☑
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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☐
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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Delaware
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32-0434238
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(State or other jurisdiction of incorporation or organization)
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(I.R.S. Employer Identification No.)
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1345 Avenue of the Americas, 45th Floor
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New York
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NY
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10105
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(Address of principal executive offices)
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(Zip Code)
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Large accelerated filer
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þ
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Accelerated filer
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¨
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Non-accelerated filer
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¨
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Smaller reporting company
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☐
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Emerging growth company
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☐
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•
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changes in economic conditions generally and specifically in our industry sectors, and other risks relating to the global economy;
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•
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reductions in cash flows received from our assets, as well as contractual limitations on the use of our aviation assets to secure debt for borrowed money;
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•
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our ability to take advantage of acquisition opportunities at favorable prices;
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•
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a lack of liquidity surrounding our assets, which could impede our ability to vary our portfolio in an appropriate manner;
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•
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the relative spreads between the yield on the assets we acquire and the cost of financing;
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•
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adverse changes in the financing markets we access affecting our ability to finance our acquisitions;
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•
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customer defaults on their obligations;
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•
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our ability to renew existing contracts and enter into new contracts with existing or potential customers;
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•
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the availability and cost of capital for future acquisitions;
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•
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concentration of a particular type of asset or in a particular sector;
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•
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competition within the aviation, energy, intermodal transport and rail sectors;
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•
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the competitive market for acquisition opportunities;
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•
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risks related to operating through joint ventures or partnerships or through consortium arrangements;
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•
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obsolescence of our assets or our ability to sell, re-lease or re-charter our assets;
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•
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exposure to uninsurable losses and force majeure events;
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•
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infrastructure operations may require substantial capital expenditures;
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•
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the legislative/regulatory environment and exposure to increased economic regulation;
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•
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exposure to the oil and gas industry’s volatile oil and gas prices;
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•
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difficulties in obtaining effective legal redress in jurisdictions in which we operate with less developed legal systems;
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•
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our ability to maintain our exemption from registration under the Investment Company Act of 1940 and the fact that maintaining such exemption imposes limits on our operations;
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•
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our ability to successfully utilize leverage in connection with our investments;
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•
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foreign currency risk and risk management activities;
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•
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effectiveness of our internal control over financial reporting;
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•
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exposure to environmental risks, including increasing environmental legislation and the broader impacts of climate change;
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•
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changes in interest rates and/or credit spreads, as well as the success of any hedging strategy we may undertake in relation to such changes;
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•
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actions taken by national, state, or provincial governments, including nationalization, or the imposition of new taxes, could materially impact the financial performance or value of our assets;
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•
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our dependence on our Manager and its professionals and actual, potential or perceived conflicts of interest in our relationship with our Manager;
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•
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effects of the merger of Fortress Investment Group LLC with affiliates of SoftBank Group Corp.;
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•
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volatility in the market price of our common shares;
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•
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the inability to pay dividends to our shareholders in the future; and
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•
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other risks described in the “Risk Factors” section of this report.
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PART I - FINANCIAL INFORMATION
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Item 1.
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Item 2.
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Item 3.
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Item 4.
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PART II - OTHER INFORMATION
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Item 1.
|
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Item 1A.
|
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Item 2.
|
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Item 3.
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Item 4.
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Item 5.
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Item 6.
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(Unaudited)
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Notes
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June 30, 2019
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December 31, 2018
|
||||
Assets
|
|
|
|
|
|
||||
Cash and cash equivalents
|
2
|
|
$
|
115,559
|
|
|
$
|
99,601
|
|
Restricted cash
|
2
|
|
58,817
|
|
|
21,236
|
|
||
Accounts receivable, net
|
|
|
61,878
|
|
|
53,789
|
|
||
Leasing equipment, net
|
3
|
|
1,509,848
|
|
|
1,432,210
|
|
||
Operating lease right-of-use assets, net
|
12
|
|
42,993
|
|
|
—
|
|
||
Finance leases, net
|
4
|
|
20,092
|
|
|
18,623
|
|
||
Property, plant, and equipment, net
|
5
|
|
855,013
|
|
|
708,853
|
|
||
Investments
|
6
|
|
38,727
|
|
|
40,560
|
|
||
Intangible assets, net
|
7
|
|
32,409
|
|
|
38,513
|
|
||
Goodwill
|
|
|
116,584
|
|
|
116,584
|
|
||
Other assets
|
2
|
|
236,589
|
|
|
108,809
|
|
||
Total assets
|
|
|
$
|
3,088,509
|
|
|
$
|
2,638,778
|
|
|
|
|
|
|
|
||||
Liabilities
|
|
|
|
|
|
||||
Accounts payable and accrued liabilities
|
|
|
$
|
117,280
|
|
|
$
|
112,188
|
|
Debt, net
|
8
|
|
1,631,136
|
|
|
1,237,347
|
|
||
Maintenance deposits
|
|
|
180,824
|
|
|
158,163
|
|
||
Security deposits
|
|
|
41,103
|
|
|
38,539
|
|
||
Operating lease liabilities
|
12
|
|
43,459
|
|
|
—
|
|
||
Other liabilities
|
|
|
36,474
|
|
|
38,759
|
|
||
Total liabilities
|
|
|
$
|
2,050,276
|
|
|
$
|
1,584,996
|
|
|
|
|
|
|
|
||||
Commitments and contingencies
|
18
|
|
|
|
|
||||
|
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||||
Equity
|
|
|
|
|
|
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Common shares ($0.01 par value per share; 2,000,000,000 shares authorized; 84,846,083 and 84,050,889 shares issued and outstanding as of June 30, 2019 and December 31, 2018, respectively)
|
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|
$
|
848
|
|
|
$
|
840
|
|
Additional paid in capital
|
|
|
972,836
|
|
|
1,029,376
|
|
||
Accumulated deficit
|
|
|
(18,865
|
)
|
|
(32,817
|
)
|
||
Accumulated other comprehensive income
|
|
|
34,058
|
|
|
—
|
|
||
Shareholders' equity
|
|
|
988,877
|
|
|
997,399
|
|
||
Non-controlling interest in equity of consolidated subsidiaries
|
|
|
49,356
|
|
|
56,383
|
|
||
Total equity
|
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|
1,038,233
|
|
|
1,053,782
|
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Total liabilities and equity
|
|
|
$
|
3,088,509
|
|
|
$
|
2,638,778
|
|
|
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Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
Notes
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2019
|
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2018
|
|
2019
|
|
2018
|
||||||||
Revenues
|
|
|
|
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|
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|
|
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Equipment leasing revenues
|
|
|
$
|
79,200
|
|
|
$
|
59,330
|
|
|
$
|
151,652
|
|
|
$
|
115,114
|
|
Infrastructure revenues
|
|
|
79,805
|
|
|
12,649
|
|
|
131,980
|
|
|
25,709
|
|
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Total revenues
|
11
|
|
159,005
|
|
|
71,979
|
|
|
283,632
|
|
|
140,823
|
|
||||
|
|
|
|
|
|
|
|
|
|
||||||||
Expenses
|
|
|
|
|
|
|
|
|
|
||||||||
Operating expenses
|
|
|
92,763
|
|
|
27,593
|
|
|
154,681
|
|
|
55,172
|
|
||||
General and administrative
|
|
|
4,297
|
|
|
4,573
|
|
|
9,029
|
|
|
8,159
|
|
||||
Acquisition and transaction expenses
|
|
|
2,308
|
|
|
1,508
|
|
|
3,782
|
|
|
3,274
|
|
||||
Management fees and incentive allocation to affiliate
|
15
|
|
5,710
|
|
|
4,495
|
|
|
9,548
|
|
|
8,234
|
|
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Depreciation and amortization
|
3, 5, 7
|
|
42,600
|
|
|
32,844
|
|
|
82,133
|
|
|
62,431
|
|
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Interest expense
|
|
|
25,472
|
|
|
12,857
|
|
|
46,775
|
|
|
24,728
|
|
||||
Total expenses
|
|
|
173,150
|
|
|
83,870
|
|
|
305,948
|
|
|
161,998
|
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|
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|
|
|
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|
|
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Other income (expense)
|
|
|
|
|
|
|
|
|
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Equity in losses of unconsolidated entities
|
6
|
|
(169
|
)
|
|
(251
|
)
|
|
(553
|
)
|
|
(156
|
)
|
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Gain on sale of equipment, net
|
|
|
22,630
|
|
|
4,996
|
|
|
24,355
|
|
|
4,991
|
|
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Interest income
|
|
|
240
|
|
|
74
|
|
|
331
|
|
|
250
|
|
||||
Other income
|
|
|
4,938
|
|
|
1,157
|
|
|
2,334
|
|
|
1,337
|
|
||||
Total other income
|
|
|
27,639
|
|
|
5,976
|
|
|
26,467
|
|
|
6,422
|
|
||||
|
|
|
|
|
|
|
|
|
|
||||||||
Income (loss) before income taxes
|
|
|
13,494
|
|
|
(5,915
|
)
|
|
4,151
|
|
|
(14,753
|
)
|
||||
(Benefit from) provision for income taxes
|
14
|
|
(2,299
|
)
|
|
534
|
|
|
(1,846
|
)
|
|
1,029
|
|
||||
Net income (loss)
|
|
|
15,793
|
|
|
(6,449
|
)
|
|
5,997
|
|
|
(15,782
|
)
|
||||
Less: Net loss attributable to non-controlling interests in consolidated subsidiaries
|
|
|
(4,539
|
)
|
|
(7,288
|
)
|
|
(7,955
|
)
|
|
(16,049
|
)
|
||||
Net income attributable to shareholders
|
|
|
$
|
20,332
|
|
|
$
|
839
|
|
|
$
|
13,952
|
|
|
$
|
267
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Earnings per share
|
17
|
|
|
|
|
|
|
|
|
||||||||
Basic
|
|
|
$
|
0.24
|
|
|
$
|
0.01
|
|
|
$
|
0.16
|
|
|
$
|
—
|
|
Diluted
|
|
|
$
|
0.24
|
|
|
$
|
0.01
|
|
|
$
|
0.16
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Weighted Average Shares Outstanding:
|
|
|
|
|
|
|
|
|
|
||||||||
Basic
|
|
|
85,987,769
|
|
|
83,160,037
|
|
|
85,987,115
|
|
|
82,351,736
|
|
||||
Diluted
|
|
|
85,989,029
|
|
|
83,160,047
|
|
|
85,987,115
|
|
|
82,351,858
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Net income (loss)
|
$
|
15,793
|
|
|
$
|
(6,449
|
)
|
|
$
|
5,997
|
|
|
$
|
(15,782
|
)
|
Other comprehensive income (loss), net of deferred tax:
|
|
|
|
|
|
|
|
||||||||
Change in fair value of cash flow hedge, net (1)
|
77,070
|
|
|
—
|
|
|
34,058
|
|
|
—
|
|
||||
Comprehensive income (loss)
|
92,863
|
|
|
(6,449
|
)
|
|
40,055
|
|
|
(15,782
|
)
|
||||
Comprehensive loss attributable to non-controlling interest
|
(4,539
|
)
|
|
(7,288
|
)
|
|
(7,955
|
)
|
|
(16,049
|
)
|
||||
Comprehensive income attributable to shareholders
|
$
|
97,402
|
|
|
$
|
839
|
|
|
$
|
48,010
|
|
|
$
|
267
|
|
|
Three and Six Months Ended June 30, 2019
|
||||||||||||||||||||||
|
Common Shares
|
|
Additional Paid In Capital
|
|
Accumulated Deficit
|
|
Accumulated Other Comprehensive Income
|
|
Non-Controlling Interest in Equity of Consolidated Subsidiaries
|
|
Total Equity
|
||||||||||||
Equity - December 31, 2018
|
$
|
840
|
|
|
$
|
1,029,376
|
|
|
$
|
(32,817
|
)
|
|
$
|
—
|
|
|
$
|
56,383
|
|
|
$
|
1,053,782
|
|
Net loss for the period
|
|
|
|
|
(6,380
|
)
|
|
|
|
(3,416
|
)
|
|
(9,796
|
)
|
|||||||||
Other comprehensive loss
|
|
|
|
|
—
|
|
|
(43,012
|
)
|
|
—
|
|
|
(43,012
|
)
|
||||||||
Total comprehensive loss
|
|
|
|
|
(6,380
|
)
|
|
(43,012
|
)
|
|
(3,416
|
)
|
|
(52,808
|
)
|
||||||||
Issuance of common shares
|
5
|
|
|
234
|
|
|
|
|
|
|
—
|
|
|
239
|
|
||||||||
Conversion of participating securities
|
|
|
(4
|
)
|
|
|
|
|
|
|
|
(4
|
)
|
||||||||||
Dividends declared
|
|
|
(28,383
|
)
|
|
|
|
|
|
—
|
|
|
(28,383
|
)
|
|||||||||
Equity-based compensation
|
|
|
—
|
|
|
|
|
|
|
228
|
|
|
228
|
|
|||||||||
Equity - March 31, 2019
|
845
|
|
|
1,001,223
|
|
|
(39,197
|
)
|
|
(43,012
|
)
|
|
53,195
|
|
|
973,054
|
|
||||||
Net income (loss) for the period
|
|
|
|
|
20,332
|
|
|
|
|
(4,539
|
)
|
|
15,793
|
|
|||||||||
Other comprehensive income
|
|
|
|
|
—
|
|
|
77,070
|
|
|
—
|
|
|
77,070
|
|
||||||||
Total comprehensive income (loss)
|
|
|
|
|
20,332
|
|
|
77,070
|
|
|
(4,539
|
)
|
|
92,863
|
|
||||||||
Issuance of common shares
|
3
|
|
|
—
|
|
|
|
|
|
|
—
|
|
|
3
|
|
||||||||
Conversion of participating securities
|
|
|
(3
|
)
|
|
|
|
|
|
|
|
(3
|
)
|
||||||||||
Dividends declared
|
|
|
(28,384
|
)
|
|
|
|
|
|
—
|
|
|
(28,384
|
)
|
|||||||||
Equity-based compensation
|
|
|
—
|
|
|
|
|
|
|
700
|
|
|
700
|
|
|||||||||
Equity - June 30, 2019
|
$
|
848
|
|
|
$
|
972,836
|
|
|
$
|
(18,865
|
)
|
|
$
|
34,058
|
|
|
$
|
49,356
|
|
|
$
|
1,038,233
|
|
|
Three and Six Months Ended June 30, 2018
|
||||||||||||||||||||||
|
Common Shares
|
|
Additional Paid In Capital
|
|
Accumulated Deficit
|
|
Accumulated Other Comprehensive Income
|
|
Non-Controlling Interest in Equity of Consolidated Subsidiaries
|
|
Total Equity
|
||||||||||||
Equity - December 31, 2017
|
$
|
758
|
|
|
$
|
985,009
|
|
|
$
|
(38,699
|
)
|
|
$
|
—
|
|
|
$
|
88,007
|
|
|
$
|
1,035,075
|
|
Net loss for the period
|
|
|
|
|
(572
|
)
|
|
|
|
(8,761
|
)
|
|
(9,333
|
)
|
|||||||||
Other comprehensive income
|
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Total comprehensive loss
|
|
|
|
|
(572
|
)
|
|
—
|
|
|
(8,761
|
)
|
|
(9,333
|
)
|
||||||||
Issuance of common shares
|
70
|
|
|
127,807
|
|
|
|
|
|
|
—
|
|
|
127,877
|
|
||||||||
Dividends declared
|
|
|
(27,333
|
)
|
|
|
|
|
|
—
|
|
|
(27,333
|
)
|
|||||||||
Equity-based compensation
|
|
|
9
|
|
|
|
|
|
|
199
|
|
|
208
|
|
|||||||||
Equity - March 31, 2018
|
828
|
|
|
1,085,492
|
|
|
(39,271
|
)
|
|
—
|
|
|
79,445
|
|
|
1,126,494
|
|
||||||
Net income (loss) for the period
|
|
|
|
|
|
839
|
|
|
|
|
(7,288
|
)
|
|
(6,449
|
)
|
||||||||
Other comprehensive income
|
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Total comprehensive income (loss)
|
|
|
|
|
839
|
|
|
—
|
|
|
(7,288
|
)
|
|
(6,449
|
)
|
||||||||
Purchase of non-controlling interest
|
|
|
7,225
|
|
|
|
|
|
|
(10,930
|
)
|
|
(3,705
|
)
|
|||||||||
Issuance of common shares
|
—
|
|
|
86
|
|
|
|
|
|
|
—
|
|
|
86
|
|
||||||||
Dividends declared
|
|
|
(27,329
|
)
|
|
|
|
|
|
—
|
|
|
(27,329
|
)
|
|||||||||
Equity-based compensation
|
|
|
—
|
|
|
|
|
|
|
229
|
|
|
229
|
|
|||||||||
Equity - June 30, 2018
|
$
|
828
|
|
|
$
|
1,065,474
|
|
|
$
|
(38,432
|
)
|
|
$
|
—
|
|
|
$
|
61,456
|
|
|
$
|
1,089,326
|
|
|
Six Months Ended June 30,
|
||||||
|
2019
|
|
2018
|
||||
Cash flows from operating activities:
|
|
|
|
||||
Net income (loss)
|
$
|
5,997
|
|
|
$
|
(15,782
|
)
|
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
|
|
|
|
||||
Equity in losses of unconsolidated entities
|
553
|
|
|
156
|
|
||
Gain on sale of equipment, net
|
(24,355
|
)
|
|
(4,991
|
)
|
||
Security deposits and maintenance claims included in earnings
|
(2,869
|
)
|
|
(4,325
|
)
|
||
Equity-based compensation
|
928
|
|
|
437
|
|
||
Depreciation and amortization
|
82,133
|
|
|
62,431
|
|
||
Change in current and deferred income taxes
|
(2,655
|
)
|
|
564
|
|
||
Change in fair value of non-hedge derivative
|
(250
|
)
|
|
(182
|
)
|
||
Amortization of lease intangibles and incentives
|
17,288
|
|
|
12,943
|
|
||
Amortization of deferred financing costs
|
4,043
|
|
|
2,483
|
|
||
Bad debt expense
|
3,062
|
|
|
1,521
|
|
||
Other
|
547
|
|
|
21
|
|
||
Change in:
|
|
|
|
||||
Accounts receivable
|
(14,675
|
)
|
|
(10,064
|
)
|
||
Other assets
|
(13,105
|
)
|
|
(10,318
|
)
|
||
Accounts payable and accrued liabilities
|
8,661
|
|
|
22,091
|
|
||
Management fees payable to affiliate
|
871
|
|
|
(668
|
)
|
||
Other liabilities
|
(8,062
|
)
|
|
2,835
|
|
||
Net cash provided by operating activities
|
58,112
|
|
|
59,152
|
|
||
|
|
|
|
||||
Cash flows from investing activities:
|
|
|
|
||||
Investment in notes receivable
|
—
|
|
|
(912
|
)
|
||
Investment in unconsolidated entities and available for sale securities
|
—
|
|
|
(1,115
|
)
|
||
Principal collections on finance leases
|
2,996
|
|
|
539
|
|
||
Acquisition of leasing equipment
|
(209,171
|
)
|
|
(205,819
|
)
|
||
Acquisition of property, plant and equipment
|
(159,252
|
)
|
|
(124,039
|
)
|
||
Acquisition of lease intangibles
|
623
|
|
|
(2,225
|
)
|
||
Purchase deposits for acquisitions
|
(33,637
|
)
|
|
(17,890
|
)
|
||
Proceeds from sale of leasing equipment
|
71,497
|
|
|
26,499
|
|
||
Proceeds from sale of property, plant and equipment
|
7
|
|
|
31
|
|
||
Return of capital distributions from unconsolidated entities
|
1,280
|
|
|
—
|
|
||
Return of purchase deposit for aircraft and aircraft engines
|
—
|
|
|
240
|
|
||
Return of deposit on sale of engine
|
—
|
|
|
(400
|
)
|
||
Net cash used in investing activities
|
$
|
(325,657
|
)
|
|
$
|
(325,091
|
)
|
|
Six Months Ended June 30,
|
||||||
|
2019
|
|
2018
|
||||
Cash flows from financing activities:
|
|
|
|
||||
Proceeds from debt
|
$
|
529,477
|
|
|
$
|
204,350
|
|
Repayment of debt
|
(128,835
|
)
|
|
(45,874
|
)
|
||
Payment of deferred financing costs
|
(32,443
|
)
|
|
(1,819
|
)
|
||
Receipt of security deposits
|
3,475
|
|
|
3,748
|
|
||
Return of security deposits
|
(233
|
)
|
|
(805
|
)
|
||
Receipt of maintenance deposits
|
28,903
|
|
|
22,355
|
|
||
Release of maintenance deposits
|
(22,493
|
)
|
|
(4,276
|
)
|
||
Proceeds from issuance of common shares, net of underwriter's discount
|
—
|
|
|
128,450
|
|
||
Common shares issuance costs
|
—
|
|
|
(789
|
)
|
||
Purchase of non-controlling interest
|
—
|
|
|
(3,700
|
)
|
||
Cash dividends
|
(56,767
|
)
|
|
(54,662
|
)
|
||
Net cash provided by financing activities
|
$
|
321,084
|
|
|
$
|
246,978
|
|
|
|
|
|
||||
Net increase (decrease) in cash and cash equivalents and restricted cash
|
53,539
|
|
|
(18,961
|
)
|
||
Cash and cash equivalents and restricted cash, beginning of period
|
120,837
|
|
|
92,806
|
|
||
Cash and cash equivalents and restricted cash, end of period
|
$
|
174,376
|
|
|
$
|
73,845
|
|
|
|
|
|
||||
Supplemental disclosure of non-cash investing and financing activities:
|
|
|
|
||||
Proceeds from borrowings of debt
|
$
|
—
|
|
|
$
|
511
|
|
Acquisition of leasing equipment
|
1,558
|
|
|
(4,704
|
)
|
||
Acquisition of property, plant and equipment
|
(13,735
|
)
|
|
(3,621
|
)
|
||
Settled and assumed security deposits
|
(679
|
)
|
|
650
|
|
||
Billed, assumed and settled maintenance deposits
|
14,563
|
|
|
(1,427
|
)
|
||
Purchase of non-controlling interest
|
—
|
|
|
7,225
|
|
||
Change in fair value of cash flow hedge
|
34,058
|
|
|
—
|
|
||
Issuance of common shares
|
242
|
|
|
301
|
|
1.
