Icahn Enterprises L.P. (Nasdaq: IEP) Today Announced Its Third Quarter 2024 Financial Results
Icahn Enterprises (IEP) reported Q3 2024 financial results with net income of $22 million ($0.05 per unit), improving from a $6 million loss in Q3 2023. Revenue decreased to $2.8 billion from $3.0 billion year-over-year. Adjusted EBITDA declined to $183 million from $243 million in the prior year quarter. The company reduced its quarterly distribution from $1.00 to $0.50 per unit, representing a 16% annualized yield. Indicative net asset value decreased by $423 million to $3.6 billion, primarily due to declines in CVI ($249M) and Automotive Services ($193M), partially offset by positive investment fund performance of $192 million.
Icahn Enterprises (IEP) ha riportato i risultati finanziari del terzo trimestre 2024 con un reddito netto di 22 milioni di dollari (0,05 dollari per unità), in miglioramento rispetto a una perdita di 6 milioni di dollari nel terzo trimestre 2023. I ricavi sono diminuiti a 2,8 miliardi di dollari, rispetto ai 3,0 miliardi dell'anno precedente. EBITDA rettificato è sceso a 183 milioni di dollari dai 243 milioni del trimestre dello scorso anno. L'azienda ha ridotto la sua distribuzione trimestrale da 1,00 a 0,50 dollari per unità, corrispondente a un rendimento annualizzato del 16%. Il valore netto indicativo degli attivi è diminuito di 423 milioni di dollari, attestandosi a 3,6 miliardi di dollari, principalmente a causa dei cali in CVI (249 milioni di dollari) e Servizi Automotive (193 milioni di dollari), parzialmente compensati dalla performance positiva degli fondi d'investimento, pari a 192 milioni di dollari.
Icahn Enterprises (IEP) informó los resultados financieros del tercer trimestre de 2024 con un ingreso neto de 22 millones de dólares (0,05 dólares por unidad), mejorando de una pérdida de 6 millones de dólares en el tercer trimestre de 2023. Los ingresos disminuyeron a 2,8 mil millones de dólares desde 3,0 mil millones en el año anterior. EBITDA ajustado disminuyó a 183 millones de dólares desde 243 millones en el mismo trimestre del año pasado. La empresa redujo su distribución trimestral de 1,00 a 0,50 dólares por unidad, lo que representa un rendimiento anualizado del 16%. El valor neto de activos indicativos disminuyó en 423 millones de dólares a 3,6 mil millones, principalmente debido a las caídas en CVI (249 millones) y Servicios Automotrices (193 millones), parcialmente compensadas por un rendimiento positivo de 192 millones en el fondo de inversión.
아이칸 엔터프라이즈 (IEP)는 2024년 3분기 재무 실적을 보고하며, 순이익이 2200만 달러(유닛당 0.05달러)로, 2023년 3분기의 600만 달러 손실에서 개선되었다고 밝혔다. 매출은 지난해 30억 달러에서 28억 달러로 감소했다. 조정 EBITDA는 지난해 같은 분기의 2억4300만 달러에서 1억8300만 달러로 감소했다. 회사는 분기 배당금을 유닛당 1.00달러에서 0.50달러로 줄였으며, 이는 연 환산 수익률 16%에 해당한다. 지표순자산가치는 CVI(2억4900만 달러)와 자동차 서비스(1억9300만 달러)의 감소로 인해 4억2300만 달러 줄어든 36억 달러였다. 이는 1억9200만 달러의 긍정적인 투자 펀드 성과로 부분적으로 상쇄되었다.
Icahn Enterprises (IEP) a annoncé les résultats financiers du troisième trimestre 2024 avec un revenu net de 22 millions de dollars (0,05 dollar par unité), en amélioration par rapport à une perte de 6 millions de dollars au troisième trimestre 2023. Les revenus ont diminué à 2,8 milliards de dollars contre 3,0 milliards de dollars l'année précédente. EBITDA ajusté a chuté à 183 millions de dollars contre 243 millions de dollars au trimestre de l'année précédente. La société a réduit sa distribution trimestrielle de 1,00 dollar à 0,50 dollar par unité, représentant un rendement annualisé de 16%. La valeur nette d'actifs indicatifs a diminué de 423 millions de dollars pour atteindre 3,6 milliards de dollars, principalement en raison des baisses de CVI (249 millions de dollars) et des services automobiles (193 millions de dollars), partiellement compensées par des performances positives des fonds d'investissement de 192 millions de dollars.
