cash  provided by operating  activities plus  principal 
collections on finance  leases, proceeds from  sale of assets,  and return  of 
capital distributions from unconsolidated entities, less required payments  on 
debt obligations and  capital distributions to  non-controlling interest,  and 
excluding changes in working capital.

The following table sets forth a reconciliation of FAD to Cash from  Operating 
Activities for the three months ended March 31, 2018 and 2017:

                                                  Three Months Ended March 31,
(in thousands)                                    2018             2017
Net Cash Provided by Operating Activities         $  11,470        $  17,680  
Add: Principal Collections on Finance Leases      129              110        
Add: Proceeds from sale of assets                 6,174            9,885      
Add: Return of Capital Distributions from         —                —          
Unconsolidated Entities
Less: Required Payments on Debt Obligations ^(1)  (1,562     )     (1,562    )
Less: Capital Distributions to Non-Controlling    —                —          
Interest
Exclude: Changes in Working Capital               18,226           (4,365    )
Funds Available for Distribution (FAD)            $  34,437        $  21,748  
                                                                              

_____________________________________________________

^(1) Required  payments  on  debt  obligations  for  the  three  months  ended 
March 31, 2018  excludes $11,050  repayment of  the Central  Maine and  Québec 
Railway (“CMQR”) Credit Agreement,  and for the  three months ended  March 31, 
2017 excludes  $100,000  repayment  of  the Term  Loan,  both  of  which  were 
voluntary refinancing as repayment of these  amounts was not required at  such 
time.

The following tables set forth a reconciliation of FAD to Cash from Operating
Activities for the three months ended March 31, 2018:

                        Three Months Ended March 31, 2018
(in thousands)          Equipment    Infrastructure   Corporate     Total
                        Leasing
Funds Available for     $ 62,068     $  (12,328  )    $ (15,303 )   $ 34,437  
Distribution (FAD)
Less: Principal
Collections on Finance                                              (129     )
Leases
Less: Proceeds from                                                 (6,174   )
sale of assets
Less: Return of Capital
Distributions from                                                  —         
Unconsolidated Entities
Add: Required Payments
on Debt Obligations                                                 1,562     
^(1)
Add: Capital
Distributions to                                                    —         
Non-Controlling
Interest
Include: Changes in                                                 (18,226  )
Working Capital
Net Cash provided by                                                $ 11,470  
Operating Activities
                                                                              

^(1) Required payments on debt obligations for the three months ended
March 31, 2018 excludes $11,050 repayment of the CMQR loan, which was a
voluntary refinancing, as repayment of this amount was not required at such
time.

FAD is subject to a number of limitations and assumptions and there can be  no 
assurance that the Company will generate  FAD sufficient to meet its  intended 
dividends. FAD has material limitations as a liquidity measure of the  Company 
because such  measure  excludes  items  that  are  required  elements  of  the 
Company’s net cash provided  by operating activities  as described below.  FAD 
should not be considered in isolation nor as a substitute for analysis of  the 
Company’s results of operations under GAAP, and it is not the only metric that
should be considered in  evaluating the Company’s ability  to meet its  stated 
dividend policy. Specifically:

  * FAD does not include equity capital called from the Company’s existing
    limited partners, proceeds from any debt issuance or future equity
    offering, historical cash and cash equivalents and expected investments in
    the Company’s operations.

  * FAD does not give pro forma effect to prior acquisitions, certain of which
    cannot be quantified.

  * While FAD reflects the cash inflows from sale of certain assets, FAD does
    not reflect the cash outflows to acquire assets as the Company relies on
    alternative sources of liquidity to fund such purchases.

  * FAD does not reflect expenditures related to capital expenditures,
    acquisitions and other investments as the Company has multiple sources of
    liquidity and intends to fund these expenditures with future incurrences
    of indebtedness, additional capital contributions and/or future issuances
    of equity.

  * FAD does not reflect any maintenance capital expenditures necessary to
    maintain the same level of cash generation from our capital investments.

  * FAD does not reflect changes in working capital balances as management
    believes that changes in working capital are primarily driven by short
    term timing differences, which are not meaningful to the Company’s
    distribution decisions.

  * Management has significant discretion to make distributions, and the
    Company is not bound by any contractual provision that requires it to use
    cash for distributions.

If such factors  were included  in FAD,  there can  be no  assurance that  the 
results would be consistent with the Company’s presentation of FAD.

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