|
ORGANIZATION
|
2.
|
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
|
3.
|
LEASING EQUIPMENT, NET
|
|
June 30, 2019
|
|
December 31, 2018
|
||||
Leasing equipment
|
$
|
1,794,011
|
|
|
$
|
1,672,156
|
|
Less: accumulated depreciation
|
(284,163
|
)
|
|
(239,946
|
)
|
||
Leasing equipment, net
|
$
|
1,509,848
|
|
|
$
|
1,432,210
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Depreciation expense for leasing equipment
|
$
|
35,150
|
|
|
$
|
26,779
|
|
|
$
|
67,046
|
|
|
$
|
50,470
|
|
|
June 30, 2019
|
|
December 31, 2018
|
||||
Finance leases
|
$
|
30,426
|
|
|
$
|
28,476
|
|
Unearned revenue
|
(10,334
|
)
|
|
(9,853
|
)
|
||
Finance leases, net
|
$
|
20,092
|
|
|
$
|
18,623
|
|
5.
|
PROPERTY, PLANT AND EQUIPMENT, NET
|
|
June 30, 2019
|
|
December 31, 2018
|
||||
Land, site improvements and rights
|
$
|
74,633
|
|
|
$
|
75,028
|
|
Construction in progress (1)
|
330,872
|
|
|
253,239
|
|
||
Buildings and improvements
|
15,685
|
|
|
14,514
|
|
||
Terminal machinery and equipment
|
418,971
|
|
|
349,227
|
|
||
Proved oil and gas properties
|
29,940
|
|
|
20,099
|
|
||
Track and track related assets
|
42,833
|
|
|
42,349
|
|
||
Railroad equipment
|
5,616
|
|
|
5,383
|
|
||
Railcars and locomotives
|
4,682
|
|
|
4,513
|
|
||
Computer hardware and software
|
3,811
|
|
|
3,806
|
|
||
Furniture and fixtures
|
599
|
|
|
572
|
|
||
Vehicles
|
2,173
|
|
|
1,636
|
|
||
|
929,815
|
|
|
770,366
|
|
||
Less: accumulated depreciation
|
(76,328
|
)
|
|
(63,032
|
)
|
||
Spare parts
|
1,526
|
|
|
1,519
|
|
||
Property, plant and equipment, net
|
$
|
855,013
|
|
|
$
|
708,853
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Depreciation expense for property, plant and equipment
|
$
|
6,558
|
|
|
$
|
5,166
|
|
|
$
|
13,295
|
|
|
$
|
10,162
|
|
6.
|
INVESTMENTS
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Advanced Engine Repair JV
|
$
|
(242
|
)
|
|
$
|
(126
|
)
|
|
$
|
(443
|
)
|
|
$
|
(350
|
)
|
JGP Energy Partners LLC
|
92
|
|
|
(235
|
)
|
|
(128
|
)
|
|
(87
|
)
|
||||
Intermodal Finance I, Ltd.
|
(19
|
)
|
|
110
|
|
|
18
|
|
|
281
|
|
||||
Total
|
$
|
(169
|
)
|
|
$
|
(251
|
)
|
|
$
|
(553
|
)
|
|
$
|
(156
|
)
|
7.
|
INTANGIBLE ASSETS AND LIABILITIES, NET
|
|
June 30, 2019
|
||||||||||||||
|
Aviation Leasing
|
|
Jefferson Terminal
|
|
Railroad
|
|
Total
|
||||||||
Intangible assets
|
|
|
|
|
|
|
|
||||||||
Acquired favorable lease intangibles
|
$
|
48,810
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
48,810
|
|
Less: Accumulated amortization
|
(34,759
|
)
|
|
—
|
|
|
—
|
|
|
(34,759
|
)
|
||||
Acquired favorable lease intangibles, net
|
14,051
|
|
|
—
|
|
|
—
|
|
|
14,051
|
|
||||
Customer relationships
|
—
|
|
|
35,513
|
|
|
225
|
|
|
35,738
|
|
||||
Less: Accumulated amortization
|
—
|
|
|
(17,155
|
)
|
|
(225
|
)
|
|
(17,380
|
)
|
||||
Acquired customer relationships, net
|
—
|
|
|
18,358
|
|
|
—
|
|
|
18,358
|
|
||||
Total intangible assets, net
|
$
|
14,051
|
|
|
$
|
18,358
|
|
|
$
|
—
|
|
|
$
|
32,409
|
|
|
|
|
|
|
|
|
|
||||||||
Intangible liabilities
|
|
|
|
|
|
|
|
||||||||
Acquired unfavorable lease intangibles
|
$
|
5,025
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
5,025
|
|
Less: Accumulated amortization
|
(2,428
|
)
|
|
—
|
|
|
—
|
|
|
(2,428
|
)
|
||||
Acquired unfavorable lease intangibles, net
|
$
|
2,597
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,597
|
|
|
December 31, 2018
|
||||||||||||||
|
Aviation Leasing
|
|
Jefferson Terminal
|
|
Railroad
|
|
Total
|
||||||||
Intangible assets
|
|
|
|
|
|
|
|
||||||||
Acquired favorable lease intangibles
|
$
|
48,143
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
48,143
|
|
Less: Accumulated amortization
|
(29,780
|
)
|
|
—
|
|
|
—
|
|
|
(29,780
|
)
|
||||
Acquired favorable lease intangibles, net
|
18,363
|
|
|
—
|
|
|
—
|
|
|
18,363
|
|
||||
Customer relationships
|
—
|
|
|
35,513
|
|
|
225
|
|
|
35,738
|
|
||||
Less: Accumulated amortization
|
—
|
|
|
(15,378
|
)
|
|
(210
|
)
|
|
(15,588
|
)
|
||||
Acquired customer relationships, net
|
—
|
|
|
20,135
|
|
|
15
|
|
|
20,150
|
|
||||
Total intangible assets, net
|
$
|
18,363
|
|
|
$
|
20,135
|
|
|
$
|
15
|
|
|
$
|
38,513
|
|
|
|
|
|
|
|
|
|
||||||||
Intangible liabilities
|
|
|
|
|
|
|
|
||||||||
Acquired unfavorable lease intangibles
|
$
|
3,736
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3,736
|
|
Less: Accumulated amortization
|
(2,114
|
)
|
|
—
|
|
|
—
|
|
|
(2,114
|
)
|
||||
Acquired unfavorable lease intangibles, net
|
$
|
1,622
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,622
|
|
Remainder of 2019
|
$
|
5,278
|
|
2020
|
7,977
|
|
|
2021
|
6,266
|
|
|
2022
|
4,499
|
|
|
2023
|
3,583
|
|
|
Thereafter
|
2,209
|
|
|
Total
|
$
|
29,812
|
|
|
June 30, 2019
|
|
December 31, 2018
|
||||||||
|
Outstanding Borrowings
|
|
Stated Interest Rate
|
|
Maturity Date
|
|
Outstanding Borrowings
|
||||
Loans payable
|
|
|
|
|
|
|
|
||||
FTAI Pride Credit Agreement (1)
|
$
|
44,618
|
|
|
LIBOR + 4.50%
|
|
9/15/2019
|
|
$
|
47,743
|
|
CMQR Credit
Agreement
|
23,300
|
|
|
(i) Adjusted LIBOR + 2.50% or 4.50%; or
(ii) U.S. or Canadian Base Rate + 1.50% or 3.50%; or
(iii) Canadian Fixed Rate + 2.50% or 4.50%
|
|
5/8/2022
|
|
22,265
|
|
||
Revolving Credit
Facility (2)
|
90,000
|
|
|
(i) Base Rate + 2.00%; or
(ii) Adjusted Eurodollar Rate + 3.00%
|
|
1/31/2022
|
|
100,000
|
|
||
Jefferson Revolver (2)
|
73,000
|
|
|
(i) Base Rate + 1.50%; or
(ii) Base Rate + 2.50% (Eurodollar)
|
|
3/7/2021
|
|
49,805
|
|
||
DRP Revolver (3)
|
21,600
|
|
|
(i) Base Rate + 1.50%; or
(ii) Base Rate + 2.50% (Eurodollar)
|
|
11/5/2021
|
|
—
|
|
||
LREG Credit
Agreement (4)
|
71,500
|
|
|
First Lien Credit Agreement: 7.30%
LC Facility: Base Rate + 2.50% to 3.50%
Second Lien Credit Agreement: Base Rate + 7.50%
|
|
2/15/2022 to 6/30/2028
|
|
—
|
|
||
Total loans payable
|
324,018
|
|
|
|
|
|
|
219,813
|
|
||
Bonds payable
|
|
|
|
|
|
|
|
||||
Series 2012 Bonds (5)
|
42,765
|
|
|
8.25%
|
|
7/1/2032
|
|
42,797
|
|
||
Series 2016 Bonds (6)
|
144,200
|
|
|
7.25%
|
|
2/1/2036
|
|
144,200
|
|
||
Senior Notes due
2022 (7)
|
697,443
|
|
|
6.75%
|
|
3/15/2022
|
|
549,405
|
|
||
Senior Notes due
2025 (8)
|
444,607
|
|
|
6.50%
|
|
10/1/2025
|
|
295,642
|
|
||
Total bonds payable
|
1,329,015
|
|
|
|
|
|
|
1,032,044
|
|
||
|
|
|
|
|
|
|
|
||||
Debt
|
1,653,033
|
|
|
|
|
|
|
1,251,857
|
|
||
Less: Debt issuance costs
|
(21,897
|
)
|
|
|
|
|
|
(14,510
|
)
|
||
Total debt, net
|
$
|
1,631,136
|
|
|
|
|
|
|
$
|
1,237,347
|
|
|
|
|
|
|
|
|
|
||||
Total debt due within one year
|
$
|
213,488
|
|
|
|
|
|
|
$
|
71,678
|
|
9.
|
FAIR VALUE MEASUREMENTS
|
•
|
Level 1: Observable inputs such as quoted prices in active markets for identical assets or liabilities.
|
•
|
Level 2: Inputs other than quoted prices included within Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities or market corroborated inputs.
|
•
|
Level 3: Unobservable inputs for which there is little or no market data and which require us to develop our own assumptions about how market participants price the asset or liability.
|
•
|
Market approach—Uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities.
|
•
|
Income approach—Uses valuation techniques to convert future amounts to a single present amount based on current market expectations about those future amounts.
|
•
|
Cost approach—Based on the amount that currently would be required to replace the service capacity of an asset (replacement cost).