Icahn Enterprises (IEP) hat die finanziellen Ergebnisse des dritten Quartals 2024 mit einem Nettogewinn von 22 Millionen Dollar (0,05 Dollar pro Einheit) berichtet, was eine Verbesserung gegenüber einem Verlust von 6 Millionen Dollar im dritten Quartal 2023 darstellt. Der Umsatz sank von 3,0 Milliarden Dollar im Vorjahr auf 2,8 Milliarden Dollar. Bereinigtes EBITDA fiel von 243 Millionen Dollar im Vorjahresquartal auf 183 Millionen Dollar. Das Unternehmen reduzierte seine vierteljährliche Ausschüttung von 1,00 Dollar auf 0,50 Dollar pro Einheit, was einer annualisierten Rendite von 16% entspricht. Der indikative Nettoinventarwert sank um 423 Millionen Dollar auf 3,6 Milliarden Dollar, hauptsächlich aufgrund von Rückgängen in CVI (249 Millionen Dollar) und Automobilservices (193 Millionen Dollar), die teilweise durch positive Renditen von 192 Millionen Dollar bei den Investmentfonds ausgeglichen wurden.
- Net income improved to $22M from -$6M loss year-over-year
- Investment funds showed positive performance of $192M
- Maintains strong liquidity position with $2.3B in cash and equivalents
- Reduced quarterly losses from -$1.47 to -$0.75 per unit (9-month period)
- Revenue declined to $2.8B from $3.0B year-over-year
- Adjusted EBITDA decreased to $183M from $243M year-over-year
- Net asset value declined by $423M quarter-over-quarter
- Quarterly distribution cut by 50% from $1.00 to $0.50 per unit
- Significant declines in CVI ($249M) and Automotive Services ($193M)
Insights
A significant shift in IEP's financial strategy is evident with the 50% cut in quarterly distribution from
The
The market implications of IEP's strategic shift are complex. The distribution cut, while preserving capital, could pressure unit prices as yield-focused investors exit. However, Icahn's thesis about market extremes creating activist opportunities is particularly relevant in the current environment. The company's substantial liquidity position of
Key metrics to monitor include the performance of the Automotive Services segment, where new leadership could drive a turnaround and the success of the CVI tender offer. The investment funds' positive performance of
- Third quarter net income attributable to IEP of
, an improvement of$22 million over prior year quarter$28 million - Third quarter Adjusted EBITDA attributable to IEP of
, compared to$183 million for the prior year quarter$243 million - Indicative Net Asset Value was approximately
as of September 30, 2024, a decrease of$3.6 billion compared to June 30, 2024$423 million - IEP declares third quarter distribution of
per depositary unit$0.50
Financial Summary
(Net loss and Adjusted EBITDA figures in commentary below are attributable to Icahn Enterprises, unless otherwise specified)
For the three months ended September 30, 2024, revenues were
For the nine months ended September 30, 2024, revenues were
As of September 30, 2024, indicative net asset value decreased
On November 6, 2024, the Board of Directors of the general partner of Icahn Enterprises declared a quarterly distribution in the amount of
Icahn Enterprises L.P., a master limited partnership, is a diversified holding company owning subsidiaries currently engaged in the following continuing operating businesses: Investment, Energy, Automotive, Food Packaging, Real Estate, Home Fashion and Pharma.
Caution Concerning Forward-Looking Statements
This release may contain 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 and its subsidiaries, market conditions, and IEP's anticipated tender offer for shares of CVI. Actual events, results and outcomes may differ materially from our expectations due to a variety of known and unknown risks, uncertainties and other factors, including risks related to economic downturns, substantial competition and rising operating costs; the impacts from the ongoing
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||
(UNAUDITED) | |||||||||||
Three Months Ended | Nine Months Ended | ||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||
(in millions, except per unit amounts) | |||||||||||
Revenues: | |||||||||||
Net sales | $ | 2,221 | $ | 2,991 | $ | 6,827 | $ | 8,433 | |||
Other revenues from operations | 192 | 203 | 566 | 588 | |||||||
Net gain (loss) from investment activities | 257 | (332) | (318) | (1,275) | |||||||
Interest and dividend income | 115 | 143 | 380 | 481 | |||||||
(Loss) gain on disposition of assets, net | (1) | 2 | (6) | 5 | |||||||
Other income, net | 7 | 3 | 13 | 6 | |||||||
2,791 | 3,010 | 7,462 | 8,238 | ||||||||
Expenses: | |||||||||||
Cost of goods sold | 2,223 | 2,377 | 6,414 | 6,947 | |||||||
Other expenses from operations | 155 | 165 | 462 | 483 | |||||||
Dividend expense | 14 | 21 | 47 | 68 | |||||||
Selling, general and administrative | 202 | 209 | 578 | 653 | |||||||
Restructuring, net | — | 1 | 1 | 1 | |||||||
Credit loss on related party note receivable | — | 23 | — | 139 | |||||||
