Icahn Enterprises L.P.
Q4 2021 Earnings Presentation
February 25, 2022
1
Safe Harbor Statement
Forward-Looking Statements and Non-GAAP Financial Measures
The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for forward-looking statements we make in this presentation, including statements regarding our future performance and plans for our businesses and potential acquisitions. Forward-looking statements may be identified by words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates," "will" or words of similar meaning and include, but are not limited to, statements about the expected future business and financial performance of Icahn Enterprises L.P. and its subsidiaries. Actual events, results and outcomes may differ materially from our expectations due to a variety of known and unknown risks, uncertainties and other factors that are discussed in our filings with the Securities and Exchange Commission, including economic, competitive, legal and other factors, including the severity, magnitude and duration of the COVID-19 pandemic. Accordingly, there is no assurance that our expectations will be realized. We assume no obligation to update or revise any forward-looking statements should circumstances change, except as otherwise required by law. This presentation also includes certain non-GAAP financial measures. A reconciliation of such non-GAAP financial measures to the most directly comparable GAAP financial measures can be found in the back of this presentation.
2
Q4 2021 Highlights and Recent Developments
SEGMENT
RESULTS
BUSINESS
DEVELOPMENTS
L.P.
UNITHOLDERS
- Q4 2021 IEP net loss of $396 million, full year 2021 net loss of $518 million is a $1.1 billion improvement over full year 2020
- The full-year 2021 results were negatively impacted by losses of $1.3 billion on IEP's Investment segment short positions (used to hedge our long positions). Other losses included $435 million of RINs expense and $205 million of Automotive transformation losses and inventory write-downs
- Indicative Net Asset Value increased by $1.6 billion in 2021 to $5.1 billion despite the headwinds mentioned above. The change in indicative net asset value includes, among other things, changes in the fair value of certain subsidiaries which are not included in our GAAP earnings reported above. In 2021, we revised how we estimate the fair value of our Automotive segment's owned real estate and its Services business which better reflects the fair value of the assets, which also contributed to the positive change
- Investment segment flat performance for the full year with a negative return of 8.3% for Q4 of 2021 primarily driven by select short positions
- Energy segment full year Adjusted EBITDA and net income improvements offset by $435 million RINs expense
- Strong performance within Automotive Services in Revenue and EBITDA, significant progress in securing contracts for vacant real estate and continued progress in the Parts transformation
- In February 2022, we repaid all of our outstanding $500 million aggregate principal amount of
6.750% senior unsecured notes due 2024 at par
- On February 23, 2022, the Board declared a quarterly distribution in the amount of $2.00 per depositary unit
- During the year ended December 31, 2021, we declared four quarterly distributions aggregating $8.00 per depositary unit
3
Financial Performance
Net Income (Loss) Attributable to Icahn Enterprises
Three Months Ended | Year Ended | |||
December 31, | December 31, | |||
($Millions) | 2021 | 2020 | 2021 | 2020 |
Operating Segments: | ||||
Energy | ($15) | ($54) | ($5) | ($194) |
Automotive | (121) | (49) | (260) | (198) |
Food Packaging | (4) | 1 | (2) | 4 |
Real Estate | (3) | (12) | (8) | (16) |
Home Fashion | 1 | (5) | (8) | (7) |
Pharma | (4) | (1) | (3) | (1) |
Metals | 167 | 10 | 186 | - |
Operating Segments | 21 | (110) | (100) | (412) |
Investment | (391) | 225 | (16) | (765) |
Holding Company | (26) | 31 | (402) | (476) |
Consolidated | ($396) | $146 | ($518) | ($1,653) |
Adjusted EBITDA Attributable to Icahn Enterprises(1)
Three Months Ended | Year Ended | |||
December 31, | December 31, | |||
($Millions) | 2021 | 2020 | 2021 | 2020 |
Operating Segments: | ||||
Energy | $40 | ($7) | $231 | ($15) |
Automotive | (97) | (3) | (67) | (45) |
Food Packaging | 7 | 12 | 45 | 48 |
Real Estate | (3) | 8 | (1) | 28 |
Home Fashion | 2 | (2) | - | 3 |
Pharma | 3 | 1 | 11 | 1 |
Metals | 7 | 14 | 38 | 20 |
Operating Segments | (41) | 23 | 257 | 40 |
Investment | (369) | 248 | 83 | (673) |
Holding Company | (33) | 152 | (67) | (102) |
Consolidated | ($443) | $423 | $273 | ($735) |
(1) Refer to the Adjusted EBITDA reconciliations in the Appendix.
4
Segment: Investment
Segment Description
- IEP invests its proprietary capital through various private investment funds (the "Funds") managed by the Investment segment
- Fair value of IEP's investment in the Funds was approximately $4.2 billion as of December 31, 2021
Summary Segment Financial Results
Highlights and Recent Developments
- As of December 31, 2021, the Funds had a net short notional exposure of 31% (112% long and 143% short)
- FY 2021 results are -0.3%
Significant Holdings
As of December 31, 2021
Investment Segment | |
($Millions) | |
Selected Income Statement Data: | |
Total revenue | |
(3) | |
Adjusted EBITDA | |
Net income (loss) | |
Adjusted EBITDA attributable to IEP | (3) |
Net income (loss) attributable to IEP |
Three Months Ended | Year Ended | ||
December 31, | December 31, | ||
2021 | 2020 | 2021 | 2020 |
($799) | $544 | $202 | ($1,249) |
(804) | 541 | 186 | (1,251) |
(852) | 490 | (32) | (1,447) |
($369) | $248 | $83 | ($673) |
($391) | $225 | ($16) | ($765) |
Company | Mkt. Value ($mm)(1) | % Ownership(2) |
$1,6406.4%
$1,3054.8%
$959 | 9.7% |
$95510.3%
Returns | -8.3% | 5.6% | -0.3% | -14.3% |
$789 | 3.5% |
(1) | Based on closing share price as of specified date. | 5 |
(2) | Total economic ownership as a percentage of common shares issued and outstanding. | |
(3) | Refer to the Adjusted EBITDA reconciliations in the Appendix. |
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Disclaimer
Icahn Enterprises LP published this content on 25 February 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 25 February 2022 14:04:10 UTC.