|
|
Fair Value as of
|
|
Fair Value Measurements Using Fair Value Hierarchy as of
|
|
|
||||||||||||
|
June 30, 2019
|
|
June 30, 2019
|
|
|
||||||||||||
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Valuation Technique
|
||||||||
Assets
|
|
|
|
|
|
|
|
|
|
||||||||
Cash and cash equivalents
|
$
|
115,559
|
|
|
$
|
115,559
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
Market
|
Restricted cash
|
58,817
|
|
|
58,817
|
|
|
—
|
|
|
—
|
|
|
Market
|
||||
Derivative assets
|
47,131
|
|
|
—
|
|
|
—
|
|
|
47,131
|
|
|
Income
|
||||
Total assets
|
$
|
221,507
|
|
|
$
|
174,376
|
|
|
$
|
—
|
|
|
$
|
47,131
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Liabilities
|
|
|
|
|
|
|
|
|
|
||||||||
Derivative liabilities
|
$
|
(93
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(93
|
)
|
|
Income
|
Total liabilities
|
$
|
(93
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(93
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Fair Value as of
|
|
Fair Value Measurements Using Fair Value Hierarchy as of
|
|
|
||||||||||||
|
December 31, 2018
|
|
December 31, 2018
|
|
|
||||||||||||
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Valuation Technique
|
||||||||
Assets
|
|
|
|
|
|
|
|
|
|
||||||||
Cash and cash equivalents
|
$
|
99,601
|
|
|
$
|
99,601
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
Market
|
Restricted cash
|
21,236
|
|
|
21,236
|
|
|
—
|
|
|
—
|
|
|
Market
|
||||
Derivative assets
|
7,470
|
|
|
—
|
|
|
—
|
|
|
7,470
|
|
|
Income
|
||||
Total
|
$
|
128,307
|
|
|
$
|
120,837
|
|
|
$
|
—
|
|
|
$
|
7,470
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Liabilities
|
|
|
|
|
|
|
|
|
|
||||||||
Derivative liabilities
|
$
|
(925
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(925
|
)
|
|
Income
|
Total liabilities
|
$
|
(925
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(925
|
)
|
|
|
|
June 30, 2019
|
|
December 31, 2018
|
||||
Series 2012 Bonds (1)
|
$
|
43,448
|
|
|
$
|
42,633
|
|
Series 2016 Bonds (1)
|
147,610
|
|
|
149,582
|
|
||
Senior Notes due 2022
|
728,980
|
|
|
551,144
|
|
||
Senior Notes due 2025
|
464,031
|
|
|
283,965
|
|
|
Notional Amount
|
|
Fair Value of Assets (1)
|
|
Fair Value of Liabilities (1)
|
|
Term
|
|||||
June 30, 2019
|
|
|
|
|
|
|
|
|||||
Derivatives Designated in Cash Flow Hedges:
|
|
|
|
|
|
|
|
|||||
Electricity swaps (MWh)
|
29,278
|
|
|
$
|
40,244
|
|
|
$
|
—
|
|
|
7 to 10 years
|
Non-hedge Derivative Instruments:
|
|
|
|
|
|
|
|
|||||
Electricity swaps (MWh)
|
4,207
|
|
|
$
|
2,517
|
|
|
$
|
—
|
|
|
7 to 10 years
|
Crude oil forwards (BBL)
|
1,889
|
|
|
4,370
|
|
|
(93
|
)
|
|
1 to 6 months
|
||
|
|
|
|
|
|
|
|
|||||
December 31, 2018
|
|
|
|
|
|
|
|
|||||
Derivatives Designated in Cash Flow Hedges:
|
|
|
|
|
|
|
|
|||||
Electricity swaps (MWh)
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
N/A
|
Non-hedge Derivative Instruments:
|
|
|
|
|
|
|
|
|||||
Electricity swaps (MWh)
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
N/A
|
Crude oil forwards (BBL)
|
3,225
|
|
|
7,470
|
|
|
(925
|
)
|
|
1 to 12 months
|
|
Three Months Ended June 30, 2019
|
|
Six Months Ended June 30, 2019
|
||||||||||||||||||||
|
Electricity Swaps
|
|
Crude Oil Forwards
|
|
Total
|
|
Electricity Swaps
|
|
Crude Oil Forwards
|
|
Total
|
||||||||||||
Beginning Balance
|
$
|
(45,382
|
)
|
|
$
|
5,695
|
|
|
$
|
(39,687
|
)
|
|
$
|
—
|
|
|
$
|
6,545
|
|
|
$
|
6,545
|
|
Net unrealized gains (losses) recognized in earnings
|
4,887
|
|
|
(1,417
|
)
|
|
3,470
|
|
|
2,517
|
|
|
(2,267
|
)
|
|
250
|
|
||||||
Gains recognized in other comprehensive income
|
83,256
|
|
|
—
|
|
|
83,256
|
|
|
40,244
|
|
(1)
|
—
|
|
|
40,244
|
|
||||||
Purchases
|
—
|
|
|
310
|
|
|
310
|
|
|
—
|
|
|
314
|
|
|
314
|
|
||||||
Sales
|
—
|
|
|
113
|
|
|
113
|
|
|
—
|
|
|
(854
|
)
|
|
(854
|
)
|
||||||
Settlements
|
—
|
|
|
(424
|
)
|
|
(424
|
)
|
|
—
|
|
|
539
|
|
|
539
|
|
||||||
Ending Balance
|
$
|
42,761
|
|
|
$
|
4,277
|
|
|
$
|
47,038
|
|
|
$
|
42,761
|
|
|
$
|
4,277
|
|
|
$
|
47,038
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Electricity Swaps:
|
|
|
|
|
|
|
|
||||||||
Gains recognized in other comprehensive income before reclassifications
|
$
|
83,256
|
|
|
$
|
—
|
|
|
$
|
40,244
|
|
|
$
|
—
|
|
Gains (losses) reclassified from accumulated other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Gains recognized in earnings
|
4,887
|
|
|
—
|
|
|
2,517
|
|
|
—
|
|
||||
Crude Oil Forwards:
|
|
|
|
|
|
|
|
||||||||
(Losses) gains recognized in earnings
|
$
|
(1,417
|
)
|
|
$
|
441
|
|
|
$
|
(2,267
|
)
|
|
$
|
(182
|
)
|
|
Three Months Ended June 30, 2019
|
||||||||||||||||||||||
|
Equipment Leasing
|
|
Infrastructure
|
|
|
|
|
||||||||||||||||
|
Aviation Leasing
|
|
Jefferson Terminal
|
|
Railroad
|
|
Ports and Terminals
|
|
Corporate and Other
|
|
Total
|
||||||||||||
Equipment leasing revenues
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Lease income
|
$
|
48,731
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3,157
|
|
|
$
|
51,888
|
|
Maintenance revenue
|
25,369
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
25,369
|
|
||||||
Finance lease income
|
881
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
881
|
|
||||||
Other revenue
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,062
|
|
|
1,062
|
|
||||||
Total equipment leasing revenues
|
74,981
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,219
|
|
|
79,200
|
|
||||||
Infrastructure revenues
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Lease income
|
—
|
|
|
821
|
|
|
—
|
|
|
265
|
|
|
—
|
|
|
1,086
|
|
||||||
Rail revenues
|
—
|
|
|
—
|
|
|
9,977
|
|
|
—
|
|
|
—
|
|
|
9,977
|
|
||||||
Terminal services revenues
|
—
|
|
|
7,537
|
|
|
—
|
|
|
1,028
|
|
|
—
|
|
|
8,565
|
|
||||||
Crude marketing revenues
|
—
|
|
|
59,204
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
59,204
|
|
||||||
Other revenue
|
—
|
|
|
—
|
|
|
—
|
|
|
973
|
|
|
—
|
|
|
973
|
|
||||||
Total infrastructure revenues
|
—
|
|
|
67,562
|
|
|
9,977
|
|
|
2,266
|
|
|
—
|
|
|
79,805
|
|
||||||
Total revenues
|
$
|
74,981
|
|
|
$
|
67,562
|
|
|
$
|
9,977
|
|
|
$
|
2,266
|
|
|
$
|
4,219
|
|
|
$
|
159,005
|
|
|
Three Months Ended June 30, 2018
|
||||||||||||||||||||||
|
Equipment Leasing
|
|
Infrastructure
|
|
|
|
|
||||||||||||||||
|
Aviation Leasing
|
|
Jefferson Terminal
|
|
Railroad
|
|
Ports and Terminals
|
|
Corporate and Other
|
|
Total
|
||||||||||||
Equipment leasing revenues
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Lease income
|
$
|
35,373
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,868
|
|
|
$
|
37,241
|
|
Maintenance revenue
|
19,940
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
19,940
|
|
||||||
Finance lease income
|
247
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
365
|
|
|
612
|
|
||||||
Other revenue
|
558
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
979
|
|
|
1,537
|
|
||||||
Total equipment leasing revenues
|
56,118
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,212
|
|
|
59,330
|
|
||||||
Infrastructure revenues
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Lease income
|
—
|
|
|
—
|
|
|
—
|
|
|
417
|
|
|
—
|
|
|
417
|
|
||||||
Rail revenues
|
—
|
|
|
—
|
|
|
8,788
|
|
|
—
|
|
|
—
|
|
|
8,788
|
|
||||||
Terminal services revenues
|
—
|
|
|
2,550
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,550
|
|
||||||
Crude marketing revenues
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Other revenue
|
—
|
|
|
—
|
|
|
—
|
|
|
894
|
|
|
—
|
|
|
894
|
|
||||||
Total infrastructure revenues
|
—
|
|
|
2,550
|
|
|
8,788
|
|
|
1,311
|
|
|
—
|
|
|
12,649
|
|
||||||
Total revenues
|
$
|
56,118
|
|
|
$
|
2,550
|
|
|
$
|
8,788
|
|
|
$
|
1,311
|
|
|
$
|
3,212
|
|
|
$
|
71,979
|
|
|
Six Months Ended June 30, 2019
|
||||||||||||||||||||||
|
Equipment Leasing
|
|
Infrastructure
|
|
|
|
|
||||||||||||||||
|
Aviation Leasing
|
|
Jefferson Terminal
|
|
Railroad
|
|
Ports and Terminals
|
|
Corporate and Other
|
|
Total
|
||||||||||||
Equipment leasing revenues
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Lease income
|
$
|
96,034
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
5,090
|
|
|
$
|
101,124
|
|
Maintenance revenue
|
47,146
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
47,146
|
|
||||||
Finance lease income
|
1,707
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,707
|
|
||||||
Other revenue
|
505
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,170
|
|
|
1,675
|
|
||||||
Total equipment leasing revenues
|
145,392
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6,260
|
|
|
151,652
|
|
||||||
Infrastructure revenues
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Lease income
|
—
|
|
|
1,129
|
|
|
—
|
|
|
620
|
|
|
—
|
|
|
1,749
|
|
||||||
Rail revenues
|
—
|
|
|
—
|
|
|
20,484
|
|
|
—
|
|
|
—
|
|
|
20,484
|
|
||||||
Terminal services revenues
|
—
|
|
|
12,404
|
|
|
—
|
|
|
2,846
|
|
|
—
|
|
|
15,250
|
|
||||||
Crude marketing revenues
|
—
|
|
|
89,983
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
89,983
|
|
||||||
Other revenue
|
—
|
|
|
—
|
|
|
—
|
|
|
4,514
|
|
|
—
|
|
|
4,514
|
|
||||||
Total infrastructure revenues
|
—
|
|
|
103,516
|
|
|
20,484
|
|
|
7,980
|
|
|
—
|
|
|
131,980
|
|
||||||
Total revenues
|
$
|
145,392
|
|
|
$
|
103,516
|
|
|
$
|
20,484
|
|
|
$
|
7,980
|
|
|
$
|
6,260
|
|
|
$
|
283,632
|
|
|
Six Months Ended June 30, 2018
|
||||||||||||||||||||||
|
Equipment Leasing
|
|
Infrastructure
|
|
|
|
|
||||||||||||||||
|
Aviation Leasing
|
|
Jefferson Terminal
|
|
Railroad
|
|
Ports and Terminals
|
|
Corporate and Other
|
|
Total
|
||||||||||||
Equipment leasing revenues
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Lease income
|
$
|
68,623
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
4,117
|
|
|
$
|
72,740
|
|
Maintenance revenue
|
39,425
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
39,425
|
|
||||||
Finance lease income
|
247
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
732
|
|
|
979
|
|
||||||
Other revenue
|
558
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,412
|
|
|
1,970
|
|
||||||
Total equipment leasing revenues
|
108,853
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6,261
|
|
|
115,114
|
|
||||||
Infrastructure revenues
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Lease income
|
—
|
|
|
—
|
|
|
—
|
|
|
799
|
|
|
—
|
|
|
799
|
|
||||||
Rail revenues
|
—
|
|
|
—
|
|
|
19,835
|
|
|
—
|
|
|
—
|
|
|
19,835
|
|
||||||
Terminal services revenues
|
—
|
|
|
3,803
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,803
|
|
||||||
Crude marketing revenues
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Other revenue
|
—
|
|
|
—
|
|
|
—
|
|
|
1,272
|
|
|
—
|
|
|
1,272
|
|
||||||
Total infrastructure revenues
|
—
|
|
|
3,803
|
|
|
19,835
|
|
|
2,071
|
|
|
—
|
|
|
25,709
|
|
||||||
Total revenues
|
$
|
108,853
|
|
|
$
|
3,803
|
|
|
$
|
19,835
|
|
|
$
|
2,071
|
|
|
$
|
6,261
|
|
|
$
|
140,823
|
|
|
Operating Leases
|
|
Finance Leases (1)
|
||||
Remainder of 2019
|
$
|
97,498
|
|
|
$
|
941
|
|
2020
|
142,458
|
|
|
1,611
|
|
||
2021
|
102,474
|
|
|
1,291
|
|
||
2022
|
65,496
|
|
|
897
|
|
||
2023
|
44,061
|
|
|
273
|
|
||
Thereafter
|
39,526
|
|
|
—
|
|
||
Total
|
$
|
491,513
|
|
|
$
|
5,013
|
|
|
Three Months Ended June 30, 2019
|
|
Six Months Ended June 30, 2019
|
||||
Finance Leases
|
|
|
|
||||
Amortization of right-of-use assets
|
$
|
50
|
|
|
$
|
99
|
|
Interest on lease liabilities
|
29
|
|
|
59
|
|
||
Finance lease expense
|
79
|
|
|
158
|
|
||
Operating lease expense
|
2,520
|
|
|
5,049
|
|
||
Short-term lease expense
|
672
|
|
|
1,732
|
|
||
Variable lease expense
|
605
|
|
|
897
|
|
||
Total lease expense
|
$
|
3,876
|
|
|
$
|
7,836
|
|
Right-of-use assets, net
|
$
|
42,993
|
|
Lease liabilities
|
43,459
|
|
|
|
|
||
Weighted average remaining lease term
|
35.6 years
|
|
|
Weighted average incremental borrowing rate
|
7.1
|
%
|
|
|
|
||
Cash paid for amounts included in the measurement of operating lease liabilities
|
|
||
Operating cash flows
|
$
|
5,056
|
|
Remainder of 2019
|
$
|
4,735
|
|
2020
|
5,625
|
|
|
2021
|
4,220
|
|
|
2022
|
3,502
|
|
|
2023
|
2,667
|
|
|
Thereafter
|
95,202
|
|
|
Total undiscounted lease payments
|
115,951
|
|
|
Less: Imputed interest
|
72,492
|
|
|
Total lease liabilities
|
$
|
43,459
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
|
Remaining Expense To Be Recognized, If All Vesting Conditions Are Met
|
Weighted Average Remaining Contractual Term, (in years)
|
||||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
||||||||||||
Stock Options
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
9
|
|
|
$
|
—
|
|
8.6
|
Restricted Shares
|
456
|
|
|
90
|
|
|
546
|
|
|
180
|
|
|
1,596
|
|
1.3
|
|||||
Common Units
|
244
|
|
|
139
|
|
|
382
|
|
|
248
|
|
|
3,603
|
|
1.5
|
|||||
Total
|
$
|
700
|
|
|
$
|
229
|
|
|
$
|
928
|
|
|
$
|
437
|
|
|
$
|
5,199
|
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Current:
|
|
|
|
|
|
|
|
||||||||
Federal
|
$
|
51
|
|
|
$
|
42
|
|
|
$
|
70
|
|
|
$
|
171
|
|
State and local
|
43
|
|
|
12
|
|
|
108
|
|
|
31
|
|
||||
Foreign
|
108
|
|
|
33
|
|
|
160
|
|
|
50
|
|
||||
Total current provision
|
202
|
|
|
87
|
|
|
338
|
|
|
252
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Deferred:
|
|
|
|
|
|
|
|
||||||||
Federal
|
(1,863
|
)
|
|
389
|
|
|
(1,760
|
)
|
|
677
|
|
||||
State and local
|
(668
|
)
|
|
58
|
|
|
(639
|
)
|
|
100
|
|
||||
Foreign
|
30
|
|
|
—
|
|
|
215
|
|
|
—
|
|
||||
Total deferred (benefit) provision
|
(2,501
|
)
|
|
447
|
|
|
(2,184
|
)
|
|
777
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Total (benefit) provision for income taxes
|
$
|
(2,299
|
)
|
|
$
|
534
|
|
|
$
|
(1,846
|
)
|
|
$
|
1,029
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Management fees
|
$
|
3,499
|
|
|
$
|
3,922
|
|
|
$
|
7,175
|
|
|
$
|
7,661
|
|
Income incentive allocation
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Capital gains incentive allocation
|
2,211
|
|
|
573
|
|
|
2,373
|
|
|
573
|
|
||||
Total
|
$
|
5,710
|
|
|
$
|
4,495
|
|
|
$
|
9,548
|
|
|
$
|
8,234
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Classification in the Consolidated Statements of Operations:
|
|
|
|
|
|
|
|
||||||||
General and administrative expenses
|
$
|
3,019
|
|
|
$
|
2,438
|
|
|
$
|
5,562
|
|
|
$
|
4,619
|
|
Acquisition and transaction expenses
|
2,309
|
|
|
1,436
|
|
|
3,770
|
|
|
3,040
|
|
||||
Total
|
$
|
5,328
|
|
|
$
|
3,874
|
|
|
$
|
9,332
|
|
|
$
|
7,659
|
|
|
June 30, 2019
|
|
December 31, 2018
|
||||
Accrued management fees
|
$
|
1,110
|
|
|
$
|
1,263
|
|
Other payables
|
5,396
|
|
|
3,965
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Non-controlling interest share of net loss
|
$
|
4,559
|
|
|
$
|
3,248
|
|
|
$
|
7,855
|
|
|
$
|
8,013
|
|
|
Three Months Ended June 30, 2019
|
||||||||||||||||||||||
|
Equipment Leasing
|
|
Infrastructure
|
|
|
|
|
||||||||||||||||
|
Aviation Leasing
|
|
Jefferson Terminal
|
|
Railroad
|
|
Ports and Terminals
|
|
Corporate and Other
|
|
Total
|
||||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Equipment leasing revenues
|
$
|
74,981
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
4,219
|
|
|
$
|
79,200
|
|
Infrastructure revenues
|
—
|
|
|
67,562
|
|
|
9,977
|
|
|
2,266
|
|
|
—
|
|
|
79,805
|
|
||||||
Total revenues
|
74,981
|
|
|
67,562
|
|
|
9,977
|
|
|
2,266
|
|
|
4,219
|
|
|
159,005
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Operating expenses
|
2,721
|
|
|
74,393
|
|
|
9,021
|
|
|
4,757
|