Loss on deconsolidation of subsidiary | — | — | — | 246 | |||||||
Interest expense | 130 | 148 | 394 | 426 | |||||||
2,724 | 2,944 | 7,896 | 8,963 | ||||||||
Income (loss) before income tax expense | 67 | 66 | (434) | (725) | |||||||
Income tax benefit (expense) | 13 | (96) | 2 | (82) | |||||||
Net income (loss) | 80 | (30) | (432) | (807) | |||||||
Less: net income (loss) attributable to non-controlling interests | 58 | (24) | (85) | (262) | |||||||
Net income (loss) attributable to Icahn Enterprises | $ | 22 | $ | (6) | $ | (347) | $ | (545) | |||
Net income (loss) attributable to Icahn Enterprises allocated to: | |||||||||||
Limited partners | $ | 22 | $ | (6) | $ | (340) | $ | (534) | |||
General partner | — | — | (7) | (11) | |||||||
$ | 22 | $ | (6) | $ | (347) | $ | (545) | ||||
Basic and Diluted income (loss) per LP unit | $ | 0.05 | $ | (0.01) | $ | (0.75) | $ | (1.47) | |||
Basic and Diluted weighted average LP units outstanding | 477 | 394 | 452 | 364 | |||||||
Distributions declared per LP unit | $ | 1.00 | $ | 1.00 | $ | 3.00 | $ | 5.00 |
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||
(UNAUDITED) | ||||||
September 30, | December 31, | |||||
2024 | 2023 | |||||
(in millions, except unit amounts) | ||||||
ASSETS | ||||||
Cash and cash equivalents | $ | 2,294 | $ | 2,951 | ||
Cash held at consolidated affiliated partnerships and restricted cash | 2,440 | 2,995 | ||||
Investments | 2,585 | 3,012 | ||||
Due from brokers | 2,976 | 4,367 | ||||
Accounts receivable, net | 476 | 485 | ||||
Related party notes receivable, net | 7 | 11 | ||||
Inventories, net | 883 | 1,047 | ||||
Property, plant and equipment, net | 3,865 | 3,969 | ||||
Deferred tax asset | 168 | 184 | ||||
Derivative assets, net | 43 | 64 | ||||
Goodwill | 289 | 288 | ||||
Intangible assets, net | 423 | 466 | ||||
Other assets | 994 | 1,019 | ||||
Total Assets | $ | 17,443 | $ | 20,858 | ||
LIABILITIES AND EQUITY | ||||||
Accounts payable | $ | 679 | $ | 830 | ||
Accrued expenses and other liabilities | 1,660 | 1,596 | ||||
Deferred tax liabilities | 369 | 399 | ||||
Derivative liabilities, net | 685 | 979 | ||||
Securities sold, not yet purchased, at fair value | 2,679 | 3,473 | ||||
Due to brokers | 97 | 301 | ||||
Debt | 6,447 | 7,207 | ||||
Total liabilities | 12,616 | 14,785 | ||||
Equity: | ||||||
Limited partners: Depositary units: 504,003,429 units issued and outstanding at | 3,417 | 3,969 | ||||
General partner | (772) | (761) | ||||
Equity attributable to Icahn Enterprises | 2,645 | 3,208 | ||||
Equity attributable to non-controlling interests | 2,182 | 2,865 | ||||
Total equity | 4,827 | 6,073 | ||||
Total Liabilities and Equity | $ | 17,443 | $ | 20,858 |
Use of Non-GAAP Financial Measures
The Company uses certain non-GAAP financial measures in evaluating its performance. These include non-GAAP EBITDA and Adjusted EBITDA. EBITDA represents earnings from continuing operations before net interest expense (excluding our Investment segment), income tax (benefit) expense and depreciation and amortization. We define Adjusted EBITDA as EBITDA excluding certain effects of impairment, restructuring costs, transformation costs, certain pension plan expenses, gains/losses on disposition of assets, gains/losses on extinguishment of debt and certain other non-operational charges. We present EBITDA and Adjusted EBITDA on a consolidated basis and on a basis attributable to Icahn Enterprises net of the effects of non-controlling interests. 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 and Adjusted EBITDA 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 (except with respect to our Investment segment), taxes and depreciation and amortization and certain effects of impairment, restructuring costs, certain pension plan expenses, gains/losses on disposition of assets, gains/losses on extinguishment of debt and certain other non-operational charges. 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 and Adjusted EBITDA present meaningful measures of performance exclusive of our capital structure and the method by which assets were acquired and financed. Effective December 31, 2023, we modified our calculation of EBITDA to exclude the impact of net interest expense from the Investment segment. This change has been applied to all periods presented. We believe that this revised presentation improves the supplemental information provided to our investors because interest expense within the Investment segment is associated with its core operations of investment activity rather than representative of its capital structure.
EBITDA and Adjusted EBITDA 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
- 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 and Adjusted EBITDA differently than we do, limiting their usefulness as comparative measures. In addition, EBITDA and Adjusted EBITDA do not reflect the impact of earnings or charges resulting from matters we consider not to be indicative of our ongoing operations.