|
|
1,871
|
|
|
92,763
|
|
||||||
General and administrative
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,297
|
|
|
4,297
|
|
||||||
Acquisition and transaction expenses
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,308
|
|
|
2,308
|
|
||||||
Management fees and incentive allocation to affiliate
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,710
|
|
|
5,710
|
|
||||||
Depreciation and amortization
|
33,267
|
|
|
5,519
|
|
|
648
|
|
|
1,560
|
|
|
1,606
|
|
|
42,600
|
|
||||||
Interest expense
|
—
|
|
|
4,524
|
|
|
79
|
|
|
348
|
|
|
20,521
|
|
|
25,472
|
|
||||||
Total expenses
|
35,988
|
|
|
84,436
|
|
|
9,748
|
|
|
6,665
|
|
|
36,313
|
|
|
173,150
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Other income (expense)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Equity in (losses) earnings of unconsolidated entities
|
(242
|
)
|
|
92
|
|
|
—
|
|
|
—
|
|
|
(19
|
)
|
|
(169
|
)
|
||||||
Gain on sale of equipment, net
|
22,610
|
|
|
12
|
|
|
8
|
|
|
—
|
|
|
—
|
|
|
22,630
|
|
||||||
Interest income
|
28
|
|
|
33
|
|
|
4
|
|
|
173
|
|
|
2
|
|
|
240
|
|
||||||
Other income
|
—
|
|
|
50
|
|
|
1
|
|
|
4,887
|
|
|
—
|
|
|
4,938
|
|
||||||
Total other income (expense)
|
22,396
|
|
|
187
|
|
|
13
|
|
|
5,060
|
|
|
(17
|
)
|
|
27,639
|
|
||||||
Income (loss) before income taxes
|
61,389
|
|
|
(16,687
|
)
|
|
242
|
|
|
661
|
|
|
(32,111
|
)
|
|
13,494
|
|
||||||
(Benefit from) provision for income taxes
|
(2,369
|
)
|
|
38
|
|
|
29
|
|
|
—
|
|
|
3
|
|
|
(2,299
|
)
|
||||||
Net income (loss)
|
63,758
|
|
|
(16,725
|
)
|
|
213
|
|
|
661
|
|
|
(32,114
|
)
|
|
15,793
|
|
||||||
Less: Net (loss) income attributable to non-controlling interests in consolidated subsidiaries
|
—
|
|
|
(4,558
|
)
|
|
41
|
|
|
(22
|
)
|
|
—
|
|
|
(4,539
|
)
|
||||||
Net income (loss) attributable to shareholders
|
$
|
63,758
|
|
|
$
|
(12,167
|
)
|
|
$
|
172
|
|
|
$
|
683
|
|
|
$
|
(32,114
|
)
|
|
$
|
20,332
|
|
|
Three Months Ended June 30, 2019
|
||||||||||||||||||||||
|
Equipment Leasing
|
|
Infrastructure
|
|
|
|
|
||||||||||||||||
|
Aviation Leasing
|
|
Jefferson Terminal
|
|
Railroad
|
|
Ports and Terminals
|
|
Corporate and Other
|
|
Total
|
||||||||||||
Adjusted EBITDA
|
$
|
103,610
|
|
|
$
|
(2,563
|
)
|
|
$
|
963
|
|
|
$
|
(2,241
|
)
|
|
$
|
(5,639
|
)
|
|
$
|
94,130
|
|
Add: Non-controlling share of Adjusted EBITDA
|
|
|
|
|
|
|
|
|
|
|
2,871
|
|
|||||||||||
Add: Equity in losses of unconsolidated entities
|
|
|
|
|
|
|
|
|
|
|
(169
|
)
|
|||||||||||
Less: Pro-rata share of Adjusted EBITDA from unconsolidated entities
|
|
|
|
|
|
|
|
|
|
|
(24
|
)
|
|||||||||||
Less: Interest expense
|
|
|
|
|
|
|
|
|
|
|
(25,472
|
)
|
|||||||||||
Less: Depreciation and amortization expense
|
|
|
|
|
|
|
|
|
|
|
(51,554
|
)
|
|||||||||||
Less: Incentive allocations
|
|
|
|
|
|
|
|
|
|
|
(2,211
|
)
|
|||||||||||
Less: Asset impairment charges
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|||||||||||
Less: Changes in fair value of non-hedge derivative instruments
|
|
|
|
|
|
|
|
|
|
|
3,470
|
|
|||||||||||
Less: Losses on the modification or extinguishment of debt and capital lease obligations
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|||||||||||
Less: Acquisition and transaction expenses
|
|
|
|
|
|
|
|
|
|
|
(2,308
|
)
|
|||||||||||
Less: Equity-based compensation expense
|
|
|
|
|
|
|
|
|
|
|
(700
|
)
|
|||||||||||
Less: Benefit from income taxes
|
|
|
|
|
|
|
|
|
|
|
2,299
|
|
|||||||||||
Net income attributable to shareholders
|
|
|
|
|
|
|
|
|
|
|
$
|
20,332
|
|
|
Three Months Ended June 30, 2019
|
||||||||||||||||||||||
|
Equipment Leasing
|
|
Infrastructure
|
|
|
|
|
||||||||||||||||
|
Aviation Leasing
|
|
Jefferson Terminal
|
|
Railroad
|
|
Ports and Terminals
|
|
Corporate and Other
|
|
Total
|
||||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Africa
|
$
|
2,208
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,208
|
|
Asia
|
25,410
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,219
|
|
|
29,629
|
|
||||||
Europe
|
35,413
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
35,413
|
|
||||||
North America
|
9,604
|
|
|
67,562
|
|
|
9,977
|
|
|
2,266
|
|
|
—
|
|
|
89,409
|
|
||||||
South America
|
2,346
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,346
|
|
||||||
Total
|
$
|
74,981
|
|
|
$
|
67,562
|
|
|
$
|
9,977
|
|
|
$
|
2,266
|
|
|
$
|
4,219
|
|
|
$
|
159,005
|
|
|
Six Months Ended June 30, 2019
|
||||||||||||||||||||||
|
Equipment Leasing
|
|
Infrastructure
|
|
|
|
|
||||||||||||||||
|
Aviation Leasing
|
|
Jefferson Terminal
|
|
Railroad
|
|
Ports and Terminals
|
|
Corporate and Other
|
|
Total
|
||||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Equipment leasing revenues
|
$
|
145,392
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
6,260
|
|
|
$
|
151,652
|
|
Infrastructure revenues
|
—
|
|
|
103,516
|
|
|
20,484
|
|
|
7,980
|
|
|
—
|
|
|
131,980
|
|
||||||
Total revenues
|
145,392
|
|
|
103,516
|
|
|
20,484
|
|
|
7,980
|
|
|
6,260
|
|
|
283,632
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Operating expenses
|
8,799
|
|
|
113,634
|
|
|
18,287
|
|
|
9,659
|
|
|
4,302
|
|
|
154,681
|
|
||||||
General and administrative
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9,029
|
|
|
9,029
|
|
||||||
Acquisition and transaction expenses
|
13
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,769
|
|
|
3,782
|
|
||||||
Management fees and incentive allocation to affiliate
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9,548
|
|
|
9,548
|
|
||||||
Depreciation and amortization
|
63,272
|
|
|
10,675
|
|
|
1,413
|
|
|
3,553
|
|
|
3,220
|
|
|
82,133
|
|
||||||
Interest expense
|
—
|
|
|
8,448
|
|
|
648
|
|
|
644
|
|
|
37,035
|
|
|
46,775
|
|
||||||
Total expenses
|
72,084
|
|
|
132,757
|
|
|
20,348
|
|
|
13,856
|
|
|
66,903
|
|
|
305,948
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Other income (expense)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Equity in (losses) earnings of unconsolidated entities
|
(443
|
)
|
|
(128
|
)
|
|
—
|
|
|
—
|
|
|
18
|
|
|
(553
|
)
|
||||||
Gain on sale of equipment, net
|
24,328
|
|
|
12
|
|
|
15
|
|
|
—
|
|
|
—
|
|
|
24,355
|
|
||||||
Interest income
|
54
|
|
|
71
|
|
|
4
|
|
|
194
|
|
|
8
|
|
|
331
|
|
||||||
Other (expense) income
|
—
|
|
|
(183
|
)
|
|
—
|
|
|
2,517
|
|
|
—
|
|
|
2,334
|
|
||||||
Total other income (expense)
|
23,939
|
|
|
(228
|
)
|
|
19
|
|
|
2,711
|
|
|
26
|
|
|
26,467
|
|
||||||
Income (loss) before income taxes
|
97,247
|
|
|
(29,469
|
)
|
|
155
|
|
|
(3,165
|
)
|
|
(60,617
|
)
|
|
4,151
|
|
||||||
(Benefit from) provision for income taxes
|
(2,189
|
)
|
|
124
|
|
|
215
|
|
|
—
|
|
|
4
|
|
|
(1,846
|
)
|
||||||
Net income (loss)
|
99,436
|
|
|
(29,593
|
)
|
|
(60
|
)
|
|
(3,165
|
)
|
|
(60,621
|
)
|
|
5,997
|
|
||||||
Less: Net (loss) income attributable to non-controlling interests in consolidated subsidiaries
|
—
|
|
|
(7,854
|
)
|
|
(15
|
)
|
|
(86
|
)
|
|
—
|
|
|
(7,955
|
)
|
||||||
Net income (loss) attributable to shareholders
|
$
|
99,436
|
|
|
$
|
(21,739
|
)
|
|
$
|
(45
|
)
|
|
$
|
(3,079
|
)
|
|
$
|
(60,621
|
)
|
|
$
|
13,952
|
|
|
Six Months Ended June 30, 2019
|
||||||||||||||||||||||
|
Equipment Leasing
|
|
Infrastructure
|
|
|
|
|
||||||||||||||||
|
Aviation Leasing
|
|
Jefferson Terminal
|
|
Railroad
|
|
Ports and Terminals
|
|
Corporate and Other
|
|
Total
|
||||||||||||
Adjusted EBITDA
|
$
|
177,820
|
|
|
$
|
(3,853
|
)
|
|
$
|
2,162
|
|
|
$
|
(1,315
|
)
|
|
$
|
(14,394
|
)
|
|
$
|
160,420
|
|
Add: Non-controlling share of Adjusted EBITDA
|
|
|
|
|
|
|
|
|
|
|
5,174
|
|
|||||||||||
Add: Equity in losses of unconsolidated entities
|
|
|
|
|
|
|
|
|
|
|
(553
|
)
|
|||||||||||
Less: Pro-rata share of Adjusted EBITDA from unconsolidated entities
|
|
|
|
|
|
|
|
|
|
|
94
|
|
|||||||||||
Less: Interest expense
|
|
|
|
|
|
|
|
|
|
|
(46,775
|
)
|
|||||||||||
Less: Depreciation and amortization expense
|
|
|
|
|
|
|
|
|
|
|
(99,421
|
)
|
|||||||||||
Less: Incentive allocations
|
|
|
|
|
|
|
|
|
|
|
(2,373
|
)
|
|||||||||||
Less: Asset impairment charges
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|||||||||||
Less: Changes in fair value of non-hedge derivative instruments
|
|
|
|
|
|
|
|
|
|
|
250
|
|
|||||||||||
Less: Losses on the modification or extinguishment of debt and capital lease obligations
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|||||||||||
Less: Acquisition and transaction expenses
|
|
|
|
|
|
|
|
|
|
|
(3,782
|
)
|
|||||||||||
Less: Equity-based compensation expense
|
|
|
|
|
|
|
|
|
|
|
(928
|
)
|
|||||||||||
Less: Benefit from income taxes
|
|
|
|
|
|
|
|
|
|
|
1,846
|
|
|||||||||||
Net income attributable to shareholders
|
|
|
|
|
|
|
|
|
|
|
$
|
13,952
|
|
|
Six Months Ended June 30, 2019
|
||||||||||||||||||||||
|
Equipment Leasing
|
|
Infrastructure
|
|
|
|
|
||||||||||||||||
|
Aviation Leasing
|
|
Jefferson Terminal
|
|
Railroad
|
|
Ports and Terminals
|
|
Corporate and Other
|
|
Total
|
||||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Africa
|
$
|
5,685
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
5,685
|
|
Asia
|
47,524
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6,260
|
|
|
53,784
|
|
||||||
Europe
|
67,298
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
67,298
|
|
||||||
North America
|
20,430
|
|
|
103,516
|
|
|
20,484
|
|
|
7,980
|
|
|
—
|
|
|
152,410
|
|
||||||
South America
|
4,455
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,455
|
|
||||||
Total
|
$
|
145,392
|
|
|
$
|
103,516
|
|
|
$
|
20,484
|
|
|
$
|
7,980
|
|
|
$
|
6,260
|
|
|
$
|
283,632
|
|
|
Three Months Ended June 30, 2018
|
||||||||||||||||||||||
|
Equipment Leasing
|
|
Infrastructure
|
|
|
|
|
||||||||||||||||
|
Aviation Leasing
|
|
Jefferson Terminal
|
|
Railroad
|
|
Ports and Terminals
|
|
Corporate and Other
|
|
Total
|
||||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Equipment leasing revenues
|
$
|
56,118
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3,212
|
|
|
$
|
59,330
|
|
Infrastructure revenues
|
—
|
|
|
2,550
|
|
|
8,788
|
|
|
1,311
|
|
|
—
|
|
|
12,649
|
|
||||||
Total revenues
|
56,118
|
|
|
2,550
|
|
|
8,788
|
|
|
1,311
|
|
|
3,212
|
|
|
71,979
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Operating expenses
|
1,864
|
|
|
11,253
|
|
|
7,813
|
|
|
2,715
|
|
|
3,948
|
|
|
27,593
|
|
||||||
General and administrative
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,573
|
|
|
4,573
|
|
||||||
Acquisition and transaction expenses
|
66
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,442
|
|
|
1,508
|
|
||||||
Management fees and incentive allocation to affiliate
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,495
|
|
|
4,495
|
|
||||||
Depreciation and amortization
|
24,875
|
|
|
4,937
|
|
|
574
|
|
|
832
|
|
|
1,626
|
|
|
32,844
|
|
||||||
Interest expense
|
—
|
|
|
4,285
|
|
|
141
|
|
|
273
|
|
|
8,158
|
|
|
12,857
|
|
||||||
Total expenses
|
26,805
|
|
|
20,475
|
|
|
8,528
|
|
|
3,820
|
|
|
24,242
|
|
|
83,870
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Other income (expense)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Equity in (losses) earnings of unconsolidated entities
|
(126
|
)
|
|
(235
|
)
|
|
—
|
|
|
—
|
|
|
110
|
|
|
(251
|
)
|
||||||
Gain (loss) on sale of equipment, net
|
5,003
|
|
|
—
|
|
|
(7
|
)
|
|
—
|
|
|
—
|
|
|
4,996
|
|
||||||
Interest income
|
33
|
|
|
36
|
|
|
—
|
|
|
—
|
|
|
5
|
|
|
74
|
|
||||||
Other income
|
—
|
|
|
1,157
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,157
|
|
||||||
Total other income (expense)
|
4,910
|
|
|
958
|
|
|
(7
|
)
|
|
—
|
|
|
115
|
|
|
5,976
|
|
||||||
Income (loss) before income taxes
|
34,223
|
|
|
(16,967
|
)
|
|
253
|
|
|
(2,509
|
)
|
|
(20,915
|
)
|
|
(5,915
|
)
|
||||||
Provision for income taxes
|
523
|
|
|
10
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
534
|
|
||||||
Net income (loss)
|
33,700
|
|
|
(16,977
|
)
|
|
253
|
|
|
(2,510
|
)
|
|
(20,915
|
)
|
|
(6,449
|
)
|
||||||
Less: Net (loss) income attributable to non-controlling interests in consolidated subsidiaries
|
—
|
|
|
(7,309
|
)
|
|
51
|
|
|
(30
|
)
|
|
—
|
|
|
(7,288
|
)
|
||||||
Net income (loss) attributable to shareholders
|
$
|
33,700
|
|
|
$
|
(9,668
|
)
|
|
$
|
202
|
|
|
$
|
(2,480
|
)
|
|
$
|
(20,915
|
)
|
|
$
|
839
|
|
|
Three Months Ended June 30, 2018
|
||||||||||||||||||||||
|
Equipment Leasing
|
|
Infrastructure
|
|
|
|
|
||||||||||||||||
|
Aviation Leasing
|
|
Jefferson Terminal
|
|
Railroad
|
|
Ports and Terminals
|
|
Corporate and Other
|
|
Total
|
||||||||||||
Adjusted EBITDA
|
$
|
64,826
|
|
|
$
|
(3,188
|
)
|
|
$
|
917
|
|
|
$
|
(1,281
|
)
|
|
$
|
(9,057
|
)
|
|
$
|
52,217
|
|
Add: Non-controlling share of Adjusted EBITDA
|
|
|
|
|
|
|
|
|
|
|
2,447
|
|
|||||||||||
Add: Equity in losses of unconsolidated entities
|
|
|
|
|
|
|
|
|
|
|
(251
|
)
|
|||||||||||
Less: Pro-rata share of Adjusted EBITDA from unconsolidated entities
|
|
|
|
|
|
|
|
|
|
|
192
|
|
|||||||||||
Less: Interest expense
|
|
|
|
|
|
|
|
|
|
|
(12,857
|
)
|
|||||||||||
Less: Depreciation and amortization expense
|
|
|
|
|
|
|
|
|
|
|
(38,506
|
)
|
|||||||||||
Less: Incentive allocations
|
|
|
|
|
|
|
|
|
|
|
(573
|
)
|
|||||||||||
Less: Asset impairment charges
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|||||||||||
Less: Changes in fair value of non-hedge derivative instruments
|
|
|
|
|
|
|
|
|
|
|
441
|
|
|||||||||||
Less: Losses on the modification or extinguishment of debt and capital lease obligations
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|||||||||||
Less: Acquisition and transaction expenses
|
|
|
|
|
|
|
|
|
|
|
(1,508
|
)
|
|||||||||||
Less: Equity-based compensation expense
|
|
|
|
|
|
|
|
|
|
|
(229
|
)
|
|||||||||||
Less: Provision for income taxes
|
|
|
|
|
|
|
|
|
|
|
(534
|
)
|
|||||||||||
Net income attributable to shareholders
|
|
|
|
|
|
|
|
|
|
|
$
|
839
|
|
|
Three Months Ended June 30, 2018
|
||||||||||||||||||||||
|
Equipment Leasing
|
|
Infrastructure
|
|
|
|
|
||||||||||||||||
|
Aviation Leasing
|
|
Jefferson Terminal
|
|
Railroad
|
|
Ports and Terminals
|
|
Corporate and Other
|
|
Total
|
||||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Africa
|
$
|
2,020
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,020
|
|
Asia
|
14,083
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,847
|
|
|
16,930
|
|
||||||
Europe
|
32,858
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
32,858
|
|
||||||
North America
|
6,821
|
|
|
2,550
|
|
|
8,788
|
|
|
1,311
|
|
|
365
|
|
|
19,835
|
|
||||||
South America
|
336
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
336
|
|
||||||
Total
|
$
|
56,118
|
|
|
$
|
2,550
|
|
|
$
|
8,788
|
|
|
$
|
1,311
|
|
|
$
|
3,212
|
|
|
$
|
71,979
|
|
|
Six Months Ended June 30, 2018
|
||||||||||||||||||||||
|
Equipment Leasing
|
|
Infrastructure
|
|
|
|
|
||||||||||||||||
|
Aviation Leasing
|
|
Jefferson Terminal
|
|
Railroad
|
|
Ports and Terminals
|
|
Corporate and Other
|
|
Total
|
||||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Equipment leasing revenues
|
$
|
108,853
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
6,261
|
|
|
$
|
115,114
|
|
Infrastructure revenues
|
—
|
|
|
3,803
|
|
|
19,835
|
|
|
2,071
|
|
|
—
|
|
|
25,709
|
|
||||||
Total revenues
|
108,853
|
|
|
3,803
|
|
|
19,835
|
|
|
2,071
|
|
|
6,261
|
|
|
140,823
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Operating expenses
|
5,297
|
|
|
23,212
|
|
|
15,251
|
|
|
5,096
|
|
|
6,316
|
|
|
55,172
|
|
||||||
General and administrative
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8,159
|
|
|
8,159
|
|
||||||
Acquisition and transaction expenses
|
223
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,051
|
|
|
3,274
|
|
||||||
Management fees and incentive allocation to affiliate
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8,234
|
|
|
8,234
|
|
||||||
Depreciation and amortization
|
46,688
|
|
|
9,727
|
|
|
1,147
|
|
|
1,641
|
|
|
3,228
|
|
|
62,431
|
|
||||||
Interest expense
|
—
|
|
|
7,813
|
|
|
486
|
|
|
545
|
|
|
15,884
|
|
|
24,728
|
|
||||||
Total expenses
|
52,208
|
|
|
40,752
|
|
|
16,884
|
|
|
7,282
|
|
|
44,872
|
|
|
161,998
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Other income (expense)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Equity in (losses) earnings of unconsolidated entities
|
(350
|
)
|
|
(87
|
)
|
|
—
|
|
|
—
|
|
|
281
|
|
|
(156
|
)
|
||||||
Gain on sale of equipment, net
|
4,983
|
|
|
—
|
|
|
8
|
|
|
—
|
|
|
—
|
|
|
4,991
|
|
||||||
Interest income
|
106
|
|
|
136
|
|
|
—
|
|
|
—
|
|
|
8
|
|
|
250
|
|
||||||
Other income
|
—
|
|
|
1,337
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,337
|
|
||||||
Total other income
|
4,739
|
|
|
1,386
|
|
|
8
|
|
|
—
|
|
|
289
|
|
|
6,422
|
|
||||||
Income (loss) before income taxes
|
61,384
|
|
|
(35,563
|
)
|
|
2,959
|
|
|
(5,211
|
)
|
|
(38,322
|
)
|
|
(14,753
|
)
|
||||||
Provision for income taxes
|
1,006
|
|
|
21
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
1,029
|
|
||||||
Net income (loss)
|
60,378
|
|
|
(35,584
|
)
|
|
2,959
|
|
|
(5,211
|
)
|
|
(38,324
|
)
|
|
(15,782
|
)
|
||||||
Less: Net (loss) income attributable to non-controlling interests in consolidated subsidiaries
|
(24
|
)
|
|
(16,258
|
)
|
|
257
|
|
|
(24
|
)
|
|
—
|
|
|
(16,049
|
)
|
||||||
Net income (loss) attributable to shareholders
|
$
|
60,402
|
|
|
$
|
(19,326
|
)
|
|
$
|
2,702
|
|
|
$
|
(5,187
|
)
|
|
$
|
(38,324
|
)
|
|
$
|
267
|
|
|
Six Months Ended June 30, 2018
|
||||||||||||||||||||||
|
Equipment Leasing
|
|
Infrastructure
|
|
|
|
|
||||||||||||||||
|
Aviation Leasing
|
|
Jefferson Terminal
|
|
Railroad
|
|
Ports and Terminals
|
|
Corporate and Other
|
|
Total
|
||||||||||||
Adjusted EBITDA
|
$
|
121,036
|
|
|
$
|
(6,739
|
)
|
|
$
|
4,323
|
|
|
$
|
(2,845
|
)
|
|
$
|
(15,438
|
)
|
|
$
|
100,337
|
|
Add: Non-controlling share of Adjusted EBITDA
|
|
|
|
|
|
|
|
|
|
|
5,612
|
|
|||||||||||
Add: Equity in losses of unconsolidated entities
|
|
|
|
|
|
|
|
|
|
|
(156
|
)
|
|||||||||||
Less: Pro-rata share of Adjusted EBITDA from unconsolidated entities
|
|
|
|
|
|
|
|
|
|
|
17
|
|
|||||||||||
Less: Interest expense
|
|
|
|
|
|
|
|
|
|
|
(24,728
|
)
|
|||||||||||
Less: Depreciation and amortization expense
|
|
|
|
|
|
|
|
|
|
|
(75,320
|
)
|
|||||||||||
Less: Incentive allocations
|
|
|
|
|
|
|
|
|
|
|
(573
|
)
|
|||||||||||
Less: Asset impairment charges
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|||||||||||
Less: Changes in fair value of non-hedge derivative instruments
|
|
|
|
|
|
|
|
|
|
|
(182
|
)
|
|||||||||||
Less: Losses on the modification or extinguishment of debt and capital lease obligations
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|||||||||||
Less: Acquisition and transaction expenses
|
|
|
|
|
|
|
|
|
|
|
(3,274
|
)
|
|||||||||||
Less: Equity-based compensation expense
|
|
|
|
|
|
|
|
|
|
|
(437
|
)
|
|||||||||||
Less: Provision for income taxes
|
|
|
|
|
|
|
|
|
|
|
(1,029
|
)
|
|||||||||||
Net income attributable to shareholders
|
|
|
|
|
|
|
|
|
|
|
$
|
267
|
|
|
Six Months Ended June 30, 2018
|
||||||||||||||||||||||
|
Equipment Leasing
|
|
Infrastructure
|
|
|
|
|
||||||||||||||||
|
Aviation Leasing
|
|
Jefferson Terminal
|
|
Railroad
|
|
Ports and Terminals
|
|
Corporate and Other
|
|
Total
|
||||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Africa
|
$
|
3,405
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3,405
|
|
Asia
|
23,292
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,530
|
|
|
28,822
|
|
||||||
Europe
|
67,776
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
67,776
|
|
||||||
North America
|
13,954
|
|
|
3,803
|
|
|
19,835
|
|
|
2,071
|
|
|
731
|
|
|
40,394
|
|
||||||
South America
|
426
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
426
|
|
||||||
Total
|
$
|
108,853
|
|
|
$
|
3,803
|
|
|
$
|
19,835
|
|
|
$
|
2,071
|
|
|
$
|
6,261
|
|
|
$
|
140,823
|
|
|
June 30, 2019
|
||||||||||||||||||||||
|
Equipment Leasing
|
|
Infrastructure
|
|
|
|
|
||||||||||||||||
|
Aviation Leasing
|
|
Jefferson Terminal
|
|
Railroad
|
|
Ports and Terminals
|
|
Corporate and Other
|
|
Total
|
||||||||||||
Total assets
|
$
|
1,503,151
|
|
|
$
|
742,044
|
|
|
$
|
73,444
|
|
|
$
|
490,871
|
|
|
$
|
278,999
|
|
|
$
|
3,088,509
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Debt, net
|
—
|
|
|
258,887
|
|
|
23,075
|
|
|
90,685
|
|
|
1,258,489
|
|
|
1,631,136
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total liabilities
|
250,159
|
|
|
345,324
|
|
|
45,304
|
|
|
116,873
|
|
|
1,292,616
|
|
|
2,050,276
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Non-controlling interests in equity of consolidated subsidiaries
|
—
|
|
|
44,749
|
|
|
3,410
|
|
|
673
|
|
|
524
|
|
|
49,356
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total equity
|
1,252,992
|
|
|
396,720
|
|
|
28,140
|
|
|
373,998
|
|
|
(1,013,617
|
)
|
|
1,038,233
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total liabilities and equity
|
$
|
1,503,151
|
|
|
$
|
742,044
|
|
|
$
|
73,444
|
|
|
$
|
490,871
|
|
|
$
|
278,999
|
|
|
$
|
3,088,509
|
|
|
June 30, 2019
|
||||||||||||||||||||||
|
Equipment Leasing
|
|
Infrastructure
|
|
|
|
|
||||||||||||||||
|
Aviation Leasing
|
|
Jefferson Terminal
|
|
Railroad
|
|
Ports and Terminals
|
|
Corporate and Other
|
|
Total
|
||||||||||||
Property, plant and equipment and leasing equipment, net
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Africa
|
$
|
50,182
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
50,182
|
|
Asia
|
428,960
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
33,898
|
|
|
462,858
|
|
||||||
Europe
|
611,978
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
611,978
|
|
||||||
North America
|
192,360
|
|
|
468,800
|
|
|
53,360
|
|
|
371,755
|
|
|
120,662
|
|
|
1,206,937
|
|
||||||
South America
|
32,906
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
32,906
|
|
||||||
Total
|
$
|
1,316,386
|
|
|
$
|
468,800
|
|
|
$
|
53,360
|
|
|
$
|
371,755
|
|
|
$
|
154,560
|
|
|
$
|
2,364,861
|
|
|
December 31, 2018
|
||||||||||||||||||||||
|
Equipment Leasing
|
|
Infrastructure
|
|
|
|
|
||||||||||||||||
|
Aviation Leasing
|
|
Jefferson Terminal
|
|
Railroad
|
|
Ports and Terminals
|
|
Corporate and Other
|
|
Total
|
||||||||||||
Total assets
|
$
|
1,367,074
|
|
|
$
|
670,682
|
|
|
$
|
64,286
|
|
|
$
|
277,160
|
|
|
$
|
259,576
|
|
|
$
|
2,638,778
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Debt, net
|
—
|
|
|
234,862
|
|
|
22,239
|
|
|
—
|
|
|
980,246
|
|
|
1,237,347
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total liabilities
|
234,449
|
|
|
288,256
|
|
|
37,207
|
|
|
16,615
|
|
|
1,008,469
|
|
|
1,584,996
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Non-controlling interests in equity of consolidated subsidiaries
|
—
|
|
|
52,058
|
|
|
3,258
|
|
|
544
|
|
|
523
|
|
|
56,383
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total equity
|
1,132,625
|
|
|
382,426
|
|
|
27,079
|
|
|
260,545
|
|
|
(748,893
|
)
|
|
1,053,782
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total liabilities and equity
|
$
|
1,367,074
|
|
|
$
|
670,682
|
|
|
$
|
64,286
|
|
|
$
|
277,160
|
|
|
$
|
259,576
|
|
|
$
|
2,638,778
|
|
|
December 31, 2018
|
||||||||||||||||||||||
|
Equipment Leasing
|
|
Infrastructure
|
|
|
|
|
||||||||||||||||
|
Aviation Leasing
|
|
Jefferson Terminal
|
|
Railroad
|
|
Ports and Terminals
|
|
Corporate and Other
|
|
Total
|
||||||||||||
Property, plant and equipment and leasing equipment, net
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Africa
|
$
|
47,353
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
47,353
|
|
Asia
|
383,648
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
34,667
|
|
|
418,315
|
|
||||||
Europe
|
592,670
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
121,950
|
|
|
714,620
|
|
||||||
North America
|
177,962
|
|
|
433,404
|
|
|
51,157
|
|
|
263,747
|
|
|
—
|
|
|
926,270
|
|
||||||
South America
|
34,505
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
34,505
|
|
||||||
Total
|
$
|
1,236,138
|
|
|
$
|
433,404
|
|
|
$
|
51,157
|
|
|
$
|
263,747
|
|
|
$
|
156,617
|
|
|
$
|
2,141,063
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
(in thousands, except share and per share data)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Net income attributable to shareholders
|
$
|
20,332
|
|
|
$
|
839
|
|
|
$
|
13,952
|
|
|
$
|
267
|
|
Weighted Average Shares Outstanding - Basic (1)
|
85,987,769
|
|
|
83,160,037
|
|
|
85,987,115
|
|
|
82,351,736
|
|
||||
Weighted Average Shares Outstanding - Diluted (1)
|
85,989,029
|
|
|
83,160,047
|
|
|
85,987,115
|
|
|
82,351,858
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Basic EPS
|
$
|
0.24
|
|
|
$
|
0.01
|
|
|
$
|
0.16
|
|
|
$
|
—
|
|
Diluted EPS
|
$
|
0.24
|
|
|
$
|
0.01
|
|
|
$
|
0.16
|
|
|
$
|
—
|
|
|
Three Months Ended June 30,
|
|
Change
|
|
Six Months Ended
June 30, |
|
Change
|
||||||||||||||||
(in thousands)
|
2019
|
|
2018
|
|
|
2019
|
|
2018
|
|
||||||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Equipment leasing revenues
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Lease income
|
$
|
51,888
|
|
|
$
|
37,241
|
|
|
$
|
14,647
|
|
|
$
|
101,124
|
|
|
$
|
72,740
|
|
|
$
|
28,384
|
|
Maintenance revenue
|
25,369
|
|
|
19,940
|
|
|
5,429
|
|
|
47,146
|
|
|
39,425
|
|
|
7,721
|
|
||||||
Finance lease income
|
881
|
|
|
612
|
|
|
269
|
|
|
1,707
|
|
|
979
|
|
|
728
|
|
||||||
Other revenue
|
1,062
|
|
|
1,537
|
|
|
(475
|
)
|
|
1,675
|
|
|
1,970
|
|
|
(295
|
)
|
||||||
Total equipment leasing revenues
|
79,200
|
|
|
59,330
|
|
|
19,870
|
|
|
151,652
|
|
|
115,114
|
|
|
36,538
|
|
||||||
Infrastructure revenues
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Lease income
|
1,086
|
|
|
417
|
|
|
669
|
|
|
1,749
|
|
|
799
|
|
|
950
|
|
||||||
Rail revenues
|
9,977
|
|
|
8,788
|
|
|
1,189
|
|
|
20,484
|
|
|
19,835
|
|
|
649
|
|
||||||
Terminal services revenues
|
8,565
|
|
|
2,550
|
|
|
6,015
|
|
|
15,250
|
|
|
3,803
|
|
|
11,447
|
|
||||||
Crude marketing revenues
|
59,204
|
|
|
—
|
|
|
59,204
|
|
|
89,983
|
|
|
—
|
|
|
89,983
|
|
||||||
Other revenue
|
973
|
|
|
894
|
|
|
79
|
|
|
4,514
|
|
|
1,272
|
|
|
3,242
|
|
||||||
Total infrastructure revenues
|
79,805
|
|
|
12,649
|
|
|
67,156
|
|
|
131,980
|
|
|
25,709
|
|
|
106,271
|
|
||||||
Total revenues
|
159,005
|
|
|
71,979
|
|
|
87,026
|
|
|
283,632
|
|
|
140,823
|
|
|
142,809
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Operating expenses
|
92,763
|
|
|
27,593
|
|
|
65,170
|
|
|
154,681
|
|
|
55,172
|
|
|
99,509
|
|
||||||
General and administrative
|
4,297
|
|
|
4,573
|
|
|
(276
|
)
|
|
9,029
|
|
|
8,159
|
|
|
870
|
|
||||||
Acquisition and transaction expenses
|
2,308
|
|
|
1,508
|
|
|
800
|
|
|
3,782
|
|
|
3,274
|
|
|
508
|
|
||||||
Management fees and incentive allocation to affiliate
|
5,710
|
|
|
4,495
|
|
|
1,215
|
|
|
9,548
|
|
|
8,234
|
|
|
1,314
|
|
||||||
Depreciation and amortization
|
42,600
|
|
|
32,844
|
|
|
9,756
|
|
|
82,133
|
|
|
62,431
|
|
|
19,702
|
|
||||||
Interest expense
|
25,472
|
|
|
12,857
|
|
|
12,615
|
|
|
46,775
|
|
|
24,728
|
|
|
22,047
|
|
||||||
Total expenses
|
173,150
|
|
|
83,870
|
|
|
89,280
|
|
|
305,948
|
|
|
161,998
|
|
|
143,950
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Other income (expense)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Equity in losses of unconsolidated entities
|
(169
|
)
|
|
(251
|
)
|
|
82
|
|
|
(553
|
)
|
|
(156
|
)
|
|
(397
|
)
|
||||||
Gain on sale of equipment, net
|
22,630
|
|
|
4,996
|
|
|
17,634
|
|
|
24,355
|
|
|
4,991
|
|
|
19,364
|
|
||||||
Interest income
|
240
|
|
|
74
|
|
|
166
|
|
|
331
|
|
|
250
|
|
|
81
|
|
||||||
Other income
|
4,938
|
|
|
1,157
|
|
|
3,781
|
|
|
2,334
|
|
|
1,337
|
|
|
997
|
|
||||||
Total other income
|
27,639
|
|
|
5,976
|
|
|
21,663
|
|
|
26,467
|
|
|
6,422
|
|
|
20,045
|
|
||||||
Income (loss) before income taxes
|
13,494
|
|
|
(5,915
|
)
|
|
19,409
|
|
|
4,151
|
|
|
(14,753
|
)
|
|
18,904
|
|
||||||
(Benefit from) provision for income taxes
|
(2,299
|
)
|
|
534
|
|
|
(2,833
|
)
|
|
(1,846
|
)
|
|
1,029
|
|
|
(2,875
|
)
|
||||||
Net income (loss)
|
15,793
|
|
|
(6,449
|
)
|
|
22,242
|
|
|
5,997
|
|
|
(15,782
|
)
|
|
21,779
|
|
||||||
Less: Net loss attributable to non-controlling interest in consolidated subsidiaries
|
(4,539
|
)
|
|
(7,288
|
)
|
|
2,749
|
|
|
(7,955
|
)
|
|
(16,049
|
)
|
|
8,094
|
|
||||||
Net income attributable to shareholders
|
$
|
20,332
|
|
|
$
|
839
|
|
|
$
|
19,493
|
|
|
$
|
13,952
|
|
|
$
|
267
|
|
|
$
|
13,685
|
|
|
Three Months Ended June 30,
|
|
Change
|
|
Six Months Ended
June 30, |
|
Change
|
||||||||||||||||
(in thousands)
|
2019
|
|
2018
|
|
|
2019
|
|
2018
|
|
||||||||||||||
Net income attributable to shareholders
|
$
|
20,332
|
|
|
$
|
839
|
|
|
$
|
19,493
|
|
|
$
|
13,952
|
|
|
$
|
267
|
|
|
$
|
13,685
|
|
Add: (Benefit from) provision for income taxes
|
(2,299
|
)
|
|
534
|
|
|
(2,833
|
)
|
|
(1,846
|
)
|
|
1,029
|
|
|
(2,875
|
)
|
||||||
Add: Equity-based compensation expense
|
700
|
|
|
229
|
|
|
471
|
|
|
928
|
|
|
437
|
|
|
491
|
|
||||||
Add: Acquisition and transaction expenses
|
2,308
|
|
|
1,508
|
|
|
800
|
|
|
3,782
|
|
|
3,274
|
|
|
508
|
|
||||||
Add: Losses on the modification or extinguishment of debt and capital lease obligations
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Add: Changes in fair value of non-hedge derivative instruments
|
(3,470
|
)
|
|
(441
|
)
|
|
(3,029
|
)
|
|
(250
|
)
|
|
182
|
|
|
(432
|
)
|
||||||
Add: Asset impairment charges
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Add: Incentive allocations
|
2,211
|
|
|
573
|
|
|
1,638
|
|
|
2,373
|
|
|
573
|
|
|
1,800
|
|
||||||
Add: Depreciation and amortization expense (1)
|
51,554
|
|
|
38,506
|
|
|
13,048
|
|
|
99,421
|
|
|
75,320
|
|
|
24,101
|
|
||||||
Add: Interest expense
|
25,472
|
|
|
12,857
|
|
|
12,615
|
|
|
46,775
|
|
|
24,728
|
|
|
22,047
|
|
||||||
Add: Pro-rata share of Adjusted EBITDA from unconsolidated entities (2)
|
24
|
|
|
(192
|
)
|
|
216
|
|
|
(94
|
)
|
|
(17
|
)
|
|
(77
|
)
|
||||||
Less: Equity in losses of unconsolidated entities
|
169
|
|
|
251
|
|
|
(82
|
)
|
|
553
|
|
|
156
|
|
|
397
|
|
||||||
Less: Non-controlling share of Adjusted EBITDA (3)
|
(2,871
|
)
|
|
(2,447
|
)
|
|
(424
|
)
|
|
(5,174
|
)
|
|
(5,612
|
)
|
|
438
|
|
||||||
Adjusted EBITDA (non-GAAP)
|
$
|
94,130
|
|
|
$
|
52,217
|
|
|
$
|
41,913
|
|
|
$
|
160,420
|
|
|
$
|
100,337
|
|
|
$
|
60,083
|
|
•
|
cost of sales of $60.1 million primarily due to costs associated with crude marketing at Jefferson Terminal;
|
•
|
compensation and benefits of $2.4 million primarily due to increased headcount and stock compensation in the Jefferson Terminal, Ports and Terminals and Railroad segments; and
|
•
|
facility operations of $1.2 million primarily due to higher equipment shipping and storage costs in the Aviation Leasing and Jefferson Terminal segments and increased activity in the Ports and Terminals segment.