EBITDA and Adjusted EBITDA are not measurements of our financial performance under
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 depositary 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 depositary units as calculated by management.
See below for more information on how we calculate the Company's indicative net asset value.
September 30, | June 30, | December 31, | |||
2024 | 2024 | 2023 | |||
(in millions)(unaudited) | |||||
Market-valued Subsidiaries and Investments: | |||||
Holding Company interest in Investment Funds(1) | |||||
CVR Energy(2) | 1,536 | 1,785 | 2,021 | ||
Total market-valued subsidiaries and investments | |||||
Other Subsidiaries: | |||||
Viskase(3) | |||||
Real Estate Holdings(1) | 442 | 434 | 439 | ||
WestPoint Home(1) | 164 | 160 | 153 | ||
Vivus(1) | 221 | 217 | 227 | ||
Automotive Services(4) | 478 | 671 | 660 | ||
Automotive Parts(1) | 10 | 14 | 15 | ||
Automotive Owned Real Estate Assets(5) | 763 | 763 | 763 | ||
Icahn Automotive Group | 1,251 | 1,448 | 1,438 | ||
Operating Business Indicative Gross Asset Value | |||||
Add: Other Net Assets(6) | 64 | 85 | 114 | ||
Indicative Gross Asset Value | |||||
Add: Holding Company cash and cash equivalents(7) | 1,566 | 1,470 | 1,584 | ||
Less: Holding Company debt(7) | (4,683) | (4,860) | (4,847) | ||
Indicative Net Asset Value |
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) | Represents GAAP equity attributable to us as of each respective date. |
(2) | Based on closing share price on each date (or if such date was not a trading day, the immediately preceding trading day) 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, valued at 9.0x Adjusted EBITDA for the trailing twelve months ended as of each respective date. |
(4) | Amounts based on market comparables, valued at 10.0x Adjusted EBITDA for the trailing twelve months ended as of each respective date. |
(5) | Management performed a valuation on the owned real-estate with the assistance of third-party consultants to estimate fair-market-value. This analysis utilized property-level market rents, location level profitability, and utilized prevailing cap rates ranging from |
(6) | Represents GAAP equity of the Holding Company Segment, excluding cash and cash equivalents, debt and non-cash deferred tax assets or liabilities. As of September 30, 2024, June 30, 2024 and December 31, 2023, Other Net Assets includes |
(7) | Holding Company's balance as of each respective date. |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||
2024 | 2023 | 2024 | 2023 | ||||
(in millions)(unaudited) | |||||||
Adjusted EBITDA | |||||||
Net income (loss) | ( | ( | ( | ||||
Interest expense, net | 73 | 64 | 220 | 199 | |||
Income tax (benefit) expense | (13) | 96 | (2) | 82 | |||
Depreciation and amortization | 126 | 133 | 382 | 384 | |||
EBITDA before non-controlling interests | 266 | 263 | 168 | (142) | |||
Credit loss on related party note receivable | - | 23 | - | 139 | |||
Loss on deconsolidation of subsidiary | - | - | - | 246 | |||
Loss (gain) on disposition of assets, net | 1 | (3) | 5 | (6) | |||
Transformation costs | 8 | 10 | 30 | 30 | |||
(Gain) loss on extinguishment of debt, net | (9) | - | (8) | - | |||
Out of period adjustments | - | - | (2) | 8 | |||
Other | 25 | 3 | 32 | 9 | |||
Adjusted EBITDA before non-controlling interests | |||||||
Adjusted EBITDA attributable to IEP | |||||||
Net income (loss) | ( | ( | ( | ||||
Interest expense, net | 63 | 57 | 191 | 175 | |||
Income tax (benefit) expense | (10) | 71 | 9 | 32 | |||
Depreciation and amortization | 83 | 88 | 253 | 265 | |||
EBITDA before non-controlling interests | 158 | 210 | 106 | (73) | |||
Credit loss on related party note receivable | - | 23 | - | 139 | |||
Loss on deconsolidation of subsidiary | - | - | - | 246 | |||
Loss (gain) on disposition of assets, net | 1 | (3) | 5 | (6) | |||
Transformation costs | 8 | 10 | 30 | 30 | |||
(Gain) loss on extinguishment of debt, net | (9) | - | (8) | - | |||
Out of period adjustments | - | - | (2) | 8 | |||
Other | 25 | 3 | 31 | 8 | |||
Adjusted EBITDA attributable to IEP |
Investor Contact:
Ted Papapostolou, Chief Financial Officer
IR@ielp.com
(800) 255-2737
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SOURCE Icahn Enterprises L.P.
FAQ
What was Icahn Enterprises (IEP) Q3 2024 net income?
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