|
•
|
cost of sales of $89.0 million primarily due to costs associated with crude marketing at Jefferson Terminal;
|
•
|
compensation and benefits of $3.8 million primarily due to increased headcount and stock compensation in the Jefferson Terminal, Ports and Terminals and Railroad segments; and
|
•
|
facility operations of $2.5 million primarily due to higher equipment shipping and storage costs in the Aviation Leasing and Jefferson Terminal segments and increased activity in the Ports and Terminals segment.
|
Aviation Assets
|
Widebody
|
|
Narrowbody
|
|
Total
|
|||
Aircraft
|
|
|
|
|
|
|||
Assets at January 1, 2019
|
14
|
|
|
56
|
|
|
70
|
|
Purchases
|
4
|
|
|
6
|
|
|
10
|
|
Sales
|
—
|
|
|
(3
|
)
|
|
(3
|
)
|
Transfers
|
(3
|
)
|
|
(4
|
)
|
|
(7
|
)
|
Assets at June 30, 2019
|
15
|
|
|
55
|
|
|
70
|
|
|
|
|
|
|
|
|||
Engines
|
|
|
|
|
|
|||
Assets at January 1, 2019
|
78
|
|
|
64
|
|
|
142
|
|
Purchases
|
13
|
|
|
5
|
|
|
18
|
|
Sales
|
(6
|
)
|
|
(10
|
)
|
|
(16
|
)
|
Transfers
|
9
|
|
|
8
|
|
|
17
|
|
Assets at June 30, 2019
|
94
|
|
|
67
|
|
|
161
|
|
|
Three Months Ended June 30,
|
|
Change
|
|
Six Months Ended
June 30, |
|
Change
|
||||||||||||||||
(in thousands)
|
2019
|
|
2018
|
|
|
2019
|
|
2018
|
|
||||||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Equipment leasing revenues
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Lease income
|
$
|
48,731
|
|
|
$
|
35,373
|
|
|
$
|
13,358
|
|
|
$
|
96,034
|
|
|
$
|
68,623
|
|
|
$
|
27,411
|
|
Maintenance revenue
|
25,369
|
|
|
19,940
|
|
|
5,429
|
|
|
47,146
|
|
|
39,425
|
|
|
7,721
|
|
||||||
Finance lease income
|
881
|
|
|
247
|
|
|
634
|
|
|
1,707
|
|
|
247
|
|
|
1,460
|
|
||||||
Other revenue
|
—
|
|
|
558
|
|
|
(558
|
)
|
|
505
|
|
|
558
|
|
|
(53
|
)
|
||||||
Total revenues
|
74,981
|
|
|
56,118
|
|
|
18,863
|
|
|
145,392
|
|
|
108,853
|
|
|
36,539
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Operating expenses
|
2,721
|
|
|
1,864
|
|
|
857
|
|
|
8,799
|
|
|
5,297
|
|
|
3,502
|
|
||||||
Acquisition and transaction expenses
|
—
|
|
|
66
|
|
|
(66
|
)
|
|
13
|
|
|
223
|
|
|
(210
|
)
|
||||||
Depreciation and amortization
|
33,267
|
|
|
24,875
|
|
|
8,392
|
|
|
63,272
|
|
|
46,688
|
|
|
16,584
|
|
||||||
Total expenses
|
35,988
|
|
|
26,805
|
|
|
9,183
|
|
|
72,084
|
|
|
52,208
|
|
|
19,876
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Other (expense) income
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Equity in losses of unconsolidated entities
|
(242
|
)
|
|
(126
|
)
|
|
(116
|
)
|
|
(443
|
)
|
|
(350
|
)
|
|
(93
|
)
|
||||||
Gain on sale of equipment, net
|
22,610
|
|
|
5,003
|
|
|
17,607
|
|
|
24,328
|
|
|
4,983
|
|
|
19,345
|
|
||||||
Interest income
|
28
|
|
|
33
|
|
|
(5
|
)
|
|
54
|
|
|
106
|
|
|
(52
|
)
|
||||||
Total other income
|
22,396
|
|
|
4,910
|
|
|
17,486
|
|
|
23,939
|
|
|
4,739
|
|
|
19,200
|
|
||||||
Income before income taxes
|
61,389
|
|
|
34,223
|
|
|
27,166
|
|
|
97,247
|
|
|
61,384
|
|
|
35,863
|
|
||||||
(Benefit from) provision for income taxes
|
(2,369
|
)
|
|
523
|
|
|
(2,892
|
)
|
|
(2,189
|
)
|
|
1,006
|
|
|
(3,195
|
)
|
||||||
Net income
|
63,758
|
|
|
33,700
|
|
|
30,058
|
|
|
99,436
|
|
|
60,378
|
|
|
39,058
|
|
||||||
Less: Net loss attributable to non-controlling interest in consolidated subsidiaries
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(24
|
)
|
|
24
|
|
||||||
Net income attributable to shareholders
|
$
|
63,758
|
|
|
$
|
33,700
|
|
|
$
|
30,058
|
|
|
$
|
99,436
|
|
|
$
|
60,402
|
|
|
$
|
39,034
|
|
|
Three Months Ended June 30,
|
|
Change
|
|
Six Months Ended
June 30, |
|
Change
|
||||||||||||||||
(in thousands)
|
2019
|
|
2018
|
|
|
2019
|
|
2018
|
|
||||||||||||||
Net income attributable to shareholders
|
$
|
63,758
|
|
|
$
|
33,700
|
|
|
$
|
30,058
|
|
|
$
|
99,436
|
|
|
$
|
60,402
|
|
|
$
|
39,034
|
|
Add: (Benefit from) provision for income taxes
|
(2,369
|
)
|
|
523
|
|
|
(2,892
|
)
|
|
(2,189
|
)
|
|
1,006
|
|
|
(3,195
|
)
|
||||||
Add: Equity-based compensation expense
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Add: Acquisition and transaction expenses
|
—
|
|
|
66
|
|
|
(66
|
)
|
|
13
|
|
|
223
|
|
|
(210
|
)
|
||||||
Add: Losses on the modification or extinguishment of debt and capital lease obligations
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Add: Changes in fair value of non-hedge derivative instruments
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Add: Asset impairment charges
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Add: Incentive allocations
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Add: Depreciation and amortization expense (1)
|
42,221
|
|
|
30,537
|
|
|
11,684
|
|
|
80,560
|
|
|
59,577
|
|
|
20,983
|
|
||||||
Add: Interest expense
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Add: Pro-rata share of Adjusted EBITDA from unconsolidated entities (2)
|
(242
|
)
|
|
(126
|
)
|
|
(116
|
)
|
|
(443
|
)
|
|
(350
|
)
|
|
(93
|
)
|
||||||
Less: Equity in losses of unconsolidated entities
|
242
|
|
|
126
|
|
|
116
|
|
|
443
|
|
|
350
|
|
|
93
|
|
||||||
Less: Non-controlling share of Adjusted EBITDA (3)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(172
|
)
|
|
172
|
|
||||||
Adjusted EBITDA (non-GAAP)
|
$
|
103,610
|
|
|
$
|
64,826
|
|
|
$
|
38,784
|
|
|
$
|
177,820
|
|
|
$
|
121,036
|
|
|
$
|
56,784
|
|
•
|
Lease income increased $13.4 million mainly due to an increase in (i) aircraft lease income of $9.6 million primarily driven by the addition of 23 aircraft on lease and (ii) engine lease income of $3.7 million primarily driven by an additional 17 revenue generating engines.
|
•
|
Maintenance revenue increased $5.4 million due to an increase in the number of aircraft and engines on lease.
|
•
|
Finance lease income increased $0.6 million due to income earned from aircraft classified as a finance lease.
|
•
|
Lease income increased $27.4 million mainly due to an increase in (i) aircraft lease income of $19.4 million primarily driven by the addition of 24 aircraft on lease and (ii) engine lease income of $8.0 million primarily driven by an additional 23 revenue generating engines.
|
•
|
Maintenance revenue increased $7.7 million due to an increase in the number of aircraft and engines on lease.
|
•
|
Finance lease income increased $1.5 million due to income earned from aircraft classified as a finance lease.
|
•
|
Depreciation and amortization expense increased $8.4 million driven by additional aircraft and engines owned and on lease.
|
•
|
Operating expenses increased $0.9 million primarily as a result of an increase in shipping and storage fees of $0.6 million due to the positioning of our assets for lease and other operating expenses of $0.3 million.
|
•
|
Depreciation and amortization expense increased $16.6 million driven by additional aircraft and engines owned and on lease.
|
•
|
Operating expenses increased $3.5 million primarily as a result of an increase in (i) bad debt expense of $1.5 million relating to an engine loss receivable deemed uncollectible due to bankruptcy, (ii) shipping and storage fees of $1.3 million due to the positioning of our assets for lease and (iii) other operating expenses of $1.0 million, partially offset by (iv) a decrease in professional fees of $0.3 million.
|
|
Three Months Ended June 30,
|
|
Change
|
|
Six Months Ended
June 30, |
|
Change
|
||||||||||||||||
(in thousands)
|
2019
|
|
2018
|
|
|
2019
|
|
2018
|
|
||||||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Infrastructure revenues
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Lease income
|
$
|
821
|
|
|
$
|
—
|
|
|
$
|
821
|
|
|
$
|
1,129
|
|
|
$
|
—
|
|
|
$
|
1,129
|
|
Terminal services revenues
|
7,537
|
|
|
2,550
|
|
|
4,987
|
|
|
12,404
|
|
|
3,803
|
|
|
8,601
|
|
||||||
Crude marketing revenues
|
59,204
|
|
|
—
|
|
|
59,204
|
|
|
89,983
|
|
|
—
|
|
|
89,983
|
|
||||||
Total revenues
|
67,562
|
|
|
2,550
|
|
|
65,012
|
|
|
103,516
|
|
|
3,803
|
|
|
99,713
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Operating expenses
|
74,393
|
|
|
11,253
|
|
|
63,140
|
|
|
113,634
|
|
|
23,212
|
|
|
90,422
|
|
||||||
Depreciation and amortization
|
5,519
|
|
|
4,937
|
|
|
582
|
|
|
10,675
|
|
|
9,727
|
|
|
948
|
|
||||||
Interest expense
|
4,524
|
|
|
4,285
|
|
|
239
|
|
|
8,448
|
|
|
7,813
|
|
|
635
|
|
||||||
Total expenses
|
84,436
|
|
|
20,475
|
|
|
63,961
|
|
|
132,757
|
|
|
40,752
|
|
|
92,005
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Other income
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Equity in earnings (losses) of unconsolidated entities
|
92
|
|
|
(235
|
)
|
|
327
|
|
|
(128
|
)
|
|
(87
|
)
|
|
(41
|
)
|
||||||
Gain on sale of equipment, net
|
12
|
|
|
—
|
|
|
12
|
|
|
12
|
|
|
—
|
|
|
12
|
|
||||||
Interest income
|
33
|
|
|
36
|
|
|
(3
|
)
|
|
71
|
|
|
136
|
|
|
(65
|
)
|
||||||
Other income (expense)
|
50
|
|
|
1,157
|
|
|
(1,107
|
)
|
|
(183
|
)
|
|
1,337
|
|
|
(1,520
|
)
|
||||||
Total other income (expense)
|
187
|
|
|
958
|
|
|
(771
|
)
|
|
(228
|
)
|
|
1,386
|
|
|
(1,614
|
)
|
||||||
Loss before income taxes
|
(16,687
|
)
|
|
(16,967
|
)
|
|
280
|
|
|
(29,469
|
)
|
|
(35,563
|
)
|
|
6,094
|
|
||||||
Provision for income taxes
|
38
|
|
|
10
|
|
|
28
|
|
|
124
|
|
|
21
|
|
|
103
|
|
||||||
Net loss
|
(16,725
|
)
|
|
(16,977
|
)
|
|
252
|
|
|
(29,593
|
)
|
|
(35,584
|
)
|
|
5,991
|
|
||||||
Less: Net loss attributable to non-controlling interest in consolidated subsidiaries
|
(4,558
|
)
|
|
(7,309
|
)
|
|
2,751
|
|
|
(7,854
|
)
|
|
(16,258
|
)
|
|
8,404
|
|
||||||
Net loss attributable to shareholders
|
$
|
(12,167
|
)
|
|
$
|
(9,668
|
)
|
|
$
|
(2,499
|
)
|
|
$
|
(21,739
|
)
|
|
$
|
(19,326
|
)
|
|
$
|
(2,413
|
)
|
|
Three Months Ended June 30,
|
|
Change
|
|
Six Months Ended
June 30, |
|
Change
|
||||||||||||||||
(in thousands)
|
2019
|
|
2018
|
|
|
2019
|
|
2018
|
|
||||||||||||||
Net loss attributable to shareholders
|
$
|
(12,167
|
)
|
|
$
|
(9,668
|
)
|
|
$
|
(2,499
|
)
|
|
$
|
(21,739
|
)
|
|
$
|
(19,326
|
)
|
|
$
|
(2,413
|
)
|
Add: Provision for income taxes
|
38
|
|
|
10
|
|
|
28
|
|
|
124
|
|
|
21
|
|
|
103
|
|
||||||
Add: Equity-based compensation expense
|
456
|
|
|
90
|
|
|
366
|
|
|
546
|
|
|
180
|
|
|
366
|
|
||||||
Add: Acquisition and transaction expenses
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Add: Losses on the modification or extinguishment of debt and capital lease obligations
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Add: Changes in fair value of non-hedge derivative instruments
|
1,417
|
|
|
(441
|
)
|
|
1,858
|
|
|
2,267
|
|
|
182
|
|
|
2,085
|
|
||||||
Add: Asset impairment charges
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Add: Incentive allocations
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Add: Depreciation and amortization expense
|
5,519
|
|
|
4,937
|
|
|
582
|
|
|
10,675
|
|
|
9,727
|
|
|
948
|
|
||||||
Add: Interest expense
|
4,524
|
|
|
4,285
|
|
|
239
|
|
|
8,448
|
|
|
7,813
|
|
|
635
|
|
||||||
Add: Pro-rata share of Adjusted EBITDA from unconsolidated entities (1)
|
285
|
|
|
(235
|
)
|
|
520
|
|
|
331
|
|
|
(87
|
)
|
|
418
|
|
||||||
Less: Equity in (earnings) losses of unconsolidated entities
|
(92
|
)
|
|
235
|
|
|
(327
|
)
|
|
128
|
|
|
87
|
|
|
41
|
|
||||||
Less: Non-controlling share of Adjusted EBITDA (2)
|
(2,543
|
)
|
|
(2,401
|
)
|
|
(142
|
)
|
|
(4,633
|
)
|
|
(5,336
|
)
|
|
703
|
|
||||||
Adjusted EBITDA (non-GAAP)
|
$
|
(2,563
|
)
|
|
$
|
(3,188
|
)
|
|
$
|
625
|
|
|
$
|
(3,853
|
)
|
|
$
|
(6,739
|
)
|
|
$
|
2,886
|
|
|
Three Months Ended June 30,
|
|
Change
|
|
Six Months Ended
June 30, |
|
Change
|
||||||||||||||||
(in thousands)
|
2019
|
|
2018
|
|
|
2019
|
|
2018
|
|
||||||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Infrastructure revenues
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Rail revenues
|
$
|
9,977
|
|
|
$
|
8,788
|
|
|
$
|
1,189
|
|
|
$
|
20,484
|
|
|
$
|
19,835
|
|
|
$
|
649
|
|
Total revenues
|
9,977
|
|
|
8,788
|
|
|
1,189
|
|
|
20,484
|
|
|
19,835
|
|
|
649
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Operating expenses
|
9,021
|
|
|
7,813
|
|
|
1,208
|
|
|
18,287
|
|
|
15,251
|
|
|
3,036
|
|
||||||
Depreciation and amortization
|
648
|
|
|
574
|
|
|
74
|
|
|
1,413
|
|
|
1,147
|
|
|
266
|
|
||||||
Interest expense
|
79
|
|
|
141
|
|
|
(62
|
)
|
|
648
|
|
|
486
|
|
|
162
|
|
||||||
Total expenses
|
9,748
|
|
|
8,528
|
|
|
1,220
|
|
|
20,348
|
|
|
16,884
|
|
|
3,464
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Other income (expense)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Gain (loss) on sale of equipment, net
|
8
|
|
|
(7
|
)
|
|
15
|
|
|
15
|
|
|
8
|
|
|
7
|
|
||||||
Interest income
|
4
|
|
|
—
|
|
|
4
|
|
|
4
|
|
|
—
|
|
|
4
|
|
||||||
Other income
|
1
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Total other income (expense)
|
13
|
|
|
(7
|
)
|
|
20
|
|
|
19
|
|
|
8
|
|
|
11
|
|
||||||
Income before income taxes
|
242
|
|
|
253
|
|
|
(11
|
)
|
|
155
|
|
|
2,959
|
|
|
(2,804
|
)
|
||||||
Provision for income taxes
|
29
|
|
|
—
|
|
|
29
|
|
|
215
|
|
|
—
|
|
|
215
|
|
||||||
Net income
|
213
|
|
|
253
|
|
|
(40
|
)
|
|
(60
|
)
|
|
2,959
|
|
|
(3,019
|
)
|
||||||
Less: Net income (loss) attributable to non-controlling interest in consolidated subsidiaries
|
41
|
|
|
51
|
|
|
(10
|
)
|
|
(15
|
)
|
|
257
|
|
|
(272
|
)
|
||||||
Net income (loss) attributable to shareholders
|
$
|
172
|
|
|
$
|
202
|
|
|
$
|
(30
|
)
|
|
$
|
(45
|
)
|
|
$
|
2,702
|
|
|
$
|
(2,747
|
)
|
|
Three Months Ended June 30,
|
|
Change
|
|
Six Months Ended
June 30, |
|
Change
|
||||||||||||||||
(in thousands)
|
2019
|
|
2018
|
|
|
2019
|
|
2018
|
|
||||||||||||||
Net income (loss) attributable to shareholders
|
$
|
172
|
|
|
$
|
202
|
|
|
$
|
(30
|
)
|
|
$
|
(45
|
)
|
|
$
|
2,702
|
|
|
$
|
(2,747
|
)
|
Add: Provision for income taxes
|
29
|
|
|
—
|
|
|
29
|
|
|
215
|
|
|
—
|
|
|
215
|
|
||||||
Add: Equity-based compensation expense
|
121
|
|
|
46
|
|
|
75
|
|
|
167
|
|
|
92
|
|
|
75
|
|
||||||
Add: Acquisition and transaction expenses
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Add: Losses on the modification or extinguishment of debt and capital lease obligations
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Add: Changes in fair value of non-hedge derivative instruments
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Add: Asset impairment charges
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Add: Incentive allocations
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Add: Depreciation and amortization expense
|
648
|
|
|
574
|
|
|
74
|
|
|
1,413
|
|
|
1,147
|
|
|
266
|
|
||||||
Add: Interest expense
|
79
|
|
|
141
|
|
|
(62
|
)
|
|
648
|
|
|
486
|
|
|
162
|
|
||||||
Add: Pro-rata share of Adjusted EBITDA from unconsolidated entities
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Less: Equity in earnings of unconsolidated entities
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Less: Non-controlling share of Adjusted EBITDA (1)
|
(86
|
)
|
|
(46
|
)
|
|
(40
|
)
|
|
(236
|
)
|
|
(104
|
)
|
|
(132
|
)
|
||||||
Adjusted EBITDA (non-GAAP)
|
$
|
963
|
|
|
$
|
917
|
|
|
$
|
46
|
|
|
$
|
2,162
|
|
|
$
|
4,323
|
|
|
$
|
(2,161
|
)
|
|
Three Months Ended June 30,
|
|
Change
|
|
Six Months Ended
June 30, |
|
Change
|
||||||||||||||||
(in thousands)
|
2019
|
|
2018
|
|
|
2019
|
|
2018
|
|
||||||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Infrastructure revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Lease income
|
$
|
265
|
|
|
$
|
417
|
|
|
$
|
(152
|
)
|
|
$
|
620
|
|
|
$
|
799
|
|
|
$
|
(179
|
)
|
Terminal services revenues
|
1,028
|
|
|
—
|
|
|
1,028
|
|
|
2,846
|
|
|
—
|
|
|
2,846
|
|
||||||
Other revenue
|
973
|
|
|
894
|
|
|
79
|
|
|
4,514
|
|
|
1,272
|
|
|
3,242
|
|
||||||
Total revenues
|
2,266
|
|
|
1,311
|
|
|
955
|
|
|
7,980
|
|
|
2,071
|
|
|
5,909
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Operating expenses
|
4,757
|
|
|
2,715
|
|
|
2,042
|
|
|
9,659
|
|
|
5,096
|
|
|
4,563
|
|
||||||
Depreciation and amortization
|
1,560
|
|
|
832
|
|
|
728
|
|
|
3,553
|
|
|
1,641
|
|
|
1,912
|
|
||||||
Interest expense
|
348
|
|
|
273
|
|
|
75
|
|
|
644
|
|
|
545
|
|
|
99
|
|
||||||
Total expenses
|
6,665
|
|
|
3,820
|
|
|
2,845
|
|
|
13,856
|
|
|
7,282
|
|
|
6,574
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Other income (expense)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest income
|
173
|
|
|
—
|
|
|
173
|
|
|
194
|
|
|
—
|
|
|
194
|
|
||||||
Other income
|
4,887
|
|
|
—
|
|
|
4,887
|
|
|
2,517
|
|
|
—
|
|
|
2,517
|
|
||||||
Total other income
|
5,060
|
|
|
—
|
|
|
5,060
|
|
|
2,711
|
|
|
—
|
|
|
2,711
|
|
||||||
Income (loss) before income taxes
|
661
|
|
|
(2,509
|
)
|
|
3,170
|
|
|
(3,165
|
)
|
|
(5,211
|
)
|
|
2,046
|
|
||||||
Provision for income taxes
|
—
|
|
|
1
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Net income (loss)
|
661
|
|
|
(2,510
|
)
|
|
3,171
|
|
|
(3,165
|
)
|
|
(5,211
|
)
|
|
2,046
|
|
||||||
Less: Net loss attributable to non-controlling interest in consolidated subsidiaries
|
(22
|
)
|
|
(30
|
)
|
|
8
|
|
|
(86
|
)
|
|
(24
|
)
|
|
(62
|
)
|
||||||
Net income (loss) attributable to shareholders
|
$
|
683
|
|
|
$
|
(2,480
|
)
|
|
$
|
3,163
|
|
|
$
|
(3,079
|
)
|
|
$
|
(5,187
|
)
|
|
$
|
2,108
|
|
|
Three Months Ended June 30,
|
|
Change
|
|
Six Months Ended
June 30, |
|
Change
|
||||||||||||||||
(in thousands)
|
2019
|
|
2018
|
|
|
2019
|
|
2018
|
|
||||||||||||||
Net income (loss) attributable to shareholders
|
$
|
683
|
|
|
$
|
(2,480
|
)
|
|
$
|
3,163
|
|
|
$
|
(3,079
|
)
|
|
$
|
(5,187
|
)
|
|
$
|
2,108
|
|
Add: Provision for income taxes
|
—
|
|
|
1
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Add: Equity-based compensation expense
|
123
|
|
|
93
|
|
|
30
|
|
|
215
|
|
|
156
|
|
|
59
|
|
||||||
Add: Acquisition and transaction expenses
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Add: Losses on the modification or extinguishment of debt and capital lease obligations
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Add: Changes in fair value of non-hedge derivative instruments
|
(4,887
|
)
|
|
—
|
|
|
(4,887
|
)
|
|
(2,517
|
)
|
|
—
|
|
|
(2,517
|
)
|
||||||
Add: Asset impairment charges
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Add: Incentive allocations
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Add: Depreciation and amortization expense
|
1,560
|
|
|
832
|
|
|
728
|
|
|
3,553
|
|
|
1,641
|
|
|
1,912
|
|
||||||
Add: Interest expense
|
348
|
|
|
273
|
|
|
75
|
|
|
644
|
|
|
545
|
|
|
99
|
|
||||||
Add: Pro-rata share of Adjusted EBITDA from unconsolidated entities
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Less: Equity in earnings of unconsolidated entities
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Less: Non-controlling share of Adjusted EBITDA (1)
|
(68
|
)
|
|
—
|
|
|
(68
|
)
|
|
(131
|
)
|
|
—
|
|
|
(131
|
)
|
||||||
Adjusted EBITDA (non-GAAP)
|
$
|
(2,241
|
)
|
|
$
|
(1,281
|
)
|
|
$
|
(960
|
)
|
|
$
|
(1,315
|
)
|
|
$
|
(2,845
|
)
|
|
$
|
1,530
|
|
|
Three Months Ended June 30,
|
|
Change
|
|
Six Months Ended
June 30, |
|
Change
|
||||||||||||||||
(in thousands)
|
2019
|
|
2018
|
|
|
2019
|
|
2018
|
|
||||||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Equipment leasing revenues
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Lease income
|
$
|
3,157
|
|
|
$
|
1,868
|
|
|
$
|
1,289
|
|
|
$
|
5,090
|
|
|
$
|
4,117
|
|
|
$
|
973
|
|
Finance lease income
|
—
|
|
|
365
|
|
|
(365
|
)
|
|
—
|
|
|
732
|
|
|
(732
|
)
|
||||||
Other revenue
|
1,062
|
|
|
979
|
|
|
83
|
|
|
1,170
|
|
|
1,412
|
|
|
(242
|
)
|
||||||
Total revenues
|
4,219
|
|
|
3,212
|
|
|
1,007
|
|
|
6,260
|
|
|
6,261
|
|
|
(1
|
)
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Operating expenses
|
1,871
|
|
|
3,948
|
|
|
(2,077
|
)
|
|
4,302
|
|
|
6,316
|
|
|
(2,014
|
)
|
||||||
General and administrative
|
4,297
|
|
|
4,573
|
|
|
(276
|
)
|
|
9,029
|
|
|
8,159
|
|
|
870
|
|
||||||
Acquisition and transaction expenses
|
2,308
|
|
|
1,442
|
|
|
866
|
|
|
3,769
|
|
|
3,051
|
|
|
718
|
|
||||||
Management fees and incentive allocation to affiliate
|
5,710
|
|
|
4,495
|
|
|
1,215
|
|
|
9,548
|
|
|
8,234
|
|
|
1,314
|
|
||||||
Depreciation and amortization
|
1,606
|
|
|
1,626
|
|
|
(20
|
)
|
|
3,220
|
|
|
3,228
|
|
|
(8
|
)
|
||||||
Interest expense
|
20,521
|
|
|
8,158
|
|
|
12,363
|
|
|
37,035
|
|
|
15,884
|
|
|
21,151
|
|
||||||
Total expenses
|
36,313
|
|
|
24,242
|
|
|
12,071
|
|
|
66,903
|
|
|
44,872
|
|
|
22,031
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Other income
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Equity in (losses) earnings of unconsolidated entities
|
(19
|
)
|
|
110
|
|
|
(129
|
)
|
|
18
|
|
|
281
|
|
|
(263
|
)
|
||||||
Interest income
|
2
|
|
|
5
|
|
|
(3
|
)
|
|
8
|
|
|
8
|
|
|
—
|
|
||||||
Total other (expense) income
|
(17
|
)
|
|
115
|
|
|
(132
|
)
|
|
26
|
|
|
289
|
|
|
(263
|
)
|
||||||
Loss before income taxes
|
(32,111
|
)
|
|
(20,915
|
)
|
|
(11,196
|
)
|
|
(60,617
|
)
|
|
(38,322
|
)
|
|
(22,295
|
)
|
||||||
Provision for income taxes
|
3
|
|
|
—
|
|
|
3
|
|
|
4
|
|
|
2
|
|
|
2
|
|
||||||
Net loss
|
(32,114
|
)
|
|
(20,915
|
)
|
|
(11,199
|
)
|
|
(60,621
|
)
|
|
(38,324
|
)
|
|
(22,297
|
)
|
||||||
Less: Net loss attributable to non-controlling interest in consolidated subsidiaries
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Net loss attributable to shareholders
|
$
|
(32,114
|
)
|
|
$
|
(20,915
|
)
|
|
$
|
(11,199
|
)
|
|
$
|
(60,621
|
)
|
|
$
|
(38,324
|
)
|
|
$
|
(22,297
|
)
|
|
Three Months Ended June 30,
|
|
Change
|
|
Six Months Ended
June 30, |
|
Change
|
||||||||||||||||
(in thousands)
|
2019
|
|
2018
|
|
|
2019
|
|
2018
|
|
||||||||||||||
Net loss attributable to shareholders
|
$
|
(32,114
|
)
|
|
$
|
(20,915
|
)
|
|
$
|
(11,199
|
)
|
|
$
|
(60,621
|
)
|
|
$
|
(38,324
|
)
|
|
$
|
(22,297
|
)
|
Add: Provision for income taxes
|
3
|
|
|
—
|
|
|
3
|
|
|
4
|
|
|
2
|
|
|
2
|
|
||||||
Add: Equity-based compensation expense
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9
|
|
|
(9
|
)
|
||||||
Add: Acquisition and transaction expenses
|
2,308
|
|
|
1,442
|
|
|
866
|
|
|
3,769
|
|
|
3,051
|
|
|
718
|
|
||||||
Add: Losses on the modification or extinguishment of debt and capital lease obligations
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Add: Changes in fair value of non-hedge derivative instruments
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Add: Asset impairment charges
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Add: Incentive allocations
|
2,211
|
|
|
573
|
|
|
1,638
|
|
|
2,373
|
|
|
573
|
|
|
1,800
|
|
||||||
Add: Depreciation and amortization expense
|
1,606
|
|
|
1,626
|
|
|
(20
|
)
|
|
3,220
|
|
|
3,228
|
|
|
(8
|
)
|
||||||
Add: Interest expense
|
20,521
|
|
|
8,158
|
|
|
12,363
|
|
|
37,035
|
|
|
15,884
|
|
|
21,151
|
|
||||||
Add: Pro-rata share of Adjusted EBITDA from unconsolidated entities (1)
|
(19
|
)
|
|
169
|
|
|
(188
|
)
|
|
18
|
|
|
420
|
|
|
(402
|
)
|
||||||
Less: Equity in losses (earnings) of unconsolidated entities
|
19
|
|
|
(110
|
)
|
|
129
|
|
|
(18
|
)
|
|
(281
|
)
|
|
263
|
|
||||||
Less: Non-controlling share of Adjusted EBITDA (2)
|
(174
|
)
|
|
—
|
|
|
(174
|
)
|
|
(174
|
)
|
|
—
|
|
|
(174
|
)
|
||||||
Adjusted EBITDA (non-GAAP)
|
$
|
(5,639
|
)
|
|
$
|
(9,057
|
)
|
|
$
|
3,418
|
|
|
$
|
(14,394
|
)
|
|
$
|
(15,438
|
)
|
|
$
|
1,044
|
|
•
|
Cash used for the purpose of making investments was $401.4 million and $352.0 million during the six months ended June 30, 2019 and 2018, respectively.
|
•
|
Dividends to shareholders and holders of eligible participating securities were $56.8 million and $54.7 million during the six months ended June 30, 2019 and 2018, respectively.
|
•
|
Uses of liquidity associated with our operating expenses are captured on a net basis in our cash flows from operating activities. Uses of liquidity associated with our debt obligations are captured in our cash flows from financing activities.
|
•
|
Cash flows from operating activities, plus the principal collections on finance leases and maintenance reserve collections were $90.0 million and $82.0 million during the six months ended June 30, 2019 and 2018, respectively.
|
•
|
During the six months ended June 30, 2019, additional borrowings were obtained in connection with the 2025 Notes of $148.7 million, 2022 Notes of $147.8 million, Revolving Credit Facility of $105.0 million, LREG Credit Agreement of $71.5 million, Jefferson Revolver of $23.2 million, DRP Revolver of $21.6 million, and CMQR Credit Agreement of $11.7 million. We made total principal repayments of $128.8 million, primarily relating to the Revolving Credit Facility of $115.0 million and CMQR Credit Agreement of $10.7 million. During the six months ended June 30, 2018, additional borrowings were obtained in connection with the 2022 Notes of $100.0 million, Revolving Credit Facility of $50.0 million, Jefferson Revolver of $39.0 million, net of financing costs, and the CMQR Credit Agreement of $13.4 million. We made total principal repayments of $45.9 million, primarily relating to the Revolving Credit Facility, CMQR Credit Agreement and FTAI Pride Credit Agreement.
|
•
|
Proceeds from the sale of assets were $71.5 million and $26.5 million during the six months ended June 30, 2019 and 2018, respectively.
|
•
|
Proceeds from the issuance of common shares was $128.5 million, net of issuance costs of $2.1 million, during the six months ended June 30, 2018. There were no issuances of common shares in 2019.
|
|
Six Months Ended June 30,
|
||||||
(in thousands)
|
2019
|
|
2018
|
||||
Cash Flow Data:
|
|
|
|
||||
Net cash provided by operating activities
|
$
|
58,112
|
|
|
$
|
59,152
|
|
Net cash used in investing activities
|
(325,657
|
)
|
|
(325,091
|
)
|
||
Net cash provided by financing activities
|
321,084
|
|
|
246,978
|
|
|
Six Months Ended June 30,
|
||||||
(in thousands)
|
2019
|
|
2018
|
||||
Net Cash Provided by Operating Activities
|
$
|
58,112
|
|
|
$
|
59,152
|
|
Add: Principal Collections on Finance Leases
|
2,996
|
|
|
539
|
|
||
Add: Proceeds from Sale of Assets
|
71,504
|
|
|
26,530
|
|
||
Add: Return of Capital Distributions from Unconsolidated Entities
|
1,280
|
|
|
—
|
|
||
Less: Required Payments on Debt Obligations (1)
|
(3,125
|
)
|
|
(3,124
|
)
|
||
Less: Capital Distributions to Non-Controlling Interest
|
—
|
|
|
—
|
|
||
Exclude: Changes in Working Capital
|
26,310
|
|
|
(3,876
|
)
|
||
Funds Available for Distribution (FAD)
|
$
|
157,077
|
|
|
$
|
79,221
|
|
•
|
FAD does not include equity capital called from our existing limited partners, proceeds from any debt issuance or future equity offering, historical cash and cash equivalents and expected investments in our 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 we rely on alternative sources of liquidity to fund such purchases.
|
•
|
FAD does not reflect expenditures related to capital expenditures, acquisitions and other investments as we have 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 our distribution decisions.
|
•
|
Management has significant discretion to make distributions, and we are not bound by any contractual provision that requires us to use cash for distributions.
|
|
|
|
|
||||||||||||||||||||||||
(in thousands)
|
Remainder of 2019
|
|
2020
|
|
2021
|
|
2022
|
|
2023
|
|
Thereafter
|
|
Total
|
||||||||||||||
FTAI Pride Credit Agreement
|
$
|
44,618
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
44,618
|
|
CMQR Credit Agreement
|
—
|
|
|
—
|
|
|
—
|
|
|
23,300
|
|
|
—
|
|
|
—
|
|
|
23,300
|
|
|||||||
Revolving Credit Facility
|
—
|
|
|
—
|
|
|
—
|
|
|
90,000
|
|
|
—
|
|
|
—
|
|
|
90,000
|
|
|||||||
Jefferson Revolver
|
23,000
|
|
|
—
|
|
|
50,000
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
73,000
|
|
|||||||
DRP Revolver
|
—
|
|
|
—
|
|
|
21,600
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
21,600
|
|
|||||||
LREG Credit Agreement
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
71,500
|
|
|
71,500
|
|
|||||||
Series 2012 Bonds
|
1,670
|
|
|
1,810
|
|
|
1,960
|
|
|
2,120
|
|
|
2,295
|
|
|
31,365
|
|
|
41,220
|
|
|||||||
Series 2016 Bonds
|
—
|
|
|
144,200
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
144,200
|
|
|||||||
Senior Notes due 2022
|
—
|
|
|
—
|
|
|
—
|
|
|
700,000
|
|
|
—
|
|
|
—
|
|
|
700,000
|
|
|||||||
Senior Notes due 2025
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
450,000
|
|
|
450,000
|
|
|||||||
Total principal payments on loans and bonds payable
|
69,288
|
|
|
146,010
|
|
|
73,560
|
|
|
815,420
|
|
|
2,295
|
|
|
552,865
|
|
|
1,659,438
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Total estimated interest payments (1)
|
60,023
|
|
|
95,394
|
|
|
91,242
|
|
|
48,270
|
|
|
37,295
|
|
|
87,426
|
|
|
419,650
|
|
|||||||
Obligation to third-party
|
13,737
|
|
|
20,421
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
34,158
|
|
|||||||
Operating lease obligations
|
4,735
|
|
|
5,625
|
|
|
4,220
|
|
|
3,502
|
|
|
2,667
|
|
|
95,202
|
|
|
115,951
|
|
|||||||
Capital lease obligations
|
211
|
|
|
407
|
|
|
273
|
|
|
147
|
|
|
31
|
|
|
—
|
|
|
1,069
|
|
|||||||
|
78,706
|
|
|
121,847
|
|
|
95,735
|
|
|
51,919
|
|
|
39,993
|
|
|
182,628
|
|
|
570,828
|
|
|||||||
Total contractual obligations
|
$
|
147,994
|
|
|
$
|
267,857
|
|
|
$
|
169,295
|
|
|
$
|
867,339
|
|
|
$
|
42,288
|
|
|
$
|
735,493
|
|
|
$
|
2,230,266
|
|
•
|
general demand for the type of assets that we purchase;
|
•
|
general macroeconomic conditions, including market prices for commodities that our assets may serve;
|
•
|
geopolitical events, including war, prolonged armed conflict and acts of terrorism;
|
•
|
outbreaks of communicable diseases and natural disasters;
|
•
|
governmental regulation;
|
•
|
interest rates;
|
•
|
the availability of credit;
|
•
|
restructurings and bankruptcies of companies in the industries in which we operate, including our customers;
|
•
|
manufacturer production levels and technological innovation;
|
•
|
manufacturers merging or exiting the industry or ceasing to produce certain asset types;
|
•
|
retirement and obsolescence of the assets that we own;
|
•
|
our railroad infrastructure may be damaged, including by flooding and railroad derailments;
|
•
|
increases in supply levels of assets in the market due to the sale or merging of operating lessors; and
|
•
|
reintroduction of previously unused or dormant assets into the industries in which we operate.
|
•
|
competition from market participants;
|
•
|
general economic and/or industry trends, including pricing for the products or services offered by our operating businesses;
|
•
|
the issuance and/or continued availability of necessary permits, licenses, approvals and agreements from governmental agencies and third parties as are required to construct and operate such businesses;
|
•
|
changes or deficiencies in the design or construction of development projects;
|
•
|
unforeseen engineering, environmental or geological problems;
|
•
|
potential increases in construction and operating costs due to changes in the cost and availability of fuel, power, materials and supplies;
|
•
|
the availability and cost of skilled labor and equipment;
|
•
|
our ability to enter into additional satisfactory agreements with contractors and to maintain good relationships with these contractors in order to construct development projects within our expected cost parameters and time frame, and the ability of those contractors to perform their obligations under the contracts and to maintain their creditworthiness;
|
•
|
potential liability for injury or casualty losses which are not covered by insurance;
|
•
|
potential opposition from non-governmental organizations, environmental groups, local or other groups which may delay or prevent development activities;
|
•
|
local and economic conditions;
|
•
|
changes in legal requirements; and
|
•
|
force majeure events, including catastrophes and adverse weather conditions.
|
•
|
terrorist acts, armed hostilities, war and civil disturbances;
|
•
|
acts of piracy;
|
•
|
potential cybersecurity attacks;
|
•
|
significant governmental influence over many aspects of local economies;
|
•
|
seizure, nationalization or expropriation of property or equipment;
|
•
|
repudiation, nullification, modification or renegotiation of contracts;
|
•
|
limitations on insurance coverage, such as war risk coverage, in certain areas;
|
•
|
political unrest;
|
•
|
foreign and U.S. monetary policy and foreign currency fluctuations and devaluations;
|
•
|
the inability to repatriate income or capital;
|
•
|
complications associated with repairing and replacing equipment in remote locations;
|
•
|
import-export quotas, wage and price controls, imposition of trade barriers;
|
•
|
U.S. and foreign sanctions or trade embargoes;
|
•
|
restrictions on the transfer of funds into or out of countries in which we operate;
|
•
|
compliance with U.S. Treasury sanctions regulations restricting doing business with certain nations or specially designated nationals;
|
•
|
regulatory or financial requirements to comply with foreign bureaucratic actions;
|
•
|
compliance with applicable anti-corruption laws and regulations;
|
•
|
changing taxation policies, including confiscatory taxation;
|
•
|
other forms of government regulation and economic conditions that are beyond our control; and
|
•
|
governmental corruption.
|
•
|
merge, consolidate or transfer all, or substantially all, of our assets;
|
•
|
incur additional debt or issue preferred shares;
|
•
|
make certain investments or acquisitions;
|
•
|
create liens on our or our subsidiaries’ assets;
|
•
|
sell assets;
|
•
|
make distributions on or repurchase our shares;
|
•
|
enter into transactions with affiliates; and
|
•
|
create dividend restrictions and other payment restrictions that affect our subsidiaries.
|
•
|
meet the terms and maturities of our existing and future debt facilities;
|
•
|
purchase new assets or refinance existing assets;
|
•
|
fund our working capital needs and maintain adequate liquidity; and
|
•
|
finance other growth initiatives.
|
•
|
a shift in our investor base;
|
•
|
our quarterly or annual earnings, or those of other comparable companies;
|
•
|
actual or anticipated fluctuations in our operating results;
|
•
|
changes in accounting standards, policies, guidance, interpretations or principles;
|
•
|
announcements by us or our competitors of significant investments, acquisitions or dispositions;
|
•
|
the failure of securities analysts to cover our common shares;
|
•
|
changes in earnings estimates by securities analysts or our ability to meet those estimates;
|
•
|
the operating and share price performance of other comparable companies;
|
•
|
overall market fluctuations;
|
•
|
general economic conditions; and
|
•
|
developments in the markets and market sectors in which we participate.
|
|
Exhibit No.
|
|
Description
|
|
|
|
|
Certificate of Formation (incorporated by reference to Exhibit 3.1 of Amendment No. 4 to the Company's Registration Statement on Form S-1, filed on April 30, 2015).
|
|
|
|
|
Amended and Restated Limited Liability Company Agreement of Fortress Transportation and Infrastructure Investors LLC (incorporated by reference to Exhibit 3.2 of the Company's Current Report on Form 8-K, filed on May 21, 2015).
|
|
|
|
|
First Amendment to Amended and Restated Limited Liability Company Agreement of Fortress Transportation and Infrastructure Investors LLC (incorporated by reference to Exhibit 3.3 of the Company's Annual Report on Form 10-K, filed on March 10, 2016).
|
|
|
|
|
Indenture, dated March 15, 2017, between Fortress Transportation and Infrastructure Investors LLC and U.S. Bank National Association, as trustee, relating to the Company’s 6.75% senior unsecured notes due 2022 (incorporated by reference to Exhibit 4.1 of the Company’s Current Report on Form 8-K, filed on March 15, 2017).
|
|
|
|
|
Form of global note representing the Company’s 6.75% senior unsecured notes due 2022 (included in Exhibit 4.1).
|
|
|
|
|
First Supplemental Indenture, dated June 8, 2017, between Fortress Transportation and Infrastructure Investors LLC and U.S. Bank National Association, as trustee, relating to the Company’s 6.75% senior unsecured notes due 2022 (incorporated by reference to Exhibit 4.3 of the Company’s Annual Report on Form 10-K, filed on March 1, 2018).
|
|
|
|
|
Second Supplemental Indenture, dated August 23, 2017, between Fortress Transportation and Infrastructure Investors LLC and U.S. Bank National Association, as trustee, relating to the Company’s 6.75% senior unsecured notes due 2022 (incorporated by reference to Exhibit 4.1 of the Company’s Current Report on Form 8-K, filed on August 23, 2017).
|
|
|
|
|
Third Supplemental Indenture, dated December 20, 2017, between Fortress Transportation and Infrastructure LLC and U.S. Bank National Association, as trustee, relating to the Company’s 6.75% senior unsecured notes due 2022 (incorporated by reference to Exhibit 4.1 of the Company’s Current Report on Form 8-K filed on December 20, 2017).
|
|
|
|
|
Fourth Supplemental Indenture, dated May 31, 2018, between Fortress Transportation and Infrastructure Investors LLC and U.S. Bank National Association, as trustee, relating to the Company’s 6.75% senior unsecured notes due 2022 (incorporated by reference to Exhibit 4.1 of the Company’s Current Report on Form 8-K, filed May 31, 2018).
|
|
|
|
|
Fifth Supplemental Indenture, dated February 8, 2019, between Fortress Transportation and Infrastructure Investors LLC and U.S. Bank National Association, as trustee, relating to the Company’s 6.75% senior unsecured notes due 2022 (incorporated by reference to Exhibit 4.1 of the Company’s Current Report on Form 8-K, filed February 8, 2019).
|
|
|
|
|
Indenture, dated September 18, 2018, between Fortress Transportation and Infrastructure Investors LLC and U.S. Bank National Association, as trustee, relating to the Company’s 6.50% senior unsecured notes due 2025 (incorporated by reference to Exhibit 4.1 of the Company’s Current Report on Form 8-K, filed on September 18, 2018).
|
|
|
|
|
Form of global note representing the Company’s 6.50% senior unsecured notes due 2025 (included in Exhibit 4.8).
|
|
|
|
|
First Supplemental Indenture, dated May 21, 2019, between Fortress Transportation and Infrastructure Investors LLC and U.S. Bank National Association, as trustee, relating to the Company’s 6.50% senior unsecured notes due 2025 (incorporated by reference to Exhibit 4.1 of the Company’s Current Report on Form 8-K, filed on May 21, 2019).
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Fourth Amended and Restated Partnership Agreement of Fortress Worldwide Transportation and Infrastructure General Partnership (incorporated by reference to Exhibit 10.1 of the Company's Current Report on Form 8-K, filed on May 21, 2015).
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†
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Management and Advisory Agreement, dated as of May 20, 2015, between Fortress Transportation and Infrastructure Investors LLC and FIG LLC (incorporated by reference to Exhibit 10.2 of the Company's Current Report on Form 8-K, filed on May 21, 2015).
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†
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Registration Rights Agreement, dated as of May 20, 2015, among Fortress Transportation and Infrastructure Investors LLC, FIG LLC and Fortress Transportation and Infrastructure Master GP LLC (incorporated by reference to Exhibit 10.3 of the Company's Current Report on Form 8-K, filed on May 21, 2015).
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†
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Fortress Transportation and Infrastructure Investors LLC Nonqualified Stock Option and Incentive Award Plan (incorporated by reference to Exhibit 10.4 of the Company's Current Report on Form 8-K, filed on May 21, 2015).
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Form of director and officer indemnification agreement of Fortress Transportation and Infrastructure Investors LLC (incorporated by reference to Exhibit 10.5 of Amendment No. 4 to the Company's Registration Statement on Form S-1, filed April 30, 2015).
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Credit Agreement, dated as of August 27, 2014, among Morgan Stanley Senior Funding, Inc., as administrative agent, Jefferson Gulf Coast Energy Partners LLC and the other lenders party thereto (incorporated by reference to Exhibit 10.6 of Amendment No. 4 to the Company's Registration Statement on Form S-1, filed April 30, 2015).
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Trust Indenture and Security Agreement between the District and The Bank of New York Mellon Trust Company, National Association, dated as of February 1, 2016 (incorporated by reference to Exhibit 10.7 of the Company's Annual Report on Form 10-K, filed on March 10, 2016).
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Standby Bond Purchase Agreement among the Port of Beaumont Navigation District of Jefferson County, Texas, The Bank of New York Mellon Trust Company, National Association, Jefferson Railport Terminal II Holdings LLC and Jefferson Railport Terminal II LLC dated as of February 1, 2016 (incorporated by reference to Exhibit 10.8 of the Company's Annual Report on Form 10-K, filed on March 10, 2016).
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Capital Call Agreement, by and among Fortress Transportation and Infrastructure Investors LLC, FTAI Energy Holdings LLC, FTAI Partner Holdings LLC, FTAI Midstream GP Holdings LLC, FTAI Midstream GP LLC, FTAI Midstream Holdings LLC, FTAI Energy Partners LLC and Jefferson Railport Terminal II Holdings LLC, dated as of February 1, 2016 (incorporated by reference to Exhibit 10.9 of the Company's Annual Report on Form 10-K, filed on March 10, 2016).
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Fee and Support Agreement, among FTAI Energy Holdings LLC, FEP Terminal Holdings LLC, FTAI Energy Partners LLC and Jefferson Railport Terminal II LLC, dated as of March 7, 2016 (incorporated by reference to Exhibit 10.10 of the Company's Amended Annual Report on Form 10-K/A, filed on April 29, 2016).
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Lease and Development Agreement (Facilities Lease), dated as of February 1, 2016, by and between the Port of Beaumont Navigation District of Jefferson County, Texas and Jefferson Railport Terminal II LLC (incorporated by reference to Exhibit 10.11 of the Company's Annual Report on Form 10-K, filed on March 10, 2016).
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By:
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/s/ Joseph P. Adams, Jr.
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Date:
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August 2, 2019
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Joseph P. Adams, Jr.
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Chairman and Chief Executive Officer
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By:
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/s/ Scott Christopher
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Date:
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August 2, 2019
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Scott Christopher
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Chief Financial Officer
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By:
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/s/ Eun Nam
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Date:
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August 2, 2019
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Eun Nam
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Chief Accounting Officer
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1.
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I have reviewed this quarterly report on Form 10-Q of Fortress Transportation and Infrastructure Investors LLC (the “registrant”);
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2.
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Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
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3.
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Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
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4.
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The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
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(a)
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Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
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(b)
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Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
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(c)
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Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
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(d)
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Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
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5.
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The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
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(a)
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All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
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(b)
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Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
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August 2, 2019
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/s/ Joseph P. Adams, Jr.
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(Date)
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Joseph P. Adams, Jr.
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Chief Executive Officer
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1.
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I have reviewed this quarterly report on Form 10-Q of Fortress Transportation and Infrastructure Investors LLC (the “registrant”);
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2.
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Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
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3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
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(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
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(c)
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Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
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(d)
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Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
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5.
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The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
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(b)
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Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
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August 2, 2019
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/s/ Scott Christopher
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(Date)
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|
Scott Christopher
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Chief Financial Officer
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(2)
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The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
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/s/ Joseph P. Adams, Jr.
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Joseph P. Adams, Jr.
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Chief Executive Officer
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August 2, 2019
|
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(2)
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The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
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/s/ Scott Christopher
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Scott Christopher
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Chief Financial Officer
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August 2, 2019
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